EMCC European Monitoring Centre on Change

Polska Grupa Górnicza

Company/Organisation:
Polska Grupa Górnicza

Geographic Location

Country: Poland
Region: Centralny slaski; Slaskie; Poludniowy
Location of affected unit(s): Ruda Śląska

Company

Sector: Mining / quarrying
Mining and quarrying
05.10 - Mining of hard coal
Number Employed: 38900

Employment Effects

Announcement Date: 17-11-2021
Planned Job Reductions min: 1199
Type of Restructuring: Internal restructuring
Employment Effect Start: 17-11-2021

Additional Information

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).

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