LNM Holding and trade unions square-up over cost-cutting demands

LNM Holding, a major investor in Ispat Polska Stal (IPS), is pressing for a major costs crackdown in its plants, a move strongly opposed by trade unions. Last week the unions sent a letter to the Treasury Minister in which they accused the investor of breaching agreements and planning damaging cuts. Representatives of LNM are demanding a limit of up 40% on operating costs in more than a dozen servicing companies cooperating with IPS. Unions say this would mean big job cuts. "The parent company is cutting corners and I see no reason why subsidiaries would be allowed not to do it," said LNM spokesman Antoni Styrczula. IPS will look at its subsidiaries and in some cases could even sell them to investors. LNM representatives believe that the trade unions are simply defending the private interests of some of their members holding stakes in subsidiaries. (Rzeczpospolita, p. B3) M.M.