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2017-10-18

LW Bogdanka S.A. signs agreement with trade unions on coal allowances for retirees and pensioners

Lubelski Węgiel Bogdanka S.A. signed today with the trade unions active at the Company an agreement to amend the Company Collective Bargaining Agreement to the extent it is related to payments of coal allowances to the Company’s retirees and pensioners.

The agreement is connected with the Act on the benefit to compensate for the loss of the right to free coal, passed by the Sejm (the lower house of the Parliament) on 12 October 2017. The agreement gives the right to receive a compensation of PLN 10,000 net also to Bogdanka's retirees and pensioners.

As a result of the agreement, the balance of provisions at the Company will change, leading to a one-off positive impact on its operating profit in the fourth quarter of 2017 in the amount of approx. PLN 110 million. An ultimate change in the balance of provisions, as referred to above, will be estimated by the actuary and presented in the Company’s periodic report for 2017.  

 

“The agreement we have signed today with the trade unions means that Bogdanka has resolved the issue of coal allowances for both present and future retirees and pensioners. In the near future, after the Act finally becomes law, we will be informing the interested persons how to apply for the compensation resulting from the implemented Act. For the Company’s financials, this means a possible change in its provisions, leading to a one-off positive impact on its operating profit in the fourth quarter of this year,” said Krzysztof Szlaga, President of the Management Board of LW Bogdanka S.A.