Croatia ends collective bargaining rights

Published on 18/09/2012 00:00

Croatia’s government cancelled collective bargaining agreements with public sector employees yesterday, paving the way for cuts in their benefits, despite union resistance to the plans to reform state finances.

The decision ends many of the workers’ rights and perks which dated back to when Croatia was still part of Communist Yugoslavia.

Croatia is due to join the European Union next July and wants to improve its finances to strengthen its credit rating – currently just one notch above speculative grade – as part of efforts to attract investment.

About 180,000 teachers, doctors, nurses and welfare workers will keep their benefits until 
17 December. After that, collective agreements will be renegotiated or lapse, putting an end to Christmas and holiday bonuses, rewards and other rights.

The government reportedly hopes to save 700 million kuna (about £76m) with the move.