Chair Jaromir Pytlik of the mining labour unions at OKD said that miners fear that if they agreed to a wage cut, it would merely be the first step. The next step, he said, would be for the mine owners to close down the whole mining operation. He said he senses that if OKD sells its Paskov mine or another location, nothing will stand in the way of the demise of the company. /Could be slightly NEGATIVE; please note NWR (21,3 CZK, -1,84%) is to post its Trading Update and 3Q13 Prices in coming days which we see as a risk for downward pressure on NWR shares.
A crisis scenario by the Ostrava regional labor office foresees the possibility of as many as 13,000 job losses in the area (North Moravia) by the end of the year. This assumes job cuts at OKD of NWR, Evraz and supplier companies. Regional Gov. Miroslav Novak said it is becoming a nationwide problem. The cabinet should address the situation by allowing “Kurzarbeit,” providing requalification courses, and giving investment incentives, he said. Novak will send a letter to Rusnok asking for a meeting.