MIMICA: SAA DOES NOT BIND CROATIA TO CHANGE LABOUR ACT

ZAGREB, Nov 26 (Hina) - The Stabilisation and Association Agreement signed between Croatia and the European Union does not bind Croatia to deregulate its labour market by changing its Labour Act, European Integration Minister Neven Mimica said at a meeting with the president of the Association of Independent Workers Unions of Croatia (SSSH), Davor Juric. By signing the SAA, Croatia did not bind itself to immediately adjust its labour legislation to that of the EU, Mimica told Hina, adding the adjustment of labour legislation was a requirement for full EU membership. Changes to the Labour Act are not a priority in a six-year long period of adjustment to the European legislation and the SAA therefore cannot be the justification for quick changes in the labour legislation, Mimica said. SSSH president Davor Juric said changes to the Labour Act reducing the period of notice and severance pays were not a precondition for Croatia's admission to the EU at all. "The talks we have held with Deputy Prime Minister Goran Granic, Labour and Welfare Minister Davorko Vidovic and the director of the Croatian Employers' Association, Zeljko Ivancevic, show that our arguments against changes to the Labour Act have been accepted and the deregulation of the labour market is currently no longer considered," Juric said. Juric and Mimica agreed that elements of the European legislation which are favourable for Croatian workers should be integrated into domestic labour legislation while those less favourable should be postponed until Croatia is a full EU member. (hina) rml