KGHM workforce voting in a ballot on whether to launch a protest action against the management refusal to meet unions demand for higher wages and increased contribution to the employee social fund, was invalid, according to unofficial press reports. The ballot failed to meet the 50% turnout threshold, required for it to be valid. Our view: We do not expect any major price impact of the news, which was expected. The management informed that average pay in KGHM would rise by 12% y/y in 2007, as the result of previous agreements with the unions and via profit participation scheme for employees.