The company informed the service about the layoffs on August 26. This Eltai indicated that most of the laid-off workers are seamstresses (19), as well as 4 thermofinishing workers.
The reason for dismissal is Article 57 of the Labor Code, the contract is terminated at the initiative of the employer without the fault of the employee.
The Ukmergė company, which announced its intention to lay off 24 employees in October of last year, said that this was due to declining orders. In last year’s financial report, “Vilkma” indicated that the war in Ukraine started by Russia in 2022 is making the operations difficult, and sales are decreasing due to difficult market conditions.
“Vilkma” has not made a profit for the past couple of years – last year the loss amounted to 151 thousand, in 2022 – 35 thousand euros. in 2023 sales revenue was decreasing and amounted to almost 5.3 million euros, when in 2022 – almost 6.9 million euros.
Vilkma lays off workers in the second quarter of the year as the country’s textile sector continues to show no signs of recovery.
Due to the decrease in order volumes, in August alone, the Vilnius clothing manufacturer “Lelija” and the hosiery “Sparta Textile”, which is closing its branch in the capital, announced the dismissal of some employees. Baltic Sewing Company in Kaunas and Oyster & Co based in Vilnius also informed about layoffs in the first month of summer. In May, “Salvika” sewing factory in Radvilišky and “Detexa” in Ukmergė announced that they were laying off all their employees due to bankruptcy.
The Minister of Economy and Innovation Aušrinė Armonaitė links the difficulties in the sector to the lack of workers and the fastest growing wages in Lithuania among developed countries.
2024-09-01 19:50:47