Notification of occurrence of a collective labour dispute with the trade unions

Legal basis (selected in ESPI): Art. 56(1)(1) of the Public Offering Act – confidential information

The Management Board of PKP CARGO S.A. (“Company”, “PKP CARGO”) hereby informs that on 20 January 2015, in accordance with Art. 8 of the Act of 23 May 1991 on resolving collective disputes, the Company filed at the State Labour Inspectorate in Warsaw a notification of occurrence of a collective labour dispute with the trade union organization – the Federation of Trade Union of Polish Railways Employees (“FTUPRE”), acting in the Company.

By virtue of the letter of 13 January 2015 FTUPRE operating at the Company demanded that a number of postulates be fulfilled, setting a deadline to uphold and submit manner of execution.

The postulates formulated by the trade unions in the letter of 13 January 2015 concern, above all, payroll issues, i.e. increasing the daily rates for the purchase of preventive as well as regenerating and strengthening meals, implementation of an allocation allowance, and lump sum for delegations for specific jobs.

Due to the expiry on 19 January 2015 of the deadline for consideration of the request and provide a method for their implementation, the Company entered into labour dispute with FTUPRE arose with effect from 13 January of 2015. The Management Board of PKP CARGO will make every effort to resolve the dispute in a manner guaranteeing further steady growth of the Company.

The Management Board of PKP CARGO also informs that FTUPRE is not a party to the collective labour dispute between the Company and nine trade union organizations operating in the PKP CARGO, which was established with effect from 30 October 2014, of which the Company informed in the current report No. 63/2014 on 3 November 2014 and which the dispute is currently at the stage of mediation.

Legal basis: Art. 56 (1)(1) of the Act of 29 July 2005 on the public offering and the conditions of introducing financial instruments to the organized trading system and public companies (Journal of Laws of 2013, item 1382).