Борба, 18. 02. 2005., стр. 13

February, 2005. No 6

eCOnOomy

The last chance for textile WOrkers or a padlock

Ratification of free export of textile agreement from SCG to. the countries of European Union is expected inspring, but the big, question is whether it will ever be enforced, considering the

appalling, condition of natio- .

nal textile industry.

"The agreement on free export of textile to European Union market between SCG and EU is endorsed in De-

Bankruptcy

According to data of Union of independent syndicates of Belgrade City board of textile leather and shoe industry, between the years 2000 and 2003 few big textile companies went bankrupt in Belgrade: Beogradski pamucni kombinat, Sport-star, Partizanka, Crvena Zvezda „Mladenovac, Razvitak Mladenovac, Konfekcija 22. Decembar, Beko... According to the data of this board there are about OO001 legally employed textile workers in

· Belgrade and bellow 90.000 in Serbia.

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jer last year, wherečas its Tatification, that is its enfOrtement is expected in May Or April this year. If all circtumstances are taken into consideration, above mcentioned Agreement came at thc worst possible moment, that

i when the Serbian textile

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industry is going through bankruptcy process (Montecnegro textile industry is almost non existent given it Was never an important industry over therc).

To simplify, this Agrcecment is doublc sided, it rcfers to Serbia and Europcan Union.

The big dilemma is whecther this agreement once cenforced will be thc last chan-

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ce for Serbian textile industry to present itself at thc Huropean market says Blagomir Jovanovic the Union of textile, clothes, Icathcr and shoe industry secretary at the Serbian Chamber of Commerce.

Whether this chance will be taken or not is up to thc Serbian Government and its attempt to solve many problems of textile, clothes, lcather and shoc industry.

Many have expected this agreement in 2002 and 2003 when the situation was more plausible then today, but that was the ycar of barmonizing, Serbian and Montenegro market in relation to sugar affair... to thc cxpense of us all and to the expensc of textile industry stipulatcs Jovanovic.

"The good thing is thcrc is still a chance for textile industry, the question is if it will manage to identify thc interest of foreipn partners, and develop partncrship, meet the deadlincs, fulfill quality demands etc. In conversation with Jovanovic WC

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Successful

WWW | MAA

Blagomir Jovanovic from the Union of textile, clothes, leather and shoe industry considers: Trikotaza Ivkovic, Todor Vrnjacka Banja Jasmil Arilje, Nikolas, Legend... to be successful textile industries.

At the recent fashion fair in Diisseldorf according to him, Trikotaza Ivkovic had memorable presentation. Speaking about this traditional Fair, Jovanovic finds it incomprehensible that the state is not paying display stand for our textile workers who are suppo“ se to exhibit on international fairs, instead they have to find their own way to deal with it. We got financial help from foreign agemcies, amongst else for Diisseldorf fair. For example Romanian textile workers got fully paid by thcir government for the Diisseldorf stand, says Jovanovic.

found out that many textile companies are currently orientated on loan busincsses due to the lack of raw matcrial, equipment etc. It is evident that many of them are still: troubled with decbDbts, most often to thc state, through cxcess of employees, dated equipment and technology, as well as thc fact that the state did not do anything, to direct cxccss of employeces in state companies towards private busincs-

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ses and work for them. It mostly cnded up with unemployment services. The proof that it can bec done is Javor in Ivanjica state COm)pany undcr reconstruction

·which use to have 2000 em-

ployees amd currently has half of that number along with significant rcsults in production of t-shirts and shirts as acknovledged by

· forcipn investors.

- ] see the big chance tor national textile in high fashi-

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on industry which demands quality production. Namely, Italy, France and many other European countries, dislocated thcir confection production to the Europcan margins, to Romania, Bulgaria for example says Blagomir Jovanovic secretary of the Union of textile, clothes, leather and shoe industry.

Syndicates have, on the other side, their way of managing the textilc' position and their chances for rcecovery and to bc present at thc Europcan markct.

Branislay Canak, President of Union of industrial syndicates Neczavisnost says national textile industry is in very difficult position, they do not have the market now and they need help.

- Union of industrial syndicates Nezavisnost concluded the social cooperative project last year, which basically gives the opportunity, to the employees who are suspended, to hirc machines and for example, if wc are talking about textile workers, make socks. In

Increase of sugar export quo

180.000 tones is

Vice-president of thc Scrbian government Miroljub Labus confirmed for Tanjug, yešterday that Serbian and Montenegro European commission for commerce gencral directive is to establish 180.000 tones quote for Puropean market sugar CXport this year, which is the highest allowed quote for ćountries of western Balkan Within the framework of prefinancial status.

The information is correct and it is the result of our ncBotiations with Brussels, WC did not talk about a lot, but It turned out we managed to improve position of Our COUntry said Labus and addcd that at the same time the truSt of EU in our state officials related to sugar cexported has been regaincd.

| According to him, in nćčMotiations with Brussels thc beginning, quote of 150.000

the planned quote for sugar cčxport of

increased to 30.000 toncs, which is the highest quote in comparison with thc rcst of western Balkan countries.

