ZAGREB, April 15 (Hina) - Croatian union federations will continue negotiations on amendments to the Labour Act as Prime Minister Racan and union representatives on Tuesday agreed that severance pays for workers with up to 20 years of
service would not be reduced, while a set of compensation measures would be prepared for workers with more than 20 years of service.
ZAGREB, April 15 (Hina) - Croatian union federations will continue
negotiations on amendments to the Labour Act as Prime Minister
Racan and union representatives on Tuesday agreed that severance
pays for workers with up to 20 years of service would not be reduced,
while a set of compensation measures would be prepared for workers
with more than 20 years of service. #L#
Social partners will meet on Friday to prepare a calculation of
compensation measures for senior workers, so negotiations on
amendments to the labour legislation could end next Friday, when
union representatives will meet Racan once again.
Union leaders recently discontinued negotiations on changes to the
Labour Act because the government had refused their proposals
regarding severance pays, period of notice and unemployment
benefits, stating it had to do so due to its obligations towards
international financial institutions.
The government today adopted a union request that workers'
severance pays depend on their years of service, amounting to one
third of the gross salary, thus backing down on its proposal that
workers with, for example, 10 or 19 years of service receive the
same severance pay, which the unions opposed.
With regard to period of notice, the government has stuck by its
stand that period of notice should be halved, but it has agreed to
prepare compensation measures to make up for the restriction of
this right, Independent Croatian Workers Unions leader Kresimir
Sever said.
Since the changes to the Labour Act will negatively affect workers
with more than 20 years of service, experts from the ministries of
finance and labour and union representatives should meet next week
to prepare a calculation of compensation measures for senior
workers, Labour and Welfare Minister Davorko Vidovic said.
Along with increased unemployment benefits, the restriction of
senior workers' rights would be compensated for by giving
incentives to their employers and by financially supporting the
training of senior workers and their re-employment.
Vidovic said the government would consider the unions' request that
it re-introduce unemployment contributions, to amount to 0.75% of a
salary, so the cost of compensation measures could be partially
covered.
(hina) it rml