Dalekovod: Restructuring Does Not Mean Salary Reductions, It Is About Changing the Tariff Model

Dalekovod production reported on Friday that restructuring is underway and that only the complete implementation of the restructuring plan guarantees the company’s self-sustainability and preserves jobs, with potential for future growth. The management stated in a press release, which also addresses the announced strike, that the restructuring of the company is ongoing, which, as an independent company with 580 employees, participates with 19 percent in the total sales revenue of the Dalekovod group.

The union at Dalekovod production announced at today’s press conference that it will soon initiate a strike due to the non-signing of a new collective agreement and the reduction of workers’ rights. They urged Prime Minister Andrej Plenković to wake up and react to the exploitation of workers.

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At the press conference, the president of the Dalekovod Production Union and representative of the workers on the Supervisory Board, Ivica Bajlović, explained that negotiations with the newly appointed CEO Gordan Kolak regarding the new collective agreement were unsuccessful, and Kolak announced termination of employment contracts for all 580 workers along with offers of new contracts with significantly reduced rights.

On the other hand, Dalekovod production emphasizes in its statement that “the restructuring is being carried out with the aim of optimizing production processes and ensuring a more competitive position in the global market where Dalekovod as a group has been achieving very good results for a long time.” They also note that the employer has done everything to retain all workers during the restructuring process, and the priority in the process is to align salary levels with the company’s capabilities.

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“Restructuring does not mean linear salary reductions, but rather a change in the tariff model that will allow knowledge, efficiency, and results of each individual employee to be adequately rewarded, while the most vulnerable groups of workers and their earnings remain protected,” the company emphasizes.

They add that other rights from the previous collective agreement, such as Christmas bonuses and vacation allowances, are not being abolished, but their payment will be linked to results based on very clearly defined rules.

“Only the complete implementation of the restructuring plan guarantees the self-sustainability of the company and preserves the jobs of employees with potential for future growth, which can only be achieved through cooperation between workers, social partners, and management to fulfill common goals,” stated Dalekovod production.