According to unofficial announcements from Brussels the quote of 40.000 toncs has been predicted for Croatia. \Ve belicvc that with these 180.000 tones overall profit of national production can be exported to Huropcan Union and wc expect that the Union Council will make the decision fast said Labus and expressed conviction that Ministry of Commcercc will apply this quote appropriately. The gpovernment's Visć president announced statistics according to which since August thc 1Oth last ycar 205.081 tones of supgar were exported, at the price of 640 curos per tonc gives 1530 million curos, which is very

nice export incomc for sugaar cane production and all those involved in sugar production. As to the question on rCsolving, inadequate control of sugar export to EU countries, Labus replicd that thc current system, from thc field to the border, eliminatcs the possibility of the repctition of the situation or doubt whether the origin of sugar is national or not.

Custom system is updated, there is a very closc COoperation betwecn inspcector in commcrcc, Custom and other officials, so what happened in thc past cannot happcn again and that was the reason as to hoW we managed to raisc the quota, emphasized thc Visć president of thc gBOVCI-

nment. In order to validate thc Serbian and Montcncgro

Serbia and Montenegro to EU

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Ruropcan commission for commcrcc gpcnecral dircctivc ncpotiations betwcen EHuropean commission and the rest of western Balkan

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countries have to be concluded, and than all suggestions have to be adopted as onc by Union Council.

IF this process concludecs

western Romania, for example, there are about 3.500 of such cooperatives, which are working, for Italian market very successful says Canak. Morcover, Union of industrial syndicates Nezavisnost formed the Agency for creating social coopcratives. We informed authorized officials about this, expecting, that the state will be intercsted in Project and creation of cooperatives and that it

RHI RIR III III III INA NAINJNNI Visits

Serbian government officials should, one of these days start visiting textile companies throughout Serbia. Textile workers, we believe, will have a lot to say about their critical position, lack of money, excess of employees, administrative difficulties, disloyal competition in form of Asian cloths and shoes, which could be bought more or less anywhere etc. The examples of European countries which protect their market and producers through outside-custom measures, attests furthermore disloyal competition is a serious issue. Namely, for example, as a measure of protectiom, sanitary inspection of palettes for delivering the goods from Asian countries is required.

will assign funds for commencemcnt of their opcrability. Nothing came out of it so far, explains Canak. If our statc is quict about this and does nqt invest in this, why would World Bank, which along, with International work organization COVCred the creation of mcntioned Project rciterates Canak, president of Union of industrial syndicates NezaVISnOSt. Nada Rakic

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by this summer, thc decision on annual quota for SCG would be legally valid by July the 1st this ycar.

M. Janjic

Stuck Between Court and Syndicate

Up until recently Director of a textile company from Paracin (a town in central Serbia) Vojislav Nesic about the factory's Crisis

According, to the rcgulations of the Serbian Law on this year's5 budget, thc Ministry of Economy has rcacbed a decision on funds distribution end of January, Dbased on which it assigned 49 million dinars to Branko Krsmanovic textile company, a deficit company (with bankruptcy status of seven consecutivc ycars), to Start up production. But such a move of the Serbian govecrnmcnt was not followed by othcr levers of power the very samc day thc first payment was transferred to the account of Branko Krsmanovic company, a decision of the Commercial Court from Kragujevac camc in, ordcring thc company to go bankrupt again. hat way all efforts made by the company"s Board for Protection of Workcers”? Rights and Propcrty to recopnizec from 5 up to 8 consecutive ycars of work in service for the impovcrishcd company's employces, WCrC all in vain, says Vojislav Ncsic, ex-Director of Dranko Krsmanovic textile company and a member of the Board for Protection of Workcrs" Rights and Property of that company, for Borba Daily.

Nesic explains that, after a seven ycar- period of thc company's bankruptcy, thc workers (2340 of them) dcmanded from thc Commvrcial Court of Kragujevac to put an end to the company”s agony and cancel its bankruptcy. They gathered thc crcditors of the textile com-

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Cedomir Soskic

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Borba Weekly is published by Poslovni klub Borba Ltd. as Address: Trg Nikole Pasica 7, General Manager and Editor-In-Chief of Borba Daily: Executive Editor of Borba Weekly: Dragan Milenkovic

· Editors: Gordana Tomljenovic, Ivan Stamenkovic Journlist: Nermina Ajdinovic

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Texts in English prepared in cooperation with Tanjug

pany, apgreed with them on

_ the ways of solving, and paying off debts... The cmplo-'

yecs agreed to pay off 18,3 million Euros in six Years (with 3 years grace period) once they werc Out of bankruptcy. After some of thc creditors lodged a complaint to that, agreement, Drobably because they had becn left out from it (there WOC three of them. including, thc company” syndicate?!), thc High Commercial Court in Belgrade finally thc company back into Dbankru-

put

ptcy after five months.

In a month, thc creditors will discuss again the issuc ot debts of Branko Krsmanovic company, which will still not be working, Being out of production for so long. the company's valuc dropped from 130 million US dollars, according, to an inventory made before Dankruptcy, to 12 million USD. A part of the property went to an Italian partner, whilc the business expcenses during bankruptcy arc covered through the sale of company property...Thce best solution for the company vvould bc to work, as, some company officials havc told us, thcrc are partners interested in offering loan-dcals to thc WOrkers of the Paracin company. "There is also a market for textile products Bulgaria, Italy, Russia, vwvhich is not surprising, knowing, thc fame and reputation of thc textile made in Paracin in the past decades.

P.O. Box 629 Belgrade.