The volunteer resignation process of OTE employees ended. The Greek national telecommunication company was privatized and its management was taken over by German giant Deutsche Telecom. The volunteer resignation was prolonged due to administration problems connected with recognizing military services as part of the internship.
After some legal arguments the officially resigned 601 people (49 years old and up) won their right to some benefits in accordance to the Voluntary Resignation Agreement. Some of them are receiving their full pensions, one time financial support from the Retirement Fund and a onetime money reward of €5000 to €30 000, depending on how close the person is to retirement. In order to cover the needs of the company, OTE announced it has hires 87 new employees.
OTE’s profit for the second half of year has dropped with 97% due to fact that it took three years for 601 employees to leave, which cost the company €152 million. The result of this financial baggage will affect the company worse during the upcoming 2010. “If cutting staff members is done right, 2000 people will be released from their jobs without hurting the business of the company and another 500 can be hired,” said Panagis Vorloumis – executive director of OTE.
The management of the company is working on a new plan for cutting staff members (right now their number is 12 000), which is based on the level of productivity of the employee. This is a personal level approach, which will give opportunity for managers to evaluate the productivity of their departments. The ones chosen will be offered a financial stimulus for leaving voluntarily.
Citigroup, stockholder in OTE, also announced that they will let go of 1500 employees during the period 2010-2011, based on the voluntary resignation program.
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