The union at EPCG – Nikšić Steelworks and the Union of Free Trade Unions have voiced concerns over the lack of transparency in the leasing process for the Nikšić Steelworks production facilities.
“We are closely following the leasing process of the Nikšić Steelworks production facilities with great concern. Employees at EPCG – Nikšić Steelworks and the public are eagerly awaiting the resolution of this long-standing issue and a viable solution for reviving the Montenegrin economy. However, the secrecy surrounding the entire process since the conclusion of the Public Call and the signing of the lease agreement with ‘8B Capital S.A.’ Lugano on July 26 is troubling. It was only 20 days after the signing, following numerous written and verbal requests, that the EPCG – Nikšić Steelworks union received access to the lease agreement. We are bringing this to the attention of the Montenegrin public,” stated the EPCG – Nikšić Steelworks union and the Union of Free Trade Unions of Montenegro.
They are questioning why union representatives were not included in this process, which they argue is crucial for them and their families and is mandated by labor laws.
“The law requires that ‘the predecessor and successor employer’ (in this case, the Lessor and Lessee) notify the union at least 30 days before any change in employer status about: the date of the change; the reasons for the change; the legal, economic, and social impacts on employees; and all measures regarding employees whose contracts are being transferred. We believe the exclusion of the union from this process is why the lease agreement only superficially addresses the concerns of the 280 employees at EPCG – Nikšić Steelworks, who are left with many unanswered questions that the agreement should have clearly addressed. According to the lease, the Lessee will initially take 25 employees in the first month and an additional 25 employees each subsequent month for five months, with a total of 150 employees to be taken on. The agreement’s handling of employee status is highlighted by a clause stating that ‘the contracting parties will discuss and agree on arrangements for employing factory workers by the Lessee.’ This raises concerns about repeating past issues with the Steelworks’ privatization,” they said.
The lease agreement does not specify the status, rights, or conditions under which EPCG – Nikšić Steelworks employees will transition to the Lessee.
“Additionally, it does not clarify the status of the 130 employees whom the Lessee is not obligated to take on, even though all production facilities, machinery, and associated equipment are being leased. Such disregard for the employees’ welfare is unacceptable. We will not allow any legal transactions involving the Steelworks’ assets until we have a clear understanding of the guarantees for the employment status of all current employees at EPCG – Nikšić Steelworks. This is why the union will request an urgent meeting with the Minister of Energy, Mr. Saša Mujović, to clarify this critical issue before taking any further actions,” they emphasized.
The union noted that it had refrained from commenting during the Public Call process for leasing the Steelworks to avoid interfering with it.
“We sincerely trusted the assurances of all key stakeholders that preserving the Factory and the status of its employees was a top priority. Employees at EPCG – Nikšić Steelworks have no choice but to fight to preserve the Factory and their jobs. For the sake of the employees and the recovery of the Montenegrin economy, we must not allow the Steelworks to fail again,” concluded the statement signed by Srđa Keković, General Secretary of USSCG, and Ivan Vujović, President of the EPCG – Nikšić Steelworks Union.
