Background information

Valamar Riviera is the largest tourism company in Croatia. Since the beginning of the global pandemic crisis, the company actively monitors the situation and continuously takes the necessary action to preserve employees’ and customers’ health, jobs and insure the business continuity. Following the tightening of general prevention measures by the competent authorities, Valamar closed in March 2020 all hotels and restaurants. With the aim of preserving jobs and business continuity in the conditions where touristic activities were completely suspended, Valamar made the decision to launch the "PAUSE, RESTART" program. It started on 1 April and will last at least 30 to possible 90 days.

Content of measure

The program covers all employees, therefore there will be no layoffs for about 2,800 workers in Valamar. Government support will be used. All employees who cannot work due to the situation will be referred to PAUSE from April 1. During the PAUSE, employees will be provided with a salary compensation in the amount of minimum 60% of regular salary, but not less than HRK 4,250 net (€567). This measure will apply equally to employees and management including permanent and seasonal workers. During the PAUSE, a part of employees and management in charge of the crisis will work primarily on maintenance, conservation and facility security duties, while a part of the staff will communicate with guests and partners. The wages of management will be reduced by up to 30% until all employees return to work. Other employees who will work full-time will continue to receive their regular full pay.

The Management Board cancelled the General Assembly and with the consent of the Supervisory Board proposed to the General Assembly a withdrawal of dividend payment and to direct these sources into funds for increase liquidity and support measures for the preservation of all jobs. Until the situation improves, Valamar Riviera cannot provide regular services but the company’s goal is not to lose any employee. To prepare on time for RESTART, the company directs its efforts to the development of a new business plan and the preparation of facilities for the start of touristic season.

Use of measure

Targeted at the whole company, 2,800 employees.

Contents

• Employment retention

Target groups

Workers	Businesses	Citizens
Employees in standard employment Seasonal workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Company / Companies	Companies National funds

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	Direct consultation outside a formal body	Direct consultation outside a formal body

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

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

Involvement

Trade unions were very actively in the preparation of the program for preservation of employment in the company. The management of the company always praises the positive and active role of the trade unions.

Views and reactions

Social partners actively participated in the preparation of the measure. Without them, the destiny of Valamar as a very big company would be under question mark.

Sectors and occupations

This case is not occupation-specific.

Sources

• 25 March 2019: Valamar pokrenuo program „PAUZA, RESTART“ (valamar-riviera.com)
• 24 June 2021: Valamar isplaćuje nagrade svojim radnicima (Valamar pays out prizes to its employees) (hrturizam.hr)
• 17 September 2021: Valamar nagrađuje sve svoje radnike (Valamar rewarded all its employees) (hrturizam.hr)