We have already been reporting about the months long strikes of the workers and small shareholders of the company “Jugoremedija”, and the mine “Nemetali” from Vranjska Banja demanding, without success, that the state honors the law and privatization contracts. Also, we have been writing about the stalled procedures for the cancellation of the privatization contracts, for instance, in the company “Agroseme”. The mines and the marble and granite industry “Vencac” from Arandjelovac, with more then 500 employees, is yet another name on the sad list of the once successful companies, pushed into the collapse and strikes by Vlahovic’s and Bubalo’s privatization.

“Vencac” is one of the companies assessed by Mr. Mirko Cvetkovic’s private company “Ces Mecon”, at the time he was Director of the state Privatization Agency. The initiative for the privatization of the company “Vencac” was set in motion by a Spanish company “Reverte”, one of the numerous foreign buyers interested in the purchase. Till 14 January 2002, the Agency planed to sell “Vencac” at the tender, however, without any explanation, it was included in the list of the companies set apart for the auction sale.

The auction was postponed three times, and the argumentation was that the potential foreign buyers asked for the additional deadlines in order to check the auction dossier, visit the company and so forth. No foreign investors, however, visited the company, and at the forth auction “Vencac” was sold to the consortium of the domestic natural persons consisted of Mr. Milovan Vulicevic, and Mr. Bozidar Petkovic, in the second round, for the formerly blocked foreign currency savings accounts.

None of the foreign companies which expressed interest in purchasing appeared at the auction. After signing of the contract, the employees found out that the social program, coordinated by the renowned unions and “Eukons”, Agency’s consulting company, was altered at the damage of the workers, which is why they pressed criminal charge for the forgery. In the meantime the company went down the hill. Mr. Petkovic informs the Agency that he is willing to meet the worker’s demands, but Mr. Vulicevic stalls with the fulfillment of his obligation, which leads to a further polarization.

The remuneration average falls from 17,200 dinars for 50 % in May 2004, which is when the workers received salaries for the last time. By the end of July, they initiate a strike, and Parliamentary Committee for privatization suggest the Agency to cancel the contract if the agreement between the strikers and the consortium is not made. The negotiations fail, thus the Agency initiates a cancellation of the contract on 11 August. The first hearing, scheduled for 16 September, was postponed because Mr. Vulicevic did not receive the litigation claim, the second, scheduled for 5 October, because he filed a complain on account of the temporary suspension on the free use of the property of “Vencac” ruled by the Court of Commerce on 16 September.

The account of the company “Vencac” was blocked a month ago. The strike continues, workers have not received salaries for almost half a year. 

In last year’s privatization report, the Council informed that “ the privatization was completely isolated from the complex project of the ownership transformation and strategy of the social development, because it is not in accordance with the broader context of the institutional and economic reforms”, and the life proved the validity of this statement. Behind the ideological phrases regarding the speed as the only criterion of success of the privatization, only a new circle of the crisis and instability remains.

Ms Verica Barac,
President of the Council