October 24 (SeeNews) - Some 600 employees of Croatian diversified holding Djuro Djakovic [ZSE:DDJH] have launched a strike on Thursday, demanding payment of their September wages and the resignation of the management board director, local media reported.
"Djuro Djakovic Group comprises five companies, two of them have paid wages, while three still haven't. We have announced a strike and if we do not receive wages today or get firm guarantees that wages will be paid, the strike will continue," news daily Poslovni Dnevnik quoted regional commissioner of the metalworkers union, Antun Stivic, as saying.
The reason for the crisis is the cancellation of funding by Zagrebacka Banka [ZSE:ZABA] and the absence of a replacement bank to serve the business of the remaining three companies within Djuro Djakovic Group which still haven't paid September wages, Poslovni said.
"The union demands the resignation of the group's management board director Marko Bogdanovic due to the poor financial condition of the whole group as well as the liquidity crisis which have been lasting for too long," Stivic said.
On Wednesday, the group said it was in talks with creditors for resolving the liquidity crisis which has left it short of funds to pay September salaries.
The payment of September wages at Djuro Djakovic is now one week late.