Furniture manufacturer Black Red White anticipates that in the first half of this year, approximately 350 people will be subject to group layoffs – according to information from the District Labor Office in Biłgoraj (Lubelskie). “Solidarity” reported that layoffs have started in Biłgoraj and Mielec.
On Friday, Black Red White (BRW) provided information about plans to end the production of tables and chairs at the plant in Przeworsk (Podkarpackie) and dismiss 220 factory employees.
The head of the labor market services department of the Biłgoraj Labor Office, Halina Bazan, informed PAP on Thursday that the company had planned for group layoffs of approximately 350 people, including employees of the plant in Przeworsk. The company did not specify which voivodeships and counties were affected by the announcement of layoffs of approximately 130 people.
– The group dismissal process will be carried out in the first half of 2025, Bazan said. She added that a letter regarding this matter was received by the Biłgoraj District Labor Office on Friday.
Layoffs have started, but not collective ones yet
As Andrzej Naworol, the chairman of NSZZ “Solidarność” in BRW, said that the company has started layoffs in Biłgoraj and Mielec, but these are not group layoffs. According to him, the employer took advantage of the right to dismiss up to 29 people per month without having to carry out this procedure. The reductions will mainly apply to people employed in administration.
In BRW's announcement last week, the company assured that the group layoff procedure in Przeworsk would be carried out in accordance with the Labor Code, with full respect for rights and the provision of due benefits. The company is to offer employees support in looking for employment on the labor market or in other branches of the company. The phasing out of production in Przeworsk is expected to last until the end of March 2025.
Black Red White from Biłgoraj is one of the largest producers and distributors of furniture and interior design products in Poland. The company is the parent company of a capital group which, according to information available on the company's website, includes 10 subsidiaries, including four Polish and six foreign, which conduct production activities in 19 plants.
Decrease in sales revenues
According to BRW's financial data for 2023, sales revenues from 2022 decreased from PLN 1.5 billion to PLN 1.3 billion. The group sold its products mainly to the domestic market (PLN 950 million in revenues) and to the EU (PLN 338 million). In 2022-2023, the group's gross loss increased from PLN 38 million to PLN 100 million, net loss from PLN 47 million to PLN 90 million, and average employment decreased from 7,498 to 6,640 people. In 2023, the company did not pay out dividends.
The management board attributed the company's deteriorating results to economic uncertainty and the macroeconomic situation, including the high one inflation and high level interest ratesas well as a raise minimum wagewhich resulted in an increase in employee costs.
BRW has been operating for nearly 35 years. The founder and long-time owner of the company was Tadeusz Chmiel, who for years was considered one of the richest Poles. In 2022, half of the company's shares were purchased by the Austrian company XLCEE-Holding GmbH, owner of the XXXLutz furniture store chain. The other half was taken over by Rayo Fund Sa rl based in Luxembourg. Currently, the president of BRW is Mariusz Sośnierz.
Main photo source: Shutterstock