WARSAW, Feb 13 (Reuters) - Employees of Polish state-controlled coal miner JSW backed an agreement between trade unions and the company to suspend some worker benefits as part of a restructuring plan,
JSW Employees Approve Suspension of Benefits Amid Restructuring
JSW's Restructuring and Employee Vote
WARSAW, Feb 13 (Reuters) - Employees of JSW backed an agreement between trade unions and the company to suspend some worker benefits as part of a restructuring plan, the Polish state-controlled coal miner said on Friday.
Details of the Agreement
The agreement, which would suspend the payment of some annual bonuses for 2025 and 2026, is part of JSW's efforts to obtain up to 2.9 billion zlotys in financing by the end of March, needed to keep the struggling miner afloat.
Financial Implications
The move is expected to save around 1.2 billion zlotys ($337.8 million) in 2026-2027, the company said.
Company's Cost-Cutting Strategy
"The savings are slightly higher than we estimated," Erste Group analyst Jakub Szkopek told Reuters. He added that the company could now use mining restructuring laws to cut between 3,000 and 4,000 jobs, likely by the middle of 2026.
JSW said more than 97% of employees voted for the deal in a referendum. It called the decision "fundamental" for its future and the protection of jobs.
The company's management is also seeking pay cuts for its members, while the state assets ministry will seek a shareholder vote to reduce the pay of the supervisory board.
The European Union's largest producer of coking coal has been under pressure amid weak demand, competition from cheaper imports and high operational costs.
JSW has already slashed investments and nearly exhausted its rainy day fund, which has shrunk from nearly 5 billion zlotys at the end of 2022 to around 100 million zlotys in October. It booked a loss of 2.9 billion zlotys in the first three quarters of last year.
JSW's broader cost-cutting plan aims to sell non-core assets and merge mines to improve efficiency.
Negotiations over the agreement lasted for months, complicated by a fragmented structure of employee representation, which counts some 80 trade unions.
($1 = 3.5529 zlotys)
(Reporting by Marek Strzelecki, Alicja Surdy and Rafal Nowak, editing by Milla Nissi-Prussak and Anil D'Silva)
