Nitrogen Puławy plants, which are part of the Azota Group, face serious challenges that endanger their continued operation. Trade unions are beating the alarm, indicating that the situation in the company is dramatic. "We stand about a fewer millimetres above the abyss," says the trade union letter addressed to Prime Minister Donald Tusk. They call for immediate intervention, fearing for the future of the company, and thus for jobs of thousands of people.
Trade unions are warning: Government needs a fast response
In a letter quoted by the media, 8 trade unions from the Grupa Azota Puławy asked Prime Minister Donald Tusk to respond rapidly in the face of the deteriorating situation in the company. Trade unions not only criticise the board, but besides point to the deficiency of an effective consequence by the company's authorities to marketplace and financial problems which began in mid-2022. The letter stresses that they do not agree to transfer work for the current situation to employees, suggesting that the board did not take the appropriate steps to address the difficulties ahead.
Grupa Azota Puławy: Key player in the Polish chemical industry
The Puławy Nitrogen Plant is part of the Azota Group, the second largest maker of nitrogen and compound fertilisers in the European Union. The Azota Group, whose Treasury holds 33% of shares, is besides the only maker of melamine in Poland. The company's activities besides include production of polyamide, OXO alcohol, plasticizers and titanium white. Nitrogen plants Pulawy, as well as another plants of the Azota Group, specified as Grupa Azoty Police, Grupa Azoty Kędzierzyn and Zakłady Chemyczne Siarkopol, play a key function in the Polish chemical industry.
Market and external problems: Impact of pandemic and conflict in Ukraine
The trade unions in their list point out that the current problems arise not only from errors in company management but besides from external factors. The COVID-19 pandemic and the war in Ukraine had a crucial impact on the functioning of the Puławy Nitrogen Plants. However, as the trade unionists point out, there are besides factors on which the Polish State has or should have an influence. They draw attention to the uncontrolled import of Russian fertilizers that are re-exported to Ukraine, and to the import of non-climately costly plastics.
Concerns for the Future: Threat of bankruptcy without government intervention
Trade unions do not hide concerns about the future of Puławy Nitrogen Plants. In their letter, they inform that without government intervention, the company is facing bankruptcy. They stress that intervention is essential to prevent further deterioration of the crisis. Among the demands of trade unionists is besides opposition to the termination of the Joint Labour Agreement (ZUZP), which has been in force since 22 March 2006.
Controversies around the termination of the collective bargaining agreement
On 29 August 2024, the Management Board of the Azoty Puławy Group informed the trade unions of its intention to terminate the ZUZP. This decision was preceded by negotiations which, however, did not bring an agreement between the parties. The trade unions stress that the decision is incompatible with the social agreement of 15 September 2014, concluded between the Azoty Group in Tarnów, the Puławy Nitrogen Plant and the union organisations. This agreement provided that the ZUZP would stay unchanged.
What's next with the Puławy Nitrogen Plant?
The future of Puławy Nitrogen Plants is in question. Trade unions hope that the government will take swift action to save the company from bankruptcy. Without appropriate intervention, further destabilisation may occur, which will affect the full Polish chemical industry. In the face of billions of losses already reported by the media, decisions taken in the coming weeks may find the future of 1 of the key industrial companies in Poland.
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Nitrogen Puławy plant on the brink of crisis: Trade unions call on the government to intervene
