Unions Warn: Without Law, Bankruptcy and Closure of 1,600 Jobs in Nova Željezara Zenica Will Follow

(Patria) – The Metalworkers' Union of the Federation of BiH, the Metalworkers' Union of Zenica-Doboj Canton, and the Union of Nova Željezara Zenica have sent an open letter to the collegiums and chairpersons of both houses of the Parliament of the Federation of BiH, demanding an urgent session of the House of Representatives and the House of Peoples to consider and adopt the proposed Law on the Procedure of Extraordinary Administration in Nova Željezara Zenica.

Union representatives warn that "there is no more time," stating that management has already initiated changes to the job systematization, which abolishes 1,198 positions, potentially resulting in a surplus of up to 1,600 workers.

At the same time, a reporting hearing is scheduled for June 25th before the Municipal Court in Zenica regarding the existence of grounds for bankruptcy, at which the court may decide to open bankruptcy proceedings.

"According to Article 133 of the Bankruptcy Law, on the day bankruptcy is opened, all employment contracts of workers cease. And that is the end," the unions warn.

In their open letter, they reject claims that the law would represent nationalization or expropriation of property, emphasizing that the goal is to preserve production, assets, jobs, and an industrial chain of special importance for the Federation of BiH.

Union representatives point out that adopting the law would prevent the initiation of bankruptcy or pre-bankruptcy proceedings, and that with the establishment of extraordinary administration, employment contracts would not cease for workers.

"Talking about better protection or position of workers in bankruptcy, after they end up at the employment office, is completely absurd," they stated.

They also state that the law does not derogate from labor regulations, and that the union retains the right to represent workers and cooperate with the extraordinary administrator. They also remind that salaries, contributions, and benefits would have priority in payment after the extraordinary administration procedure is opened.

They specifically pointed to the provisions of the law that allow for the audit of financial reports, forensic analysis, and examination of potential responsibility of management and related parties for harmful actions or abuses.

"Opening the extraordinary administration procedure does not absolve the previous management, supervisory board, company members, related or other persons from responsibility for violating the law, concealing assets, or favoring creditors," the letter states.

Union representatives claim that "too much politics is entangled in the whole story," and accuse management of defending exclusively their own interests, while workers bear the consequences of the decision to shut down integrated steel production.

"The industrial chain, which employs tens of thousands of workers, is threatened," they warn.

In conclusion, they state that the law may not be perfect, but that there are no other options left.

"The damage will be incomparably greater if we allow a permanent suspension of production and the closure of jobs. This will cause a chain reaction and a complete collapse of the most important industrial system in the country," the unions concluded.