New Collective Agreement for Podravka Group

New text of the Collective Agreement contains articles about trial evaluation of all workers of the Podravka Group in the year 2007 when the stated model would be tested.

After the second phase of collective negotiations, which started in April this year and lasted till September, representatives of all three unions represented in Podravka Group have signed today a new Collective Agreement with the President of the Board, Darko Marinac. This Collective Agreement applies to Podravka and its associated companies (Belupo d.d., Danica d.o.o., Poni d.o.o. and Podravka Inženjering d.o.o.).

Josip Pavić, the president of PPDIV, Martinka Marđetko Vuković, the president of Podravka’s Independent union and Marijan Slukić, president of SINPOD, have concluded that positive advancements of the new Collective Agreement bring improvement to the material status of Podravka’s workers, and do not only emphasize the increase of the base salary. Introducing such a model of company stimulation, especially individual stimulation, means moving away from the "uravnilovka" model and moving towards rewarding good and conscientious workers who will keep Podravka competitive and successful on the market.

New Collective Agreement introduces the following changes:

  • further synchronization of coefficient for unskilled workers, taking into account their years of service
  • new minimum coefficients are being introduced for workers with secondary school qualifications, postsecondary school qualifications and university qualifications
  • introducing the possibility of individual stimulation which would be paid once a year as a percentage of worker’s monthly salary for all workers who do their job adequately and thoroughly. Of course, such workers would be enabled to transfer to higher ranking jobs. It is clear that this system also predicts penalties denying workers stimulation in the form of salary percentage.

New text of the Collective Agreement contains articles about trial evaluation of all workers of the Podravka Group in the year 2007 when the stated model would be tested. During 2006 and 2007 coefficient synchronization to agreed minimum coefficients would be completed in the following order: in 2006 for workers in Production I and Production II, Logistics, Danica d.o.o. and Belupo d.d. The process includes about 1300 workers while synchronization for about 400 workers in other departments will ensue in 2007. Applying this synchronization the employer intends to improve the material status of the workers with the lowest coefficients in the range