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.

Related Articles

Turkey and Israel aim to ink natural gas pipeline deal by end-2017

Turkey’s Energy Minister Berat Albayrak, son-in-law of President Recep Tayyip Erdogan, is set to visit Israel by the end of this year to conclude an agreement to construct a natural gas pipeline ... more

Polish utility Tauron places €500mn eurobond issue

State-controlled Polish power firm Tauron has sold €500mn worth of eurobonds, the company said on July 5. Tauron needs capital to refinance the costs of construction and the purchasing of a ... more

Hungary signs deal to link to Russia's Turkish Stream gas pipeline

Budapest has signed a deal with Russia's Gazprom to link Hungary with the under-construction Turkish Stream ... more

Dismiss