ECONOMY

OTE forces employees to work 40 hr week

OTE telecom, the country?s largest phone company, will force employees to work a 40-hour week, versus the current 37.5 hour average working week, as part of measures aimed at creating cost savings, it said on Monday.

OTE, which reported a 91.7 million euro loss in the last quarter of 2010, said that it is targetting annual savings worth 32 million euros by cutting operating costs in a bid to help offset slowing revenues.

Other measures include reducing managerial allowances by 15 percent, reducing overtime pay and stopping buses used to transport workers.

?OTE is at a critical juncture. In 2011, we will intensify our efforts to slowdown the pace of declining revenue and profitability,? said Michael Tsamaz, OTE CEO, said in a statement.

OTE, 30 percent owned by Deutsche Telekom, said last week it will focus on cost cutting efforts after its fourth quarter loss widened to 91.7 million euro loss, versus a 29 million euros loss in the same period a year earlier, hit by pension costs and the writedown of its Romanian assets.