Jastrzębska Spółka Węglowa’s stocks bounced up by 27% after the company announced that agreement with the labor unions was finally reached. Recently JSW was trying to limit the payment benefits for the employees and after long and exhausting discussions the three main unions: Solidarność, Kadra and Federacja decided to meet JSW’s Board in half-way.
According to the agreement, from 2016 JSW will stop financing 14th wage and coal allowances for all employees and will also limit the Feast of St. Barbara benefits. Agreement was signed for 3 years and is suppose to bring 2 billion PLN of savings.
The consensus reached between JSW and the three main labor unions is loudly criticized by the other unions, i.a. Sierpień 80, which is afraid that compromising with the Board in the subject of limiting the payment benefits will inevitably lead to similar demands from the boards of other state owned coal mining companies.
JSW’s troubles deepened when ING decided to call for bond redemption (26 million PLN and 12 million USD). On Tuesday 17th September Sierpień 80 organized in front of bank’s headquarters in Katowice a small protest against the actions taken by the ING towards JSW.