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Several thousand people gathered in Zenica on Friday, carrying banners and union flags, to mark Labor Day with a protest over the likely closure of a steel mill in the central Bosnian town after production was suspended last week due to financial losses. Associated Press video showed crowds marching through the streets and gathering outside the Nova Zeljezara Zenica steelworks management building, waving flags and blowing whistles before standing behind union banners for the national anthem.
The steel mill, now operating under the name Nova Zeljezara Zenica and employing some 2,000 people, was established more than 130 years ago. It was owned and managed by the global steel giant ArcelorMittal for more than two decades until last year, when it sold a controlling stake to Bosnia-based Pavgrod Group. The mill has been a backbone of Bosnia’s economy for much of the 20th century and, at its peak in the early 1990s, employed about 22,000 people. It has been in steady decline since restarting production after a halt during Bosnia’s 1992-95 interethnic war, with the downturn accelerating after the 2008 global financial crisis. Skender Mihret, who retired two years ago after four decades at the steel mill, joined the protest. “It is sad, just sad,” he said. “I handed over my job to a younger person and now, less than two years later, the conditions are such that they cannot keep it.” Pavgrod Group is in talks with the government of the Bosniak-Croat Federation, which owns an 8 percent stake in the company, on ways to overcome the crisis and restructure production. Proposals include the government taking over a controlling stake to prevent bankruptcy. Kenan Mujkanovic, leader of the Zenica Metalworkers Union, said they would support any solution that protects jobs. “If we lose jobs, that is the end,” he said. “Right now, the situation is such that integral steel production has been suspended … We will do everything in our power to reverse that decision and to fire up the blast furnace again as soon as possible.”
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