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Current Report No. 30/2021

Agreement

Signing of a memorandum of agreement between the JSW S.A. Management Board and the Representative Trade Union Organizations.

Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. ("JSW", "Company") hereby reports that on 13 September 2021 a Memorandum of Agreement was executed between the JSW S.A. Management Board and the Representative Trade Union Organizations.

As a result of the mediation proceedings aiming to end the collective dispute related to the demands made on 5 May 2021, the parties have agreed that:

  1. Effective 1 September 2021, new base salary rate tables higher than existing salary rates by 1.6% are being implemented, which, together with a 3.4% base salary increase effective as of July, will lead to a 5% increase in salary rates.
  2. On 1 October employees in service as at 31 August 2021 will be paid a one-off bonus in the following amount:

             a/ PLN 4,300 - underground workers

             b/ PLN 3,500 - Coal Preparation Plant workers

             c/ PLN 3,100 - others.

      3. Starting as of 1 October 2021, the value of the meal and the supportive meal will be PLN 21 per day worked.

The estimated cost of the above decisions is:

         - 1.6% increase in salary rates starting in September: PLN 23.5 million in 2021

         - one-off bonus: PLN 113.5 million

         - meals and supportive meals: PLN 2.3 million in 2021.

In total, the estimated cost of the Memorandum of Agreement in 2021 is PLN 139.3 million.

The Memorandum of Agreement, as of the date of its signing, ends the collective dispute concerning the validity of the agreement on salary increases in 2020, ends the negotiation stage of the collective dispute on salary increases in 2021 and exhausts the demands of the Representative Trade Union Organizations in this regard.

 

Legal basis: Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

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