The furniture manufacturer, Black Red White, increased the scope of planned group layoffs from about 350 to 421 people in the first half of this year – according to the information of the Poviat Labor Office in Biłgoraj (Lublin).
The head of the Biłgoraj PUP Labor Market Service Department Halina Bazan announced on Thursday that the office received a letter from Black Red White (BRW) notifying about the adopted regulations of group layoffs.
The letter shows that the reductions will last from February 28 to June 30 this year. First of all, employees from the plant in Przeworsk in the Provincial Podkarpackie, then from other locations are to be dismissed.
Increasing the number of dismissed
In the regulations of January 28 this year. – Bazan said – also indicated, among others Causes and criteria for selection for exemptions, professional groups covered by reductions, qualifications of employees, benefits for them and employees who are not subject to dismissal.
As the manager pointed out, at the same time the company notified the office that 421 people will cover group layoffs, which means an increase in the number of people covered by the intention of release by about 70.
January 17 this year The BRW company notified PAP that it would dismiss 220 employees employed at the plant in Przeworsk. The company assured that the procedure of group layoffs in this factory would be carried out in accordance with the Labor Code, with full respect for rights and providing benefits due. The company is to offer employees support in search of employment on the labor market or in other branches of the company. The termination of production in Przeworsk is expected to last until the end of March 2025.
On January 23, the Biłgoraj Labor Office informed about increasing the number of people covered by group dismissals to about 350. The chairman of NSZZ “Solidarność” in BRW Andrzej Naworol said that the company began release in Biłgoraj and Mielec.
Black Red White from Biłgoraj is one of the largest manufacturers and furniture distributors in Poland as well as interior design articles. The company is a dominant unit in the capital group, which – according to the information available on the company's website – includes 10 subsidiaries, including four Polish and six foreign ones, which conduct production activities in 19 plants.
Decrease in revenues
According to BRW financial data, sales revenues from 2022 fell from PLN 1.5 billion to PLN 1.3 billion from 2022. The group sold its products mainly to the domestic market (PLN 950 million) and in the EU (PLN 338 million). In the years 2022-2023, the gross loss of the group increased from 38 million to PLN 100 million, net loss from 47 million to 90 million PLN, and average employment fell from 7498 to 6640 people. In 2023, the company did not pay dividends.
The management board explained the deteriorating results of the company with economic uncertainty and macroeconomic situation, including high inflation and high levels interest ratesas well as a raise minimum wagewhich translated into an increase in employee costs.
BRW has been operating for nearly 35 years. The founder and long -term owner of the company was Tadeusz Chmiel, for the years one belonging to the group of the richest Poles. In 2022, half of the company was bought by the Austrian company XLCEE-HOLDING GmbH, the owner of a chain of furniture stores XXXLUTZ. The second half was taken over by Rayo Fund SA RL based in Luxembourg. Currently, the president of BRW is Mariusz Sośnierz.
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