Irena Weber (HUP): 88 percent of HUP members have raised salaries this year

The new director of the Croatian Employers’ Association Irena Weber delivered a speech at the 14th Leader’s Day of Big Plans, emphasizing that the Croatian economy is currently operating under extraordinary circumstances, first due to the pandemic, and then due to rising energy prices and rampant inflation.

‒ These global crises, which we could not plan for or directly influence, forced us to put out fires and make quick decisions to survive in the market. The government reacted excellently and, more importantly, in a timely manner to both the corona crisis and the energy crisis ‒ she said, adding that alongside these measures, it is extremely important to proceed with structural reforms and that it is necessary to relieve the economy and give it space to breathe in order to become the digital and smart economy of the future.

‒ We will not succeed overnight, but step by step, and the first step in that direction is to reduce labor costs and, in cooperation with social partners, adopt a modern and quality Labor Law ‒ Weber confirmed, emphasizing that HUP insists on this and offers concrete solutions.

Entrepreneurs push the economy forward

The director of HUP clearly stated that the association strives for a state of entrepreneurs, a state of quality and satisfied workers, and a technologically advanced state because it is entrepreneurs who create added value, push the economy forward, bring innovations, and create opportunities for employee advancement and ultimately fill the budget.

‒ We want a fiscal framework in which entrepreneurs can pay their employees well and fairly for their work, invest in education because they do not have to give an average of 42 percent of their salary to the state. This is also the Croatia of entrepreneurs, who can easily hire new employees according to market needs ‒ she stated, emphasizing that it is precisely entrepreneurs who are the key to the success of our society.

Weber presented the data that as many as 88 percent of HUP members have raised salaries this year, some even multiple times, and as she said, they hope to have enough liquidity to take advantage of the space for rewarding employees that has opened up with the government’s package of measures.

‒ Companies from HUP have, on average, raised salaries for employees by more than 10 percent this year, and salary growth would accelerate if our proposal for labor relief were adopted ‒ she highlighted, describing that the proposal includes raising the non-taxable part of personal income to five thousand kuna, reducing the lower income tax rate from 20 to 15 percent, and maintaining the higher income tax rate of 30 percent.

It is important to retain quality workers

‒ Croatia ranks fourth in the European Union in terms of reported labor shortages. In the last decade, 10 percent of the population has left our country, and never in the last 30 years has there been such an unrelenting battle for good employees in the Croatian labor market ‒ Weber said, emphasizing that everything must be done to retain quality employees in Croatia and attract those who have left to return.

To succeed in this, a modern Labor Law is needed that reflects the real state of the labor market, and as the director of HUP claims, today employees, in addition to salary levels, prioritize work methods, the place from which they work, as well as opportunities for further education and personal advancement. It is precisely here that the legal framework must help employers create conditions for their employees that will enable the realization of all their goals.

‒ The Croatia we want is a technologically advanced Croatia. It is a Croatia where the economy is competitive and does not lag behind others technologically. A Croatia where entrepreneurs can invest their profits well in new technologies, develop innovative products and services. Create. Digitalize ‒ Weber said.

A quarter of university places unfilled

She also touched on education, emphasizing that the blessing of our country is broad access to education, but she pointed out that our education system should not be a system for itself but must educate children who will become quality and satisfied employees.

‒ Recently, it was reported that nearly 11 thousand places in higher education institutions and universities remained empty. A quarter of the places are unfilled. And this has been the case for years. Why? Because outdated programs are offered for which there is no place in the labor market ‒ Weber said, presenting data that even 30 study programs do not attract a single student, while desired programs, such as IT, are overwhelmed with applications.

Just like universities, secondary schools do not change programs quickly enough in relation to market needs, so, according to the director of HUP, Croatia lacks 1,100 plasterers while only 18 are trained annually.

‒ The education system must be in daily communication with employers and respond quickly to market needs. This is a prerequisite for GDP growth, new jobs, and a better standard ‒ Weber concluded, stating that together with the government and all stakeholders, they will do their utmost to initiate reforms and that reforms will be implemented faster and more comprehensively.