Severance Pay secured for Workers of the Bankrupt Aluminium Smelter

Chairman of the Croatian National Assembly Dragan Covic said money had been secured and that by the end of the week, the severance pay will be received by about 500 workers from Mostar’s Aluminij smelter, who shut down production on July 11 because of the inability to procure electricity and a debt of about 400 million BAM.

He stressed that the Crisis Staff fulfilled all that was agreed and that the severance pay can be paid to anyone who wants it.

“385 people are expected to continue working and benefits are provided within the next two to three months. During this time, together with our strategic partner, we need to create the environment for production. I am convinced that it will happen,” Covic said.

He said that the salaries for July had been distributed and that the money for the August salaries had been provided.

Covic emphasized that Aluminum’s business must continue on a market basis, not that any losses will be covered.

He explained that the potential partners are an Israeli-Chinese company that is one of the largest aluminum and energy producers in the world employing around 110,000 people.

Covic did not want to talk about deadlines for starting production, but recalled that the partner was aware of the whole situation.

“The management estimate that it is needed about 20 million BAM to start production. These funds can only be given by a strategic partner who must be convinced that they have a purpose,” Covic concluded.

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