CZ/SK verze

Tensions Simmer at PKP Cargo, Shareholders Seek Clarity

Tensions Simmer at PKP Cargo, Shareholders Seek Clarity
photo: PKP Cargo / Public domain/PKP Cargo
04 / 04 / 2024

The situation in the joint-stock company PKP Cargo remains tense. What should have been standard quarterly reporting has turned into a wave of speculation and concern about the future of the company. Shareholders are nervous and seek answers.

PKP Cargo, a prominent player on the Warsaw Stock Exchange, continues to be in a tense atmosphere. It is postponing the publication of its results. There is a mystery surrounding the agreement with the trade unions, which raises a wave of questions from shareholders. What should have been a standard quarterly reporting situation has turned into a wave of speculation and concern about the company's future. The conflicting atmosphere is further fuelled by confusion over the general strike and personnel decisions. This atmosphere affects not only shareholders but also the wider public, who are asking for explanations.

PKP Cargo is a joint-stock company listed on the Warsaw Stock Exchange with a 33% state participation through PKP SA, and two large pension funds, Allianz (9.8%) and Nationale Nederlanden (6.9%), and small shareholders (51%). The company is obliged to report quarterly results to shareholders.

However, the deadline of 27 March 2024 was not met, contrary to assumptions and practice, and the company formally asked shareholders for a four-week postponement at the request of the auditors. PKP Cargo should thus present its preliminary Q1 results on 23 April, along with a consolidated management report for 2023. The company has provided shareholders with answers to questions for the time being, which were intended to calm the market situation.

We are publishing them in full:


At the meeting on 8 March 2024, was there an agreement with the unions and employees? Was an agreement reached and, if so, on what terms?

A meeting of the parties to the collective agreement to increase wages was held on 1 December 2023. Two documents were signed during the meeting:

  1. An agreement with the three trade unions according to which a wage increase of PLN 430 on average per employee remunerated according to the Collective Agreement, or for employees remunerated according to the index, will be implemented as of 1 January 2024.

  2. The protocol of disagreements, in which the eight trade unions participating in the negotiations maintained their demand for a wage increase of PLN 400 on average per employee from 1 October 2023 for employees remunerated according to the Collective Agreement or for employees remunerated according to the index.

As the trade union's demand for the implementation of the wage increase from 1 October 2023 was not granted, a procedure called collective dispute was initiated on 1 December 2023. Following a meeting held on 10 January 2024, no agreement was reached between the parties to the collective dispute, and, therefore, a Protocol on Disagreements was drawn up by the provisions of the Act on Settlement of Collective Disputes. With the signing of the Protocol, the negotiation phase was concluded and the collective dispute moved to the mediation phase following the provisions of the Collective Dispute Resolution Act. The mediator was appointed by the Minister of Family, Labour, and Social Policy. Four mediation meetings were held: on 31 January 2024, 6 February 2024, 28 February 2024, and 25 March 2024. The last meeting ended with the signing of a protocol of disagreement.

Is there still a threat of a general strike?

The company is in intensive dialogue with its social partners. We hope that together we will be able to come up with solutions that will significantly improve the operational efficiency of our organization, which will translate into reduced costs while maintaining customer satisfaction.

When will the uncertain situation with the PKP Cargo authorities be clarified?

The company has no knowledge in this respect. Competence in the area of changes in the composition of the PKP CARGO SA Management Board belongs to the company's Supervisory Board.

Will Mr. Dariusz Seliga, who was suspended by the Supervisory Board, be reappointed to his position? Or can we expect the current acting CEO, Maciej Jankiewicz, to take over this position? When will the personnel decisions governing this issue be taken?

Decisions on changes in the composition of the PKP Cargo Management Board remain within the competence of the company's Supervisory Board.

Until now, the standard has been the publication of preliminary quarterly results. Will PKP Cargo return to this best practice?

Disclosure of the company's estimated periodic results is made based on the assumptions arising from Article 17 of MAR. After each analysis of the estimated periodic results based on the definition of 'inside information', the PKP Cargo Board of Directors decides to publish the estimated results.

Mr. Maciej Jankiewicz's declaration of additional costs of PLN 20.9 million was attached to the quarterly report of 29.11.2023. Was the above amount correctly accounted for?

In the Company's opinion, the amount of the interest in question was correctly recognized in the accounts.

Do the PKP Cargo authorities have a strategy (plan) to restore the company's reputation? Please be specific.

The Company has prepared a basic strategy for the PKP Cargo Group. This document has been analyzed by staff in the various teams responsible for specific markets. The strategy will be presented once the appointment of the Board of Directors has been finalized and, once verified, they will collectively take responsibility for its implementation. Despite the difficult situation in the sector, the company is carrying out design work on concepts that will lead to significant improvements in process efficiency in the medium term.

What measures is the company planning to implement to regain lost market shares in the freight transport market?

The company operates in a promising and competitive market. In recent months, as the economic situation has worsened and the industry has become more buoyant, the company has been adapting its offering to the needs of its customers. PKP Cargo's Management Board is currently focusing on developing the sales offer to customers, improving the quality of services, activation, and activities aimed at increasing the order portfolio and optimizing costs.

What is the current financial situation of the company? Does the company have the financial resources or support mechanisms in place to compensate for the decline in freight volumes and safeguard the company's interests in this more difficult period? Is the company considering issuing equity or external borrowing in the next six months? How likely is this?

The company has aligned its rail vehicle needs and capabilities with the actual needs of the market. The company's operations are being financed using its existing resources and available external funding sources. PKP Cargo Capital Group is taking measures to ensure the availability of instruments to support the financing of operational and investment activities in the medium term.