Split, 21 October 2009 - Although the hunger strike started by shop stewards in Split Ironworks in late August ended few days later after the meeting with Prime Minister, on which they were promised payment of due wages and finding permanent solution for the company until the end of October, it seems that agony of one of two remaining large ironwork plants in Croatia and its workers is far from over.

Company’s current owner, Polish Zlomrex, of which we wrote in last edition of UATUC Info, whose overall business performance in 2008 was poor, has brought  Split Ironworks into debt, which caused blocking of company’s account and suspending all production in mid-April. At the same time, Zlomrex failed to pay salaries and stopped all communication with workers, which urged workers’ representatives to demand termination of the privatisation contract and finding a new owner which would restart production process.

In early September, English fund Carlson Private Equity Limited bought 95.86 percent of shares from Zlomrex, but the Ministry of Economy declined its offer for takeover of the company. Although no details were published, the union representatives stated that Carlson’s offer failed to fulfil workers’ demands for restarting the production and saving the jobs.

Following this events and not satisfied with the Government’s efforts to save the company, four shop stewards again started hunger strike on 19 October, this time in front of the Ministry of Economy building in Zagreb, and 20 workers inside the plant joined them this time as well. Although the management tried to stop workers from entering the plant, they managed to occupy the meeting hall and said to stay there until they receive written guarantees that privatisation contract with Zlomrex will be terminated, production restarted and full salaries paid instead of minimal ones they were promised earlier.

However, the same day Ministry of Economy declared that agreement has been reached with Zlomrex on conditions of terminating the privatisation agreement and that the search for a new “strategic partner” has started. After meeting with the Minister, workers’ representatives claimed they were satisfied and aware that it was the most what was possible to achieve at the moment. On 21 October at workers’ assembly it was decided to terminate hunger strike and give Government deadline to find new partner until 1 January 2010. Workers also stated they expect meeting with the President of Croatian Privatisation Fund, as soon as Zlomrex returns its company shares, in order to discuss the “adequate salary” and urgent steps to restart the production.