Employment and Remuneration Trends in Polish Hard Coal Mines in the Context of the Relations Between Boards and Trade Unions

Izabela Jonek-Kowalska

Abstract


Abstract Purpose – The main purpose of the article is to identify the economic and financial consequences of a lack of cooperation between trade unions and the board in the Polish hard coal mining industry. Design/methodology/approach – The data from 24 hard coal mines were used in research to determine the level of remuneration and total productivity as well as connections between their values in the examined mining enterprises in the years 2005–2012. The Author formulated three research questions: (Q1) Is the increase in employee remuneration in the examined mining enterprises justified by the increase in workforce productivity? (Q2) Does the decrease in employment and excavation in the examined mining enterprises result in remuneration and total cost reduction? (Q3) What is the role of trade unions in determining efficiency in the examined enterprises? Findings – In the examined mining enterprises, trade unions mainly satisfy pay demands of employees as well as members of the board of trade unions in complete isolation from the current market situation and financial results of the examined enterprises. Research limitations/implication – Research results concern not only state-owned Polish mining enterprises but may also provide valuable information about the consequences of excessive privileges of trade unions for other industries. Practical implications – The results should help the union representatives to understand the role of economic priorities in surviving the mining industry in Poland. Research results and conclusions may be used in negotiations with trade unions and in shaping relations between trade unions and the board. Social implications – Research results should also be helpful in understanding the economic consequences of pay demands and absolute protection of workplaces by social stakeholders of mining enterprises. They could help in shaping attitudes of trade unionists in the process of restructuring negotiations. Originality/value – Originality of the research undertaken is connected with a microeconomic view of the examined mining enterprises and treating them as groups of 24 hard coal mines. An important aspect of the considerations conducted is also to present the role of trade unions in shaping remuneration and financial results of the examined mining enterprises. Paper type – Research article.

Keywords


hard coal mining industry in Poland; trade unions; mining enterprise management; productivity and remuneration in hard coal mining in Poland

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DOI: http://dx.doi.org/10.17951/ijsr.2014.3.0.27
Date of publication: 2015-05-22 13:06:46
Date of submission: 2015-04-22 16:38:34


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