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Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case HR-2020-14/1059 – measures in Croatia

Annexes to collective agreements for all firms in the INA Group

Dodaci kolektivnim ugovorima za sva društva INA Grupe

Country Croatia , applies locally

    • – HR041 Grad Zagreb
Time period Temporary, 01 April 2020 – 31 December 2020
Type Bipartite collective agreements
Category Employment protection and retention
– Wage flexibility
Author Predrag Bejalovic (IJF) and Eurofound
Case created 03 September 2020 (updated 07 September 2020)

Background information

INA Group has leading role in Croatian oil business and a strong position in the region in the oil and gas exploration and production, oil processing, and oil and oil products distribution activities. INA Group is comprised of several affiliated companies wholly or partially owned by INA. The Group has its headquarters in Zagreb, Croatia. INA Group has around 9,000 employees and therefore it is very big for Croatian circumstances. Croatia and the whole world are facing the unprecedented health and economic crisis, and changes that occur on the foreign and domestic market in large also affect INA's operations. The current situation is serious and requires responsible social partners and the understanding of all workers. Due to the difficult situation in the company, the Management Board invited the representative trade unions to negotiate on the changes in the collective agreements which are in force. The trade unions accepted the invitation, with the primary goal of preserving jobs and the retention of existing workers rights as much as possible.

Content of measure

The annexes to the collective contracts for all INA Group companies were signed on 20 April 2020 and would be valid from 1 April 2020 to 31 December 2020. After their expiration, the provisions of the previous collective agreements from March 2020 will be applied.

The most important changes in the annexes refer to different manner and deadlines of communication as well as to temporary delay of certain pecuniary rights. In all INA-Group companies, the deadlines for issuing written orders for overtime work are extended from 7 to 30 days. The deadline period for issuing the information concerning a schedule or changed working hours is shortened from 7 days to 24 hours in advance. The same period for the information on the schedule and duration of annual leave is shortened from 15 days to 2 days in advance.

In all INA Group Companies (except CROSCO and STSI), workers whose work is temporarily not needed ("on hold" workers), are eligible for a salary compensation of 75% contracted monthly gross wage or salaries from the employment contract, excluding allowances, but not less than net amount HRK 4,000.00 (€ 533.33) if the employer obtains the support by the Croatian Employment Service. In case that the employer does not receive this support, there will be salary or wage compensation not lower than the legal minimum wage in the Republic of Croatia (net monthly amount HRK 3,250.01 or € 433. 33).

In CROSCO and STSI, where due the specific characteristics of the business and the current economic situation, business activities are reduced to a minimum, the workers whose work is temporarily suspended ("on hold" workers) are eligible for a salary compensation of 50% of contracted monthly gross wage or salaries from the employment contract, excluding allowances, but not less than net amount HRK 4,000.00 (€ 533.33) if the employer obtains the support by the Croatian Employment Service. In case that the employer does not receive this support, there will be salary or wage compensation not lower than the legal minimum wage in the Republic of Croatia (net monthly amount HRK 3,250.01 or € 433.33).

In all INA Group Companies temporarily the use of the following pecuniary rights is delayed:

  • Flat-rate supplement for a hot meal, in the net amount of from HRK 400 (€53.33)
  • Holiday flat-rate monthly supplement in the amount of HRK 1,500 (€200);
  • Christmas bonus is reduced by HRK 500 (€ 66.66) contracted in the new collective agreement (signed in March 2020) and will amount to HRK 1,000 (€133.33);
  • Reimbursement of transportation costs is abolished for workers who do not travel to work, because they work at home or are "on hold";
  • Termination of the payment contributions for additional health insurance.

Exceptionally, only workers at retail outlets will further obtain allowance of net HRK 400 (€53.33) per month, because it was not agreed in collective agreement in March 2020, but a year earlier, as part of a package to increase their low incomes.

The goals of these measures are to preserve as many jobs as possible, to achieve a more socially fair model for all workers whose work is temporarily not needed, to preserve existing collective agreements, and to give companies a possibility to stabilise their business operations.

Use of measure

Not available yet.

Contents

  • Bonuses
  • Employment retention
  • Leave arrangements
  • Other topics
  • Pay freezes or cuts
  • Telework
  • Working time flexibility

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Trade unions
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Company level

Involvement

Social partners were directly involved in design, implementation and monitoring of the measure fully aware that this is a needed stet to preserve all included companies. As mentioned, before the expiry of this annex, the social partners should jointly assess the situation and take further decisions with a view to extend or amend the Annex.

Views and reactions

Both sides are very satisfied and deem that it is an important step in the preservation of the company.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C19 Manufacture of coke and refined petroleum products
      D - Electricity, Gas, Steam And Air Conditioning Supply D35 Electricity, gas, steam and air conditioning supply

This case is not occupation-specific.

Sources

  • 21 April 2020: Potpisani dodatci kolektivnim ugovorima za sva društva INA Grupe (sing.hr)

Citation

Eurofound (2020), Annexes to collective agreements for all firms in the INA Group , case HR-2020-14/1059 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.