zapata at sezampro.yu
Fri Oct 29 01:30:54 CEST 2004
JUGOREMEDIJA ON STRIKE
"BOUGHT BY THE MAFIA!"
Few days after The Share Fund of the Republic of Serbia
sold 41,93 % of shares of a pharmaceutical factory from Zrenjanin
"Jugoremedija" to a company "Jaka 80" from Radovis (Macedonia) at the
auction on 10 September 2002, according to the testimony of the President of
the Association of Jugoremedija's small shareholders Mr. Zdravko Deuric,
Director at that point, Mr. Srdjan Kamenkovic, who followed the auction and
took an active part in the preparations for the sale of the factory shares,
advised the workers to collect the majority package as soon as possible in
order to protect themselves from the future events. The workers -
shareholders of "Jugoremedija", whose worker's and owner's rights are now,
two years later, annulled by the state and a new co-owner, remember the fear
of the former Director, who, in September 2002, said loud and clear - We
were bought by the mafia! -
It is then that the workers - shareholders found out that
the owner of "Jaka 80", Mr. Jovica Stefavnovic - Nini, from Nis, a man to
whom the state sold 41,93% of the factory shares, was on a wanted list, and
not allowed to enter Serbia.
23 August 2004 (Blic)
The arrest of President of Jugoremedija's small
share holders, Mr. Zdravko Deuric, together with two other members of this
Assocciation, suggests that Serbian authorithies are now covering up
violations of law and privatization contracts, otherwise sanctioned at the
politically suitable moment.
We remind that Share Fund allowed the buyer of the
41,93 % of Jugoremedija's shares, Jaka 80 from Radovis to take over the
factory prior to the fulfilment of terms, and illegal increase of the
capital fund by debt conversion, making Jaka the owner of 60 % of the
shares. In view of such cirucumstances, which shareholders of Jugoremedija
have been trying to prove for months, no one was taken into custody, not did
the Government took time to check the allegations of money laundry and
corruption in the process of buying and selling of the Jugoremedija's
At one moment, the Government accepted the findings
of the Anti-Corruption Council, Assembly's Board for Privatization, and
Securites and Exchange Commission that the procedure was illegal. Ministry
for Economy performed a supervision and on 13 May instructed the Share Fund
to cancel the contarct with company Jaka. Although the law stupulates that
this Fund should act pursuant to the Ministry's instructions withing the
period of 30 days, it did not happen. When the shareholders saw that there
were no reaction from the State they organized themselves, and now the State
is arresting them in order to cover up the fact that the law was abandoned
in favor of the idea of quick privatization. During months-long blocade of
Jugoremedija, on several occasions, Jaka tried to enter the factory on
force. Each time a fight between shareholders and private security broke up.
Director brought 50 men from the same security who attacked the shareholders
previously. When the incident occurred, the shareholders, deceived once
again, blocked the factory. On Friday three members of the Association of
the shareholders were taken into custody due to the breach of law. At the
moment they are sentenced to solitary confinment. On the same day 26 workers
who participated in the strike were fired. After the arrest of Jugoremedija's
shareholders, maybe the Anti- Corruption Council should invite citizens of
Serbia to stop fighting against the corruption, unless they want to end up
in a prison.
Ms Verica Barac,
President of the Council
Fortnight after the auction, at the invitation of Mr.
Jovica Stefanovic, Mr. Kamenkovic travels to Skoplje. While he was away, the
workers quickly collect authorizations in order to form the majority share
package, and appoint Mr. Zdravko Deuric as their representative. Mr. Deuric
makes an appointment with Director upon his return from Skoplje, to arrange
further steps. Without an explanation, Mr. Kamenkovic informs him of his
retirement. On 3 October, Director receives a fax from Skoplje suggesting
new Management Board composed of seven members, should consist of four
representatives from "Jaka", and three representatives from other
shareholders. Mr. Kamenkovic accepts and on 4 October, without consulting
the workers, suggests three members of the MB on behalf of the small
shareholders. A part of the story has been cut off obviously, both from
Jugoremedija shareholders and public, which only testifies of lack of
confidence in the work of the state institutions in Serbia, distrust in the
protection of legality, and possibility to turn to the state in need for the
protection against the violence.
The workers - shareholders are puzzled that "Jaka 80" has
not yet registered its ownership in the Register of the Court of Commerce.
