PUBLIC SERVICE WORKERS' UNIONS: NO TO IMF SALARY CUTS SUGGESTION

ZAGREB, June 2 (Hina) - Croatia's public service workers' trade unions have rejected an International Monetary Fund (IMF) suggestion to agree to cuts in salaries, a representative of the unions told reporters on Monday. IMF representatives, on an eight-day working visit to Croatia, on Monday reiterated their suggestion to public service trade unions to abstain from negotiations regarding a salary policy for 2000, namely on cuts in salaries for employees in the public sector, in order to avoid inflation, Vilim Ribic, president of the Coordination of Croatian Public Service Workers' Unions, told reporters in Zagreb on Wednesday. Ribic said the unions answered it was unjustified and unfair to ask sacrifices of public sector workers, pointing out public and state workers had already suffered twice considering that their salaries did not grow during the Homeland War and in the three subsequent years. Only in the past two years, thanks to a 60 percent raise, have salaries in the public sector reached those in economy, Ribic said. He explained IMF representatives believe the means necessary for a 17 percent salary increase in this year, as envisaged in the work agreement for public services, would amount to between 1.5 and two percent of the gross national product which, according to IMF estimates, will drop by two percent. IMF representatives therefore believe inflation is possible in 2000, but Ribic said the unions are not willing to give up on the 17 percent raise. If the work agreement is breached, the Coordination will sue the state, he added. The Monday meeting between the IMF and the unions was the second in a series; the first, which tackled the same subject, was held on May 25, when the unions also rejected IMF's views. (hina) ha jn