The Order of 1 August 1996 of Minister for Industry and Energy governing aid for the coverage of exceptional charges for the mining of coal referred to a number of questions for its implementation.

These questions referred, in particular to the content and calculation aspects of the two types of aid referred to in that order, namely those associated with the reduction in the closure of production capacity and the costs related to the labour costs, as well as the system of justification and subsequent payment thereof.

In its virtue, this Secretary of State has resolved:

First. Aid for the reduction of production capacity. Calculation. The amount of aid for the reduction of production capacity shall be that resulting from the application of the following rules:

A value of X pesetas with reduced thermal size shall be applied to the total of reduced coal thermine, which shall be of a maximum value, with the maximum values being:

X = 2.01 for supply reduction greater than 40 per 100.

X = 1.50 for supply reduction below 40 per 100.

X = 2.51 for closure.

Termine reduction will be calculated based on the following expression:

th reduced = T. PCS-T. PCS.

Where:

T are the supplies guaranteed in the 1995 financial year.

T is the guaranteed supplies for the year after the closure or reduction.

PCS: Higher calorific power of the supplied coals.

Second. Aid for the reduction of production capacity. Justification.-The mining companies which have obtained the approval of a plan to reduce production capacity or to close the business, in accordance with the provisions of the Order of 1 August 1996 of Minister of Industry and Energy In the case of aid for coal mining, aid for the coverage of exceptional charges for coal mining must be provided for in the case of aid for the reduction of production capacity through the submission of the following documentation:

Audit report signed by independent auditor enrolled in the Official Audit of Accounts Auditors.

Accreditation of compliance with legal requirements regarding the closure of the holding in cases where appropriate.

Written resignation of the company to the ownership of the mining concession which corresponded to it before the competent authority or, where appropriate, expressly disclaims the lease.

Joint resignation of the electrical company and the mining company to the supply contract or, where appropriate, the certificate of the electrical company of the guaranteed supply once the reduction has been made.

The documentation referred to must be sent to the Directorate General of Mines within the time limit determined in the resolution approving the aid.

Third. Aid for the reduction of production capacity. Payment. The payment of the aid for the reduction of production capacity will be made by OFICO, which will pay them directly to the company once the closure or reduction of supply has been made effective and the supporting documents have been provided refers to the previous paragraph.

However, on the total amount of aid that corresponds to the company for this OFICO concept, it will perform the following mini-sentences:

The amount of ECSC aid to which each mining company is entitled, which may be subject to regularisation later. In cases where the mining undertaking has not formally applied for such aid or no longer meets the formal requirements for granting it, the estimated amount of such aid shall be final and shall not be subject to regularisation. back.

The amount representing 45 per 100 of the compensation that the company would have to pay to the workers, in cases where OFICO is authorized to make such payment.

Fourth. Aid for labour costs. Content and calculation.-Aid for labour costs arising from the reduction or closure of production capacities of mining companies shall cover, with the amounts defined below, the following assumptions:

(a) Indemnities. -For fixed workers in staff who prove that this situation is before 1 January 1995, as well as for casual workers who prove that they have paid contributions to the Special Scheme of Mining For at least three years, up to 55 per 100 of the sums to be paid by the undertaking to such workers shall be paid up to 55 per 100, without the total amount of such compensation exceeding 6,500,000 pesetas on average per worker and company.

The amount of compensation may be increased by 3,500,000 more pesetas in the case of first-degree silicotic workers, provided they prove this circumstance by certification issued by the official body. within two years of the date on which they are due to leave the company.

(b) Preretirements. -Workers of the mining companies that are included in the plan for reducing production capacity or closing business may be eligible for pre-retirement aid, provided that the Following conditions:

That they are fifty-five or more years of equivalent age, without limit in their natural age, and that before or when they are sixty-two years of physical age they have reached sixty-five years of equivalent age.

That they have listed a minimum of eight years for the Special Regime of the Mining of Social Security, appearing as staff hired by the company prior to January 1, 1995.

