Notice of the emergence of a collective dispute with trade unions
Legal grounds (selected in ESPI): Article 56 Section 1 Item 1 of the Act on Offering
The Management Board of PKP CARGO S.A. (“Company”, “PKP CARGO”) hereby reports that on 8 July 2015, pursuant to Article 8 of the Act of 23 May 1991 on Resolving Collective Disputes, the Company filed with the National Labor Inspectorate in Warsaw a notice of the emergence of a collective dispute with the trade unions operating in the Company.
By letter dated 2 July 2015, four trade union organizations operating in the Company requested the implementation of their demands pertaining to increases in employee compensation, setting a five-day time limit, expiring on 7 July 2015, for such implementation.
The demands put forward by the trade unions in their letter of 2 July 2015 concern the following issues:
1. Introduction of increases in employee compensation effective as of 1 July 2015 by way of an increase in base salary by PLN 250 for all employees receiving their remuneration under the Collective Bargaining Agreement (“CBA”) who were employed in PKP CARGO as at 1 July 2015;
2. For employees of PKP CARGO receiving their remuneration on a fixed rate basis in accordance with the relevant Resolution of the Management Board, a change in the base rate for the fourth quarter of 2014,
where the consequence of the refusal to fulfill these demands will be entry into a collective dispute in respect of all the aforedescribed demands.
According to the Company’s estimates, the annual cost of fulfillment of the demands put forward by the trade unions would amount to approx. PLN 120 million.
The PKP CARGO Management Board, by letter dated 7 July 2015, refused to fulfill the demands formulated by the trade unions in their letter of 2 July 2015, as a result of which a collective dispute emerged with effect from 2 July 2015.
The PKP CARGO Management Board will endeavor to resolve the dispute in a manner that will ensure a further increase in the Company’s value.
Legal basis: Article 56 Section 1 Item 1 of the Act of 29 July 2005 on Public Offering and the Terms and Conditions for Introducing Financial Instruments to an Organized Trading System and on Public Companies (Journal of Laws of 2013 Item 1382).