Friendly, major employer

Thanks to employees who identify with JSW's mission and have a decisive say in its success, the Company builds its image as an employer

JSW is well-known as the largest employer in the region. Out of concern for the local community, JSW plays a key role in providing a safe and stable workplace to employees. We are aware of the fact that people, their knowledge, skills and competences are the greatest capital of any company, which is why fostering the best conditions for professional and personal development is part of JSW's strategy. Workplace safety, ensured by maintaining the strictest and latest standards for protecting against hazards as well as by having technically advanced mines, is of fundamental importance.

JSW makes every effort to ensure that all employees possess the knowledge necessary to perform their tasks and that, by developing skills, they represent a high level of motivation, effectiveness and use of their potential so that the tasks they perform support our business objectives not just today but also in the future. The Company also makes it possible to gain new professional experience within its structures, while the diversity of its processes is conducive of changing career paths. JSW stands for years of learning and experience, which is why we appreciate experienced employees who pass the practical knowledge gained on the job on to their younger colleagues.

Effective coal mining with the use of modern techniques and equipment requires a highly qualified workforce with appropriate experience and qualifications, which is why JSW places particular emphasis on the development of human potential. When we think about employee development, we consider two perspectives - that of a company planning operational changes in the light of a changing business environment and that of an employee who has aspirations and willingness to learn and become better.The key role in defining the approach to managing human resources is played by JSW's Strategy incorporating JSW Group subsidiaries for years 2018-2030. The approach to employee matters was also defined in the Sustainable Development Strategy 2017-2020. HR regulations set out hiring policy tasks and directions. On this basis, JSW pursues its strategic objectives aligned with being a socially responsible business, including:

We recruit the best people in accordance with our needs – the aim is to optimally select the Company's employees in terms of needs resulting from personnel turnover, required qualifications and resources available on the local job market.

We rationally manage resources – aimed at ensuring an optimal use and allocation of employee resources to perform tasks at JSW's facilities.

We develop employees in key areas – with the aim of ensuring a high level of employee competences, making it possible to pursue business objectives in a stable manner, including strong leadership competences among the management.

 

We operate consistently – this objective will ensure consistency and harmony across all HR processes at JSW as well as their strategic fit.

IMPACT OF THE COVID-19 PANDEMIC ON WORK ORGANIZATION IN JSW

Caring for the safety and health of its employees, JSW prepared and implemented rules supporting containment of the spread of the epidemic in the area of work organization. Among other things, as of 23 March 2020, a three-shift work system was temporarily introduced in place of the four-shift one, to limit the contacts of employees working different shifts to the maximum. In addition, a temporary ban on unauthorized access to JSW’s facilities was imposed, the work of registry offices was limited, trips to training, courses, conferences, etc. were suspended.  Control of sanitary conditions in JSW units was intensified and room disinfection was introduced, disinfection sprinklers were installed and JSW units were equipped with bactericidal and virucidal agents. In addition, guidelines were prepared regarding social-distancing or the number of people that may remain in a single room, and the possibility of remote work was introduced for administrative staff. Remote work is recommended to employees whose scope of duties and entrusted tasks can be performed using electronic means of communication. Since its introduction, remote work became an effective tool in preventing the spread of COVID-19.

PROJECT, ACTIVITIES AND INITIATIVES

In 2018 a module was launched in the employee portal. On top of access to their pay slips employees have an ability to view their HR and pay-related data. In 2020 work was conducted to give employees the possibility of submission of electronic applications under the Company Social Benefit Fund, presentation of unlimited absences and presentation of the working clothes range for collection. The work on these elements was completed and they are scheduled to be made available to employees in Q1 2021. Further development of the HR and payroll module is planned in 2021.

Starting from 2017, every year JSW conducts in the form of a questionnaire a  study of organizational culture and employee satisfaction. The survey is carried out in all JSW organizational units. The aim of the study is to learn the opinions of the employees on the work environment and the tasks they perform. The results of the study are used to identify the areas in the company’s activity that require improvement, if any. In the questionnaire employees express their opinions on, among others, work organization, employee development, relations with colleagues and managers, mobbing and discrimination, and compensation rules.

