Croatia: Annual update on pay 2012 - Questionnaire

  • Observatory: EurWORK
  • Topic:
  • Published on: 08 July 2013



About
Country:
Croatia
Author:
Predrag Bejaković, Irena Klemenčić,Viktor Gotovac
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

1 – General collectively agreed pay increases

1.1 Indexation of salaries

1.1.1 Is a mechanism on wage indexation in place in your country? If so, please briefly describe the main features (name of agreement/law, is it the basis for further agreements, who makes the agreements…).

There is a mechanism on wage indexation in place only for employees in the public services according to Agreement on the Basis for Wages in the Public Service (Sporazum o osnovici za plaće u javnim službama). It is concluded between the Government and trade unions of employees in public sector. Due to negative economic growth and the lack of budget resources the indexation was postponed from December 2012 to December 2013. In that way there will be no wage increase in 2013.

1.1.2 Please give the nominal increase in % as stated in the agreement

  • from 2011 to 2012 and
  • from 2010 to 2011.

In both mentioned time periods wage indexation has depended on GDP growth. According to Amendments to Annex to Agreement on Basis for Wages in the Public Service (Izmjene i dopune Dodatka Sporazumu o osnovici za plaće u javnim službama – available in Croatian on http://www.nsz.hr/sites/default/files/izmjene_i_dopune_dodatka_sporazumu_0.pdf) signed October 26th, 2011, Article III: stipulates “Signatories confirm that the basis for increase is the annual real quarterly GDP growth recorded in two consecutive quarters (measured by the arithmetic average of the two GDP real quarterly rates in two consecutive quarters) in the amount of 2 or more percent. It will be applied until the first consecutive changes in accordance with these Amendments.”

1.1.3 What was the exact period (in months) for which the pay increase has been agreed:

  • from 2011 to 2012 (for example: March 2011 – February 2012),
  • from 2010 to 2011 (for example March 2010 – February 2011)?

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

It was a calendar year but as there was no GDP growth there was also no wage increase. The duration of the mentioned Amendments was not fully clear and thus, at the end of 2012, there were extensive discussions on the issue.

1.1.4 Were there any recent debates on changing the mechanism?

There was a debate on adjusting of wages in public services with wages of employees in public enterprises that are significantly higher.

1.1.5 Were there any recent major changes to the mechanism?

On December 28th, 2012 the Government and some trade union representatives signed Authoritative Interpretation of Amendments to Annex to Agreement on the Basis for Wages in the Public Service [Vjerodostojno tumačenje Izmjene i dopune dodatka sporazumu o osnovici za plaće u javnim službama]

1.1.6 Which (economic) indicators provide the basis for discussion on the amount of increase? (This could be past inflation, expected inflation, growth of labour productivity, etc.).

GDP growth

1.1.7 Please give an estimate number of employees covered by the agreement/law.

According to the data of Croatian Bureau of Statistic “Persons in Paid Employment, by Activities”, December 2012, First Release Number 9.2.1/12 (www.dzs.hr) there is around 230.000 employees mostly in health, education and public administration covered by the mentioned document.

1.1.8 Please provide any additional comments.

In April 2009 the decision of the Government of Republic of Croatia on reduction of salaries in a larger part of public sector (education, health and public administration) for 3.1% to 5.2% was passed causing that the real amount of salaries be diminished to the level from 2007. Due to the impact of economic crisis since 2009 there has been no real increase of wages in Croatia. For example, in 2010 the average monthly paid net wage per worker has increased only 0.6% in nominal terms and decreased 0.5% in real terms. The situation even deteriorated in 2011 and 2012.

1.2 Central agreements or minimum increases set by government covering ‘the whole’ or major parts of the economy

In some countries major (cross-sectoral) agreements between social partners or minimum increases prescribed by government exist which cover either ‘the whole’ or major parts of the economy and serve as a basis for further agreements to be made at different levels. Please note that this might be but is not necessarily different from the increase in minimum wages asked for in section 3.

