Tobacco manufacturer sacks 166 workers

The Vranje-based DIV cigarette maker, majority owned by British American Tobacco (BAT), has laid off 166 workers. This was confirmed by the company's General Director Mike Edwards, who said the decision came due to losses and in order to adopt to the market conditions. Tobacco manufacturer sacks 166 workers Edwards told Beta news agency that 37 other workers, out of the total of 319, expressed their desire to leave once they receive severance pay that is considerably higher than the figure requested by law. The sacked workers will get EUR 17,000 each, while the factory plans to open a mobile center "to help them cope after leaving the company". This center will see experts provide advice on how to find employment again or start own business, and will also organize training for those workers that could stay in their jobs, said Edwards. All this means that as of next year, DIV will have 161 people on its payroll. The company's New Business Orientation Project Coordinator Gradimir Milic says the move will save the factory from shutting down. He also stated that after taking control of DIV in the 2003 privatization, BAT invested over EUR 110mn, "which is considerably more than the privatization contract called for". Beta reports that the company said the restructuring process has been transparent and that it included workers' representatives, and rejected speculations that BAT was preparing to leave. "For commercial reasons," the company officials were quoted as saying, "this year DIV did not make contracts with producers in southern Serbia to buy dried tobacco leaves."

Tobacco manufacturer sacks 166 workers

Edwards told Beta news agency that 37 other workers, out of the total of 319, expressed their desire to leave once they receive severance pay that is considerably higher than the figure requested by law.

The sacked workers will get EUR 17,000 each, while the factory plans to open a mobile center "to help them cope after leaving the company".

This center will see experts provide advice on how to find employment again or start own business, and will also organize training for those workers that could stay in their jobs, said Edwards.

All this means that as of next year, DIV will have 161 people on its payroll.

The company's New Business Orientation Project Coordinator Gradimir Milić says the move will save the factory from shutting down.

He also stated that after taking control of DIV in the 2003 privatization, BAT invested over EUR 110mn, "which is considerably more than the privatization contract called for".

Beta reports that the company said the restructuring process has been transparent and that it included workers' representatives, and rejected speculations that BAT was preparing to leave.

"For commercial reasons," the company officials were quoted as saying, "this year DIV did not make contracts with producers in southern Serbia to buy dried tobacco leaves."