Appeal to the Prime Minister for “immediate intervention”

Eight trade unions from Grupa Azoty Puławy wrote to the Prime Minister Donald Tusk for “immediate intervention” in connection with the bad situation in the company. “The current situation of Zakłady Azotowe Puławy is dramatic. We are standing a few millimeters above the abyss” – the unionists warn in the letter. As the reasons for this situation, they mention “errors in the management of the company in recent years” and external factors such as the pandemic or the outbreak war in Ukraine. They stressed that this also concerns factors “on which the Polish State has or should have influence”.

According to the unionists, “uncontrolled import of Russian fertilizers, which according to our knowledge are re-exported to Ukraine, import of plastics not burdened with climate costs” are the causes of “our tragic economic situation”. “Without the intervention of the Polish State in these areas, we are threatened with bankruptcy” – it was noted. In addition NSZZ Solidarity The Inter-Enterprise Organization of Grupa Azoty Puławy, the Inter-Enterprise Trade Union of Employees ZA Puławy, the Trade Union of Continuous Operation Employees ZA Puławy and the Inter-Enterprise Organization of the Trade Union of Engineers and Technicians at Grupa Azoty ZA Puławy submitted in a letter dated 5 September this year addressed to the Management Board of Grupa Azoty Puławy reservations regarding the justification for terminating the Collective Labor Agreement (ZUZP) of 22 March 2006. On 29 August this year, the Management Board of Grupa Azoty Puławy informed the trade unions of its intention to terminate the ZUZP. The decision was preceded by negotiations, in which no common position was reached with the trade unions. As indicated at that time by the Management Board of Grupa Azoty ZA Puławy, the ZUZP will be terminated upon the expiry of the three-month notice period, which Grupa Azoty Puławy will be authorized to submit after conducting the negotiation procedure specified in the ZUZP with the unions. The Management Board noted that the procedure will be carried out if the unions, within 7 days of being notified of the intention to terminate the Collective Labour Agreement, submit objections to such intention to terminate the Collective Labour Agreement.

The unions indicated that the intention to terminate the Collective Labour Agreement is “directly inconsistent” with the social contract concluded on 15 September 2014 between the company Grupa Azoty in Tarnów, Zakłady Azotowe Puławy, and the company trade unions. The social contract provides that, among others, the Collective Labour Agreement of 22 March 2006 will remain unchanged. The union members also do not agree to transferring responsibility to the staff for “the lack of proper and effective response of the company's authorities to the market problems and then financial problems occurring since mid-2022”, which – as indicated by the trade unions – the current management board of Grupa Azoty Puławy drew attention to when informing the staff on 29 August this year of the intention to terminate the Collective Labour Agreement. “Over the last two months, we have been trying to work out a common position on the Collective Bargaining Agreement with the unions. We have in mind that such agreements were signed in Tarnów, Police and Kędzierzyn-Koźle, where the Unions have shown full understanding of the financial situation in which the current management board of Grupa Azoty found the company,” indicated Hubert Kamola, vice-president of Grupa Azoty and president of Grupa Azoty Puławy at the end of August. He also pointed out that in all actions and decisions taken, including negotiations on the Collective Bargaining Agreement, the management board must take into account the schedule implemented in talks with banks. “Our priority is to reach a long-term agreement with financial institutions and stabilize the financial situation. In order to achieve this goal, in addition to business activities, it is necessary to optimize costs, including in the area of ​​remuneration within the Capital Group,” indicated Kamola at the time.

On August 1, 2024, Grupa Azoty signed an annex with financing institutions extending the term of the agreement regarding the financing of the company until October 11, 2024. In Q1 2024, Grupa Azoty Zakłady Azotowe Puławy had consolidated sales revenues of PLN 902 million (PLN 1,229 million in Q1 2023) and EBITDA of minus PLN 79 million (minus PLN 253 million in Q1 2023), with an EBITDA margin of minus 8.8% (minus 20.6% in Q1 2023) and a net loss of PLN 146 million (in Q1 2023, the net loss amounted to PLN 282 million). Grupa Azoty Puławy is a company belonging to Grupa Azoty, the second largest producer of nitrogen and compound fertilizers in the EU. Grupa Azoty is the only producer of melamine in Poland. It also produces products such as polyamide, OXO alcohols, plasticizers and titanium white. Grupa Azoty is a joint-stock company, in which the State Treasury holds 33% of shares. The group also includes: Grupa Azoty Police, Grupa Azoty Kędzierzyn, Zakłady Chemiczne Siarkopol.