Battle for Oriana

The Day has learned that magnesium production workers of the Oriana open stock company (Kalush) is preparing to strike. Its main demands are not to suspend production and to pay off salary arrears of Hr 9.5 million.

However, the chairman of Ivano-Frankivsk Oblast Council Mykhailo Vyshyvaniuk declared in a speech to the Oblast Council, "Figuratively speaking, we have to bribe this company (Shelton - Ed.) not to flee."

The Day called Pavlo Tokariev, Shelton general director, under the supervision of which still state-owned Oriana was placed. According to him, the social tension at the enterprise arose due to action by the former management, which had raked up the enterprise's debt to almost a billion hryvnias. These same people (they are being laid off) may incite the workers to actions of protest. Meanwhile, the enterprise-restructuring plan really does envision a temporary suspension of unprofitable production in order to make it possible for profitable ones to work at full capacity, to stop rising debts, and make some money to buy new technologies. Incidentally, the jobs will remain and the workers on suspended production lines will be paid their wages. According to restructuring plan, the enterprise should begin to bring a profit as early as July. Tokariev added that there is a real fight over Oriana. Many people are not satisfied that it (with its whole debt) was placed under Shelton's control (the agreement with the state stipulates that the concern will receive less than 1% profit for this) and send letters to the President and the National Defense Council.

Commentary

People's Deputy of Ukraine Serhiy KRYVOSHEYEV:

Until 1995 Oriana was a highly profitable enterprise. However, government tax and excise policies drove it bankrupt. Shelton is trying to bring it out of debtor's prison, but it faces many obstacles. First of all, there are hundreds of intermediary companies, which supply energy, natural gas, raw materials, and manage the products. They are displeased because they now have to work under different conditions. There is also a German company involved in the situation at the plant. (It seems that the now replaced management intended to sell Oriana to this very company for debt.) The company supplied Oriana with diesel fuel and straight-run petrol at prices, which made their refinery deliberately unprofitable. It is possible that the current fight for Oriana is orchestrated from Germany. Unfortunately, the Ministry of Industrial Policy has also joined the fray, threatening to replace the chairman of the board. It is demanding categorically that it reduce natural gas consumption by 30%, although experts realize that the enterprise cannot do so immediately.

The chairman of Central Committee of Chemical Industry Workers Trade Union Vasyl MOISIUK:

It is hard for Oriana's workers to judge Shelton's plans. The staff has not met with its representatives yet, though both sides had voiced such intentions. The Cabinet does not respond to the letters that come from the staff. I think both sides of the conflict should find a common language, because here we are speaking about an enterprise that has been feeding everybody in Kalush.

The Oriana Trade Union Committee Chairman Oleh KUSHLYK:

The trade union committee will hold a meeting together with the new management. After the meeting it will be clear what to do next. No protest actions are presently being planned.