T-HT finalises trade union deal, sheds 403 workers

Croatian incumbent T-Hrvatski Telekom (T-HT) has signed a new Collective Agreement with trade unions along with a severance offer for 403 employees to leave the telco. Under the agreement, annual vacation bonus per employee was cut in half, although the ‘majority’ of employees’ material rights remain unchanged. The agreement guarantees that there will be no reductions in the workforce, excluding potential outsourcing programmes within the business transformation programme, during the period of the agreement. A severance offer for certain employee categories was agreed, under which 403 employees will leave the group by June 2013. The total cost of severance and other statutory obligations for these employees is HRK201 million (USD35.3 million), provision for most of which was booked at the end of the 2012 financial year.