PKP plans to layoff 30,000 employees by end of 2002

PKP plans to layoff 30,000 employees by end of 2002 At the end of 2002, Polish State Railways (PKP) should employ only 145,000 people meaning the company needs to layoff 30,000 of its current employees. About 5,000 will be able to take advantage of early retirement. For three years they will be entitled to 60% of the average vacation salary. PKP will still pay their Social Insurance Company (ZUS) premiums. The remainder of the employees are to obtain a zl. 20,000 to zl. 30,000 severance package. The costs of the layoffs are estimated at zl. 1.1 billion which will be financed through loans from foreign financial institutions and the issuance of bonds. The negotiations about a loan to enable PKP to pay at least part of its zl. 2 billion obligation to ZUS have not concluded yet. (Prawo i Gospodarka, Sept. 16-17, page 1, 4)