Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

Severance payment protocol for Zastava workers signed

Kragujevac, 6 May 2008

Serbian Minister of Economy and Regional Development Mladjan Dinkic and Zastava’s four representative unions signed a protocol on paying out severance payments and the remaining salaries to the company’s workers.

Dinkic explained that the protocol will be part of the main contract between the Serbian government and Fiat, which obliges the Italian car maker to invest €700 million and become the owner of 70% of Zastava’s shares.

He announced that in June at the latest the government will sign a contract on strategic cooperation and joint investment between Zastava and Fiat.

According to the protocol, no workers will be laid off in the next five years, while those who wish to leave the factory will be paid their remaining salaries and severance payments. It also envisages the right to dividends to the amount of 30% of state-owned shares, specified that Minister.

Workers who voluntarily leave the factory will receive the first portion of their severance payment by May 20, and the second one by end-June, said Dinkic and added that the protocol implies the state financing the so-called protective workshop – the place where the disabled will work.

According to him, the total debt owed to employees is at least €10 million, which will be paid out provided that the employees waive the charges they filed against the factory in the past several years.

Fiat Vice President Alfredo Altavilla said that this is the beginning of a huge project to which his company is extremely committed.

Some of the cars will only be produced here and then exported throughout the world, said Altavilla and announced that the first automobile in the Kragujevac factory should be produced in 2009.

Also present at the signing was Deputy Prime Minister Bozidar Djelic who said that the arrival of Fiat to Zastava is the best possible signal to other investors.