PPC to launch retirement offer as part of restructuring effort

The main power utility PPC is set to launch a personnel restructuring plan, as part of a business plan prepared by McKinsey consulting firm, beginning with a voluntary retirement offer for 220 employees, expected to be presented at a company board meeting today.

PPC’s retirement offer will be extended to ageing staff members who are eligible for pensions but have opted to carry on working.

Besides severance pay of 15,000 euros for each outgoing employee, the plan is believed to also include a 5,000-euro exodus incentive for staff members who choose to register for the voluntary retirement plan by the end of this year.

Retirement-age employees who neglect the offer will be dismissed and their resulting compensation payments will be restricted to amounts required by Greek labor law, sources noted.

The 220 employees targeted for the voluntary retirement offer stem from PPC’s labor-intensive categories and are over 60 years of age, according to sources. Some workers are over 65 years old, it is believed.

McKinsey’s business plan for PPC recommends expense reductions of 330 million euros to be achieved through the departure of approximately 4,100 employees. The majority of these workers, numbering roughly 3,500, are currently stationed at lignite-fired power stations and mines included in a bailout-required sale package of lignite units representing 40 percent of the utility’s lignite capacity.