The news in Croatian
Talijanska tvrtka Benetton zatvara tvornicu u Osijeku nakon 25 godina. To utječe na više od 260 radnika. Razlog su financijske poteškoće i visoki troškovi. Radnici će dobiti otpremnine . Tvornica prestaje s radom na Vukovarskoj ulici. Nema vijesti o preseljenju proizvodnje, ali Benetton ima tvornice u Srbiji.
Translation
The Italian company Benetton is closing its factory in Osijek after 25 years, affecting more than 260 workers. The reasons are financial difficulties and high costs. Workers will receive severance pay. The factory, located on Vukovarska Street, will cease operations. There is no news about relocating production, but Benetton has factories in Serbia.
Exercise: Text comprehension
Question 1: How long has the Benetton factory been operating in Osijek before closing?
The Benetton factory has been operating in Osijek for 25 years before closing.
Question 2: What support will the affected workers receive after the factory closure?
The affected workers will receive severance packages after the factory closure.
Exercise: Vocabulary
Read the full story
▌17/01/2025
After operating for 25 years in Osijek, a city in eastern Croatia, the Italian clothing company Benetton has decided to shut down its production facility. This decision will impact more than 260 workers, according to the Klas Labour Union, which represents employees in the company.
The closure decision was reportedly made in December. The company cited financial difficulties and rising operational costs, such as increased wages and inflation, as reasons for its unsustainable production in Osijek. Despite these challenges, Benetton has provided assurances that all workers will receive severance packages for their years of service, even surpassing the legal requirements for those with more than 18 years of service.
Benetton Closes Osijek Factory, 260 Jobs Lost (Illustration)
The factory's final months have focused on clearing back orders and dismantling equipment. As the site on Vukovarska Street ceases operations, the fate of these premises remains uncertain. Although there have been no official statements regarding Benetton moving operations to another country, the company does have a significant production presence in neighbouring Serbia.
Benetton began operations in Osijek in the year 2000, initially operating in what was then the Osijek Free Zone. Over the years, the company has undergone name changes, operating as Benetton Croatia and Olympicas Textile before adopting the Benetton Textile name. Recent economic data shows that by 2023, the workforce had decreased by approximately 29% compared to the previous year, with the company incurring a net loss, despite stable revenues.
The decision to close has prompted discussions about the future of industrial operations in the region, spotlighting the broader challenges facing the textile industry in Croatia. The local community now faces the difficult task of absorbing such a large workforce into an economy grappling with similar global economic pressures.
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