Bulgarian state rail likely to declare 'effective strike' on March 11

Employees of Bulgarian state railways BDZ are set to go on strike on March 11 2011, although the final date for the strike action is "yet to be voted on," television channel bTV said on February 21.

The heads of the two major Bulgarian labour unions, the Confederation of Independent Trade Unions and Podkrepa held an urgent meeting on February 21 with BDZ union leaders. The meeting was intended to decide on the date of the strike.

"This is not a matter if there will be a strike or not, but when," Petar Bounev, labour union leader, told bTV. "My personal opinion is that the strike must commence after the holidays, so that ordinary people are not affected," he said.

"But the process will be done democratically, and we will vote on the date," he said.

So far, it is likely that the BDZ and National Railroad Infrastructure Company (NRIC) will go on strike starting March 11, with trains stopping from 8am until 4pm, the report said. The strike, according to Bounev, will be "indefinite".

Earlier in February, the Cabinet said that the Bulgarian Government will provide a 140 million leva loan to BDZ. The finance follows approval by the European Commission (EC) in December 2010, allowing the country to grant state aid of up to 248.6 million leva to BDZ.

But the concern of BDZ and NRIC is the loan from the World Bank, which stipulates that the troubled companies must shed about 30 per cent of their staff, or about 8000 people by 2016.

In December 15 2010, the memorandum with the World Bank was signed by Finance Minister Simeon Dyankov. The loan is worth 600 million leva. This is a state loan, most of which – 460 million leva – will be allocated to BDZ, and the rest to NRIC.

The loan will not be used for investments, but rather to pay off old debts accumulated to the German company Kfw and the Bulgarian Development Bank.

Within the 140 million leva to be funneled to the NRIC, the purchase of new machinery and repair equipment is envisaged. Initially, NRIC were negotiating for the release of 250 million leva, but the World Bank agreed to 110 million leva less

However the labour unions are unhappy that 30 per cent of the staff has to be ousted, saying that instead of "reducing" the capacity of BDZ and NRIC, strategies should be made for their expansion instead, the report said.

Transport Minister Alexander Tsvetkov was invited to attend the meeting, but chose not to, bTV said.