APENDIX PRESS CLIPPING FOR NEWS CONCERNING GIKILPrepared by GIKIL Corporate Communications Team LUKAVAC, DECEMBER 2010
Sodalive, trvtk.ba, graĉanica.net, Port.ba, bih-rss.net, mojatuzla.com Engine drivers strike threatens Global Ispat Coke Industry Lukavac 15% production decrease in GIKILRailway traffic that has been suspended since December 12th, has causedserious consequences to the Global Ispat Coke Industry Lukavac, andforced the plant to significantly decrease its production. The stabilizationof the production and the export of high quality coke to the world markethas been in danger again after 10 months.Worried about the difficult situation where the company business is atstake, the management of the Global Ispat Coke Industry has sent openletters to the director of the Railway Company in the Federation of Bosniaand Herzegovina, warning that the engine drivers strike has completelyendangered the production of coke.According to the letters, the strike has lead to the sudden productiondecrease, and all the coke that has been produced is technologicallyuseless- the waste. It is hard to assume the amount of the damages, butthey are enormous in any case. The letters also report that if the situationremains unchanged, GIKIL will continue with the reduced production untilthe technical minimum that will only keep the battery alive, consideringthat the coal supplies in GIKIL are sufficient for the 24-hour productiononly.
The railway traffic halt has severely endangered the continuance of thecoke production and sale, and the contracts which have finally in 2010lead to the stabilization of this company. It is a paradox that the railroadcompany workers put one of their biggest business partners in danger,directly and for a long term putting their own future in danger.The traffic blockade has stopped the shipment of coal and the sale ofcoke, which directly endangered the sustainability of the contracts, whichcan ensure the future for 1,150 employees in GIKIL but also for therailroad company workers who put themselves in even harder positionwith the blockades.***BMG, December 14th, 2010The railroad company workers strike threatens Global Ispat CokeIndustry LukavacAlarming situation in GIKIL – the production decreases by 31%The railway traffic blockade in the Federation of Bosnia and Herzegovinahas caused severe consequences to the Global Ispat Coke IndustryLukavac, and this company is forced to decrease the production drasticallyby 31% suffering the enormous and long term damages. If the railway
traffic does not start GIKIL will continue with the decreased production,reaching the technical minimum.GIKIL Management is seeking for a way out of this situation, and thecalculation of damage caused by the strike has continuously been inprogress. Part of the facilities has already been out of function, and theships traveling to the Port of Ploĉe in order to load the coke from theGIKIL Company will have to stay in the port until further notice.The management is continuously holding meetings and they haveexpressed worries because of the sales lost in the first quarter of 2011. Inorder to at least partially alleviate the consequences of the situation,about one hundred trucks have been involved to bring the coal in order tomaintain the production at the minimum capacity, considering the factthat 7000 mt of coal have been trapped on the railways, according toGIKIL.Because the coal can’t be brought from Ploĉe, the quality of the producedcoke is below the contracted level because some of the component, likesodium base and sulphur acid, are missing. That the situation is worryingshows the fact that the fertilizer plant has been threatened ,too, becausethey have only four-day supplies of the amonimum and N-butane left. Theproduction blockade in GIKIL, the fertilizer plant and the impossibility todeliver coke to the plant puts the survival of the factory and the future of1,150 employees in danger.***BMG, December 17th, 2010The media announcing the call: Sodalive.ba, Sarajevo-x.com,Tuzlarije, Tip.ba, ekapija.ba, Port.ba, Facetv.ba, hayat.ba,sutra.ba, Hercegovina.info, Depo portal, Bosnachat, mojevijesti.ba,bih-rss.ba, biznis.ba, bitno.ba, rsg.ba, banjalukain.comUrgent!!! An invitation to the special press conference Lukavac giant GIKIL to face extinguishmentThe management of Global Ispat Coke Industry Lukavac, will hold aspecial press conference at the GIKIL management meeting hall today,December 17th, 2010 at 12.00 due to the alarming situation in thiscompany caused by the blockade of railway traffic in the Federation ofBosnia and Herzegovina.