1.2.1 If there is such an agreement in your country, please provide the name of the agreement.

n/a

1.2.2 Who are the signatory parties of this agreement?

n/a

1.2.3 Is this agreement the basis for further agreements at lower levels?

n/a

1.2.4 Please indicate the nominal increase that was negotiated or set in %

  • from 2011 to 2012 and
  • from 2010 to 2011.

n/a

1.2.5 What was the exact period (in months) for which the pay increase has been agreed:

  • from 2011 to 2012 (for example: March 2011 – February 2012),
  • from 2010 to 2011 (for example March 2010 – February 2011)?

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

n/a

1.2.6 Were there any recent major changes?

n/a

1.2.7 Were there any recent debates or disagreements on changes?

n/a

1.2.8 Which, if any, (economic) indicators provide the basis for discussion on the amount of increase? (This could be past inflation, expected inflation, growth of labour productivity, etc.);

n/a

1.2.9 Please give an estimate number of employees covered by the agreement/law, including those through extension.

n/a

1.2.10 Please provide any additional comments.

n/a

1.3 Sectoral pace or trend setting agreements

In some countries major sectoral agreements serve as pace-setting agreements, i.e. the negotiated increases are then taken in other sectors as well.

1.3.1 If there is such an agreement in your country, please provide the name of the agreement.

In Croatia bipartite dialogue is weak. It mostly takes place at the company level and is very poor in small and medium companies. There are few sector-level agreements outside of the public sector. In Croatia political scene for collective agreements is highly fragmentised so except for the public sector there are no major sectoral agreements to serve as pace-setting agreements. There are more than 530 trade unions registered in Croatia, but five major associations cover approximately 90 per cent of trade union membership in the country: the Union of Autonomous Trade Unions of Croatia (SSSH), the Independent Croatian Trade Unions (NHS), the Croatian Trade Union Association (HUS), the Association of Workers’ Trade Unions of Croatia (URSH) and the Association of Croatian Trade Unions (Matica). The dominant employers’ organisation is the Croatian Employers’ Association (HUP), established in 1993. Despite the establishment of this formal institutional arrangement in the form of the Economic and Social Council (ESC), there remains a relatively weak culture of social dialogue (Milicevic - Pezelj, A. (2011 Annual Review 2010 on Labour Relations and Social Dialogue in South East Europe:Croatia, http://library.fes.de/pdf-files/bueros/belgrad/07858.pdf). As Šokčević (2009: 322, Mogućnosti i izazovi socijalnog dijaloga u Hrvatskoj - Potentials and challenges of social dialogue in Croatia - in Franičević V. and Puljiz V. eds. Rad u Hrvatskoj: Pred izazovima budućnosti. Zagreb: Centar za demokraciju i pravo Miko Tripalo and Pravni fakultet Sveučilišta Zagrebu) states, there exists “a deep division in values and interests between actors of collective bargaining”. This is exemplified by the trade unions withdrawing from the ESC in 2010 for six months in protest at the weak social dialogue. In their opinion, they were given a short time to study the materials sent out by state bodies and they were not satisfied with the voting procedures.

1.3.2 Who are the signatory parties of this agreement?

n/a

1.3.3 Is this agreement basis for further agreements?

n/a

1.3.4 Please indicate the nominal increase that was negotiated in the pace making-sector in %

  • from 2011 to 2012 and
  • from 2010 to 2011.

n/a

1.3.5 What was the exact period (in months) for which the pay increase has been agreed:

  • from 2011 to 2012 (for example: March 2011 – February 2012),
  • from 2010 to 2011 (for example March 2010 – February 2011)?

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

n/a

1.3.6 Which (economic) indicators provide the basis for discussion on the amount of increase? (This could be past inflation, expected inflation, growth of labour productivity, etc.);

n/a

1.3.7 To what extent was the pace-making agreement actually taken over by other sectors?

n/a

1.3.8 Were there any recent major changes to this practice?

n/a

1.3.9 Were there any recent discussions or disagreements on changing to this practice?

n/a

1.3.10 Please give an estimate number of employees covered by the pace-setting agreement and those in sectors referring to the agreement

n/a

1.3.11 Please provide any additional comments.

Following up the agreement between the Government of the Republic of Croatia, central organizations of trade unions and the Croatian Employers Association regarding the work of the Economic and Social Council (ESC), concluded at the end of 2010; on March 14th, 2011 the 162nd meeting of the ESC was held, where new ESC documents were adopted: Agreement on Establishment of the ESC, Rules of Procedure for the ESC and its Working Bodies, Decision on Establishment, Scope of Activities and Composition of the Commissions of the ESC and Decision on the Establishment of the Council for Improvement of Trilateral Social Dialogue in the Republic of Croatia. The main objective of introduction of new ESC documents was to harmonize their content with the agreement achieved among social partners and to determine precise procedures in order to create the prerequisites for the advancement of the work of the ESC its working bodies, in order to realize as much as possible a continuous, timely and cooperative harmonization of the standpoints of the Government of the Republic of Croatia, the trade unions and employers regarding issues of work and economy, social and developmental issues.

