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No final position of the trade unions within the deadline set for negotiating an alternative to collective redundancies

The Management Board of PKP CARGO S.A. under restructuring (the “Company”) hereby announces that July 31, 2025 was the deadline for agreeing with the trade unions (“TU”) on the date for shortening the term of Company Collective Bargaining Agreement (“ZUZP”), which was to be an alternative to the group layoffs planned for the current year, about which the Company informed in its current report No. 34/2025 on June 6 this year.

The ZUZP is currently valid until mid-2026. In searching for an alternative solution to collective redundancies, the Company decided to submit a proposal to withdraw or exclude certain, most costly elements of the ZUZP, which, in the Company’s opinion, would enable it to achieve comparable savings effects as those assumed for the collective redundancies planned for 2025.

The lack of response from the social side meant that the above-mentioned proposal has not been accepted. Therefore, today the Company’s Management Board decided to commence the announced restructuring in the area of employment. In accordance with the assumptions of the Restructuring Plan, the process of collective redundancies will have to take place in September 30, 2025 and will affect up to 765 employees.

The change in the organization structure, effective as of August 1 this year, requires the Company to initiate a new 20-day consultation process with the trade unions. The criteria and scope of exemptions from redundancies remain unchanged from the arrangements agreed in June this year.