The main determinant of the labor market in Croatia is the constant reduction of the work force as an effect of negative democratic changes. In addition, a main definition for unions would be that union is an organization created by employees for improving and maintaining jobs and wages. Since the end of the twentieth century, Croatia has changed the Labor Law many time as the most important act which regulates employment in the country. Most of these changes did not have a significant impact on the flexibility of the Croatian labor market, as they primarily concerned the harmonization with the acquis communautaire. The process of Croatia's accession to the European Union continues to lead Croatia towards greater labor market flexibility. The strategies so far are mostly short-term agreements that need to be further developed, which is a challenge for trade unions. Trade unions need to improve collective bargaining by providing clear strategic guidance for action-oriented governments and employers.