1.4 ‘Average’ of collectively agreed pay increases as evidenced in databases or surveys

1.4.1 In your country: is there a statistical source, which allows the calculation of weighted or non-weighted averages of collectively agreed pay rises across major parts of the economy? If so, please give the name of the statistical source and weblink;

n/a

1.4.2 What was the average collectively agreed increase per annum stemming from this database (from 2011 to 2012 and from 2010 to 2011)

n/a

1.4.3 How are data collected and what is the coverage of the source? (e.g.: Mode of collection: Survey or administrative register; Coverage: Full sample of all collective agreements of the country vs. only private sector agreements vs. only agreements in companies of certain sizes etc.)

n/a

1.4.4 How many agreements are included in this average figure and at which level(s) (company, sectoral, cross-sectoral) are agreements included?

n/a

1.4.5 Have the averages provided been weighted, and if so: at the basis of which factors have the weights been applied? (E.g.: employees covered vs. payrolls, vs. companies covered etc.)

n/a

1.4.6 Please provide any additional comments.

n/a

2 – Pay increases related to three sectors

This section aims to gather data on collectively agreed pay increases/pay increases set by law related to the three sectors:

  • Metal
  • Banking and
  • the Local Government.

An agreement/law can be related to the sector in 4 different ways. It can:

  • be “congruent” with the sector,
  • cover only parts of the sector (“sectional”),
  • be overlapping with the sector (i.e. covering the whole sector and more) or
  • it can be “sectionally overlapping” the sector.

Furthermore, agreements/laws may have been negotiated or set at various levels: i.e. at levels higher than sectoral (e.g. set by central government, nation-wide agreements which affect the sector, interprofessional agreements…), at sectoral level, regional level or at company level.

The aim of this section is to map the picture of pay developments within the three different sectors. We are not interested in actual wage developments, but only in outcomes of those which are either collectively agreed or determined by law (with or without social partner involvement – the latter would be particularly the case for the local government sector). For this reason, we ask ALL COUNTRIES to provide information according to the following “hierarchical” rule:

1. Is there a database which records the collective agreements for the different sectors? If such a database is available, which allows you to give an “average” of collectively agreed pay increase, please report this in the first place. If this is available, no further factsheets need to be reported.

2. In case such an “average” figure does not exist: Please report collective agreements/pay set by law in the individual fact sheets below. Maximum number of factsheets per sector: 3. Please report “the most important” ones in terms of employee coverage. Only those agreements are important in the study, where you can get hold of pay increase figures.

Examples:

1. In country X, bargaining for the metal sector takes place at sectoral level. There is only one major agreement covering the metal sector.

Please report the pay increases made in this agreement as fact sheet.

2. No database is available and in country Y, bargaining for the metal sector takes place at company level only.

 Please report the pay increases of the three most important company level agreements you can get hold of.

3. No database available and in country Z, minimum pay increases which are also related to a sector are agreed at sector level or at higher level. On top of this there are agreements for different subsectors.

 Please report (very briefly before the individual factsheets) in the first case the pay increases agreements made at higher level. Then fill out the factsheets, referring to the max. three most important agreements.

2.1 Please provide us with the main features of sector related pay setting.
 

Metal

Banking

Local Government

What's the dominant level of bargaining/pay setting in relation to the sector?

Company level

Company level

Lowest level: county, municipality and city.

Is pay set at the following levels as well?

