WARSAW: Trade unions at debt-ridden Kompania Węglowa (KW), Poland’s largest producer of coal, have reached a deal with managers that paves the way for the launch of a new Polish Mining Group (PGG) in May.
Failure to reach a deal could have meant miners not being paid their wages in May and the threat of bankruptcy for KW, whose debts total nearly PLN 8.5 billion. Unions agreed to suspend so-called “fourteenth salary” bonus payments for miners for two years. A deal was inked on Tuesday between Kompania Węglowa managers, PGG and 13 trade unions, all of which had to sign in order for the agreement to be valid.
The deal paves the way for the launch of the PGG group, which will take over Kompania Węglowa mines together with their employees. In 2015, KW extracted almost 26 million tons of coal, making it Poland’s largest producer in the sector. The company employs around 32,500 people.
