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CROATIAN ECONOMIC SOCIAL COUNCIL ADOPTS A DRAFT SOCIAL DEAL

ZAGREB, Oct 18 (Hina) - Representatives of the Croatian Government, employers and unions on Wednesday endorsed a draft of a social agreement and proposed to the Government to postpone a final decision on amendments to the final draft bankruptcy act. During Wednesday's session the Economic Social Council (GSV) adopted the draft document entitled "The Partnership for Development," which contains a basic agreement and four appendices on a salary policy, tax policy, economic measures for stimulation of employment and amendments to labour taxation. The adopted draft document has been forwarded to social partners to consider it and elaborate in the coming month so that a final draft agreement should be prepared for signing by 24 November. Today the social partners again failed to agree on the issues about the social peace and on how long the agreement should be in effec
ZAGREB, Oct 18 (Hina) - Representatives of the Croatian Government, employers and unions on Wednesday endorsed a draft of a social agreement and proposed to the Government to postpone a final decision on amendments to the final draft bankruptcy act. During Wednesday's session the Economic Social Council (GSV) adopted the draft document entitled "The Partnership for Development," which contains a basic agreement and four appendices on a salary policy, tax policy, economic measures for stimulation of employment and amendments to labour taxation. The adopted draft document has been forwarded to social partners to consider it and elaborate in the coming month so that a final draft agreement should be prepared for signing by 24 November. Today the social partners again failed to agree on the issues about the social peace and on how long the agreement should be in effect. Therefore, two proposals of the each partner will be forwarded to the public for discussions. Trade unions are willing to guarantee the social peace as long as the agreement's provisions are honoured and to solve open issues by dialogue and arbitration, but they are not willing to give up their right to industrial action, including strikes. Employers ask them to abandon industrial action as long as the agreement is in force and to solve problems only through social dialogue and arbitration. Unionists propose the agreement should last for one year, while employers would like to have it for three years. Since the three partners could not settle contentious issues about the new bankruptcy act, the Government was asked to postpone the adoption of the final draft for one week. Unions did not accept the order of priorities for paying claims in the bankruptcy procedure, which the Government suggested. According to the Government, costs of this procedure should primarily include gross salaries for three months and refunds for employees, while the costs would not include redundancy cash so that companies will be able to have bankruptcy procedure with re- organisation and thus with the possibility of saving jobs. Unions, however, insist that all claims of employees, including layoff payment, should be first paid. (hina) ms

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