Type
Internal restructuring
Country
Poland
Region
Poludniowy; Slaskie; Centralny slaski
Location of affected unit(s)
Ruda Śląska
Sector
Mining / Quarrying
Mining And Quarrying
Mining Of Coal And Lignite
05.10 - Mining of hard coal

1,199 jobs
Number of planned job losses
Job loss
Announcement Date
17 November 2021
Employment effect (start)
17 November 2021
Foreseen end date

Description

Polish coal mining company Polska Grupa Górnicza (PGG) has announced that it will cut 1,199 jobs in Ruch Pokój unit, a coal mine located in Ruda Śląska, in the coming weeks. According to a restructuring programme, the 1,199 workers, along with the non-productive assets of the company’s subsidiary Ruch Pokój, will be transferred to Spółka Restrukturyzacji Kopalń (SRK, Mine Restructuring Company): it manages the process of liquidation of unprofitable mining companies. Ruch Pokój is to be closed by SRK, and the employees will be covered by protective measures.

Between 22 October and 2 November 2021, about 1,600 employees applied for the protection package programme; the company selected 1,199 people, of whom 560 workers will receive one-time severance pay in the amount of PLN 120,000 (€25,934), and 639 will take advantage of pre-retirement leaves. The programme is to be implemented under the so-called mining law containing protective measures aiming at increasing financial effectiveness in Poland’s coal-mining industry.

PGG was founded in April 2016 to rescue the cash-strapped Kompania Węglowa (KW), Poland's biggest coal mining company which faced financial problem resulting from the crisis in Poland’s coal-mining industry (then PGG acquired 11 coal mines with 32,500 employees). Currently, PGG employs almost 38,900 people.

Previous restructuring programme was announced in November 2020 (360 jobs cut).


Sources

Citation

Eurofound (2021), Polska Grupa Górnicza, Internal restructuring in Poland, factsheet number 105688, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/105688.