Untitled Document

NEWS

SOCIAL PROGRAM OFFERED TO ‘’MAGNOHROM’’ WORKERS – PRODUCTION START-UP UNCERTAIN IN THE NEAR FUTURE
A DECISION THAT IS DIFFICULT TO MAKE

Kraljevo, May 2008

After tumultuous events associated with the privatization of ‘’Magnohrom’’, strike that lasted several months, breach of Sales Contract with ‘’Global Steel’’, difficult trade union negotiations with Serbian Government and social revolt, the Government of the Republic of Serbia approved 550 million Euro in order to resolve the problem of non-payment of costs for employee years of service in ‘’Magnohrom’’, with a delay in payment that lasted several years, and severance pay in the amount of 200 Euro per year of service was also offered.

This solution was known to ‘’Nezavisnost’’ Trade Union, but there was a concern about the future of ‘’Magnohrom’’ business system and about those who would stay in the company. ‘’Magnohrom’’ has to start operations, because this company is very important for economic development of Kraljevo and the Region. There are many modalities for successful privatization of some sections of ‘’Magnohrom’’ and ‘’Nezavisnost’’ Trade Union will persevere in its efforts to realize this. The problems of arrears in wages of ‘’Magnohrom’’ workers should be solved by dividing a part of the property not being in function of future production, and there is a consent for this given by the Privatization Agency. The deadline for employee coming out for the Social Program was April 30 2008 and planned payment should be terminated by May 10. ‘’Magnohrom’’ is the responsibility of Serbian State, because its ruin is directly associated with easygoing ways, corruption and irresponsibility of some government Departments and Government itself.

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