JSW employees will hold a referendum to decide on suspending their 14th salary and a mining benefit, as the company negotiates financial restructuring measures.
Agreement Terms
JSW has agreed with representative unions on the terms of an implementation agreement defining mutual obligations and rights related to the suspension agreement. The project agreement provides for the exceptional, temporary application of less favorable employment conditions.
Suspended Benefits and Privileges
According to the report, the agreement project envisions temporary application of less favorable employment conditions. If there is a significant improvement in the economic situation, the company will pay overdue benefits (without interest) through a cash-sweep mechanism, which assumes dividing the cash surplus between employees and financing institutions. The agreement is to take effect from February 1, 2026, for a period of 23 months.
Billion-Dollar Financing and Restructuring
According to the project, JSW is to make efforts to obtain the necessary financing for its continued operation by the end of March 2026. The company is in talks to obtain new funds of up to 2.9 billion zł. The funds are to come from the sale of shares and stakes in subsidiaries and other non-core assets. If JSW does not secure funds by the end of March, the parties will have the right to terminate the agreement.
Compromise After Rejecting Radical Cuts
The current project is less restrictive than the management’s proposal from December 2025, which the unions strongly opposed. That document provided for cuts of nearly 8 billion zł over three years, including the complete lack of Christmas bonuses in 2027-2028 and the suspension of BHP allowances and privileges from the Miner’s Card.
Company Crisis
Jastrzębska Spółka Węglowa, the largest coking coal producer in the EU, is struggling with a deep crisis. After three quarters of 2025, the company recorded a net loss of 2.9 billion zł. In the third quarter alone, the net loss amounted to 794 million zł, with a negative EBITDA result of 485 million zł.
