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New wave of privatisation may do away with job guarantees

Croatian Times

Nearly 100,000 workers could lose their jobs if the government goes ahead and scraps the social clause guaranteeing jobs to old employees of newly privatised companies.

Most of these companies in which the Croatian government owns the majority of shares are or will be ready soon for privatisation, according to the Croatian Privatization Fund (HFP).

Prime Minister Jadranka Kosor said that the state has prepared the conditions for privatisation of its shares in 484 firms. The nominal value of that portfolio is estimated at 11 billion kunas (1.52 billion Euros). The State owns a small amount of shares in the majority of those companies and is the largest shareholder in only 59 firms.  The value of these shares is 7.2 billion kunas (993 million Euros), although it is unlikely that they will fetch that price considering the poor state of many of these companies.

Sources close to the government have said that the wave of privatisation will eliminate the social clause that guarantees that old employees can keep their jobs for at least one to two years, the Croatian daily Jutarnji List writes.

The government says it needs to sell the companies as easily and as quickly as possible, so that new owners could put them back on their feet.  Some independent consultants like Ante Babic say that this is not a bad idea.

"Many of the firms would have been sold already if this had been done. This way, we have cemented the current state which neither increases employment nor makes us richer," Babic said.

He estimates that contrary to unions’ claims, no more than 50,000 people would lose their jobs, and this includes employees of the shipyards. Some of these workers have already found alternative professions or have gone back to their traditional occupations, Babic added.

Tag cloud clause  social  employees  majority  kunas  guarantees  feet  Euros  value  Ante  Babic  estimated  jobs  Croatian  government  privatisation  owners  consultants  workers  billion

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