Friendly, major employer

Thanks to employees who identify with JSW's mission and have a decisive say in its success, the Company builds its image as an employer.

JSW is well-known as the largest employer in the region. Out of concern for the local community, JSW plays a key role in providing a safe and stable workplace to employees. We are aware of the fact that people, their knowledge, skills and competences are the greatest capital of any company, which is why fostering the best conditions for professional and personal development is part of JSW's strategy. Workplace safety, ensured by maintaining the strictest and latest standards for protecting against hazards as well as by having technically advanced mines, is of fundamental importance.

JSW makes every effort to ensure that all employees possess the knowledge necessary to perform their tasks and that, by developing skills, they represent a high level of motivation, effectiveness and use of their potential so that the tasks they perform support our business objectives not just today but also in the future. The Company also makes it possible to gain new professional experience within its structures, while the diversity of its processes is conducive of changing career paths. JSW stands for years of learning and experience, which is why we appreciate experienced employees who pass the practical knowledge gained on the job on to their younger colleagues.

Our activities intended to strengthen relations with employees and create an attractive workplace include:

  • extensive training and development programs,
  • open dialogue with trade unions,
  • code of ethics and anti-harassment code, shaping an organisational culture that is based on mutual respect.

Effective coal mining with the use of modern techniques and equipment requires a highly qualified workforce with appropriate experience and qualifications, which is why JSW places particular emphasis on the development of human potential. When we think about employee development, we consider two perspectives - that of a company planning operational changes in the light of a changing business environment and that of an employee who has aspirations and willingness to learn and become better.

The key role in defining the approach to managing human resources is played by JSW's Strategy incorporating JSW Group subsidiaries for years 2018-2030. The approach to employee matters was also defined in the Sustainable Development Strategy 2017-2020.

HR regulations set out hiring policy tasks and directions. On this basis, JSW pursues its strategic objectives aligned with being a socially responsible business, including:

We recruit the best people in accordance with our needs – the aim is to optimally select the Company's employees in terms of needs resulting from personnel turnover, required qualifications and resources available on the local job market.

We rationally manage resources – aimed at ensuring an optimal use and allocation of employee resources to perform tasks at JSW's facilities.

We develop employees in key areas – with the aim of ensuring a high level of employee competences, making it possible to pursue business objectives in a stable manner, including strong leadership competences among the management.

We operate consistently – this objective will ensure consistency and harmony across all HR processes at JSW as well as their strategic fit.

Developing managers is also important for JSW because the success of the Company's initiatives depends on the competences of its team leaders. We strive to ensure that people in managerial positions properly understand their role and have the knowledge and skills necessary to perform it.

Projects, activities and initiatives

A new module on the employee site was launched in 2018, where employees can review their pay slips as well as HR and payroll data. Employee information in the HR and payroll module was supplemented with additional data in 2019:

  • a record containing information on days worked and absences over the past 12 months;
  • a list of benefits from the Social Fund for the employee and his/her family in the present year and in previous years;
  • a record of issued protective equipment such as: face protection, hands protection, cleaning products, eye protection.

The HR and payroll module is expected to be further expanded in 2020.

As of 31 December 2019, the Group had 30 629 employees, compared to 28 268 at 31 December 2018. At the end of 2019, JSW had 22 433 employees, compared to 21 616 at the end of 2018. The growth in headcount at JSW results from implementing the expected production tasks and was also intended to limit the negative impact of weak potential offered by external providers of services to JSW's mines.

Average headcount at the Group reached 29 440 in 2019, up by 2 233 people from the previous year. Average headcount at JSW reached 22 038 in 2019, up by 943 people from the previous year.

