Finance
Poland's JSW urges unions to accept cost cuts to secure state aid
Published by Global Banking & Finance Review®
Posted on January 2, 2026
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 2, 2026
2 min readLast updated: January 20, 2026
JSW urges unions to accept cost cuts for state aid, placing 80% burden on employees. Talks remain deadlocked.
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)
Cost-cutting refers to actions taken by a company to reduce its expenses, which may include layoffs, salary reductions, or other measures aimed at improving financial performance.
Trade unions are organizations formed by workers to protect their rights and interests, often negotiating with employers on issues like wages, working conditions, and benefits.
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