PGNiG: PGNiG trade unions enter into a collective dispute with the employer

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”, the “Employer”, the "Company") announces that a collective dispute was initiated after on May 21st 2015 the Employer rejected demands put forward by the PGNiG trade unions.
The trade unions demanded that PGNiG:
1. increase pay by 6% in 2015;
2. increase the value of vouchers to PLN 2,000 per year;
3. distribute the 2014 annual bonus in an amount equal to 11.7% of the calculation basis, that is in accordance with the annual bonus calculation rules applied in 2013.
The demands specified in item 1 and item 2 cannot give rise to a collective dispute within the meaning of Art. 1 of the Act on Resolution of Collective Disputes of May 23rd 1991, as these matters are regulated by the Company’s Collective Labour Agreement. Under the Collective Labour Agreement, if a pay increase has not been negotiated with the social partners, the decision falls within the Employer’s remit. As regards the vouchers, the Employer has the sole power to determine their value.
Pursuant to Art. 4.2 of the Act on Resolution of Collective Disputes, a dispute relating to change of a collective labour agreement may be initiated and conducted not earlier that on the day of such agreement’s termination. The Collective Labour Agreement in place at PGNiG S.A. had not been terminated by either party.
As regards item 3, the Company did not grant the demand submitted by the social partners for the following reasons:
• deregulation of the Polish gas market and increased competition;
• changes in the market environment (severe decline in crude oil prices on global markets);
• changes in the regulatory regime.
Taking into account the above-mentioned reasons, the PGNiG Management Board decided not to grant the demands put forward by the PGNiG trade unions. The collective dispute initiated by way of the letter of May 18th 2015 relates to the refusal to grant the following demands:
1. to distribute the 2014 annual bonus in an amount equal to 11.7% of the calculation basis, that is in accordance with the annual bonus calculation rules applied in 2013.
The Management Board declares that it will make every effort to resolve this dispute taking into account the Company’s financial capacity.