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Recovery Plan for Coal Company

Council of Ministers 7 January 2015 adopted the Recovery Plan for the Coal Company prepared by Government Plenipotentiary for the Restructuring of Stone Coal Wojciech Kowalczyk.

Council of Ministers 7 January 2015 adopted the Recovery Plan for the Coal Company prepared by Government Plenipotentiary for the Restructuring of Stone Coal Wojciech Kowalczyk.

The main objectives of the plan are to ensure the energy security of the state by supplying domestic hard coal to the power plant in...

Council of Ministers 7 January 2015 adopted the Recovery Plan for the Coal Company prepared by Government Plenipotentiary for the Restructuring of Stone Coal Wojciech Kowalczyk. The main objectives of the Plan are to ensure the energy security of the state by supplying domestic hard coal to the power plant in the future.

30 years, guaranteeing financial support for workers of mines intended to be extinguished and, in addition, continuing to extract hard coal in Silesia on economically justified terms.

The document also records an increase in mining in profitable mines with potential for improvement by introducing 6-the day-to-day work week and the increase in the employment of bottom miners. 6-day work week means the extraction will last 6 days, but miners apply 5-day work week (with free Sunday guarantee).

The plan provides for the division of the assets of the Coal Company into three groups. first - mines in which mining is not economically justified will be sent to the Company for Restructuring of Mines S.A. in order to extinguish the business. second - mines where extraction is economically justified will join a special purpose vehicle set up by WĘGLOKOKS. third the group is assets not related to mining activities for liquidation (sale)

The plan therefore involves a transfer 9 profitable or forward-looking mines to the target company, called "New KW", marketing costs, corrective actions, use of an external investor - WĘGLOKOKS, who will buy tenth the mine and the possibility of the new company being held by power companies. The company will be introduced 6-day week work (that is still five working days but burning on 6 days of the week) and change of the remuneration system - with a fixed and variable part, depending on the results.

The mere decoupling of unprofitable assets should improve New KW's performance on sales by law 900,000,000 PLN annual and reduce the cost of coal mining by 9% - be judged in the plan.

6,000 the bottom workers from the extinguished mine will find employment in the special-purpose company.

For other bottom workers, 2,100 persons, the possibility of using 4 years mining leave in exchange for 75% monthly remuneration is for people who have 4 and less years to pension or one-off check-in (for persons who have more than 4 years until retirement) of equivalent value 24-monthly remuneration.

Mechanical coal treatment workers, 1,100 persons, will be able to benefit from a briefing of 10 monthly remuneration. Other ground workers, mainly administration (ok. 1,600 persons), may benefit from a check-in fee of 3.6 monthly remuneration.

In addition, these persons are entitled to statutory severance grants under the Act on special rules for the termination of employment relations with employees for reasons not affecting employees and support under the Programme for the support of workers losing employment in the Coal Company.

Total cost of the Recovery Programme in years 2015-2016 will be higher ok. 2,300,000,000 PLN, of which 1,400,000,000 In 2015, a 900,000,000 In 2016 and will be financed mainly from budgetary grants, own resources of the SRK and from funds from the Guaranteed Workers' Benefits Fund. Reimbursement of funds to the Guaranteed Workers' Benefits Fund will come from privatisation revenues in years 2016-2018.

Measures to close uncompetitive mines by the Mine Restructuring Company are the only public aid allowed by the State for mining.

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