The war in Ukraine, apart from its tragic consequences, also has a flip side. As with any armed conflict, the arms industry is also experiencing its five minutes now. However, companies face an unusual problem.
Such movement in the factories of defense companies has not been seen for several decades. Central Europe started production on a scale recently observed during the Cold War. The upheaval caused by the war in Ukraine has some interesting economic aspects.
Europe is arming itself. Companies are looking for employees
The war in Ukraine, caused by Russia’s criminal attack, has a serious impact not only on our eastern neighbor, but also on the economies of frontline countries. This is mainly due to economic sanctions, broken supply chains and problems with transport. Like almost every war in history, this one also has a very positive impact on one of the industries.
European countries reacted very quickly to the situation in Ukraine. Kyiv received huge financial and armament support. However, the transfer of military equipment meant that the army of the countries of NATO’s eastern flank shrank significantly. The industry had to start working with a power not seen in years. This showed many weaknesses.
Free lunches and housing for employees
Arms companies in the Czech Republic and Poland, due to huge government orders, had to increase employment very quickly. As it turns out, it’s not that easy. Paradoxically, the problem in this matter is the very low level of unemployment. There is simply a lack of employees on the market, which means that companies have to try very hard to get hands to work.
As Reuters writes, very interesting offers for new employees have become popular in both countries. Among the Polish companies, the company introduced recruitment incentives, e.g. Fabryka Broni Łucznik, i.e. the producer of e.g. multifunctional Grot carbine, which is equipped with the Polish Army.
PGZ is planning a special campaign aimed, among others, at to workers in the shipbuilding industry in the Nordic countries. It is to encourage them to come back and work in companies belonging to the group.
Bring workers from abroad
According to data from the Stockholm International Peace Research Institute, the production of the defense industry in Poland between 1980 and 2000 fell by 76 percent. Now the situation has suddenly reversed. Companies from the Polish Armaments Group received orders not only for new cannon-howitzers or tank repairs. Increased production concerns mainly ammunition, which is sent to the front, but also fills warehouses in Poland.
Both Polish and Czech companies from the defense industry began to prepare special incentives due to recruitment difficulties. New employees, as well as those who have already retired, are tempted by easy access to housing, free lunches, or other programs that are supposed to make their time at work more pleasant and relieve their budget.