OREANDA-NEWS. December 9, 2011. Taking into account some information appeared in mass media concerning staff reduction at Dneprovsky Iron and Steel Works named after F. Dzerzhynsky with regards to order No. 1090 dated 24.11.2011 “On Approval of Staff Numbers Limit at Structural Departments”, ISD Corporation deems it necessary to announce the following.

Optimization of staff numbers and the adjustment to actual figures are being currently implemented at DMKD. The main target of this initiative is to increase the entity’s operation efficiency. The said order No. 1090 initiates the collection of information about possibilities for reorganization of structural units aimed to consolidate, supersede or  withdraw them from the entity’s structure but not to reduce staff.

Numbers optimization and withdrawal of support functions from the structure is a part of common global practice in steel industry. This allows enterprises to conduct direct core activities, while support functions are transferred either to third-party companies or to affiliated service companies.

Optimization process at DMKD will include reduction of a number of management positions and pension age employees, who will be repaid all benefits fixed by collective agreement. Herewith number of reduced staff does not correspond to amount of 1600 people as has been previously reported by some mass media, but will be at least twice as little. Optimization process will be implemented for one year taking into account proposals made by heads of production directions, main specialists and department heads.

Meeting an optimal staff size at DMKD will be implemented strictly according to Labor Code and in compliance with all standards and terms. In case of making the decision to abolish a position, an employee will be given a possibility and time period to transfer to another structural unit or subsidiary, or to undergo additional trainings to transfer to a new shop within steel works.

As a city-forming company DMKD gives significant social support to Dneprodzerzhinsk every year. Each year the amount of social investment exceeds the previous year index and the range of supported spheres grows systematically. In 2011 about UAH 70 million were given for implementation of social programs in sports, healthcare, culture, donations to orphanages. In 2012 the company’s social initiatives for the city will be over UAH 100 million. The reputation of community-focused company which works for the benefit of the city and its citizens is very important for DMKD with maximum respect to the interests of its personnel.