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Dialogue with the trade unions

The Company attaches great importance to the dialogue and relationships with the trade unions. In KGHM Polska Miedź S.A., there are over 15 trade union organisations which as at 31 December 2012 had 16 447 members (88% of the workforce). It is worth emphasising that no attempts at restricting the freedom of association and collective bargaining were recorded [HR5].

 

Discussions held with the social partners cover subjects important both for the employer and for the employees. In 2012, the Company initiated talks on the implementation of a new compensation system aimed at increasing the motivation of the employees. Six meetings of the Management Board with the trade unions were held, of which three concerned payroll issues or a periodical review of the Collective Bargaining Agreement in force between the Company and the employees of KGHM Polska Miedź S.A. The other meetings tackled the subject of occupational health and safety, acquisition of Quadra FNX Mining Ltd. and the business situation of the Company and the Group.

 

On 21 March 2012, the Management Board of KGHM Polska Miedź S.A. and trade union organisations being party to the Collective Bargaining Agreement signed a memorandum sanctioning an increase in the basic salaries and wages as of 1 January 2012. Collective Bargaining Agreements cover 99.7% of employees of KGHM Polska Miedź S.A. [LA4]. The wages in KGHM significantly exceed the level of the national average wage. [EC5] The rate of the average salary of 10% of lowest paid employees of the Company to the minimum national salary in 2012 was 3.07:1.

 

 

Another outcome of the dialogue is the annexes to the agreements on the Employee Pension Plan signed by the employer and the trade unions in September 2012, by force of which the basic contribution financed by KGHM went up from 5 to 6% of the employee’s remuneration (find more information about the Employee Pension Plan in the section ”Employee Bonuses” below).

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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.