Union agreement signed on 3 March 2004

The management of the metallurgical-engineering complex UNEX a.s. spent 5 months negotiating a union agreement. The aim of the negotiations was to change the structure of obligations towards employees. The emphasis should be shifted from social stabilization to performance stimulation.

During the year 2004, the average basic salary of individual categories i.e. direct labour workers, indirect labour workers and technical-economical workers will increase by 15% in comparison with February 2003. The increase in average basic salaries is compensated by reducing or cancelling some social contributions, making even unreasonable odds in the tariff components of the salary and a radical change in the rules of paying performance bonuses based on objectively measurable factors which can be directly affected.

It is expected that the introduction of this substantial change in the stimulating component of the salary will create the atmosphere necessary for eliminating the non-effective use of the company's potential, for directly engaging employees in increasing productivity and for directing the personal goals of all efficient and receptive employees ready to work in accordance with the goals of the company. The conclusion of the union agreement for the year 2004 is another step towards restructuring the company. UNEX a.s., after the heavy losses of 2002, showed a profit of 25 million crowns last year (sales were 1.7 billion crowns). The company expects sales to increase by 250 million crowns, mainly from foreign customers.