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SOCIAL PROGRAM – POSSIBLE SOLUTION FOR WORKERS OF ’’ZASTAVA AUTOMOBILI’’. ALSO, BENEFITS FOR EMPLOYEES IN COMPANIES BEING IN THE RESTRUCTURING PROCESS

FIAT ARRIVES




Kragujevac, August 27 2008
The current problem of surplus manpower in ’’Zastava automobili’’ has been solved with the view of improving company’s performance, so that FIAT would start with an optimal number of employees necessary for the projected production. Representative trade unions of ’’Zastava automobili’’ among which the ’’Nezavisnost’’ Union of ’’Zastava automobili’’ is included, signed Annex 1 to the Protocol, and as a base, the ’’Memorandum on understanding’’ between the Ministry of the Economy and Regional Development and FIAT Group was used. The most important items of Annex 1 are contained in the section regulating the payment of earnings to employees remaining in ’’Zastava vozila’’ Group, providing that employees, after the Joint Venture Agreement signed between the Republic of Serbia and FIAT, should retain the status of employees of ’’Zastava vozila’’ Group and of Subsidiaries, and they would get pays corresponding to earnings paid out in the preceding month relative to the month in which the Joint Venture Agreement was signed. Such anticipated earnings will be adjusted every six months, based on retail price increase.

It has been envisaged that, after perceiving the final number of employees being transferred to newly founded company or to other Employer and the total number of employees which accepted one of the oferred options of the Social Program, on voluntary basis, if at that moment a certain number of employees remained, whose employment status was not decided on, it will be agreed on with trade unions of ’’Zastava’’. The payment of special allowance to employees requiring up to 5 years for fulfillment of the first condition for exercising the right to retirement allowance, the right to payment of special single pecuniary compensation has been granted in the amount of six average monthly pays earned in the economy of the Republic, or 3250 Euro today. The monthly amount of allowance for those, now already former employees, would amount to 325 Euro, being equivalent to 60% of average monthly pay earned in the Republic’s economy.

This significant step forward in solving the problem of redundancies, being applied in ’’Zastava vozila’’ Group, shall be also applied in other companies comprised by the restructuring process, and according to minister Dinkic’s statement, this number is approximately 30 000, and according to sources and information of MWBU ’’Nezavisnost’’, this figure will be nearly
50 000.

We wish to remind that identical and similar solutions were proposed to the Government and Ministries at that time, but they were rejected as unrealizable and unpractical. Republic of Serbia obgliged itself to link years of service for all registered employees up to the time of founding a joint company of FIAT and Rep. of Serbia.

 
     
 
 
 
 
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