State ownership, trade unions and green transition: an analysis of the Polish coal industry

In this cycle of blog entries we commence to encapsulate main findings within the D2.2 - historical case study analyses as a part of the WP2. Specifically, we examined the impact of social dialogue on local actors’ responses to transformative processes shaping the world of work. Special attention has been paid to to the long-term effects of the unfolding transformations and assessing how social dynamics have affected equality. We also described the policy debate and social dynamics present in each case context with a focus on: challenges discussed in the public discourse; proposed solutions; socio-economic equality and inclusivity considerations; and reflections of confrontation or consensus seeking in social debate.

The first case study analyses the Polish coal sector by comparing two state-controlled companies: PGE Górnictwo i Energia Konwencjonalna (lignite mining) and Polska Grupa Górnicza (hard coal mining). Although both companies operate within the same national and EU policy framework, they show different trajectories of transformation.

The Polish case shows the dynamics of social dialogue and collective bargaining in Poland’s hard coal and lignite industries during the green transition, focusing on the comparison of the two companies: PGE (lignite mining) and PGG (hard coal mining).

PGE Górnictwo i Energia Konwencjonalna (PGE Mining and Conventional Generation) is a part of the PGE capital group, a Polish energy giant which, since 2020, has been implementing a strategy of transition to renewable energy sources with a significant (albeit less visible) role for digitalization. On the other hand, we selected Polska Grupa Górnicza (PGG) (Polish Mining Group), a company controlled by the State Treasury and located in Upper Silesia. It is a key organisation in the transformation processes of the Polish mining industry, and, at the same time, it is at the centre of major disputes between workers and trade unions and employers and, in the longer term, the state, represented by successive governments. Main rationale behind the decision to compare these two companies is as follows:

1) Ability to observe shifting between integrative to distributive bargaining as the social dialogue in each industry can be assessed ambiguously;
2) the green transition embedded not only in structural transformation of the country’s energy mix and employment in the mining sector, but also related to the political conflict (climate policy)

Based on secondary data, media sources, institutional documents, and an expert interview with a union leader the analysis reveals contrasting trajectories of transition. PGE pursued a managed transformation, integrating decarbonisation strategies with the Social Agreement signed in 2023 that provided employment protection, including severance pay, energy and miners’ leaves. Conversely, PGG exemplifies disrupted adaptation.

While the 2021 Social Agreement set a closure schedule to 2049 and guaranteed social protections, implementation remains partial, reflecting strong union leverage and politicized governance. Both cases illustrate oscillations between distributive and integrative bargaining, with attitudinal structuring evident in union-led negotiations in PGG in 2020-2021 period. Outcomes underscore the critical role of state ownership, political alliances, and EU conditionalities in shaping transition governance. The case analyses concludes that effective policy must combine long-term planning, robust social safeguards, and active labour market policies to mitigate risks of “passive transition” and ensure socio-economic stability in mono-industrial regions.