362 workers at Aluminij Mostar lose jobs, says report

Only days after the management at Aluminij Mostar, Bosnia, resigned, the plant reportedly handed over layoffs to 362 workers, that is, to the remaining workforce of the bankrupt giant. According to the report, dismissals were handed over to the workers with varied notice periods, so that the plant could be able to finish the backlog before closing down.

Aluminij deliberately chose to conclude the layoff action at the end of the year to ensure that all those losing their jobs receive severance pay. Also, many of those laid off this week would be engaged in high-voltage and high-voltage maintenance field on new contracts after January 31.

However, despite the layoffs, the management is continuing to negotiate with Israeli conglomerate and Chinese investors consisting of China Machinery Engineering Corporation (CMEC), and China Non-Ferrous Metal Industry’s Foreign Engineering & Construction, and headed up by M.T. Abraham Group of Tel Aviv. The consortium’s latest deal, which was received in September, was not found palpable by the government due to requirements for subsidised power and debt payment assistance from local governments.

Aluminij management decided to idle the plant after its search for a strategic partnership and several rounds takeover talks with Glencore and other possible investors fell through.

Bosniak-Croat Federate is, at the present, the plant’s single biggest owner with 44 per cent stake. The Croatian government holds another 12 per cent stake, while the remaining owned by several smaller individual shareholders.