In these cases, the worker is guaranteed 76 per 100 of the average monthly gross wage salary calculated on the basis of the six months actually worked prior to the incorporation into the system. For these purposes, the months in which the work has been carried out shall be considered to be at least 19 days.

For the purpose of calculating this compensation, the amounts received by the worker as a result of overtime, and in no case the monthly average of the salary, shall not be taken into account for gross ordinary salary. Gross ordinary wage remuneration may exceed by more than 8 per 100 the average salary of the twelve months preceding the period on which the valuation is carried out.

The guaranteed quantities will have as a maximum monthly ceiling an amount equal to the amount of the maximum contribution base for accidents of work of the General System of Social Security in force at the date of the the employment relationship is extinguished.

The salary guarantee supplement will be updated annually by increasing it in the percentage that is lower between the previous year's consumer price index or 3.25 per 100. This increase will be cumulative.

Also, for workers eligible for pre-retirement, the additional contributions to Social Security are guaranteed according to the standard bases in force each year, which will be effective by signing the corresponding special conventions.

(c) Early retirement. -Workers in the mining companies who are included in the plan to reduce production capacity or close business may be eligible for the early retirement scheme, provided that they are comply with the following conditions:

Have fifty-eight or more years of physical or bonified age.

That they have listed a minimum of eight years for the Special Regime of the Mining of Social Security, appearing as staff hired by the company prior to January 1, 1995.

In such cases, workers will be entitled to early retirement aid and social security contributions corresponding to them in accordance with the Order of the Minister for Labour and Social Security of 5 October 1994.

In addition, it will be up to them to supplement the wage guarantee which will allow the aid referred to in the previous paragraph to be equal to those set for pre-retirement cases, in this case the same revaluation criteria and ceilings as set out in the previous paragraph.

(d) Other contingencies. -In the event of the death of a worker who has received the pre-retirement scheme or early retirement before reaching retirement age, the spouse or, failing that, children under the age of twenty-six have the right to receive, in one and the same time, the mathematical provision of the income corresponding to the salary guarantee allowances to be recovered. The same rights shall correspond to those workers who are declared to be in a situation of absolute permanent invalidity or invalidity.

In the case of workers covered by pre-retirement or early retirement measures, their incorporation into any work incompatible with the existing pension system will result in the loss of the economic rights of the the system to which they are welcomed.

Pre-retirement or early retirement aid will not be compatible with the aid for compensation, without prejudice to the rights which, where appropriate, the worker has in front of his undertaking.

Fifth. Aid for labour costs. Justification.-The labour cost aid shall be payable once the undertaking has accredited to the Directorate General of Mines that it has obtained the appropriate authorization from the competent labour authority for the termination of the employment contracts, in accordance with the procedures laid down in the Royal Decree of Law 1/1995 of 24 March, approving the recast of the Law of the Workers ' Statute, Articles 51, 52.c) and 53, as appropriate in each case.

Sixth. Aid for labour costs. Payment. The payment of the aid for labour costs shall be made once the calculations, guarantees and controls provided by the competent bodies are available. This payment may be made directly by OFICO to the workers.

Seventh. Aid for labour costs. Follow-up Committees. -In order to resolve all the incidents that may arise in the process of liquidation of these aids, the Provincial Monitoring Committees will be set up, in which the General Administration of the State and the social partners concerned, the operation of which shall be governed by the internal rules laid down by the parties.

Eighth. Entry into force. This Resolution shall enter into force on the day following that of its publication in the Official Gazette of the State.

What I communicate to V. E. and VV. II. for their knowledge and effects.

Madrid, 2 August 1996.-The Secretary of State, Nemesio Fernández-Cuesta.

Excmo. Mr President of the Commission of the National Electrical System, Ilmas. Sras. Director-General of Energy and Director General of Mines, Mr. Director-General of OFICO and Messrs. Presidents of UNESA and CARBUNION.