Current report no : 63/2014
Report date : 9/25/2014
Abbreviated name : Ciech SA
Subject : Conclusion of a memorandum of understanding with the Trade Unions at Soda Polska CIECH S.A.
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 ("the Issuer") announces that on 24 September 2014, Soda Polska Ciech S.A. in Inowrocław ("Subsidiary") concluded, with all Trade Unions operating at the Subsidiary ("Trade Unions") a memorandum of understanding ("Memorandum of Understanding") whereby, inter alia:
1. The Trade Unions undertook to withdraw the lodged claims concerning an increase of the remuneration fund and, for the duration of the Memorandum of Understanding, not to bring any claims for an increase of the remuneration fund, pay rises, establishment of additional cash benefits for employees of the Subsidiary or any other claims concerning remuneration of employees of the Subsidiary, both according to the procedure specified in the Law on Settlement of Collective Disputes and outside this procedure.
2. The Trade Unions undertook, for the duration of the Memorandum of Understanding, to, inter alia, strive to settle amicably any disputes with the Subsidiary. In particular, the Trade Unions undertook to refrain from institution of any collective disputes, organization of pickets or protest campaigns.
3. The Parties to the Memorandum of Understanding confirmed that, as of the date of entry into the Memorandum of Understanding, there was no collective dispute among them, as defined by the provisions of the Law on Settlement of Collective Disputes.
4. The Subsidiary undertook, temporarily, for the duration of the Memorandum of Understanding, to take action aimed at the maintenance of employment of workers designated for group redundancy, with the exception of workers to whom a notice of termination of their employment relationship was delivered or with whom agreements were concluded regarding termination of their employment relationship before the entry into the Memorandum of Understanding. These actions will lead to providing a possibility to each employee designated for group redundancy of continuing his/her employment in the Subsidiary, and if no such possibility is open, in another entity belonging to the CIECH Capital Group, at least until the end of the term of the Memorandum of Understanding.
5. The Subsidiary undertook to increase the base salary of 73 employees to the gross level of PLN 2,000, effective on 1 September 2014.
6. The Subsidiary granted its consent to the transfer, from the funds already deposited in the account of the corporate social benefits funds, of the amount of PLN 2,100,000 for additional social benefits for employees of the Subsidiary.
7. The Memorandum of Understanding was concluded for a specified period of 36 months from the date of conclusion thereof, with a possibility of its termination by either Party against one-month's notice or with an immediate effect in the event of a breach by either Party of the provisions of the Memorandum of Understanding.
The Issuer announced the commencement of the procedure of collective redundancies in the Subsidiary in its current report no. 55/2014 of 28 July 2014.
Signatures of the Company’s Representatives : Dariusz Krawczyk – President of the Management Board
