““THE GOVERNMENT OF THE THE GOVERNMENT OF THE RoC PROTECTS ALL RoC PROTECTS ALL WORPLACES!”WORPLACES!”

March 2009 - Ivo Sanader, prime minister

November 2009 - Jadranka Kosor, prime minister

INDUSTRY UNIONSINDUSTRY UNIONSSSSHSSSH

February 2010

PLAN OF ACTION FOR THE PLAN OF ACTION FOR THE REORGANISATION OF THE REORGANISATION OF THE

CHROATIAN INDUSTRYCHROATIAN INDUSTRY

INDUSTRIAL CROATIAINDUSTRIAL CROATIA20152015

STRUCTURE OF ENTERPRISESREGISTERED IN CROATIA March 2009 (Date of the daily paper ‘Jutarnji list’ 19.05.2009)

REGISTERED ENTERPRISES 264.200NON-ACTIVE 140.184 53,1%ACTVE 124.016 46,9%0 EMPLOYEES 55.559 44,8%0-9 EMPLOYEES 33.203 42,9%9-250 14.626 11,8%250< 628 0,5%

Wages

RoC average wages 01.-11. 2009

Gross 7.704,00 (2008/12 - 7.868)

Nett 5.306,00 (2008/12 - 5.410)

12.2009 12.2008 Difference

Employed by legal persons 1.185.995 1.222.652 -36.657

Craftsmen, entrepreneurs, agriculture 237.406 259.544 -22.138

Insured agri.producer 33.806 36.777 -2.971

Employees total 1.457.207 1.518.973 -61.766

Unemployed(16,7%) 282.936 259.193 23.743

Source: HSH

Employment and wages 2009

Industry

Number of employees

12.2009

Number of employees

12.2008 DifferenceGross ages

01.-09.2009 % of RoC average

wages

Agriculture,hunting, forestry 25.270 27.662 -2.392 6.511 -15,49

Mining and extraction 8.286 8.367 -81 9.859 27,97

Processing industry 222.504 250.248 -27.744 6.603 -14,29

Electricticy and gas 16.673 11.821 4.852 9.906 28,58

Water supply; 21.390 15.166 6.224 7.389 -4,09

Construction 97.503 101.120 -3.617 6.495 -15,69

391.626 414.384 -22.758

Craftsmen, enterpreneurs 237.406 259.544 -22.138

Agri. producers 33.806 36.777 -2.971    

271.212 296.321 -25.109

Source:HSH

Services

Number of employees

12.200.

Number of employees

12.2008 DifferenceGross ages

01.-09.2009 % of RoC average

wages

Retail and wholesale 209.477 224.869 -15.392 6.511 -15,49

Transport and warehousing 65.347 66.464 -1.117 8.602 11,66

Hotel 41.717 43.461 -1.744 6.483 -15,85

Telecommunication and comm. 29.864 30.547 -683 1.191 -84,54

Financial services 37.098 36.330 768 11.525 49,60

Realer estates 4.921 4.850 71 8.133 5,57

Professional, scientific and technical activities 51.655 52.157 -502 11.195 45,31

440.079 458.678 -18.599

Public sector  

Clerical activities 31.073 32.610 -1.537 5.001 -35,09

Sated administration 105.293 104.948 345 8.766 13,79

Education 103.303 100.715 2.588 7.665 -0,51

Health 80.079 81.768 -1.689 9.006 16,90

Cultural, entertainment services 20.086 20.585 -499 8.261 7,23

Other services 14.456 14.953 -497 7.892 2,44

354.290 355.579 -1.289

Employees total 1.457.207 1.524.962 -67.755

Source:HSH

Employment and wages Employment Wages

Employed by legal persons

Number of employees

12.200.

Number of employees

12.2008 DifferenceGross wages

09.2009 % of RoC

average wages

Total 1.185.995 1.222.652 -36.657 7.808  

Processing industry 222.504 250.248 -27.744 6.703 -14,15

Food and beverages 42.547 44.901 -2.354 6.790 -13,04

Tobacco products 766 855 -89 10.603 35,80

Textile 3.819 7.177 -3.358 4.461 -42,87

Clothing industry 18.628 18.242 386 3.700 -52,61

Leather and allied products 8.038 7.729 309 3.823 -51,04

Wood processing, wood products except for furniture

9.78511.991

-2.206 4.263-45,40

Paper and paper products 3.532 4.058 -526 5.963 -23,63

Printing and xerox-copying 6.023 14.646 -8.623 7.452 -4,56

Cokes and refined crude oil products 3.535 3.622 -87 11.220 43,70

Chemicals and chemical industry products, pharmaceutical products

11.61112.204

-593 6.593-15,56

    

 

Processing industry

Source:HSH

Employment and wages Employment Wages

Employed by legal persons

Number of employees

12.200.

