The JSW management board warns trade unionists: Cuts or disaster. The time margin is shrinking

In a letter, the Management Board of Jastrzębska Spółka Węglowa (JSW) appealed to trade unionists to be open to reaching a compromise and accepting the solutions included in the company's restructuring plan.

The scale of the challenges JSW is currently facing is unprecedented, and the margin of time for action is shrinking every day, emphasized the heads of the struggling mining company. Only reaching a compromise immediately can protect JSW from a scenario whose consequences would be irreversible both for employees and the entire region. – they added.

Tuesday's talks between the management board and the unions operating in JSW regarding the temporary reduction of labor costs in the company ended without an agreement. WITHAfterwards, the union members stated that “there is and will not be consent to reaching into miners' pockets under the pretext of saving the company”.

“We once again appeal to you to be open to reaching a compromise and accepting the solutions contained in the Restructuring Plan, because the Company's situation requires immediate decisions today, and not further postponement of key decisions,” wrote the open letter of the JSW Management Board. Its content was sent to PAP by company representatives on Friday.

“Responsibility for homes and families”

As the JSW management board recalled, the government declared its readiness to provide support and indicated solutions that could strengthen the company's stability. However, the release of this aid depends on the cooperation of social partners and the adoption of arrangements that will allow the restructuring plan to be implemented – noted the JSW authorities.

“As the Management Board, we are fully aware of the burden of responsibility that rests on us. We are taking actions aimed at stabilizing the situation and rebuilding the financial security of JSW. At the same time, we cannot lose sight of what is most important: jobs of tens of thousands of people, social security of mining families and the stability of the Polish economy in the area of ​​the strategic raw material coking coal. Behind these concepts are specific people, their homes and the future of entire communities,” the letter said.

The Management Board pointed out that in the conditions of a deep economic downturn in the steel industry, for which JSW is a supplier of key raw materials, the attitude of the social side is now “of decisive importance for the success of the Restructuring Plan”. He assessed that the current market environment practically deprives the company of the ability to bear costs and risks on its own without changes and without external support. “Therefore, we call for an approach based on responsibility and readiness to compromise – one that will protect the foundations of JSW's operations and ensure its future,” the letter added.

The management board warns against “irreversible consequences”

The heads of JSW declared that their goal was to restore profitability and ensure the company's long-term financial security. They argued that in order to implement this plan, it is necessary to make arrangements with trade unions to temporarily reduce the level of labor costs. They also pointed out that time pressure increases dramatically every dayand without an agreement it will not be possible to implement restructuring activities on a scale that will save jobs.

In the letter, the management board declared its readiness to continue talks at any date indicated by the trade unionists. He also emphasized that the dialogue must take into account the legal and economic conditions in which JSW operates, as well as the limitations resulting from the market and financial situation.

Only reaching a compromise immediately can protect JSW from a scenario whose consequences would be irreversible both for employees and the entire region. Joint responsibility – towards employees, their families and the future of the Company – requires decisions today that will be very difficult, but necessary – concluded the JSW management board.

Unions: This is an attempt to rob miners. Where did the billions from the fund go?

The position of the unions was presented before Tuesday's talks by the chairman of Solidarity at JSW, Sławomir Kozłowski. As he said, on December 11, the unions received the JSW recovery plan, and on December 23, the draft agreement – both letters with three-day deadlines for responding.

“The agreement assumes that the burden of financial and economic costs of saving the company will fall on the shoulders of employees: 80 percent. these costs on the shoulders of JSW employees and miners. This is a project that is, in short, intended to rob JSW employees,” said a trade unionist.

“Where is the owner now? Where is the responsibility of the owner who for years received all profits and income of JSW to the state treasury,” Kozłowski asked. As he calculated, in February 2024, JSW had PLN 9 billion at its disposal, including PLN 5.7 billion in the stabilization fund, over PLN 2 billion in cash and PLN 1.6 billion in the form of a loan. He asked where and for what the money was spent and added that no one wanted to talk about it.

Budget hole and negotiations with the government

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.

Assumptions for the business restructuring of the JSW group include: developing a support plan by the State Treasury, reaching an agreement with the social side regarding cost reduction and work organization, developing a group restructuring plan and developing financing conditions with financial institutions.

December 15 last year Minister of State Assets Wojciech Balczun said that JSW needs approximately PLN 3 billion of financing to ensure liquidity in 2026. As he said then, the company is very intensively negotiating obtaining commercial financing from the international market, and at the same time a loan from the Restructuring Fund is being negotiated. – We assume that part of the funds will come from the Reprivatization Fund and the rest from the market. At the same time, JSW must restructure, said the head of MAP in mid-December. (PAP)

kon/ mtb/ mmu/