Crisis Deepens at Wagon LOSTR Louny and TSS Hulín: Wage Cuts, Layoffs, and Uncertain Future

It started as a quiet collapse, but now the cracks are impossible to ignore. With wages slashed, skilled staff laid off, and credibility in ruins, Wagon LOSTR and TSS Hulín are spiralling toward the scrapyard of Europe’s rail industry.

The financial outlook is bleak at Wagon LOSTR Louny and TSS Hulín, two companies owned by Slovak rail entrepreneurs Peter and Rudolf Šuška. According to recent reports from trade union representatives, qualified employees are already being laid off, while wages for the remaining staff have been drastically reduced.

As early as March, the Union of Railway Workers (OSŽ) flagged serious issues facing Wagon LOSTR and TSS Hulín at its general assembly. Renata Dousková, chair of the Union’s Non-Railway National Committee, informed attendees of the critical situation in these privately owned companies. "The owners of TSS Hulín are reducing employee salaries and suffering from a lack of contracts, which is leading to a wave of departures. The situation is not much better at Wagon LOSTR, where wages are being slashed nearly to the minimum wage," said Dousková. She added that wage cuts are being implemented through unilateral changes to pay scales.

The outlook appears to be worsening. At Thursday’s OSŽ conference in Krumlov, it was announced that layoffs of skilled technical staff were being planned at TSS Hulín. These employees are vital to the company’s operations and possess specialised know-how in rail vehicle manufacturing. The union expressed hope that state-owned companies like České dráhy or the Railway Infrastructure Administration (Správa železnic), which are currently offering recruitment bonuses, might consider employing them.

Whether the company will even be able to fulfil future contracts if won is now a serious question. The availability of qualified employees is critical to success in the industrial sector, and the rail industry is no exception. Skills in this sector are not acquired overnight—they are developed over years of experience. Many railway companies stress the irreplaceable value of seasoned staff and the challenges of hiring and training replacements.

According to union sources, wages at Wagon LOSTR dropped by a few percentage points between 2023 and 2024. In contrast, TSS Hulín recorded a more significant decline, with salaries falling by more than 10%. "These changes will be reflected in official wage statistics next year," said Dousková, responding to a query from RAILTARGET. She also noted that, as of now, Wagon LOSTR has no new contracts in place that could stabilise its financial situation.

Internal Tension and Poor Atmosphere

An internal source confirmed to the newsroom that the working environment at Wagon LOSTR remains tense, with little improvement since a critical employee review posted four years ago on Atmoskop.cz. In that review, an employee complained about chaotic management, poor coordination across departments, and arrogant behaviour from leadership.

Hope Dashed: ČD Cargo Cancels Major Contract

Some hope had emerged with ČD Cargo’s tender issued in November last year for up to 300 new platform wagons (including 50 Sggns and 150 Sggrs, with an option for another 100 Sggrs). According to the public procurement portal, five companies entered the bidding process: Kolowag, NYMWAG, TATRAVAGÓNKA, Đuro Đaković Specijalna vozila, and Wagon LOSTR. However, the tender was ultimately cancelled, dealing another blow to the struggling manufacturer.

Long History of Troubles in Louny

Wagon LOSTR’s troubles are not new. The company, under its previous name Legios, has been plagued by crises for more than a decade. In 2012, a bankruptcy petition was filed against it by the Slovak Všeobecná úverová banka, which was owed over EUR 8 million (200 million CZK). Over time, additional creditors came forward, turning the bankruptcy into one of the largest insolvency cases in the country. A total of 322 creditors registered claims amounting to EUR 132 million (3.285 billion CZK).

The bankruptcy of the company—formerly known as LOSTR and later rebranded as Heavy Machinery Services—is now nearing its final stage. The insolvency administrator is selling off remaining assets, settling legal disputes, and finalising claims distribution.

Despite several changes in ownership, the company’s reputation has yet to recover. Investigative reporting has previously uncovered a range of suspicious activities, including police raids by the National Organised Crime Agency (NCOZ), the issuing of two company shares totalling EUR 302 million (7.5 billion CZK), the transfer of thousands of railcars under dubious circumstances, and court-ordered asset seizures over a 145-million-crown debt (approx. EUR 5.8 million). Such events continue to cast a shadow over the firm’s leadership and credibility.