6.3.1.1. Workforce streamlining within the Group
In accordance with the PGNiG Group Efficiency Improvement Programme, PGNiG Group companies are implementing programmes related to workforce streamlining. The Programme is part of initiatives designed to improve the Group’s cost effectiveness and organisational efficiency pursued under the PGNiG Group’s Strategy for 2014–2022, adopted in December 2014.
Key workforce streamlining initiatives implemented by Group companies in 2016 are presented below.
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| Company | Workforce restructuring/streamlining process |
| GEOFIZYKA Kraków S.A. w likwidacji (in liquidation) |
In connection with the ongoing liquidation process at GEOFIZYKA Kraków S.A. w likwidacji (in liquidation), on August 4th 2016, a collective redundancies programme was announced under the Act on Special Rules Governing Termination of Employment for Reasons Not Attributable to Employees (Dz.U. of 2015, item 192). The company expects the severance payments under the collective redundancies programme to total PLN 4.7m. During the notice period, the employer may release an employee from the duty to work, provided that the employee retains the right to remuneration. The cost of remuneration for reduced notice period without the duty to work will amount to PLN 0.5m. |
| Exalo Drilling S.A. | Given the deteriorating market environment, the company launched a comprehensive turnaround plan covering all key areas of its operations. As part of the plan implementation, the company succeeded in optimising its workforce number, adapting it to the market situation. In 2016, employment contracts were terminated with 896 persons. Under the Voluntary Redundancy Programme, 157 employees departed from the company, while notice periods are running with respect to additional 9 persons. Workforce reduction cost incurred in 2016 totalled PLN 14.6m. |
| PGNiG S.A. | In 2016, the Company launched a new edition of the Voluntary Redundancy Programme as part of the employment restructuring and streamlining process implemented at PGNiG for a few years. Access to the Programme was voluntary. An employee who joined the Programme and obtained the employer’s consent had the right to terminate their employment by mutual agreement, on favourable conditions (retaining the right to benefits and compensation defined in the Rules of the Voluntary Redundancy Programme). While the Programme was addressed to all employee groups, it was employees of pre-retirement age who were offered an especially attractive benefit package. In 2016, 164 employees departed under the Programme. The related costs were estimated at PLN 14.6m. |
