The United Trade Unions of Serbia “Sloga” announced that they received a letter from the “Leoni” factory, confirming that the company will gradually reduce production in the coming months and completely stop production at its factory in Malošište by the end of 2025. They emphasized that layoffs must not proceed without a social program.
The letter cites the lack of a long-term, strategically and financially sustainable perspective for continued operations, the factory’s multi-year losses, and the crisis affecting the entire European automotive industry, according to the “Sloga” press release.
“Sloga” stated that this news was not surprising, recalling that their president, Željko Veselinović, had previously warned several times in the Serbian Parliament about the difficult situation in Europe’s automotive industry, especially in Germany, and predicted that this would impact “Leoni’s” business in Serbia, leading to the closure of the Malošište factory. The unions previously negotiated severance pay with “Leoni’s” management, resulting in an employer offer of 46,000 dinars per year of service—significantly higher than the national average of 31,000 dinars.
It was noted that “Sloga” president Željko Veselinović will urgently request a meeting with the general manager of “Leoni” in Serbia to clarify all circumstances and plans related to the announced shutdown in Malošište. Given the seriousness of the situation, there is a need to address the workforce reduction through a social program, especially focusing on workers from vulnerable social groups.
“Sloga” reminded that, according to Serbian law, in cases of significant changes to employee status, the employer is obligated to submit a program for managing redundancies to the trade union.
“Leoni,” which produces cable bundles and optical fibers for the automotive industry, employs around 12,500 workers and is the largest employer in Serbia’s industrial sector.
The trade union also reminded that the Chinese electrical components manufacturer “Luxshare” acquired the German automotive parts manufacturer “Leoni,” becoming the majority shareholder with a 50.1% stake after the transaction.
