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ECONOMISTS: IT IS STILL TOO EARLY FOR REDUCTION OF WORKERS' RIGHTS

ZAGREB, June 18 (Hina) - Economic experts said on Tuesday that workers' rights in Croatia would have to be reduced with the country's rapprochement with the European Union, however, they added that it was still too early for cuts as long as the unemployment rate was 24 percent.
ZAGREB, June 18 (Hina) - Economic experts said on Tuesday that workers' rights in Croatia would have to be reduced with the country's rapprochement with the European Union, however, they added that it was still too early for cuts as long as the unemployment rate was 24 percent. #L# Job security, as poor as it may be, must not be reduced before unemployment starts decreasing, said economists, unionists and few employers who attended a round table discussion on workers rights, organised in Zagreb today by four union federations. Mate Babic of the Faculty of Economy said that reducing workers' rights would not solve any important problem because it was not workers' rights that had caused problems. Problems were caused by the wrong privatisation, which resulted in a high unemployment rate and a poor economic policy, he said. Economic expert Guste Santini said it made no sense to look for a way out of the current crisis by reducing workers' rights, as it was impossible to discuss high wages with a GDP of only USD 4,500 per capita. Vice-Premier Slavko Linic said making the market more flexible would not significantly contribute to the economic activity, but was nevertheless important in combating grey economy. Linic conceded that workers were often unable to realise their legally guaranteed rights and that privatisation irregularities had not been corrected, but he said the inefficient judicial system was responsible for that. He reminded that in the first half of its mandate the government had successfully launched pension and health reforms, improved credit conditions, and almost completely solved the problem of illiquidity. (hina) rml sb

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