EMCC European Monitoring Centre on Change

ZSSK Cargo

Company/Organisation:
ZSSK Cargo

Geographic Location

Country: Slovakia
Location of affected unit(s): Slovakia

Company

Sector: Transportation / storage
Transportation and storage
49.2 - Freight rail transport
Number Employed: 4900

Employment Effects

Announcement Date: 06-10-2020
Planned Job Reductions min: 490
Planned Job Reductions max: 490
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-11-2020
Foreseen End Date: 31-12-2020
Direct Dismissals: 490

Additional Information

Slovak state-owned rail company, ZSSK Cargo, has announced it will dismiss 490 workers from 1 November to 31 December 2020. Internal restructuring is attributed to the decline in the volume of transported goods of which 70% are iron ore and coal-related products. Since 2018 there has been a 30% fall in volumes transported. ZSSK Cargo operates without state subsidy and its business was negatively affected by the recession of European steel industry, ongoing decline of coal power stations in Slovakia as well as the world-wide COVID-19 crisis. Planned redundancies are a part of management´s recovery plan to save the rest of jobs in the company, as far as possible. According to the chair of ZSSK Cargo board of directors, it is assumed that after completion of the restructuring the company will be profitable in 2023. According to the Slovak Minister of Transport, presently, there are no plans for the privatization of the company. Trade unions have approved the planned severance pay. 

ZSSK Cargo has around 4,900 employees in Slovakia.

Sources: