Massive layoffs at Hidroelectrica, all managers sacked

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Employees threaten to protest. 154 employees were already issued layoff notices, without receiving any compensation salary. The layoffs of some 500 will allow the company to save EUR 4 M.

The judiciary administrator of Hidroelectrica, a company controlled by the Ministry of Economy, which is going through an insolvency procedure since last June, signed layoff notices for 154 employees and slashed 161 more jobs that were vacant.Remus Borza, representing the judiciary administrator of Hidroelectrica, announced in a press conference yesterday that 36 employees will reach their retirement age this year and 500 more will be made redundant at the eight Hidroserv units controlled by Hidroelectrica, which cumulate a personnel of 2,500. Hidroelectrica also plans to merge all eight Hidroserv in just one entity by 28 February 2013. Remus Borza added that the personnel made redundant will receive no compensation salary, because the Hidrosind trade union refused to sign an agreement on granting 5-12 compensatory salaries. The layoffs will allow Hidroelectrica to save EUR 4 M. Sources with the Hidrosind union told Mediafax that the layoffs announced for Hidroelectrica are made without observing the collective work contract, so they will organise street protests starting next week. The leader of the Hidrosind federation, Decebal Sulea mentioned that the representative of the judiciary administrator, Remus Borza does not want to observe the collective work contract, although an additional document to the contract was also signed by Borza on 21 December 2012. Borza added that Euroinsol also decided to diminish by 50 pc certain bonuses and premiums, the daily allowance, the value of meal tickets and scrapped the fuel vouchers. According to Borza, cutting these costs will save EUR 10 M for Hidroelectrica each year.

New managers to be selected through contest

The judiciary administrator announced that all the managers of Hidroelectrica were removed from office and the position of general manager will be filled following a contest. The former general manager of the company, Stefan Gheorghe became deputy manager.He said that the top management is responsible for the poor results of a company. “(…) When a company performs poorly, the top management must answer for it, not the employees or the Romanian people. These managers have been appointed on political criteria, but they will be allowed to prove their competencies in a contest,” Borza explained. Euro Insol outsourced the services of psychological expertise and labour medicine provided to the company and the layoffs will target employees from the IT, HR and financial accounting departments. Stefan Gheorghe told Mediafax that he will participate in the contest for the office of general manager. He commented the changes in the top management of Hidroelectrica saying that they represent an attempt to “reposition” the staff of the company. According to the same source, Hidroelectrica can leave the insolvency procedure on June 26. “From a financial point of view, the company is prepared to leave the insolvency in June,” Borza said. Euro Insol, the judiciary administrator of Hidroelectrica, estimates that the electricity producer will return to profit this year, with a gain of RON 430 M, after losses of RON 170 M in 2012. He added that the energy output for this year is estimated at 13 TWh, up from 11.8 TWh last year, while the incomes of Hidroelectrica are expected to reach RON 2.7 bln, from RON 2.3 bln in 2012.