TALKS BETWEEN UNION, ZAGREBACKA BANKA FAIL

ZAGREB, July 20 (Hina) - Tuesday's talks between unions and the Zagrebacka Banka management on the fate of 'Savric' furniture factory failed after bank representatives rejected the unions' request that the bank give 3.5 million kuna for May and June advance pays. The head of the union delegation, Mario Ivekovic, said the union would tomorrow start staging protest rallies and hold them until the bank's management gives a concrete offer to pay salaries and support a programme of financial rehabilitation of the company. The Zagrebacka Banka cannot accept the union's demand regarding the salaries because it does not have funds for that purpose, nor does it have funds for loans for which it knows in advance that they will never be paid, the bank's management said after today's talks. The bank supports the financial restructuring of the company undergoing bankruptcy proceedings, which would mean cutting labour from the current 930 to 540. The bank is willing to participate in the rehabilitation of 'Savric' but its support will depend on the profitability of the company's new programmes. The union also demanded from the bank concrete support for the rehabilitation programme, but the bank refused it, transferring responsibility to the government, Ivekovic said. The union will therefore launch pressure methods as of tomorrow, Ivekovic said, declining to comment on the methods. The Zagrebacka Banka owns 34 per cent of shares in 'Savric' and the union holds it morally responsible because, as it claims, it had contributed to the company's bankruptcy with poor business decisions. (hina) rml