A total of 830 workers to remain in Galenika – EUR 400 per year of service for termination of employment contract by mutual consent

The sole requirement that the new owner of Galenika, the Luxembourg-based company Aelius (owned by Brazil's EMS Group), was supposed to meet by now – pay EUR 25 million and increase the capital of the plant in Zemun – was met on December 1 with the payment of RSD 2.96 billion, according to the Business Registers Agency, Novosti reports.

The state obliged the purchaser not to enforce the reduction of the number of employees from 1,300 to under 900 over a two-year period. Still, come early April around 830 will remain in Galenika. However, they are all to leave by consent – with a social program, Novosti reports.

The invitation for the voluntary leaving lasted through March 15.

The new owner has also decided to discontinue the side activities, such as cleaning, security and restaurants.

– The employer has offered them a compensation for the termination of employment contracts by mutual consent and they will continue working for another employer – says Zoran Pantelic, head of the Independence trade union.

– They are to be paid identical amounts, EUR 400 per year of service. In mid-2018, we will also start negotiating about a new collective contract, as the current one is valid until December. We will try to keep our current rights.

Pantelic adds that the owners invests in the production and that new products are being registered.

Let us remind that Galenika's new owner obliged by the sales and purchase agreement to invest EUR 5.52 million in the pharmaceutical plant.

What hasn't been fulfilled, Novosti reports, is the state's obligation. To clarify, in October, the Government of Serbia adopted a decision obliging to pay pension and health insurance contributions to all employees at Galenika, pertaining to a period of around eight months in 2013. The state has yet to do so, which is a big problem – those who can exercise the right cannot retire, whereas those on a parental leave or a longer sick leave cannot get compensations for leaves in that period, Novosti writes.

Galenika a.d. Beograd

Vlada Republike Srbije

EMS S.A. Brazil

Galenika

Government of Serbia

Aelius

EMS Group

sale of Galenika

privatization of Galenika

Independence trade union Galenika

Galenika social program

Galenika termination of employment contracts by mutual consent

Galenika voluntary leaving