ITEM 2019 2018
Women Men Total Women Men Total
EMPLOYMENT STRUCTURE BY TYPE OF CONTRACT
Employment contract with indefinite term 3,153 24,687 27,840 2,884 23,267 26,151
Employment contract with definite term 412 1,840 2,252 315 1,065 1,380
Employment contract for a trial term 111 426 537 71 666 737
Civil-law contract 149 597 746 124 447 571
EMPLOYMENT STRUCTURE BY TYPE OF JOB
White-collar positions under ground 53 3,054 3,107 42 2,752 2,794
Blue-collar positions under ground - 16,876 16,876 - 15,708 15,708
White-collar positions above ground 2,334 1,765 4,099 2,104 1,650 3,754
Blue-collar positions above ground 1,289 5,258 6,547 1,124 4,888 6,012
EMPLOYMENT STRUCTURE BY AGE
Up to 30 years of age 355 4,906 5,261 325 4,816 5,141
From 31 to 40 years of age 810 11,158 11,968 656 10,511 11,167
From 41 to 50 years of age 1,091 7,077 8,168 1,039 6,297 7,336
Over 50 years of age 1,420 3,812 5,232 1,250 3,374 4,624
TOTAL 3,676 26,953 30,629 3,270 24,998 28,268
EMPLOYEE TURNOVER
Total number of new hires 517 2,091 2,608 555 2,318 2,873
Total number of departures 183 1,087 1,270 173 889 1,062

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Table. Number of employees by region

ITEM 2019 2018
Silesian voivodship Other Total Silesian voivodship Other Total
JSW GROUP
Employment contract with indefinite term 27,496 344 27,840 26,057 94 26,151
Employment contract with definite term 2,076 176 2,252 1,342 38 1,380
Employment contract for a trial term 519 18 537 722 15 737
Total 30,091 538 30,629 28,121 147 28,268
including JSW
Employment contract with indefinite term 22,372 10 22,382 21,535 11 21,546
Employment contract with definite term 50 1 51 68 2 70
Employment contract for a trial term - - - - - -
TOTAL 22,422 11 22,433 21,603 13 21,616

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Table. Percentage of management hired from local community, understood as residents of the municipalities or poviats where JSW Group's facilities are located

ITEM 2019 2018
JSW Group 55.33% 52.21%
including JSW 59.68% 60.71%

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Table. New hires (without transfers between JSW Group companies / within JSW)

ITEM 2019 2018
Women Men Total Women Men Total
JSW GROUP
age under 30 109 979 1,088 186 1,609 1,795
age 30-50 297 797 1,094 289 542 831
age over 50 111 315 426 80 167 247
TOTAL 517 2,091 2,608 555 2,318 2,873
Silesian voivodship 499 1,949 2,448 525 2,287 2,812
other voivodship 18 142 160 30 31 61
% share of new employees in total employees 1.69 6.83 8,51 1.96 8.20 10.16
including JSW
age under 30 12 29 41 18 41 59
age 30-50 36 17 53 46 27 73
age over 50 3 4 7 2 12 14
TOTAL 51 50 101 66 80 146
Silesian voivodship 50 50 100 64 77 141
other voivodship 1 - 1 2 3 5
% share of new employees in total employees 0.23 0.22 0.45 0.31 0.37 0.68

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Table. Departures (without transfers between JSW Group companies / within JSW)

ITEM 2019 2018
Women Men Total Women Men Total
JSW GROUP
age under 30 23 233 256 21 123 144
age 30-50 60 518 578 42 489 531
age over 50 100 336 436 110 277 387
TOTAL 183 1,087 1,270 173 889 1,062
Silesian voivodship 164 945 1,109 156 877 1,033
other voivodship 19 142 161 17 12 29
% share of new employees in total employees 0.60% 3.55% 4.15% 0.61% 3.14% 3.76%
including JSW
age under 30 1 29 30 3 27 30
age 30-50 7 280 287 7 384 391
age over 50 30 138 168 38 143 181
TOTAL 38 447 485 48 554 602
Silesian voivodship 37 445 482 47 553 600
other voivodship 1 2 3 1 1 2
% share of new employees in total employees 0.17% 1.99% 2,16% 0,22% 2,56% 2,78%

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Table. Number of employees who took parental leave

