My message to workers is that they will get their November wage before the end of the year. The sources for that are in some way connected to Djuro Djakovic funds as part of those contracts that were topical and activated today while part of the funds were collected from advance payments on those contracts," Horvat said after a meeting in Government House with the company'y management board, unions and Prime Minister Andrej Plenkovic.
Horvat underscored that the short and medium term solution is a loan arrangement that the government is prepared to cover with a state guarantee amounting to about HRK 150 million. That means that the business accounts of companies that are currently frozen within the Djuro Djavkoic group will be unfrozen by 17 January 2020, Horvat said, noting that that will ensure the company's liquidity and the completion of existing and contracted deals. Currently there are three contracts in effect..
The completion and delivery of goods pertaining to those three contracts will enable an additional HRK 128 million in cash flow which will be "additional oxygen for Djuro Djakovic's survival," said Horvat.
Overhaul plan has to get approval from EC
He added that at the same time that work will begin with preparing a restructuring plan which will have to be approved by the European Commission. "That will take about four to six months. With the arrangement on the table today that we have proposed, Djuro Djakovic will be able to live for the next six months," Horvat added.
Explaining that after that a comprehensive restructuring will follow as will a review of all the contracts concluded and business activities planned for 2020 and 2021 and that businesses by companies within the group that do not result in profit but create an additional loss, will be shut down.
He explained only after a detailed analysis, as part of part of the restructuring programme, will it be known whether there is a surplus of workers at the factory.
Unionist satisfied with meeting
Union leader Ivan Baric assessed today's meeting as very good and positive.
"We trust the Croatian government. We trust the plan that the minister and prime minister have outlined to us," he said.
Other indicators have clearly shown - this government stabilised the Petrokemija artificial fertiliser plant which now is a stable and good company and we believe that we workers will remain in our jobs with this plan, added Baric.
He noted that the Djuro Djakovic Specialised Vehicles plant has a new board and along with the minister and prime minister's efforts the intention is to "reset the company."
With regard to the possible surplus of workers, Baric said that he believes that this is related to processes that are already underway regrading the Djuro Djakovic Industrial Solutions company but that that will not impact the overall situation.
Considering the latest developments, Baric believes that there is no longer any need for industrial action.
Text: Hina