According to Polish daily Parkiet, KGHM has agreed with its trade unions to minor changes in the collective bargaining agreement but will continue to discuss 2013 wages at the next meeting on 15 January 2013. Labour unions are demanding a hike in the base pay rate following an increase in the minimum salary to PLN 1,600 gross accepted by the Polish government in 2012. The unions want the wage hike in lieu of bonuses, while the management would rather stand by a more motivational system of remuneration.
Our view:
Last year’s salary increase cost KGHM around PLN 80m and we are concerned that the management will be unable to avoid another salary increase this year. We would expect the salary increase to be at least at last year’s level.