Government blocks plan for management buy-out of mining companies

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Senior government officials have rejected a plan put forward by Industry and Trade Minister Miroslav Gregr for management buy-outs of two large north Bohemian mining companies, Sokolovska Uhelna and Severoceske Doly. Mr Gregr had wanted the management buy-outs to take place before the term of the current government expires in June. The financial weekly EURO's website reported on Tuesday that both Prime Minister Milos Zeman and Labour and Social Affairs Minister Vladimir Spidla had blocked the plan.

The chairman of the Czech Confederation of Trade Unions, Richard Falbr, criticised the government for not having discussed the plans for privatisation of the mining companies with the Trade Unions. He said the Unions learned about the planned privatisation to the hands of the management only from the press. Falbr said that should the government fail to discuss the privatisation of the mining companies in the tripartite, the Trade Unions will oppose it. He also pointed out that management buy-outs had not worked very well in the past.