According to the daily Puls Biznesu, ZZPPM, the largest trade union in KGHM
presented a long list of demands to the management board. Today, the union is expected to decide about entering a dispute with the management. Accor
ding to the daily the union demands:
1. PLN 100m from last year’s profit to be allocated to the social fund dedicated for granting loans to employees.
2. Increasing charge for employees’ pension fund from 4% to 7.5%.
3. Increasing the ratio of salary increases, set up by the management, from 5.7% to 10%.
Our view: It is the first demand of the unions after signing the framework agreement with the management in February. We believe it could result from the recent growth in the copper price. The news is negative, however quite usual for KGHM
, and we believe that the moves of copper price will be more important for the stock price today.