Andrzej Polakowski, Poczta Polska (PP) general director, said in an interview for “PB” job cuts were needed in the company which would have a giant loss of PLN 500m (EUR 150.1m) and would ask for PLN 200m of subsidy. This was in April when the management was in clash with trade unions and there was a threat of a strike. However, a compromise was reached. The raise for each employee amounted to PLN 400 instead of PLN 700 as demanded. The situation is better than the general director had feared.
“July was a very good month, sales were higher than forecast and we manage to control costs. The gross loss this year may amount to PLN 250m. For the time being, we have net profit but later this year there will be big costs connected with the raises negotiated with trade unions and implemented since August. The losses will be substantial”, Andrzej Polakowski said.
PP will apply to get a state subsidy as a compensation for its services: delivering post to all, even the most remote places in Poland.
“We may apply for PLN 100m, i.e. half of what we had estimated earlier this year”, Andrzej Polakowski added.
The planned layoffs won’t be as big as he had said before, either. Five months ago, he said PP could afford to employ 85,000 people, while it has 105,000 employees today.
“We will prepare a plan till the end of this year. It mainly covers administration employees. We want to ask them to work in other departments, which may lead to group layoffs”, Andrzej Polakowski admitted.
He refused to give numbers.
Till January 2009, the agreement between PP and trade unions is valid which makes it impossible to lay off or change the employment structure within the group.
Meanwhile, PP must get ready for the liberalization of the market – in 2013, it won’t have the monopoly to deliver letters up to 50g. Today, this business generates 30 percent of its sales.
“We will invest PLN 1.2bn within four years”, the general director of the Polish post said.
(PLN 1 = EUR 0.300)