Workers at the Varteks textile company in Varazdin have been on strike since Monday over the non-payment of part of their wages for February and all of their wages for March. They told the press on Monday that they will continue the strike until the wages are paid and that they no longer trust the management member Jelena Bosnjak.

Varteks has been in a difficult situation for some time, but in the 105-year history of the company there have already been such moments that ended positively and Varteks continued production, said Tomislav Rajkovic, the president of the Croatian Trade Union Federation of Workers.

It is the first time that wages have not been paid for so long and production has not resumed, he said, adding that production will not continue until wages are paid.

The workers and Varteks itself are hostage to the value of the company’s assets, which have attracted the attention of large companies that want to acquire them as cheaply and quickly as possible, he said.

Bosnjak offered €50 to those who do not participate in the strike

The cause is also poor management, especially the current one, and board member Bosnjak, who has not organised the company’s business and policies according to its needs, Rajkovic said.

She no longer has the trust of the workers and we want her to resign and for the owner to appoint a new management, he added.

The union has a solution, which is that the creditors agree to the sale of Varteks inactive assets worth 20 million euros and that the agreement includes the company to continue production, he said.

Asked how Bosnjak had responded to the strike notice, he said that she sent workers a letter full of “untruths and lies” and that she tried to end the strike by offering €50 to those who did not want to take part in it.

Varteks’ general assembly is due to take place at the end of the month to discuss the recapitalisation of the company, but Rajkovic believes that recapitalisation alone will not be enough to restart operations.

Habijan: Varteks is a private company in which the state holds no shares

One of the majority shareholders, Stjepan Cajic, told the press that he understands the situation of the workers and that selling inactive Varteks real estate to pay creditors is part of the solution.

“The total debt secured by the creditors’ assets is about 22 million euros. Discussions have been held with the creditors, but the banks have the final say. In the event of a forced sale of the properties, all the money would go to the banks, which is why they have the biggest say in the negotiations. HBOR (Croatian Bank for Reconstruction and Development) is demanding the entire amount from the sale to cover the debt first, and only then would the owners and the other creditors negotiate how to divide this money.”

Cajic also said that the decision on the sale lies with the management.

Asked by the press about the situation at Varteks, Economy Minister Damir Habijan said that Varteks was a private company in which the state held no shares.

The government is helping Varteks as much as it can, he said, adding that Varteks has a board of directors, a supervisory board and a general assembly, “and it is up to them to resolve this situation in accordance with the law for the benefit of all citizens.”

When asked whether there is a chance of saving Varteks, the minister replied that this question should be addressed to the Supervisory Board and the General Assembly.