To end the anticipation, Mr. Deuric tried to contact a new co-owner, and
received the number of Mr. Stefanovic from the accounting department where
Mr. Stefanovic already began with instructions issuing. In the midst of
October, Mr. Stefanovic and Mr. Deuric arrange a meeting in Skoplje, because
"Jaka 80's" owner was not allowed to enter Serbia. Mr. Deuric, together with
the President of the Jugoremedija's Union, Mr. Vladimir Pecikoza, leaves on
a trip with a business car from Jugoremedija. At the meeting in "Jaka 80's"
office in Skoplje, Mr. Stefanovic gives his assurance to respect the rights
of other shareholders, and talks of factory future. Mr. Deuric, and Mr.
Pecikoza return to Zrenjanin more or less pleased, except from a minor car
accident, and the fact that Mr. Stefanovic refused to give them a tour of a
pharmaceutical factory in Radovis, under excuse that it was too far away.
Till Jugoremedija Shareholder's Meeting on 22 October
2002, small shareholders form a package of 41,83 % of Jugoremedija shares,
little less than the share of "Jaka 80". The workers- shareholders vote Mr.
Zdravko Deuric, Ms Emilija Mihajlovic, Ms Olivera Zakic, Mr. Radovan Popov,
Mr. Duda Radakovic as representatives at the Meeting. At the Meeting, "Jaka
80", the major individual part-owner appoints four members of the Management
Board and a new Director, Mr. Aleksandar Radovanovic from Nis. Instead of
three members suggested by the former Director small shareholders choose
their MB members, namely Mr. Srdjan Djujic (immediately appointed Director
of Jugoremedija's daughter company "Remevita", at present Deputy of
Jugoremedija's Director), Ms Slavka Medjo (although a pharmacist, soon
becomes a chief of "Jugoremedija's" sale department, where she worked till
supplies worth 11,5 million euros were sold, at present Director of the
tablet department, which she tries to animate with new workers after 103
"Jugoremedija's" workers - shareholders were dismissed, and Ms Olivera
Grozdanovic (later suspended from work).
After promoting or suspending all three of them, there
were no one to protect the interest of small shareholders in the Management
Even after the Shareholder's Meeting, "Jaka 80" still does
not register "Jugoremedija's" bought shares in the Register of the Court of
Commerce, although it was obligatory according to the contract on share
sale. It will turn out that it was one of the numerous reasons to break the
contract, disregarded by The Share Fund.
HOW DID "JAKA 80" BECAME A MAJORITY OWNER?
After the first Shareholder's Meeting the workers continue
to collect authorization and collected 51 % of shares. Nevertheless, members
of the Meeting Mr. Zakic, Mr. Popov, and Mr. Radakovic abandon the workers-
shareholders soon, and Director Radanovic begins to threaten the workers
collecting the authorizations with dismissals if they do not stop. Small
shareholders are still not aware that "Jaka 80" failed to present a bank
guarantee for the increase of capital fund, bound to by the contract on
share sale, without which The Share Fund was not supposed to sign the
contract. Even so, it will soon become clear that Mr. Stefanovic never
intended to invest in "Jugoremedija".
At the Shareholder's Meeting that was not held ( it was
allegedly held on 17 June 2003), "Jaka 80" reached a decision to increase
the capital fund of "Jugoremedija", trough conversion of "Jugoremedija's"
claims towards "Jaka 80" (made, according Ms Emilija Mihajlovic, after Mr.
Radanovic came to "Jugoremedija", by unnecessary debts, among other things
in raw materials for the medicine "Viziren, which has a very poor sale on
the market). Pursuant to this decision "Jaka 80" registered its equity of
61,02% of "Jugoremedija's" shares in the Register of The Court of Commerce.
Performed conversion, that is increase of capital stock, was formally
legalized by "Jaka 80" trough Securities and Exchange Commission and Stock
Exchange, and represented as an increase of capital fund (360 million
dinars) from the sale contract.
The Court of Commerce, Share Fund, Securities and Exchange
Commission, all the authorities able to prevent such violation of the law
and contract allowed, however, such "increase of capital fund".
