The government opens money for JSW. The company needs PLN 653 million for this year's severance pay

On Tuesday, the government's work schedule published a draft program to support the coking hard coal mining sector. It is intended to be a strategic document that will enable the payment of protective benefits to employees of Jastrzębska Spółka Węglowe, provided for in the amended Mining Act.

On Tuesday, a draft resolution of the Council of Ministers on the adoption of a program called “Programme for supporting the coking hard coal mining sector in Poland – protective benefits” was published in the list of legislative and program works of the Council of Ministers.

As written in the justification, the aim of the project is to formally cover JSW with a support system, which will enable the company's employees to use the protective instruments provided for in the provisions of the Act on the Operation of the Hard Coal Mining Industry (mining holidays, leaves for employees of mechanical coal processing plants and one-off severance pay).

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Employment restructuring at JSW without liquidation of mines

At the end of last year, the government brought JSW under the act on the operation of hard coal mining, which from January 1 this year enables, among others, the use of miners' leaves and one-off severance pay in the company in terms of employment reduction.

However, as defined in the Mining Act, the support system is “a public support mechanism for the hard coal mining sector, specified in government strategic documents (…)”.

The Ministry of Energy indicates that the lack of a government strategic document that would include JSW in a support system makes it impossible to pay protective benefits to the company's employees. This, in turn, does not allow for an orderly restructuring of employment at JSW without the need to liquidate the mines.

The project applicant reminded that JSW, among others, support system, was not mentioned in the Program for the hard coal mining sector in Poland. He also emphasized that the need for such support results from the difficult market situation of JSW and the strategic role of the company as the largest producer of coking coal in the EU, which is crucial for the steel supply chain and the country's raw material security.

The government is removing the last formal obstacle

The Ministry of Finance emphasizes that the adoption of a support program for the coking hard coal mining sector (with a perspective of implementation in 2026-2031) is necessary for JSW to benefit from the support system provided for in the Mining Act; it will allow the use of a support mechanism to finance the costs of employment reduction.

Valid from January 1 this year. the amendment to the Act on the Operation of Hard Coal Mining and certain other acts introduced, among others, protection for miners and other employees of mining companies who leave their jobs. The employees of Polska Grupa Górnicza, Południowy Koncern Węglowy and Węglokoks Kraj were initially planned to be included in the amendment. During the works, employees of JSW and, in the future, Bogdanka were added.

At the end of February this year. Deputy Minister of Energy Konrad Wojnarowski informed at a meeting of the parliamentary permanent subcommittee for transformation that employment at JSW at the end of 2025 amounted to 20,488 people. Already then, the deputy minister said that in accordance with the amendment to the mining act, JSW could be included in the support system, but this required the company to be indicated in a strategic government document.

According to Wojnarowski, the application for entry into the list of legislative works of the draft resolution of the Council of Ministers adopting the Program for supporting the coking hard coal mining sector in Poland was submitted by the Council of Ministers on February 19 this year.

The deputy head of the Ministry of Energy also said that JSW reported a need for this year's support under the Mining Act in the amount of PLN 653 million (the amount assumed in the act was PLN 447 million). According to the estimates provided by Wojnarowski, 5,639 people would benefit from mining and processing holidays at JSW this year, and 2,150 people would benefit from one-off severance pay. (PAP)

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