Croatian Forests Without Management, and Management Members Without Severance Pay and Bonuses

After the meeting of Minister of Agriculture Tomislav Tolušić held on Wednesday with the Management of Croatian Forests, President Ivan Pavelić and members Marija Vekić and Ivan Ištok, an agreement was reached based on which a decision was made for the mutual termination of the employment of all current members of the Management. The Ministry of Agriculture announced on Thursday that the three-member Management of Croatian Forests (HŠ) has resigned, and Minister of Agriculture Tomislav Tolušić informed them that he has no intention of paying severance and bonuses.

Given the scandals related to the operations of Croatian Forests reported by Croatian media in recent months, the Minister’s call to the Management of the company to report directly on operations and current events is completely expected, stated the Ministry of Agriculture in a press release.

According to the contract, the President of the Management Ivan Pavelić and members Marija Vekić and Ivan Ištok have the right to a notice period of three months, or until the selection of a new Management. Along with the agreement on the mutual termination of the employment contract, Minister Tolušić informed all three members of the Management that he has no intention of paying either severance or multi-million bonuses.

By the decision of the Government on November 3, Minister Tolušić was appointed the sole representative of the state in the Assembly of Croatian Forests.

In previous months, the media reported that the Management of Croatian Forests is suing Croatian Forests because they have not been paid bonuses stipulated by the contract signed on behalf of the Assembly of Croatian Forests by the then SDP Minister of Agriculture Tihomir Jakovina. Multi-million bonuses in a state company have been deemed shameful by representatives of many parties and civil society.

After that, Jakovina stated that this management had performed well, did not have contracted severance pay and life insurance policies, so bonuses were a possible reward, but that regardless of this, he accepts the criticism and calls on colleagues to withdraw their claims. At that time, the member of the Presidency of the SDP Branko Grčić and the party president Zoran Milanović also called for the withdrawal of claims, who assessed that the bonuses in Croatian Forests were a “failure.”