PKP CARGO Secures New Agreement with Unions, Labor Costs to Rise by Nearly 200 Million Zlotys

The Board of Directors of PKP CARGO S.A. has reached an agreement with the trade unions (NSZZ Solidarność, Federation of Railway Workers' Unions, and Solidarność 80) to increase wages from January 1, 2024, by an average of PLN 430. According to the board, this will necessitate an increase in wage costs of PLN 170 million.

However, eight other trade unions refused to sign the agreement, demanding a wage increase from October 1, 2023, in the amount of PLN 400. They view the decision of the three organizations that agreed with the board as a tactical error. They believe that this agreement precludes any further wage negotiations during 2024.

In a letter sent to all PKP CARGO employees, which was obtained by the editorial staff of RAILTARGET, it is stated that the chosen date of January 1, 2024, was selected not only to prevent wage negotiations in 2024 but also to ensure that the wage increase in 2023 would not adversely affect PKP CARGO's financial results. Consequently, the management of the company will be eligible for higher rewards based on the economic results. The letter also claims that the management has not implemented any recovery processes, the company is in unprecedented debt, and continues to lose market position, thereby jeopardizing the future of the business and potentially leading to the loss of many thousands of jobs.

Nevertheless, PKP CARGO's management can point to positive economic results and the company's economic efficiency: for the first three quarters of 2023, the PKP CARGO Group reported a profit of PLN 102 million. However, challenges persist in the coal transportation market, leading to an 18% decrease in the total volume of transportation and a 16% reduction in the number of ton-kilometers compared to 2022. Chairman of the board Dariusz Seliga insists that, given the difficult market conditions and declining shipments, this is an excellent economic result. The company continues to invest and utilizes operational programs of EU funds managed by the Polish government and administered by CUPT (Centre for Union Transport Projects) for the modernization of the vehicle fleet and wagon superstructures.