The GIKIL plant has been performing on a technical minimum level and inthe following 24 hours the production will be extinguished of the trainsdon’t deliver the coal for coking. We remind you that once extinguishedcoke battery can’t be started again, and that means that the plant stopsits work and 1,200 employees lose their jobs.***Nezavisne novine/Bizon.ba, December 17th, 2010The most successful managers and “business champions” awardedThe most successful managers and “champions of business” for this yearare Nedžad Rešidbegović, the director of BH Telecom, Matan Žarić, thedirector of the Electric-Power Company HZHB, and JagannadhamGuntupalli, the director of the Global Ispat Coke Industry.Traditionally, the 23rd time in a row, the announcement of the mostsuccessful managers and companies in Bosnia and Herzegovina, and 25businessman were awarded among 1,700 nominated entrepreneurs.The “champions of business” for this year are: Amira Sipović, the directirof “Standard” Sarajevo, Munever Ĉergić, the director of the lignite mineBanovići and Mile Lakić, the director of the “Višegrad” Hydro-ElectrisPower Plant. Rešidbegović pointed out that “BH Telecom” had BAM 160million profits and showed that it is the most profitable telecommunicationcompany in Bosnia and Herzegovina.This year’s most successful managers and entrepreneurs in the BigBusiness category are: Sinan Merzić, the director of Hepok Mostar, Hasan
Nezić, the director of Eurotrans Gradaĉac, Miroslav Tešić, the director ofTurbina IPD Teslić, Emir Avdić, the director of Intrade Energy, DubravkaBašić, the director of Lager Posušje, Ćamil Zaimović, the director of LigniteMine Breza.The awarded in the area of middle business are: Said Karajlić, the directorof Koavn Graĉanica, Halil Kahrica, the director of BH Kabel Net Sarajevo,Veljko Golijanin, the director of Majnex Pale, Mustafa H. AĊulović, thedirector of Gramont Gradaĉac, Muhamed Hrnjić, the owner and thedirector of HM Promet Maglaj and Mile Atlagić, the owner and director ofAM MeĊugorje Banja Luka.The awarded for the small business category are: Aco Stanišić, thedirector and the owner of the Stanišić Company Pale, Dževad Civić, thedirector of Civić Company Cazin, Tomislav Ladana, the director of Termo-Flux Jajce, Amir Bašagić, the director of Ingplast Cazin, Mahir Mujić, thedirector of EZ Busovaĉa and Marko Vincetić, the director of Imo JuniorOrašje. The manifestation “Manager of the year – economy person of theyear 2010” was held under organization of “Independent Agency” Zenicaand European Managers Association.***December 17th, 2010Special press conference in GIKILThe survival of the Lukavac Giant disputable
The management of Global Ispat Coke Industry held the special pressconference today due to the alarming situation that arose in this companywith the blockade of railway transport in the Federation of Bosnia andHerzegovina. As it was said at the press conference the basic productionin GIKIL is in danger, and that is coke produced in the coke battery whichis unable to work without high caloric coal brought from abroad, via thePort of Ploĉe to Lukavac.According to Faik Buševac, the deputy manager in GIKIL, thetechnological process in the battery operates in a way that it is unlikely tostart the battery again if it stops working, because it is very expensive todo so.“We are constantly decreasing our production. At this moment thecapacity is 30%, and that is one of the technical minimums of the battery.In 24 hours we will decrease the production for additional 7% after whichwe would have to stop the battery in order to avoid damage on thefacility”, said Buševac.The GIKIL representatives said that they have had problems with theRailway Company in the Federation of Bosnia and Herzegovina in the lastsix months because of the railway reconstruction so the shipment hasalready been reduced. “All these times we only had the supplies for 2-3days under the battery full capacity. The earlier GIKIL practice was tohave supplies for 15 days. We are maintaining contact with the RailwayCompany of the Federation of Bosnia and Herzegovina and we havepromises that the blockade will stop. At this moment we are shipping the
coal with trucks, and if we didn’t do that we would have terminated ourperforming. This kind of industry has no sense without railways, becausethe road traffic is not suitable for this industry” said Buševac.According to Sulejman Puĉić, ED for supply management chain, this plantcould lose its buyers. So the alloy plant in Macedonia could stop, becauseGIKIL hasn’t been able meet the supply contract obligations. “This is achain reaction problem.It is hard to talk about the damages that have already arisen, because ourproduction has more than one component. We have lost BAM 500,000only with electric power supply. But some of the things are yet to havehappened. The ships are waiting in the Ploĉe Harbor to take over the coke.Each day of waiting costs $ 30,000. those are the figures that the strikeorganizers do not understand,” said Puĉić. The problem of this factory istoo complicated to be solved in one day. There were some solutions suggested to involve the railway companiesfrom Croatia or the Republic of Srpska. Besides the coke plant there aretwo other plants in danger, the fertilizer plant and AMK (malein acidanhydride), lacking the ammonium and benzene, the basic raw materials.At this moment there are about 1,000 workers in GIKIL and they might allstay without jobs due to the railway traffic blockade. Besides GIKIL, themost endangered are Arcelor Mittal Zenica and Alumina plant. Theseenterprises are communicating intensively in order to find solution for theproblem.
