Restructuring

Highlights 2017

Business

2000 outlets at the disposal of clients in the health insurance and medical care services provided by the PZU Group
2000 outlets at the disposal of clients in the health insurance and medical care services provided by the PZU Group
Strong market position in motor insurance, including direct activity with a market share of 38.4%
Strong market position in motor insurance, including direct activity with a market share of 38.4%
Pekao ranked 2nd and Alior Bank ranked 8th in terms of accumulated assets
Pekao ranked 2nd and Alior Bank ranked 8th in terms of accumulated assets
The PZU Group’s share in the non-life insurance market is 35.7%
The PZU Group’s share in the non-life insurance market is 35.7%
Strong position in insurance with a periodic premium with a market share of 45.8% (+0.7 p.p. y/y, the highest level since 2010)
Strong position in insurance with a periodic premium with a market share of 45.8% (+0.7 p.p. y/y, the highest level since 2010)
Group model based on a comprehensive offering in the insurance, finance and health area
Group model based on a comprehensive offering in the insurance, finance and health area
Reference Areas:
Health
Investments
Banking
Best Pratices in PZU

PZU and PZU Życie keep changing seeking more effective development paths, including by optimization and automation of many processes and by investing in new, innovative solutions. All that affects changes in employment, shaping both its level and structure in many areas of activity. On 22 March 2017 a memorandum of understanding was concluded with trade unions concerning the scope and rules of employment restructuring in all functional area. The plan assumed that in total in PZU and PZU Życie no more than 956 people would be affected by employment contract termination. 

For all employees leaving the company due to restructuring special severance packets have been prepared, going much beyond the standards envisaged in the labour law and found in the market. An outplacement program was also launched. There was also a number of initiatives to limit the cases of employment termination – e.g. elimination of many vacancies, priority in participation in internal recruitment for candidates in the areas affected by reductions – and the initiatives proved extremely effective. Finally, the number of employees who received termination notices under the restructuring or termination memoranda of understanding (without a prior proposal of new conditions) decreased as much as by 40% (570 people).

In 2017 Alior Bank was engaged in optimizing its organizational structure and rightsizing its headcount in its various business areas. The implementation of a new organizational structure is part of the effort to tap into the potential inherent in the merged BPH bank to attain the intended synergy effects and create a long-lasting foundation to build its long-term competitive advantage. On 25 November 2016 the Management Board of Alior Bank commenced the procedure of notifying the intercompany trade union organizations operating in the bank of beginning work on a memorandum of understanding on group layoffs. The intended restructuring measures were supposed to last until the end of 2017 and affect no more than 2,600 employees. The culmination of these talks took the form of the memorandum signed on 15 December 2016 with all the trade union organizations operating in the bank on defining the rules of conduct in matters pertaining to employees in connection with the group layoff process. Ultimately, at the end of 2017, Alior Bank’s headcount was 8,110 FTEs, which in comparison with the end of 2016 signifies a reduction of 2,135 FTEs.

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