2010 Annual Survey of violations of trade union rights – Croatia

Population: 4,400,000
Capital: Zagreb
ILO Core Conventions Ratified: 29 – 87 – 98 – 100 – 105 – 111 – 138 – 182

Organising is hampered by workers’ dependence on short-term contracts, which particularly applies to women workers, and by inefficient courts and labour inspectorates. Four workers were dismissed and one suspended during the year because of their trade union activities. The right to strike is somewhat limited. The new Labour Code allows for more labour market flexibility and liberalisation.

Trade union rights in law

Fundamental trade union rights are guaranteed though with some limitations. Workers are entitled by law to form or join unions of their own choosing without prior authorisation, and union representatives are protected against anti-union discrimination.

The constitution and law protect collective bargaining. However, the new Act on the Basis for Wages in Public Services that entered into force on 1 April 2009 endangers freedom of collective bargaining. With this new Act, the government found a way to balance its budget without unilaterally cancelling the collective agreement but still obtaining salary reductions for public services employees.

The law provides for the right to strike, with some limitations. Strikes can take place in order to promote and protect social interests of trade union members if wages have not paid during 30 days from the date on which they are due. In addition, the law limits the implementation of strikes if they were not preceded by conciliation procedures. Compulsory arbitration for determination of minimum product maintenance may be imposed in any workplace.

Trade union rights in practice and violations in 2009

Background: EU accession negotiations were unblocked in September, following an agreement between the Croatian and Slovenian prime ministers on arbitration for the border dispute. The country also suffered the impact of the economic crisis, with unemployment at its highest since 2007 (16.1%). The new Labour Code, intended to bring Croatian labour legislation in line with the European Union’s acquis communautaire, allows more labour market flexibility and liberalisation and as a consequence, the use of fixed short-term contracts is still widespread despite strong trade union efforts to partially limit the possibility of using such contracts.

Short-term contracts complicate organising: The majority of recently employed workers are on fixed-term contracts for up to three years, with some contracts being as short as three months. This situation especially affects women, with around 95% of female workers being employed on short-term contracts. Facing the threat of their contracts not being renewed, workers do not dare to form or join a union.

Justice and law enforcement – still room for improvement: The latest EU Progress Report on Croatia, while applauding the reduction in the backlog of cases, continued to note that court procedures were too long, that the enforcement of court decisions was ineffective, and that the monitoring and follow-up by the State Inspectorate and the judicial system of violations of workers’ rights remained weak. Croatian trade unions have called for the establishment of real labour courts, which could significantly expedite the resolution of labour conflicts. The reinstatement of trade union leaders remains a problem, as employers sometimes prefer to pay a fine for failure to comply with a court order than to reinstate a trade unionist.

Starco Beli Manastir tried to dismiss shop stewards: On 28 January, just a month after a branch of the Metalworkers’ Trade Union of Croatia (SMH) was established at Starco Beli Manastir, in Osijek, the company management tried to dismiss three shop stewards for economic reasons. However, since Croatian legislation requires the consent of a higher-level trade union in such situations, and the regional organisation of the SMH refused to approve these redundancies, all the activists remained employed.

Unionists dismissed in Dubrovnik: Three leaders of the Trade Union of Tourism and Services (STUH) lost their jobs because of their union activities in the city of Dubrovnik. On 17 June, Libertas Rixos d.o.o. dismissed Junuz Custovic, who had insisted that the company comply with the Labour Code (the irregularities were later confirmed by the labour inspectorate). On 2 July, the same company dismissed Elin Djapo, who had urged the company to comply with health and safety regulations. On 23 July, Importane Resort d.o.o. dismissed Stipe Matic, an experienced butcher, to discourage the other employees from becoming trade union shop stewards.

Unregistered swine flu vaccine – whistleblower suspended: On 2 October Dr. Srecko Sladoljev, the workers’ representative in the supervisory board of the Institute of Immunology in Zagreb and a member of the works council, was suspended from work. Dr. Sladoljev is also a member of the local branch of the EKN, the Autonomous Union of Power, Chemical and Non-Metal Workers. In an earlier interview, he had denounced the lack of transparency in the Institute’s decision-making regarding a purchase of swine flu vaccine, and said he thought the situation was likely to cause severe harm to both the company and the public. Concerned that the producer was accepting no responsibility for the potential undesirable effects of the vaccine, the EKN warned the owner and the general public. Dr. Sladoljev was then suspended and banned from entering the Institute premises.

source: http://www.unhcr.org/refworld/country,,ITUC,,HRV,,4c4fec8232,0.html

2009 Annual Survey of violations of trade union rights – Croatia

Population: 4,600,000
Capital: Zagreb
ILO Core Conventions Ratified: 29 – 87 – 98 – 100 – 105 – 111 – 138 – 182

Organising is hampered by workers’ dependence on short-term contracts, which especially affects women workers, and by inefficient courts and labour inspectorates. Using the pretext of European integration, the government prepared a law that would curb trade union rights in workplaces. Efforts to improve the draft before Parliament discussions, through bipartite social dialogue, have been blocked by employer organisations.

