Institute for International Relations

Zagreb, Croatia, 6 May 2008, 10:00 a.m. – 14:00 p.m.
Institute for International Relations – IMO

As a part of the wider project "Ljubljana Agenda for the New Phase of Stabilization and Association Process", on May the 6th 2008 the Institute for International Relations (IMO) from Zagreb, the SME's and Entrepreneurship Policy Centre (CEPOR) from Zagreb and the European Movement Serbia (EMS) from Belgrade organized a national workshop with a goal of identifying the main priorities concerning developing the competitiveness of human resources and adaptation capability of enterprises in Croatia. The workshop was supported by the Balkan Trust for Democracy – Project of the German Marshal Fund.

Some twenty local EU experts from the academic community, trade unions, employers' association, public administration institutions and think-tanks participated at this event which took place at the IMO. The discussion was focused on the necessity of developing competitiveness from the point of view of both employers and employees and in the context of Croatia's joining the EU and the globalization process. The aim was to discuss in depth the issues of investment into human capital development as a key factor in developing competitiveness; strengthening of labor market flexibility while maintaining workers' social security; strengthening of dialogue between key actors in the area of labor market (the state, trade unions, employers); implications of massive spread of employment on the temporary bases; inexistence of the clear long-term employment plans; and strengthening of connection between the labor market and education system. The purpose of workshop was to provide input for the conference "Lisbon Agenda for South East Europe" which was held the following day and which dealt with coordinated effort for faster integration of the SAP region into the EU.

The introduction into the workshop in the context of the overall project aims was given by Ms. Višnja Samardžija, PhD from IMO. The event has been moderated by Ms. Sanja Crnković Pozaić, the director of CEPOR. The speakers on specific topics which served as motivation for further debate were: Krešimir Sever, director of Independent Trade Unions of Croatia, Lidija Horvatić, MS from the Croatian Employers Association, Krešimir Jurlin, PhD from IMO, Sanja Crnković Pozaić MS, from CEPOR, Anamaria Boromisa, PhD from IMO, Vojmir Franičević, PhD from the Faculty of Economics at the University of Zagreb, Maja Vehovec, PhD from the Economics Institute Zagreb, Nevenka Čučković, PhD from the IMO and Vedran Šošić, PhD from the Croatian National Bank.

From the workers' point of view the debate dealt with the questions concerning labor regulations (especially the division between permanent employment and employment on the fixed term contract), interrelation between work and family, the role of education and interaction with the environment. The balance between professional and private life and the skills gained trough different forms of education have been identified as the key to workforce competitiveness. The lack of adequate rewarding mechanisms for education which falls short of providing the university diploma has been identified as indicator for the various difficulties (setbacks in knowledge evaluation and missing motivation for a life long learning). Well functioning institutions and efficient law implementation have also been recognized as important factors, crucial for initiating the development of competitiveness, while the lack of these factors contributes to passivity. Although Croatian companies do balance the labor market demand they are still not sending clear signals towards education system and institutions for a better planning of the future needs.

The national workshop participants agreed that desirable characteristics of an effective and competitive work force consist of: mobile work force (inside companies, between professions and activities as well as territorially); adaptability of economic actors (employers and employees); secure income in periods of transition; possibility of acquiring new knowledge and skills in accordance with changes in demand for work; and relatively low unit cost of work.

Participants agreed that in order for the workers to be more competitive they need: education system which provides a possibility for timely development of relevant skills; income security where loss of work doesn't lead to loss of all income and fall into poverty; excellent employment services which closely follow the situation on the labor market and are acquainted with employers for the benefit of the employees (both in private as in the public sector); excellent professional orientation services; health; adequate pay for the work; and security in case of death, disease and unemployment.

It has been agreed that in order for the employers to be more competitive they need: availability of trained and motivated work force; relatively low costs of employments and dismissals; quick adaptation towards changing numbers and demands of the work force; competitive price of work; and excellent mediation and human resources development services.

The workshop participants concluded that reliable statistical data is missing on the basis of which the future needs could become more predictable, the present situation estimated and the future goals identified. The spared of temporary employment has been identified as largely due to the rigidness of Croatian legislation. On the issue of competition participants concluded that competitiveness cannot be viewed as opposed to cooperation since certain level of trust represents bases of good competitive practice. The mobility and adaptability of workers as important aspects of their competitiveness have been viewed as balanced by their security which consists of both income security and employability. As for the companies, to become more competitive they need to be able to change their organizational structures, enhance knowledge and skills of their workers, acquire excellent management and be capable of innovating and creating new values. The workshop also concluded that the sector of politics needs to shift its focus from maintaining the status quo towards management of transitions.