Signing of the Amended Collective Agreement of the Podravka Concern

The President of the Trade Union for Agriculture, Food and Tobacco Industry, and Water Management (PPDIV), Josip Pavić, and the President of Podravka’s Management Board, Darko Marinac, signed the Amended Collective Agreement which covers Podravka and its affiliates (Belupo d.d., Danica d.o.o., Poni d.o.o., Koprivnička tiskarnica d.o.o., Ital-Ice d.o.o. and Podravka Inženjering d.o.o.).

The entire collective bargaining process which was conducted in the last four months resulted in the conclusion of the amendments to the Collective Agreement of the Podravka Concern, which include the following changes:

- increase in the base salary by 2.92%, thus, instead of HRK 1,710, the base salary now amounts to HRK 1,760, – introduction of an extraordinary bonus on the salary to the amount of 3% per month for each half-year period, provided that the realised net profit of the individual employer amounts to a minimum of 95% of the planned net profit for that half-year period, – increase in the base salary of trainees from 70% to 80% of the job complexity coefficient, – adoption of the new Tariff System which provides for the immediate corrections of the salary coefficient for workers on the lowest salaries (approx. 500 workers), while for other workers this correction will be made following the adoption of the implementation criteria and benchmarks, – increase in the one-off salary supplement per day of annual leave to which the worker is entitled within one calendar year, from HRK 95 gross to HRK 100 gross. – increase in severance payment on retirement from HRK 8,000 to HRK 10,000 – increase in the amount of cash benefit to eliminate the consequences of natural disaster or fire in the housing unit where the worker lives, from the amount of HRK 1,750 to HRK 2,000. – increase in the amount allocated for staff loyalty awards:
for 10 yrs of service, from HRK 1,000 to HRK 1,200,
for 15 yrs of service, from HRK 1,300 to HKR 1,600,
for 20 yrs of service, from HRK 1,700 to HRK 2,000,
for 25 yrs of service, from HRK 2,000 to HRK 2,500,
for 30 yrs of service, from HRK 2,200 to HRK 3,000,
for 35 yrs of service, from HRK 2,500 to HRK 3,500,
for 40 yrs of service, from HRK 3,000 to HRK 4,000, – increase in the amount of per diem from HRK 130 to HRK 150, – monthly disbursement of salary, by the fifteenth day of the month at the latest for the previous month.

The collective agreement with the above amendments shall be implemented from 1 January 2006.