Majority owner rejects FBiH entity proposal, Zenica Steelworks bankruptcy plan remains

Federal Minister of Energy, Mining and Industry Vedran Lakic said the government's proposals aimed at preserving production and jobs had been rejected, while union representatives warned that workers remain caught in the middle of the dispute.

Lakic said the FBiH government had sought to preserve integrated steel production and all existing jobs, with the withdrawal of bankruptcy proceedings as a key condition.

"Our proposal was not accepted. Our goal was to preserve the entire production process and all jobs. The key precondition was to abandon bankruptcy proceedings because we believe such a process would create uncertainty over employment and the continuation of industrial production," Lakic said.

According to the minister, the majority owner intends to proceed with bankruptcy while proposing that production facilities be leased to the FBiH government during the proceedings, excluding slag and finished steel products, which would remain under the owner's control.

"Entering bankruptcy proceedings places us in a highly uncertain situation, and it is not acceptable for the government to discuss the future of the steelworks under those conditions," he said.

Despite the deadlock, Lakic insisted negotiations had not collapsed.

"The door remains open for communication. The Federation government will use every mechanism at its disposal to continue fighting for Zenica Steelworks, its workers and the continuation of production," he added.

The minister also said severance pay remained one of the main unresolved issues, expressing hope that the majority owner would ultimately honour workers' legal entitlements.

Rasid Fetic, president of the Nova Zeljezara Zenica trade union, said he left the meeting with little confidence that a solution was close.

"We had a meeting today where one side clearly wants one thing while the other stubbornly refuses. I fear that, once again, workers will end up paying the price," Fetic said.

Although both sides agreed to keep communication channels open, he admitted he was pessimistic.

"They said we should leave the door slightly open, so we will see what happens. But after today's meeting, I personally am not optimistic," he said.

Fetic said workers had been informed that salaries would be paid on Monday, but voiced concern over the majority owner's position that employees would not be entitled to severance pay if bankruptcy proceedings begin.

"That is the owner's position, not ours. We will ultimately prove whether that is correct, but I would not gamble with such statements. Workers are already confused, and telling them they have no rights only makes matters worse," he said.

He also criticised representatives of the majority owner for declining to address the media after the meeting despite an earlier agreement to do so.