The conciliation process has ended successfully with an agreement on all important issues raised by workers in their demands. The union has agreed not to organise any strikes in passenger transport over the next year, except for possible industrial action in connection with collective bargaining, HZ said.

The parties agreed to improve and intensify social dialogue and that the union would be involved in the restructuring process. It was also agreed that the reliability of vehicles would be improved through joint effort.

Engine Drivers' Union leader Nenad Mrgan said he was pleased with the deal, stressing that there would be no strike on Saturday.

The restructuring plan provides for a workforce downsize from 2,100 to 1,700 workers, computerisation and modernisation. "What is important to us is that the plan will not affect only the production workers but the administration staff as well," Mrgan said.

After restructuring, the company should be capable of operating without state aid and be ready for the liberalisation of the passenger transport market in 2017. The liberalisation of freight transport begins with Croatia's accession to the EU on July 1.