***FENA, Sarajevo-x …, December 15th, 2010The suspension of traffic is illegalThe Railway Company in the Federation of Bosnia and Herzegovina gavethe full support to the managementThe Supervisory Board of the Railway Company of the Federation ofBosnia and Herzegovina (ŽFBiH) held a special session because, as allegedin the statement of the Committee, the Emergency Situations in thecompany, caused by the illegal engine drivers strike on 12th December.Supervisory Board at the meeting strongly supported the work of themanagement of the Railway Company in the Federation of Bosnia andHerzegovina and their struggle for the establishment and normalizationof railway traffic on the lines of the company, which by the railway lawand regulations is responsible for the safety of railway traffic, andappealed to all employees, especially the engine drivers, to re-examine itsposition and distance themselves from illegal activities of informal groupsand observe the consequences of the illegal suspension of railway traffic,where their existence and their families’ existence is threatened.In order to establish a normal course of rail transportation immediately,the Supervisory Board has decided that the management allows theintroduction of work duties in these extraordinary circumstances andordered taking all legal measures in order to enable the company’s normaloperation. In the statement, the Supervisory Board of Railways said that they weresurprised why the engine drivers stopped the railway traffic in other areasnot covered by the decision of Railways to introduce only one enginedriver in the locomotive and reminds that it applies only to passengertrains on the Sarajevo-Zenica- Doboj line. The Supervisory Board alsobelieves that the real causes of the engine drivers strike are much deeper
and that informal groups that want to obstruct the efforts of themanagement, and illegally reduce the current outstanding business resultsand to keep unfairly gained privileges for themselves.***FENA, Sarajevo-x.com, December 15th, 2010The alarming warning of the collapse threat in “Aluminij”Ivo Bradvica, “Aluminij”, Ltd. Acting Director and Samir Anic, thepresident of the Independent Trade Unions of employees in “Aluminij”sent the alarming warning of the collapse threat in “Aluminij” to thepresident and vice president of the Federation of Bosnia and Herzegovina,the Government, Federal Ministry of Energy, Mining and Industry, theMinistry of Interior, Transportation and Communications, and to theManagement of the Railroad Company in the Federation of Bosnia andHerzegovina.The warning says that the unreasonable behavior of the machinists strikeorganizers in the Federation has completely stopped the anode productionfacility and jeopardized the entire operation of the “Aluminij” Mostar. "Wewant a concrete and immediate reaction. This situation means theuncertain anticipation of the weekend for us, when we will spend all of theresin, petrol coke and alumina supplies, without which the aluminum plantceases to exist.Although we lose tens of thousands of euros a day because ships with ourraw materials are waiting in the port, it is now negligible compared to thecatastrophe that awaits us if the Government of the Federation of Bosniaand Herzegovina and authority in general to neglect their duties andobligations and do not stop the illegal blockade of railway operations ",said in the warning. Also, it is clarified that the law clearly lays down theprovisions on the behavior in the event of a strike, and prescribes that theRailway Company workers in the Federation shall not threaten the
survival of another business with their actions. The “Aluminij” Ltd. Mostardemands from the Government of the Federation to promptly break theblockade and allow the traffic of trains to aluminum company to obtain thenecessary raw material without which, it is said, 900 workers will losetheir jobs.***Sarajevo-x.com, December 14th, 2010Railroad workers strike: The pressure is rising in both machinesand peopleThe Railway Company in the Federation does not operate. To be moreprecise, the engine drivers refused to work because they can’t guaranteesafety for the passengers and themselves. The management accuses theengine drivers that the strike is illegal, and that they misuse the businessimage of the company. Two sides of one medal, who do we believe? Doesanyone doubt?F.BoricAs far as the signatory of these lines is concerned, the situation can be,better than any words thrown, shown by the lyrics of the song by DarkoRundek, from his first individual record “Apokalipso,” which was a scriptfor a theatre play I don’t remember the name of.“The Engine Drivers Strike” brings the lyrics that should be presentedcompletely: “I’m so hungry/I’m so angry/The night is cold/The way islong/Far away from the town/I’m still far away/At the border of sleep/.Through the tunnels/Through the canyons/Steam in the front/Tons at theback/I don’t know what to hope for/ Maybe the switchman knows/Thepressure is growing in the engines/” and the revolutionary chorus “Thetears don’t come from the dry air/Nor the groan is from the coal/Raise thefist/Let it take us to the better days/Ay, all the pothouse knows/ That I’mnot a servant/The stolen strength/I’m not gonna kneel/Never until now/
