ZAGREB, April 21, 2019 - After the Archbishop of Zagreb in his Easter homily called on the authorities to tackle the problem of shipyard workers who have not received their wages for months, Prime Minister Andrej Plenković told reporters that "additional efforts are being made in very demanding circumstances" to address this issue.

Speaking to the press after attending Easter Sunday Mass in the Zagreb cathedral, Plenković said that Archbishop Josip Bozanić's sermon was encouraging to public office holders.

Asked if he took the cardinal's message as a criticism, the prime minister said he thought the contrary. He said that last year the government had secured money for the Pula and Rijeka shipyard workers' wages and was now making "additional efforts in very demanding circumstances." He recalled that a delegation of a Chinese shipbuilding corporation was expected to visit the two docks soon.

Asked how he took Bozanić's sermon, Parliament Speaker Gordan Jandroković said that it was a complex sermon the gist of which was that "we should do good to each other and take care of those in need."

"The message concerning the shipyard means that obviously there is awareness that the situation is difficult and that account should be taken of the workers and those who have found themselves in a difficult situation through no fault of their own. We have certainly understood that message well and we will deal with that," Jandroković said.

More news about shipyards can be found in the Business section.

ZAGREB, April 19, 2019 - Unionists in the Uljanik shipyard said in Pula on Friday the situation was alarming and disastrous, and that the government was responsible due to its inaction.

"Recently... there has been less and less talk about Uljanik, where the situation is harder by the day. The situation has been alarming for a long time, but what has been happening to us over the past month is disastrous. Someone should be held accountable for this situation," unionist Boric Cerovac told the press, adding that "politicians are responsible, whether at local or national level, everyone should be called out."

He once again invited Prime Minister Andrej Plenković and his ministers to come to Uljanik and to the 3. Maj shipyard in Rijeka, and tell workers what they actually wanted regarding Uljanik and shipbuilding because "only they can resolve this."

"The government is toying with workers' fate, saying they are looking for rescue but doing nothing. They mention the Chinese, Norwegians, Africans, Americans, but there's no solution. With each new day, workers are in bigger problems because the wages aren't coming," Cerovac said.

They have been working without pay for eight months now and the delays of bankruptcy proceedings are only delaying the end of this agony, he added.

Cerovac said his Adriatic Union had been warning about the problems and the government's idleness, and that it demanded the payment of wages or interim financing.

"That hasn't happened and I don't know what else we unions can do after months of efforts, talks and the economy minister's promises that the wages will be paid... We can no longer believe the government and the minister? Evidently not."

Cerovac said the 150 workers of the Uljanik Group's security, accounting, legal and personnel departments today decided to leave the group, and that without them it could not function.

As for a bankruptcy hearing for the Uljanik dock at the Commercial Court in Pazin, he said: "These are spins to buy time, to do the European elections... There's no intention for something positive to happen. The majority was for bankruptcy if no other solution was found. The decision on bankruptcy is made by a judge. Everyone can say they want bankruptcy, but if the information comes from politicians, it won't happen."

Another unionist, Đino Šverko, said the "key of the rescue" is in Plenković's hands and that Uljanik needed interim financing for workers to survive. The government can agree with potential partners after that, he added.

Supervisory Board member Samir Hadžić said only the government was responsible for the current state of affairs and that its inaction was costing taxpayers one million kuna a day.

Economy Minister Darko Horvat said on Thursday that executives of the China Shipbuilding Industry Corporation would visit Uljanik Group on 30 April and 1 May to explore possibilities for cooperation and that after that they would hold meetings with the Croatia side, however, Horvat declined to speculate the outcome of the Chinese visit to Pula and Rijeka.

More Uljanik news can be found in the Business section.

ZAGREB, April 18, 2019 - Executives from a Chinese shipbuilding company will visit two Croatian shipyards later this month or early next month to explore possibilities for cooperation, Prime Minister Andrej Plenković announced in an interview with the HRT public broadcaster on Wednesday evening.

