Agreement with trade unions on redundancies

UNOFFICIAL TRANSLATION

12.03.2020 - Report 8/2020: Conclusion of an agreement with trade unions on collective redundancies

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank"), in relation to the current report no. 5/2020 dated 20 February 2020, informs that on 12 March 2020 the Bank concluded an agreement defining the principles of collective redundancies with seven trade unions operating at the Bank, including all representative trade unions.

The parties to the agreement agreed, among others selection criteria for employees whose employment contracts will be terminated and whose terms and conditions of employment will be amended as part of collective redundancies, severance pay conditions and additional compensation and the scope of the assistance program for dismissed employees. It was also agreed, that collective redundancies will be carried out from 13 March 2020 to 31 October 2020, however the Bank can solely decide to prolong this process for not more than 5 months. Collective redundancies will cover not more than 1,200 employees in case of termination of employment contracts and not more than 1,350 employees in case of amendment of terms and conditions of employment.

The Bank estimates all the costs amount of termination of employment contracts and amendment of terms and conditions of employment of Bank's employees related to the collective redundancies for approx. PLN 110-130 million and due to this the appropriate provision will be created in the Bank's accounting books.

Legal basis:

Article 17 (1) MAR - inside information