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MINISTER: UNIONS HAVE RIGHT BUT NO REASON TO HOLD REFERENDUM

ZAGREB, May 20 (Hina) - Croatian Labour and Welfare Minister Davorko Vidovic said Tuesday that unions had the right to organise a referendum on amendments to the Labour Act, but had no reason to do so, since the loss of some of workers' rights had been compensated with accompanying laws.
ZAGREB, May 20 (Hina) - Croatian Labour and Welfare Minister Davorko Vidovic said Tuesday that unions had the right to organise a referendum on amendments to the Labour Act, but had no reason to do so, since the loss of some of workers' rights had been compensated with accompanying laws. #L# The leaders of union federations should decide on May 29 whether to organise a union referendum regarding changes to the Labour Act. Whether a general strike will be organised depends on the results of the referendum. For now four union federations have advocated holding the referendum. Union members should decide at the referendum whether to accept what social partners had agreed in amendments to the Act. "Organising referendums is in the discretion of unions and this is not disputable. But they have no reason for this because we have managed to compensate for the reduction of some rights by a set of laws," Vidovic told reporters. He said that notwithstanding the referendum, amendments to the Labour Act should soon be sent into parliament for the second reading. The new law should be adopted by July 1. Changes to the Labour Act are part of adjustment of the Croatian legislation to European standards, without which Croatia cannot access the EU, Vidovic said. Increased compensation for the unemployed will start being implemented simultaneously with the law taking effect on July 1. The labour ministry will suggest to the government that the reduced severance pay and notices be applied as of January 1, 2004, Vidovic said. He added that the reduction of severance pay would affect annually between 1,800 and 2,600 workers with more than 25 years of service, while compensation for employment would increase and encompass 100,000 more people. Salaries for workers of bankrupt companies will be paid from a fund for workers' claims. Amendments to the Penal Code would secure a regular payment of salaries. "We did a good job, so unions and employers will get a new legal environment in the economic and social sense," Vidovic said. (hina) lml sb

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