The Metalworkers' Trade Union of Croatia – Industrial Trade Union and Đuro Đaković Holding have signed a Social Agreement following a decision on a capital increase.

With the Agreement the Union has backed the decision to sell shares and increase the capital, and has agreed to refrain from industrial action as long as the provisions of the Agreement are adhered to.

In the Agreement with the Union the Management Board agreed – in line with the Restructuring Strategy and Plan – to retain all employed workers required to implement the Strategy; to invest every effort to see the realisation of the business plan accompanied by the necessary increase in the number of employees and to wage hikes in line with the growth of the cost of living as measured by consumer price indicators; and that it would come to an agreement with the Union on the number of workers needed to realise the Strategy.

Furthermore, the Management Board agreed to work continuously towards improving working conditions and to maintain at least the current level of workers' rights.

"The purpose of changes in the Đuro Đaković Group is to ensure the sustainability of business operations, thus preserving the greatest possible number of jobs. There is no employment and there are no good working conditions without profitable business operations and, in order to achieve this profitability, we must make certain changes so as to adapt ourselves to significantly altered market conditions. In previous years we have introduced smaller and less comprehensive changes; they, however, have yielded no results. This is why we need to make more significant changes to our business operations in order to raise our competitiveness on export markets, which are our only window to additional growth and development. I am pleased that the union has recognised the importance of change and that we have signed a Social Agreement. We want to cooperate with the union and we share their desire to constantly improve working conditions, as well as to create new jobs as soon as the conditions to do so have been met. But we need to reorganise the company first and, where possible, decrease the number of employees. At Đuro Đaković I believe we can set a good example of how an agreement can be reached based on partnership on some difficult but necessary measures if they ensure the survival and recovery of the company, and lead to better conditions and new growth in the near future," said Tomislav Mazal, President of the Management Board of Đuro Đaković Holding.

"With the objective of developing social dialogue and partnership between unions and employers in the Đuro Đaković Group, the Metalworkers' Trade Union of Croatia has decided to sign this social agreement and, in doing so, send a message to potential investors that Đuro Đaković is a brand that cares about workers' rights. The Metalworkers' Trade Union of Croatia – Industrial Trade Union has members employed by Đuro Đaković Holding and subsidiary companies of the Đuro Đaković Group. Their mutual goal is to preserve jobs and promote the rights and interests of both trade union members and all other workers employed by Đuro Đaković Holding and by members of the Đuro Đaković Group," said Antun Štivić.