RECRUITMENT

There are specific rules for recruiting new employees in most of the Group companies. The document laying down these principles in the parent company is entitled Recruitment Procedure in Jastrzębska Spółka Węglowa S.A. The selection of new employees in the Group is conducted if there is a vacancy in an existing position or if there is a need to set up a new work position. The search for employees who meet the specific criteria is an open and competitive search. After conducting a Group company’s internal procedures, the pertinent announcements are published depending on the internal regulations on its website, in a local internet service, in the press or they apply other methods for reaching prospective job candidates. One popular method of recruitment in the Group is also to search for employees directly from the schools with which Group companies have entered into agreements to hire graduates, among other things. In 2020, JZR launched the program entitled JZR Development aiming to recruit new employees for the newly opened overhaul departments.

CAREER PATH MANAGEMENT

Training management plays a crucial role in this process. Employees have an opportunity to raise their professional qualifications by participating in post-graduate studies, trade conferences, seminars and symposiums as well as in training sessions held by external entities. Staff turnover and headcount structure measured by age are among the ratios monitored on an ongoing basis. It makes it possible to identify, with due notice, the competencies which will need to be replaced in the nearest future. Consequently, employees are prepared with due notice for replacing retiring workers. One of the methods for managing career paths is also conducted in some Group companies is the employee competence assessment. It makes it possible to identify on an ongoing basis the competences needed to be developed at a given position, or to look for employees whose level of competence development poises them to be advanced.

TRAINING AND DEVELOPMENT

Group company employees can raise their professional qualifications by participating in the training sessions and courses administered by the employer. Detailed principles of raising employee qualifications are described in the companies’ internal documents such as policies, rules and regulations and directives. The Group runs continuous efforts regarding employee development programs. The education of managers is also important in the Group, as the skills of the people managing teams are instrumental in the success of the initiatives undertaken by the Group. We strive for persons holding managerial positions in the firm to have a firm grasp on their role and be aware of the knowledge and skills required to discharge this duty properly.

Many Group companies cooperate with high schools and universities, chiefly for apprenticeships as possible employment guarantees. Such cooperation is undertaken by, among others, JSW, CLP-B, JSK or JSU. JSW IT Systems has in place Graduate Apprenticeship Regulations, under which the Apprenticeship Program operates. JSW formed a special scholarship program for pupils studying on a daily basis in schools providing an education in mining occupations; they are covered by the provisions of the memorandums of understanding executed by JSW in connection with collaboration in respect of organizing the practical teaching of the profession in the form of practical lessons or professional practices for pupils and employment guarantees in JSW for graduates. The JSW Management Board awards scholarships to pupils attending mining classes in schools after they fulfill the conditions defined by the scholarship rules and regulations.

Group companies also cooperate with local labor offices, and various types of institutions - one example is CLP-B which is conducting constant cooperation with the Faculty of Natural Sciences in the Institute of Earth Science at the University of Silesia in Katowice. Several years of cooperation has borne fruit in the form of signing a memorandum of agreement on phasing in an implementation directorate. The company also cooperates with the Cracow Technical University’s Faculty of Engineering and Chemical Technology on the complementary nature of research in the areas in which CLP-B does not have the appropriate equipment or knowledge. In addition, the company collaborates in a similar fashion with the Central Mining Institute, or the Silesian University.

 

NUMBER OF TRAINING HOURS

2020

2019

2018

Per one JSW employee (in hours)

10,21

29,10

 16,8

Average per one Group employee (in hours

11,05

15,00

 8,1

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As at 31 December 2020, the Group had 30,593 employees while as at 31 December 2019 the headcount was 30,629. At the end of 2020, the Parent Company had 21,973 employees and in 2019 it employed 22,433 persons. In 2020, JSW optimized the headcount as a result of temporary suspension of new recruitments to supplement natural employee departures. The Group’s average headcount in 2020 was 30,674 employees. It was up 1,234 employees compared to the same period of the previous year. The average headcount in the Parent Company in 2020 was 22,302 persons. It was 264 persons higher than in the previous year.

