Another 195 workers to leave Factory of Cutting Tools and receive severance pays

The Director General of Factory of Cutting Tools (FRA) in Čačak, Milan Vidaković, said today (July 6, 2009) that 195 workers had applied for the third round of social programme within the scope of preparations for privatization.

Vidaković said to the press that the Ministry of Economy had set aside 57m RSD for the severance pays for workers, which would be paid by the end of July, and that only 550 employees would stay in the factory.

Total of 1,001 workers have already left the factory within the scope of two social programmes, which were carried out in 2004 and 2007.

According to Vidaković, FRA is getting ready for privatization on the tender with this third social programme.

Two previous tenders, announced in 2007 and 2008, were unsuccessful.

Total debts of FRA amount to about 14m EUR, 11m EUR of which are owed to the state and public companies for consumed fuels, while the rest of the debts is owed to the workers.

FRA sold two of its halls earlier to settle certain share of debts to workers.