ITEM 2019 2018
Women Men Total Women Men Total
JSW GROUP 89 61 150 74 40 114
including JSW 52 6 58 42 16 58

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Table. Number of employees returning to work after parental leave ended

ITEM 2019 2018
Women Men Total Women Men Total
JSW GROUP 40 54 94 48 31 79
including JSW 27 6 33 27 11 38

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Table. Retention rate of employees who took parental leave (percentage of returns to work after parental leave)

ITEM 2019 2018
Women Men Total Women Men Total
JSW GROUP 44.94% 88.52% 62.67% 64.86% 77.50% 69.30%
including JSW 51.92% 100.00% 56.90% 64.29% 68.75% 65.52%

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Remuneration

JSW Group companies have separate rules for remunerating their employees. The level of remuneration at the Group's entities in 2019 ranged between PLN 3 821.55 and PLN 10 808.05. The following table presents the average monthly pay at JSW (without bonus from profit) (in PLN):

chart-52

*The average monthly pay for 2018 of PLN 10 614.72 contained payment of benefits for 2016, i.e. 14th monthly salary and free coal allocation. Adjusting for this benefit payment, average monthly pay is PLN 9 642.81.

Remuneration for most of JSW's employees is paid on the basis of collective labour agreements terminated effective from 1 January 2010. Remuneration for employees hired after 15 February 2012 is set in accordance with rules specified in new employment contracts. In accordance with internal regulations, JSW's employees are entitled to remuneration for work, consisting of a base salary, bonus or excess payment, Miner's Card (long-service bonus), functional bonus (e.g. longwall face bonus), bonus for work in burdensome, harmful and hazardous conditions. Hiring employees for appropriate jobs and assigning job categories take place on the basis of a workplace table.

Irrespective of the aforementioned components of pay, JSW's employees are entitled to additional benefits such as annual Miner's Day award, Barbórka payment, additional annual award, free coal allocation, anniversary awards, pension/disability severance payment, cash equivalent for travel on leave, equivalent for school supplies. In addition, employees can be entitled to a motivational bonus and an occupational health and safety bonus.

Based on new employment contracts, employees are entitled to remuneration consisting of a base salary and a long-service supplement. Irrespective of the aforementioned components of remuneration, employees hired on new contracts are entitled to the following additional benefits: annual Miner's Day award, additional annual award, free coal allocation, pension/disability severance payment, cash equivalent for travel on leave, equivalent for school supplies. In addition, employees can be entitled to a motivational bonus and an occupational health and safety bonus.

The average monthly remuneration in 2019 was significantly influenced by agreements with trade unions in 2018 and 2019 as well as the Management Board's decisions:

  • Agreement between JSW's Management Board and the trade unions dated 19 February 2018 (concerning remuneration for work on off days, Sundays and holidays, leave compensation and sick pay) and 28 March 2018 (regarding schools supplies and Miner's Card tickets), which introduced consistent rules for these benefits across JSW.
  • Agreement between the Management Board and the trade unions executed on 11 June 2018, pursuant to which on 1 June 2018 base pay rates increased and rules and authorisations for long-service bonus, i.e. Miner's Card, were harmonised across JSW.
  • Agreement executed on 2 July 2019 between the Management Board and the trade unions, pursuant to which on 15 July 2019 JSW's employees received an additional cash bonus.
  • Agreement between the Management Board and the trade unions executed on 24 October 2019 regarding a list of jobs entitled to preventive meals, as referred to in the Ordinance of the Council of Ministers of 28 May 1996. Moreover, on 6 November 2019 the Management Board and the trade unions signed an agreement on entitlement to meals for days worked by JSW employees that did not fall under the Ordinance of the Council of Ministers of 28 May 1996. The provisions of these agreements enter into force on 1 January 2020.

As regards risks related to remuneration, it should be noted that the market situation in 2020, i.e. inflation and wage growth at other companies, may result in employee/trade unions demands for wage increases.

