Tax payer to meet cost of Magnohrom wage settlement

Finance Minister Mirko Cvetković says funds have been allocated to make severance payments to Magnohrom workers.

Izvor: Beta

Friday, 18.04.2008.

13:39

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Finance Minister Mirko Cvetkovic says funds have been allocated to make severance payments to Magnohrom workers. “Those payments, as well as the pay rises and the one-off breaks for tax payers for the May 1 holiday, will not threaten budget stability,” said Cvetkovic. Tax payer to meet cost of Magnohrom wage settlement All workers that wish to leave Magnohrom will receive, as he said, severance pay of EUR 200 per year of service, which is more than double what employees in other companies received. Applications for voluntarily redundancy at the Kraljevo factory, which employs around 2300 workers, will continue until April 30, while severance payments will continue until May 10. “EUR 3.14mn has been allocated altogether for the Magnohrom employees, and the factory will receive a monthly subsidy of EUR 251,000 to be able to continue work normally,” said the finance minister. He said that the possibility of financing the outstanding wages through the sale of Magnohrom assets was also being considered, as it would not threaten the approaching privatization and was not necessary for regular production. Magnohrom employees have not received their salaries since April last year, and the Privatization Agency blocked the company’s sale to UK outfit Global Steel over its failure to meet all its remaining obligations. The workers have protested several times demanding the state meet the cost of their outstanding wages. Mirko Cvetkovic (FoNet, archive)

Tax payer to meet cost of Magnohrom wage settlement

All workers that wish to leave Magnohrom will receive, as he said, severance pay of EUR 200 per year of service, which is more than double what employees in other companies received.

Applications for voluntarily redundancy at the Kraljevo factory, which employs around 2300 workers, will continue until April 30, while severance payments will continue until May 10.

“EUR 3.14mn has been allocated altogether for the Magnohrom employees, and the factory will receive a monthly subsidy of EUR 251,000 to be able to continue work normally,” said the finance minister.

He said that the possibility of financing the outstanding wages through the sale of Magnohrom assets was also being considered, as it would not threaten the approaching privatization and was not necessary for regular production.

Magnohrom employees have not received their salaries since April last year, and the Privatization Agency blocked the company’s sale to UK outfit Global Steel over its failure to meet all its remaining obligations.

The workers have protested several times demanding the state meet the cost of their outstanding wages.

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