Deadline for payment of salaries in "Ikarbus" expires on September 2nd

- Contract on privatization of Belgrade-based "Ikarbus" will be canceled if the majority owner, Russian "Avtodetal servis", does not fulfill the obligations from the sales contract until tomorrow (September 2nd, 2009) - people from the Privatization Agency told Beta.

According to the people from the Privatization Agency, following the expiration of the deadline, an inspection will be carried out in "Ikarbus" with the aim of determining whether the owner of the Belgrade bus manufacturer has met the conditions during the extended period. The conditions mainly concern labor-legal regulations, primarily payment of salaries and allowances to employees, as well as establishment of continuity of activities.

Russian company "Avtodetal servis" bought 39.2% of capital of "Ikarbus" for 7.2m EUR in August 2008, and it promised to fulfill the obligations from the social programme within 12 months.

The Privatization Agency warned "Avtodetal servis" in June because of unregular payment of salaries to employees, and announced that it would carry out special control of operations of "Ikarbus" after August 17th, when the deadline for fulfillment of obligations from the social programme expired.

The employees in "Ikarbusu" went on strike on July 1st demanding the payment of four salaries and continuation of production in the bus factory, which was discontinued because of lack of orders. The Director General of "Ikarbus", Srećko Nijemčević, submitted his resignation at the end of July after "Avtodetal servis" failed to find jobs for that Belgrade-based bus factory.

Striking board of "Ikarbus" submitted request for cancelation of privatization to the Privatization Agency of Serbia in mid-August 2009.

During his visit to China on August 21st, the Minister of Economy and Regional Development of Serbia, Mlađan Dinkić, invited Chinese entrepreneurs to invest in "Ikarbus".

According to the data provided by the Business Registers Agency, "Ikarbus" had 817 employees in 2008, as well as net profit of 88.5m RSD based on 3.1 billion RSD worth of incomes, while the company ended year 2007 with the losses of 517m RSD and the incomes worth 729m RSD.