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.

HR MANAGEMENT POLICY

Effective coal mining using modern techniques and equipment necessitates having qualified employees who have the appropriate experience. For that reason JSW attaches particular importance to cultivating human potential.

The JSW Strategy, including the JSW S.A. Group’s Subsidiaries plays an important role in the approach to HR management. The approach to employee affairs has also been defined and laid out in the Sustainable Development Strategy. In turn, the HR Strategy lays down the tasks for employment policy and demarcates the directions of its action. Under this strategy the Company is pursuing strategic objectives forming part of its policy as a company espousing the principles of corporate social responsibility.

We hire the best in line with our needs – The objective is to ensure the optimum selection of employees for the needs following from staff fluctuation, qualification requirements and available resources in the local labor market.

We manage resources efficiently – The objective is to ensure the optimum utilization and allocation of human resources to execute tasks.

We are developing in key areas – The objective is to ensure a high level of employee competence facilitating stable furtherance of business objectives, including a high level of leadership competence among employees in managerial positions.

 

We act consistently – The objective is to ensure consistency and uniformity of all HR processes and their compliance with the strategy.

IMPACT OF THE COVID-19 PANDEMIC ON WORK ORGANIZATION IN 2021

Caring for the safety and health of its employees, JSW prepared and implemented rules supporting containment of the spread of the epidemic in work organization, starting with health-related measures, to guidelines relating to maintaining a safe distance or the number of people in a room, while the remote work option was offered to administrative employees. Remote work in the Parent Company is allocated to employees whose scope of duties and entrusted tasks can be performed using electronic means of communication, i.e. administrative employees most frequently. Since its introduction, remote work became an effective tool in preventing the spread of COVID-19, which focuses primarily on protecting the health of employees and their families.

PROJECT, ACTIVITIES AND INITIATIVES

Starting from 2017, JSW conducts a study of organizational culture and employee satisfaction in the form of a questionnaire every year. The survey is carried out in all JSW organizational units. The aim of the study is to learn the opinions of the employees regarding 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.

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 scheduled for 2021 on the HR and payroll module was performed and commissioned. Further development of the employee portal is planned in 2022. The Parent Company entered into an agreement in 2021 with the University of Economics in Katowice on cooperation regarding the comprehensive strengthening of students’ professional development through mentorship and student support during the process of preparing their diploma-linked thesis

RECRUITMENT

There are specific rules for recruiting new employees in most of the Group companies. In the Parent Company the document laying down these rules is called the Recruitment Procedure in Jastrzębska Spółka Węglowa S.A. The search for candidates who meet the specific criteria is an open and competitive process. 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. The Group company doing business as JZR launched the program entitled JZR Development Program whose purpose was to source new employees to newly-opened renovation departments.

CAREER PATH MANAGEMENT

Career path management in the Group aims to satisfy the organization’s needs in respect of the consequences transpiring at various stages of one’s career. 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 sufficient lead time the competencies which will need to be replaced. Accordingly, employees to fill in for people retiring are prepared sufficiently earlier. One of the methods for managing career paths is also conducted in some subsidiaries 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 language courses administered by the employer. Detailed principles of raising employee qualifications are described in the companies’ internal documents such as policies, rules and regulations, directives or training plan. The employees of the Group’s companies are directed to participate in various forms of enhancing their professional qualifications such as scholastic programs (post-graduate courses of study) and extrascholastic programs (training, courses, workshops and conferences, etc.). Enhancing professional qualifications is related to facilitating the process of gaining knowledge, skills, qualifications, obtaining or verifying certification and enhancing the professional skills of employees. The Group runs continuous efforts regarding employee development programs. 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 well as possible employment guarantees. JSW, CLP-B, JSK and JSU are among the entities participating in this cooperation. JSW IT Systems has in place the Graduate Apprenticeship Regulations, under which the Apprenticeship Program operates. JSW has 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. In addition to apprenticeships Group companies also cooperate with local labor offices.

NUMBER OF TRAINING HOURS

 2021

2020

2019

2018

Per one JSW employee (in hours)

 10

10,21

29,10

 16,8

Average per one Group employee (in hours

 10

11,05

15,00

 8,1

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As at 31 December 2021, the Group had 31,916 employees while as at 31 December 2020 the headcount was 30,593. At the end of 2021 JSW had 23,119 employees versus 21,973 employees in 2020. The Group’s average headcount in 2021 was 30,560 employees, which was down by 114 employees compared to 2020. The average headcount in the Parent Company in 2021 was 22,103 persons. It was 199 persons below the previous year.

