EMCC European Monitoring Centre on Change

Crosco

Company/Organisation:
Crosco

Geographic Location

Country: Croatia
Region: Grad Zagreb; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): City of Zagreb

Company

Sector: Mining / quarrying
Mining and quarrying
06.10 - Extraction of crude petroleum
Number Employed: 880
Group: INA

Employment Effects

Announcement Date: 19-06-2020
Planned Job Reductions min: 200
Planned Job Reductions max: 210
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-06-2020
Foreseen End Date: 17-08-2020
Direct Dismissals: 200

Additional Information

Croatian oil company INA's subsidiary Crosco, which drills for oil and maintains oilwells, will lay off 200 hundred workers in the next months. At the end of 2019, the company employed about 880 people. INA confirmed that dismissals will occur because the company has been significantly affected by the crisis. The crisis has been reflected in the fall in oil and gas prices on world markets and the simultaneous decline in demand for other oil-based products, which at the time of the standstill caused by the coronavirus pandemic was up to 50 percent. The company therefore had to take a number of operational and financial measures aimed at stabilising its operations.

Crosco, for the first time since its establishment, has had periods with reduced and even zero working hours. The company's revenues are many times lower than costs. Since the beginning of this global crisis until now, due to the significant cessation of business activities and the consequent cessation of the need for work, almost 90 percent of Crosco employees have been released from work with the right to salary compensation.

According to INA, after the restructuring, Crosco will be focused primarily on servicing the needs of INA, but they are not intending to close the company. The legal process of consulting with the Workers' Council is currently underway. In accordance with internal acts, employees who will leave the company are provided with significantly greater rights than the rights prescribed by the Croatian Labour Law, specifically regarding the severance payment.

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