Even 288 employees
at Podravka Group accepted the program of incentive severance pay, amounting approximately to HRK 37 million. This
would be the first round of redundancy programme, while the second round is envisaged
in autumn. The Company expects to repay the amount of
severance payments within 15 months from regular business activities.
Employees who
are leaving the company by 1st September 2012 will receive severance
pay of HRK 4000 net for each year of work at Podravka Group, and the employees included
in the second round of the redundancy program and are living the company by 30th
November 2012 will receive severance pay of HRK 3000 net for each year of work
at Podravka Group.
Redundancy
program went through process of consultations with the Workers Council. The severance pay amount per employee will be from HRK 40,000 to
164,000, depending on the years of service at Podravka Group.
All such changes
are being introduced with the purpose of aligning Podravka business with the
existing market economy conditions, and increasing the efficiency of business
processes and dealings.