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NEW 500 MEMBERS JOINED MWBU ’’NEZAVISNOST’’

STRIKE IN ’’MAGNOHROM’’




Kraljevo, May 29, 2007
The agony of over 2200 employees in ’’Magnohrom’’ Kraljevo continues, although employees have been trying for more than 70 days to protect their rights by organizing a strike, under the Law and Purchase & Sales Contract. Almost 10 months have passed since ’’Global Steel’’ became a 100% owner of ’’Magnohrom’’ at tender. Instead of fulfilling the contractual obligations, this company obstructs the obligations and violates Serbian laws.

The demands of the Strikers’ Committee were and are presently as follows:

-Employment of workers and securing jobs at workplaces
-Payment of earnings for February 2007 as promptly as possible, and the remaining earnings under the C.A., by the 10th of each month
-Payment of outstandings to workers dating from the privatization period, and payment of debt should start as from March 22, 2007
-Payment of vacation allowance for 2006
-Linking years of service.

From all above stated, only 40% for February was paid out, which wasn’t sufficient to stop the strike. The ’’Nezavisnost’’ Union, as a newly founded labor union in ’’Magnohrom’’, involved itself in the strike at the beginning of April 2007, by supporting the Strikers’ Committee, with the view of finding a way out of a very difficult economic and social situation. For workers of ’’Magnohrom’’ those activities of the Strikers’ Committee and ’’Nezavisnost’’ Union had, directly or indirectly, the following positive effects:

-The Privatization Agency sent a letter to ’’Global Steel’’, dated April 19, 2007, in which this company was informed of the status concerning the fulfillment of obligations resulting from the Purchase & Sales Contract.
-The Agency has established that the Investment Program for the first year has not been completed, as provided for by the Agreement on sale of social capital. The same also applies to some obligations from the Social Program.
-We have engaged the president of Kraljevo Municipality, dr Milos Babic, and it has been agreed that the Strikers’ Committee and ’’Nezavisnost’’ Union, together with the management and trade unions, should appear in the Privatization Agency and the Ministry for Economic Affairs.
-We confirmed all the demands of the Strikers’ Committee, agreed with the representatives of ’’Global Steel’’ on April 3, 2007.
-We also hired the Agency for amicable settlement of labor disputes.
-The Privatization Agency will re-send a new warning letter to ’’Global Steel’’ reminding that it does not abide by some provisions of the Purchase & Sales Contract and they will be given a time limit to proceed in a proper way.

The situation in ’’Magnohrom’’ is more difficult presently than it was at the beginning of the strike.

Twenty-eight months of unlinked years of service, total production breakdown and furnaces being out of use, lack of working capital and abuse of banks’ trust by ’’Global Steel’’, unpaid installments of outstanding earnings, closed mines, desperate workers. The only way to activate ’’Magnohrom’’ and provide for workers is a complete undertaking of obligations by ’’Global Steel’’. If this doesn’t happen, it is expected that the Privatization Agency shall take measures resulting from non-observance of the Purchase & Sales Contract.

Finally, ’’Global Steel’’ signed an Agreement with ’’Magnohrom’s’’ Strikers’ Committee, as follows:

-payment of 60% of earnings for February by May 17, 2007,
-payment of 50% for March by May 24, 2007 and the remaining 50% by May 30, 2007,
-the tempo of April earnings payment is to be determined.

The leadership of ’’Magnohrom’s’’ ’’Nezavisnost’’ Union, headed by the President, Jasmina Đikić, Vice-President, Božidar Đalović, and Secretary, Miodrag Mitić, shall take adequate actions in order that obligations undertaken by the agreement are completely fulfilled.

’’Magnohrom’s’’ ’’Nezavisnost’’ Union was rewarded for honest, responsible and professional work and supported by more than 500 workers who became members of ’’Nezavisnost’’ Union.

 
     
 
 
 
 
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