09.11.2014.

Minister of Defence at the meeting with representatives of the defence industry of Serbia

Minister of Defence Bratislav Gasic met today with representatives of representative unions, management and members of boards of directors of the defence industry of Serbia at the House of the Guard in Topcider.

After several hours, an agreement has been reached with all members of the meeting. The talks continued so as to specify the cooperation in 2015.

After the first part of the meeting, while addressing the press, Minister Gasic said that this is the sixth month that “we have visited one factory after another, going into many details on business of the past twelve years”, and that there has never been a meeting where all representatives of unions are not present and cannot debate openly and equally about their issues.

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I have placed before the unions data they had not been familiar with – how much Serbia has previously invested in special purpose industry. Moreover, I talked about which local self-governments didn’t want to convert their debt, like Kragujevac and Trstenik, in order to be liberated of these commitments, and for how many years their previous or present directors have not paid their contributions and taxes, which is why some cannot retire, Minister Gasic said, adding that he also stated how much money the Armed Forces of Serbia have given from its budget for procurement of new means and renewing resources of expired means.

Addressing the strike announcements and complaints of the unions about partisan hiring of directors, Gasic stressed that the strike would bring the gravest damaged to the employees and added that “the supervising boards are the one choosing the best candidates, no one will impose their solutions, but the chosen directors should pay contributions and taxes every month”.

According to him, another important topic is the relation towards the Armed Forces of Serbia.

- It cannot occur that, when you have foreign exchange earnings and contracts with foreign partners, you forget the Armed Forces of Serbia. It needs to come first – Gasic stressed.

Answering to press inquiries about whether it is possible to fulfill the requests of the union representatives, Minister Gasic said that if they ask for help from the Government of Serbia in more affordable loan arrangements, in receiving money for investments from the Development Fund, they need to help the state.

- It is true that these are not public companies, but the state owns 100% of the capital. Between 2000 and 2012, taxes and contributions were not paid, and that was being allowed. The state had no intention to aggrieve the employees, but to create a fairer division so the state could keep helping the factories. 100 million euros was invested by Serbia via the Development Fund in seven special purpose factories, and those means were turned into capital of these companies, and have never been returned. This can no longer be the practice and this is why we have to bring certain things to balance – Minister Gasic stressed.

One of the unions’ complaints was that the factories could not employ new employees.

- Today, we also introduced the representatives of the unions with the Government’s agreements on employing workers in all seven factories of special purpose in the previous six months. In December 2013, a social program was created which was on voluntary bases, and good craftsmen left. We are now drafting a new social program, but not of a voluntary nature, because we wish to keep the good workers in the factories. From now on, boards will employ professional people that will do their jobs well. There is no reason for the strike because the representatives of the unions are involved in all plans for the future that are in their best interest. For the first time, employees have possibilities to influence the creation of their future and factories – Minister of Defence stressed.

Representative of the unions of the six special purpose industries Dragan Ilic said that their main request was for them to be excused from the Government’s suggestion on reducing salaries of employees in the state’s production companies, because employees of these companies “work in difficult conditions and deserve a different treatment than the rest”.

- The key reason we are here today is the decision to reduce the salary of the employees in the defence industry by 10 percent, which caused revolt in all factories, and we have scheduled a one-hour strike for Thursday. We do not know if the strike will be held and we have no plans after that – Ilic said, adding that they are very pleased with today’s talks, and that this is an example of good cooperation that is aimed at resolving potential misunderstandings.

He added that the support of the state has so far been such that, without it, the factories would not exist and that present talks are headed in the right direction.

General Dikovic stated that the Armed Forces of Serbia carefully follow the development of the special purpose industry and all commitments to that institution.

- The Ministry of Defence and the Armed Forces of Serbia have in the last 2, 3 years invested maximum efforts in enabling the special purpose industry to do business with a positive outcome and in providing every possible help. This year, we had a billion and two hundred million dollars allocated for equipping the special purpose industry, and late this year we have allocated 448 million for equipping the military from the effectives of the special purpose industry. We have great plans for developing and modernizing arms and military equipment together with the Military Technical Institute, and technical test centers. There are good prospects, we need to work and conduct our obligations the right way – General Dikovic said.

Director of “Milan Blagojevic” Company from Lucani Rados Milovanovic called upon the unions to “calm passions”.

- The state has always been and will always be there for us. Let us calm passions, let us talk and find the best solution – Milovanovic said and added that the military industry is perhaps the most successful industrial branch in Serbia.

The meeting at the House of the Guard was also attended by the State Secretary at the Ministry of Defence Zoran Djordjevic and Head of the Defence Technologies Department Major General Bojan Zrnic, PhD.