Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Rail Cargo Hungary, a subsidiary of the Austrian National Railway, announced the collective redundancy of 460 employees in Hungary out of 3,000 employees. The company has initiated negotiations with the government about increasing rail track fees and announced a restructuring plan that envisages the dismissal of hundreds of employees. The company informed the Trade Union of Hungarian Railway workers and Free Trade Union of Railway Workers about the need of the restructuring, but in the negotiation they put pressure on the Trade Union by announcing that the alternative to the dismissals is liquidation.
Hungary's National Development Ministry which has some influence on the company's decisions - as Rail Cargo is connected to MÁV, the Hungarian State Railways Private Limited Company - said that the announced layoffs by Rail Cargo Hungary, the freight unit of Austrian railway company ÖBB, were unjustified because track fees have remained constant over the last six years and the planned increase in 2011 will essentially have no effect on the cargo segment of railway transportation.
MÁV Cargo Árufuvarozási Zrt. (MÁV Cargo Goods Transport Private Limited Company) the predecessor of Rail Cargo Hungary Zrt. was established on 1st January 2006 by Magyar Államvasutak Zrt. (Hungarian State Railways Private Limited Company) outsourcing its goods transporting activities. It achieved a market leading position in Hungary by its extended and quality services. MÁV Cargo Zrt. was sold to Rail Cargo Austria in 2008. Today Rail Cargo Hungary Zrt. as a member of Rail Cargo Austria Group is part of the third largest rail freight companies in Europe.
Eurofound (2010), Rail Cargo Hungary, Internal restructuring in Hungary, factsheet number 71142, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/71142.