Polish freight rail operator PKP Cargo SA announced Monday it will proceed with mass layoffs affecting up to 765 employees through September 30, after labor unions failed to respond to proposals for reducing collective bargaining agreement benefits.
The carrier said unions did not respond by the July 31 deadline to proposed modifications to the Company Collective Labor Agreement, which was terminated in June 2025. Management decided to begin restructuring employment as outlined in its Restructuring Plan.
In late June, PKP Cargo’s management proposed workers surrender certain privileges from the collective agreement in exchange for a performance-based incentive system, aiming to avoid mass layoffs. The agreement remains valid until mid-2026.
The company believes eliminating or excluding the most expensive elements would achieve cost savings comparable to planned 2025 employment reduction effects.
The proposal involved abandoning benefits exceeding Poland’s Labor Code requirements, including higher sick pay compensation and longer notice periods for layoffs unrelated to employee performance.
PKP Cargo management decided in July 2024 to conduct mass layoffs across company facilities and headquarters, ultimately reducing employment by 3,665 workers.
The company currently employs approximately 10,000 people. PKP Cargo is a publicly traded joint-stock company listed on the Warsaw Stock Exchange.
PKP SA is the largest shareholder with a 33.01% stake, Nationale-Nederlanden PTE SA-managed funds hold 12.08%, and other shareholders control 54.91%. For 2024, the company recorded a net loss of PLN 2.41 billion (EUR 565 million), with EBITDA of nearly PLN 300 million (EUR 70 million).
(jh)
Source: PAP