The announced 5.5% wage cut for 15,000 employees of Czech mining company OKD will not occur and instead, through negotiations with mining unions, a compromise has been reached. That compromise, occurring on 30 April, calls for a decrease in the number of agency workers used, and a partial reduction in the number of employees from supplier companies.

The demand for cuts is due to the impact of the world’s financial crisis.

The company originally proposed an across-the-board decrease in salaries of 5.5%, cancellation of some bonuses, and a reduction in staff of 2,600 regular employees and 900 workers employed by supplier companies. The negotiated compromise preserves all full-time jobs, with job reductions coming from among the 3,000 agency workers that OKD used and from staff of some suppliers.

A mining union spokesman called the compromise the lesser of two evils.

OKD, the Czech Republic’s largest hard coal producer, is wholly owned by New World Resources of the Netherlands, an investment company focusing on assets in Central Europe. In 2008, OKD produced 12.7 million tonnes of coal, of which 7.4 million tonnes was coking coal.