Silent treatment of the media
(an abstract from the article "Evil strikes rear
their head again" by Mr. Nebojsa Popov, "Republic"340-341, 1 till 30
Reading today's media, namely issues about strikes
and strikers, may lead to the impression that, nowadays, they represent a
sort of a bogey man of the socialism and self-management, hushing up the
laziness and idleness, and other similar mischief, whereas they, "nip in the
bud" the wheels of history, moving towards the unstoppable victory of the
capitalism. Sometimes, even the journalists and the media with reputation of
being serious , regard them as - Stalinist. We do not, however, deny the
presence of us Stalinists, as well as members of other wicked ideologies,
but if we do not talk about it analytically, factually and with arguments,
we only repeat the ideological disqualifications and harm the clarification
of the events and their possible outcomes.
Ideological and promotional production of evil
strikes and strikers is most obvious in hiding of the actual participants
and subject of the dispute. It is best seen in the approach to strikes where
participants, like in "Jugoremedija case" from Zrenjanin, are, on both
sides, shareholders. Although the strikers represent a private owner, the
name applies mostly to the majority share owner, or a pretendant to such
position. Than, in the name of ''her holiness'' the private ownership, one
opens fire on strikers as the enemies of the private ownership, adversaries
of the inevitable privatization and even more irrevocable capitalism, and by
the hand of the lazy and idle persons, self- managers, defenders of the
social ownership and other more or less scary ghosts and phantoms.
Conflict of the owners
Till April - May 2003 Mr. Radovanovic sells "Jugoremedija's"
stock supplies in the value of 11,5 million euros, found upon the entrance
in the factory, and continues to bully the workers - shareholders. In
December 2003, Mr. Deuric, Mr. Pecikoza and another member of the Union got
sacked due to the car accident upon the return from the meeting with Mr.
Stefanovic in Octorber 2002 in Skoplje, on account of damaging
"Jugoremedija" for 30 thousands dinars, the cost of the car repair. As a
sign of a protest, on 11 December 2003, 260 "Jugoremedija" workers went on
strike. The Board of the strikers stipulates 12 demands of syndicate nature
(increase of salary, then the same as before 10 September 2002, termination
of the harassing of the workers- shareholders and so forth). In attempt to
intimidate the workers, Mr. Radovanovic hands 120 warnings prior to the
dismissal. Three dismissed workers chain themselves to the factory, and
tomorrow another six colleagues join them. The Inspection from Zrenjanin
returns the dismissed workers to work, and in early morning on 1 January,
Mr. Jovica Stefanovic shows up for the second and the last time in
"Jugoremedija" - with more than dozens members of the private security in
jeeps, to negotiate with the strikers. "The negotiations" fail, and Mr.
Stefanovic retreats with his army. Also, warnings are withdrawn, and on 6
January, with mediation of the President of Municipal Assembly, the strikers
made an Agreement with the management, whose Director promised to fulfill
all 12 strikers' demands, thus ending the strike.
Due to the disrespect of the Agreement from January 2004,
on 11 May "Jugoremedija's" workers-shareholders initiated another strike.
Director Mr. Radovanovic fails to forward the minimum of the working
process, list and decisions applying for the workers to the Board of
strikers, which he was obligated to do in the beginning of the strike on
behalf of the employers, which is why even after 11 May the workers
continued to work in full. Instead of determining the minimum of the working
process, on 22 May, "Jugoremedija's" Management Board stopped the
production, informing the employees that, if they feel threatened, they
should stop coming to work, for they would continue to receive salaries on a
regular basis. During the strike, small shareholders initiate a legal suit
with The Court of Commerce to erase the illegal registration of the increase
of capital stock in the Register of the Court. The Court of Commerce in
Zrenjanin and The Higher Court of Commerce in Belgrade reject the demand on
account of pro forma reasons, hence, small shareholders ask for the revision
by The Supreme Court. The Supreme Court has not yet ruled.
At the political rally in Zrenjanin held on 17 May, former
Minister of Economy and candidate of the leading coalition for the President
of Serbia Mr. Dragan Marsicanin, announced that Ministry of Economy would
instruct the cancellation of the contract with "Jaka 80".
Ministry of Economy, which in the meantime, from 8 April
till 13 May conducted a supervision over the legality of the privatization
procedure of "Jugoremedija", reached a decision on 20 May, instructing The
Share Fund to cancel the contract with "Jaka 80" regarding purchase and sale
of 41, 93 % of "Jugoremedija's" shares.
