Benetton Closes Osijek Factory, 260 Jobs Lost

The news in Croatian

1. zatvarati
   Zatvoriti ili privremeno prestati s radom mjesta, zgrade ili institucije. ↩︎
2. tvornica (f.)
   Mjesto, zgrada ili pogon gdje se proizvode stvari ili obavlja proizvodnja. ↩︎
3. utjecati
   Imati djelovanje ili učinak na nešto ili nekoga. ↩︎
4. poteškoća (f.)
   Nešto što otežava ili sprečava izvršenje zadatka. ↩︎
5. otpremnina (f.)
   Financijska naknada koju radnik prima kod prestanka radnog odnosa. ↩︎
6. preseljenje (n.)
   Premještanje s jednog mjesta ili lokacije na drugo. ↩︎

Translation

Text Comprehension

Question: How long has the Benetton factory been operating in Osijek before closing?

Question: What support will the affected workers receive after the factory closure?

Vocabulary

Croatian	English
zatvarati	close
tvornica (f.)	factory
utjecati	affect
poteškoća (f.)	difficulty
otpremnina (f.)	severance pay
preseljenje (n.)	relocation

Read the full story

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.

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.

Info: ‘Croatian Learner News’ is a service from ‘Let’s Learn Croatian’, a language school dedicated to teaching Croatian. Our aim is to make it easy and accessible for students to learn Croatian in Croatia through various types of online courses.