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October 12, 2001
. Vreme News Digest Agency No 512
Coal Miners' Strike in Serbia

Resurrected Equalization

by Nebojsa Petrovic

Serbian coal miners justified their announcements to the Serbian Government and to all citizens that they should await a 'hot syndical autumn'.

The publicity has not yet recovered from the 'successfully' ended negotiations between the Serbian Government on one side and the Post Office (PTT) and the Serbian Telecom on another, and yet another strike was initiated by the 'Kolubara' open-cut coal miners. The new strikers were joined by coal miners throughout Serbia.

Energy Minister Goran Novakovic said he was surprised by the miners' decision, since: 'We agreed last night to augment the gross salaries by some 26 million dinars and to reward the best workers who have stood out during the reconstruction period, and they (the miners) asked for the increase of salaries by 45-50%, which is unreal.'

NEGOTIATIONS: Judging by the statement of Strike Committee chairman Zdravko Vucetic, 'they' are asking something completely different: 'the abolition of the infamous Decree of the Serbian Government on salaries and other incomes, which refer to the freezing of salaries in public and private companies and the application of agreements set in May and September. Besides, to increase the salaries since September till December by 40% per month and eventually pay back the arrears of 264.7 million dinars to 'Kolubara'! It is not true that the average monthly salaries in 'Kolubara' are over 16,000 dinars, as Minister Djelic said, but 10,500 dinars.' The miners announced the general strike in the duration of 100 days if necessary, until all their demands are fulfilled.

Serbian Prime Minister Djindjic unbendingly claims that the coal miners' strike was politically motivated and that the Government will ensure the functioning of the electrical energy system, in spite of some attempts on some individuals to threaten the citizens with the scarcity of electrical power'. Minister of Finances Bozidar Djelic says: 'If there were some offending words on my part, I apologise, but nothing can stop this Government, and especially not me, to tell the truth. It is true that the salaries of the employed in 'Kolubara' are 70% higher than the average set by the republic. Their net value is 11,968 dinars. 'Kolubara' coal miners are the only ones who receive their salaries on the regular basis. It is true that, if the strikes continue, it will jeopardise the contract on the 200 million dollar credit approved by the European Bank for Reconstruction and Development, intended to 'Kolubara' and EPS (the Electro-Industry of Serbia).'

It was published on Monday that an agreement between the syndicate members of the open-cut coal mine 'Kostolac' and the Government was reached, and that Minister Novakovic would also come to 'Kolubara' to talk to the employees. However, he was welcomed by angry mob and lots of swear words. After five to six hours, the frowned and grim miners and the minister stated that 'they were very close, but didn't reach a mutual agreement'. They also mentioned Mr. Djelic, who, in a telephone conversation with Novakovic, managed to unearth 100 million dinars that he hasn't had before, but the miners were persistent in asking for 114 million. And that's why the negotiations keep going.

All public firms are naturally monopolists, since the state is giving them a right to manage and supervise certain natural or general society's assets. So, in the area of public services there is no market or its laws on bids and demands. That creates a certain kind of problem. The state, as the citizens' representative on the one hand, and the exclusive donor of monopoly rights to the 'public sector', on the other, owns that kind of firms. It stems from this that the state ensures the management of those firms, the organisation of their work and politics. Of course, it does it through its authorised representatives in the managing boards and by naming general managers in those firms.

The hitherto strikes demonstrated that there is a fundamental difference in running the business between, for example, 'Kolubara' and the Serbian Telecom, and also between 'public services', such as the health sector and the education sector. The main difference is that the first two are producing their own incomes, though they are not earning them, and so they provide the funds necessary for distributing salaries to the employed, while the health and education sectors are nothing else but the outflow of the budget, since the salaries to the employed in these two social sectors are coming straight from the republic budget. So, in case of public companies, the state, i.e. the Government can therefore reduce the price control, the management and business politics without a regular obligation to provide salaries directly from the budget. At the same time, one should not overlook that all states tend to affirm their owner status by selling either one share or the entire company to other states, most frequently due to some momentarily budget deficit. I suppose that was the reason why the former Government sold 49% of the Serbian Telecom to Italian and Greek partners.

