40. Restructuring Process within the Group
In 2013, the Programme for Workforce Streamlining and Redundancy Payments to the Employees of the PGNiG Group for 2009–2011 (Stage 3) (the “Programme”), approved by the Extraordinary General Meeting of PGNiG S.A. on December 11th 2008, was continued. By virtue of a resolution of the Extraordinary General Meeting of PGNiG S.A. of December 7th 2011, the term of the Central Restructuring Fund (CRF) was extended until December 31st 2015. The Programme will therefore expire on December 31st 2015, unless one of the Parties (the PGNiG Management Board or the Social Partner) terminates the Programme prior to that date.
The Programme is based on a stand-by principle, which means that it may be launched in special circumstances and requires the entities covered by it to use a uniform procedure. Any decision to use funds under the Programme may only be made where it is justified by the scope of planned restructuring involving workforce downsizing and/or liquidation of jobs.
The costs of redundancy payments to which laid-off employees are entitled under the Programme are covered from the CRF, which is at the disposal of the General Meeting of PGNiG S.A., or with other funds accumulated for that purpose by the entities participating in the Programme. The Group discloses CRF under "Employee benefit obligations".
On August 10th 2011, by virtue of a resolution of the Extraordinary General Meeting of PGNiG S.A., an Annex to the Programme was approved, introducing a possibility to use the funds accumulated in the CRF account to support the streamlining initiatives undertaken by PGNiG S.A. and a possibility for the entities covered by the Programme to create similar funds with a view to securing financing for their workforce streamlining expenses. The functioning of such funds is governed by the rules applicable to the CRF.
The entities which were listed in the terms of the Programme as entitled to implement the Programme (subject to relevant resolutions being passed by their respective general meetings), and whose difficult financial standing rendered it impossible to cover all costs of the employment restructuring required under the Programme without financial aid, may apply for assistance from PGNiG S.A.’s capital reserve designated as Central Restructuring Fund (subject to approval by the General Meeting of PGNiG S.A.) to finance payments to former employees with whom employment contracts were terminated.
In the reporting period, the following one-off redundancy payments were made from the Central Restructuring Fund:
- to 138 former employees of PGNiG Technologie S.A., for a total amount of PLN 7.6m;
- to 46 former employees of GEOFIZYKA Kraków S.A., for a total amount of PLN 2.3m;
- to 22 former employees of PNiG Jasło S.A. (a branch of Exalo Drilling S.A. since February 1st 2013), for a total amount of PLN 0.8m.
In 2013, requests to use the Programme to cover the costs of one-off redundancy payments from the Central Restructuring Fund were submitted by the following entities:
- Exalo Drilling S.A. – to cover the costs of one-off redundancy payments to 39 employees, for a total amount of PLN 2.3m (the request was rejected);
- BUD-GAZ Sp. z o.o. w likwidacji (in liquidation) – to cover the costs of one-off redundancy payments to 15 employees, for a total amount of PLN 1m.
After payments requested by BUD-GAZ Sp. z o.o. w likwidacji (in liquidation) are made, the balance of the Central Restructuring Fund will be PLN 2m.
PGNiG Group companies are also implementing other programmes related to workforce streamlining, including Voluntary Termination Programmes.
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