ITEM 2020 2019
WOMAN MAN TOTAL WOMAN MAN TOTAL
HEADCOUNT STRUCTURE BY TYPE OF CONTRACT
Employment contract, indefinite term 3 101 24 359 27 460 3 153 24 687 27 840
Employment contract, definite term 515 2 448 2 963 412 1 840 2 252
Employment contract, trial period 32 138 170 111 426 537
HEADCOUNT STRUCTURE BY NATURE OF CONTRACT
full time 3 620 26 911 30 531 3 653 26 916 30 569
part time 28 28 34 62 23 37

Civil law agreement

 164 654 818 149 597 746
HEADCOUNT STRUCTURE BY POSITION
White-collar (no-manual work positions) 58 3 063 3 121 53 3 054 3 107
Blue-collar positions - 16 875 16 875 - 16 876 16 876
White-collar positions, on the surface 2 330 1 767 4 097 2 334 1 765 4 099
Blue-collar positions, on the surface 1 260 5 240 6 500 1 289 5 258 6 547
HEADCOUNT STRUCTURE BY AGE
Up to 30 years of age 341 4 384 4 725 355 4 906 5 261
From 31 to 40 years 803 11 215 12 018 810 11 158 11 968
From 41 to 50 years 1 050 7 661 8 711 1 091 7 077 8 168
Over 50 years of age 1 454 3 685 5 139 1 420 3 812 5 232
TOTAL 3 648 26 945 30 593 3 676 26 953 30 629
of which JSW
HEADCOUNT STRUCTURE BY TYPE OF CONTRACT
Employment contract, indefinite term 2 055 19 847 21 902 2 118 20 264 22 382
Employment contract, definite term 16 55 71 22 29 51
Employment contract, trial period - - - - - -
HEADCOUNT STRUCTURE BY NATURE OF CONTRACT
full time 2 063 19 897 21 960 2 133 20 285 22 418
part time 8 5 13 7 8 15
TOTAL 2 071 19 902 21 973 2 140 20 293 22 433
FLUCTUATION OF EMPLOYEES
Total number of new employees 183 1 255 1 438 517 2 091 2 608
Total number of employee departures 218 1 306 1 524 183 1 087 1 270

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Table. Number of employees by region:

ITEM 2020 2019
Śląskie Voivodship  another  Total Śląskie Voivodship another Total
GROUP
Employment contract, indefinite term 27 085 377 27 462 27 496 344 27 840
Employment contract, definite term 2 836 125 2 961 2 076 176 2 252
Employment contract, trial period 163 7 170 519 18 537
Total 30 084 509 30 593 30 091 538 30 629
of which JSW
Employment contract, indefinite term 21 887 16 21 902 22 372 10 22 382
Employment contract, definite term 69 2 71 50 1 51
Employment contract, trial period
TOTAL 21 956 17 21 973 22 422 11 22 433

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Group company employees are mostly residents of the municipalities, counties and towns and cities where Group companies are based. Hence also managers of these companies come from the local communities

This is well illustrated by the fact that in 2020 one out of three Group managers (33.6%) was resident in the township, county, town or city where the given Group company is based (in the case of JSW the figure was 14.8%).

Table. Percentage of managers recruited from the local community, understood as residing in the municipalities or poviats in which the Group's plants are located

ITEM 2020 2019 2018
CAPITAL GROUP 33,6% 55,33% 52,21%
including JSW 14,8% 59,68% 60,71%

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New employments (excluding movements between Group companies / within JSW)

Tabela. New employments (excluding movements between Group companies / within JSW)

ITEM 2020 2019
Woman Man Woman Man Woman Man
GROUP
age under 30 48 431 479 109 979 1 088
age 30-50 111 697 808 297 797 1 094
age over 50 24 127 151 111 315 426
TOTAL 183 1 255 1 438 517 2 091 2 608
Śląskie Voivodship 176 1 181 1 357 499 1 949 2 448
another voivodship 7 74 81 18 142 160
% of new employees in the total number of employees 0,60 4,10 4,70 1,69 6,83 8,51
of which JSW
age under 30 2 46 48 12 29 41
age 30-50 18 92 110 36 17 53
age over 50 2 16 18 3 4 7
TOTAL 22 154 176 51 50 101
Śląskie Voivodship 20 152 172 50 50 100
another voivodship 2 2 4 1 - 1
% of new employees in the total number of employees 0,10 0,70 0,80 0,23 0,22 0,45

