EMCC European Monitoring Centre on Change

HEP Operator Distribution System (HEP ODS)

HEP Operator Distribution System (HEP ODS)

Geographic Location

Country: Croatia
Region: Grad Zagreb; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): Zagreb


Sector: Utilities
Electricity, gas, steam and air conditioning supply
35.1 - Electric power generation, transmission and distribution
Number Employed: 7500
Group: HEP Group

Employment Effects

Announcement Date: 21-07-2016
Planned Job Reductions min: 1250
Planned Job Reductions max: 1300
Type of Restructuring: Internal restructuring
Employment Effect Start: 02-01-2017
Foreseen End Date: 28-02-2017
Direct Dismissals: 1300

Additional Information

Suppliers of electricity, HEP Operator Distribution System (HEP ODS), announced that in early 2017 around 1,300 positions would be eliminated from the company. However, the company stated that 200 jobs will be relocated to a new company for public supply. The restructuring plan, which was jointly prepared by the international consultations firm PricewaterhouseCoopers (PwC) and the management of HEP ODS and HEP ltd and with the support of expert teams HEP ODS; recommends that the company remove the 1300 positions through natural attrition and early retirement where possible.

Instead of the current dominant geographic model, the new organisational structure of HEP ODS will be based on the functional model of management. It will give greater emphasis to profession, reduce stratification and complexity of the organisation and standardise business processes. The consequence of the new organisation will improve technical competence and management at four distribution units, which will coordinate the work of 21 electric currency distribution centres. Existing electric currency distribution centres will not be decommissioned, but their role is changing and the focus will be primarily on the field operations and network management. The distribution areas are designed according to the best practice from the industry, based on the number of employees, the length of the network, number of users and the surface areas covered.

The focus of the restructuring of the company will be to strengthen the core business of the company, to create better and more efficient organisation of field operations and to better management of assets and capital investments by HEP ODS. Early retirement programmes and related severance will be realised according to the signed collective agreement.