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Published on 6/17/2011 in the Prospect News Distressed Debt Daily.

Sazka inks union agreement; managers take jobs with lottery competitor

By Caroline Salls

Pittsburgh, June 17 - Sazka, AS's insolvency administrator Josef Cupka's management team has negotiated an agreement with the company's unions, according to a news release.

The company said the union members understand Sazka's difficult financial situation and "compromised on their requirements anchored in the collective agreement."

Sazka said the three most important of 15 collective bargaining agreement obligations will remain in force until the end of the year.

Under the union agreements, employees can continue to use the first company kindergarten in the Czech Republic.

Employees will also receive lunch vouchers and are entitled to remuneration for life or work anniversaries.

According to a separate news release, the results of a human resources analysis show that former Sazka chief executive officer Ales Husak canceled the non-compete clauses of the company's employees at the last minute and let them terminate their employment so they could take key positions in lottery competitor Fortuna.

The company said non-compete clauses were canceled for middle management and several key managers from Sazka's IT and legal departments.

As of May 31, the analyses showed that 22 people left Sazka. Eighteen of the former employees accepted jobs at Fortuna, most of them after Sazka was ordered into bankruptcy.

Sazka is a Czech Republic lottery company.


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