In a move sparked by financial constraints, the Polish Mining Group (PGG) has announced it will begin issuing termination notices this August to employees who acquired retirement eligibility by July 1st. The layoffs will affect approximately 260-270 of the 364 employees initially targeted. This decision comes as PGG aims to address a significant revenue shortfall.
Originally, the company had planned to lay off 435 employees, anticipating retirements and voluntary exits to reduce the workforce. However, this number was reduced after some employees chose to leave voluntarily. The layoffs predominantly impact underground workers, administrative staff, and surface personnel.
In a statement released on their Facebook page, PGG noted that while the original plan included 435 individuals, the actual terminations would involve fewer employees due to factors such as union protections which apply to some workers.
To cushion the impact, PGG has structured severance packages based on tenure: employees with at least eight years at PGG will receive three months’ salary, those employed between two and eight years will get two months’ salary, and those with less than two years will receive one month’s salary. Additionally, a retirement severance of 20,000 PLN will be granted if the employment is terminated within six months of retirement eligibility.
The layoffs are part of a broader strategy to streamline operations following a downturn in coal sales, which dropped from an expected 20 million tons last year to just 17 million tons this year, creating a revenue gap of 2 billion PLN. PGG’s president, Leszek Pietraszek, highlighted these challenges in an interview, noting that these measures were essential for the company’s sustainability.
Pietraszek also mentioned ongoing plans for a voluntary departure program aimed at a different group of approximately 1,000 dedicated employees, further underscoring the company’s efforts to adjust its workforce in response to operational needs and financial realities.
PGG remains the largest producer of energy coal in Poland and the European Union, employing over 36,000 individuals across seven mines. This restructuring comes at a critical time as the company navigates through financial difficulties and shifts in the energy sector.