Zastava pension plan signed
Mlađan Dinkić and Zastava trade union officials have signed an annex to the company pension plan.
Thursday, 21.08.2008.
16:40
Mladjan Dinkic and Zastava trade union officials have signed an annex to the company pension plan. The economy minister said that the plan gave Zastava workers four options, two of which were completely new and which would be enacted for all 30,000 workers, the estimated number of employees involved in the restructuring process. Zastava pension plan signed One of those two options is that workers receive a classic severance pay of EUR 3,000 per year of work with the company, for which Fiat will set aside EUR 200 and the state EUR 100 per man, Dinkic explained. He said that the other option was compensation for those who were five years or less from retirement, at a level of six average wages in Serbia totaling EUR 3,250 plus a bonus 60 percent a month of the average national wage. “For example, if someone has four years left until retirement and decides to take this option, he will receive EUR 3,250 severance plus EUR 325 per month, which means that the worker will receive a total of EUR 18,850 by the time the period expires,” the minister said. He added that the plan was valid only for companies in the process of restructuring (Zorka, RTB, Prva Petoletka), because they were loss-making companies, stating that the plan did not apply to other companies in the privatization process. Dinkic said that the annex stipulated that the remaining wages to be paid for the period 1997-2001 amounted to EUR 10.5mn. He could not, however, forecast how much would be set aside from the budget initially, adding that that would be decided after the rebalance. The minister added that another new feature was that workers transferred to the new Fiat company in Serbia would also get “a piece of the pie” from the 30 percent figure that the state received as a co-owner.
Zastava pension plan signed
One of those two options is that workers receive a classic severance pay of EUR 3,000 per year of work with the company, for which Fiat will set aside EUR 200 and the state EUR 100 per man, Dinkić explained.He said that the other option was compensation for those who were five years or less from retirement, at a level of six average wages in Serbia totaling EUR 3,250 plus a bonus 60 percent a month of the average national wage.
“For example, if someone has four years left until retirement and decides to take this option, he will receive EUR 3,250 severance plus EUR 325 per month, which means that the worker will receive a total of EUR 18,850 by the time the period expires,” the minister said.
He added that the plan was valid only for companies in the process of restructuring (Zorka, RTB, Prva Petoletka), because they were loss-making companies, stating that the plan did not apply to other companies in the privatization process.
Dinkić said that the annex stipulated that the remaining wages to be paid for the period 1997-2001 amounted to EUR 10.5mn. He could not, however, forecast how much would be set aside from the budget initially, adding that that would be decided after the rebalance.
The minister added that another new feature was that workers transferred to the new Fiat company in Serbia would also get “a piece of the pie” from the 30 percent figure that the state received as a co-owner.
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