Croatia: Industrial relations profile

Industrial relations in Croatia are essentially regulated by statute law while collective bargaining is of limited importance in spite of a notable coverage rate and trade union density. A widely used extension mechanism and well established bargaining in the public sector explains the high coverage rate of collective agreements, whereas autonomous bilateral dialogue is relatively weak. The state plays an important role in regulating labour relations, as well as in setting the economic and social policy. Social partners are, however, included in the decision-making process through the Economic and Social Council, a tripartite counselling body.