Half a billion losesIn the meantime, the management is being strict over one of thenumerous unions existing in this company. That tells us about the statusof workers and the unions organized by the principle “split and rule.”When the engine workers are angry, call the switchmen, when theswitchmen scream, call the conductors. This time, as they say, theyappear as one, the new details will be known during the day. The knownfact is that the railway workers are under pressure due to the imperativeof shipment to Global Ispat Coke Industry Lukavac which, suffers greatlosses, due to the market blockade. But that the workers who seek theirrights do not like the company they work for, that is nonsense.***FENA, Sarajevo-x.com…Dnevni avaz, December 14th, 2010The railway workers on strike on December 28thAfter the meeting of all the representatives of railway workers in theRailway Company in the Federation of Bosnia and Herzegovina, thedecision on general strike on December 28th at 7.00 a.m., confirmedVernes Buljugija, the president of the engine drivers Union, for Sarajevo-x.com. He said that the list of demands was made demanding from theManaging Board the withdrawal of illegal changes in collective contract,the withdrawal of amendments in the Ordinance on work in the RailwayCompany in the Federation of Bosnia and Herzegovina, the withdrawal ofthe decision on only one engine driver, and not to press any chargesagainst the engine drivers who started the strike. “If they don’t meet all our demands we will seek the Managing Boardmembers to be fired,” said Buljugija. Buljugija said that there were nonegotiations with the General Director of the company because “Hedoesn’t want to talk to anyone.” Buljugija said that there is no way thatthe Management of the company can make the workers to terminate thestrike. The Government of the Federation of Bosnia and Herzegovinainvited the Unions of the company, on today’s session in Mostar, to
contribute to the termination of the illegal strike and to, in any case,including the possible strike, act in accordance to the law. As it was statedfrom the session, the government concluded that there are exceptionalcircumstances present after the engine drivers strike.According to the Act on Railways of the Federation of Bosnia andHerzegovina, the government of the Federation gives mandatoryinstructions to the management of the enterprise in exceptionalcircumstances, so they delegated the company’s Supervising Board to, inaccordance to the Law, the enterprise Statute and other regulations andacts, take necessary measures in order to stop the strike and to start andnormalize the railway traffic.At the same time, the management of the company shall prepare andconduct necessary measures to maintain the operational process and thesafety of railway traffic in order to achieve the legal activities of thissystem and meets the contracted obligations towards their clients, and incase of strike to ensure the legal minimum process of work, including theshipment of cargo for the strategic partners and electric power system,and to protect the objects and the property of the Federation of Bosniaand Herzegovina.***FENA, December 13th, 2010Railway workers strike in Bosnia and HerzegovinaPresident of the engine drivers Union in the Federation of Bosnia andHerzegovina Vernes Buljugija this morning stated for FENA that therailway traffic in the area of the Federation has been suspended since lastnight and that the initiators of the suspension are all engine drivers,regardless of whether or not they are Union members. Buljugija confirmedthat such a decision was made after the suspension of ten engine drivers
who refused to run the trains with only one man driving the locomotive.He also said that the meeting of all trade unions within the railroadcompaniy would be held tomorrow on which they will decide what to donext."For our Director Osmanagic there are no regulations or collectiveagreement for the railway workers in the Federation, but everything is ashe says, and we think that such decisions threaten our lives," saidBuljugija. The Supervising board and the management of the RailwayCompany in the Federation of Bosnia and Herzegovina got the consent ofthe Government to take other measures provided by the Law if theexceptional circumstances and serious disturbances in conducting businessoccur.******Tuzlarije, Srna, Dnevni avaz…December 16th, 2010Nedžad Osmanagic: Trains will leave, by hook or by crookThe Railroad Company in Federation of Bosnia and Herzegovina ManagingDirector Nedžad Osmanagic said that the trains would start moving, forcedor not, arguing that there is not an engine workers strike in this company,but an illegal work stoppage caused by several individuals’ own will,according to "OsloboĊenje".According to Osmanagic’s words, the decision that one machinist managesthe locomotive at Doboj – Sarajevo route, as the engine drivers cited asthe reason for the strike, was rendered in a very responsible way. "Theexperts estimated that the introduction of only one machinist handling thelocomotive on that route will not affect the traffic safety," said Osmanagic,adding that, as the first responsible person, he would never agree tosomething that threatens the safety of railway traffic. He warned that the
