The 2018 strike announcement threatened both tourism and Croatia Airlines, but through quality crisis communication, the challenge became an opportunity.
Inrtoduction
During the summer of 2018, at the peak of the tourist season and when it carries the largest number of passengers, Croatia Airlines – the Croatian national airline – faced a highly unfavorable situation due to the announcement of a strike (July/August). This posed a risk to regular flight operations, potentially affecting 7,600 passengers per day and causing losses of up to €800,000 daily.
Even before the strike announcement, the Croatian media had been closely following Croatia Airlines and the aviation industry in general. Despite the fact that:
- Croatia Airlines’ management was open to dialogue,
- Invited ORCA (the union) to negotiate within realistic possibilities,
- ORCA represents only 1/3 of all Croatia Airlines employees,
- 1,000 Croatia Airlines employees opposed the strike.
Challenge
To develop a crisis communication strategy and negotiation tactics for Croatia Airlines to preserve trust and reputation among stakeholders.
Our approach
The crisis communication strategy was based on the Situational Crisis Communication Theory developed by Coombs and Holladay. The crisis communication team continuously adjusted messages, channels, and tools, briefing stakeholders and media with relevant updates and directing the conversation while clearly communicating key messages at all levels.
Specifically, based on the defined models and communication approach, Croatia Airlines’ management consistently and persistently called ORCA to negotiate within realistic boundaries. Throughout the entire period, the management remained open to dialogue, even though ORCA persisted with unrealistic demands.
It is important to highlight that ORCA represents only 1/3 of all employees (pilots, cabin, and technical crew), while 1,000 Croatia Airlines employees were against the strike.
Fully aware of the consequences and high financial losses, and faced with ORCA’s final strike announcement (August 8, 2018), Croatia Airlines’ management requested a court ban on the strike from the County Court in Zagreb.
Implementation
REBUILD STRATEGY – Compensation Tactic
- Croatia Airlines’ management offered improvements to existing working conditions within realistic means.
- The judge stated: “Had their intention to sign a new collective agreement been sincere, they would have continued to negotiate in good faith and according to the company’s information.”
- The County Court in Zagreb urged ORCA to carefully consider the significance and consequences of the strike.
Stakeholders: Croatia Airlines employees, ORCA
Communication tools: Letters to internal stakeholders
BOLSTERING STRATEGY – Advocacy Tactic
Croatia Airlines consistently informed all stakeholders about the strike’s consequences and efforts to prevent it:
- €800,000 in daily losses
- Impact on over 7,600 passengers per day
Stakeholders: Croatia Airlines employees, media, Ministry of the Sea, Transport and Infrastructure of the Republic of Croatia
Communication tools: Internal letters, press releases, media briefings, statements, Q&As, official memos, meetings
Results
- A court ruling that declared ORCA’s strike illegal confirmed the importance of proactive and continuous communication with all stakeholders.
- THIS CASE SET A PRECEDENT IN CROATIAN LEGAL AND MEDIA ENVIRONMENTS.
- After the County Court in Zagreb ruled the strike illegal, the Supreme Court upheld the decision.
CROATIAN MEDIA STOPPED PORTRAYING THE STRIKE AS A BATTLE BETWEEN “BAD” CROATIA AIRLINES AND “GOOD” ORCA, AND BECAME ALLIES OF THE COMPANY.
Through direct and proactive communication that always flowed from internal to external audiences, Croatia Airlines transitioned from the “bad guy” to the “good guy,” preserving the company’s trust, reputation, and financial standing. The decisions of the County and Supreme Court became legal precedents in the Republic of Croatia.
By anticipating the consequences of the strike and providing timely warnings through targeted and clear communication with both internal (unions and employees) and external audiences (passengers, media, general public), the desired public image was achieved and the company’s reputation was preserved. All communication was also coordinated with other key stakeholders – ownership representatives – who consistently reinforced key messages.
