PKP Cargo Workers Stage Nationwide Protest Amidst Cost-Cutting Proposals
Warsaw, Poland – august 2, 2024 – PKP Cargo, Poland’s largest rail freight operator, faced a nationwide protest from July 28th to August 1st as employees rejected management’s proposal to relinquish benefits enshrined in their collective labor agreement. The company, struggling with significant financial losses, presented the changes as a means to avoid widespread layoffs.Negotiations stalled, triggering the industrial action and highlighting deep-seated concerns about the future of rail freight in Poland.The Situation: A Company Under Pressure
PKP Cargo’s current predicament stems from a prolonged period of financial difficulty. In 2024 alone, the company reported a net loss of PLN 2.14 billion (approximately $515 million USD as of August 2, 2024) despite revenues of PLN 300 million. This downturn follows a significant decline in the company’s market value, with shares now trading at roughly 90% less than their value in December 2015, as noted by financial analyst Marcin Karnowski.
The proposed changes to the collective labor agreement were framed by PKP Cargo management as a necessary step to achieve savings comparable to those resulting from a large-scale reduction in workforce. Specifically, the company sought to eliminate benefits exceeding the minimum standards outlined in the Polish Labor Code. these included enhanced sick pay, exceeding standard statutory requirements, and extended notice periods for termination of employment contracts unrelated to employee performance.
Union Response & Concerns
Trade unions firmly rejected the proposal, arguing it would effectively halve employee compensation.Bogdan Jańczak, chairman of the Poznań Branch of the Inter-Enterprise trade Union of the Sternists, stated that accepting the terms would meen working for significantly reduced pay.He also emphasized the difficulty of implementing such changes for long-serving employees – some with 20, 30, or even 40 years of experience – who are accustomed to existing conditions.
The unions characterized the situation as an inevitable result of long-term governmental neglect of the rail freight sector. A communiqué released during the protest action stated the current crisis at PKP Cargo represents a “deepening degradation of the entire sector of rail freight transport” in Poland.
Recent Restructuring & Ownership
The current workforce of PKP Cargo stands at approximately 10,000 employees, following a previous round of layoffs in 2024 that impacted 3,665 positions at plants and the company headquarters.
PKP Cargo is a publicly traded company listed on the Warsaw Stock Exchange (GPW). Its major shareholders include:
PKP SA: Holding a 33.01% stake. PKP SA is the state-owned railway company of Poland.
Nationale-Nederlanden PTE SA Funds: Controlling 12.08% of the shares.
* Other Shareholders: Collectively owning 54.91% of the company’s stock.
Looking Ahead
the outcome of the stalled negotiations remains uncertain. The protest action concluded without a formal agreement, leaving the future of PKP Cargo and its employees in a precarious position. The situation underscores the challenges facing the Polish rail freight industry and the need for enduring solutions to ensure its long-term viability. Further developments are expected as the company continues to seek ways to address its financial difficulties and avoid further job losses.
sources: PAP, next.gazeta.pl (linked articles within original text).
