site.btaBulgartabac Promises 15,000 Lv on Average to Discharged Workers

Bulgartabac Promises  15,000 Lv on Average to Discharged Workers

Sofia, March 24 (BTA) - Bulgartabac Holding AD strictly observes its obligations under the privatization contract, the labour legislation and the collective bargaining agreement with the trade unions, reads a position released by the company on Thursday.  As a responsible company, Bulgartabac will observe all of the law's requirements in the termination of employment contracts with the workers of Sofia-Bulgartabac AD (Sofia-BT), the holding said.

The compensations to be paid exceed several-fold those payable in such cases in Bulgaria: the average amount to be paid to a discharged worker is 15,000 leva, and some sums will far exceed this amount, Bulgartabac said.

"We realize the consequences from the termination of the employment relations, and the goal of the compensations is to support our workers until they can find new job opportunities. We also state that the companies from the Bulgartabac group will continue their production and commercial activity, and the holding will continue seeking new opportunities and markets for its products," the position reads.

Recently the holding company announced plans to cut jobs and reduce by 80 per cent its scheme for purchasing Bulgarian varieties of tobacco in the future.

On Wednesday, the trade union organizations of tobacco workers with the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Labour Confederation said they do not accept the decision for the halting of the production of tobacco products at Sofia-BT and the export of Bulgartabac Holding products.

Economy Minister Bozhidar Loukarski Thursday expressed hope that the recent developments will not reach the point of closing tobacco production facilities. He was speaking to journalists in Parliament in the wake of recent tobacco worker protests to defend Bulgartabac AD.

Loukarski noted that the protests do not concern revisions to legislation. Parliament is currently voting amendments to the Tobacco and Tobacco Products Act which have nothing to do with the demands of the tobacco workers. They only introduce the provisions of EU directives. So far, what Bulgaria and the EU have done is related to providing aid for tobacco producers, including alternative replacement of their livelihood.

According to the unionists no objective economic analyses and evidence in support of the need of laying off over 400 workers of Sofia-BT and 8 per cent of the staff of the Holding were presented at the talks.

Asked what the losses for the Bulgarian economy from suspending exports to the Middle East will be, Loukarski answered that such calculations have not been made and the question should be put to the company.

On Thursday "Capital Daily" reported that Bulgartabac workers who have been made redundant have asked to meet with the Prime Minister and "the real owner" of the company following massive layoffs and announced plans for closing the Sofia factory of the cigarette holding company, and slashing tobacco purchases. "The wish is understandable considering that the workers lost contact with the majority owner two years ago because he is concealed behind a chain of offshore companies. All suspicions lead to [MP of the Movement for Rights and Freedoms] Delyan Peevski," the paper said. It also said that the Privatization Agency can impose a fine of 100 million euro for the closure of the Sofia tobacco factory but no sooner than in May 2017.