The Polish state-owned rail freight operator PKP Cargo has officially submitted its restructuring plan after finding itself on the verge of bankruptcy. One of the most controversial aspects of the plan concerns the workers, who might be left with two somewhat unpleasant options: be laid off or keep the position but lose various benefits.
“We have developed an alternative proposal to replace the layoffs planned for the next 12 months with a program to waive employee benefits resulting from the Collective Bargaining Agreement (CBA)”, PKP Cargo said. The company is in talks with the various trade unions representing its workforce to discuss this option. So far, the trade unions have not rejected the proposal, but a final decision will only be taken over the next three months, Agnieszka Wasilewska-Semail, President of the Management Board of PKP CARGO said.
Replace CBA with motivational system
“The Board has decided to submit a proposal to waive or exclude elements of the Collective Bargaining Agreement. To do this, it must receive the consent of all trade unions”, PKP Cargo underlined. However, the details of what the workers would have to give up in order to retain their jobs were not specified. However, the final goal would be to replace elements from the CBA “with a modern motivational system based on real work efficiency”.
Such a move, PKP Cargo claims, would guarantee cost savings comparable to the ones achievable through mass layoffs. Over 2,400 PKP Cargo employees are currently in this situation. The initial plan of the company was to lay off over 2,400 workers (1,041 by the end of July 2025 and 1,388 by 30 September 2026). However, this new idea could lead to an about-turn, if the trade unions give their blessings.
PKP Cargo’s restructuring plan
The Polish incumbent entered a restructuring stage in 2024 “after a decade of neglect”, as the new management put it. One of the final nails in the coffin was the infamous ‘coal decision’ taken in 2022. Back then, former Prime Minister Mateusz Morawiecki ordered PKP Cargo to prioritise the transport of coal, at the expense of more profitable contracts. This led to massive losses both in terms of volumes and financial performance and an increasing debt currently estimated at over 700 million euros (almost three billion PLN).
The restructuring plan submitted by the new management aims at, first and foremost, repaying this debt. The plan covers the period up to 2031, and PKP Cargo mentioned it plans to achieve net profitability already by next year. To do this, the company wants to increase its intermodal revenue to 19% and reduce the share of coal it transports to 13% by 2031. Other highlights include a higher focus on international services, digitalisation, and the sale of fixed assets such as real estate and rolling stock. Through these measures, PKP Cargo expects to reach an EBITDA of over 300,000 million euros (1,3 billion PLN) by 2031.