At higher than sectoral level (for instance, also inter-professional or cross-sectoral agreements) (Y/N)

No

No

Mostly no

Sectoral level (also overlapping to other sectors or regional level agreements) (Y/N)

No

No

Mostly no

Company level (Y/N)

Yes

Yes

Lowest level: county, municipality and city

Please briefly describe the articulation of CB on wages between different bargaining levels. (For instance: Company bargaining to supplement sectoral bargaining)

Everything is determined on company level

Everything is determined on company level

At lowest level are in some cases defined rights above and more than wages in basic collective agreement for employees in local self-government.

Most important recent changes in the SECTOR RELATED collective bargaining system; please indicate whether and how those changes are related to (or the result of) the recent economic crisis; is there a trend toward decentralisation (please indicate if organised or disorganised), centralisation (or re-centralisation) of collective bargaining? What are the opinions of trade unions and employers’ organisations?

In CA employment placement through agency for temporary employment has been regulated; has been agreed that 20% of employees can be employed by fixed-term contract, in companies with better results was agreed the increase of wages according to inflation, in companies with bad result a pay cut of 10% has been agreed; anti-discriminatory measure were introduced, the severance payment for early retirement was defined.

 

In some cases higher wages were defined for employees with finished Ph.D. or Master education if this is needed and could be used for specific job.

Any further remarks.

There is a growing gap between firms with good and bad economic performance. The firms with bad economic performance are mostly in shipbuilding sector with approximately 2500 employees.

 

Territorial self-government is organized at two levels, local and regional. At the local level there are municipalities (429) and cities (126), and at the regional there are the counties (županija - 20). Zagreb as the capital and the biggest and economically the most important city has a double status as city and county. There is a permanent discussion that the number of municipalities and cities is too high and should be reduced.

2.1 Outcomes of sector related pay setting – Results from databases

If there is a database of collective agreements in place in your country, which allows to report “averages” of collectively agreed pay increases/increases set by law for the following sectors, please report them in the following table.

Database of collective agreements
 

Metal

Banking

Local Government

  • of the statistical source and weblink;
An information on signed collective agreements is available in trade union for metal (Sindikat metalaca Hrvatske) but it is not available publicly the web. It does not contain “averages” of collectively agreed pay increases. Not available

An information of signed collective agreements is available in trade union of employees in bodies of state and local self-government (S indikat državnih i lokalnih službenika i namještenika Republike Hrvatske - http://www.sdlsn.hr/) and is usually published in official document or publication of local self-government body.

It does not contain “averages” of collectively agreed pay increases.

What was the average collectively agreed increase per annum stemming from this database (from 2011 to 2012 and from 2010 to 2011)

According to the increase of retail prices increases: 3.2% in 2011 and 4.7% in 2012.   Due to the economic crisis and lack of public financial resources there was no increase in wages for mentioned employees but very often there was a reduction in the wages.

Does the data-source cover the whole sector or does it only cover parts? In case of partial coverage: what % of collective agreements is covered by the database?

     

If this information is available for all sectors, please go to section 3 (Minimum Wages) immediately.

For those sectors where no such “average” figures are available, please go to section 2.3 (Factsheets) for the respective sectors.

2.2 Outcomes of sector related pay setting: METAL SECTOR

  • In case only one agreement/law exists covering the whole sector, please report the outcome of this agreement.
  • In case more major agreements are valid FOR the sector, please report the three most important agreements and indicate at what level they have been negotiated. Please note that these might be BOTH higher or LOWEL LEVEL agreements as well.
Sector related agreement fact sheet 1 – Metal sector

Name of the agreement

Collective Agreement for Ðuro Ðakoviæ Strojna Obrada Company

Signatory parties to the agreement Main trade union representative for the company and regional trade union representative on one side and the chairperson of company management board on the other.
At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1 At the company level
Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the company due to the anti- discriminatory measure

Is this agreement linked to any higher or lower level agreements, and if so, how?

No

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

According to the increase of retail prices increases: 3.2% in 2011 and 4.7% in 2012.

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Calendar year

Have any additional lump sum payments been agreed?

Include an incentive payment, compensation for cases of overtime work, work at night, on Sundays or public holidays, the addition supplement of 0.5% of wages for each year of service, compensation for work in four-shift system. Furthermore, are stipulated all tangible benefits, like supplement for Christmas and Easter, the addition for the holiday, support for period after three months of sickness leave and in the event of disability or death, travel, per diem and field allowances, compensation for the use of private cars for official purposes.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

In the whole sector 110 contracts cover around 30,000 employees, around 90-95% of all employees in the sector. This contract covers 250 employees.

