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Zlatko Sirovec
Episode · #274

RITAM POSLA Zlatko Sirovec

Guest Zlatko SirovecHosted by Lidija KiseljakMay 3, 2026
About this episode
What you'll hear in this conversation

Tehnika, once a giant in Croatian construction, found itself on the brink, not just because of market shifts, but also due to its own past choices—like a 'social policy' that avoided layoffs even when losses mounted. Zlatko Sirovec, the company's CEO, recounts the two-year 'agony' of a pre-bankruptcy settlement, comparing it to 'a sour apple' they had to bite. His perspective on why a company of Tehnika's stature almost collapsed, and how it's now attracting international investors, offers a stark look at the consequences of delayed adaptation in a volatile industry. This conversation goes beyond financial restructuring. Sirovec details the ripple effects of national economic policy—from the 2008 crisis to the Agrokor collapse and the devastating earthquake aftermath—on a major construction player. He is candid about the current state of Croatian construction, particularly the severe labor shortage, and the unexpected solutions companies are forced to pursue. Readers will consider how long-term loyalty can become a liability without flexibility, the surprising opportunities that emerge from near-collapse, and the often-unseen global forces that shape local labor markets.

Insights from the conversation
What to take from this episode
01
Tehnika, a large construction firm, delayed entering pre-bankruptcy proceedings, unlike many others who used the law early. Sirovec likened their situation to dinosaurs: "We were big, we were slow and inflexible, and we couldn't adapt. It's like they say about dinosaurs, they were big and died out because they couldn't adapt." A company's size and past success can become a liability if it resists adapting to new market realities and legal frameworks. The longer you delay a necessary but painful restructuring, the deeper the hole becomes.
02
Tehnika's crisis wasn't a single event but a cascade: the 2008 downturn, a "social policy" that avoided layoffs, the Agrokor collapse costing 86 million kuna, then the unjustified termination of a contract in Algeria, leading to over 10 million euros in protested guarantees and a blocked bank account. Even a large, established business can be brought to its knees by a sequence of external shocks if internal rigidities prevent swift adaptation. A blocked account is often the final trigger for a forced, systemic restructure.
03
After the pre-bankruptcy settlement concluded, Tehnika saw a surge of interest from strategic partners—Chinese, Germans, Canadians, Australians, and even Croatian firms. These investors had approached them before, but "a veil of possible bankruptcy" had prevented serious negotiations. External capital often waits for formal resolution of financial distress. Until the legal uncertainty is removed, even strong operational potential struggles to attract serious investment.
04
Sirovec initially opposed the pre-bankruptcy law, viewing it as "unfair to small entrepreneurs who lose a significant part of their funds." Yet, he now sees its necessity for large, slow companies like Tehnika, suggesting only refinements to prevent excessive write-offs. A leader's initial principled opposition to a legal framework can give way to pragmatic acceptance when it becomes the only viable path to survival. The tool itself is less important than its effective, and fair, application.
05
Croatia's past quota system for foreign workers prioritized "more masseurs and shepherds than carpenters and bricklayers," according to Sirovec. Now, even with a quota-free regime, skilled workers from the region are gone, forcing companies to import from Bangladesh, India, Nepal, and the Philippines. Misguided labor policies, even those intended to protect local jobs, can have lasting, detrimental effects on an entire industry. Once skilled labor emigrates, the market is forced to find talent in increasingly distant and disparate pools.
06
The new foreign workers come with challenges: lower skill levels, language barriers, and the need for one English speaker per ten workers to facilitate communication. Sirovec laments the loss of "those workers who, when we sent them for a beam or a plank, would go and bring it." Importing labor from distant countries introduces new operational complexities and costs—from training to communication—that directly impact productivity and project timelines. The ideal workforce cannot be easily replaced once lost.
07
The massive post-earthquake reconstruction in Zagreb and Banovina, funded by 86 billion kuna from the Croatian New Deal, will last "twenty years, even more," Sirovec predicts, citing Italy's Aquila reconstruction as a precedent. Large-scale national recovery projects, even with significant funding, are multi-decade endeavors that will require sustained commitment and a stable workforce for decades. This is a marathon, not a sprint, for the construction sector.
08
The need for foreign workers has created a new business sector: "a branch of people who import these workers and who also earn solid money." When a critical market deficiency arises from policy failures, new intermediary industries emerge to bridge the gap, adding another layer of cost and complexity to the original sector.
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