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Employee departures (excluding movements between Group companies / within JSW):

ITEM 2020 2019
Woman Man Total Woman Man Total
GROUP
age under 30 13 199 212 23 233 256
age 30-50 50 564 614 60 518 578
age over 50 155 543 698 100 336 436
TOTAL 218 1 306 1 524 183 1 087 1 270
Śląskie Voivodship 208 1 184 1 392 164 945 1 109
another voivodship 10 122 132 19 142 161
% of leaving employees in the total number of employees 0,71% 4,27% 4,98% 0,60% 3,55% 4,15%
of which JSW
age under 30 1 17 18 1 29 30
age 30-50 8 314 322 7 280 287
age over 50 86 256 342 30 138 168
TOTAL 95 587 682 38 447 485
Śląskie Voivodship 92 573 665 37 445 482
another voivodship 3 14 17 1 2 3
% of leaving employees in the total number of employees 0,43% 2,67% 3,10% 0,17% 1,99% 2,16%

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Number of employees who took parental leaves:

ITEM 2020 2019
Woman Man Total Woman Man Total
GROUP 121 183 304 89 61 150
w tym JSW 70 8 78 52 6 58

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Number of employees who returned to work after their parental leaves

ITEM 2020 2019
Woman Man Total Woman Man Total
GROUP 69 178 247 40 54 94
of which JSW 44 5 49 27 6 33

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Rate of retention after the parental leave (percentage of returns to work after the parental leave)

ITEM 2020 2019
Woman Man Total Woman Man Total
GROUP 57,02% 97,27% 81,25% 44,94% 88,52% 62,67%
of which JSW 62,86% 62,50% 62,82% 51,92% 100,00% 56,90%

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Remuneration

Different employee remuneration principles apply in Group companies. The average monthly salary in Group companies in 2020 ranged from PLN 4,183.94 to PLN 13,674.78. The average monthly salary in the Parent Company (net of profit sharing bonus) is shown in the diagram below (in PLN):

chart-52

*Average monthly salary in 2018, in the amount of PLN 10,614.72, includes the back payment of benefits for 2016, i.e. the 14th salary and the free coal allowance. Net of the aforementioned back payment of benefits and allowances, the average monthly salary is PLN 9,642.81

RULES AND REGULATIONS CONCERNING REMUNERATION

The remuneration of most JSW employees is paid on the basis of company-level collective bargaining agreements (“CCBA”) terminated effective as of 1 January 2010. Employees who started their employment after 15 February 2012 are remunerated according to the principles defined in new employment contracts. Pursuant to internal regulations, for their work employees of JSW receive remuneration composed of a base salary rate, a bonus or a piecework surplus, the Miner’s Charter (seniority allowance), a functional allowance (e.g. a wall-face allowance), and an allowance for work in onerous, dangerous and hazardous conditions. Hiring employees for the appropriate jobs and awarding a category of rank are done on the basis of the Job Valuator. In addition to the aforementioned salary components, JSW’s employees are entitled to such additional benefits as: annual Miner’s Day bonus, Miner’s Day cash equivalent, additional annual bonus – the so-called 14th salary, free coal allowance, jubilee awards, retirement and disability severance pay, holiday travel costs refund allowance (the so-called Miner’s Charter Ticket), and school aids allowance. Additionally employees may receive an incentive bonus and an OHS bonus.

Under the new employment contracts, employees are entitled to remuneration composed of a basic salary and period of service allowance. In addition to the above salary components, employees employed under new contracts, are entitled to the following additional benefits: annual Miner’s Day bonus, additional annual bonus – the so-called 14th salary, free coal allowance, retirement and disability pension severance pay, holiday travel costs refund allowance (the so-called Miner’s Charter Ticket), and school aids allowance. Additionally employees may receive an incentive bonus and an OHS bonus.

