SPLIT IRONWORKS MANAGEMENT, SUPERVISORY BOARD RESIGN SPLIT, April 14 (Hina) - The management and supervisory boards of Sisak Ironworks resigned on Monday due to dissatisfaction with the government's attitude towards the situation in
the company, which has not been producing for two months.
SPLIT, April 14 (Hina) - The management and supervisory boards of
Sisak Ironworks resigned on Monday due to dissatisfaction with the
government's attitude towards the situation in the company, which
has not been producing for two months. #L#
Jakov Miljak, the plant's manager in the past three months, told
reporters in Split today that the management and the supervisory
board were ready to step down if they were the reason why the
government was unwilling to help the plant.
Although it had promised to do so, the government last week did not
discuss a request on a 50-million-kuna guarantee to help the
ironworks re-start production, Miljak said.
He believes the government must prevent the closure of the plant for
the sake of its workers and the survival of the metal industry in the
area.
The government's refusal to back the management, despite the
patience and understanding the plant's major creditors and workers
have demonstrated, points to the influence of metal import lobbies
which do not care about domestic production, he said.
The plant's workers union fully supports the management and
supervisory boards and strongly criticises the government,
claiming that iron importers were trying to destroy Split
Ironworks.
Miljak recalled that the new management was appointed following
reports about irregularities in the operation of the plant's
previous management. The new management had not even started
production when, more than two months ago, the Croatian Power
Company (HEP) cut power supply due to the plant's debt of 7.5
million kuna. It was then that the management started negotiations
with Economy Minister Ljubo Jurcic and Vice-Premier Slavko Linic as
the ironworks had been fully reconstructed with a 22-million-euro
loan and government guarantees, Miljak said.
The new management board was requested to draw up a production plan,
which it did in the best possible way. The plant agreed with the HEP
to pay its debt in instalments and 415 workers received one of their
seven overdue salaries, Miljak said.
(hina) rml