Szczecin shipyard saved by loan, agreement between unions and management

The management board of the Szczecin Shipyard and representatives of five trade unions have reached an agreement on introducing new employment conditions, under which the shipyard is to contract out work to its employees for individually negotiated wages. The new employment scheme was devised in response to mounting pressure from banks to reduce payroll costs and cut the workforce by over one thousand people. Last week creditors signed an agreement to give Porta, the holding company which owns the shipyard, a loan of $40 million to restart production. The loan will be guaranteed by the Industry Development Agency. Porta's shareholders' meeting, which will decide on raising the equity capital by up to zl. 406 million, is scheduled for May 7. Shipyard creditors would take the new issue of shares. (Prawo i Gospodarka, p. 3) K.S.