The Danish factory "Kentaur" in Vranje is closing its plant, leaving around 270 employees without work. The reason - an increase in the minimum labor price
A significant deficit recorded by the company "Kentaur AS", bad projections on the labor market for this and the next year, and the drastic increase in the minimum wage in Serbia are the reasons why the company's plant in Crow closed, announced the executive director of the Danish manufacturer of professional clothing for service and health activities Mie Krog.
As reported by the Vranje portal "Slobodna reč", when asked why this was not communicated to the workers in a timely manner so that they would have time to find their way, but they were only forbidden to enter the plant this morning, Korg justified this action by the situation on the labor market in Serbia.
"We had to react quickly to recent changes and projections on the labor market - a drastic increase in minimum wages," Krog stated in a written statement for the Slobodna reč portal.
Minimum labor cost it was increased at the beginning of October to 58.630 dinars, i.e. to 500 euros.
Another factory closes: 270 people lose their jobs in Vranje
She confirmed that the opening of the company "Centaur Balkan" several years ago was supported by the Government of Serbia, and that it was "a strong and good cooperation with which they were very satisfied".
Since then, she said, Centaur AS has invested heavily in the production facility in the hope of achieving "competitive economies of scale", but this has not been enough to support rising costs, and the company is now running a significant deficit.
She explained that the company had hoped to turn the business around with technical investments and new management, but that turned out to be "impossible" due to the development of the labor market in 2025 and projections for 2026.
"We didn't see another option other than closure," Krog added, stressing that the decision was "very unpleasant."
"However, we are a private company and have tried to resolve it within our own circle of control. We do not want to rely on public funds to run our day-to-day business. Therefore, we did not involve local or state government in making this decision," Krog replied.
More than 250 workers of the "Kentaur" plant in Vranca found out on Monday (October 27) morning that they would be out of a job, without prior notice.
The workers who tried to enter the plant this morning were denied entry, and were told that they could come pick up their things from tomorrow.
They were greeted by a printed message, without a signature or stamp, stating that the closure of the factory would be carried out "in the course of liquidation".
On paper, it says that wages and all benefits will be paid, including the salary for the whole of October, as well as unused vacation days.
"You are entitled to a monthly allowance from the National Employment Service for a period of two years. In order to receive the allowance, contact the NHS," the notice says.
The mayor of Vranje stated that he was not informed about the company's decision and that it was an "incomprehensible" and "unreasonable" act.
He announced that the local authorities together with the state authorities will do everything to find an adequate solution to the situation, and then he went to the party premises of the Serbian Progressive Party in Vranje to celebrate the party's glory.
Source: Free Speech
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