Horvat: Neither Končar nor Uljanik offer a solution for salaries; Workers: Strike continues

Danko Končar is currently not offering a model that could secure salaries for the workers of the Uljanik group, and the shipyard management is also not presenting any model with that aim, said Minister of Economy, Entrepreneurship and Crafts Darko Horvat after separate meetings at Banski dvori with the CEO of the Uljanik group Gianni Rossanda and Danko Končar, owner of Kermas Energija, which is a potential strategic partner for Uljanik.

“The modality that Mr. Končar is currently offering as a strategic partner is not assistance to Uljanik in cash, within which a loan of that kind could secure salaries for the workers of Uljanik and 3. maj,” said Horvat, adding that they expected, but unfortunately did not happen, that the management of Uljanik would present some model within which at least one or two salaries could be secured to mitigate the current situation in Uljanik before the actual start of the shipyard’s restructuring.

Horvat stated that Končar offers his vision for the development of shipbuilding in the area of 3. maj and Uljanik in the strategic partnership, but at this moment “there is no and does not want to secure a financial arrangement that would ensure the necessary funds for salaries for workers even before the verification of the restructuring plan.”

>>>Workers of the Uljanik Group in general strike: No one thinks about how we will feed our children, buy school books

When asked by reporters whether bankruptcy of Uljanik is an option, the minister answered affirmatively, adding that pre-bankruptcy settlement is also an option.

He said that one of the possibilities discussed today is for the management to initiate a blockade on behalf of each worker, which would legally enable the state budget to secure a minimum wage for workers during the next three months of that blockade.

On the other hand, if the projected bankruptcy occurs, which would involve restructuring, Horvat notes, the state budget could secure three additional minimum wages for workers.

Horvat points out that if we talk about six months of continuity in Uljanik and 3. maj, the fact is that at this moment a Norwegian ship client, who is at a high stage of completion, is ready to finance its completion, which would “remove” 124 million kuna in guarantees that Uljanik received for the loan needed to complete that ship from the state budget.

The government does not want to pump huge funds

He says that this would make the situation a bit easier at one point, but the problem is that there is currently no clear vision on how to continue shipbuilding in Pula and Rijeka with the existing methodology.

“At this moment, the government does not want to ‘pump’ huge funds to continue that continuity,” Horvat said.

He emphasized that it was the management’s responsibility to choose a quality strategic partner, which the government did not interfere with, and that he sees them as one body, and if there are currently disagreements between them, there is also the possibility of annulling that strategic partner and eventually choosing someone else for that position.

When asked by reporters about the announcements from workers who stated that they would strike until they receive their salaries, he assessed that the entire pressure is very sophisticatedly shifting to the government, which, he emphasized, has responsibly engaged from the very first moment in solving the problems in Rijeka and Pula.

>>>Horvat: We want Uljanik and 3. maj to become profitable

“But not in this way of existence that the management has envisioned because if that modality were good, Uljanik would not be in this position today,” said Horvat.

He asked the workers for patience, stating that for the fifth consecutive day, they are almost exclusively working on solving the salary issues for Uljanik and 3. maj.

“I do not want us to make any wrong step under public pressure or any other pressure that would annul any legal or other solution,” said Horvat.

Končar: The meeting was constructive, I am more optimistic than pessimistic

Danko Končar stated after the meeting that there are forces working to prevent Uljanik from going bankrupt, and regarding the entry of Kermas Energija as a strategic partner, he said, “we will see.”

He stated that his company has already made an offer that has been accepted, and confirmed Minister Horvat’s words that at this moment they are not ready to give money to Uljanik, noting that it is possible that the European Commission may reject the restructuring plan.

He reminded that his company has already provided Uljanik with a loan of 12.4 million euros to repay a bank debt, stating that so far they are the only ones who have contributed anything, and no one else.

>>>Plenković: We will do everything to help Uljanik, but we have already given 31 billion kuna to shipbuilding

“This does not mean that we are not still ready to help, but in that help and action, more participants must be involved, not just us,” Končar said.

When asked by reporters if he had any concrete proposal at today’s meeting, Končar assessed the meeting as very constructive. All possible options were considered, he said, and added that after it he is “more optimistic than pessimistic, in a ratio of 70:30.”

He believes that the situation in Uljanik has arisen because the shipyard is not optimally utilizing its production capacities. “Uljanik is specifically capable of producing 7.5 ships, but in the last five years it has produced an average of two and a half. These are the facts,” Končar stated.

Workers disappointed with the meeting, continue the strike

The Strike Committee of Shipyard 3. maj is disappointed with the results of the meetings regarding the resolution of problems in the Uljanik group, which were attended on Thursday evening at Banski dvori by the CEO of the Uljanik group Gianni Rossanda and Kermas owner Danko Končar, but they emphasize that they do not give up on their demand for the payment of the July salary and that the strike continues.

“Workers are disappointed, the strike continues, and from Monday we are changing the story,” said the president of the Strike Committee in 3. maj Veljko Todorović.

The deputy president of the Strike Committee Boris Bučanac believes that “the government is passing the ball to the management, and the management is returning it to the government because they obviously do not know what to do next.” “Kudos to those who do not feel guilty for the situation that has arisen,” he added.

It is questionable how anything can be expected from Končar, who has been chosen as the strategic partner of Uljanik, after hearing about the events in his Brodotrogir, he said.

>>>The largest owners of Uljanik are the workers – they hold 47 percent of the shares

Bučanac assessed that bankruptcy could be the beginning of the end for 3. maj and that it is questionable what would happen in that process. “We will consider and agree on when we will radicalize the strike actions,” concluded Bučanac.

When asked if Končar is the only salvation for the Uljanik group as a potential partner, Rossanda replied that he is the “most logical salvation” because he has already invested 12.5 million euros in Uljanik. When asked if he feels responsible for the situation in Uljanik and 3. maj, he replied that things can always be done differently and better and that it is always the management that must “determine something,” but that objective circumstances have also contributed to the current state.

The strike at Shipyard 3. maj, as well as throughout the Uljanik group, began on Wednesday and continued on Thursday. The Strike Committee announced that the strike will last until their demands are met, i.e., until they are paid their salary for July. In addition, they demand that the procurement of materials be enabled so that production can be restarted in the plants, unfinished ships completed, and new contracts signed. The Strike Committee emphasizes that the workers are anxious, that they are increasingly struggling to endure the wait for salaries, pressed by loans and other obligations. They announced that by the beginning of next week they will strike at their workplaces, and after that, they will decide on further actions.