Trade union rights in law

Freedom of association: Workers are entitled by law to form or join unions without prior authorisation. The Labour Code prohibits direct or indirect anti-union discrimination. Union delegates cannot be dismissed from work, transferred or demoted without the consent of the trade union.

Right to strike: The right to strike is recognised with some limitations: strikes can only take place at the end of a collective bargaining agreement or in specific circumstances mentioned in the agreement. Compulsory arbitration for determination of minimum product maintenance may be imposed in any workplace.

Government plans on reducing trade union rights: As a candidate for European Union membership, Croatia committed to amend its Labour Code in line with European rules. However, the government has been using European integration as a pretext for making extensive legal reforms and reducing the rights of workers and trade unions. The involvement of national trade union centres in the labour law reform has been a mere formality.

The amendments, if adopted, would cause employer-controlled trade unions to thrive, impose stricter conditions on collective bargaining, and allow works’ councils to compete with trade unions’ company-level organisations.

The new law was originally scheduled for adoption at the end of the year. At the end of July, the Ministry of Economy, Labour and Entrepreneurship unveiled the proposed amendments. On 5 September, trade unions managed to strike an agreement with the employers and the government, proposing to amend the Labour Code only to the extent absolutely necessary for EU membership. Shortly afterwards, the Government submitted the original draft to the Parliament. The situation had remained in stalemate by the end of the year.

Budget overrides collective agreements: The 1993 Act on the Realisation of the Government Budget allows the government to modify the substance of a collective agreement in the public sector, if there are not sufficient funds in the budget to meet all the financial obligations arising from that agreement.

The Act on Salaries in Public Services also limits collective bargaining rights in the public sector by setting coefficients for the workplace, with the result that public sector workers can negotiate on their basic salaries only.

Trade union rights in practice and violations in 2008

Background: In April, thousands of trade unionists marched through Zagreb to demand higher wages. In November, as a response to the global financial crisis, the government proposed to freeze all salaries for a one-year period. The Union of Autonomous Trade Unions of Croatia UATUC (affiliated to the ITUC) rejected the Agreement on Social Partnership in New Circumstances, offered by the government in order to cut labour and representation costs throughout the country. The European Commission suggested that Croatia could join the European Union in 2011, but that tougher action was needed against corruption and organised crime.

Anti-union employers: Private employers in small enterprises resist union organising, as do large national and international companies operating big commercial chains. Many of these employers simply prohibit their workers from organising.

For example, the management of “Eurokabel” company in Zagreb threatens to dismiss any worker who forms or joins a trade union. Officers of the metalworkers’ trade union SMH (affiliated to the ITUC member UATUC) are not allowed to enter the company. When an SMH branch was formed at the Hidraulika d.d. company (in the town of Kutina), workers started to get dismissal threats. The employer refuses to negotiate with SMH and prevents collection of trade union membership fees. SMH filed a complaint to the labour inspectorate, but there had been no response by the end of the year.

Short-term contracts complicate organising: The majority of recently employed workers are on fixed-term contracts for up to three years, though each contract can be as short as three months. This especially affects women, with around 95% of the female workers employed on short-term contracts. Facing the threat of their contracts not being renewed, workers do not dare to form or join a union.

Slow justice: The European Court of Human Rights has been criticising Croatian court delays as excessive (the average being three years). Enforcement of court decisions, including reinstatement of trade union leaders, remains a problem. Sometimes the employer would rather pay a fine for failure to comply with a court order than reinstate a trade unionist. The trade unions have called for real labour courts, which could significantly expedite the resolution of labour conflicts.

On 20 November, the municipal court of Zagreb finally reached a decision in a five-year-old trade union case. A local branch of the Trade Union of Small Trades (affiliated to the UATUC) was prevented from operating at a particular address in Zagreb in December 2003. The trade union turned to the court for an injunction enabling the continuation of its activities. Five years on, the court stated that the plaintiff’s claim had been overruled so an injunction would be “irrelevant”. Since rules of procedure clearly stipulate that the court must decide on an injunction before examining the case on its merits, the UATUC suspects court corruption.

Iverica d.o.o. – anti-union manager convicted: The 2007 edition of this Survey reported dismissals, demotions, bullying of trade union members and obstruction of the activities of the UATUC-affiliated PPDIV trade union at IVERICA d.o.o. (city of Belovar) owned by the wood-processing giant Kronospan. The CEO, Petr Nikl, was continually harassing PPDIV and the company’s works council. Nikl has brought as many as seven anti-union lawsuits since 2005, but he has lost all of them. On 9 October, the County Court of Belovar convicted Nikl of criminal violation of workers’ rights. PPDIV then asked the county administration to withdraw Nikl’s work permit (he is a Czech citizen), so he could no longer be a CEO. At the time of writing Nikl’s work permit had been withdrawn, but he was reacting with a new anti-union campaign of intimidating workers and threatening them with plant closure.

source: http://www.unhcr.org/refworld/country,,ITUC,,HRV,,4c52caf424,0.html