Details of LNM-PHS deal begin to filter through

On Tuesday the Cabinet is to accept the Polish Steel Mills (PHS) privatization agreement with LNM. However, this might be postponed due to the fact that on the same day the Sejm Treasury Commission is to analyze it. "The value of the social package is estimated at $316 million," Puls Biznesu leant from sources close to the investor. However, the trade unions claim that according to their estimates, it really amounts to $100-150 million. They stress that estimates may vary depending on whether one includes into them the restructuring costs tied to steel sector social package. The latter would be partially covered by the state. The unions main demands include a 10-year employment guarantee, paying out privatization premium and pay increases. However, according to agreements with the EU, the number of PHS employees is to drop from 16,000 to 10,400 by 2006. "Negotiations will be tough and will verify the credibility of LNM," said Władysław Molęcki from the trade unions. (Puls Biznesu, pp. 1, 8) M.M.