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Broad Benefits Package

The employees of KGHM Polska Miedź S.A. can count not only on satisfactory remuneration and training to upgrade their competences, but also on a broad package of additional benefits. The Company offers annual bonus for the achievement of the profit targets and the Employee Pension Plan which at 31 December 2012 covered 89.5 of the workforce. The share of employees interested in the Employee Pension Plan has been continuously growing. In December 2010 only 85% of employees saved money under the Pension Plan. The benefits are offered not only to full-time employees, but also to part-time staff and employees hired for a defined period of time [LA3].

 

In 2007, as a result of negotiations between the parties to the Company’s Collective Bargaining Agreement, the rules of the annual bonus payment to employees of KGHM Polska Miedź S.A. changed. The amount of the annual bonus is now conditional on the value of the net profit for the respective year. The bonus value may range from 0 to 24% of the annual remuneration, as shown in the table below:

   
Net profit Bonus value expressed as % of remuneration
up to PLN 100m 3,0
more than PLN 100m up to PLN 200m 6,0
more than PLN 200m up to PLN 500m 8,5
more than PLN 500m up to PLN 1bn 10,0
more than PLN 1bn, for each additional PLN 100m 0.5 extra

 

Between 2010 and 2012, the additional annual bonus was at the maximum level of 24% of the total annual remuneration. In 2013, the bonus rate planned in the Company’s budget amounts to 20%.

 

Few companies in Poland offer Employee Pension Plans (EPP). The pension plan of KGHM Polska Miedź S.A. was launched in 2005 and has been managed by PZU TFI. For each employee who decides to join the plan, the Company pays the basic contribution, which since October 2012 has gone up to 6% of the remuneration (previously 5%). The EPP also provides for the possibility of paying additional contributions by the participants who want to increase the value of their future benefits. Under the agreement between KGHM and TFI PZU S.A., the employees can choose between three investment sub-funds, depending on their investment strategy preferences and risk appetite. In 2010, the total amount of money contributed to the EPP was PLN 84.52m, a year later PLN 86.44m and in 2012 as much as PLN 96.88m [EC3]. Since the launch of the pension plan, its assets have grown considerably and as at 31 December 2012 totalled PLN 537.63m.

 

 

 

Since September 2009, the employees of KGHM Polska Miedź S.A. have had the option to take advantage of prepaid healthcare services provided by Miedziowe Centrum Zdrowia S.A. (a company from the KGHM Group). The monthly cost of the package is PLN 35 per employee and this amount is covered by the employer. Employees can make appointments with specialists and do all kinds of laboratory tests. At 31 December 2012, 52% of employees had opted for the prepaid medical packet. The popularity of the medical package has been growing steadily. In 2011, only 47% of the workforce were interested in the healthcare plan.

 

In KGHM Polska Miedź S.A., separate Social Benefit Funds are established for employees in each division of the Company. In 2012, the total value of average contributions to the Social Fund (including both the basic contribution pursuant to the Act on Social Benefit Funds and the additional contribution negotiated with the trade unions and documented in the Collective Bargaining Agreement) amounted to PLN 5 687 per one employee (versus PLN 5,271 in 2010). This amount is almost five times higher than the statutory requirement in 2012. The total amount of money posted on the accounts of the Company Social Benefit Funds in 2012 amounted to PLN 108.8 million (versus PLN 98.8m in 2010 and PLN 101.4m in 2011).

 

The beneficiaries of the Social Fund include 18.6 thousand employees and over 17.5 thousand retirees and former employees receiving disability benefits.

 

The Social Fund is used to finance holiday benefits, housing loans for the construction, purchase or modernisation of fl ats and homes, school-related expenses of the employees’ children until graduation from gymnasiums and a so-called “coal-equivalent benefit” for retirees. KGHM Polska Miedź S.A. also organised or co-financed under the Company Social Benefit Fund holidays for 6,600 children and teenagers and funded 21-day health prevention and recuperation holidays for 440 employees. The Social Fund is managed on the basis of the annual financial and operational plan approved by the trade unions.

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KGHM Polska Miedź S.A. is the winner of the Most Attractive Employer title in third edition of the Randstadt Award survey held in Poland. The high employment standards maintained in Poland will be implemented in all KGHM Group companies worldwide.