ZAGREB (Croatia), August 17 (SeeNews) – A process of conciliation has been launched at Croatian shipbuilding company Uljanik after the trade unions agreed to refrain from strike action until August 24, giving time to the management to pay delayed wages, local media reported on Friday.
A total of 4,500 workers employed in the companies within the Uljanik Group are waiting to receive their July wages and are prepared to strike if the conciliation process doesn't yield results, news brodcaster HRT reported.
Uljanik shipyard, the group leader, alone employs some 1,800 people and has been in financial difficulties for several years due to the adverse effects of the global financial crisis on the shipbuilding sector in general which has led to a drop in orders for new vessels.
The company's new strategic partner, Kermas Energija, had sought a loan from Croatia's state-owned bank for reconstruction and development (HBOR) to pay wages but its request was rejected. According to HRT, HBOR refused to extend the loan because the money was intended for salaries, not for the company's development and investments.
In January, Uljanik avoided similar strike action after the European Commission stepped in, allowing Croatia to provide a state guarantee for a 96 milion euro ($109.4 million) loan to the shipbuilder. The measure allowed the company to meet urgent liquidity needs while preparing a restructuring plan.
The Uljanik Group is made up of Uljanik shipyard as the group leader and 12 other units.
In March, Uljanik said it has chosen local company Kermas Energija as its strategic partner under its call for recapitalisation.
Uljanik and Kermas Energija are waiting for the European Commission to approve a programme for the restructuring of Uljanik shipyard. The government controls a 25% stake in Uljanik.
($=0.877901 euro)