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14/2020 Completion of the consultation procedure with the trade union regarding a temporary reduction in the cost of remuneration in the Agora Group
Regulatory filing
Management Board of Agora S.A. with its registered office in Warsaw ("Company", "Agora"), with reference to the reports: No. 10/2020 of 23 March 2020 on the negative impact of a pandemic on the results of the Agora Group and No. 13/2020 on commencing on 6 April 2020 consultation procedure with the inter-enterprise commission of NSZZ "Solidarność" Agora SA and Inforadio Sp. z o.o. (“Commission”) regarding actions planned by the Company to reduce the staff cost in the Group, including, inter alia, a temporary reduction by 20% remuneration paid on the basis of employment contracts, mandate contracts and service contracts for the period of six months in companies subject to the Commission's action, informs about the conclusion of an appropriate agreement on this matter on 15 April 2020.
The Management Board of Agora estimates that the total savings due to the temporary reduction of remuneration in the Group should amount to approximately PLN 25.0 million. Additionally, selected companies from the Group will apply for co-financing of remuneration from the Guaranteed Employee Benefits Fund.
According to the information provided by the Company in the current report no. 10/2020 of 23 March 2020, the COVID-19 pandemic and government administration measures undertaken to limit the further spread of the virus will have a significant negative impact on the financial results of Agora and its subsidiaries in the second quarter of 2020. The observation of the development of the pandemic in Poland and in the world, as well as its effects on the economy and operations of the Group, substantiates the continuation of its negative impact on the results of Agora and its subsidiaries in the third quarter of 2020. Decision to temporarily lower remuneration and staff costs is another of a series of necessary and ongoing savings measures carried out within the Agora Group, which are aimed at mitigating the negative consequences of a pandemic, including the inability to conduct business operations in selected sectors.
Negotiation process regarding arrangements for the group layoffs in Goldenline Sp. z o.o. is not finished yet. The company will inform about its course separately.
Legal basis: Article 17 § 1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Regulation on market abuse) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/124/EC, 2003/125/EC and 2004/72/EC ((Official Journal EC L 173 of 12/06/2014).
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