Employees social package demands begin to hinder business operations

The LNM Group would have to spend over zł. 1 billion on the social package for Polish Steel Mills (PHS) employees if it agreed to meet the demands of the trade unions. The investor put it straight: such high demands do not make any business sense. It is a classic example when trade unionist are fighting for their members privileges, regardless of the impact it has on the future of the enterprise and whether the shareholders can afford such generous hand outs. According to a survey carried out by the Polish Information and Foreign Investment Agency among foreign investors in Poland, trade unionists are a considerable stumbling block to the healthy operation of companies. The Treasury Ministry is dissatisfied with the current situation as well. "Employment guarantees, social packages and privatization bonuses cause the privatized company to generate smaller revenues since it has to satisfy the demands of the staff and trade unions," said former Treasury Minister Wiesław Kaczmarek. He added that the unionists' requirements have decreased the budget's revenues from privatization by 10-20% annually and this year they may be smaller by zł. 400-800 million. (Rzeczpospolita, p. B1) A.Z.