Serbia: Downsizing in power utility EPS under IMF pressure

, News Serbia Energy

The representatives of the International Monetary Fund (IMF) and Serbian state-owned power utility EPS have agreed that the problem of redundant employees at EPS should be resolved through early retirement and voluntary departure of employees.

On this basis, it is estimated that almost 2,000 employees could leave the company by the end of the year. According to unofficial sources, it was agreed to send to early retirement those employees who have two to three years to full retirement. On this basis, more than 1,000 workers could leave the company. At least another 800 employees should be added to this number, as they have expressed interest in leaving the company with adequate severance pay.

IMF accepted these terms, but under the condition that the problem with surplus personnel at EPS must be resolved by the end of 2016. Therefore, collective agreement which defines the amount of severance pay has to be amended. However, the unions will not accept severance pay of 200 euros per year of service, which is the amount established by the IMF, transmits