The level of the average monthly salary growth rate in 2020 relative to 2019 was driven by the Memorandum of Agreement concluded on 2 July 2019 between the JSW Management Board and JSW Representative Trade Union Organizations under which JSW employees were paid cash bonuses on 15 July 2019.

As regards the risks related to remuneration, it should be noted that the market situation in 2021, i.e. the inflation rate and increase of remuneration in other companies, may lead to employee claims and consequent trade union demands for pay increase.

The mutual Employer–Employee relationships are subject to national regulations and internal law. Some of them may not be adapted to current market conditions and could be a major difficulty for the proper operation of the Parent Company. None of the JSW mines or the Production Support Unit and Management Board Office has a company-level collective bargaining agreement in place. The agreements were terminated or, like in the case of KWK Budryk, the employer was obliged, pursuant to Article 2418 § 1 of the Labor Code, to apply it for one year from the day on which the mine became part of JSW structures. Employee remuneration principles in KWK Knurów-Szczygłowice arise from the Memorandum of Agreement concluded in Kompania Węglowa in 2004. In spite of that, the principles of the aforementioned CCBA and Memorandum of Agreement are applied in JSW. The lack of internal labor law (CCBA) forces the Employer to negotiate and implement the company-level collective bargaining agreement. The CCBA project proposed by the Employer, which includes the provisions of the memorandums of agreement of 23 February and 16 September 2015, was criticized by the trade unions and employees who became familiar with the project after it was published on the ZZ “Jedność” website. Negotiations regarding the company-level collective bargaining agreement were resumed at the beginning of 2016. As a result of the objections voiced by ZZ “Jedność” as regards satisfying the representativeness conditions by certain trade unions, the negotiations were discontinued. In March 2017, the District Court decided that there was representativeness of ZOK NSZZ “Solidarność” JSW S.A., ZZ “Kadra” Pracowników JSW SA, Federacja ZZG JSW S.A. Currently, the works on CCBA have been suspended due to the discussions held at the Ministry level on the development of an Inter-Company Collective Bargaining Agreement for the mining sector.

DEFINED BENEFIT OBLIGATIONS

In accordance with the provisions of labor law, the Group pays employee benefits on account of the following:

  • post-employment benefits: retirement or disability severance pays, equalization disability benefits, death benefits,
  • other long-term employee benefits: jubilee awards,
  • other employee benefits: unused holiday leaves.

In its statement of financial position, the Group recognizes the commitment to pay the above benefits in the amount equal to the present value of the liability as at the end of the reporting period, taking into account actuarial gains and losses. The amount of the post-employment benefit liability in the form of defined benefit plans (retirement and disability severance awards, adjustment disability benefits, write-offs for the Company Social Benefit Fund for old-age and disability pensioners) and jubilee awards is calculated by an independent actuarial advisory company using the projected unit benefit method, until the expiration of this liability. The details of the benefit amounts are presented in Note 7.14. of the consolidated financial statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2020.

Employees have access to opportunities for raising their professional qualifications by attending post-graduate studies, industry conferences, seminars or symposiums as well as training organised by external entities and by participating in training and courses organised by the employer.

Detailed rules for accessing opportunities for raising qualifications are described in internal documents such as policies, rules and regulations. The Group is constantly engaging in the area of employee development programs, and management education is also of importance because the success of the Group's initiatives depends on the competences of its team leaders. We strive to ensure that people holding managerial positions know their roles well and have the knowledge and skills necessary to perform them properly.

JSW Group is investing considerable amounts in research and development as it aims to deploy innovative solutions. R+D+I projects necessitate the acquisition and development of competences for highly-qualified employees and cooperation between engineering personnel and the academia. These are highly specialised training courses but also participation in scientific conferences and events. Research projects with multi-million budgets also necessitate the development of managerial skills for managing them, managing people, managing time and managing the widely-defined change. Hence the decision to launch JSW Group's Project Management Academy in mid-2019, making it possible to not only develop the required competences but also transforming JSW Group into a "project-based organisation," while streamlining project and investment rules across the Group. For the same reason, JSW Group finances post-graduate studies that develop the managerial skills of its executives (e.g. MBA).