The passenger transport division of Bulgaria's national railway carrier BDZ, BDZ Patnicheski Prevozi, will set up a joint venture with local postal operator Tip Top Courier, according to a request filed with the Commission for Protection of Competition (CPC) to give its opinion about the proposed deal. The new business will allow BDZ to secure jobs for about 200 employees who will be laid off as part of the company's decision to suspend its parcel business, which suffers losses of BGN 2 million leva a year. BDZ will hold 51% in the JV, while Tip Top Courier will own the remainder, BDZ's board chairman Vladimir Vladimirov said. "We have been looking for a decision to keep the work of these people for about a year. Tip Top Courier offered itself to create joint venture and therefore we chose them," he said.
Source: Dnevnik (26.04.2011)

Railway trade unions affiliated to the Confederation of Independent Trade Unions and the Podkrepa Labour Confederation have demanded the resignation of Vladimir Vladimirov, Chairman of the Board of Directors of the Bulgarian State Railways (BDZ) Holding Company in a declaration addressed to the Prime Minister, the transport minister, the Parliament leader and the media. The trade unions demand negotiations on new collective labour agreements to start immediately, the agreements reached so far to be honoured and managers to be appointed by competition. The unions warn that if the signed agreements are violated, they will call on railway employees to go on strike. They recall that after railmen went on strike in March, a memorandum of understanding on the development of the railway sector and strike agreements were signed. Intentions for a gross violation of the strike agreements signed have been stated since June after the unprecedented change in the managements of the BDZ Holding Company and the Passenger and Freight Haulage companies, the declaration says. The new management's actions are aimed at skirting the good terms set in the collective labour agreement and infringing on the employees' rights, according to the trade unions.
Source: money.bg (12.07.2011)

Bulgarian company Transimpex has levied a distraint on the assets of national railway carrier BDZ over unpaid debt, according to an announcement in the Commercial Register by private bailiff Stoyan Yakimov, dated October 6. According to the statement, the railways' debt to the company was slightly more than 7.4 million leva as of December 17, while accumulated interests stood at more than 1.5 million leva as of October 6. The forfeit concerns BDZ's stakes in BDZ Tovarni Prevozi and BDZ Patnicheski Prevozi. In early October, the Privatisation Agency started a procedure for the sale of the company's freight division, which holds about 80 per cent of the country's cargo transportation market. As of June 13, Transimpex was 42.12 per cent-owned by Trans Nove EOOD, which is in turn controlled by Vato 2002 EOOD. Vato 2002 is part of Nove Holding AD, in which businessman Vassil Bozhkov holds a 98 per cent stake. Recently, BDZ's management announced plans to cut its workforce by 2000 and suspend services on some of its unprofitable routes. The proposed measures made trade unions decide on a nationwide strike starting on November 24.
Source: Darik Radio (11.11.2011)

BDZ insists on rescheduling of debts to suppliers We consider it necessary to negotiate with suppliers and creditors for the gradual repayment of the company's liabilities, stated yesterday Vladimir Vladimirov, Chairman of the Board of BDZ (Bulgarian State Railways) on BNT (Bulgarian National Television). So far, there has been such a disbursement practice. Should no agreement be reached, both BDZ - Passenger services Ltd and BDZ- Freight services Ltd will go bankrupt. This is one of the reasons for the BDZ management to demand an acceleration of reforms with the introduction of the five new measures. According to the managers of the Holding Bulgarian State Railways EAD, as a result, funds will be released for the repayment of the company's debts to banks and suppliers. "In this way, we will be able to balance the revenues for a certain period, while rescuing the company from the crisis," explained also Vladimirov. If the planned reforms are implemented, it will be easier for us to borrow a loan from the World Bank, indicated he. Particular interest in the purchase of BDZ-Freight services Ltd could be noticed, but potential investors also have financial difficulties. "Those companies that show interest either have their own problems or they lack the financial resources to penetrate the Bulgarian market," explained Vladimirov. As a result of the privatisation of the holding company, the accumulated amount of some BGN 200 mln is expected to be spent on the BDZ's debt repayment. The Bulgarian Privatization Agency has not announced yet who will be selected for consultant on this sale. The price of future sale transaction of 'BDZ-Freight services' Ltd will depend on the actual number of the bidding companies and on the final bid price. Vladimirov commented that the current EU economic situation was not favourable at all and he expressed concerns that the estimated cost might not be achieved and this would hinder the rehabilitation of the state railway company. Meanwhile, trade unions are preparing to stage a general strike on November 24.
Source: Class (15.11.2011)

A total of 200 workers of the Bulgarian State Railways BDZ have accepted the offer of the troubled company's management to be made redundant in exchange for six monthly salaries, BDZ announced. The 200 workers in question are about 10% of the 2 000 workers – out of a total of 13 000 employed by the Bulgarian railways – that the BDZ management wants to lay off as part of its desperate measures to save the "technically bankrupt" (in the words of Transport Minister Ivaylo Moskovski) transport company. The management of the state-owned BDZ Holding announced in early November that it intended to lay off 2 000 workers, and reduce the number of trains in operation by 150 by January 2011, which led the syndicates to declare a mass strike as of November 24, 2011. Of the 200 workers who agreed to quit voluntarily, 90 are employees of BDZ Passenger Services, and 110 are employees of the slated for privatization BDZ Freight Services.
Source: money.bg (15.11.2011)

