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HIGHER SALARIES AND CHRISTMAS BONUSES FOR 11000 EMPLOYEES OF AGROKOR

The tariff part of Agrokor's Collective Agreement was signed today by Ivica Todorić, President of the Agrokor Group, Ana Knežević, President of the Union of Trade of Croatia and Josip Pavić, President of the PPDIV Union (Union of workers in the agricultural, food, tobacco and water management industries). The Agreement signed will improve the material rights of 11000 people employeed in Agrokor companies. As of December 1, 2003, the salaries will rise by 5%, and the Christmas bonus by 36% to Kn 1,200. "Agrokor signed its first Collective Agreement with the Unions in 1996. Already at that time we established a strong communication with our Union partners and developed an enviable level of social dialogue, making a good foundation and a firm basis for the unstoppable development of social partnership. Today we are witnessing a day-to-day growth of our company, and with its growth the rights of our workers have continuously been growing as well", Ivica Todorić, President of the Agrokor Group said, adding that Agrokor's success were its satisfied employees headed by a good management and a proper business strategy. "We expect the social partnership to keep developing and improving to the satisfaction of both social partners, in view of the fact that trade/retail is a service industry and the service quality immediately depends on the satisfaction of its employees. From Konzum we expect not only to be the biggest national retail chain, but also to lead the way in meeting the positive provisions, creating a new company culture, a new consumer culture and a new, respectable social partnership where each worker will be part of a large system and each individual's work will be of major importance for the quality and profitable business of such system", Ana Knežević, President of Croatia's Union of Trade pointed out appreciatively upon signing. Pleased with the Agreement signed was also Josip Pavić, President of the PPDIV Union, stating that by the successful completion of negotiations and signing the Agreement the high-grade social dialogue has been continued, and such progress indicates an employer of high social awareness, who knows that a satisfied worker is a good worker! Having in mind the existing level of other material rights, such as the additional health insurance policy for all 11000 employees of the Group, Pavić points out that the relations and cooperation of Agrokor and the PPDIV Union can be compared to the level of successful social dialogue in Europe.