The announcement came after a high-level Chinese delegation, led by Premier Li Keqiang, visited Croatia last week as part of the summit of 17 Central and Eastern European countries and China in Dubrovnik.

The CEO of the China Shipbuilding Corporation, the man whom Premier Li contacted during his visit last week, will visit Croatia together with a high-level delegation between April 25 and May 10, Plenković said. "They will visit Pula and Rijeka to see what can be done about their possible engagement or cooperation," he added.

The prime minister said that Croatia had done all it could to get the Chinese interested. "We also discussed this in Beijing last November, and I am not surprised by their decision to visit Croatia so soon," he said, noting that China is the world's biggest buyer and builder of ships.

The news came after the Commercial Court in the northern coastal city of Rijeka earlier on Wednesday once again delayed a hearing at which it was to decide on the opening of bankruptcy proceedings for the 3. Maj shipyard, rescheduling the hearing for June 5.

Citing data from Eurostat and the Croatian statistical office, Plenković said that despite the payment of 2.5 billion kuna last year for guarantees for the Uljanik and 3. Maj shipyards, the government budget again ran a surplus of about 756 million kuna. "Our fiscal consolidation is producing results. We are in company with Germany and France," the prime minister said.

He announced that a document promoting three key goals - a better business environment, connecting the education system with the labour market and strengthening the consolidation of public finance - and covering 10 reform areas, 30 measures and 100 activities would be unveiled at a cabinet meeting on Thursday. He added that a convergence programme would also be presented.

"We will continue to reduce the share of public debt in GDP from the present 74.6 percent to 62 percent in 2022, which is one of our goals from the euro adoption strategy. Growth is projected at 2.2 percent, which is sound growth based on the sound conduct of public finance and monetary policy," Plenković said.

Plenković said that at its session on Thursday the government would formally offer France the expertise of Croatian restorers and conservators for the restoration of the fire-damaged Notre Dame Cathedral, "the symbol of France, Christianity and Europe." Croatian experts have already collaborated with their French colleagues in restoring Croatian monuments and historical heritage, the prime minister said.

More news about Croatian shipbuilding industry can be found in the Business section.

ZAGREB, April 17, 2019 - Rijeka Commercial Court on Wednesday once again adjourned a hearing that should have determined whether conditions have been fulfilled to launch bankruptcy proceedings at the 3. Maj shipyard, and the next hearing is scheduled for 5 June.

The latest adjournment was requested to make it possible for the new management to find funds for interim financing as in the recent days much has been done regarding efforts to conclude new contracts and find new business opportunities.

The postponement was okayed today by unionists, the dock's director, Edi Kučan, temporary bankruptcy trustee Zdravko Ćupković and a representative of the Strojopromet company, which is one of the creditors that together with the Fina financial agency has proposed the launching of bankruptcy proceedings.

The total debt of this shipyard, based in Rijeka, was 134.6 million kuna on 16 April.

The company's account has been blocked for more than 220 days.

Participant's in today's hearing told the court that 3. Maj, which became a part of the Uljanik Group a few years ago, would not be in financial distress if Uljanik had paid it back the 520 million kuna it borrowed from the Rijeka dock.

The first bankruptcy hearing was originally scheduled for February 6 but was shifted to February 26, then to March 12 and again for March 28 with the explanation that one should wait for a possible agreement on the payment of wages and the continuation of production.

More news about the shipbuilding industry can be found in the Business section.

ZAGREB, April 13, 2019 - Croatian Prime Minister Andrej Plenković said on Friday he had asked his Chinese counterpart Li Keqiang to see if a major Chinese shipbuilding company would be interested in becoming a partner to the ailing Croatian shipyards Uljanik and 3rd May and helping in their restructure.

"I have asked the Chinese premier, who in turn has asked his ministers, to invite a key Chinese shipbuilding company to visit Croatia, Uljanik and 3rd May and see if they would be interested in becoming a partner that would help in their restructure," Plenković told the RTL commercial television network.

