PKP Cargo announces cost-cutting plans to ensure financial stability

PKP Cargo announces cost-cutting plans to ensure financial stability

The measures include placing up to 30% of employees on "work inactivity" for a period of one to twelve months.

In connection with the identified occurrence of periodic financial difficulties and the temporary limitation of tasks related to the provision of transport services, and to meet the expectations of the trade unions that PKP S.A. and PKP CARGO S.A. should take immediate steps to ensure the financial stability and further development of the Company

The Management Board of PKP CARGO S.A., under the Internal Regulations on Social Dialogue, has informed the trade unions operating in the Company in writing of its intention to implement cost-cutting measures as of 1 June 2024. Similar measures in redirecting employees to so-called non-work experience were applied in PKP CARGO S.A. several times in 2008-2015.

"We assume that up to 30% of the Company's employees may be transferred to the so-called "work inactivity", while the period of work inactivity may not be shorter than one month and longer than twelve months by the valid regulations. Today, analyses in this respect have been launched at the level of individual organizational units of the Company", said Marcin Wojewódka, Acting President of the Management Board of PKP CARGO S.A.

Marcin Wojewódka pointed out that one of the reasons for implementing the above measures is the significant decrease in rail transport and the continuing negative trend in this respect compared with the previous year, and thus a decrease in revenues, which unfortunately means the occurrence of periodic financial difficulties.

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