PKP Cargo dismisses rail association proposals: ‘They will not help save jobs’

The dire situation at PKP Cargo has necessitated thousands of layoffs. In an effort to help save some of those positions, the Polish Association of Rail Transport Experts and Managers (SEIM-TSZ) sent a letter with ideas to help PKP Cargo to the infrastructure minister. Now, the company is dismissing the letter, saying that it won’t help save jobs.

In its letter of 13 September, SEIM-TSZ argues that Poland should transport goods that are used for rail infrastructure works via rail. Secondly, it wants the country to move bulk materials via rail, arguing that it would mitigate the degradation of the road and improve road safety. SEIM-TSZ also points to the additional benefit of extra income from track access charges for infrastructure manager PKP PLK.

Limiting the scale of layoffs

Ultimately, all of this is supposed to help PKP Cargo save more jobs and take empty renovated wagons away from railway stations. “In the association’s opinion, the submitted proposals would significantly limit the scale of employee layoffs at PKP Cargo, increase rail freight transport and, in addition, generate additional revenue from fees for PKP PLK for using the railway infrastructure”, SEIM-TSZ writes. The association says that the rail freight operator has the staff, wagons and locomotives to do the job.

In its response, PKP Cargo says that it “fully supports all actions taken by various organisations and bodies that aim to increase the importance of rail transport in our country”. By extension, it considers that the letter “should be assessed positively in principle.” Nevertheless, the company says that the proposals will not help save any jobs.

Not a panacea for PKP Cargo ailments

“The aim of the actions currently taken by the Management Board and the Sanation Administrator is primarily to preserve 10 thousand necessary jobs. […] Unfortunately, today we do not have time to further postpone taking actions that are necessary to save the company and the necessary jobs”, PKP Cargo says. The positive financial effects from the restructuring “should be felt from November 2024”, it explains.

PKP Cargo says that it will not need to hire more personnel or to expand its fleet, even if all proposals of SEIM-TSZ are implemented in full. “Because even after the completion of the currently conducted restructuring activities, the company will still have the possibility to increase the transport mass without the need for additional personnel and rolling stock”, it explains.

“A possible decision in the scope postulated by SEIM-TSZ would be beneficial for our company, however, it cannot be treated as a panacea for all identified ailments of PKP Cargo in restructuring.”