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

Not directly regarding pay, but rights for nursing and protection of maternity are incorporated.

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?  
   
Name of the agreement

Collective Agreement for Đuro Đaković Specijalna Vozila Company

Signatory parties to the agreement

Main trade union representative for the company and regional trade union representative on one side and the chairperson of company management board on the other.

At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1

At the company level

Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the company due to the anti- discriminatory measure

Is this agreement linked to any higher or lower level agreements, and if so, how?

No

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

According to the increase of retail prices increases: 3.2% in 2011 and 4.7% in 2012.

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Calendar year

Have any additional lump sum payments been agreed?

An incentive payment, compensation for cases of overtime work, work at night, on Sundays or public holidays, the additional supplement of 0.5% of wages for each year of service, compensation for work in four-shift system. Furthermore, are stipulated all tangible benefits, like supplement for Christmas and Easter, the addition for the holiday, support for period after three months of sickness leave and in the event of disability or death, travel, per diem and field allowances, compensation for the use of private cars for official purposes.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

Around 350 employees are covered by this agreement.

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

Not directly regarding pay, but rights for nursing and protection of maternity are incorporated.

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?  

2.3 Outcomes of sector related pay setting: BANKING SECTOR

  • In case only one agreement/law exists covering the whole sector, please report the outcome of this agreement.
  • In case more major agreements are valid FOR the sector, please report the three most important agreements and indicate at what level they have been negotiated. Please note that these might be BOTH higher or LOWEL LEVEL agreements as well.
Sector related agreement fact sheet 1 – Banking sector

Name of the agreement

Collective Agreement for Erste & Steiermärkische Bank d.d.

Signatory parties to the agreement Main trade union representative for the bank and sectoral trade union representative from Croatian Union of Bank and Financial Employees on one side and the chairperson of bank management board on the other.
At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1 At the level of the bank
Is this agreement linked to any higher or lower level agreements, and if so, how?

No

Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the bank due to the anti- discriminatory measure

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

Not defined

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Not defined

Have any additional lump sum payments been agreed?

Yes, like an incentive payment (stimulativni dio plaće), compensation for cases of overtime work, work at night, on Sundays or public holidays. Furthermore, different benefits are stipulated, like supplement for Christmas and Easter, the addition for the holiday, support for the event of disability or death, amount for covering travel, per diem and field allowances, compensation for the use of private cars for official purposes. The employee is entitled to the full wages for the sickness caused by the injury on the work or professional sickness.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

1700, all employees of this bank.

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

No

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?

The Erste Group Bank is one of the better positioned banks in Central and Eastern Europe, with the trends showing further development of business and strengthening its market position. In Croatia there is a significant gap in the remuneration of employees in better banks and those that are on the brink of bankruptcy.

Sector related agreement fact sheet 2 – Banking sector

Name of the agreement

Collective Agreement for Societe Generale – Splitska Banka d.d.

Signatory parties to the agreement Main trade union representative for the Societe Generale – Splitska Banka d.d. and regional sectoral trade union representative from Croatian Union of Bank and Financial Employees on one side and the chairperson of bank management board on the other
At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1 At the level of the bank.
Is this agreement linked to any higher or lower level agreements, and if so, how?

No

Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the bank due to the anti- discriminatory measure

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

Not defined

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Not defined

Have any additional lump sum payments been agreed?

An incentive payment, compensation for cases of overtime work, work at night, on Sundays or public holidays. Material benefits, like supplement for Christmas and Easter were cancelled but the 13th wage was introduced. Lump sum addition for the holiday is determined in the fix amount (HRK 5.330,00). In the case of sickness due to professional illness and injury on work employees have right on compensation equal to the amount of the wage. Solidarity support is introduced for elimination the harmful consequences of natural disasters in the amount of HRK 10.000,00. An employee who has suffered in the workplace armed robbery or robbery or attempted armed robbery or robbery is entitled to paid counselling and financial assistance in the amount of HRK 10.000,00.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

1600, all employees of this bank.

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

No

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?

