Within the scope of the transformation process initiated at the beginning of 2014, employee surplus was established at Hrvatski Telekom, therefore the Company intends to terminate employment contracts on business-related grounds for approximately 160 workers. Activities have been initiated in line with the Labor Act and the Collective Agreement and will be conducted in the course of September and October.
HT is conducting the company transformation in order to set up the basis for future growth and expansion of operations under conditions of long-term economic crisis and continued deterioration of the Croatian telecommunications market.
Therefore, in the course of 2014 many actions were taken to increase operational efficiency; for instance, to make the organization more agile and more efficient, the organizational structure was streamlined and managerial positions were cut by 31 per cent.
Headcount reduction is part of an indispensable process of business optimization aimed at maintaining the Company's operational efficiency and ensuring stability and future business even under adverse economic conditions.
HT is approaching the collective employee surplus management process with a high level of social sensitivity and responsibility. At the moment of departure from the Company, employees will receive severance pay in amounts set forth by provisions from the Collective Agreement, the calculation will be based on the number of years of uninterrupted service in the Company. At the beginning of July a new Collective Agreement was signed with the representative unions, ensuring a high level of rights for HT employees.
Workers designated as surplus will be offered the option to enter a selection process for job positions where employees are needed, which pertains primarily to the Contact Center.