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JSW management board proposes agreement with trade unions up till 2015

Management Board of Jastrzębska Spółka Węglowa has made another attempt to reach an agreement with trade unions and declared its will to rise the basic payment by 2.8% since August this year. The lump sum payment of 1,2% of the basic remuneration could be paid in September.

Still the workers’ pay rise will depend on already implemented incentive scheme. In exchange the Management Board expects unionists to end the dispute concerning payments and the new work agreements. Trade unionists should also approve of pay rise system regulated by the above proposals in the period 2012-2015. The new work agreements should be dealt with individually. Joint unions’ protest committee has received the draft of the agreement in this matter.

- All suggested proposals reflect the workers payment expectations and ensure the above average  pay rise in relation to the real inflation rate. These are good schemes which rise the payments noticeably and what is more they shape the remuneration system  responsibly within the next three years – says Jarosław Zagórowski, President of the Management Board of JSW S.A. - The proposals have been presented bearing in mind all employees’ welfare. We presume that  trade unions aim at working out, together with the Management Board, the best but also realistic solutions when it comes to pay rise. The Board hopes that in the face of economic slowing down, falling prices if coking and steam coal, so in the hard times for the company, compromise will be aimed at - not confrontation.

The Board’s proposal is about regulating the remunerations matter in the longer perspective. Within the solution system proposed for years 2013 -2017  the Board suggests that the basic payment rise  in January given year, happen automatically by the inflation index assumed by the Budget.  In case inflation forecasted by Central Statistical Office is higher than stated in the law, the Board and trade unions will decide if and when additional lump sum - the difference between the inflation forecasted and real- would be paid.

- We assume that  trade unions will agree not only to end the dispute over the basic payment rise for this year but also for long term, comprehensive regulation of the remuneration rise till the end of 2015 with maintaining of the already implemented incentive scheme. Our intention is to work out the agreement within further negotiations and end the dispute over payments at least till 2015. Therefore in spite of the fact that we haven’t reached the common stand with trade unionists, as the company’s management, we invariably declare our readiness to further talks – said Jarosław Zagórowski.

 JSW workers earn best salaries in the business. In the period from January till April 1012 an average monthly remuneration amounted to PLN 7,187 gross, and is almost twice as high as an average remuneration in the enterprise sector. Apart from additional incentive and task-based bonuses, all employees will receive an award on account of profits in the total amount of PLN 130 million (an equivalent of a monthly gross remuneration), and a right to dividend from profit for 2011 on account of shares acquired free of charge.

In 2012, the company's payroll budget will increase by indexation. Since 2000, the amounts of remuneration paid to JSW employees have increased by more than 125%. The year 2011 itself brought a growth of 10.7%, with indexation at 4.3%. Apart from proposed by the Board rise of the basic payments , JSW has task based bonuses system. Since March 2012 company pays additional incentive for miners working with faces, panels and also performing reinforcement and liquidation works. What is more since April all the JSW emploees can receive task – based bonus. Thanks to additional incentive the worker’s remuneration can grow even by 12%.