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Weekly Review of Slovenian Business & Economy from 31 January to 6 February

Ljubljana, 8 February - The potential closure of another Slovenian plant has set off alarm bells in the government, which is already having to deal with the effects that the announced scrapping of production at cigarette maker Tobacna Ljubljana is having. PM Anton Rop scrambled to find a solution from the crisis at paper producer Vipap Videm Krkso, a day after the management board of this company decided to scrap pulp production. As a result, around 400 workers would be jobless. Pulp production at the Krsko-based plant would now continue for another month at least. In this time, the representatives of the government, Vipap management and the union will attempt to find a suitable solution. Meanwhile the representatives of trade unions, the employees and the management at Tobacna reached agreement on severance pay that will be twofold what is envisaged in the enterprise collective agreement. Inflation hit 0.4 percent in January, bringing the annual rate to 4 percent.

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