Poland's ZChP signs deal with unions ahead of new privatisation bid

31 May 2011 12:39  [Source: ICIS news]

LONDON (ICIS)--Zaklady Chemiczne Police (ZChP) has signed a new collective bargaining agreement with the unions after one year of negotiations, Poland's second largest fertilizer producer said on Tuesday.

The deal introduces redundancy rules that should allow the company to make steady progress with its workforce shrinkage plan and other survival measures in advance of a new attempt at privatisation, which could come as early as September, it added.

The company aimed to cut its workforce by around one fifth to approximately 2,300 employees by 2014, largely through a voluntary redundancy plan.

Other agreed points of the new collective agreement, which replaced the previous arrangement scrapped by ZChP's management in May 2010, introduced more logical and fairer remuneration and bonus schemes, the firm added.

In the past two quarters, ZChP has swung back to profitability following eight previous quarters of losses that led it to turn to Poland's Industrial Development Agency (ARP) for a crisis loan.

January saw the treasury ministry cancel privatisation tenders for both ZChP and Poland's largest fertilizer producer Zaklady Azotowe Pulawy (ZAP) after no satisfactory offers were received.

ZChP produces multi-component fertilizers and titanium dioxide (TiO2).

By: Will Conroy
+44 20 8652 3214

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