New Collective Agreement at Croatia Airlines – Signed for Five Years

Zagreb, 12th February 2019 – The Independent Croatian Union of Aviation Employees (SHSZUZ), one of the unions affiliated with URSH, signed a new collective agreement with the employer Croatia Airlines. This concludes a period of more than two years of negotiations, during which the unions and management sought an acceptable solution for all groups of workers.

Duration and Significance of the Agreement

The new agreement is concluded for a period of five years, which is a significant change compared to previous agreements, which were signed for a maximum of two years. This move ensures a longer-term framework for labor relations and company operations.

Financial Framework and Tax Changes

The agreement is aligned with the real financial capabilities of the company. Additional room for reaching an agreement was provided by changes in income tax rules, which opened the possibility of introducing new non-taxable income. This ensures additional benefits for workers without increasing employer costs.

Extended Application of the Old Agreement

Let us recall, the previous collective agreement expired on December 31, 2016, but Croatia Airlines continued its application for the next 25 months. This preserved the existing level of workers’ social rights and avoided disruption of labor relations during a sensitive period.

Social Peace and Stable Operations

The joint position of management and unions is that the new agreement ensures social peace for a longer period. This is a key prerequisite for regular and stable operations, especially during the tourist season, when Croatia Airlines generates the highest revenues and has the highest traffic intensity.

Preparation for a Strategic Partner

The signed agreement also has strategic importance for the future of the company. It creates conditions for finding a strategic partner, which is part of the National Reform Program of the Government of the Republic of Croatia. Reaching an agreement with the unions reduces worker dissatisfaction and enables more stable development in the future.

Conclusion

The new collective agreement at Croatia Airlines represents an important step forward for workers, management, and passengers. It is expected to contribute to greater competitiveness of the national carrier, better market position, and greater passenger satisfaction, which is also the main goal in the coming years.