Decision of the Management Board to terminate the Company Collective Bargaining Agreement by notice

In reference to Current Report No. 19/2024 of 27 May 2024, the Management Board of PKP CARGO S.A. (“Company”, “PKP CARGO”) hereby reports that on 11 June 2024 the Company’s Management Board decided to unilaterally terminate by notice the Company Collective Bargaining Agreement for Employees Hired by the Establishments of PKP CARGO S.A. (“CCBA”) and the Memorandum of Agreement on Mutual Obligations of the Parties to the Company Collective Bargaining Agreement for Employees Hired by the Establishments of PKP CARGO S.A. entered into on 14 February 2005 (“Valentine’s Day Agreement”).

The decision was preceded by a proposal submitted to, and subsequently rejected by, the Trade Unions operating at PKP CARGO to enter into an agreement to terminate the CCBA and the Valentine’s Day Agreement with effect from 31 December 2024.

The CCBA and the Valentine’s Day Agreement will be terminated at the end of a 24-month notice period, which will expire on 11 June 2026.

The Management Board’s decision is one of the steps taken by the Management Board with a view to ensuring financial stability for the Company and improve its profitability as well as to regain PKP CARGO S.A.’s strong market position. It is another step taken by the Management Board on the path towards optimizing the Company’s cost area.

Legal basis:
Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council on Market Abuse.