Polish Coal Giant JSW Warns of ‘Irreversible’ Consequences as Union Talks Collapse
Management pleads for compromise on cost-cutting plan, but unions accuse the company of trying to 'rob the workers' amid mounting losses.
Management at Jastrzębska Spółka Węglowa (JSW) has issued a stark warning to trade unions, stating that time is running out to save the troubled coal producer as it faces an “unprecedented” crisis.
In an open letter, the board appealed for a compromise on a restructuring plan, arguing that failure to act could have irreversible consequences for employees and the entire region. The plea came after talks on Tuesday aimed at temporarily reducing labor costs ended without an agreement.
“The scale of the challenges currently facing JSW is unprecedented, and the margin for action is shrinking every day,” the management board wrote. “Only an immediate compromise can save JSW from a scenario whose effects would be irreversible.”
Following the failed negotiations, union leaders declared that “there is not and will not be any consent to reach into the miners’ pockets under the pretext of saving the company.”
Unions Question Missing Billions
Sławomir Kozłowski, the head of the Solidarity union at JSW, sharply criticized the company’s proposal. He stated that unions received the restructuring plan on December 11 and a draft agreement on December 23, both with three-day deadlines for a response.
“The agreement assumes that the burden of the financial and economic costs of saving the company will fall on the shoulders of the employees: 80% of these costs on the shoulders of JSW’s miners. In short, this is a project designed to rob JSW employees,” Kozłowski said.
He also questioned the company’s financial management, pointing to its previously strong cash position. As of February 2024, JSW had 9 billion PLN, including 5.7 billion PLN in a stabilization fund, over 2 billion PLN in cash, and a 1.6 billion PLN credit facility, according to Kozłowski. “Where and on what was this money spent?” he asked, adding that no one is willing to discuss the matter.
Mounting Losses and Government Pressure
The standoff comes as JSW grapples with significant financial distress. On November 25, the company reported a net loss of 2.9 billion PLN for the first three quarters of 2025. Revenues stood at 7 billion PLN, with an EBITDA of minus 1.4 billion PLN.
The government has signaled its readiness to provide support, but officials have made it clear that any aid is contingent on an agreement with the unions. On December 15, Minister of State Assets Wojciech Balczun stated that JSW needs approximately 3 billion PLN in financing to ensure liquidity in 2026.
“We assume that part of the funds will come from the Reprivatization Fund, and the rest from the market. At the same time, JSW must carry out restructuring,” Balczun said.
JSW’s management reiterated this condition in its letter, noting that government support depends on the “cooperation of social partners.” The board stressed its responsibility for “the jobs of tens of thousands of people, the social security of mining families, and the stability of the Polish economy.”
While declaring its readiness to resume talks at any time, the board emphasized that any dialogue must account for the harsh market and financial realities the company faces.
