Union leaders at the 3. Maj shipyard in the northern Adriatic city of Rijeka said on Thursday that they had lodged a request for initiating mediation proceedings, following a delay in the payment of worker's wages for July.

According to the workers’ union, the monthly salary for 1,320 workers of the dock is normally paid until the 15th of every month.

The union said today it would abide by all the legal provisions in order to solve the problem, and conduct the upcoming negotiations in good faith.

Describing the current state of affairs at the company, the union complained about the shortage of raw material and equipment necessary for normal construction in an orderly manner.

The unionists said they hold the company’s current management and owners responsible for the state of affairs at the shipyard, and accused them of ignoring the company’s problems.

The union’s warnings followed after the dock’s recent financial report which showed poor results posted for the first half of 2018.
In the first six months of 2018, the 3. Maj shipyard recorded a total revenue of 109.5 million kuna (€14.8 million) in the first half of 2018, an 80 percent drop from the same period in 2017, and a net loss of 151 million kuna (€20.4 million).

By comparison, in the first half of 2017 the shipyard had reported a loss of 1.7 million kuna (€230,000).

In the first six months of 2018 operating revenue was 65 million kuna (€8.8 million), about 85 percent down from the same period in 2017, when it reached 445 million kuna (€60 million).

Sales revenues dropped from last year’s 397 million kuna (€53.5 million) to only 64.2 million kuna (€8.7 million). Total expenditure was 230.8 million kuna (€31.1 million) in H1 2018, compared to 439 million kuna (€59.2 million) in the first half of 2017.

The company’s assets as of June 30, 2018, totalled 1.27 billion kuna (€171.4 million), up by 35.3 million kuna (€4.7 million). Short-term liabilities reached 303 million kuna (€40.9 million), up from 248 million kuna (€33.4 million) in the same period last year.

(€1 =  7.41 kuna)

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