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HZ Cargo: the restructuring plan includes shedding 1,100 workers and an immediate 20% cut in salaries

2014-01-27-PRESS-txt2The management of the Croatian Railways’ (HZ) company HZ Cargo has 14 days to adopt a plan for its restructuring proposed by the Ministry of Maritime Affairs, Transport and Infrastructure otherwise bankruptcy proceedings will be launched against the company and it will be liquidated, Minister Sinisa Hajdas Doncic said at a news conference on Monday.

Doncic said he was sorry that talks on the privatisation of HZ Cargo with the Romanian company Grampet had fallen through, adding that this was a closed chapter for the ministry.

The restructuring plan proposed by the ministry includes shedding 1,100 workers by the end of the year. Some of those workers will be given severance pay or the sectors that do not fall under HZ Cargo’s main line of business would be divested. The plan also envisages an immediate 20% cut in salaries for the duration of the entire overhauling process as well as a reduction of the severance pay and other benefits.

These terms are non-negotiable, Doncic said, adding that the alternative was bankruptcy with liquidation.

The implementation of the restructuring plan is a precondition for the government to ensure Kuna 230 million needed for the restructuring. The money will be intended exclusively for the company’s restructuring and current obligations towards its suppliers, not for the workers’ salaries, Doncic said.

Asked why talks with Grampet did not succeed, Doncic said that during the negotiations the Romanian company offered terms that significantly differed from its initial offer.

Source* http://dalje.com; photo Ministry of Maritime Affairs, Transport and Infrastructure

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