Annual Report 2007

20 A N N U A L R E P O R T REPORT BY THE BOARD OF DIRECTORS Expenses per employee (in SKK ’000) Added value per employee (in SKK ’000) 428 281 406 277 457 331 688 365 712 381 784 414 2002 2003 2004 2005 2006 2007 The Company appreciates that the fulfillment of the strategic vision is impossible without the targeted training of its future workforce. Therefore, the Company pays maximum attention to the general and professional education of its future employees - metallurgists, electricians, and mechanics - at the Private Secondary Apprentice School of Metallurgy in Lopej. After graduating in 2007, 44 graduates were hired at Železiarne Podbrezová a.s. In 2007, 65 graduates are expected, thereof 42 start employment with the Company, and 23 applied for university study. Furthermore, a three year study program will be completed by 16 appren- tices who will start working with the joint stock company Železiarne Podbrezová. In the Private Secondary Grammar School ŽP, we assist students when they take decisions on their preferred study at university. If they are interested in working for us, we provide them with sufficient information on the professional specialisation desired for our Company. Currently, we closely cooperate with the Technical University in Košice. Under the contract, we provide external bachelor’s study for almost 50 of our employees. The co-operation with universities is targeted, with the offer of possible scholarships, professional practice, and graduation theses being focused in order to gain professionally experienced future employees for the Company. The development of the employment rate in the Company depends on the scope of contracts and production needs for the respective period. Each year, the effectiveness of individual working positions is assessed in relation to the management structure. In 2007 the Company also streamlined its overall management structure and all systemized working positions individually by units and achieved savings. However, total full-time equivalent headcount in 2007 was higher than the previous year by 19 employees due to increased working shifts at certain workstations. In 2007 the Company employed 3 807 employees on average (adjusted number). The average monthly salary in 2007 amounted to SKK 25 034 per employee, an annual increase of 10.3%. The average monthly salary in 2007 within working (blue collar) positions was SKK 20 843 per employee, which represents an annual increase of 8.6%. Value added per employee amounted to SKK 784 182 which represents a year–to-year increase of 10.2%. As part of the comprehensive programme of sanitation measures, in 2007 the Company spent in total SKK 50 million for 29 events focused at work safety and the improvement of the working environment. Company employees are entitled to the insurance benefit program entered into with Allianz – Slovenská poisťovňa, a.s.