The advantages of doing business in the New Yugoslavia

[Louis Proyect <lnp3@xxxxxxxxx>]

>From the B92 website

Peugeot in deal with Zastava 13:17 BELGRADE, Thursday - Zastava, the
Kragujevac car factory which brought us the world-famous Yugo, is to sign a
partnership agreement with French automobile manufacturer Peugeot, daily
Glas javnosti writes today, quoting sources within the Democratic
Opposition of Serbia.

According to these sources, in the fist year of joint production, about
4,500 workers will be employed at salaries of approximately 800
Deutschmarks, to produce the Peugeot 206.

Senior management at Zastava today say they know nothing about negotiations
with a foreign partner.

The former director of the foreign trading company Genex, Milorad
Savicevic, was put in charge of a crisis management for Zastava this week.

======

Sunday Business, December 12, 1999

Call for strike at Peugeot

By Jon Menon

Peugot bosses and unions at the carmaker's factory near Coventry will hold
talks on Tuesday in an effort to settle a dispute over working hours, which
threatens production of the French company's successful 206 model.

The 4,400 employees at the Ryton plant and a nearby parts factory
represented by the Amalgamated Engineering and Electrical Union and the
Transport and General Workers' Union are seeking a 35- hour working week in
line with their French counterparts, following legislation which cuts hours
in France from 1 January 2000.

The unions claim the normal 39-hour week worked at the plant is longer than
the pattern at other UK carmaking factories including the Rover, Jaguar and
Ford operations.

Duncan Simpson, national officer for the AEEU, said: "We have bitten the
bullet for a number of years to raise productivity. It is unacceptable. We
will try to reach an agreement but industrial action has not been ruled
out."Peugeot claims the factory has the highest running costs in its group.
The company claims its schedules will push up productivity levels at the
Ryton plant.


Louis Proyect
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