On 17 May, The Court of Commerce in Zrenjanin brings a
temporary measure aiming to protect the shareholders capital within 60 days.
Till today, The Share Fund did not act by order of
Ministry of Economy initiating cancellation of the contract with "Jaka 80".
On 29 June, Director Radanovic makes a new attempt,
together with fifty members of the private GPS security, to "invade" the
factory. In early morning, the GPS security jumps over the fence into the
factory walls and kicks out dozen strikers who were inside at the time. Mr.
Radovanovic makes a public statement saying possible illegality in the
increase of capital stock of "Jugoremedija" are insignificant, whereas the
relevant issue is to restart the production in the factory. The radio B92
broadcast Mr. Radanovic's statement that " there is more to it on both
sides. The fact is that the factory was not working for 40 days, that it was
blocked for 30 days, the fact is, moreover, that there was a great danger of
bankruptcy, because, according to the law, after 60 days of blockade The
Court of Commerce initiates a bankruptcy procedure".
Mr. Radovanovic, nevertheless, continues to avoid setting
the minimum of working process, thus prolonging to blockade the company. On
29 June, in the afternoon, the security and Mr. Radanovic were again thrown
out by the strikers.
The Share Fund does not initiate a legal suit for the
cancellation of the contract, explaining that Foreign Trade Arbitration, a
very expensive one, is in charge for the suit, and the Ministry does not
explain who is to bear the expenses of the suit. On 16 July, the workers-
shareholders came to Belgrade and block The Share Fund, demanding the
fulfilling of the demand of the Ministry of Economy and initiation of the
suit for the cancellation of the contract. In the meantime, however, "Jaka
80" pressed charges against The Share Fund with the Court of Commerce in
Belgrade to cancel the Contract on investment, and, on Monday, 19 June The
Share Fund responded with counterclaim for cancellation of the basic
contract, thus avoiding the expanses of the foreign trade arbitration, but
also, a proceeding by order of Ministry of Economy.
6 August 2004 (Blic)
Private army as a substitute for the institutions
The agreed working minimum in the company
"Jugoremedija", was used by the co-owner of the factory "Jaka 80" merely to
get even with other co-owners, demanding the cancellation of the sales
contract with "Jaka", because it violated the investigation obligation.
Immediately after entering the factory, "Jaka" brought private security
provoking conflicts with the small shareholders during the period of two
weeks, and using one incident to beat up the workers on 19 August.
In the conflict where one co-owner leads a private
army, the State took side of the stronger one. On 19 August, police faced
the unarmed shareholders, while behind the back of the cordon "Jaka's "
security were breaking into the warehouses of "Jugoremedija". The police
backup, emergency units from Belgrade, under the command of General Milivoje
Mirkov, arrived and arrested three members of the Strike Board. Tomorrow, 26
workers and shareholders of "Jugoremedija" were dissmised by Director, and
police detained the arrested stikers in the custody under the suspicion that
they might influence the witneses.
Eighteen shareholders went on hunger strike, still
going on, demanding that 26 workers should be returned to work. The others
continuned the stirke in the factory canteen, tailed by armed security. At
the same time, "Jaka" is violating the working minimum agreed with the small
shareholders, and under suspension threat, summons the workers among the
strikers whose engagement was not agreed, to substitute the colleagues who
were in the agreed minimum. The shareholders are suspecting that
"Jugoremedija" is producing more drugs than agreed by the minimum, because
the workers summoned to the factory work on jobs unnecessary for the
minimum. The media in Serbia mostly reported lies regarding the true nature
of the conflict. It was impossible to learn that the conflict in
"Jugoremedija" was between co-owners, and small shareholders were regarded
as former self-managers, followers of Staljin's regime, inert, worshippers,
while "Jaka" was reputed as the sole owner of the entire "Jugoremedija",
prohibited to enter property by the danagerous "elements"
Since the beginning of the institutionalization
promissed by the present Government in the election campaign, merely the
authority protecting private property of only one owner remained, namely the
one surrounded by the private army.
If Mr. Jovica Stefanovic Nini, the owner of "Jaka",
wins "Jugoremedia" by fraud and force, and supported by authority, will he
realize that the authority is obsolete and replacive by the private army?
