Today is as in many countries the start of a new season and of a new class for children.
Kids have been bringing flowers to their teacher, they've been pampered to look as nice as possible.
Ah ... Lithuania and kids back to school. It's quite something as it's finally kind of holidays for parents who had to care care of them for about 3 months (kidsuntil 4th grade included in Lithuanian schools finish school by end of May ).
Today is also the day when Coca Cola announced moving out its production from Lithuania in order to set up or intensify its operations in Poland. (source : http://www.delfi.lt/verslas/verslas/coca-cola-uzdaro-gamykla-alytuje.d?id=72185048)
Was the cost too high? I honestly don't think so.
indeed, what is a cost ?
Prime Cost + profits.
Prime cost includes all salaries, depreciations, administrative stuff and so on...
Is Poland more affordable than Lithuania? definitely not. Lithuania is offering a really competitive price regarding the labour cost. Its tax system is extremely easy and will be described in another post.
credit photo : www.foto.elta.lt
Coca Cola was established in Alytus, a town located 1h20 minutes from Vilnius, which is still famous for the production of "Alita", an alcohol brand having its head office and production in this town.
Alytus is facing massive relocation of its population which dropped to 54000 people officially (but not taking into consideration people who left without giving a notice of their decision).
In Coca Cola are working about 215 people according to Sodra and soon, 80 people will be removed.
A "plan social" will be set up to make sure that the workers will not be too much in a mess.
Alyta already reduced its workers and now Coca Cola is moving out.
However, I'd like to highlight that the cost of labour in Alytus is really cheap, where workers are paid a bit more than the minimum wage (380 euro since July 1st, 2016 while it's 430 euro in Poland (1850 zloty)).
