Annual Report 2004

ANNUAL REPORT 2004 Ž E L E Z I A R N E P O D B R E Z O V Á 17 REPORT BY THE BOARD OF DIRECTORS HUMAN RESOURCES The personnel strategy of the Company is based on the concept that human resources are the most important asset. The Company has incorporated sophisticated personnel systems including education, training, employees' benefits, labour safety and health protection, and social policy. These programs are updated and extended each year in line with the financial plan of the Company by investing in the further education and health of its employees and their families and through the sponsorship of sport and cultural events. The program of the Company covering personnel, remuneration, social policy and the issues of labour safety and health protection is set out in a Collective treaty for 2004, signed between the trade unions ZO OZ KOVO and the Board of Directors of Železiarne Podbrezová. The company has met all its duties and obligations arising thereof. We have provided our employees with catering service and preventive medical care. Those working in risk units were offered preventive medical care, revitalization and health restoration stays; and the 24 hour accident policy was implemented for all employees. Other benefits approved within the social fund budget amounted to SKK 11.84 million. In a private secondary apprentice school of metallurgy in Lopej, we have provided qualifications for young people – our future workers – metallurgists, electricians, mechanics. After finishing the school in 2004, 26 graduates began working with Železiarne Podbrezová a.s. In 2005, 40 new apprentices are expected to begin the employment in future years, we will have the opportunity to employ about 80 to 100 young people. The employment rate in the Company is dependent on the volume of orders obtained and production needs for the respective period. Higher production volumes were fulfilled with a lower number of employees. In 2004, the Company employed on average 4,092 employees, 30 people less than in prior year. The average monthly salary in 2004 reached SKK 20,004 per employee, an increase by 18.9%. The average salary is distorted by a 2003 bonus, paid in 2004. Without the impact of the bonuses, the annual increase in the average salary represents 10.9%. Value added labour productivity topped at SKK 457,402 per employee; a increase by 12.6% compared to 2003. Subsidiaries and associated companies in Slovakia employed 317 additional employees. Subsidiaries in the Czech Republic employed 3,446 people in 2004. Average registered number of employees (recalculated): Year Men Women Total % of increase as against 2000 2000 2 969 924 3 893 100 2001 3 096 947 4 043 104 2002 3 141 941 4 082 105 2003 3 185 937 4 122 106 2004 3 164 928 4 092 105