ZAGREB, March 10 (Hina) - Croatia's Government on Friday proposed a decrease between 1.6 and 2.1 percent in net salaries of civil servants in next six months, but trade unions of government employees and civil servants are not
accepting the proposal for the time being. During Friday's round of negotiations on wages, the Government suggested the five percent decrease in the basic rate from 1 April to 30 September. However, by changing the act on the income tax, it will raise the non-taxable part of the income from 1,000 kuna ($125) to 1,200 kuna ($150). Thus, net income will be lower by 1.6 to 2.1 percent, i.e. by 30 kuna ($3.75), monthly. After six months, when the economic situation stabilises, there can be rises in salaries of those employees. "This proposal would enable the Government to have time for taking measures aimed at stabilisation of the situation in society," said a Deput
ZAGREB, March 10 (Hina) - Croatia's Government on Friday proposed a
decrease between 1.6 and 2.1 percent in net salaries of civil
servants in next six months, but trade unions of government
employees and civil servants are not accepting the proposal for the
time being.
During Friday's round of negotiations on wages, the Government
suggested the five percent decrease in the basic rate from 1 April
to 30 September. However, by changing the act on the income tax, it
will raise the non-taxable part of the income from 1,000 kuna ($125)
to 1,200 kuna ($150). Thus, net income will be lower by 1.6 to 2.1
percent, i.e. by 30 kuna ($3.75), monthly.
After six months, when the economic situation stabilises, there can
be rises in salaries of those employees.
"This proposal would enable the Government to have time for taking
measures aimed at stabilisation of the situation in society," said
a Deputy Prime Minister, Zeljka Antunovic. The Government and trade
unions are likely to reopen the issue of rises in income in the end
of summer.
The Government is going to discuss this suggestion with economic
trade unions today at a session of the Economic Social Council, and
will assume "the same firm stand" concerning the salaries, both
toward public companies and state-owned companies, Antunovic
added.
She said the new budget's means for the salaries were climbing by
almost 10 percent, owing to the 1999 December agreement on the 12
percent rise in salaries of government employees and civil
servants.
These unions cannot now accept the Government's proposal, said
Ivica Ihas, the head of the government employees' union. The unions
will await response of the economic trade unions to this proposal
and analyse what this could mean for relations between wages in the
country, Ihas added.
The government employees' and civil servants' trade unions
announced a warning strike for March 21 in case no satisfactory
agreement on salaries has been achieved. Antunovic, however, is
sure that there will be no strike.
"I think that the negotiations are proceeding very well and that we
shall reach agreement," Antunovic said.
The negotiations on this matter will resume on Tuesday.
(hina) jn ms