ZAGREB, April 18 (Hina) - The Croatian Employers Union (HUP) on Friday interrupted negotiations on amendments to the Labour Act because the government yielded too much to workers' requests. The government and unions claim that HUP's
decision is unfounded.
ZAGREB, April 18 (Hina) - The Croatian Employers Union (HUP) on
Friday interrupted negotiations on amendments to the Labour Act
because the government yielded too much to workers' requests. The
government and unions claim that HUP's decision is unfounded. #L#
HUP's chief reason to end negotiations is that the government
agreed to change a motion regarding severance pay in case of a
dismissal, at the request of the unions.
PM Ivica Racan and the leaders of union federations agreed that
severance pays for employees with up to 20 years of service would
not be decreased, while for older workers part of the rights they
lose will be compensated.
HUP director Zeljko Ivancevic told a news conference Friday that
due to this agreement, the amount of severance pay, in comparison to
the existing law, would only be slightly reduced.
The HUP believes that the moved amendments to the Labour Act were
merely skin-deep and would not positively influence the Croatian
economy.
Seen as elections are drawing closer, while debating the Labour Act
MPs will care more about the votes of the electorate and less about
the economy's competitiveness, securing conditions for
investments and the creation of new jobs, HUP believes. The
association suggests that the reform of the labour legislation be
carried out after elections.
Ivancevic said that most European countries were planning to soon
initiate a reform of the labour legislation with the aim to make
working relations more flexible, which could spur Croatia to do to
same.
Government and union representatives said HUP's decision to end
negotiations was unfounded, and claimed that nothing which social
partners had agreed on had been abandoned.
(hina) lml sb