Conclusion of an agreement with trade unions

UNOFFCIAL TRANSLATION

23.03.2021 - Report 10/2021: 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. 8/2021 dated 3 March 2021, informs that on 23 March 2021 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 24 March 2021 to 30 June 2021. Collective redundancies will cover not more than 1,110 employees in case of termination of employment contracts and not more than 1,250 employees in case of amendment of terms and conditions of employment.

The Bank estimates the total amount of costs related to termination of employment contracts and amendment of terms and conditions of employment of Bank's employees as part of the collective redundancies for approx. PLN 100-120 million gross and due to the above the appropriate provision will be created in the Bank's accounting books.

Legal basis:

Article 17 (1) MAR - inside information