Poland’s trade unions at the state run coal company, Jastrzębska Spolka Weglowa gave their consent to a 30% float of JSW shares on the Warsaw bourse through a deal reached with the government early this month.

The unions, including Solidarność, gained a ten-year guarantee of employment for 22,000 workers. Negotiations continue on May 23rd over specifics reached in the 5 May framework agreement, and conclusions must also be reached over pay increases.

JSW and the unions had been engaged in a four-month dispute over job security and the effects of the stock listing. Poland’s Treasury Ministry now will list a 30% stake of Europe’s largest coking coal company in July, instead of the 30 June date as originally planned. The government will maintain 51% stake in JSW, but the possibility exists that future sales of shares will occur.

The government offered a five-year guarantee of employment, while the unions maintained and won ten years.

They have retreated some on wage demands totaling 10%, but common agreement is expected to come on that issue. What still must be negotiated is the shape and structure of free of charge shares to staff, which will not be bound as an entitlement, certain provisions inside a 2007-2015 strategy plan of JSW and the appointment of board members to the partially privatized company.

JSW is the first of Poland’s major coal producers to list on a bourse. Next year, the thermal coal producer Katowicky Holding Weglowy numbering 19,200 employees, is expected to merge with the state-run logistics and export company Wegokoks, with initial public offering to follow. Solidarność is supporting the merger of the companies.

(Sourced from Icem)