Bulgaria Trade Unions Seek Way Out of Steel Mill Deadlock

Trade unionists have repeated their calls on the government to adopt a recovery plan for Bulgaria's indebted steel behemoth Kremikovtzi to prevent its imminent shutdown.

Key Bulgarian ministers made it clear last week that bankrupt steel-making giant Kremikovtzi would most likely be liquidated, since 80% of Kremikovtzi’s creditors have disapproved the action plan to save the steel-maker, presented by the administrator.

”Shutting down the ailing state-run plant before winding up its businesses and offloading its assets will make more difficult the outstanding payments to the laid-off workers and their social securities,” Zhelyazko Hristov, leader of KNSB trade union, said at a round table on Wednesday.

The forum is also attended by Economy and Energy Minister Traycho Traykov.

In their Monday protest 200 workers from the plant gathered in front of the Economy and Energy ministry, calling on the state-owned gas provider Bulgargaz and the state power utility NEK, two of the major creditors in the plant, to become majority owners.

They also demanded that the state approve the recovery plan and bring to justice those, who have allegedly siphoned the company.

According to the workers, led by the trade unionists from Podkrepa, the adoption of the recovery plan is the only chance for the mill to survive and keep 3000 jobs.

The rally comes days after it emerged that the majority of creditors of the troubled steel-maker have rejected the rescue plan for the struggling company.

The sprawling communist-era behemoth near Sofia was declared insolvent in August last year and has suffered huge loss of production.

Workers have yet to receive BGN 56 M in unpaid salaries. Some 3 000 employees have been dismissed or have left the company, with some 3 170 staff still on the books.