MOST PARTY BENCHES IN SABOR OPPOSE CHANGES TO LABOUR ACT

ZAGREB, Feb 28 (Hina) - Most party benches in the Croatian parliament on Friday opposed government-sponsored changes to the Labour Act, estimating that they would not help boost employment and the overall economic growth. #L# The Social Democrats (SDP) and Libra supported sending the bill into parliamentary reading, the Liberal Party (LS), Social Democrats (HSLS), Democratic Centre (DC) and the Croatian Democratic Union (HDZ) advocated holding an introductory debate on the bill, the Croatian Bloc (HB) and the Croatian Party of Rights/Croatian Christian Democratic Union (HSP/HKDU) were against the bill, while the Croatian Peasant Party (HSS) and the Croatian People's Party (HNS) were undecided. Most opposition parties as well as those from the ruling coalition believe that workers' rights, severance pay and period of notice are not an obstacle to economic growth and investments in Croatia, and that changing the Labour Act should be preceded by establishing a more efficient system of social protection for workers by changing other social legislation. Most benches urge an introductory debate in parliament so that the social partners (government, unions, employers) could have more time to reach a compromise about contentious issues. The benches agreed that the Labour Act should be changed, but not by restricting workers' rights, and objected to the fact that the bill was forwarded into parliamentary procedure without the social partners having reached a consensus first. Labour Minister Davorko Vidovic said he was confident that the social partners would reach agreement, adding that an introductory debate was not necessary because it would only delay the adoption of the law. Vladimir Seks of the HDZ dismissed the government's claims that it was changing the labour legislation because it was "rigid" and to increase employment and reduce labour costs. "The main reason for unemployment is not the rigidity of the legislation but the government's false and unsuccessful economic policy," he said. The SDP bench believes that the social partners have already reached agreement about some contentious issues and wants the government to include the agreed regulations in the final bill, which the parliament should start debating as soon as possible, Mato Arlovic said. However, the bill should be voted only after the adoption of changes to other social laws, especially those defining deadlines for the completion of labour disputes and the division of funds for social protection regarding workers' restricted rights. The SDP believes that temporary employment should be an exception and that the labour act should clearly define in which cases it can be applied as well as that it can last only three years. The party also advocates the re-examination of the period of notice, i.e. prolonging it and adjusting it to severance pay, Arlovic said. The HSS opposes the parliament being given the role of an arbiter between the social partners, Luka Trconic said, adding that changes to the Labour Act were necessary but they should be in line with the country's economic potential. The Istrian Democratic Assembly (IDS) will support the proposed changes only if they take effect when Croatia is admitted to the EU, Damir Kajin said. Ivic Pasalic of the HB considers it inadmissible to adjust labour legislation with European standards without fighting corruption and bribery, implementing the audit of privatisation and reforming the judiciary first. Anto Djapic of the HSP/HKDU bench believes that the bill is not the result of a consensus between labour and capital but of compliance with the requests of the World Bank and the International Monetary Fund. Vilim Herman of Libra supported the proposal that the bill be sent into the first reading to prevent delaying its adoption. Vesna Skare Ozbolt of the DC believes that the adoption of the bill could cause instability as the government was imposing inadequate solutions. Vesna Pusic of the HNS/PGS/SBHS bench believes that the bill would contribute to rendering the labour market more flexible on condition the achieved macroeconomic trends are maintained. (hina) rml