GOVT PLEDGES TO RESPECT COLLECTIVE AGREEMENT -- UNIONS

ZAGREB, June 11 (Hina) - Leaders of six unions of public and state services expressed satisfaction with Thursday's talks with Government representatives, because they pledged to abide by the collective agreement, despite a suggestion by the International Monetary Fund to decrease the growth of budgetary salaries. According to the collective agreement, salaries of employees in the public sector will increase by 17 per cent by the end of the year. IMF pressures to reduce public expenditure are unjustifiably turned towards public and state services, as their salaries are three and eleven per cent behind the average salary in the country, president of the Association of Croatian Unions of Public Services, Vilim Ribic, told a news conference held in Zagreb Friday. The IMF fears a 17 per cent rise in salaries in the public sector this year could cause an inflation next year, but this is no greater evil than the destruction of public and state services, Ribic added. Unions of public and state services are prepared to accept no increase of salaries if this is agreeable with employees in local self-government, monopolist public companies an the Croatian Army, who are not being pressurised into ceasing an increase in salaries, Ribic said. (hina) lml jn