5. 9. 2006 - 142 employees to leave Czech Airlines with above standard severance pay
Prague, 5 September 2006
ČSA Board of Directors sanctioned 142 applications of ČSA employees for termination of employment under the OK Agreement (and thus further slimming down of the company by 142 positions) at its meeting today. These employees applied for the termination of their employment by agreement under a one-time offer and their applications were sanctioned. They are entitled to nine or ten average monthly salaries. Almost three quarters of these employees were in administrative positions.
A total of 287 employees applied for termination of employment under the OK Agreement between 14 and 24 August. All applications were assessed individually, considering safe and smooth operations of the company. About 50 % of applications were sanctioned.
The highest number of sanctioned applications is from so called administrative positions (74 %) and labourers (24 %). These employees will terminate their employment by agreement at the end of August, in exceptional cases later on.
Management positions slimming down also continues. In order to make the organisational structure more flat, additional 30 managerial positions have been cancelled in July and August, out of 174. Most of these managers are leaving the company under standard conditions, without enhanced social allowances.
At the turn of July and August, ČSA management offered all employees a social programme, OK Agreement, focused on voluntary termination of employment under economic and social conditions favourable to both parties. In order to reduce operating costs and slim down the organisational structure, the company set up an attractive social benefit in the amount of ten average monthly salaries for the employees who have been working at the company for 25 years and over, or have five and less years before old age pension or are self providers with a minor. Other employees in main employment could have received nine average monthly salaries.
The OK Agreement is one of the first steps to reduce company costs and meet the three-years restructuring programme OK 2006 – 2008 and to turn ČSA into a competitive and prosperous company in the long term. The results of the programme will bring ČSA an annual saving of 72 million on wages.
Results of the OK Agreement social programme:
- Number of applications: 287
- Number of sanctioned applications: 142
- Average age of leaving employees: 46 years
Number of sanctioned applications per years the employees worked at the company:
- Up to 3 years – 38 applications
- 4 – 15 years – 32 applications
- 16 – 25 years – 12 applications
- Over 25 years – 60 applications
Chart – Number of sanctioned applications per positions