Minister says making profit must not be main goal of state-owned companies

Enterprise and Crafts Minister Darko Horvat said on Thursday that making profit should not be the prime objective of the HEP power company and other public companies, adding that state-owned companies must be a reliable provider of services to citizens and industry. 

Commenting on projections of 1,700 surplus workers in HEP, the minister said Croatian experts had something to say about HEP's restructuring plan, but that this was a pre-election time and he did not want to push this issue.

He underscored that HEP restructuring had taken a wrong turn, adding that an analysis conducted by the Croatian Democratic Union (HDZ) showed a different situation than the one described by consultants hired by HEP.

HEP announced earlier today that approximately 1,300 people would leave the company next year through scheduled and early retirement and that another 200 would be sent to a new public supply company.

The restructuring project was designed together by the international consulting company PricewaterhouseCoopers (PwC) and HEP.

HEP underscored that the rights of its employees are guaranteed by the collective agreement.

Last update: Thu, 21/07/2016 - 20:47

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