Simeon Djankov: The ongoing strike is leading BDZ to bankruptcy

“If the strike of the railway workers continues until the end of the week, BDZ Passenger Transport Department might be declared bankrupt and a new company might be set up in its place," said Minister of Finance Simeon Djankov on NTV. He stated that the holding company has incurred losses amounting to BGN 1.5 mln over the 12 days of protests. According to the trade unions, the negotiations are being delayed deliberately in order to bring the company to bankruptcy. This will allow the BDZ Freight Services Department to be sold at a very low price.

"The strike is not the biggest problem which the holding company faces because banks demand their money back,” said Vladimir Vladimirov, Chairman of the Management Board of the Bulgarian State Railways Company (BDZ), on bTV. Vladimirov denied the allegations released in the media that the company holds a deposit of about BGN 60 mln from the State subsidy in a bank. He was clear that BDZ’s management will not yield to the pressure on the part of the trade unions.

Over 86% of the passenger trains throughout the country stopped between 8:00 and 16:00 hrs yesterday. Out of a total of 225 trains that have to travel during the time of the protests, some 193 did not leave the stations. Since the beginning of the strike, no trains have departed from the central stations in the towns of Sofia, Pernik, Mezdra, Cherven Bryag, Gorna Oryahovitsa, Plovdiv, Stara Zagora, Vidin. The data of the trade unions suggested that the protests were growing and officials from another 6 stations joined them yesterday. The strike is against the planned layoffs of 2,000 workers and employees from the holding company, against the stopping of 138 trains and reducing workers' rights under the collective labour agreement.

The meeting scheduled for yesterday between the trade unions and Minister of Transport Ivaylo Moscovski did not take place. It is expected to be held today. Trade unions and strike committees definitely refuse any negotiations with the management of the BDZ holding company.

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