JSW finds itself in one of the most difficult moments in history, and its financial liquidity may end at the turn of January and February, said Wojciech Balczun, Minister of State Assets, on Tuesday.
– We need to find a solution that will save liquidity. (…) Liquidity actually ends in January or February. There are a few weeks left for negotiations. (…) Bankruptcy is the final scenario – said the minister on Polsat News.
Reasons for the collapse: Costs and cheap competition
Balczun pointed out that JSW's problems result from a very long cycle of economic downturn on the coking coal market, but also from excessive cost inflation in the past. In his opinion, the sources of the current situation date back to earlier years, including decisions of previous management boards and political teams, which led to an increase in costs, including wages, and the signing of long-term social agreements.
According to the head of MAP JSW has already used up the entire stabilization fund, which was supposed to protect the company in difficult times, and is currently generating losses amounting to several hundred million zlotys per month.getting more and more into debt.
The minister noted that the coking coal market is currently flooded with raw material from abroad, including: from Indonesia. As a result, prices dropped by several dozen percent, while costs in Poland increased significantly at the same time. In his opinion, in the interest of economic security, JSW should survive, which – he said – is also understood by trade unions, which are negotiating the terms of restructuring hard.
Balczun reminded that the government brought JSW under the Act on the Operation of Hard Coal Mining, which enables, among other things, mining holidays and employment reduction. Simultaneously pointed to possible intermediate scenarios in the event of no agreement, including a formal restructuring process.
Trade unions reject drastic cuts
Trade union organizations operating in Jastrzębska Spółka Węglowa said on Monday that they did not agree to sign the savings agreement presented earlier by the company's management, adding at the same time that the cuts in employee benefits wanted by the management amounted to almost PLN 8 billion.
On Friday, the JSW management board appealed to trade unionists to refer to the draft agreement providing for the temporary suspension of selected remuneration benefits and the adjustment of the level of remuneration costs to the current situation on the coking coal and coke markets and to the Company's current financial capabilities.
These actions are a response to the significant deterioration of JSW's liquidity situation in the next two months – emphasized representatives of the company's management.
Loan condition and suspension of “fourteenths”
The draft suspension agreement, which is to be signed by the company, representative trade unions and the Deputy Minister of State Assets, provides that the agreement will temporarily suspend the application of the provisions of some previously applicable collective agreements with trade unions and will also suspend the guarantees from the agreement of March 31, 2021 regarding working conditions.
The JSW Management Board emphasized that concluding the agreement is a key condition for obtaining financing from both state and private financial institutions.
In the opinion of trade unionists, the so-called project The suspension agreement presented by the JSW management board means three years of reduced employee income, weakened protection and limited benefits.
The points of the agreement include the employer's declaration that it will make every effort to obtain the financing necessary for the company's continued operation by the end of February 2026, provided that its granting depends on the implementation of the restructuring plan, including the reduction of labor costs. Granting JSW a loan from the Reprivatization Fund in the amount of PLN 2.9 billion (which is the responsibility of the Ministry of Assets) also depends on the unions accepting and accepting the reduction in labor costs.
The project provides for a complete suspension in the years 2025-27 14. salary, payment of the St. Barbara's Day award for 2026 limited to a maximum of 30%. and its absence in 2027-28, as well as the entire suspension in 2026-28 of: coal allowance, health and safety bonuses and allowances, tickets from the Miner's Card and more favorable rules for sickness and leave benefits.
Billions of losses after three quarters
November 25 last year JSW announced that its net loss after three quarters of 2025 reached PLN 2.9 billion cumulatively. Sales revenues amounted to PLN 7 billion, and the EBITDA result was minus PLN 1.4 billion. In the third quarter alone, JSW generated PLN 2.3 billion in sales revenues, with a gross loss on sales of PLN 524 million. EBITDA excluding one-off events amounted to minus PLN 485 million and the net loss was PLN 794 million.
December 15 last year Minister Balczun said that JSW needs approximately PLN 3 billion of financing to ensure liquidity in 2026 (PAP)
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