Environmental & Social Information • Dec 14, 2023
Environmental & Social Information
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Current report (22/2023),Orange Polska S.A. - Warsaw, Poland14December 2023
(translation of Polish version)title:Orange Polska signed with trade unions the Social Agreement forthe years 2024-2025, under which up to 1100 employees may benefit fromvoluntary departures.
Pursuant to Art. 17 clause 1 of the Regulations (eu) no 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of OrangePolska S.A. ("Orange Polska") announces the conclusion of the SocialAgreement.
Orange Polska signed with trade unions the Social Agreement for theyears 2024-2025, under which up to 1100 employees may benefit fromvoluntary departures.
On 14 December 2023, the Management Board of Orange Polska concludednegotiations with the Social Partners on the terms of a new SocialAgreement that will be in force in 2024-2025. In parallel to negotiatingthe Social Agreement, Orange Polska completed negotiations on aSettlement for 2024 under the Act (dated 13 March 2003) on special ruleson termination of employment for reasons not attributable to employees.
In particular, the Social Agreement for 2024-2025 sets the number ofvoluntary departures in the next two years at 1100 people and determinesa financial package for employees leaving Orange Polska under thevoluntary departure scheme. It also provides for potential basic salaryrises (7% in 2024 and not less than 6% in 2025) and the amount ofadditional compensation for employees who will reach retirement age inthe next four years, while specifying the position and role of internalmobility with the support of the allocation programme. To employeeswhose contracts are to be terminated by the employer, the SocialAgreement provides opportunity to take advantage of the participation inthe job-seeking support program on the market (outplacement). Inaddition, the Social Agreement for 2024-2025 provides among others foractivities for a friendly work environment and continuation of medicalcoverage. Orange Polska also committed to keep its training budget atcurrent level in 2024-2025, which will support employees in upskillingand reskilling their competencies, in line with .Grow strategy.
The negotiated Settlement sets the number of employees to leave in 2024at 590 and determines the terms of voluntary departures as well as theamount of severance pay and additional compensation for employeesdeparting in 2024. The Settlement also specifies the rules and selectioncriteria to be applied to people whose employment will be terminated bythe employer for reasons not attributable to employees. The amount ofcompensation package per departing employee will depend on theircorporate seniority calculated in accordance with the IntragroupCollective Labour Agreement for Orange Polska S.A. employees.
Signing of new Social Agreement is a part of the implementation of theCompany's strategy, which focuses on the long-term value creationparticularly by improving operational efficiency. Management'spreliminary estimate of the provision for employment terminationresulting from the aforementioned agreement is at around PLN 130million. The final calculation will be covered in the accounts of thefourth quarter of 2023, with no impact on EBITDAaL.
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