Cvetkovic: Funds for Magnohrom are earmarked

Serbian Minister of Finance Mirko Cvetkovic said today that severance payments and funds for computation of years of service for Magnohrom workers have been earmarked in the budget. “Those payments, as well as salary increase and one-time assistance payments for budget users in lieu of Labour Day holidays, will not jeopardize budget stability”, said Cvetkovic to Beta News Agency.
Serbian Minister of Finance Mirko Cvetkovic said today that severance payments and funds for computation of years of service for Magnohrom workers have been earmarked in the budget. “Those payments, as well as salary increase and one-time assistance payments for budget users in lieu of Labour Day holidays, will not jeopardize budget stability”, said Cvetkovic to Beta News Agency.

All workers who whish to leave Magnohrom will be given severance payments up to 200 Euro per year of service, which is double more than what others have received, Minister pointed out. He added that registration for voluntary leaving the company, which currently employs 2.300 workers, will run by April 30, and severance payments will be paid by May 10.

“For computation of years of service for Magnohrom workers, 250 million of Dinars have been earmarked, and for the company to be able to work regularly, monthly subventions in amount of 20 millions of Dinars will be provided”, said Cvetkovic. According to him, there have been considerations to secure workers’ salary funds form the sale of Magnohrom’s property which is not essential for regular production, additionally clarifying that such eventual sale would not jeopardize future company’s privatization prospects.

Magnohrom employees have not received their salaries as of April last year, and due to the nonfulfillment of the obligations towards the workers, Privatization Agency has terminated sale contract with British Global Steel Company.