The Union Supports Fincantieri’s Entry into 3. Maj on the Condition that There Are No Major Layoffs

Vedran Dragičević, the President of the Metalworkers’ Union of Croatia, stated on Monday after a meeting with the Management of the Uljanik Group that the union will support the entry of the Italian Fincantieri into 3. Maj, but on the condition that the possibility of major layoffs is contractually eliminated.

The contract between the Uljanik Group and Fincantieri must include a clause that will not allow for larger and dramatic layoffs of workers and that will ensure the long-term continuation of production in 3. Maj, said Dragičević.

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He emphasized that the union is seeking a return to full production as soon as possible and reported that it has been promised that increased production will commence by the end of the month, adding that Fincantieri’s entry is expected by the end of the year or in the fall.

“We believe we are heading in the right direction, and in case things do not go well with Fincantieri, there is an option with Danko Končar and the Kermas Group,” said Dragičević, continuing that production would continue even then, but there is a possibility that in order to save costs, more people might be laid off than necessary, and that the union prefers the option with Fincantieri much more.

The union previously set a deadline of May 15, by which it expects information about the fate of the shipyard, or workers will take to the streets, and Dragičević stated today that negotiations are sensitive and that the union expects their conclusion by the end of the month.

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The President of the Uljanik Group, Gianni Rossanda, stated that intensive work is being done to resolve all debts to 3. Maj so that production can continue.

“We are talking to a potential and reputable partner who has shown great willingness to enter into cooperation with us for the development of 3. Maj, and I cannot say more than that for now,” said Rossanda.

He added that he “hopes to have some preliminary answers by the end of next week.”

“With a strategic partner, we have a much clearer picture and a much higher level of employment in both Rijeka and Pula, and without a strategic partner, we remain in a marriage, whether someone likes it or not,” he said, continuing that he believes it is in both parties’ interest to continue shipbuilding as efficiently as possible at both locations.

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“It has never crossed our minds to close any of the locations, and we continue on that path,” he added.

When asked about the negotiations with Fincantieri, Rossanda said that discussions with the potential partner are only for 3. Maj, and that the Kermas Group has been chosen as the strategic partner for Uljanik. When asked when they expect Fincantieri’s response, he said that the transaction itself should occur this year, but not so quickly.

When asked if the workers of 3. Maj should worry about their jobs, he replied that guarantees cannot be made, but that they will fight to keep as many workers as possible in Rijeka and Pula.

When asked whether Uljanik will sell the remaining 30.1% of shares after recently selling 4.53% of shares in the Viktor Lenac Shipyard, Rossanda said that the sale of shares was initiated to alleviate illiquidity in the Uljanik Group and that the majority of the funds will be directed towards 3. Maj.

He added that the intention is to monetize as much as possible in a quality manner, without the desire to ruin Lenac in order to improve the situation in 3. Maj.