Bankrupt factory

Gov't to pay HRK 27.9 million for Djakovstina workers' severance packages

25.10.2011 u 15:00

Bionic
Reading

The Croatian government on Tuesday approved the payment of HRK 27.9 million from budgetary reserves to settle the debt towards the former employees of the Djakovstina flour factory.

The government adopted the decision to pay from budgetary reserves severance packages for the 350 workers of the bankrupt factory based in the eastern town of Djakovo.

PM Jadranka Kosor announced that an agreement with representatives of former Djakovstina employees would be signed tomorrow at the Justice Ministry, adding that the payment would start as soon as she signed the decision adopted today.

The decision on paying severance packages will include all Djakovstina workers except members of the managing board.

"The workers will be paid because they were brought into this difficult situation by someone else's fault," Kosor said, adding that she announced the solution to the Djakovstina problem last week, at talks with former Djakovstina employees who had been protesting outside their former place of work for nearly two weeks.

Djakovstina has been in receivership since January 2010.