The President of Novi sindikat, Mario Iveković, and the President of the TOKG Croatia Union, Nenad Leček, sent a letter to Prime Minister Andrej Plenković on Tuesday. They requested urgent information regarding the Government’s plan for the Požega based textile company Orljava and the potential for paying workers’ severance.
Iveković and Leček reminded the Prime Minister that Orljava has been in bankruptcy since July 13, 2021. The 172 workers employed at the time were dismissed shortly after bankruptcy proceedings opened, with their employment ending on July 22.
“We must emphasize that these are female workers with an average age of 50. Many are only a few years away from retirement, and finding new employment will be extremely difficult due to both their age and the lack of available jobs,” they stated.
Currently, about 20 workers are employed at Orljava on very short term contracts until October 15, solely to maintain production and prevent the factory from shutting down entirely.
The union leaders recalled a meeting at the Government on June 30, during a worker protest, where they emphasized that finding a strategic partner to ensure Orljava’s sustainability was the priority. At that time, the Minister of Physical Planning, Construction, and State Assets, Darko Horvat, promised that a strategic solution remained the goal.
“However, to this day, we have received no specific information regarding potential partners or securing future work for Orljava. We warn that the creditors’ reporting hearing where the bankruptcy trustee’s report will determine the future of the bankruptcy plan is fast approaching,” Iveković and Leček noted, adding that the hearing is scheduled for October 15.
They also pointed out that under the collective agreement, workers are entitled to eight severance payments. Three of these are covered by the Agency for the Protection of Workers’ Claims (AORT).
“We believe the Croatian Government is responsible for the payment of these claims. Therefore, we ask you to inform us as soon as possible about the Government’s plan and the possibility of paying the workers their full severance,” they concluded.
On June 30, Orljava workers protested in front of the Government building (Banski dvori), demanding talks about the company’s future after not receiving salaries for three months. An agreement was reached that day between Novi sindikat, the TOKG Union, and the Government regarding the payment of back wages and the search for a strategic partner. Minister Horvat then stated that liquidation was not being considered and that intensive talks were underway with Hemco from Đakovo.
On August 13, Horvat mentioned that Orljava had received two letters of interest and stated he did not want Orljava to become a “small Uljanik.” By August 18, he confirmed that three unpaid salaries had been settled. He also noted that Orljava’s problems dated back to 2012 but were exacerbated when the German brand Olymp withdrew its orders. Horvat mentioned that Olymp no longer wished to do business with Orljava but was open to working with Hemco.
Hemco expressed interest in leasing Orljava’s premises and rehiring approximately 70 workers. Currently, 23 workers are engaged on existing contracts, with more to be recalled from the Employment Office as needed.
The text was originally published on tportal on 5 October 2021.
Cover photo: Workers’ rights
