The Draft Suspension Memorandum of Agreement provides for the suspension of certain provisions of collective agreements concluded with trade union organizations and internal regulations in force at JSW. According to the draft, for the duration of the memorandum of agreement, employees will have to accept less favorable employment conditions than those specified in their employment contracts.
Key changes include the suspension of the right to a 14th salary for 2026, the postponement of the payment date for the 14th salary for 2025 to 2027, and the payment of the Miner’s Festival bonus for the years 2025-2027 in installments. In addition, the payment of free coal allowance will be suspended and other benefits will be restricted.
One of the most important assumptions of the Draft Suspension Memorandum of Agreement is the possibility of restoring suspended benefits in the event of an improvement in the Company's financial standing. According to the provisions of the draft, if JSW's economic situation improves during the term of the memorandum of agreement the Company undertakes to pay the suspended benefits.
The Draft Suspension Memorandum of Agreement will enter into force on the date of its signing, with effect from 1 February 2026. It will be concluded for a period of 23 months and will expire on 31 December 2027.
The Suspension Memorandum of Agreement is part of a broad restructuring plan aimed at improving JSW's financial position and securing the company's future in the face of difficult market conditions.
Furthermore, please be advised that until the procedures conducted within the Company are completed, the JSW S.A. Management Board will not comment on their progress or on speculations appearing in the public domain. It is in the interest of all parties to create conditions conducive to calm and substantive dialogue. Once the consultation process has been completed, the Company will provide the public with full and accurate information on its results.
