Social Benefit Funds
In KGHM, each of the Company’s divisions has its own Social Benefit Fund. The total average contribution to the Social Fund (basic and additional, under the Collective Labour Agreement), per employee amounted in 2014 to over PLN 6 thousand. This contribution allows the social needs of employees to be met to a considerably higher degree than the standards followed in other companies. In total, the number of the above-mentioned contributions (i.e. statutory and additional) amounted in 2014 to PLN 115.5 million. Nearly 18 400 employees and almost 16 500 pensioners are covered by the Fund. Family members of the employees are also covered by the benefits.
Selected benefits from the Company’s Social Benefit Fund in 2014
| Lp. | Details | 2014 | ||
|---|---|---|---|---|
| Number of benefits used by employees | Number of children | Amount of benefits paid (in PLN thousands) | ||
| BENEFITS | ||||
| 1 | Holiday benefits | 18 474 | 46 671 | |
| 2 | Refund of holiday travel costs | 7 329 | 1 356 | |
| 3 | Preventative healthcare holidays | 443 | 1 474 | |
| 4 | Education expenditures subsidies | 7 510 | 10 490 | 24 076 |
| 5 | Co-financing of holiday retreats for children and youth | 4 481 | 4 904 | 8 545 |
| 6 | Co-financing of fees for nurseries, pre-schools and clubs for children | 2 648 | 3 202 | 1 437 |
| 7 | Financial support for employees in the form of vouchers, coupons, prepaid cards | 12 050 | 8 286 | |
| 8 | Co-financing of sport, recreation, and tourism | 51 573 | 8 334 | |
| 9 | Co-financing of culture and education | 5 755 | 723 | |
| 10 | Co-financing of employees’ holidays (apart from holiday benefits) | 1 506 | 1 701 | |
| 11 | Allowances | 6 468 | 4 914 | |
| Benefits in total | 118 237 | 18 596 | 107 516 | |
| LOANS FOR HOUSING PURPOSES | ||||
| 1 | Loan for purchase/ building of a flat/ house | 505 | 24 170 | |
| 2 | Loan for housing renovation and modernization | 1 304 | 11 245 | |
| 3 | Other loans | 232 | 2 049 | |
| Loans in total | 1 809 | 37464 | ||
Employee Retirement Program
Since 2005, KGHM has had an Employee Retirement Program in the form of an employer contribution (7 percent contributed to the investment funds). Participation in the program is voluntary. Employees can also declare and pay additional contributions into the fund they choose.
Assets of Employee Retirement Program as at 30 December 2014 (PLN)
| Division | Assets as at 30 December 2014 | Average assets | Number of persons |
|---|---|---|---|
| Lubin mine | 139 827 708 | 3 364 | 41 566 |
| Polkowice-Sieroszowice mine | 193 832 984 | 4 862 | 39 867 |
| Rudna mine | 215 313 613 | 4 899 | 43 951 |
| Legnica smelter/refinery | 31 534 706 | 890 | 35 432 |
| Głogów smelter/refinery | 87 795 993 | 2 461 | 35 675 |
| Cedynia wire rolling mill | 8 986 495 | 225 | 39 940 |
| Concentrators | 35 735 579 | 913 | 39 141 |
| Tailings Plant | 11 344 009 | 335 | 33 863 |
| Emergency Mine-Smelter Rescue Unit | 4 516 277 | 111 | 40 687 |
| IT Division | 9 217 652 | 243 | 37 933 |
| Head Office | 37 898 582 | 708 | 53 529 |
| Total | 776 003 598 | 19 011 | 40 819 |
Medical Care Package
Employees and their families can join the Medical Care Package program in KGHM Polska Miedź S.A. The employer covers the costs of employees’ monthly contributions, whereas in the case of family members, it is the employee who is responsible for the payments. The monthly contribution amounts to 35 PLN per person. Holders of the MCP cards can take advantage of a wide range of specialists and medical examinations.
Functioning of the medical care package as at 31 December 2014
| Division | Employment as at 31 December 2014 | Number of employees having joined the package | Percentage share |
|---|---|---|---|
| Lubin mine | 3 266 | 1 880 | 58 per. |
| Polkowice-Sieroszowice mine | 4 614 | 2 411 | 52 per. |
| Rudna mine | 4 476 | 2 662 | 59 per. |
| Głogów mine | 2 448 | 1 356 | 55 per. |
| Legnica mine | 879 | 623 | 71 per. |
| Cedynia wire rolling mill | 232 | 144 | 62 per. |
| Concentrators | 922 | 586 | 64 per. |
| Tailings Plant | 355 | 239 | 67 per. |
| IT Division | 240 | 172 | 72 per. |
| Emergency Mine-Smelter Rescue Unit | 112 | 86 | 77 per. |
| Head | 624 | 529 | 85 per. |
| Total | 18 168 | 10 688 | 59 per. |
Employees insurance
KGHM guarantees its employees life insurance coverage.
The contribution financed by the employer amounts to 25 PLN monthly.
All the above-mentioned benefits are available for all employees - in KGHM Polska Miedź S.A. full time employees and permanent or part time employees are treated the same in terms of additional benefits.