PKP Cargo: No agreement on the CBA. Redundancies begin.

PKP Cargo blue locomotive hauling long freight train with cargo wagons on curved railway track through green fields and forest
© PKP Cargo
PKP CARGO S.A., which is undergoing restructuring, has announced that, due to failing to reach an agreement with the trade unions on shortening the term of the company's collective bargaining agreement (CBA), it will begin a process of group layoffs. This is expected to affect up to 765 employees in 2025.

There was no acceptance of the alternative

The deadline for reaching an agreement with the social partners on the terms of shortening the validity of the CBA was 31 July 2025. This was intended as an alternative to job cuts. The trade unions did not accept the management board's proposal to waive costly benefits that exceed the Labour Code, such as:

  • higher sick pay of up to 100%
  • extended notice periods (up to six months)
  • contributions to the Company Social Benefits Fund for pensioners
  • allowance for work performed on Sundays and public holidays during normal working hours

The management board points out that waiving these elements would have a similar financial impact to the planned redundancies and enable the new remuneration system to be implemented earlier.

"The reason for the redundancies at PKP CARGO S.A. in restructuring is the company's very poor financial condition, which poses a threat to its continued operation. The lack of demand for work, due to a significant decline in transport within the company, directly affects the need to reduce employment and implement optimisation measures in all areas of its operations," emphasised Agnieszka Wasilewska-Semail, President of the Management Board of PKP CARGO S.A. in restructuring.

The new organisational structure

Since 1 August, the company has been operating under a new organisational structure, with the head office and all seven plants merging to form a single employer (as RAILMARKET NEWS reported). This is intended to improve operational efficiency, increase effectiveness, and generate savings.

However, the organisational change requires a new 20-day consultation with the trade unions. The number of planned redundancies, the criteria for their implementation and the scope of exemptions remain unchanged from the previous arrangements.

Timetable and support for employees

The process of terminating employment contracts is expected to be completed by the end of September. At the same time, support measures for employees will be implemented, including assistance in finding employment with other railway companies.

"Despite the need to carry out this difficult process, we hope that the situation on the rail freight market will improve thanks to large-scale infrastructure investments, which will provide the necessary transport work for PKP CARGO S.A.'s restructuring staff," added Agnieszka Wasilewska-Semail.

The article was originally published on sektorkolejowy.pl


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