SITE FILES
     
 
AN ATTEMPT OF SOLVING THE PROBLEM OF “ZASTAVA” EMPLOYEES OF “ZASTAVA EMPLOYMENT AND TRAINING” D.O.O.

STIMULATION SEVERANCE PAYS AND POSSIBILITY OF SELF-EMPLOYMENT




Kragujevac, August 8, 2007
The meeting of the Minister of Economy and Regional Development of the Republic of Serbia, Mr. Mladjan Dinkic, with the representatives of trade union organizations of “Zastava vozila” Group, which was held on July 20, 2007 in Belgrade, aimed at advancing the proposal of measures for deciding on the status of employees of “Zastava employment and training” d.o.o. Kragujevac (ZET). It is known that the agreement between Serbian Government, “Zastava” Management and all trade union organizations of “Zastava” Group expires on August 31, 2007 and that the proposal of new measures means final abolishing of ZET. Minister Dinkic stated the way he planned to solve the problem of 4500 employees of ZET, and he made the proposal of stimulation severance pays for those employees.

It has been proposed to offer €300 to employees per year of service, who have less than 10 years of service, 10 average pays in the Republic economy has been planned for employees having over 10 years of service, amounting to €4375, increased by €50 per year of service. Employees having only 2 years until the fulfillment of one of the conditions for retirement shall get the severance pay in conformity with the Labor Law. A stimulation severance pay for retirement has been planned for employees satisfying one of the requirements for exercising the right to retirement in the amount of 4 average pays in the Republic economy.

The rights associated with self-employment have been also envisaged by this program, meaning payment of severance pay, plus credit through Development Fund in the amount of €15.000 for employees up to 40 years of age, without mortgage, as a means for securing credit. These employees would be also enabled professional assistance for preparing a Business Plan, training for entrepreneurship and consultant’s assistance provided.

Another possibility of self-employment is payment of severance pay, plus subsidy for self-employment through National Employment Service in the amount ranging from €1.500 to €2.000 of irretrievable funds. Also, employees will be offered professional trainings for occupations required by the Car Factory, and Factory Management should recognize the needs and propose other types of professional trainings. Employees who would decide for the training would be provided severance pay and training for specific occupation in the amount ranging from €500 to €800.

The possibility of new employment means employment with the new employer with training for the new job, based on which the right to severance pay for an employee is exercised, and new employer can exercise the right to reimbursement of contributions charged to his account and income tax for new employee in compliance with the Law.

The proposal of measures also includes the possibility that an employee gets severance pay in compliance with the Law, and then he exercises the right to pecuniary compensation (remuneration) through National Employment Service (in the range from minimum to average pay with contributions and health insurance) the amount of which will depend on total insurance period from 3 months to 2 years.

The stimulation severance pay for retirement on pension, instead of 3 average earnings so far and according to the Action Program, in case of ZET employees, enables 4 average earnings.

This proposal of measures will be presented at the Government Session, and Minister Dinkic will request the consent for its carrying out. Minister Dinkic’s opinion is that the Action Program cannot be changed or altered by the Management and trade union representatives.

 
     
 
 
 
 
Home About us Membership International Cooperation The media columnr Legal protection Forum Contacts
Copyright © Industrijski sindikat
designed by Canatlantic