Prime Minister Jadranka Kosor and representatives of the laid-off workers of Djakovstina, which has gone into official receivership, on Wednesday signed a contract regulating the payment of HRK 27.9 million in severance pay.
The signing of the contract formalised the agreement under which the Croatian government approved the payment of HRK 27.9 million from budgetary reserves to settle the debt towards the former employees of the Djakovstina flour factory.
The decision to pay severance packages covered all 350 Djakovstina workers except members of the managing board.
After the signing ceremony in the eastern town of Djakovo, Kosor said that finding a solution for Djakovstina workers "was one of the most complicated cases this government has faced".
"However, we eventually found the solution. We are satisfied that the solution was found for the workers who lost their jobs through no fault of their own," Kosor said.
The company's official receiver, Perica Mitrovic, said that the money would be paid into to the workers' accounts on Thursday.
The flour factory, based in Djakovo, went into receivership in January 2010. So far, HRK 15.65 million has been paid from the bankruptcy estate, and the remainder will be paid after the completion of the ongoing proceedings.
