An Emerging Economy

in the Great Recession:

Croatia's Quest for

Workplace Health and Safety

Melody L. Wollan, PhD, SPHR Associate Professor of Management,

Eastern Illinois University

Foster C. Rinefort, PhD, PE, SPHR Professor Emeritus, Eastern Illinois University

Joseph A. Petrick, PhD, SPHR Professor of Management, Wright State University

Introduction

• Recent history • Yugoslavia

• European Union

• Political Instability

• Economics • Financial Crisis

• Government

• Occupational Safety &

Health

Purpose:

An overview to inform further

data collection and analysis

on management issues in this

country, including health and

safety of the Croatia workforce

ECONOMY

Overview

WWII – Market Socialism

1991 Independence

Privatization of industry & business

Exceptions

Agriculture and fishing (9.3% of holdings at end of 2001)

Tourism (21% of holdings)

Industry and mining (43% of remaining holdings).

Succession of Leadership

Pop. 4,480,000

Commitment to workers &

Western business strategy

Plitvice National Park UNESCO World Heritage Site;

16 lakes

ECONOMY

Overview

WWII – Market Socialism

1991 Independence

Privatization of industry & business

Exceptions

Agriculture and fishing (9.3% of holdings at end of 2001)

Tourism (21% of holdings)

Industry and mining (43% of remaining holdings).

Recession pressures

Increasing foreign debt, exports stable

Tight budgets

Deterioration of capital investments

Change in “tourism” to less profitable type

Succession of Leadership

Pop. 4,480,000

Commitment to workers & Western business

strategy

2010 2012

Gross Domestic Product $79 billion $81 billion

Population 4,416,000 4,480,000

Gross Domestic Product per Capita $17,500 $18,400

Change in Gross Domestic Product -6%

(from 2009 to 2010)

0%

(from 2011 to 2012)

Budget Deficit as % of GDP 2% 6%

Public Debt as % of GDP 58% 44%

Inflation 1.1% 2.3%

Labor Force 1,800,000 1,717,000

Unemployment 16% 18%

Table 1:

Principle Measures of Economic Activity in Croatia (CIA World Factbook, 2012 )

GLOBAL INFLUENCES ON

OCCUPATIONAL SAFETY & HEALTH

United Nations

International Labor Organization (ILO)

International Occupational Safety and Health Information Center

Global Program on Occupational Safety, Health, and the Environment

World Health Organization (WHO)

2009 - Global Plan of Action on Worker Health (GPA)

2010 - National workshop on worker health

United Nations Economic, Social, and Cultural Organization (UNESCO)

European Union

European Union Occupational Safety and Health system (Brussels)

European Agency for Safety and Health at Work

United States - Media & diplomatic missions

National Safety Council

International accident facts

National safety congress

OSHA - Voluntary Protection Program Participants Association

OCCUPATIONAL SAFETY & HEALTH IN CROATIA

Ministry of Health and Social Welfare

Croatian Institute for Health Protection and Safety at Work

Croatian Institute for Insurance and Protection of Workers Health

Croatian Institute for Public Health

Croatian Institute for Retirement Insurance

State Inspectorate - enforcement and statistical reports

Private Organization: National Council for Occupational Safety of the Republic of Croatia

World Health Organization Conferences (WHO)

“Health Promotion at the Workplace: The Goals and the Means”

Groznjan (2010) - WHO Collaborating Centre for Occupational Health

"Healthy Workplaces for Health Workers“

Zagreb (2011) - SEE Network on Workers’ Health - Workplace Academy

OCCUPATIONAL SAFETY & HEALTH IN CROATIA

Most Recent Data - U.S. Department of State (2009)

“…many industries often did not meet worker protection standards.”

“In 2009 the inspectorate initiated 3,316 requests for misdemeanor

proceedings covering 6,635 violations of safety standards.”

“During 2009 courts handed down 5,286 decisions for misdemeanor acts

involving work safety, a great number of which concerned cases from 2007

and 2008.”

“…of the 11,932 misdemeanor cases reported over the past few years,

4,351 have been thrown out due to the statute of limitations."

OCCUPATIONAL SAFETY & HEALTH IN CROATIA

Accident/Injury reporting factors Reductions in reporting – Threat of loss of employment

Increases in reporting - economic pressures, governmental

emphasis, reduced employer support, and decreased influences of

trade unions

Motor vehicle indications of safety & health 6120 fatalities (13.6 per 100,000 people) reported in 2010

More than triple the rate for most northern European countries.

Probable causes include: economic pressure, increased traffic, poor

roadway maintenance, and increased numbers of immigrant and

younger drivers.

MANAGERIAL IMPLICATIONS

• Croatian Agencies to support workplace health and

safety are stabilizing and adapting European Union

standards

• Mechanisms are in place now for reporting violations

• Privatization of Croatian industry has increased foreign

ownership in companies and that will increase the

influence of global standards in safety

• Building expectations for managing health and safety

(weak managerial skills by Croatians in general)

• Building infrastructure nationally will aid worker health

and safety (new roads are not just for tourists)