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UNIONS DECIDE TO TERMINATE NEGOTIATIONS ON CHANGES TO LABOUR ACT

ZAGREB, April 9 (Hina) - Union leaders decided on Wednesday to abort negotiations on amendments to the Labour Act since their suggestions regarding severance pay, dismissal notifications and unemployment compensation were not taken into consideration.
ZAGREB, April 9 (Hina) - Union leaders decided on Wednesday to abort negotiations on amendments to the Labour Act since their suggestions regarding severance pay, dismissal notifications and unemployment compensation were not taken into consideration. #L# The presidents of five Croatian union federations and independent unions issued a press release requesting urgent talks with Prime Minister Ivica Racan, and stressing that until this happened, they would not take part in the work of a tripartite working group in charge of harmonisation of changes to the Labour Act. Although the unions showed readiness to compromises during the negotiations, their well-argumented and rational suggestions regarding severance pay, dismissal notices and unemployment compensation were not taken into account, says the statement. At the last round of negotiations, government officials adopted quite an opposite stand, saying that the amount of severance pay, length of dismissal notices and permanent compensation for those on the dole cannot be discussed outside the framework of to what the government has committed itself with international financial institutions. Unions reject government suggestions that severance pay and dismissal notices be reduced by a half, and the highest unemployment compensation increased from the current 900 to 950 kuna. They propose that the highest unemployment compensation amount to 32% of the average salary, currently 1,250 kuna, and an extension of the right to compensation from half to four months. (hina) lml sb

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