In 2021 the JSW Management Board decided to transfer free of charge a portion of JSW’s enterprise in the form of the “Jastrzębie III” Mining Area in KWK “Jastrzębie-Bzie” to Spółka Restrukturyzacji Kopalń S.A. As a result of the signed agreement, under the procedure contemplated by Article 8a of the Act of 7 September 2007 on the Functioning of the Hard Coal Mining Industry, as amended, the Parent Company transferred 2,148 employees (including 1,234 employees of PGG) to SRK as of 1 January 2022. On the transfer date, these people were employees of KWK Jastrzębie–Bzie.

ITEM 2021 2020
WOMAN MAN TOTAL WOMAN MAN TOTAL
HEADCOUNT STRUCTURE BY TYPE OF CONTRACT
Employment contract, indefinite term 3 380 25 660 29 040 3 101 24 359 27 460
Employment contract, definite term 451 2 121 2 572 515 2 448 2 963
Employment contract, trial period 29 275 304 32 138 170
HEADCOUNT STRUCTURE BY NATURE OF CONTRACT
full time 3 829 28 015 31 844 3 620 26 911 30 531
part time 31 41 72 28 28 34

Civil law agreement

 172 613 785 164 654 818
HEADCOUNT STRUCTURE BY POSITION
White-collar (no-manual work positions) 62 3 316 3 378 58 3 063 3 121
Blue-collar positions 0 17 633 17 633 - 16 875 16 875
White-collar positions, on the surface 2 495 1 792 4 287 2 330 1 767 4 097
Blue-collar positions, on the surface 1 303 5 315 6 618 1 260 5 240 6 500
HEADCOUNT STRUCTURE BY AGE
Up to 30 years of age 337 3 948 4 285 341 4 384 4 725
From 31 to 40 years 844 11 376 12 220 803 11 215 12 018
From 41 to 50 years 1 076 8 920 9 996 1 050 7 661 8 711
Over 50 years of age 1 603 3 812 5 415 1 454 3 685 5 139
TOTAL 3 860 28 056 31 916 3 648 26 945 30 593
of which JSW
HEADCOUNT STRUCTURE BY TYPE OF CONTRACT
Employment contract, indefinite term 2 248 20 837 23 085 2 055 19 847 21 902
Employment contract, definite term 15 19 34 16 55 71
Employment contract, trial period - - - - - -
HEADCOUNT STRUCTURE BY NATURE OF CONTRACT
full time 2 255 20 852 23 107 2 063 19 897 21 960
part time 8 4 12 8 5 13
TOTAL 2 263 20 856 23 119 2 071 19 902 21 973
FLUCTUATION OF EMPLOYEES
Total number of new employees 452 2 451 2 903 183 1 255 1 438
Total number of employee departures 258 1 378 1 636 218 1 306 1 524

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Table. Number of employees by region:

ITEM 2021 2020
Silesian Voivodship another  Total Silesian Voivodship another Total
GROUP
Employment contract, indefinite term 28 594 440 29 034 27 085 377 27 462
Employment contract, definite term 2 448 129 2 577 2 836 125 2 961
Employment contract, trial period 296 9 305 163 7 170
Total 31 338 578 31 916 30 084 509 30 593
of which JSW
Employment contract, indefinite term 23 072 13 23 085 21 887 16 21 902
Employment contract, definite term 33 1 34 69 2 71
Employment contract, trial period - - -
TOTAL 23 105 14 23 119 21 956 17 21 973

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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 illustrated well by the fact that in 2021 one of every four Group managers (24.8%) was a resident in a township, county or city in which the registered office of a given Group company is domiciled (in the case of JSW the figure was 11.9%).

