Entry into an agreement with trade unions

Current report no : 42/2014
Report date : 6/24/2014
Abbreviated name : Ciech SA
Subject : Entry into an agreement with trade unions
Legal basis : Art. 56 section 1 point 1 of the Act on Offering - confidential information 

Report : 

The Management Board of Ciech S.A.. with a registered office in Warsaw (hereinafter: "the Issuer" or "the Company") announces that on 24 June 2014, the Management Board of Zakłady Chemiczne Organika-Sarzyna S.A., with a registered office in Nowa Sarzyna (hereinafter: "the Subsidiary") concluded with all trade unions operating in the Subsidiary (hereinafter: "Trade Unions") an agreement whereby, inter alia:

  1. the trade unions which instituted a collective dispute reported by the Issuer in current report no. 33/2014 of 14 June 2014, withdrew their payment claims, as a result whereof the collective dispute ended. The trade unions undertook not to lodge any claims for a rise in remuneration in 2014, and negotiations of any possible changes of remuneration will be possible not earlier than at the beginning of 2015.
  2. The trade unions withdrew the claims submitted on the basis of the Act on Collective Dispute Settlement, concerning, inter alia: the granting of additional, 6-months' severance pay in the event of termination of contracts of employment due to reasons not attributable to employees and the granting of a package of social guarantees in the event of transfer of the Subsidiary. The trade unions undertook not to lodge any such claims by the end of 2014.
  3. The Subsidiary shall pay employees an annual award for 2013, as guaranteed by the binding internal provisions of labour law, at the level of the annual award paid in 2012, at the value lower by 33% than the value demanded by the trade unions.
  4. For the purpose of reduction of the level of employment as of the end of 2014, the Subsidiary shall implement a procedure of dismissal of employees on the basis of a programme of voluntary resignations, which will replace the procedure of group dismissals, as reported by the Issuer in its current report no. 39/2014, dated 18 June 2014.
  5. The Subsidiary and the trade unions will commence the work on the final preparation of the text of the collective labour agreement, taking into account a necessity of registration of the agreement by the State Labour Inspection as soon as possible.

Signatures of the Company’s Representatives : Dariusz Krawczyk – President of the Management Board

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