KGHM unions demand wage increase due to higher than predicted inflation

Two major trade unions in KGHM Polska Miedz (KGHM), Solidarnosc and Zwiazek Zawodowy Pracownikow Przemyslu Miedziowego (ZZPPM) are demanding a 13% salary increase. Union representatives agreed at the beginning of the year that salaries in 2000 are to increase 9%. The management of KGHM fulfilled its obligation. Raises were paid on Jan. 1 of 7% and on May 1 a further 2%. Trade union representatives, however, decided that as the inflation rate is higher than 5.7% (10.2% in June) assumed during negotiations they have a right to demand 4% more. The second factor, fuelling the trade unions, is that KGHM has earned zl. 297.5 million profit in the first half of the year. The results were due to a positive balance between production costs, which is now $1,341 per tonne of copper and the current market price for copper which has averaged $1,768 per tonne. The management is supposed to meet with trade union representatives to discuss the issue and to present the strategy of the company. (Rzeczpospolita, page B3)