The fact that public companies can make their own incomes, brings their employees, or rather their syndicates, in a different position. They are brandishing with the financial independence when they are discussing their economic position. Thus, there is no difference between miners, postmen, JAT (the Yugoslav Airlines) employees, etc. What makes our situation specific is that the workers in strike are always demanding to negotiate with Prime Minister Djindjic or, in some cases, with Finance Minister Djelic.

What is happening to leaderships and managing boards of public companies? General managers most often 'take over' the role of the Government's informers on the matters within the company, on the employees' demands and their (dis) contentment. At times, but rarely, the general manager would join the strikers (as it happened in 'Kolubara'), which arises a logical question: who names general managers of public companies? The Government or a committee of employees? If someone is interested in it, it is the Government of Serbia, with an aim to organise the work and realise the business policy of the company in question.

The situation with managing boards (UO) is even less usual. Dragor Hiber, president of the UO of the Serbian Telecom, tried to soothe last summer's annoyance over the growth of telephone service prices. And nothing after that.

The citizens may well ask themselves why the Government, i.e. the state, does not use its authorised organs and leaderships in public firms for the purposes prescribed by the law. It is uncommon that a Prime Minister of a state takes over the role of the whole economy's general manager.

SELF-MANAGING LOGIC: This year, the abovementioned phenomenon was quite visible in the functioning of syndicates. Maybe even too often. No one has anything against organisation in favour of defending the rights of the employees. The employed in this country have a vast experience with poverty, deprivation and existential insecurity. However, such sentences can hardly procure a better economic position to anyone: 'If, by October 8th, Prime Minister Zoran Djindjic and Minister Djelic do not come to negotiate, the employed in the RTB (Bor Copper Mine and Production) will announce a strike. The Government of Serbia showed the lack of interest for our problems, so we are expecting it, along with our leadership and syndicate members, to conceive a new strategy towards the recovery of our collective at the imminent meeting on October 8th' (part of the notification of RTB Bor' syndicate). This journalist witnessed Zoran Djindjic's appearance in Lazarevac last winter, when he was explaining that the Decree of the Serbian Government on salaries was about to freeze the total amount of money intended for salaries in public companies, and that by the internal restructuring, which is the responsibility of the company's leadership, a distinction in the salaries between miners and administrative workers can and should be reached. None of the syndical leaders, which asked to be exempt from the Decree, has mentioned that tiny particular ever since. In his statement at the beginning of this month, Minister Novakovic reminded the public of this essential part of the Decree, saying that the total amount intended for salaries in 'Kolubara' was about to be increased by additional 26 million dinars per month.

There is a question - why is it easier for coal miners to valorise their undoubtedly important, heavy and risky profession in a direct negotiation with Djindjic, than to try to prove the same thing to hundreds of thousands of unemployed administrative workers in their collective?

At the end, if they were to consider themselves to be the employees in the Government of Serbia, which is the only reasonable conclusion at the moment, the employed in public companies would have to bear a few facts in mind. According to the Decree on the Minimal Process of Work in public companies, such as EPS, in the case of a strike, the minimal process of work would have to provide at least 90% of the necessary electrical power. Yet, in 'Kolubara', everything is standing still for several days.

At this very moment, it is certain that the dispute between the miners and the Government - justified or unjustified, socially or politically motivated - will only bring darkness to the citizens of Serbia. Vice-President of the FRY Government, Miroljub Labus commented: 'The miners can strike, they can even overthrow the Government, switch off the electricity, cause a chaotic situation in the country, but there comes a question whether that will be of any benefit for them, or not. It won't.' It is also clear that Minister Goran Novakovic saw 'how it looks like when 'Kolubara' is on strike. 'Well, Goran, you saw it', said Strike Committee chairman Zdravko Vucetic in front of about one thousand strikers.

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