Czech state approves support for workers at miner OKD

Czech state approves support for workers at miner OKD
By bne IntelliNews May 11, 2016

The Czech government on May 11 approved a special contribution for soon to be redundant employees of the country’s only hard coal miner, OKD, which was declared bankrupt two days earlier.

OKD has around 9,800 permanent employees, 2,500 contractors, and 200 agency workers. Those who have worked 15 or more years will be entitled to CZK8,000 (€296) per month in special state support, Industry and Trade Minister Jan Mladek said following a cabinet meeting, CTK reports.

The government estimates OKD would have to pay CZK5.9bn in severance and other expenses if all its mines close. However, Mladek said Prague is working with the bankruptcy administrator to prevent that. “Maintaining OKD’s operation while in insolvency is a priority for the government,” he said OKD’s collapse could knock 0.4 percentage point from the country’s GDP and cost the state budget CZK33bn (€1.2bn), according to Deloitte, advisor to NWR. In the Moravia-Silesia region, it estimates immediate closure would cut employment by 4% and GDP by almost 5%.

Adding to those figures will be the cost of special payments to redundant OKD employees, who could receive money for up to five years, depending on years worked and their age, Prime Minister Bohuslav Sobotka said. The state granted similar contributions to brown coal miners 15 years ago.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Norway's Scatec Solar to construct €85mn solar plant in Ukraine

Norway's Scatec Solar is going to begin the construction of a €85mn solar power with a total capacity of 83 MW in Ukraine's Cherkasy region this year, according to the company's June 12 ... more

Polish PM takes over supervision of PKN Orlen and Lotos

Poland’s Prime Minister Mateusz Morawiecki has taken over supervision of two state-controlled oil and gas companies, PKN Orlen and Lotos, the energy ministry said on June 5. Stripping the ... more

Belgian court unfreezes $21.5bn of Kazakh assets in dispute with Moldovan oligarch Stati

A Belgian court has lifted a freeze on Kazakh National Fund assets worth $21.5bn imposed as part of a dispute with Moldovan oligarch Anatolie Stati, the Kazakh justice ministry said on May 30. It ... more

Most Read

  1. STOLYPIN: Putin builds a Presidential Administration fit for stagnation
    6 days ago
  2. Irish tech titan lines up stake in Slovak AI firm
    2 days ago
  3. Azerbaijan makes territorial gains in Nakhchivan as fighting with Armenia flares
    16 hours ago
  4. Erdogan raises a white flag in the lira crisis
    22 days ago
  5. Denmark remains last to approve Russia's Nord Stream 2, Sweden finds "no reason" to ban the pipeline
    7 days ago
  1. KRUK REPORT: The unbearable lightness of being alive
    20 days ago
  2. Sberbank oil analyst Alex Fak fired for being openly critical of state-owned gas giant Gazprom
    28 days ago
  3. STOLYPIN: Putin builds a Presidential Administration fit for stagnation
    6 days ago
  4. Gazprom insider pipeline deals for Putin cronies worth $93bn, analysts claim
    29 days ago
  5. COMMENT: Russia’s oil giant Rosneft just crossed one of China’s red lines in Vietnam
    15 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss