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Russia’s Auto Industry Faces Labor Shortages as 4-Day Work Week Forces Employees Out – Reports

Elena Afonina / TASS

The GAZ group, one of Russia’s leading auto makers, is facing mounting labor shortages as a reduced work week drives down wages and push skilled workers to quit, the Mash Telegram channel reported.

Mechanics, electricians, welders, plumbers and gas workers are in short supply at the GAZ Group plant in Nizhny Novgorod, Mash reported.

Employee incomes have fallen by about 20% since GAZ introduced a four-day work week in July, triggering an outflow of staff and leaving equipment without maintenance.

Harsh working conditions and aging facilities are exacerbating the problem, Mash reported.

GAZ’s press service did not respond to a request for comment from Mash.

Before Western sanctions, GAZ was controlled by tycoon Oleg Deripaska through his Basic Element holding. It has not disclosed its current ownership.

Management is now urging workers to “be patient” and trying to dissuade specialists from leaving, Mash reported. Those who remain are tasked with heavier workloads because training replacements for highly qualified employees takes at least a year.

The shift to a shorter work week followed a steep drop in sales and the lack of affordable credit for buyers.

In the first half of 2025, sales of medium-duty trucks fell nearly 40%, light commercial vehicles about 30% and buses around 60%, according to company estimates.

Similar measures have hit AvtoVAZ, Russia’s largest carmaker, where employees also agreed to four-day weeks this summer.

That eliminated overtime and bonuses, cutting take-home pay by nearly half. Many workers have since turned to taxi driving, delivery jobs or defense plants, according to reports. Despite management’s promises and bureaucratic hurdles, resignations are rising.

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