Ms Verica Barac,
President of Council
"Mediation" of the State
During June 2004, Coordinator of the Ministry of Economy,
Mr. Predrag Bubalo makes strong pressures on the strikers to return the
management into the factory. Mr. Zdravko Deuric states that in those talks
Minister had an almost identical point of view as "Jugoremedija's" Director,
Mr. Radanovic - that the fact that the increase of capital stock meant
direct negation of the law was irrelevant, like the fact that the
Shareholder's Meeting did not decide on the increase of capital stock,
instead it was a decision of one owner only, the relevant issue, however, is
to initiate the minimum of working process. With the help of Minister
Bubalo, on 5 August, the management forwards the Board of Strikers a
suggestion for the minimum working process, which should employ 77 workers.
The Board of Strikers accepts the suggestion, and the management returns to
"Jugoremedija". It will soon become obvious what Mr. Radanovic had in mind
with initiation of the working process. Minister Bubalo protects one of the
owners, namely the one already protected by the fact that he is the major
individual owner, whereas management of the equity and protection of
interest is much easier that in the case of the small shareholders, whose
number surpasses three thousand. Instead of enabling the protection of small
shareholder, Minister of the Government of Serbia, Mr. Predrag Bubalo fails
to protect the principle of the protection of private ownership of each
owner, interfering in the conflict between the two owners protecting only
one of them - the one known for violation of the contract, determined by the
Ministry of Economy in the supervision procedure.
On 6 August, Director Mr. Aleksandar Radanovic wrote a
written reply to the demand of the Board of Strikers, giving, among other
things, consent to their request that security measures should be performed
by "Jugoremedija's" workers, along with the employment of a new labor force
trough Employment Bureau.
On 16 August, nevertheless, around hundered and twenty
armed members of the private GPS security enter the factory and kick the
members of the Board of Strikers, together with the strikers performing the
The police in Zrenjanin interfered immediately and the
members of the Board of Strikers return to the factory on the same day. The
police stands between the strikers and private GPS security, with purpose of
disabling the physical contact and possible conflict. The Board of Strikers
asks the police to check the members of the private GPS security, as well as
the purpose of their presence, the police, nevertheless, disregards the
request of the partial "Jugoremedija's" owners to investigate the purpose of
the private army in their factory.
The police maintained " the border line" till 19 August,
when a new incident occured. Someone of the members of the private GPS
security activated a fire extinguisher against the police and strikers. The
strikers break trough the police line and fight with the security. One of
the strikers was badly injured, hit by the fire extinguisher on the head.
Late in the evening, on 19 August, after breaking trough
the cordon, after private army and local police, the third army arrived -
the units of the national police from Belgrade under the command of General
Milivoje Mirkov. At first, General summons Mr. Zdravko Deuric and Mr.
Vladimir Pecikoza and President of the Board of Stikers, Mr. Stevan Budisin
for midnight " talks". Around two o'clock in the morning, on 20 August Mr.
Mirkov informs the strikers that Home Affairs reached the Decision on ban of
the public gathering, that in the future they are allowed to strike in the
factory canteen only, within working hours, from six to two o'clock, and
that he has a warrant to, peacefully or by force, throw out the strikers
from the factory ground. The Government, again, more openly, took the side
of one owner. Instead of maintaining peace, General Mirkov decides on the
strike, rules in the conflict between two owners, threatening one of them,
and protecting the other, shoulder to shoulder with his private army.
Although aware that the gathering of the strikers within
the factory walls does not qualify as public gathering, and that the
Decision of Home Affairs violates the Law on Strike heavily, the Board of
Strikers makes a decision to leave the factory walls, preventing more brutal
On 20 august 23 dismissals were handed out to the workers
gathered in the canteen.
The dismissals were given to all the members of the Board
of Strikers, as well as the leaders of the Union and Association of the
small shareholders. Three strikers, Mr. Zdravko Deuric, Mr.Stevan Budisin,
and Mr.Stevan Djurisic, were arrested for violation of law and order, and
detained in custody, in solitaries till 23 August (Mr. Djurisic till 26
August), to prevent their influence on the whiteness. They were given the
notice of dismissal because they were prosecuted.
Director of "Jugoremedija", Mr. Aleksandar Radovanovic was
also prosecuted by Home Affairs, criminal proceeding number 756/2004 from 31
May 2004, due to a reasonable doubt that he committed a criminal act of
abuse of authority.
