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JSW SAJSW in difficult talks with unions; decision on annual Miner's Day bonus remains uncertain
Listed coking coal group JSW is engaged in tough negotiations with trade unions over cost-cutting measures, and the management has not yet decided whether the traditional annual Miner's Day bonus will be paid this year, acting CEO Boguslaw Oleksy said during a conference on Wednesday.
JSW said that reaching an agreement with the social side is a key part of its restructuring plan, enabling changes to labour costs, employment organisation and pay rules.
"The talks are ongoing and very difficult. I still believe in the wisdom of our staff, and I believe that we will reach an agreement, but these are very difficult negotiations," acting CEO Oleksy told the press conference.
He said the talks focus on limiting the bonus, suspending the fourteenth salary and revising the method of calculating sick pay.
"These negotiations are extremely difficult because our expectations regarding labour cost reduction are high," Oleksy pointed out.
When asked whether JSW would pay its employees the annual Miner's Day bonus, he replied that it is a "difficult question".
"We are conducting a liquidity study on an ongoing basis and, given that we have had negative cash flows for a long time (...) I believe that at this point, the decision to pay is highly risky. Despite the fact that other companies will be paying it, including the Polish mining group PGG, we identify this as a high risk and have not yet made a decision," Oleksy said.
pel/ nl/ ao/
