Denial of ASNS Union Statements Regarding the Meeting at the Ministry of Defense

Regarding the latest media reports published by the ASNS union about the categorical refusal of Ministry of Defense representatives to provide support in resolving status issues of importance to the employees of Zastava TERVO d.o.o., we hereby sharply refute the stated allegations and consider them malicious comments that place the Ministry of Defense and the Zastava TERVO factory as part of the Serbian Defense Industry Group in a negative context.

First and foremost, we sharply reject the union's claims that the Ministry of Defense did not provide support in resolving issues of importance to Zastava TERVO employees. On the contrary, the Republic of Serbia and the Ministry of Defense have, over the past 8 years since the founding, continuously invested in and supported our company, significantly contributing to strengthening our factory and concluding multiple contracts with our factory, recognized as significant for the defense system.

On October 29, 2025, a meeting was held at the Ministry of Defense premises, organized by the Defense Technologies Directorate, at the request of the ASNS union regarding the improvement of the status position of employees. The meeting was attended by Ministry of Defense representatives: Assistant Minister for Material Resources Dr. Nenad Miloradović, Head of the Defense Technologies Directorate Major General Dr. Slavko Rakić, Colonel Veljko Petrović, Lieutenant Colonel Dragan Bogosavljević, members of the Supervisory Board and management representatives of Zastava TERVO, as well as representatives of the aforementioned union.

The Assistant Minister for Material Resources stated that the factory was founded with the primary task of developing and producing armaments and military equipment for the Serbian Armed Forces. The Republic of Serbia, over three investment cycles, invested significant financial resources in equipping production facilities with state-of-the-art equipment, considerably raising the factory's technological capacities. Significant funds were also invested in the restoration and reconstruction of devastated facilities as a prerequisite for developing new modern industrial plants.

The Ministry of Defense invested great efforts in securing high-value contracts, enabling the employment of nearly 250 workers who regularly receive their salaries with all applicable taxes and contributions. The net average per employee was 100,000 RSD for October 2025. As a new factory within the Serbian Defense Industry, Zastava TERVO has been entrusted with very important projects both for equipping the Serbian Armed Forces and for the export program, brokered by the Ministry of Defense.

We consider such destructive actions by ASNS representatives unacceptable for a defense industry factory of vital importance to the Republic of Serbia, especially at this delicate moment of global war crisis when the process of equipping the Serbian Armed Forces is crucial for preserving sovereignty. Destructive actions negatively affect factory productivity and project realization, which has the direct consequence of potential delays carrying penalty provisions — i.e., reduced income for Zastava TERVO based on which employee status improvements were planned.

We will continue aligning salaries with the growth of labor costs in accordance with the expected successful realization of projects, without endangering the financial stability of the company.