The Romanian State is trying to drive explosive producer "Uzina de Produse Speciale" - Fagaras into bankruptcy by not paying the employees and cutting the core human resource pool by one third, according to union leader Dorel Dragan. "We initially negotiated a core pool of 566 persons. We understood times were hard and we accepted a reduction to 240, but now we see that AVAS has budgeted even less people than that," he said.
The factory has seen investments in excess of 20 million EUR, but another 7 million is necessary to complete such projects. Nevertheless, majority shareholder Romarm does not see a need to continue the investment plan. "We have very numerous orders, above our production capacity, but AVAS won"t let us work. A powder specialist is getting paid the minimum wage," Dragan said. He believes that AVAS, which controls Romarm, is interested in liquidating the company or selling it to certain parties. "However, if the people leave, they will find it very hard if not impossible to resume production," Dragan warned.