Mr. Aleksandar Radovanovic was not sacked.
With the counterclaim, The Share Fund also asked for the
issuing of the temporary measures identical to the temporary measure issued
by the Court of Commerce in Zrenjanin. The Court of Commerce in Belgrade,
nevertheless, did not rule in favor.
"Jaka 80" clears "Jugoeremedija's" warehouses without any
control by the other owner.
On 20 August, three arrested men started a hunger strike
in the solitary. On 25 August, fifteen workers-shareholders joined the
hunger strike, demanding the return of all 26 dismissed workers. While
"Jugoeremedija's" workers-shareholders were on hunger strike in the Union
premises in Zrenjanin, no one, not even local politicians, doctors, priests,
or human rights fighters came to visit them. Besides the inconspicuous
individuals, like a local official from Mr. Karic's party, who was
persuading them to forget the ownership dispute, whereas Mr. Karic would
persuade his friend Mr. Stefanovic to return the workers to work. On the
other hand, the media broadcasted Mr. Radanovic's statement that the other
owner of "Jugoremedija", as far as he is concerned, does not exist, and that
the workers-shareholders may turn to the Local Community, like any other
civilian in need, but they no longer represent the problem of "Jugoremedija".
A cynical point of view that the co-owner matters are solved by sacking the
co-owner, is only the continuation of the state's point of view that it
makes no difference whether the increase of capital was performed pursuant
to the law and contract, but that it is essential to start the minimum of
the production process.
The Labor Inspection in Zrenjanin, did not have the time
to write the decisions returning 26 dismissed strikers to work, when
"Jugoeremedija's" management sacked another 77 workers-shareholders. Hunger
strike was ended on 6 September, after two weeks, because, according to the
strikers' statement, "during those two weeks not only that the state
disregarded this scandal, but we heard statements from the two Ministers of
the Republican Government, Mr. Bubalo and Mr. Lalovic, trying to minimize
and hush the criminal operations following the privatization and fake
increase of capital of 'Jugoremedija".
Less and less number of strikers, still employed,
continues to strike in the canteen, controlled by Mr. Jovica Stefanovic's
private army. Armed guardians even followed the strikers to the bathroom,
prohibited any contact with their colleagues at work. The dismissed
strikers, 103 of them for now, continue to gather in the hall of the
Municipal Assembly in Zrenjanin, holding meetings, and asking for the
honoring of the Decisions of the Labor Inspection regarding their return to
work, also, that the State should stop bankruptcy of "Jugoremedija" till the
settlement of the legal suit, and that the President of the Government of
Serbia, Mr. Vojislav Kostunica should visit and talk to the strikers
regarding these issues.
Since the beginning of September, Mr. Radovanovic,
contracted 86 workers in "Remevita", daughter- company, which until then
employed only 4 persons, who were then directed to work in "Jugoremedija,
violating the agreed minimum of work process, and Law on strike.
On 17 September, the Anti-Corruption Council forwarded the
"Jugoremedija" Report to the President of the Government of Serbia, Mr.
Vojislav Kostunica and Coordinator of the Ministry of Economy, Mr. Predrag
Bubalo suggesting enlisting on the time table of the next session of the
We feel that the struggle of the "Jugoremedija's "
shareholders to honor the law and privatization contract, up to now
disclosed three major problems in Serbian society.
In the first place, the protection of small shareholders
in Serbia is non existing, the state does not protect the institution of the
private property, but only the property of certain owners.
Secondly, Serbian authorities do not support the
anti-corruption initiative, instead they take side of the corrupted ones,
busting and prosecuting the ones who protect right to their own private
property, right to work and live as humans.
In the third place, solidarity and endurance of the people
protecting their rights, that noble characteristic, rarely found these days
in Serbia, after all those years of poverty and fear, are not the value that
our public recognizes as a foundation of democracy and development.
Anti-Corruption Council of Serbia
"If it does not matter how the shares of "Jugoremedija"
were sold, but how to start the production, according to Minister Bubalo,
then advise Minister to return us to work, for we are the production!"
Mr. Zdravko Deuric,
to the Republic MP Mr. Sredoje Mihajlov,
who addressed the strikers in the Municipal Assembly of
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