Poland’s ZChP agrees to fewer job cuts, has access to loans

27 October 2009 12:51  [Source: ICIS news]

PRAGUE (ICIS news)--Poland's Zaklady Chemiczne Police (ZChP) and union leaders have agreed a rescue plan that involves fewer job losses than previously announced, the company said on Tuesday.

However, while the compromise meant that 255 people — or 8% of the workforce —would be laid off rather than 460, it also locked in lower future salary growth and greatly reduced bonuses, ZChP added.

ZChP, Poland's second-largest fertilizer producer, said the deal would enable it to obtain crisis loans of zloty (Zl) 190m ($68m, €45m) from Polish bank PKO BP.

Both PKO BP and the state’s Industrial Development Agency, which is required to guarantee the credit, had said they could not support the awarding of the loans unless the company substantially cut its workforce expenditure.

However, the unions threatened to call a strike if that cut involved what it thought was an unacceptable number of job losses.

Poland's treasury ministry is working on a plan to speed up the privatisation of ZChP by offering its shares in a tender rather than negotiating for a strategic investor.

The company is also a producer of titanium dioxide (TiO2).

($1 =Zl2.80, €1 = Zl4.19)

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By: Will Conroy
+44 20 8652 3214

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