The prime minister did not specify when that could happen, saying only that it would happen "very soon".

He recalled that the government had already paid 420 million euro worth of state guarantees, "which unfortunately went to banks for previously granted loans." "In the past year or so we have done all we could under the law," he added.

Plenković said he had taken advantage of Premier Li's visit to Croatia to explain to him the context of the domestic shipbuilding industry and the importance of the two shipyards which have been operating for over 160 years. "What they need is a serious consolidator who knows how to run these processes in accordance with the market requirements of 21st century shipbuilding."

Plenković also commented on the statement made by Serbian Prime Minister Ana Brnabić in Dubrovnik on Friday, when she said she was ready to make the first move and invite him to visit Serbia because "political frictions don't do anyone any good in the region."

"Next year Croatia takes over the EU presidency and in the process of preparations for that I will visit all our neighbours, certainly Belgrade, Sarajevo, Skopje, Pristina and Tirana. We want to be well prepared for a summit that will take place in May 2020," he said.

Plenković expressed his satisfaction with the Dubrovnik summit of Central and Eastern European countries and China, which ended on Friday. He said that the Chinese premier's visit was very successful and that it was very important for mutual relations and for the positioning of Croatia in Central Europe.

More news about the Uljanik shipyard can be found in the Business section.

ZAGREB, April 4, 2019 - Unionists at the Uljanik dock on Thursday warned of the unbearable situation facing workers at that Pula-based shipyard who have been striking for 15 days yet there is no positive information from the management or the government, which has led them to send a fourth letter to Prime Minister Andrej Plenković and urge him to finally resolve the situation in the Uljanik Group.

The head of the strike committee, Boris Cerovac, confirmed for Hina that he had sent yet another letter to the prime minister.

"There are fewer and fewer workers at the dock and they are leaving Pula en masse, about twenty leaving the dock each day. I believe that the number would be even higher if Uljanik's personnel department did not work just two days a week. In any case, the situation is unbearable. There are a lot of contentious issues and questions. It is obvious that everyone has given up on us," Cerovac said.

Another shop steward, Đino Šverko, said it was unbelievable and sad that the government had made absolutely no mention of Uljanik at its meeting earlier in the day or discuss the agony of the dock's workers, underscoring that it was obvious that no-one was taking any notice of the workers anymore.

"We are tired of all this and of all the promises. They should tell us once and for all whether Uljanik will file for bankruptcy or be restructured. This time-buying isn't to anyone's benefit," Šverko told Hina, adding that it was no wonder that scores of Uljanik workers had recently sought psychiatric help, as could be seen on social networks.

He added that his union had approached the International Labour Organisation in Turin "because the case is in violation of all international conventions on workers' rights."

More news about Uljanik can be found in the Business section.

ZAGREB, April 4, 2019 - The Commercial Court in Split on Wednesday opened a pre-bankruptcy procedure over the Brodotrogir shipyard and appointed Zdravko Tešić a trustee in bankruptcy.

The court called on creditors to submit their claims to the relevant Financial Agency (FINA) within 21 days while a hearing at which claims will be examined is scheduled for 10 July.

Brodotrogir proposed the opening of the pre-bankruptcy procedure on March 8, but the Court requested additional documents as the restructuring plan was not included.

The Trogir-based dock has been owned by Danko Končar for the past five years. The shipyard was restructured, but it was having a hard time landing contracts that would bring in income and secure workers' wages. Wages were late, incentives were being reduced, suppliers were not being paid, sub-contractors either, and there was growing concern that workers will become redundant and laid off with severance pay.

At the end of February, total claims towards Brodotrogir amounted to 187.4 million kuna.

Economy Minister Darko Horvat said on Thursday he was concerned about Brodotrogir d.d. after pre-bankruptcy proceedings had been launched for that Trogir-based company on Wednesday.