Mutual relations between the Employer and the Employees are regulated by national laws and internal regulations. Some of them cannot be adapted to current market conditions and can constitute a significant burden on JSW's proper functioning. There is no collective bargaining agreement in effect at any of JSW's mines, the Production Support Entity and the Management Board Office. These agreements were terminated or, as in the case of KWK Budryk, the employer was required under art. 2418 §1 of the Labour Code to apply it for a period of one year from the date on which the mine became part of JSW. Rules for remunerating the employees of KWK Knurów-Szczygłowice result from an agreement executed at Kompania Węglowa in 2004. Despite this, JSW applies the rules contained in the aforementioned collective labour agreements and Agreements. A lack of internal labour law motivates the Employer to negotiate and implement a collective labour agreement. A draft collective labour agreement proposed by the Employer that incorporated the provisions of agreements dated 23 February and 16 September 2015 was criticised by the trade unions and by employees who read the draft after it was published on the website of trade union ZZ Jedność. Negotiations on the collective labour agreement were resumed at the beginning of 2016. Due to the comments raised by ZZ Jedność regarding compliance with representativeness conditions by certain trade unions, the negotiations were stopped. In March 2017, the District Court confirmed the representativeness of the trade unions ZOK NSZZ „Solidarność” JSW S.A., ZZ „Kadra” Pracowników JSW SA, Federacja ZZG JSW S.A. Currently, works on a collective labour agreement are suspended due to talks at a ministerial level regarding a supra-company collective labour agreement for the mining industry.

In accordance with labour laws, the Group pays employee benefits as follows:

  • post-employment benefits: retirement/disability severance payments, additional disability payments, post-mortem payments,
  • other long-term employee benefits: long-service awards,
  • other benefits for employees: unused holidays.

In its statement of financial position, the Group recognises an employee benefit liability in an amount corresponding to the present liability at the end of the reporting period, taking into account actuarial gains and losses. The amount of post-employment benefit liability in the form of defined benefit plans and other long-term employee benefits is calculated by an independent actuarial advisory firm using the projected unit credit method until this liability expires. Details on the amounts of benefits are presented in Note 7.14. to the Group's consolidated financial statements for the financial year ended 31 December 2019.

Employees have access to opportunities for raising their professional qualifications by attending post-graduate studies, industry conferences, seminars or symposiums as well as training organised by external entities and by participating in training and courses organised by the employer.

Detailed rules for accessing opportunities for raising qualifications are described in internal documents such as policies, rules and regulations. The Group is constantly engaging in the area of employee development programs, and management education is also of importance because the success of the Group's initiatives depends on the competences of its team leaders. We strive to ensure that people holding managerial positions know their roles well and have the knowledge and skills necessary to perform them properly.

On-going monitoring of employee turnover and employment structure by age, among other factors, makes it possible to identify sufficiently in advance competences that will have to be replaced in the nearest future. In connection with this, people replacing retirees are prepared sufficiently in advance. For selecting optimal development programs, some of the Group's companies have formalised employee competence evaluations that make it possible to quickly identify competences that need development at a given job and to search for employees whose level of competences qualifies them for a promotion.

In 2019, tens of JSW Group employees attended dedicated Executive MBA studies that were an element of a development program for the Group's management. Dedicated post-graduate studies are also organised in other specialised domains.

Number of training hours 2019 2018
Average per employee at JSW (in hours) 29.1 16.8
Average per employee at JSW Group (in hours) 15.0 8.1

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A proper diagnosis of the current organisational culture by conducting a cyclical employee satisfaction survey at JSW is a key element in implementing the Sustainable Development Strategy 2017-2020. The first survey, although planned for 2018, was completed already in December 2017. The next ones were conducted in December 2018 and 2019. The questionnaires are collected in boxes and are confidential, and the survey results, especially the critical ones, have become a valuable source of knowledge about areas that need improvement and repair. Having analysed the survey, a decision was made to continue activities intended to build a friendly workplace atmosphere, create a document outlining procedures for handling undesired occurrences and continue working on a harmonised collective bargaining agreement.