"Telekom" to be restructured – Severance pay of EUR 650 per year of employment wishful thinking?

The Serbian government has decided to abandon the sale of Telekom. The decision on the level of compensation for voluntary redundancy will be decided by the state, the big question is whether it will accept a level of EUR 650 per year of service, writes Dnevnik.

The present Telekom staff, who opposed the sale, are satisfied with the government's decision not to sell the company but keep it in state ownership, but do not agree with the number of excess staff.

The unions estimate that the number is around 1,500 and not the 4,000 estimated by the privatisation advisor, and that they could be covered by a good social programme for voluntary severance.

Union president Miroslav Joksimović explained that the union's proposal was EUR 650 per year of service and that, had the company been bought by a foreign partner, they would have demanded EUR 1,000, so as to minimise state expenses. The problem of redundancy would be solved over three years through a voluntary paid severance programme.

From the side of the state the story is different, especially with a EUR 200 severance payment planned for public sector redundancies in the coming years, with funds already set aside on that basis. Coming years' budgets do not even take account of redundancies in public companies, with money dedicated exclusively to solve the problems of the state administration and companies in restructuring that have not found a buyer.

The budget therefore does not even have the EUR 200 per year for Telekom staff, let alone 650. But the fact that there is not enough money for redundancies does not mean that the state will not find it later.

Immediately after the decision not to sell, reconstruction was announced, but with no deadline for solving the problem of excess staff. Not even their number is known.

Translation provided by: www.halifax-translation.com