Workers of the Čepin Oil Factory Agreed on Salary Payments

Representatives of the workers of IPK Čepin Oil Factory today agreed with Minister of Agriculture Petar Čobanković that the Government will ensure the payment of two salaries and the continuation of the factory’s operations, while negotiations regarding the request for the privatization of the company will continue tomorrow at the Ministry of Agriculture and Forestry.

Minister Čobanković, Vice President of the Croatian Parliament Vladimir Šeks, and President of the Croatian Privatization Fund Vedran Duvnjak spoke with representatives of about two hundred workers who came to protest in Zagreb, but they did not reach an agreement on the main demand of the protesters – for the state to remove obstacles to the privatization of the Oil Factory. Minister Čobanković promised that they would secure two salaries – the first will be paid by December 10, and the second by December 22. He also promised that electricity and gas would not be cut off, so the factory can continue to operate, stated union representative Helena Žeravica after the meeting. The continuation of negotiations was agreed for tomorrow at 10 AM at the Ministry of Agriculture, where representatives of all interested parties, including IPK Osijek and IPK Animal Feed Factory, will participate in an effort to remove the main obstacle to the company’s privatization – the enforcement on the shares of the Čepin Oil Factory.

If we do not sign the agreement tomorrow, we will come back to Zagreb on Friday, announced the county commissioner of the Agricultural Union Šimo Orešković. The privatization of the factory is primarily hindered by the enforcement on the shares of the Čepin Oil Factory, due to debts that the owner of the Oil Factory IPK Osijek has towards the former company from that system, IPK Animal Feed Factory. The Agricultural Union demands that the Government make a decision on the recapitalization of IPK Osijek, in order to pay the obligations of IPK Osijek and lift the enforcement and pledge on the shares of the Čepin Oil Factory. They also demand from the Government a temporary guarantee to Zagrebačka and Partner banks totaling 52 million kuna for a period of six months, in order to lift the company’s account blockage and carry out the privatization. The situation at the Oil Factory is very difficult as the company’s account has been blocked for 70 days, salary payments for 212 workers are irregular, and the factory is also threatened with disconnection of electricity, gas, and telephone services. Production at the Oil Factory is being conducted as a service because the factory lacks raw materials for its own production. The Čepin Oil Factory is almost 82% owned by IPK Osijek, which is in turn 92% owned by the state. (H)