Press Releases

Budapest, September 20, 2004 10:45

Matáv and the leaders of employee interest organizations reached an agreement on headcount reduction in 2005 and 2006 and next year's wage increase.

In response to the challenges on the liberalized telecommunications market over the past years Matáv has significantly reduced both its wholesale and retail prices. The further price reductions expected by the market can be implemented only if Matáv consistently carries out its efficiency improvement program announced on August 12. This Program includes also a headcount rationalization plan, the details of which were agreed between Matáv and the employee interest organizations.

An agreement was reached between Matáv and the employee interest organizations on the extent of headcount reduction at Matáv and the 2005 wages. In the course of the interest reconciliation negotiations Matáv and the leaders of the employee interest organizations reached a compromise in all matters. According to the agreement Matáv Rt.'s headcount will be reduced in 2005 and 2006 by a total of 2,598 employees, of which 805 will be employed by companies carrying out outsourced activities. Headcount reduction will be implemented in several steps. With this action by the end of 2006 Matáv will attain its strategic objective of raising the number of fixed lines per employee to above 500. The headcount reduction at Matáv Rt. and the 17.3% headcount reduction at the subsidiaries, announced on 12 August, will involve a combined personnel of around 3,750 at the Group level.

An agreement was reached with the employee interest organizations also on next year's wage increase. According to this agreement wages will be increased by 5.6% on April 1, 2005.

At the negotiations with the employee interest organizations great emphasis was laid also on care for the employees. So as a result of the interest reconciliation negotiations Matáv will apply various solutions for headcount reduction that reduce to a large extent unilateral dismissals. Additionally Matáv will apply its "Chance" program proven in previous years with support to new employment of the employees leaving the company: among others the company provides training courses and helps employees leaving to find a new job. A special program was approved to help those who have difficulties finding a new job due to their age.