Observation (CEACR) - adopted 2020, published 109th ILC session (2021)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Croatia (Ratification: 1991)

The Committee takes note of the Government’s report and the supplementary information provided in light of the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee takes due note of the information provided by the Government on measures undertaken to assist the economy and mitigate the social and economic consequences of the COVID-19 pandemic. It further notes that the Government indicates that these measures were adopted in intense dialogue with trade unions and employers’ associations and that no changes were introduced to the labour legislation. According to the Government, protection of workers and trade unions has thus remained unchanged and measures taken did not diminish the rights deriving from the Convention. The Committee also notes the information concerning the use of collective bargaining in the context of the COVID-19 pandemic, elements of which are being examined in the present comments.

The Committee had previously noted the observations of the International Trade Union Confederation (ITUC) received on 1 September 2018, according to which private and public sector employers would undermine the collective bargaining process by delaying negotiations, promoting negotiations with yellow unions and concluding agreements directly with works councils, as well as the Government’s reply thereto. The Committee requested the Government to provide details on the relationship between the companies’ working regulations and the collective agreements negotiated with trade unions. The Committee notes the Government’s assertion that: (i) according to the legislation, the employer has an obligation to consult the works council in the process of adopting the company’s working regulations; (ii) working regulations are an added value for the protection of workers, especially in sectors with low trade union density (small and medium-sized companies) where they constitute the only possibility for workers to regulate their working conditions; (iii) the existence of working regulations does not have any negative impact on the collective bargaining process and trade unions can negotiate with the employer conditions more favourable than those established in the working regulations; and (iv) according to section 160 of the Labour Act, written agreements concluded between the employer and the works council on legal rules governing employment matters do not regulate remuneration, working hours and other matters which are as a rule regulated by a collective agreement. The Committee takes note of this information. It also observes that under section 26 of the Labour Act all employers with at least 20 employees must adopt company working regulations which govern, among other things, questions of remuneration and organization of work, as well as any other issues of importance for the workers of the company, if these issues are not regulated by a collective agreement. The Committee understands from the foregoing elements that while the legislation recognizes, where these exist, the primacy of collective agreements concluded with trade unions, both agreements concluded with works councils and working regulations, subject to consultation with works councils, have a material scope which may coincide with that of collective agreements. Recalling that direct negotiation between the company and its employees aimed at bypassing sufficiently representative organizations, where they exist, may undermine the principle of promoting collective bargaining, as enshrined in the Convention, the Committee requests the Government to provide detailed information on the respective number of company collective agreements concluded with trade unions and agreements concluded with works councils, specifying in each case the number of workers covered.

Article 1 of the Convention. Adequate protection against acts of anti-union discrimination. Rapid appeal procedures. In its previous comments, the Committee observed with concern that the judicial resolution of anti-union discrimination cases was characterized by excessive delays and urged the Government to take, jointly with the competent authorities, effective measures to significantly accelerate the judicial proceedings in cases of anti-union discrimination. The Committee notes the Government’s indication that, at the beginning of 2019, there were 20 pending and seven new civil cases related to anti-union discrimination, out of which eight were resolved during the year (one proceeding lasted up to 12 months while seven lasted more than a year). As a result, there were 19 unresolved cases related to anti-union discrimination at the end of 2019. The Government also states that the amendments to the Civil Procedure Act adopted in 2019 aim at harmonizing case law and will contribute to dispute resolution. The Committee trusts that the 2019 amendments to the Civil Procedure Act will contribute to significantly accelerating judicial proceedings in cases of anti-union discrimination and requests the Government to continue providing information on the average duration of the resolution of anti-union discrimination cases.

Articles 4 and 6. Collective bargaining of public servants not engaged in the administration of the State. In its previous comments, the Committee requested the Government to provide updated information on the collective agreements negotiated and signed in the public sector, and to indicate whether the 2 per cent increase in wages of civil and public servants since 2017 was the result of collective bargaining. The Committee notes that the Government indicates that all civil servants (workers employed in the State administration at the central, local and county levels or in other State bodies established to render a civil service) and public servants (workers in State-financed public services both at the central or local levels) are covered by collective agreements. The Government further mentions that, in addition to a basic collective agreement applicable to public servants, specific agreements were concluded in the following sectors: social care; health and health insurance; elementary schools and high schools; science and higher education; cultural institutions financed from the State budget; the Croatian Employment Service and the Croatian Pension Insurance Institute. The Committee welcomes this information and further notes that 83 collective agreements were concluded with the municipality, the town or the county as one of the parties and that most of the state-owned companies are also covered by collective agreements.

As for the 2017 increase in wages, the Committee notes that the Government clarifies that while the increase for civil servants was agreed to in a collective agreement, the raise for public servants was determined by a special Decision based on the Act on Salary Base in Public Services, since there was no agreement between the Government and the unions in the public sector. The Government further indicates that: i) at the end of 2018, an additional increase in salary was agreed to in collective bargaining agreements for both categories of workers; (ii) in 2019, trade unions representing civil and public servants agreed to a further increase in salaries for 2020; (iii) in the context of the COVID-19 pandemic, trade unions in public services agreed to conclude an Annex to the Basic Collective Agreement which states that the increase of the basic salary will be postponed to 2021; and (iv) trade unions in the civil service also agreed to the same postponement in their collective agreement.

The Committee takes due note of this information and invites the Government to continue to encourage collective bargaining in the public sector, especially for public servants not engaged in the administration of the State, including with respect to remuneration.

The Committee is raising other matters in a request addressed directly to the Government.