The Railroad Company in Federation of Bosnia and Herzegovina hassuffered extensive damage due to traffic blockade that will be calculatedfor days.“Coke production in Lukavac has been challenged. A similar situationthreatens to endanger the Electric Power Company in Bosnia andHerzegovina and the coal mines, Arcelor Mittal, the cement plant inKakanj and many others.The Port of Ploce has been flooded with goods, and everythinghasstopped, "said Osmanagic for "OsloboĊenje." The railway traffic in theFederation of Bosnia and Herzegovina has been suspended since Mondaybecause of the machinists’ strike, which is why the FBiH Governmentdeclared an emergency the day after and ordered the railwayadministration to take measures to normalize the railway traffic.***Ekapija.ba, D. Kozina, December 15th, 2010Multimillion damages caused by the strike: the Anode Plant in“Aluminij” stops, GIKIL decreases productionThe damages that the Bosnian economy has suffered since the railwaytraffic blockade cused by the engine workers in the Federation strike havealready been estimated to a few million, and if the situation does notstabilize the damages could lead to the complete stoppage in theproduction of big companies like “Aluminij” Mostar, GIKIL and others.The railway traffic in the Federation of Bosnia and Herzegovina hasstopped on Sunday, 12th December, and until today nothing has beendone to solve the problem. The negotiations between the management ofthe Railway Company in the Federation of Bosnia and Herzegovina and theengine workers have failed, and the big companies using the railway fortransport of products and raw materials desperately appeal to theautorities to find the way of solving these problems.That’s why the “Aluminij” Mostar, a company using the railway totransport the raw materials, has warned that this could lead to collapsing.
This company, one of the biggest Bosnian exporters, has warned that theirresponsible behavior of the organizers of the engine drivers in theFederation work stoppage could lead to the complete stoppage of theAnode facility and put the complete operation of this company in question.The aluminum production endangeredThey warn that until weekend all the supplies of raw materials needed forthe production (resin, petrol coke and alumina), without which they couldimmediately stop working. Although we lose tens of thousands of euros a day because ships with ourraw materials are waiting in the port, it is now negligible compared to thecatastrophe that awaits us if the Government of the Federation of Bosniaand Herzegovina and authority in general neglect their duties andobligations and do not stop the illegal blockade of railway operations ",stated from the “Aluminij”.They point out that, the law clearly lays down the provisions on thebehavior in the event of a strike, and prescribes that the RailwayCompany workers in the Federation shall not threaten the survival ofanother business with their actions, i.e it is clear that in case ofemergency the railway traffic shall be provided, and there is no other wayfor us to bring the raw materials to Mostar.The “Aluminij” demands from the Government of the Federation topromptly break the blockade and allow the traffic of trains to aluminumcompany to obtain the necessary raw material. Without raw materials ourcompany’s 900 workers will lose their jobs, because in case of thestoppage of the “Electrolysis” facility in this short period, those jobs will bepermanently, not temporarily lost.Big companies stay out of raw materials“Aluminij” is not the only company with such problems. This move fromthe engine drivers has caused serious consequences in Global Ispat CokeIndustry, which is also one of the big exporters. The representatives ofthis company point out that it is a paradox that the railroad companyworkers put one of their biggest business partners in danger, directly andfor a long term putting their own future in danger.The traffic blockade has stopped the shipment of coal and the sale ofcoke, which directly endangered the sustainability of the contracts, whichcan ensure the future for the employees in GIKIL but also for the railroadcompany workers who put themselves in even harder position with theblockades. This company has already been forced to decrease theproduction by 15% due to the blockade. They say that the productionstabilization and high quality coke sale to the world market could beendangered if the situation continues. “It is hard to calculate the amount
of the losses, but they are enormous in any case,” stated from thecompany. they warned that they will continue with the reduced productionuntil the technical minimum that will only keep the battery alive.