Sejm Passes Law Allowing Gradual Closure of Mines; Up to 170k PLN Severance for Miners

Poland’s parliament enacted a law enabling the stepped shutdown of coal mines, providing up to 170,000 PLN in severance pay and new support mechanisms for affected workers.

Sejm Passes Law for Gradual Mine Closure

The adopted legislation authorises the “gradual phasing out of mine operations,” according to the Ministry of Energy. Coal extraction has declined for several decades and is expected to continue falling, resulting in the closure of certain mines.

Social Contract Support for Workers

Amendments introduce measures to aid employees during this transition, part of the 2021 “social contract” signed between the government and mining unions. These provisions aim to protect workers’ rights amid mine closures.

Minister Warns Against Presidential Veto

Energy Minister Miłosz Motyka urged the Senate to act swiftly and highlighted the impending shutdown of the Bobrek mine on December 31. He cautioned that a presidential veto would place the social side of the industry in a difficult position and offered the president’s office representatives to work on the bill in the Senate committee.

Financing of Mine Liquidation

The law introduces a public‑funded mechanism whereby mining companies can independently liquidate mines, extending support to all employees, including those in administration.

Expected Costs and Workforce Impact

Estimated liquidation costs over the next decade exceed 11 billion PLN. Reduced employment might lead companies to seek less state aid, potentially resulting in thousands of job losses.

Severance and Paid Vacation

Workers can receive a one‑time severance of up to 170,000 PLN, or opt for long‑term leave: five years for miners and four years for mechanical coal workers, with 80 % of the monthly salary paid during leave before retirement can commence.

Poland’s Declining Coal Role

The 2021 social contract sets a schedule for closing the last coal mine by 2049. However, the pace of moving away from coal could accelerate, forcing earlier closures.

National Energy Plan Delays

The government is still finalising the National Energy and Climate Plan to 2030 (KPEiK), Poland’s last EU country to submit it. The plan contains both an ambitious and a base scenario; the base scenario aligns with the social contract but a faster coal exit is reflected in the ambitious case.

Future Outlook from Industry

Industry leaders, such as Grzegorz Onichimowski of Polskie Sieci Elektroenergetyczne, predict a much quicker exit from coal, with a negligible role of coal in power generation by the early 2030s and several coal blocks kept in a “cold reserve” for emergency use.

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