Polish incumbent PKP Cargo will lay off 765 employees by the end of September. The decision was made after trade unions did not provide a response to the company’s proposal of reducing benefits included in the collective bargaining agreement (CBA). With this latest initiative, the company now has over 4,400 fewer employees than it did in October 2024.
The massive layoff operation carried out by PKP Cargo is part of its restructuring plan, which RailFreight.com has extensively followed. The company is in dire need of cutting costs and finding profitable contracts after years of mismanagement. One of the cost-cutting measures concerns reducing the workforce. After 2,515 people were fired and 1,150 more left the company by October 2024, 765 more will now be added to the layoffs list.
Failed negotiations
PKP Cargo attempted to avoid this scenario by suggesting the weakening of the CBA. Trade unions were thus presented with a choice: either drop some benefits or 765 people will lose their job. These included higher remuneration for incapacity to work during illness, longer notice periods, contributions to the Company Social Benefits Fund for retirees and a special hourly rate for working on Sundays and public holidays.
The plan was presented at the beginning of July and trade unions had until the end of that month to provide an answer. However, PKP Cargo said that no response was received as of yesterday, 11 August 2025, implying a rejection. “Due to the lack of acceptance for this alternative solution, (…) we are forced to begin employment restructuring”, said Agnieszka Wasilewska-Semail, president of the company’s management board.