Public sector unions to take positon on government

The Croatian government and unions of public and civil servants agreed on Tuesday that the unions would take a position on Friday on the government's motion to cut the salaries of the 240,000 public sector employees by six per cent, to last year's level.

Deputy Prime Minister Jadranka Kosor told the press afterwards that the government would forward to the unions tomorrow draft amendments to the Collective Agreement for public and civil servants and to the Pay Rise Agreement.
According to the amendments, the base pay would be restored to last year's level and talks on salaries in public and civil services would be resumed once GDP grew again, said Kosor.
If the unions agreed to the government's motion, HRK 1.4 billion would be saved, said Finance Minister Ivan Suker.

He underlined the importance of the planned budget revision, saying it would shape the conditions under which Croatia would issue its securities abroad in April or May. He said it was essential to issue them under favourable conditions, as the Croatian economy would borrow under the same conditions, which would also affect citizens' interest rates.

Union representative Ivica Babic said the salaries of public and civil servants would not be frozen but lowered.
We want to clearly determine some indicators, including GDP, and agree on tying salaries to them, he said, highlighting the importance of relying on European Union practice.
Suker said that given the economic situation, the most logical thing would be to negotiate on pay rises when conditions allowed it, but in accordance with the economic and fiscal possibilities of the state budget.
 

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