Number of employees

12.2008 DifferenceGross wages

09.2009 % of RoC

average wages

Rubber and plastics products 7.723 7.692 31 5.714 -26,82

Other non-ferrous and mineral products 12.06714.471

-2.404 8.0402,97

Metal products 6.055 6.456 -401 5.511 -29,42

Finished products, except for machines and equipment

24.67426.469

-1.795 6.368-18,44

Computer, electronics and optic products 6.722 

    

Electronic equipment 5.784 10.484 -4.700 8.840 13,22

Machines 11.039 14.553 -3.514 6.912 -11,48

Production of vehicles 3.3793.599

-220 7.7830,32

Other means of transport 12.123 19.132 -7.009 7.674 -1,72

Furniture production 9.277 11.308 -2.031 4.328 -44,57

Other processing industry activities 1.491        

Maintenance of machines and equipment 13.886        

Processing industry

Source: HSH

HOW WAS THE ECONOMY PROTECTED

Total number of employees decreased between 08./9-09/9 by 72.552

Out of 37.793 unemployed 31.259 come from the industry 93,7% of the employees in the industry earn less than the

Croatian average wages

WHAT HAVE WE ACHIEVED?

The government had no intention or interest to take measures so the trade unions and the employers in the industry negotiate about survival strategies

CONSTRUCTION INDUSTRY 49 companies employing 12 639 workers decreased the

wages of 4500 in agreement with the trade unions 525 workers on “waiting list” agreement on dismissal for 1400 workers announcement of another 2367 dismissals benefits of 1382 workers not paid late payment of wages for 1646 workers

METAL INDUSTRY

This year agreement was reached to cut the working week and reduce wages in 15 companies with 3678 workersin total.

ENERGY, CHEMICAL AND NON-FERROUS INDUSTRIES 2400 jobs lost during the year shorter week for 3123 workers in 9 companies decreased wages for 4313 workers in 7 companies wages not changeed for 15 214 in14 companies

WOOD AND PAPER INDUSTRY 7000 jobs lostt this year

The Act on the decrease of working time and the efficiency of the resulting measures need to be reviewd as nothing was achieved, while the subsidy funds (around 250 million kuna) have not been used.

AZ SSSH GAZDASÁGI SZAKSZERVEZETEK 2009.12.7- EI ELŐTERJESZTÉSE A KORMÁNYNAK ÉS A HORVÁT MUNKÁLTATÓK SZÖVETSÉGÉNEK (HUP)

workers were no dismissed 2010 2009 wage level was retained for 2010

STARTING POINT OF THE AGREEMENT The economic crisis and its consequences need to be defined,

systemised analysed without delay in the different branches and sectors within the frame of local and national trilateral dialogue. For companies outside without any agreement a general economic CA needs to be made to set the lowest wage level by a multiplier of 1:3,2

“

SSSH (INDEPENDANT CROATIAN TRADE UNION CONFEDERATION) AGREEMENT ON “THE STRATEGY TO OVERCOME THE CRISIS OF THE SECTOR”

monitor company norms and their efficiency revenue per employee gross wage costs cost of employees creation of a SUBSIDY FUND to help workers in need due to

the global crisis creation of a CRISIS FUND by joining national and local

instruments to help workers in the economy whose jobs are threatened

measures and incentives to protect national production urgent amendement of the act on subsidies to compensate the

decrease of the working time draft legislation on the return of the “crisis tax” to employees

and the privatisation vouchers of state companies

SSSH PARTNER ORGANISATIONS

43,64% 2,63% 56%

TU EMPLOYEES COMPANIES MEMBERS COMPANIES EMPLOYEES

PPDIV 65.300 5.000 30.000 330 55.000

SMH 82.000 12.631 20.000 202 42.377

SGH 101.000 11.934 14.000 170 30.258

FÁSOK 20.000 1.200 4.000 34 8.000

SITHŠ 9.111 1 940 1 9.111

EKN 54.000 1.299 13.000 108 43.000

TOTAL 331.411 32.065 81.940 845 187.746

INDUSTRIAL PRODUCTION

after a year of sharp decrease in October 2009 the production of the industry decreased by 8.6% compared to the previous year.

in the first 10 months of 2009 the production of the industry was 9,6% lower than a year before.

