Factsheet for case HR-2020-14/1059 – measures in Croatia
, applies locally
|Time period||Temporary, 01 April 2020 – 31 December 2020|
|Type||Bipartite collective agreements|
Employment protection and retention
– Wage flexibility
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||03 September 2020 (updated 07 September 2020)|
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.
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:
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.
Not available yet.
|Applies to all workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
No special funding required
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 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.
Both sides are very satisfied and deem that it is an important step in the preservation of the company.
|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.
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.