| | Conclusion of agreement with trade unions on reduction of employment in the Print segment of Agora Group
Regulatory filing
The Management Board of Agora S.A. ("Company") with its registered seat in Warsaw, in relation to regulatory filing no. 3/2018 dated February 1st, 2018, hereby informs about:
(i) concluding on February 7th, 2018 a trilateral agreement ("Agreement") with trade unions operating at the Company (which fulfills the provisions of article 3, Section 1 of the Act of March 13th, 2003 on Special Rules for Termination of Employment for Reasons Not Attributable to Employees) and with work council in the Company (which constitutes an agreement in accordance with the Act of April 7th, 2006 on informing and consulting employees),
(ii) adopting by the Management Board of the Company on February 7th, 2018 resolution to execute collective redundancies in the Print segment of the Agora Group, in accordance with the provisions of the Agreement.
The collective redundancies shall be executed from February 15th, 2018 until March 16th, 2018, and shall affect up to 53 employees of the Print segment of the Agora Group, i.e. ca 16.3% of all employees of the segment.
In accordance with the agreement, the laid-off employees will be provided by the Company with a wider range of supportive measures than required by law. The redundancy payment estimated according to law regulations shall be increased by indemnity in the amount equal to one additional monthly salary. The laid-off employees shall be supported by additional protective measures provided by the Company, inter alia, help in searching for new job or reskilling. Employees who will remain employed in the Print segment will have their basic remuneration increased, inter alia, due to the changed scope of duties. The Company, in accordance with requirements of law, shall submit an appropriate set of information, together with the signed Agreement, to a relevant Labor Office.
The estimated amount of provision for collective redundancies which will be charged to the Agora Group's result in 1Q2018, shall amount to approximately PLN 1.6 million. The Agora Group estimates that the restructuring measures my result in the annual savings may amount to approximately PLN 2.0 – PLN 2.5 million.
The Company shall provide its estimates of costs and savings related to the process of collective redundancies in the Management Discussion and Analysis for 1Q2018.
Legal basis: article 17, paragraph 1 of the Regulation of the European Parliament and Council Regulation (EC) No. 596/2014 of April 16th, 2014 on market abuse (Regulation on Market Abuse) and repealing Directive 2003/6/EC of the European Parliament and of the Council and the Commission Directive 2003/124/EC, 2003/125/EC and 2004/72/EC (Acts. Office. EC L 173, 06.12.2014).
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