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THE PRIVATIZATION OF ‘’FZV ZELVOZ’’ SMEDEREVO, D.O.O. ENTERED THE FINAL PHASE

THE ONLY BIDDER IS RUMANIAN CONSORTIUM




Smederevo, September 13, 2007
The privatization of railroad car factory ‘’Zelvoz’’ d.o.o. from Smederevo by tender, is in its final phase. The negotiations with the only bidder, Rumanian Consortium S.C. ‘’Remar’’ S.A. – S.C. ‘’Grampet’’ S.A. are to be terminated now by the representatives of the Government Commission.

The representatives of the three representative trade unions: ‘’Nezavisnost’’ Union, ASNS ‘’Solidarnost’’ and the Autonomous Union terminated their negotiations on August 31, 2007 by signing the Social Program. These negotiations began on July 11, 2007. The ‘’Nezavisnost’’ Union, as the initiator of the negotiations (it must be noted that our Union made a draft of the Social Program, as well as that our representatives Milan Đurić and Slavoljub Petrović participated in the negotiations) is very satisfied with the achieved results.

Among other things, the salary has been defined in this Program, which shall not be lower than that the potential buyer encounters (average pay in the company is about Din. 17.500) while earnings shall be increased in line with production increase. Also, the buyer obligated himself to observe the provisions of the C.A. Trade Union’s role and position have been defined. In addition to negotiations concerning the pay increase, the Union will take an active part in the settlement of all issues being important for employees and the company. The protection of disabled workers has been additionally secured.

The ‘’Nezavisnost’’ Union is especially proud of Article 4. of the Social Program in which, in contrast to social programs worked out in some other companies, it has been said, inter alia: ‘’There won’t be any forced dismissal of employees in the next 3-year period as of the date of signing the purchase and sales contract. The buyer agreed that there would not be any dismissals based on redundancies in a 3-year period. Also, payment of additional pension insurance is regulated by Article 16.

The problem concerning the unpaid contributions to the Pension and Disability Insurance Fund in the period of almost 3 years can be an obstacle and burden for future privatization, so our Union indicated this problem in contact with the Minister of the Economy and Regional Development, M. Dinkic.

If the negotiations, concerning the privatization by tender, are terminated successfully, there are justified expectations that, with the new owner of a major part of the capital, ‘’Zelvoz’’ shall recover and become a famous company for railway vehicle overhaul not only in Serbia or the Balkans, but also in the EU countries.

 
     
 
 
 
 
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