In 2000, the Bucharest municipality awarded the management of its water and wastewater services to Apa Nova Bucuresti, a Veolia Water subsidiary. As the takeover of these services was a sensitive project for the municipality, it was important to secure the commitment of employees and labor unions, and design an approach tailored to the local context for the transfer of employees from the public to the private sector.
Bucharest - Romania Water and wastewater services
A tailored approach to succeed in transferring employees from the public to the private sector
Challenge
Veolia Water's solution
- A new organization chart, approved by the Board of Directors and discussed with the labor union.
- Training and skills development program for all categories of personnel in a variety of areas: knowledge about the company, written and oral communication, strategic accounts management and relations, and job-related training (procedures, IT,water metering).
- Quarterly incentive scheme with individual performance-related bonuses.
- Employee support measures to accompany the reorganization: creation of an advice and careers guidance unit, and establishment of an employee action fund.
Results
- Improved communications with employee representatives.
- Work conditions and safety improved by the acquisition of protective equipment and reorganization of work areas.
- An employee action fund amounting to 9% of the total payroll.
- Employee purchasing power maintained by index linking salaries to national inflation with quarterly updates.
- A pay structure that encourages empowerment and improved performance (overtime payment, bonuses for special work conditions, etc.).