The minister said he was worried about every company in pre-bankruptcy procedure, including Brodotrogir d.d. The pre-bankruptcy procedure was approved by the Split Commercial Court on Wednesday after the application for pre-bankruptcy was amended with a proposed restructuring plan for the company.

More news about Croatian shipbuilding industry can be found in the Business section.

ZAGREB, April 3, 2019 - Economy Minister Darko Horvat on Wednesday said that it was possible for ships to be built in the Pula and Rijeka docks for the Jadrolinija liner shipping company, however, that requires numerous details and requires a public call for bids.

Asked by the press who would pay for those ships to be built, Horvat said "whoever needs them."

With regard to the deadlines for the ships to be built, the minister added "that will be seen with the people in Jadrolinija," who, he said will "have to renew the fleet in any case."

In response to comments by reporters that all that would require a public call for bids, Horvat said "then there will be a public call for bids." Reporters also commented on statements by Finance Minister Zdravko Marić who warned that "the devil is in the details," and that in this case there were many of them, Horvat said that the finance minister is absolutely right.

Speaking about the options facing the Uljanik shipbuilding group earlier in the week, Minister Horvat stated that Jadrolinija should renew its fleet and that it needed 17 or 18 new ships.

"I'm certain that Jadrolinija will have to reconstruct or build its fleet. The fact that a public call for bids will be opened means that the ships will have to be contracted pursuant to the tender conditions. Otherwise, Jadrolinija would have to be excluded from the process of public procurement and we have to get approval from the European Commission for that," Horvat told N1 Television earlier in the week.

More news about Jadrolinija can be found in the Business section.

ZAGREB, April 2, 2019 - The Uljanik shipbuilding group said on Monday that a client from Kuwait had cancelled a contract for the construction of a vessel for livestock transport but that it was willing to negotiate new contract terms and have Uljanik continue work on the vessel.

Livestock Transport & Trading Co. terminated the existing contract because the vessel could not be delivered in line with the terms defined by the current contract, said the shipyard, which has been in financial trouble for months.

It added that the client was willing to renegotiate the contract and that talks on that were under way.

Several other clients in 2018 and earlier this year terminated their contracts with Uljanik for the construction of ships.

The head of the shipyard's strike committee, Boris Cerovac, said in Pula on Monday workers were continuing with the strike, even though the Metalworkers' Union (SMH) decided to end it, while the Adriatic Union and the Istria, Kvarner and Dalmatia Union believe workers cannot return to work as they have not received seven monthly wages.

SMH shop steward Đino Šverko said the SMH formally no longer had a representative on the strike committee and that the Uljanik workers who were SMH members were also on strike and fully supported all committee decisions.

"Who's so naive to end the strike? We haven't been paid for seven months, the workers are hungry, nearly every international labour organisation convention is being breached. I ask once again that a decision on Uljanik be made as soon as possible," said Sverko.

More Uljanik news can be found in the Business section.

ZAGREB, April 1, 2019 - The head of the Uljanik shipyard's strike committee, Boris Cerovac, said in Pula on Monday workers were continuing with the strike, even though the Metalworkers' Union (SMH) decided to end it, while the Adriatic Union and the Istria, Kvarner and Dalmatia Union believe workers cannot return to work as they have not received seven monthly wages.

"We are continuing with the strike until our demands are met, which is the payment of wages for seven months," said Cerovac, who heads the Adriatic Union.

SMH shop steward Đino Šverko told Hina the SMH formally no longer had a representative on the strike committee and that the Uljanik workers who were SMH members were also on strike and fully supported all committee decisions.

"Who's so naive to end the strike? We haven't been paid for seven months, the workers are hungry, nearly every international labour organisation convention is being breached at Uljanik. I ask once again that a decision on Uljanik be made as soon as possible," said Šverko.

As for threats by the defence team of an Australian shipowner that they would sue Uljanik's management and the strike committee if they did not allow subcontractors to work on a polar cruise ship, Cerovac said the committee allowed all subcontractors to work since last Friday.

More news on the shipyard can be found in the Business section.