Besides cash injections and capital reinforcements envisioned through the sale of a minority stake of network operator DEDDIE/HEDNO, among other moves, cost reductions are also a key part of the government’s rescue plan for the power utility PPC.
Energy minister Costis Hatzidakis, who delivered his PPC rescue plan in Parliament yesterday, included a voluntary exit plan, to be aimed at retirement-age workers, among the measures.
This proposal is not new. Various versions of differing scale were included in older business plans prepared by McKinsey on behalf of PPC.
A revised voluntary exit plan, including incentive details and schedule, will need to be shaped by PPC’s new administration, expected to be appointed within the current week, in collaboration with the energy ministry.
Of the series of older McKinsey staff-reduction proposals delivered, a milder – by comparison – plan was favored. It envisioned 2,000 job cuts by 2022 through the gradual withdrawal of retirement-age personnel.
An initial McKinsey plan was far tougher, proposing 1,300 job cuts through asset disinvestments; 500 cuts through the withdrawal of the outdated Kardia and Amynteo power stations; no further job contract extensions for 1,000 persons; 900 job cuts through retirement; as well as a voluntary exit plan for 3,000 workers.