Podravka and Unions Reach Agreement on New Pay System

The negotiating teams of Podravka and Belupo, as well as the PPDIV Union, the Independent Union of Podravka, and the Union of Workers of the Podravka Group – SINPOD, have completed the current round of negotiations regarding amendments to the Collective Agreement of the Podravka Group on the introduction of a new pay system. Podravka is thus introducing a fairer and more modern pay system that will replace the existing tariff system dating back to 1997, as stated in the announcement. The implementation of the new pay system will begin on December 1 of this year, meaning that employees will be able to see their new pay slips in January 2024.

Under the new system, jobs will be classified according to the complexity of the workplace and into their corresponding pay grades. The gross contracted salary of employees will be able to range within the entire spectrum of the corresponding grade. Additionally, a new, higher base for calculating salary supplements for special working conditions will be introduced, as well as a higher base for calculating seniority, along with other supplements such as shift or overtime work, which is certainly the greatest benefit for employees.

Moreover, the new system provides greater advancement opportunities for employees who perform their jobs excellently, which was not possible under the previous system that was based solely on educational qualifications. It is also crucial that with the introduction of the new pay system, no employee’s salary will be reduced by even a cent, and for a large number of them, it will even increase.

– I am extremely satisfied with the agreement on the introduction of the new pay system in Podravka and Belupo because in this way we have fulfilled an important promise and obligation we had towards all employees. The existing tariff, which has created many illogical and unfair outcomes, will go down in history after 27 years of application. I want to emphasize once again that due to the transition to the new system, no one’s salary will decrease by even one cent, but I am also pleased to add that for the vast majority of employees, precisely because of the new system, salaries will increase as the new system will correct the injustices and illogicalities of the existing tariff. The starting salary level entering the new system will be the salaries resulting from the increase implemented on July 1 of this year. I thank all union representatives for their months of patient and persistent work on this very complex matter – stated the CEO of Podravka Martina Dalić.

– I am convinced that with today’s signing of the Annex to the Collective Agreement for the Podravka Group, we have found a way to resolve long-standing injustices in employee salaries arising from the previous tariff system, which has been undermined for decades, and which we, together with union members, have constantly pointed out to the employer until now. However, we have not been able to find solutions, as there was neither the will nor the determination from the previous management for such an undertaking. President Dalić recognized the importance of this problem, so in recent months we have aligned our positions, and I believe that many injustices among employees will be corrected and that the new pay system will be more understandable, fairer, and more motivating for all employees.

I am satisfied with what has been achieved, as from the next salary, the salary for July, Podravka employees will feel an increase in the base salary and gross supplement that we signed in June, and the change in the tariff model will mean positive corrections in salaries for about a third of employees, nearly a thousand of whom come mainly from Production and Logistics. It should be noted that this Annex will also change the method of calculating salary supplements, which will result in additional increases for employees who are entitled to them. I take this opportunity to thank all union members for their support and trust, as their membership in the union has enabled the representative unions that formed the negotiating team to be equal partners with the employer in negotiations on the Collective Agreement – stated Denis Paradiš, president of PPDIV Union as the head of the union negotiating team.

New employment contracts with established gross contracted salaries will be received by employees in October and November. In the upcoming period, numerous informational meetings will also be organized with the aim of further familiarizing employees with the transition to the new pay system and the possibilities it offers.