Annual Report 2009

A N N U A L R E P O R T 2 0 0 9 20 REPORT BY THE BOARD OF DIRECTORS Because the Company reduced the headcount in 2009, a significant part of the expenses included severance and retirement payments amounting to EUR 2 071 thousand and EUR 325 thousand, respectively. Also in 2009 the Company put emphasis on the education of its future workforce. Owing to the general and professional education of its future employees at the Private Secondary Apprentice School of Metallurgy of Železiarne Podbrezová – metallurgists, electricians and mechanics, and at the Private Secondary Grammar School of Železiarne Podbrezová, in the future the Company will have a qualified workforce with the skills required to seamlessly commence employment. After graduating in 2009, 36 graduates were hired; in 2010, 63 graduates are expected, 36 of whom will be employed by the Company. In addition 16 apprentice students will complete 3 year studies, of which 10 will be hired by the Company and 6 will continue in advanced studies. Also in the coming years we will make sure that if the students are interested in working for us, we will provide them with sufficient information on the professional specialisation desired at the Company. At the same time, we closely cooperate with universities, mainly with the Technical University in Košice, which facilitates, under a contract, an external bachelor’s study programme for the Company's employees. In 2009, 14 employees continued in the first grade and 19 employees continued in the second grade of second level (master) studies. The cooperation with universities is targeted, with an offer of possible scholarships, professional practice, and graduation theses being focused to attract qualified future employees. The development of the Company’s employment rate depends on the scope of contracts and is adjusted to the production needs. Each year, the effectiveness of individual working positions is assessed in relation to the management structure. In 2009, the Company continued to streamline its overall organisation structure and all systemised working positions individually by units. In light of the number of contracts the headcount was reduced in 2009 by 726 year-on-year. In 2009, the Company employed 3 023 employees on average (FTE headcount). The average monthly salary was EUR 690 in 2009, which is a year-on-year drop of 18.6%. The average monthly salary in 2009 for blue collar positions was EUR 607 per employee, which represents a year-on-year decrease of 16.2%. Work productivity from added value per employee amounted to EUR 11 633. In 2009, the subsidiaries and associated undertakings in the Slovak Republic employed an additional 736 employees, 68 employees in private schools. In 2009, the subsidiaries in the Czech Republic employed 2 697 people and another 202 employees in other countries. Number of Employees (Average FTE Headcount) 3 023 3 749 896 705 3 807 895 2 912 2 853 2 318 3 788 867 3 966 909 Men Women 2005 2006 2007 2008 2009 3 057 2 921