Unions at Zachem to organise ballot for industrial action

01 June 2010 15:36  [Source: ICIS news]

PRAGUE (ICIS news)--Workers at Zachem, Poland’s sole toluene di-isocyanate (TDI) producer, are organising a ballot for industrial action after discovering the company is planning to reduce its workforce by as many as 350 employees over the next three years, the Solidarity union said on Tuesday.

The plan would see 130 of Zachem’s 1,100 employees cut this year and around 100 dismissed in each of the two following years, according to the union.

Zachem’s owner, Ciech, which is Poland’s largest chemical group, said it was not ready to comment on its latest restructuring plans for the subsidiary.

In March, Zachem said the restructuring would only result in 200 workers being laid off.

Solidarity said the ballot could go ahead within two weeks.

Ciech is under pressure to increase profits and raise capital so that it can meet commitments made to a group of banks to substantially pay down its major debt by the spring of 2011.

Last week, Ciech announced it had drawn up a plan to dispose of two of its four divisions and concentrate on the other two divisions, soda ash and organic chemicals, the latter of which includes products made by Zachem.

Poland’s treasury ministry said the possibility of restarting the postponed privatisation of Ciech will depend on the progress it makes in becoming more efficient.

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By: Will Conroy
+44 20 8652 3214

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