13th Nov 2013 09:54
LONDON (Alliance News) - New World Resources PLC Wednesday said it had secured a new labour deal with workers at its OKD unit in the Czech Republic, who had been threatening to launch a series of strikes in coming weeks after rejected a previous deal.
In a statement, the company said the deal for 2014 to 2018 includes a pay freeze in 2014, an raise in line with inflation in 2015 and annual wage negotiations after that. It has cut holiday and Christmas bonuses from 14 and 16 days pay, respectively, to 6 days pay for both.
The new remuneration package will cut personnel expended by about 4%, while expected redundancies will cut the bill by a further 4%.
"Reaching the new collective agreement is another important step forward in addressing our cost base," New World Resources Chairman Gareth Penny said in a statement.
The company has been hit by a fall in commodity prices this year and was seeking to cut costs to try and improve profitability. However, OKD workers had rejected previous proposals put forward by the company and threatened to launch strikes starting on Friday.
New World Resources shares were up 6% at 83.7 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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