Cargo Slovakia to lay off 2,000 workers in 2011.

By bne IntelliNews December 24, 2010
The board of directors of state-run railway freight company Cargo Slovakia approved the business plan for 2011 and will lay off about 2,000 workers or approximately 20% of all employees, news agency SITA reported. However, the company negotiated with the labour offices to find new jobs for the fired workers. They will also receive compensations based on the period they had worked for Cargo and the company will prepare a social program for them. Martin Halanda, spokesman for Cargo, said that further details of the business plan will be discussed in Jan 2011 but the company will not accept increase of personnel costs. Previously it was announced that the company expects a loss of EUR 99.4mn in 2010 compared to earlier projections for a loss of EUR 82mn. In 2009, the loss was EUR 126.6mn. Both operating revenues and costs are expected to exceed initial forecasts in 2010. Cargo Slovakia expects to retain a positive trend regarding the volume in transported cargo in 2010 and 2011.

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