CROATIAN RAIL (HZ) TO LAY OFF 7000 EMPLOYEES

ZAGREB, Oct 3 (Hina) - The Croatian Rail (HZ) is in an unenviable position; after the restructuring there will be 7000 redundancies, and the loss in the first six months this year has reached 122 million kunas. Only 54 per cent of outcome in planned turnover were achieved, and the railway network was in a catastrophic state, the HZ general director Marijan Klaric told a press conference in Zagreb on Wednesday. He said the Canadian firm CANAC, commissioned, in cooperation with the World Bank, to make an elaborate plan for the Croatian Rail restructuring, would finish its third report by the end of October. But, it is already obvious that the HZ company should reduce its payroll by 7,000 positions. "We will agree with the trade union on the fate of those people. I emphasize that there will be no inhumane procedures," Director Klaric said. Speaking of the decrease in turnover and loss Klaric pointed up "abnormal work conditions in last five years and tough competition on the transport market." He reminded the conference of war damage caused to railways. He announced that 45 kilometres of the Lika railway line, six road crossings, one railway station and two bridges were planned to be reconstructed in liberated areas in the next period. (hina) jn mš 021810 MET oct 96