CHANGES IN JSW’S MB. NEW CONFLICT IN THE AIR?

CEO of Jastrzębska Spółka Węglowa, Edward Szlęk resigned from the position yesterday. His duties will be temporarily taken by Józef Myrczek, who until now was the President of Supervisory Board (since 2010). Also, the company’s SB assigned two new members of the Management Board.

Edward Szlęk was JSW’s CEO since 27th April, after two months of vacancy at this position (former CEO Jarosław Zagórowski resigned on 17th February as a result of deep conflict with the labor unions which led to major financial losses for the company).

Besides Myrczek, Supervisory Board assigned also two new vice-presidents of MB: Aleksander Wardas (will be responsible for technical issues) and Tomasz Gawlik (who will take charge over strategy related subjects). Both are connected with the mining industry for many years.

Szlęk’s decision was officially motivated with health issues. Unofficially it could be result of last week’s announcement about company’s financial condition. If JSW would not decide to issue new stocks and would not reach an agreement with the labor unions (who already showed in case of J. Zagórowski that they could be a tough negotiations partner) in the case of freezing the benefits, the company would surely lose its liquidity in 2016.

Before being appointed for acting CEO, Myrczek already said that the financial condition of the company would require discussions with labor unions, since JSW have to balance the costs with revenues. The main target for 2nd half of 2015 is to decrease production costs from 325.09 PLN/t to 289 PLN/t. In total, company plans to save more than 1 billion PLN within a year.

Meanwhile, unions already wrote to Ministry of Treasury what would be MoT’s reaction to JSW’s statements. Their colleagues from Kompania Węglowa are already preparing themselves for striking at the beginning of October. Would JSW’s labor unions join them shortly after?

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