Last chance for Kompania Węglowa to resolve strike

Prof Andrzej Barczak, a member of KW's supervisory board, yesterday warned that a mass walkout among KW's 63,000 workers lasting several days would push the company into bankruptcy. However, Dominik Kolorz, head of the coal-mining arm of Solidarity, was adamant yesterday that the strike was inevitable. Moreover, on Wednesday union members will be balloted about a general strike. The unions are demanding a pay rise of 6.9% this year, significantly above the 4.8% cap set by the previous government for companies receiving state aid. "If the management board bows to union demands it may be sued for breaking its fiduciary duty," said Prof Barczak. According to KW CEO Grzegorz Pawłaszek, a strike would cost the company zł.43 million in lost revenues for each day of the strike. But it could be worse. Prof Barczak warned a strike would also damage KW's creditworthiness and scupper its planned bond issues. If the unions' demands are met, the slight net profit expected for 2007 would turn into a loss of zł.180 million, rising to zł.280 million in 2008. (Puls Biznesu, p. 10) R.M.