CZ LOKO Completed Specialising Operating Procedures. Salaries to Increase

01.12.2016

Specialising operating procedures, which is to assist in increasing productivity and prosperity, is now being completed by the CZ LOKO Company.

This leading Czech locomotive producer has divided its 500 employee large factory in Ceska Trebova into Component Operation, which focuses on producing and repairing engines, wheel sets, compressors, and bogies: and Railway Production Operation, which focuses on independent traction vehicle repairs. The plant in Jihlava is now responsible for serial production of modernised and new vehicles. Prerov is now specialised in repairing dependent traction locomotives and producing new machines should the capacity in Jihlava be exceeded. Zamberk is now the location for cooling module, engine hood, sheet metal product, and reservoir engineering. Letohrad is where to go for maintenance and related services.

“Deeper specialisation was inevitable. The ratio of engagements are favouring new products, but repairs still remain as one of our main pillars. We need to shorten our production times and significantly streamline the flow of products within the Company. It was difficult at times as we had to demolish old stereotypes, but the initial results are pleasing. I trust that the changes will significantly nourish our operating profit and employee salaries,” states Josef Gulyas, CZ LOKO's General Director, who has been leading the company since April when many changes were put into motion. This is accompanied by project distribution, better work organisation and hence, reducing production time in order to decrease internal costs and increase production efficiency.

Therefore, this has enabled the Company to raise permanent employee salaries in 2017 by 7%. Our employees, being the ones doing the specialised work, are the ones to profit from this. “We are drawing closer to the automotive industry with this. If we are to be successful in the long run, we must attract employees as well. They have stable jobs because those are what we have ensured for five years in advance,” the Company's top executive adds.

CZ LOKO is to invest over 80 million by the end of 2017. It will finalise modernising the engine shop and expanding and modernising production and bogie repair premises. Modernising technology in all plants and improving the work place are also in process. The Company plans to invest 20 million CZK into health and safety at work.