The management of Ukrainian state-owned Ilyichevsk (Illichivsk) Commercial Sea Port (SCPI), under the pressure of local labor Union, fell back and agreed to dismiss only 100 employees instead of about 500 jobs cut the company had previously planned, Dumskaya.net reports.
At the same time, the troubled state-run company not to worsen the financial situation of the port, decided to shift some dockworkers to four-day work week, the agency said.
Port of Ilyichevsk planned to cut jobs due to “lack of funds” back in September 2011, postponed the move to February 20, but eventually failed because local labor union had warned it would call a strike.
The port’s authorities met with union’s leaders and announced that the layoff order execution is canceled until March 21 and the number of job cuts was reduced to 100 people, primarily those who have reached retirement age.
The enterprise streamlining its business also announced the spinoff of social infrastructure (kindergartens, a recreation and sports centers, a hotel, etc.
In 2011, the Port of Ilyichevsk discharged 575 workers. Now the enterprise workforce is 6,500 employees.
Many port workers are confident that the SCPI management is set to prepare the company for privatization to reduce its assets value. Thus, the company decided to commence downsizing because mass layoffs will be not possible after the privatization, Dumskaya.net reported.
State-owned Sea Commercial Port of Illichivsk (Ilyichevsk) ranks among Ukraine’s top 4 seaports. The Port of Ilyichevsk encompasses 346 ha, 6km of waterfront with 29 berths. Its handling and warehouse facilities enable import/export freight flows of over 30 million tons a year. In 2010, Ilyichevsk was the second among the Black Sea-based ports by cargo throughput.