ZAGREB, 15 September 2010– The Management Board of INA, d.d. passed today a decision on the workforce surplus and to launch legally prescribed procedure with an objective to design a Workforce Restructuring Program.
The program comprises 1,500 employees which equals 9% of total 16,300 employees in INA Group, INA starts the redundancy program respecting a social dialogue with all three unions. Cooperation and social dialogue with the unions will continue during the whole period of program execution.
INA’s main objective is to sustain on the long-run its position in the Croatian economy, to be a stable and reliable employer and a business partner to its suppliers and customers. To achieve these long-term objectives, it is unavoidable to increase efficiency in all areas of business operations. After having undergone a massive investment cycle, INA has to address its employment level. With the launch of this program we will make necessary changes in the structure and number of employees and preserve INA´s stability in a continuously challenging business environment driven by global and regional oil market trends. I would like to emphasize that we will realize this program in a socially responsible manner and in a dialogue with all three our unions,.” stated Bojan Milković, CEO of INA, d.d.
INA, d.d. launches the program in order to secure its future efficiency. For the future development of our company, we have started several optimization measures over the past two years. While regional oil companies have focused on dramatic cost-cutting, primarily by decreasing their workforce, INA was focussing on strategic investments and other-than-workforce optimization measures.
Comparative analyses show that INA is overstaffed. The increasingly competitive environment forces INA to address this question. As an example, about 25 percent of INA employees are employed in corporate functions and administration, whereas the comparable staffing level in competitive oil companies amounts to 10 percent.
INA will pay on average larger severances than in any of its previous redundancy programs. Besides severances, INA will ensure that the redundant employees are paid for their notice period.Documents