European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

COVID-19 EU PolicyWatch

Database of national-level responses

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-2020-14/780 – measures in Croatia

Adris group management agreed to cut their salaries to avoid layoffs

Nove poslovne mjere u Adris grupi uzrokovane korona virusom

Country Croatia , applies nationwide
Time period Temporary, 01 April 2020 – 30 June 2020
Type Company practices
Category Employment protection and retention
– Wage flexibility
Author Predrag Bejalovic (IJF) and Eurofound
Case created 24 April 2020 (updated 30 April 2020)

Background information

The Adris group is a large company active in tourism, resorts, insurance, production of healthy food and real estate. In order to overcome the situation caused by the ongoing coronavirus pandemic, the Adris Group's management, with the consent of its supervisory board, has made a number of decisions that will affect the operations of their affiliates, primarily their liquidity and profitability, and the long-term sustainability of the company in these unprecedented new circumstances.

Content of measure

Regardless of the current circumstances in Croatia and across the world as the coronavirus pandemic continues to hold the economy in its firm grip, the Adris Group's management board decided that there would be no layoffs within that company. The Adris Group will realize already contracted and ongoing investments, and they will continue to prepare for planned projects. Aware of the circumstances and the unknown situation when it comes to the potential duration of the coronavirus crisis - and despite the exceptionally good business results it achieved in 2019 when net profit after minority interests was 31 percent higher than it was in 2018, the company's management have agreed to cut their salaries by 30 percent over the next three + three months that will be used primarily for improving the solvency of the company and as possibility to reduce the costs.

Use of measure

By the establishment of its Foundation, the Adris group, wanted to make a breakthrough in social responsibility. It also wished to offer direct assistance to the development and progress of Croatian society, through the promotion of social responsibility among Croatian companies and the general public. The Adris Foundation in addition to the donation of three million HRK (€ 400,000) for the procurement of respirators for hospitals in Rijeka and Pula, the Adris Group's administration has decided to donate two million HRK (€ 267 thousand) for the restoration of cultural monuments damaged in the recent earthquake in Zagreb.

Target groups

Workers Businesses Citizens
Does not apply to workers Larger corporations
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Companies

Social partners

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

Trade unions Employers' organisations
Role Consulted No involvement as case not in social partner domain
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Not applicable

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

  • Only trade unions
  • Main level of involvement: Company level

Involvement

N/A

Views and reactions

Due to the nature of the measure, the company level trade unions as social partners were consulted.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G46 Wholesale trade, except of motor vehicles and motorcycles
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities

This case is not occupation-specific.

Sources

  • 06 April 2020: Adris grupa ne otpušta zaposlenike, menadžment smanjuje svoje plaće za 30 posto (www.poslovni.hr)

Citation

Eurofound (2020), Adris group management agreed to cut their salaries to avoid layoffs, case HR-2020-14/780 (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.