Oil Terminal Drops Plan To Cut Working Hours; Fires Staff Instead

05.11.2011 By Florentina Dragu

Romanian cargo handler Oil Terminal Constanta (OIL.RO) has given up its plan to trim working hours to cut expenditure, saying it would lay off staff instead.

"Starting with the second half of the year, the management will implement a reorganization plan to reduce the number of employees in view of meeting the economic and financial indicators for 2011," al Oil Terminal said in a statement Wednesday.

The company didn't say how many of its 1,100 staff will be laid off.

Early May, Oil Terminal approved cutting working hours to four days a week from five days, to meet the estimated costs for the first half of this year.

The measure was annulled a week later.

The company expects a pretax profit of 3.14 million lei (EUR768,814) this year, slightly below the RON3.6 million result reported in 2010. Sales are seen at RON132.99 million, compared to RON132.25 million last year.

The company is 59.62% owned by the Economy Ministry, while investment fund Fondul Proprietatea (FP.RO) holds a 10% stake.

Wednesday, Oil Terminal closed up 0.14% at RON0.2168 a share in Bucharest. (EUR1=RON4.0842)