The employer provides accident insurance to all his employees in amounts: death due to illness EUR7.500,00, death due to an accident EUR 15.000,00, permanent disability EUR 30.000,00. In the event of an accident caused by a raid, armed robbery or robbery in the workplace, the worker or his family are entitled to extra support in case of death of EUR 15.000,00 and in case of permanent disability EUR 30.000,00.

Sector related agreement fact sheet 3 – Banking sector

Name of the agreement

Collective Agreement for Croatian Post Bank (Hrvatska poštanska banka) d.d.

Signatory parties to the agreement The main trade union representative and the chairperson of the bank management board.
At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1 At the level of the bank
Is this agreement linked to any higher or lower level agreements, and if so, how?

No

Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the bank due to the anti- discriminatory measure

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

Not defined

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Not defined, but Collective Agreement is valid from July 2012 until the end of 2013 or with any other changes.

Have any additional lump sum payments been agreed?

An incentive payment, compensation for cases of overtime work, work at night or third shift on Sundays (increase for 50%), or public holidays (increase for 50%), and Easter (increase for 75%). Furthermore, there is an increase for work in shift (10%) and multiple shorter shift work in the morning and afternoon (dvokratno) (increase for 20%). The basic wage is increased for 0.5% for each year of employee working experience. Moreover, material benefits, like supplement for Christmas and yearly holidays as well as jubilee awards are regulated. Solidarity support is introduced for elimination the harmful consequences of natural disasters. There are some other rights like aid for education of employees’ children, additional health insurance, and loans with lower interest rate for bank employees.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

1300 persons, all employees

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

No

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?

Hrvatska poštanska banka is in the process of privatisation because currently it is owned by the state and its future existence and development is questionable.

Thus, the rights stipulated by mentioned Collective Agreement might probably be reconsidered.

2.4 Outcomes of sector related pay setting: LOCAL GOVERNMENT

  • In case only one agreement/law exists covering the whole sector, please report the outcome of this agreement.
  • In case more major agreements are valid FOR the sector, please report the three most important agreements and indicate at what level they have been negotiated. Please note that these might be BOTH higher or LOWEL LEVEL agreements as well.

Note: In the case of local government we are interested in the rate of basic pay increase for the sector, irrespective of whether it has been negotiated or set by law.

Sector related agreement fact sheet 1 – Local government

Name of the agreement

Collective Agreement for County, Municipality and City X

Signatory parties to the agreement Main trade union representative for the government body and regional trade union representative on one side, and county prefect, city mayor or city prefect.
At what level has this agreement been negotiated/pay been set? Please refer to the levels from question 2.1 At county, municipality or city level. In Croatia a system of the classification of jobs for state and so-called public officials has been adopted, mainly taking into account the criteria of the type of job and the level of qualifications of the given civil servant. Pay is determined according to the uniform system of coefficients for jobs in the civil service and in the public services, with collective bargaining about the base for the determination of salaries, paying attention to the work experience of a given civil servant and the ability to give special incentives for quality of work
Is this agreement linked to any higher or lower level agreements, and if so, how?

In some cases but not often.

Who in the sector (and possibly also beyond) is covered by this agreement?

All employees in the body due to the anti- discriminatory measure

What was the pay increase in the basic pay rate (including minimum wage rates):

from 2011 to 2012;

from 2010 to 2011?

Due to the economic crisis and lack of public financial resources there was no increase in wages for mentioned employees but very often there was a reduction in the wages.

What was the exact period (in months) for which the pay increase has been agreed:

from 2011 to 2012; (e.g.: March 11 – February 12)

from 2010 to 2011? (March 10 – February 11)

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

Mostly a calendar year.

Have any additional lump sum payments been agreed?

Differ in various contracts, but mostly include an incentive payment, compensation for cases of overtime work, the addition supplement of 0.5% of wages for each year of service, addition for a holiday. Furthermore, are stipulated all tangible benefits, like supplements for Christmas and Easter. Also jubilee awards are defined.

Were there any wage-related clauses in the agreement (e.g.: division options, revision clauses, derogation clauses etc.)?

No

How many employees are covered by this agreement within the sector? – In case extension mechanisms apply, please report the full sectoral coverage. A percentage estimate is enough!

In 50 contracts around 5000 employees, 90% of all employees in the sector.

