Mladá Boleslav - The largest Czech industrial manufacturer, Škoda Autowill stop the production at the end of 2008 and will not start it before 11 January 2009.

The company plans to lay off employees, according to leader of Škoda trade unionists Jaroslav Povšík, quoted by Mladá fronta daily. However, the company did not confirm the allegation it is going to lay off 870 employees, 3 percent of the total number.

In September, roughly 1,500 workers employed in Škoda through employment agencies were sacked. All workers employed directly by the company have so far kept their jobs.

Originally, Škoda planned that the production will start on 7 January 2008, thought the management decided last week the production launch will be postponed following a meeting with the trade unionists.

Demand decreasing

Škoda stated lack of commissions as a reason for stopping the production.

For Škoda employees, the last working day this year will be on 18 December. They will not  start working until 11 January next year.

There have been several production breaks this year in Škoda. Initially, it was estimated that 700,000 cars would be produced this year. But the output had to be limited due to the decreasing demand. Currently it is estimated that Škoda will have sold 690,000 cars by the end of this year, which will be a 9.5 percent increase compared to the previous year.