BDZ will incur a daily loss amounting to BGN 600,000 if a strike is staged “The Bulgarian State Railways Holding (BDZ) will incur a daily loss amounting to BGN 600,000 if the workers and employees stage an effective indefinite strike,” said Vladimir Vladimirov, Chairman of the Board of Directors at the company. “Out of these, some BGN 400,000 will be in missed revenues of the BDZ Freight Services Department and the other BGN 200,000 in daily losses of the BDZ Passenger Transport Department." In the end, the effective protest will lead to the company’s bankruptcy. About 70,000 people use railway transport every day. Between 26,000 and 27,000 people will be affected by the planned strike on November 24. According to the company’s management, about 540 buses must be provided for the transport of people in the areas affected by the strike. "BDZ is unable to fulfil such a commitment," said Metodi Hristov, Head of the BDZ Passenger Transport Department. He added that it is not clear yet which areas will be affected. This renders the organisation of alternative transport impossible. The company has the practice of transporting passengers at short distances in emergency cases. If there is pre-sale of tickets for trains that will not travel, passengers will be compensated. The list of services which will not be carried out will be announced on the Internet site of the Railways. The management of the State Railways said that it will not abandon the 5 planned restructuring measures. They provide for the dismissal of 2,000 workers, stopping 138 trains, the sale of non-operating assets, raising ticket prices and the sale of the BDZ Freight Services Department. The trade unions announced that, on November 24, an indefinite effective strike will be staged because of the foreseen dismissals. Vladimirov said that the trade unions have no cause and alternative proposals. "The announced strike is illegal," said Vanya Florova, General Legal Adviser of the holding. She explained that the statutory requirements for the conclusion of agreements, ensuring appropriate transport services, have not been met. The signing of the agreement has to be done no later than three days before staging a strike and has to cover at least 50% of the volume of transport services.
Source: Class (23.11.2011)

BDZ incurs losses amounting to more than BGN 440,000 in the first four days of the strike In the first four days of the strike, the Bulgarian State Railways Holding company (BDZ) incured losses, amounting to more than BGN 440, 000. “The unrealized revenue of the BDZ Passenger Transport Directorate stands at BGN 375, 000," said Jordan Nedev, BDZ Executive Director, quoted by Investor.bg. “The losses of the BDZ Freight Services Directorate are about BGN 60-70, 000 ,” said for Klassa Plamen Dzhurov, company’s Manager. He explained that they came from additional costs for redirection of shipments during the night. Workers are paid overtime and the National Railway Infrastructure Company (NRIC) is charging higher fees for these extra activities. Schedules are being changed every day. “There is no outflow of consignors; in the recent days, there has even been an over fulfillment of the company’s plans," explained Dzhurov. Despite the expectations for negotiations, a meeting between the management and the strikers was not held yesterday. Officials from the press office explained that now negotiating of loan extensions is an urgent priority for the holding company. Above 80% of the passenger trains in the country stopped for a fifth consecutive day, according to information from the trade unions. Since the beginning of the strike, no train has left from the Central Stations in the towns of Sofia, Pernik, Mezdra, Gorna Oryahovitsa, Plovdiv, Burgas and Stara Zagora. Meanwhile, the BDZ Freight Services Directorate filed a complaint against ten employees of the company with the Sofia City Court. According to the managers, they have staged the protests. The claim is aimed at declaring the strike illegal. Some 30 trains will be stopped from travelling today. This is the first phase from the plan for reforms in BDZ. It is envisaged that in the next two weeks the number of passenger trains will be reduced gradually, so that on December 12, the travelling trains will be just 138.
Source: Class (29.11.2011)

Over 900 Workers Leave BDZ The negotiations over the possible cancellation of the ongoing strike of the railway workers in Bulgaria resume at 11 am today, with the participation of the directors of BDZ Freight Department and BDZ Passenger Trains – Mr. Georgi Ivanov and Mr. Metodi Hristov. Sources from the Transport Ministry said that the new collective bargaining will be the central issue on the agenda. The negotiations halted Thursday, when the trade unions’ leaders left in the middle of their talks with the BDZ Holding leadership. Today, the BDZ chiefs will be defending their stand, BDZ Chairman of the Board Vladimir Vladimirov said. Last Saturday, the number of BDZ workers on strike fell to 166 people from 320 a week before. Some 925 workers have agreed to table their resignations against a compensation of six net salaries.
Source: Standart (12.12.2011)

Management BDZ Passenger Services and union representatives signed a collective agreement, which put an end to the 24-day strike in the railways. The agreement provides for paid leave of railway to be reduced by 2 days and the saved money will go into a fund from, which bonuses would be paid by mid 2012. Layoffs in case of reduced operations would be agreed with trade unions. Retiring railroad personnel will receive eight instead of nine wages. Company executives believe that the signed agreement will allow the commenced reforms in the holding to be maintained. According to the unions, the strike has reached its goal and railroad interests will be protected. Since yesterday all trains in the country are travelling normally in their regular schedule.
Source: Class (20.12.2011)