Untitled Document

NEWS

SOCIAL PARTNERSHIP: JOINT EMPLOYMENT PROJECT OF ‘’NEZAVISNOST’’ UNION AND BELGRADE ASSEMBLY
THEY ARE GOING TO ‘’BUY’’ A COMPANY BY USING SEVERANCE PAY

Belgrade, February 29 2008
The United Branch Union ‘’Nezavisnost’’ is implementing the project titled ‘’Developing social partnership for start-up of surplus manufacturing capacities, equipment and manpower’’ by means of grants provided by the city of Belgrade, for stimulating employment. Approximately 50 million dinars was set aside last year for 11 employment projects, 1000 persons were registered for the training sessions associated with business start-up, 280 secured jobs, and 30 companies were opened – stressed yesterday Zivana Kojic, Assistant Secretary for the economy of Belgrade, at the promotion of the project.

It has been planned to set aside much more this year, i.e. approx. 300 million dinars from the city budget, and open competition shall be announced till March, for which non-profit organizations can apply. About 160.000 unemployed persons is registered in Belgrade, and a ‘’wave’’ of dismissals has been announced in a majority of enterprises being in the process of privatization and restructuring. After a comprehensive research that lasted from October last year till January this year, the project implementation is in the final phase, and it has been accepted in ‘’Minel elektrooprema’’ where about 15 workers expressed their readiness to invest a portion of severance pay in founding a new company. There is willingness for individual investments, ranging from 3.000 – 5.000 Euro severance pay, in a part of the equipment, whereby one gets a share in the new company ownership – emphasized dr Zoran Ristic, Director of Education, Research and Privatization Center ‘’Nezavisnost’’.

It has been envisaged to apply the same model of employment of surplus manpower in some other companies: ‘’Keramika’’ – Mladenovac, ‘’JKP’’ – Lazarevac, agricultural company ‘’Dragan Markovic’’ – Obrenovac. Prior to implementation of the project, about 25 companies, 1.250 workers, employers and representatives of local government were tested, and the program was positively evaluated by the International Labor Organization and International Trade Union Confederation, and good references are also expected by the European Commission.

A new model of social partnership for deciding on the redundancies is founding a limited liability company, and 51% of the capital makes an equivalent value of employee severance pays, which decide to start their own business ‘’within’’ the machines, equipment and premises of former company. The parent company would retain 49% of the capital in its possession with the distribution of 1/3 of managing rights to local government, management and trade unions of that company. Employees have been given an opportunity to buy off a minor package, in the next 5 years, at the cost at which the capital value will be estimated at the time of founding a new company.

Therefore, the thing being the most important is that all those interested should attend and complete the training and be informed in detail about the documents and process of founding new companies.

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