Protest by Polfa Warszawa trade unions

2004-07-23

Members of the Polfa Warszawa Trade union, part of the newly created Polish Pharmaceutical Holding (Polski Holding Farmaceutyczny - PHF), have Announced a demonstration against their company in protest against the merger of Polfa Pabianice and Polfa Tarchomin. PHF was created in mid-April 2004 by the Treasury via the merger of Polfa Warszawa and Polfa Pabianice. Polfa Tarchomin was to join later, after restructuring. However, the members of the NSZZ Solidarity trade union and the union of the Polfa Warszawa Chemists are not in favour of this. According to them, Polfa Warszawa is in the best financial condition of all of the Polfa companies. Merging three companies which differ with regard to their financial performances would result in a reduction in the value of the entire holding,and this could then be bought at a low price. In addition, the start-up costs of PHF will be PLN 8m (€1.8m). The unions have their own ideas about co-operation. They would like Polfa Warszawa to acquire the two other Polfas. They suggested that the majority of shares (51%) of Polfa Pabianice would be transferred to Polfa Warszawa. The gross profit of the three firms was reported to be PLN 777m (€175m) in 2003.