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

ITEM 2021 2020
Woman Man Woman Man Woman Man
GROUP
age under 30 75 634 709 48 431 479
age 30-50 198 1 470 1 668 111 697 808
age over 50 179 347 526 24 127 151
TOTAL 452 2 451 2 903 183 1 255 1 438
Śląskie Voivodship 441 2 333 2 774 176 1 181 1 357
another voivodship 11 118 129 7 74 81
% of new employees in the total number of employees 1,42 7,68 9,10 0,60 4,10 4,70
of which JSW
age under 30 10 66 76 2 46 48
age 30-50 46 848 894 18 92 110
age over 50 137 190 327 2 16 18
TOTAL 193 1104 1297 22 154 176
Śląskie Voivodship 192 1102 1294 20 152 172
another voivodship 1 2 3 2 2 4
% of new employees in the total number of employees 0,83 4,78 5,61 0,10 0,70 0,80

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

ITEM 2021 2020
Woman Man Total Woman Man Total
GROUP
age under 30 23 208 231 13 199 212
age 30-50 71 664 735 50 564 614
age over 50 164 506 670 155 543 698
TOTAL 258 1 378 1 636 218 1 306 1 524
Śląskie Voivodship 244 1 262 1 506 208 1 184 1 392
another voivodship 14 116 130 10 122 132
% of leaving employees in the total number of employees 0,81 4,32 5,13 0,71 4,27 4,98
of which JSW
age under 30 1 13 14 1 17 18
age 30-50 10 353 363 8 314 322
age over 50 71 198 269 86 256 342
TOTAL 82 564 646 95 587 682
Silesian Voivodship 81 564 645 92 573 665
another voivodship 1 0 1 3 14 17
% of leaving employees in the total number of employees 0,35 2,44 2,79 0,43 2,67 3,10

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Number of employees who took parental leaves:

ITEM 2021 2020
Woman Man Total Woman Man Total
GROUP 118 174 292 121 183 304
w tym JSW 58 4 62 70 8 78

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Number of employees who returned to work after their parental leaves

ITEM 2021 2020
Woman Man Total Woman Man Total
GROUP 55 168 223 69 178 247
of which JSW 29 4 33 44 5 49

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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 46,61% 96,55% 76,37% 57,02% 97,27% 81,25%
of which JSW 50,00% 100,00% 53,23% 62,86% 62,50% 62,82%

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PAYROLL

Different employee remuneration principles apply in Group companies. The average monthly salary in Group companies in 2021 ranged from PLN 4,446.83 to PLN 13,553.52. 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 backpayment of benefits for 2016, i.e. the 14th salary and the free coal allowance. Net of the aforementioned backpayment 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 with effect 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, employees of JSW receive remuneration for their work 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 (referred to as the 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 JSW Management Board’s decision of 28 April 2021 on implementing a 3.4% base pay rate raise as of July 2021 shaped the level of the average monthly salary growth rate in 2021 relative to 2020. Moreover, an Agreement between the JSW Management Board and representative trade union organizations in JSW was signed on 13 September 2021. According to this agreement, new base pay rate tables including an increase of 1.6% were rolled out as of September 2021. In addition, a one-time bonus was paid to JSW employees in October 2021.

As regards the risks related to remuneration, it should be noted that the market situation in 2022, i.e. the inflation rate leading to a decrease in the real value of remuneration has prompted the trade unions to ask the JSW Management Board for a pay raise. After the day ending the reporting period, i.e. 28 January 2022, an Agreement between the JSW Management Board and representative trade union organizations was signed. According to this agreement, new base pay rate tables including an increase of 10% were rolled out in JSW as of January 2022. At the same time, the value of preventive meals was increased from PLN 21 to PLN 30.

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. Under its cooperation with the Representative Trade Union Organizations JSW steadily strives to unify the remuneration system across JSW through the Agreement executed on the basis of Article 9 of the Labor Code. There is not a binding CCBA in any of the JSW mines, the Production Support Department and the Management Board Office. The agreements were terminated or, as 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 that mine became part of JSW. 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 Agreement are applied in JSW. The absence of internal labor law (CCBA) makes the Employer determined to negotiate and implement a CCBA. The draft CCBA 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 reviewed the draft after it was published on the ZZ “Jedność” website. In early 2016 negotiations on the CCBA were resumed. As a result of the objections voiced by ZZ “Jedność” regarding the fulfilment of the representation conditions by certain trade unions, the negotiations were suspended. In March 2017, the District Court ruled that the following trade unions, i.e. ZOK NSZZ “Solidarność” JSW, ZZ “Kadra” Pracowników JSW and Federacja ZZG JSW fulfilled the representation conditions. Currently, the work on CCBA has been suspended due to the discussions held at the Ministry level on drafting 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 by virtue 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 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 2021.

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.