KGHM management has opposed union demand for a 10% increase in average pay increase in KGHM Group, insisting on a 6% pay rise for KGHM workers only, during the negotiations yesterday. The management reminded, that the average pay in the company (not the Group), including profit participation scheme and various bonuses, would rise by 12% y/y on the back of earlier arrangements. Our view: We believe that the likelihood of a strike action by the unions is minimal considering substantial pay rises already guaranteed, and almost nil inflation in Poland.