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GOVT., UNIONS AND EMPLOYERS CONSIDER MEASURES FOR COMING 100 DAY

ZAGREB, May 12 (Hina) - The Croatian Government on Friday presented a package of measures to be taken in next 100 days in order to stimulate economic growth and create more jobs. Prime Minister Ivica Racan and his aides held a meeting with five unions' federations and the Croatian Employers' Association (HUP) to discuss those measures aimed at settling the situation in state-owned companies and changes in the tax policy. The Government will classify companies according to its share portion and subsequently assume obligations it has as a serious employer, Labour and Social Welfare Minister Davorko Vidovic announced after the meeting. Launching tax reforms, the Government will propose changes of taxes on profit and income in order to stimulate creation of more jobs and eliminate 'grey' economy, Vidovic said. Amendments to the labour legislation will be put on the agenda of the Economic and Social
ZAGREB, May 12 (Hina) - The Croatian Government on Friday presented a package of measures to be taken in next 100 days in order to stimulate economic growth and create more jobs. Prime Minister Ivica Racan and his aides held a meeting with five unions' federations and the Croatian Employers' Association (HUP) to discuss those measures aimed at settling the situation in state- owned companies and changes in the tax policy. The Government will classify companies according to its share portion and subsequently assume obligations it has as a serious employer, Labour and Social Welfare Minister Davorko Vidovic announced after the meeting. Launching tax reforms, the Government will propose changes of taxes on profit and income in order to stimulate creation of more jobs and eliminate 'grey' economy, Vidovic said. Amendments to the labour legislation will be put on the agenda of the Economic and Social Council this month, and social partners - the Government, employers and unions - would have to take many efforts to reach agreement, owing to their opposite interests, he added. Unions asked the Government to offer concrete measures for new development, more jobs and regular payment of earned salaries, said Vitomir Begovic, the Secretary-General of the Association of Independent Trade Unions of Croatia (SSSH)). Begovic claimed that "the U.S company Bechtel and the former Government concluded a contract on businesses, without clauses that domestic labour force would be employed, and therefore Bechtel is intending to employ workers from Turkey who are trained for the work on certain specific machines." The unions insisted that the Government propose to Bechtel to add a clause to the contract which will stipulate the employment of Croatian workers with the obligation of the Croatian Employment Agency to ensure additional training for such workers for adequate jobs, he said. The HUP chairman Zeljko Ivancevic predicted that the package of measures, along with reforms of tax systems and stimulation to investments, export and employment, should make it possible for the country to experience development and not only the recovery of unsuccessful companies. (hina) jn ms

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