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.
Mining company OKD has announced to close its Paskov mine by the end of March 2017 and to dismiss about 700 employees out of the 1,600 staff. The company filed for bankruptcy in May 2016 and creditors approved the restructuring plan. Most employees will be transferred to other mines within OKD. About 150 workers want to end employment by mutual consent. The remaining 550 workers who get notices will receive severance pays equalling seven times the amount of their wages. The mine was not closed earlier because of a lack of finances to pay compensation for dismissed workers. The State has already lent the company CZK 700 million (EUR 26 million). Ministry of Labour and Social Affairs prepared a social program including a social contribution of up to CZK 8,000 (EUR 296) per month for up to 5 years.
OKD currently employs a total of 9,700 core workers.
Eurofound (2016), OKD, Closure in Czechia, factsheet number 89646, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/89646.