After successfully completing the outsourcing process of Koprivnička tiskarnica from Podravka Group, where the Board has once again shown that caring for their employees comes first and is a foundation of every restructuring, it has also reached a decision on intended sales model for parts of the company performing non-basic activities: office building cleaning, perimeter and drains cleaning, laundry, green surfaces maintenance, catering and Kraluš beer hall. Outsourcing of those activities should finish by the end of March 2007, and the process includes 150 people.

The purpose of outsourcing plants performing non-basic activities is that the buyer as the new employer, already specialized in such activities and focused on them, would without interruption during an agreed period continue to perform non-basic activities that Podravka has been doing so far through these plants.

Before sale the restructuring of non-basic activities also includes reduction of employees working in plants scheduled for sale. The Board has for that reason decided to hire 40 people in the Production II plant for an indefinite period by releasing an internal announcement of vacancies to which workers in the sector Services management, Energetics and technical services can apply.

In an agreement with the workers union and the new employer, number of workers in the operations that are being outsourced will be reduced also by canceling a certain number of work contracts due to private or business reasons and applying the workers compensation program. In an opinion poll the workers will express their agreement with the possibility to terminate their work contract and to apply the severance payment program, and they will be declared redundant only if they are not indispensable to performing certain jobs.

The same as it was with outsourcing of Koprivnička tiskarnica, the intended restructuring of non-basic activities includes negotiations with the unions about signing an agreement for those who are working in the stated parts of Podravka (plants), and who will after sale be transferred to a new employer. The agreement protects the rights of workers, and it would have to be respected by the new employer, considering it will be a constituent part of the sales contract.