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Coal Miner's Rescue: Workers Back Sweeping Benefit Cuts
13 Feb
Summary
- JSW employees approved suspending annual bonuses for 2025-2026.
- The move is crucial for JSW to secure 2.9 billion zlotys financing.
- Over 97% of JSW employees voted in favor of the restructuring deal.
Employees of Poland's state-controlled coal miner, JSW, have overwhelmingly supported a restructuring agreement that suspends certain worker benefits. In a referendum, more than 97% of employees voted in favor of suspending some annual bonuses for 2025 and 2026. JSW stated this decision is fundamental to its future and the preservation of jobs.
This agreement is a critical component of JSW's strategy to secure up to 2.9 billion zlotys in financing by the end of March. The struggling miner has faced immense pressure from weak demand, competition from cheaper imports, and high operational costs. The company's management has also proposed a pay cut, and the state assets ministry will seek shareholder approval to reduce supervisory board compensation.
JSW's financial situation has been precarious, with investments slashed and its 'rainy day' fund depleted from nearly 5 billion zlotys at the end of 2022 to approximately 100 million zlotys by October. The company incurred a significant loss of 2.9 billion zlotys in the first three quarters of last year. The broader cost-cutting plan includes selling non-core assets and merging mines to enhance efficiency.
