Bosnia and Herzegovina: EPBiH and Miners’ Union reached an agreement

, SEE Energy News

General Director of EPBiH Admir Andelija and President of the Board of Miners’ Union Sinan Husic have signed an agreement on further implementation of the restructuring process exclusively through social dialogue, by agreeing that the restructuring of coalmines operated by state-owned power utility EPBiH has no alternative.

According to the agreement, EPBiH will provide the necessary funds to meet the retirement obligations of all employees of the coalmines, who previously acquired the conditions for retirement or will acquire them by the end of this year. EPBIH will also provide funds for dealing with the redundant employees in a socially acceptable way: retraining and additional training at the expense of the employer, transfer to another company without reducing employment rights and termination of employment with severance pay and other obligations. For employees who have been declared redundant and do not want to use any of the offered versions, the procedure will be carried out in accordance with the Labor Law.

The signatories of this agreement have committed themselves to the restructuring of coalmines by the end of 2023 at the latest, expressing their consent to the drafting of new regulations on work and performance in compliance with the provisions of the current collective agreement. In accordance with the reached agreement, EPBiH will ensure continued investment in the mines it operates.

At the end of 2020, the total liabilities of coalmines operated by Bosnian power utility EPBIH amount to 470 million euros. Of this amount, debts to the state reached over 250 million euros and in 2020 alone, the mines recorded a total loss of 40.5 million euros. Despite the more than 250 million euros that EPBiH has invested in the mines, their economically sustainable business has not been ensured. EPBiH operates a total of seven coalmines: Kreka, Zenica, Breza, Djurdjevik, Kakanj, Abid Lolic and Gracanica.