Does the sectoral agreements incorporate any gender relevant aspects in the determination of pay?

For instance: special pay increases for occupations which are rather female dominated or amendments on pay increases during maternity leave, etc.

Not directly regarding pay, but incorporate are right for nursing and protection of maternity.

Any further remarks you might want to make or figures you might want to report (e.g. wage drift figures available)?

The intention is to realise equalisation of coefficients and baseline for wages that currently significantly varies.

3 – National minimum wages

This section aims to gather information on the developments and discussions regarding national minimum wages set by law or agreement, with respect to full adult rate and the youth rate.

3.1 What was the absolute level of the national gross minimum wage in national currency in 2011 and 2012.

In 2011 and 2012 gross amount was HRK 2.814,00.

3.2 What was the increase (in %) of the national gross minimum wage between 2011 and 2012?

No, but average wage decreases, so share of minimum wage slightly increased from expected 39%.

3.3 How many employees were receiving the national minimum wage in 2012? What was their proportion on the total workforce?

According to D. Nestić “Croatia: Moving towards a more active minimum wage policy” in in D. Vaughan-Whitehead (ed.), The Minimum Wage Revisited in the Enlarged EU, pp. 85-112, Cheltenham, UK: Edward Elgar and Geneva, Switzerland: ILO (2010); Nestić and Rašić Bakarić “Minimum Wage Systems and Changing Industrial Relations in Europe, National Report Croatia” (https://research.mbs.ac.uk/european-employment/Portals/0/docs/CroatianReport.pdf), and PHD thesis by Sanja Blažević “Socio-economic effects of minimal wage”, it can be estimated in the range from 5-8 percent of total employment what means 80 to 110 thousand employees.

3.4 Is there a national minimum wage for youth is in place in 2012? What % of the full rate is paid from what age?

n/a

3.5 How many young workers receiving the minimum wage rate for youth? What was their proportion of the total workforce from the given cohort?

n/a

3.6 Did any developments regarding the calculation/negotiation of the minimum wage rates take place in 2012?

Only discussion because both trade union and employers’ representatives describe the current minimum wage level as “low”, “insufficient for normal life” and “hardly acceptable”. However, employers, especially in the textile sector, argue that they face increasing pressure to pay higher wages for the lowest skilled and simplest jobs. They imply that a deeper commitment from the government with improved policy in this area is needed. For example, they suggest introducing a reduction in social security contribution for minimum wage workers or a provision of tax credits and in-work benefits to improve the situation.

3.7 Please describe any discussions or debates involving governments, social partners, or other relevant organisations about the national minimum wage (and the minimum wage for young workers) which took place during 2012.

The Union of Autonomous Trade Unions of Croatia (SSSH/UATUC), the largest trade union association, insisted on implementation of the current Act and expected the Legislation Committee of the Croatian Parliament, to provide a clear and indisputable explanation of the adjustment method. The second largest association The Independent Trade Unions of Croatia (NHS) proposed fine tuning of the Act in order to clarify articles that appear problematic. The NHS proposed that the minimum wage be treated as the basic wage and be subject to all the wage supplements prescribed by other laws, collective agreements and contracts. The Croatian Employers’ Association, the only employer association representative at the national level and the only one with influence on policy, had fundamental objections to the existing legislation. Essentially, they suggest that the Minimum Wage Act ought to be adapted to allow collectively agreed rates of pay in sector agreements at a level below the statutory minimum wage level.

3.8 Please provide any additional comments, if required.

For textile, wood processing and leather-footwear industry, the minimum wage is calculated by multiplying the general level of the minimum wage and the following coefficients: the first year (2008) of 0.94, 0.96 in the second year (2009), 0.97 in the third (2010) and in the fourth year 0.98 (2011). The minimum wage has become more and more important with the crisis, especially for the clothing industry. The minimum wage reached 70% of the average wage in the sector, and a third of workers are paid the minimum wage or slightly above it. In the sector where individual performance is traditionally a part of the wage, such a situation has caused problems with work incentives. The case study of a company from the sector indicates that the problem is difficult to solve, especially if financial resources to honour more productive workers are limited.

Predrag Bejaković, Irena Klemenčić, Institute of Public Finance, Zagreb; Viktor Gotovac, Faculty of Law, Zagreb

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