BULGARIA: Bulgaria's railway workers begin nationwide strike

Record ID: 340574

  • Title: BULGARIA: Bulgaria's railway workers begin nationwide strike
  • Date: 28th November 2011
  • Summary: SLATE INFORMATION
  • Embargoed: 13th December 2011 12:00
  • Keywords:
  • Location: Bulgaria, Bulgaria
  • Country: Bulgaria
  • Topics: Business,Politics,Transport
  • Reuters ID: LVA6O3XDA1EOIRTVGGQF865GDM8H
  • Story Text: Workers in Bulgaria's ailing state railway operator BDZ began a nationwide strike on Thursday (November 24) to protest against a planned 2,000 job cuts under a restructuring programme to secure a 230 million euro World Bank loan.
    Some 80 percent of trains stopped running in the early morning and hundreds of employees across the Balkan country joined the indefinite strike, which aims to stop all trains for eight hours each day.
    "This is happening because of the criminal and irresponsible policy carried out by many governments in the past, not only by the present one. But this one now is imitating reforms and the first step is to cut workers, of course," said Vasil Yanachkov, head of the metal workers union.
    The strike is expected to affect 26,000 passengers daily, disrupt the operations of BDZ's cargo unit and cost the operator around 600,000 levs (300,000 euro) a day, the company said.
    "According to the information coming from all over the country, there are blocked and stalled trains everywhere. This is the truth," said Plamen Dimitrov from "KNSB" trade union.
    The World Bank loan will help indebted BDZ, which currently employs 13,000 people, to repay some of its debts which currently amount to 800 million levs (400 million euro) and thus improve its balance sheet.
    Talks with the World Bank for the state-guaranteed loan have already been wrapped up and the deal is awaiting approval from the lender's board and the government, which is pushing BDZ to make more savings and increase revenue before giving the green light.
    "Dialogue means the opportunity for the both parties to speak and to listen to each other. Nobody listens to us, when we speak. So, there is no dialogue at all, because nobody from the syndicates wants to hear us and understand what we are saying," said Yordan Nedev, managing director of Bulgarian railway operator BDZ.
    Other measures for stabilising the company include the privatisation of its cargo unit, more job cuts, sale of non-operational assets and optimisation of train timetables.
    The Balkan country needs to overhaul its potholed roads and outdated railways to attract foreign investment and boost tourism as it tries to return to sustainable growth following deep recession.
    BDZ launched a long-delayed overhaul last year to meet the World Bank's requirements but fearing a new economic slowdown, the finance ministry -- which will transfer tranches of the loan as bridge financing -- demanded more steps from the railway to improve its finances.
    The talks between the trade unions, BDZ and the government will go on but the company's management said the restructuring is inevitable, otherwise BDZ may be declared insolvent.
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