Level of employment

As at 31 December 2013, the PZU Group’s headcount in FTEs was 11.2 thousand and was 2.9% lower than a year earlier.

Most employees in PZU and PZU Życie are women. At the end of 2013, they represented 63.7% of the total number of employees in these companies. The proportion of women in the employment structure has slowly declined in recent years. 99.2% of employees had degrees or secondary education, and 75.5% had degrees. The share of employees with degrees increased significantly compared to 2011. However, the age structure of employees was stable and, in December, 69.2% of the employees of both companies were aged up to 44 years.

Share of women in the employment structure in PZU and PZU Życie (in %)

The decline in the number of employees of the PZU Group in 2013 was a result of the implementation of the assumptions to the restructuring plan announced in December 2012 by the Boards of PZU and PZU Życie, which was to mainly encompass the areas of claims handling and finance and, to a much lesser extent, support functions (administration, logistics, IT).

Headcount at PZU and PZU Życie, by age (in %)

On 13 February 2013, the PZU and PZU Życie Management Boards announced their intention to make group redundancies, in accordance with the Act on the detailed principles of terminating employment for reasons not attributable to employees of 13 March 2003. The trade unions operating at these companies were consulted on the intention to make group redundancies, while information about the initiation of group redundancy procedures was provided to the appropriate County Labor Office.

Employment restructuring was planned for the period from 18 March to 15 June 2013. The restructuring was supposed to have encompassed 3.1 thousand people at PZU and PZU Życie, whereby it was estimated that employment downsizing would apply to 630 employees of PZU and PZU Życie, which represented 5.5% of all employees of these two companies.

Headcount at PZU and PZU Życie, by education (in %)

On 28 February 2013, PZU, PZU Życie and the trade unions operating at these companies signed an agreement setting out the terms and conditions of employment restructuring. The final form of the document was based on the experience and solutions developed during the corresponding negotiations in prior years.

Employment restructuring was conducted during the planned period and finally encompassed 2.2 thousand people at PZU and PZU Życie, while the employment downsizing applied to 538 employees of PZU and PZU Życie.

The people who were dismissed or who did not accept the changes in the terms and conditions of employment (just as during all stages of employment restructuring, namely in 2010–2012) were offered more favorable conditions of leaving than those provided for by law in similar situations. The amount of additional severance depended on the length of service at the PZU Group and the level of the given employee’s salary.

The total costs of restructuring recognized in the provisions for restructuring expenses in 2013 were PLN 39,568 thousand (throughout the whole of 2012: PLN 75,862 thousand), while the unused part of the provision of PLN 18,626 thousand was released.

Headcount in PZU and PZU Życie (in thousands of FTEs)