Poland's JSW urges unions to accept cost cuts to secure state aid

GDANSK, Jan 2 (Reuters) - State-controlled Polish miner JSW on Friday warned its employees of irreversible consequences unless unions accepted a rescue plan that includes cost-cutting to ensure government aid.

The cuts would place 80% of the financial burden on employees, union leaders have said, and talks between the management board and unions on Tuesday ended in deadlock.

In an open letter to the unions on Friday, JSW management said a "temporary limitation of the level of labour costs" sought to aid a return to profitability, after a fall in coking coal prices and low demand led to financial losses in 2025.

The letter did not specify whether costs would be lowered by cutting jobs, reducing salaries or both.

Trade unions say the cuts punish workers unfairly for a situation they did not create.

Slawomir Kozlowski, head of the NSZZ Solidarność union at JSW, said in a social media post on Tuesday the proposed deal would place 80% of the financial burden on employees.

Poland's state assets minister said in December the company needed 3 billion zlotys ($835.05 million) in liquidity to keep operating in 2026 and was seeking loans from banks and a government fund.

The company said the government was willing to provide support if "social partners" cooperated on a restructuring plan.

A fragmented system of worker representation, with dozens of trade unions operating at the company, has complicated talks.

($1 = 3.5926 zlotys)

(Reporting by Alicja Surdy and Rafal Nowak; editing by Barbara Lewis)