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Sanader says salaries in public sector may rise by 5 pct in real terms as of next year

ZAGREB, Aug 3 (Hina) - Salaries in the public sector may rise by five percent in real terms as of January 1, 2007 and it is the government's policy that they cannot grow faster than GDP, Prime Minister Ivo Sanader said after meeting representatives of trade unions and employers on Thursday.
ZAGREB, Aug 3 (Hina) - Salaries in the public sector may rise by five percent in real terms as of January 1, 2007 and it is the government's policy that they cannot grow faster than GDP, Prime Minister Ivo Sanader said after meeting representatives of trade unions and employers on Thursday.

The wage policy in the private sector can be regulated with the adoption of a law on minimum wages, Sanader said after talking to representatives of trade union federations and the Croatian Association of Employers.

But if Croatia wants to be competitive, salaries must not grow faster than GDP, as agreed with the social partners and the academic community two years ago, the PM said.

The proposal on the law on minimum salaries will be considered seriously in coming months and the government will discuss a new law on privatisation at its next session in September, the PM said.

"The government and I insist on introducing the employee stock ownership plan, and this is not a return to self-government but the best model of stimulating workers used by the most developed countries in the world, such as the USA," the PM said.

The government today also discussed amendments to the Law on Minor Offences and the Law on Civil Procedure and agreed that the Justice Ministry should prepare data on the number of ongoing labour disputes because the statute of limitations has expired for an increasing number of such disputes, said the leader of the Association of Workers' Trade Unions of Croatia, Boris Kunst.

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