SO-DI-CO in Croatia

Experience – interviewing construction companies- results and issues

Vienna 17th January 2013CEA CEA and

Companies • Different regions (Central Croatia, Zagreb, nearby

town, Slavonia, coastal area)• Different sizes (large companies, SMEs, small, micro

companies)• Different core business (road-building, special

activities in construction, building designers, high-rise builders, hydro-facilities, residential construction)

• LTDs and Joint-stock companies• Time-frame: October-January

INTEREST for PARITARIAN FUNDS

• General interest shown: • Difficulties can be predicted:• - administrative barriers, not enough funds for

funds establishment, TU and EO-have no capacities, legal insecurity, red tape

• MOST INTERESTING AREAS:• -bad weather compensation, occupational

safety, redundancy severance pays , additional pensions

PROBLEMS OF THE CONSTRUCTION INDUSTRY AT THE MOMENT

• Insecurity, negative trends, ALT, unfair competition, lowest price as the only criterion in public procurement, insolvency, late payment….

• NO INVESTMENT!!!!• Dismissals, lower salaries,

lower material rights, working witout salary, bantkrupcies, NO JOBS

• Biggest Croatian Companies:

Problems connected to interviews

Problems: - lack of time (both our time, and company’s time (worker’s or management’s representative))- everybody is too busy.- too comprehensive interviews ( too long, to exhausting)- being absent from everyday duties is felt in the office/ non-project activities.- Problems getting SMEs to collaborate ( larger companies

have HR specialists, trade union’s representative, where the division of labour and tasks are clearer than in a small company where employees are more “jack-of-all-trades”.

- Companies to involved in coping to survive, to be interested in PF.

.-internal travel is not covered by the Commission.

Paritarian Funds are interesting!!!

• Why they are mostly interesting?• solidarity principle (everybody pays, those who

need-use the fund)• Standardization (severence pay-working in the

sector matters, all companies invest)• Better direct control over money invested

(participation of social partners which is not only pro forma in the Fund management)

• Treatment of issues specific for construction!

PROs and CONTRAS interview

We were happy because• Once they received us,

companies were collaborative and hospitable

• Very good team work ( TU and EO)

• General interest for the Paritarian Fund was shown by everybody

Unhappy about • Very bad standing of our

companies, who is going to survive the crisis?

• Follow-up activities?• Reduced capacities of our

sectoral associations (how can we improve and be more proactive if we are just a few)

Visiting the companies!

More pics!

Social partners in action!

Conclusions

• Establishment of an independent paritarian fund managed by the TU and EA seems like a good solution.

• Present situation is bearable, but not really adequate ( pensions- not acceptable)

• The fund should improve the benefits for both sides and provide implementation and standardization in all the companies.

• In all the areas where there is a fund, persons who were interviewed expect more obstacles (from the present fund management) than in the areas where there are no funds.

• Initial capital might be the problem, companies have less capital due to the crisis, and TU and EA are impoverished by the crisis and with few employees.

How to further promote PF

Within the project:• National event 14th March

2013 in Zagreb (Public procurement THEME)

• Possible big interview of WKO Bau representative for Poslovni dnevnik ( Business Daily)

• Video clips, TV show appearance

• Little brochures• Paid advertisment

• Later on follow-up activities:

• - new project oriented towards lobbying ?

• Twinning projects (with FIEC assistance)?

THANK YOU FOR YOUR TIME!!!