Dino Polska has long been a favorite of the Warsaw exchange, a company generating impressive returns whose valuation stirs emotions on the Royal Exchange.
The market’s dark horse and the personnel lock‑out mechanism
However, behind the façade of a logistical machine lies a matter that could damage the company’s reputation and, consequently, its financial valuation. What do you do when your job starts to frustrate you? A common solution is to change employers. Drivers of transport companies serving Dino network stores may have been denied that option.
The UOKiK President opened proceedings, and the collusion accusations involved: the company Dino Polska and Euro Finannce, Jar-Trans, Martrans Logistic and Mati-Trans. The antitrust regulator is striking at the management team. The case also targets five individuals: three managers from Dino Polska and one from Martrans and Mati-Trans, who could have been personally responsible for these unlawful agreements. This business cost‑optimisation game has taken a dark turn that investors will surely scrutinise.
See also: Auction house staff were raising art prices themselves. UOKiK exposed unfair practices
Grace period, i.e. hacking the payroll system
Modern technology clearly shows us that systems work best with full resource liquidity. In this case, the entrepreneurs’ goal was different – keeping their current employees, limiting their turnover and reducing recruitment costs. Knowing that other firms would not offer higher wages, they did not need to raise salaries, which could have been lower than in fair competition conditions.
Much of the evidence of the possible practice was gathered by the Office during searches at company headquarters. They indicate that entrepreneurs could have agreed that transport firms would not hire additional drivers and other participants in the personnel collusion.
During the three‑month period, defined by the entrepreneurs as the grace period, a driver could not move to another carrier‑employer that also served the Dino retail network. This brutal restriction of professional freedom.
See also: UOKiK strikes a mass of companies in Poland! Harmful substances were found in their products
Dino Polska as the main architect of the system
The UOKiK President suspects that the initiator and organizer of the system was the company Dino Polska. It was the one that verified whether a particular driver could enter the distribution centre, and any deviations from the agreement required its approval. The company was supposed to pressure carriers not to hire drivers under the “grace period”.
Restricting employees’ ability to find employment and change jobs is practices associated with the 19th century, not with a modern economy. The labour market should be based on free choice, negotiating employment terms and fair competition for workers. Therefore, entrepreneurs who break the law must face serious consequences – penalties for collusion can be up to 10% of turnover. Managers face sanctions up to PLN 2 million
- emphasized Tomasz Chróstny, UOKiK President.
How does the market react to this news? A rather nervous sell‑off, as Dino’s share price fell by 0.27% to 29.91 PLN.
Since the beginning of the year, the stock has dropped by over 28%.
Investors are sensitive to UOKiK actions because they involve huge fines that can severely shake company finances. It is worth recalling that UOKiK recently opened a parallel personnel collusion case against the Lidl store network and their carriers.
Chart. Dino share price.
Source: TradingView
See also: Price collusion in Polish stores. UOKiK President: “Five years of overpaying”. Check if you lost money
Source: UOKiK
