"Zastava" – the Hardest Test for the Government

Government Programme for the Consolidation of the Kragujevac Car Factory Enraged Workers

“Workers do not have confidence in the proposed programme because they do not believe those in the management, as many of them have very successful private firms”, told us Vladimir Ognjanovic, one of the protesters. Finance Minister Bozidar Djelic pointed out that this was “a programme of truth, and the truth is hard”, admitting that there would be redundant workers, but also emphasising that everybody would be taken care of.

AIM Beograd, July 27, 2001

The suddenly awakened public awareness of the “Zastava” workers who, in fear of losing their jobs, smashed cars and physically assaulted the Republican Ministers, provoked stormy reactions and numerous comments. Where did this aggressiveness come from when these same people once supported to their last breath and applauded to the former regime, obediently obeying the order to form a live shield around their factory during the NATO bombing, who after the attacks were over allowed to be bandaged and placed in hospital beds although unhurt and in good health?

The Republican Ministers came to Kragujevac in order to present the programme proposed by the Government and expert team for the resolution of the problems of “Zastava” and its 30 thousand workers. The republican delegation came to talk with a view to finding the best possible solutions satisfactory to all involved sides. Irrespective of the political motives and the workers' long-standing general dissatisfaction, the information that the Government programme envisaged the laying-off of some 15,400 surplus workers was the trigger which provoked the attack (even physical) on Ministers. When the dust settled it became obvious that the town officials, factory management and leadership of the Free Trade Unions(which had organised these protests) were partly to blame as they could have foreseen that things could get out of control at any moment.

Assessing the Kragujevac events, psychologist Milijada Zivic-Ilic pointed out that “a characteristic of the demonstrated aggressive behaviour was the uncontrolled outburst of rage” as a consequence of long pushed-back dissatisfaction, unresolved life problems and the increasingly harder living conditions. “People in such a state are very easily manipulated and their aggressiveness is transferred onto people and objects, which are not necessarily a direct cause of their frustration. In the previous period the workers could not express their dissatisfaction and protests, which under conditions of released fear poured out in an eruption of rage and uncontrolled aggression”, said Milijada Zivic-Ilic.

However, the aggressive behaviour of some people (some of whom never even worked in the factory) towards members of the republican delegation did not cause representatives of the Republican Government to waiver and suspend the negotiations or abandon the proposed programme. Just before the incident, the Republican Finance Minister, Bozidar Djelic stated that “the Government would never agree to a policy of rotten compromises and extinguishing fires” adding that “Zastava” was perhaps the hardest test, but if someone thought that “giving workers several hundred German marks to appease them is a welfare programme, then they would have to find someone else to do it”. He warned that if “Kragujevac kept the reputation of a restless town where agreements are hard to make and in which people easily take to the streets, it will become a town that everyone will avoid”. He concluded that “no one will tell you that to your face openly as I am doing it now”.

The proposed version of the programme, which is still being adjusted, offered the workers DM 4 thousand worth severance pay in three instalments, a place on the employment waiting lists and retraining with salaries in the amount of 2,200 dinars or legal registration with the Labour Market Organisation and monthly compensation of 2,340 dinars over a two-year period. At the protest the workers specially criticised the Government's decision to allow import of used cars demanding, among other things, higher severance pay and monthly compensations for redundant employees, with a possibility of being allowed to personally verify the fairness of the criterion used in determining those to be laid off. In short, the workers demanded a better offer for the social care of redundant labour. The Association of Free and Independent Trade Unions (ASNS) of Kragujevac condemned the behaviour and protests of the Independent Trade Unions of “Zastava Cars”, which despite all personnel changes, remained one of the strongest mainstays of the former factory management, as a branch-office of the ruling regime.

However, one thing is certain – that behind the protest of the “Zastava” workers lies great dissatisfaction because of personnel changes made in the factory which were only cosmetic. The Christian-Democratic Party of Serbia (DHSS), which “took over” the factory just after October 5, was neither able nor capable of bringing the right and undiscredited experts to key positions in the factory. Deputy Chairman of the “Zastava” Management Board, Gvozden Jovanovic (DHSS member) said that transformation of property implies workers' protests which could occur on a much larger-scale. According to him, the latest events should not be over-estimated, as only some 2 thousand workers took part in them and they did not provoke any major crashes. Jovanovic emphasised that the workers should know that the greatest value of this programme was that it would avoid bankruptcy and instead of closing down the factory offered the re-launching of production. “The Republican Government gave “Zastava” the priority and Kragujevac will become the economic capital of Serbia”, assessed Jovanovic adding that the proposed programme was “of historic importance”.

One of the participants in the protest, Vladimir Ognjanovic, claimed that the workers' revolt only had social background and was without any political motives, emphasising that “the workers had to put up with all sorts of things for too long, and are worn out”. “The workers of “Zastava” expected much from the changes they voted for and cannot accept the fact that life is getting harder, while the same people who have caused great losses to the factory and destroyed the social capital, which had been created by generations, are still in the top positions”, said Ognjanovic. He claimed that “people do not trust the proposed programme, as they do not trust the factory management, because during the past decade many of them have established very successful private firms, while workers barely made ends meet”.

Recently, after three months, the Government, its expert team and the Council of Ministers have finalised the Programme of the Transformation of Status and Strategic Consolidation of the “Zastava” Group, in which representatives of the management and all trade unions of “Zastava” also took part. Assessing this programme, Djelic said that “this is a programme of truth and the truth is painful”, admitting that many workers would become redundant, but promised that they would be taken care of, that no one would be thrown out in the street and adding that “reforms are necessary”. He said that “in their protests the workers have only pointed to all the ordeals they have been through in these 12 years” and that reforms and facing the truth are the only way out, rather than demagogy. Djelic appealed to “all people of good will in “Zastava” to understand that this is a historic moment”, because the Kragujevac factory would become a symbol of success or failure of economic reforms.

The workers of “Zastava” were given 15 thousand copies of the factory's summarised rehabilitation programme in order to get the idea what they could expect. “We are not giving up on this programme” said Aleksandar Vlahovic, Minister of Privatisation in the Serbian Government after “first-hand meeting” with workers and protesters in Kragujevac.

Cvijeta Jovanovic, professor of sociology in the Kragujevac secondary school called the workers' protests “pure psychology of the mob”. “People protested without first hearing what the programme was all about. These are the workers who have been living for years in false reality, with non-existent work places and poor pays (plus several bottles of edible oil a month). And when they lost that feeling of false security, the rage erupted”, said Ms.Jovanovic not ruling out a possibility that there was “a cheap political background” behind all this.

She said that strikes would be organised in the future too. The roads of economic transformation are paved with various motives in which everyone sees his own interest: from those who are surviving thanks to smuggling to political parties.

Olivera S. Tomic (AIM)