Unions expect draft Fiat contract, job cuts

The Zastava Cars Union says it supports the company's privatization, but warns of negative consequences.

Izvor: Beta

Sunday, 20.07.2008.

16:05

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The Zastava Cars Union says it supports the company's privatization, but warns of negative consequences. In this context, this workers' organization's president, Zoran Mihajlovic, told journalists in Kragujevac that city's mayor Veroljub Stevanovic told him he is "certain a draft contract between Zastava and Fiat will be signed on July 31". Unions expect draft Fiat contract, job cuts But the actual contract, which Mijatovic says will be signed "in mid-September", making the Italian carmaker the owner of 70 percent of Zastava's stock, will spell redundancies. The domestic production lines will shut down, leaving some 10,000 workers jobless, he said, and explained they are now employed by subcontractors in Kragujevac, Raca, Batocina, Mladenovac and Rakovica. Further uncertainty surrounds the Kragujevac plant itself and those of its workers who will not find employment with the Fiat-owned factory "immediately", Mihajlovic said, and added that this concerns 3,800 people. The union sees a solution to this in putting together a so-called social program before clinching the deal with the Italians, that would bind the state to finance the years of service for all workers five years or less short of reaching retirement age. The rest of those currently employed by Zastava, Mihajlovic said, "should transfer to the Fiat plant". But the contents of the draft contract likely to be signed at the end of the month, according to the same source, remains "shrouded in secrecy". Fiat and the Serbian government signed a memorandum of understanding on strategic partnership at the end of April this year.

Unions expect draft Fiat contract, job cuts

But the actual contract, which Mijatović says will be signed "in mid-September", making the Italian carmaker the owner of 70 percent of Zastava's stock, will spell redundancies.

The domestic production lines will shut down, leaving some 10,000 workers jobless, he said, and explained they are now employed by subcontractors in Kragujevac, Rača, Batočina, Mladenovac and Rakovica.

Further uncertainty surrounds the Kragujevac plant itself and those of its workers who will not find employment with the Fiat-owned factory "immediately", Mihajlović said, and added that this concerns 3,800 people.

The union sees a solution to this in putting together a so-called social program before clinching the deal with the Italians, that would bind the state to finance the years of service for all workers five years or less short of reaching retirement age.

The rest of those currently employed by Zastava, Mihajlović said, "should transfer to the Fiat plant".

But the contents of the draft contract likely to be signed at the end of the month, according to the same source, remains "shrouded in secrecy".

Fiat and the Serbian government signed a memorandum of understanding on strategic partnership at the end of April this year.

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