New Delhi: European Union's biggest coal producer, state-run PGG SA, has agreed to raise wages by 7 percent this year, ending a month-long dispute with unions, its Chief Executive Officer Tomasz Rogala said on Monday.PGG, which employees 43,000 people, will spend 280 million zloty ($81.44 million) this year on the wage rises.
"The scale of pay rises is safe for the company, will not threaten its stability and will allow to conduct planned investments," Rogala said after striking a deal with unions ending the collective dispute they held with the management.
Polish corporate wages rose 6.7 percent year-on-year in March to around $1450 a month, while unemployment fell to 6.6 percent. Despite that, inflation remains under the central bank's target and amounted to 1.3 percent last month.
Eastern Europe's biggest economy is ruled by eurosceptic Law and Justice (PiS) party that won a 2015 general election on promises of vast social spending. Since support for PiS fell recently, the party promised further spending on children, the elderly and tax breaks for small companies.