EMPLOYMENT IN CROATIA 2008

210 000

215 000

220 000

225 000

230 000

235 000

240 000

245 000

250 000

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII.prerađ ind 246 35 238 97 237 20 234 93 233 16 231 86 230 57 229 24 227 38 226 43 224 91 222 50

Employment processing industry 2009

Source: HSH

THESIS: we do not support the crisis management “model” rooted in the dismissal of workers and unpaid or decreased wages. We already saw this model at the late 1990ies when the “spontaneous” privatisation in an already tense crisis deprived workers of their rights and wages, turned the country into indebtedness and workers dependant on the budget.

Conclusion – the Croatian economy is not the problem of others, we are all sitting in the same boat!

decreasing purchasing power consequence: decreasing domestic production and GDP no surprise that stopping or holding back investments

cause major uncertainties lack of funds and creditworthiness in the economy consequence: lack of employment and wage cuts further decrease of purchasing power SPIRAL! IN THE NEXT ROUND WE WILL FALL EVEN DEEPER!

Loosing business on the horison 2009!

increasing stocks Resulting from the stop on investments major drop in the

domestic demand for durable and capital intensive goods. During the crisis in the EU there is no hope for anyone supporting our economy by importing Croatian products (the drop of Croatian export in the first 10 months was 22%).

Question of all questions: who and in which months will by domestic products?!

Industrial production of the first 10 months is10% less than in the year before

The loss of jobs, delayed payment of wages and the pressure on cutting wages erodes state revenues

the decrease of workforce in the processing industry equals the drop of the industrial production

national wages are stagnating – this means that workers provide a maximum investment in order to manage the crisis

result: dramatic fall in the domestic purchasing power this is clearly visible today – through the decreasing budget

revenues from contributions parallel with this there is an increase in the bank deposits – those

who have money see major risks and are pessimistic about the recovery of the real economy

Ignoring the role of the state in the economy

just like in the process of privatisation, none cares for the people deprived of their rights

do we have to give in again and let the remaining companies ruined?

do people have to be left without housing and income while some are contracted to paint tunnels for millions?

after dubious cases of contracting and sub-contracting within the public procurement processes we d not believe any longer in stories about market competitions and the selection processes to find the best companies

we demand from the administration that in line with the regulations and international agreements it spends a part of the purchasing power of the state on helping and saving the companies, the national producers and construction companies.

True – the state is not an enterprice but ..!

...it has to sit down with the large, medium and small businesses, trade unions and has to find the means to develop and grow companies in 2010 and to find the way to distribute the costs of crisis management not on the basis of low value of work or dismissals – this is not in the interest of the state or the economy.

Reform of the state administration and how to eliminate bribing and corruption from public utility

companies

Are public companies controlled by state institutions and far do they contribute to the achievement of the objectives of the national economy and the elimination of the crisis?

What was the investment level of public utilities and public companies 2009?

Thes companies – especially if in monopolistic position – must enforce austerity measures and efficient financing but above all they must fulfil their obligations visa vie the suppliers!

Does the government aim to increase the skills, the efficiency and the quality of state administration and do politicians have the necessary strength to achieve this? Everyone claims that the state administration is big but no one speaks about how to modernise and adapt it to the need of the companies.

Collective bargaining between the governemnt as employer and tax-payers as those who carry the

burden We demand that the government of Croatia as employer

acts according to the financial possibilities of those who fund the budget i.e. citizens working mainly in the private sector

This means that modesty and savings in the area of wages can not be expected if afterwards the funds are distributed behind closed doors in another manner

We demand to avoid any new or the increase of the existing taxes when the budget is less filled than expected

Workers expect quality services in return for the taxes they pay – we do not intend to pay a penny more for health and other insurances or other contributions

Government policies and programmes to stabilise the expectations of the people and the businesses

Respecting the rules of the market economy and of businesses, the government will enforce a ban of any speculation in the market until the first signs stabilisation of the economy, which normally follows a crisis

Will help calm down the panic of the markets (goods, labour market, capital and financial markets), guarantees at least in 2010 a partial planning for business and life and will set up measures to stimulate the economy.

Announcement of the public work crisis management package – to conribute to growthprivate capital must have the possibility to invest in infrustructure/concession/privatisation projects

announcement of the public work crisis management package to be funded either by concession or by PPP – CRISI MANAGEMENT CLUSTERS

no direct burden on the budget large infrastructure projects by the involvement of foreign funds, EU

funds main objective of the package is to retain the necessary speed of

employment and production in the sectors that are the fastest to be activated but also the fastest to be dissolved e.g. the construction industry.

we support public investments, local and regional projects which provide opportunity for different businesses and skills (maintenance of regional public road network, construction of kindergartens and schools, energy industry and water management investments).