06-03-2020

Announcement

CP – Comboios de Portugal concluded today the restructuring within the merger process by incorporation of EMEF - Empresa de Manutenção de Equipamento Ferroviário into CP - Comboios de Portugal, in compliance with the Council of Ministers Resolution no. 110/2019.

The merger by incorporation of EMEF into CP aims to eliminate redundancies and constraints arising from the previous management, in order to optimize resources and improve links between both parties, in an operation resulting in a cost-saving of about 1.2 million euros per year, according to the studies carried out.

After the merger, there was a need for an organic change in CP, which led to splits and mergers of functional areas.

Thus, we clarify the following:
1. The definition of the company's new organic framework was guided by essential factors such as the competence of the technical staff, the rejuvenation of managers and focus on the areas of operation and maintenance of rolling stock;

2. As the performance of leading positions at CP is carried out on a commission basis, the configuration of a new structure requires the resignation of all previous managers and new appointments;

3. After the company’s restructuring is completed, CP reduced the number of directors by 46%. The 69 directors existing in the two previous structures (CP and EMEF) changed to 37 in the new organic configuration. On average, there is now 1 director per 100 workers;

4. The total number of managers and responsibility functions decreases, despite the creation of new functional areas and the previous activities of CP and EMEF are complementary.

5. The restructuring now completed has assigned responsibility positions that aim to manage a company with almost four thousand people, geographically dispersed, with different responsibilities and subspecialties, such as operations, commercial, marketing, safety of people and assets, traffic safety, maintenance of rolling stock, engineering, information systems, maintenance of facilities, financial, personnel, legal, quality, health and safety at work, environment, social responsibility, purchasing, logistics, strategic planning, innovation, asset management, audit, risk, institutional relations, international relations, among others.

6. The merger and restructuring were supported by studies carried out by CP and EMEF working groups, with the collaboration of Parpública and reference consultants. Feasibility studies point out that this merger and restructuring operation allows the significant savings above-mentioned, which also adds to the increase in the efficiency of processes;

7. It is public knowledge that CP and EMEF operated with significant staff shortages. This merger - in addition to increasing efficiency – allows eliminating redundancies and freeing technical staff to perform other duties, reducing the need for personnel in the CP group;

8. Changes introduced are of great importance if we take into account that CP is the largest land passenger transport operator in Portugal, with a highly developed and demanding operation 24 hours a day and 365 days a year;

9. The Board of Directors is fully aware of the scrutiny to which the company is subject and the challenges it faces when embracing significant changes in the way it operates.

These clarifications are important to defend the company's image, but also to honour the efforts of the thousands of CP workers who – daily - are dedicated to ensuring the national, regional and urban mobility of millions of passengers.