Currently Power Machines are implementing multiple cost-efficiency programmes thus taking further steps towards strengthening their standing in the power engineering equipment market. One of the measures to ensure enhanced efficiency and reduction of the Company’s general administrative costs is the staffing level optimization.
For the moment Power Machines maintain a relatively firm market standing regardless of the global financial and economic crisis. The Company’s portfolio of orders for the year 2009 has been fully configured; as compared to the 2008 performance indices Power Machines intend to increase net production of turbine and generator equipment by 28% and 39% accordingly which corresponds to respectively 7.7 GW and 7.4 GW in terms of aggregate power capacity. In addition, the order portfolio is diversified, there having been contracts concluded for delivery of steam, gas and hydraulic turbines, turbine and hydraulic generators, major electrical machines and other equipment. Export contracts account for over 20% of the total portfolio capacity.
Nevertheless, if Power Machines are to successfully implement the programme adopted and overcome the crisis without major loss the company ought to sharpen its competitive edges due to improved labour and cost efficiency. "Consequently it was resolved headcount optimization be required relating to managerial, specialist and clerical personnel of the Headquarters and subdivision head offices," explains Alexei Ustinov, Power Machines Personnel Director. "However, the core production personnel shall be unaffected by the redundancy measures taken".
As of January 1, 2009 the personnel capacity of Power Machines OJSC was equal to approximately 12.5 thousand persons. The total job cut rate is planned to be 6% or nearly 750 jobs in absolute terms. With the Company’s major production branches – Leningradsky Metallichesky Zavod, Electrosila and Zavod Turbinnykh Lopatok (Turbine Blades Plant) – the job reduction rate is notably less varying from 3.7% to 5.5%. It is the Headquarters administrative and managerial staff that is mostly axed.
At the same time due to considerable expansion of the 2009 production plan Power Machines are actively recruiting such specialists as boring lathe and vertical lathe operators, winders, polishers, CNC operators, crane operators and others. After January 1, 2009 Power Machines have already employed some 200 process workers; by the end of the current year the Company intends to hire approximately 1,000 persons on full-time basis.
The proposed headcount optimization is expected to result in the proportion of workmen in the Power Machines OJSC total manpower as compared to that of managerial, specialist, clerical and non-industrial personnel increasing by 5% to be 58%.
As of January 1, 2009 the average salary with Power Machines OJSC amounted to approximately 36,500 RUR.