One of the two Bulgaria's state-owned railway companies, BDZ, contemplates axing 2000 employees by the end of  2009 in order to balance its books.

This has come just three days after Bulgaria's other state-owned railway company, National Railway Infrastructure Company (NRIC), announced it would withhold 30 per cent  of its employees' monthly wages by the end of 2009 in another drastic measure to keep itself afloat.

BDZ has accumulated a debt exceeding 22 million leva and on September 2, the Union of Independent Bulgarian Syndicates, Podkrepa and the company's management board met to iron out an escape strategy for the beleaguered company.

According to reports from various Bulgarian media, a total of 1300 works are poised to be made redundant by BDZ and its three subsidiaries branches: freight, passenger transport, and locomotives. The aforementioned trimming is earmarked to begin as early as October 1.

A further 670 will be released by mid-December 2009. The company has already offloaded more than 1100 workers since the turn of 2009, most of those nearing retirement age.

Through strategic restructuring, layoffs, management and reduction of fuel and other expenditures, the company aims to save more than 24 million leva. It is also possible, though not confirmed, that the company might resort to procrastinating the payment of salaries.

Similar "strategic moves" were employed by NRIC on August 31. The "sister" company has accumulated a 50 million leva deficit and is implementing a temporary salary cut of 30 per cent with effect from September 1 2009, NRIC chief executive Anton Ginev said.
 
After January 1 2010, the 30 per cent monthly reduction will be paid with interest, Ginev told an August 31 news conference.
 
Ginev said that the temporary wage reduction was part of a package of anti-crisis measures agreed with unions earlier in 2009, although Bulgarian news agency BTA said that the unions had described most of the measures in the package as unacceptable.
 
Other measures that NRIC will implement include staff reductions and closure of some rail routes.