Zagreb, 22 October 2009 – The tender for privatization six state owned shipyards, based on the model agreed with the European Commission and published in August, resulted with only two valid offers, for only two shipyards. One of two offers assumed abandonment of shipbuilding business after restructuring, and the other one, although taken as valid, failed to meet the tender condition to provide funds for at least 40 percent of the restructuring costs. In both cases, price offered was 1 Kuna. It seems that both offers will be declined.

Minister of Economy Damir Polančec announced publishing the second tender in few weeks, which would offer more favourable terms in relation to the share of shipyards’ debts that potential buyers will need to take over with the company. Total debts of the state owned shipbuilding industry are estimated to 12 billion Kuna (around 1.7 billion euro), out of which 8 billion is covered with the state warranties. Commenting earlier on trade union demands for postponing the privatisation for better economic times than this, Polančec said that the global crisis is just an additional reason for privatisation, since state budget is not capable to continue spending 1.5 billion Kuna on shipyards annually as it was the case in previous years (400 million Kuna in subventions and 1.1 million in business loses covered by the state).

Simultaneously, the Metalworkers’ Trade Union of Croatia (SMH) organised signing of petition for saving Croatian shipbuilding industry, asking from Croatian Government to demand from European Commission postponement of the second round of privatisation, in order to get time for better preparation of second tender. In the meantime, metalworkers are asking from the Government and Ministry of Economy to ensure normal production activity and payment of the salaries for workers in state owned shipyards, since most of them are currently facing liquidity problems due to halt in issuing state warranties for already signed order contracts. UATUC Presidency gave its full support to the activities of SMH and declared its readiness to be actively included in further actions aimed at saving shipbuilding industry.

During a week from 7 to 15 October petition was signed by 30 000 union members and citizens and was finally handed to Prime Minister Jadranka Kosor during a meeting in Government premises with SMH President Vedran Dragičević and shop stewards from three shipyards.

“Trade unions will not allow bankruptcy of single shipyard, for that would mean economic breakdown and bankruptcy of Croatia”, said SMH President Vedran Dragičević on the protest demonstrations organized in shipyard “3. maj” in Rijeka on 22 October, which gathered around 3 thousand shipyard workers, as well as their retired colleagues and other cizitens.

On the meeting held in shipyard “Brodosplit” in Split on 23 October, representatives from three unions active in state owned shipyards agreed on joint position towards Government, management and potential buyers, as well as on organising joint union actions if needed.  Shipyard unions believe that second tender will also fail, and that shipyard should be restructured first and only then privatised.