PRIME MINISTER, UNIONS TO TRY TO BREAK DEADLOCK OVER SALARIES WED

ZAGREB, Dec 5 (Hina) - Croatian Prime Minister Ivica Racan will meet union representatives on Wednesday and try to break the deadlock over salaries and collective agreements in the public sector and public companies which prompted the unions to threaten to go on strike and stage protest rallies, union circles said on Tuesday. Racan and his closest associates should meet the leaders of five union federations and unions of the public sector and public companies before the Economic-Social Council (GSV) holds a session, GSV president Vitomir Begovic said. The Prime Minister and the unions will try to reach an agreement about the policy of wages in the public sector. The unions have announced a one-day strike of warning for Friday, December 8 due to the government's refusal to accept their request that basic salaries in the public sector be increased by 8.5 percent. The two sides will try to reach a compromise about a government conclusion under which salaries in public and state companies should be reduced to last year's level. The unions demand that the government withdraw the controversial conclusion or they would go on strike. The unions of the public sector and public companies have accused the government of breaching their collective agreements with the said conclusion. (hina) rml