PKP Cargo on the Brink: Initiating Emergency Cost-Cutting Measures

PKP CARGO's board of directors informed trade unions on Friday that it would introduce austerity measures in the form of work stoppages for up to 30% of all employees from 1 June 2024. According to the law, PKP CARGO can exclude its employees from work for a maximum of one year.

It must last at least one month and not exceed 12 months. Employees can draw wage compensation equal to 60% of the average monthly wage, have the right to perform activities necessary to maintain the employee's professional rights, and benefit from the social fund.

PKP CARGO's acting chairman, Marcin Wojewódka, said that one of the reasons for this is a significant decline in rail freight traffic, a continuing negative trend compared to the previous year, and thus a drop in revenues. He also pointed out that this form of cost savings was used by the company from 2008 to 2015 when PKP CARGO was undergoing restructuring.