Notifying trade unions of significant operational changes

Pursuant to the PKN ORLEN Collective Bargaining Agreement and the agreement on the terms of collaboration with social partners in carrying out restructuring processes at Polski Koncern Naftowy ORLEN S.A. and on employee rights in respect of these processes, concluded on March 27th 2006 in Płock, the trade unions represented at PKN ORLEN are to be informed of any planned restructuring processes in advance, a specified number of days before such processes take place. Depending on the process, this notification period may be:

  1. 45 days – for any of the following restructuring processes: a. establishment of a new entity to take over a part of PKN ORLEN’s operations or PKN ORLEN as an employer within the meaning of Art. 231 of the Labour Code, b. transfer to another entity of a part of PKN ORLEN’s operations or PKN ORLEN as an employer within the meaning of Art. 231 of the Labour Code;
  2. 35 days – for restructuring processes resulting in mass redundancies within the meaning of the Act on Special Rules Governing Termination of Employment for Reasons Not Attributable to Employees of March 13th 2003 (the "Act on Special Termination Rules");
  3. 20 days – for less extensive restructuring processes, for which PKN ORLEN S.A. plans individual redundancies on grounds specified in the Act on Special Termination Rules (either through employment contract termination or by mutual agreement, or involving amendment to working or remuneration conditions through a notice of termination amending the contract of employment), where such terminations affect between 15 and 29 employees in a 30 day period;
  4. 7 days – for the reorganisation of an organisational unit or task team, for which PKN ORLEN S.A. plans individual redundancies on grounds specified in the Act on Special Termination Rules (either through employment contract termination or by mutual agreement), where such redundancies affect no more than 14 employees in a 30 day period.

The indicated periods are longer than those specified in Polish law (for processes considered in items 1 and 2). Although not legally bound to do so, we provide trade unions with information on less extensive restructuring processes (item 3) and reorganisation processes (item 4), which shows that the Company collaborates with the social partners in a transparent manner and in accordance with the principles of social dialogue.