UNIONS INVITED TO CONFER BEFORE PROTESTING

( Editorial: --> 7282 ) ZAGREB, 26 Jan (Hina) - President of the Economic-Social Council (GSV) on Monday called on trade unions, which announced protests because of the bad effects of Value Added Tax (VAT) and the poor economic and social situation in Croatia, to try and resolve problems within the framework of the GSV. The GSV is a tripartite body whose members are representatives of the Croatian government, employers and trade unions. President of the GSV Zeljko Ivancevic sent a letter to the president of the Association of Independent Trade Unions of Croatia (SSSH), Davor Juric, and president of the Association of Workers' Unions of Croatia (URSH), Boris Kunst, saying that because of the seriousness of the economic and social siuation in the country, one should have tried to solve all questions and problems that need attention in cooperation with social partners in the GSV. Ivancevic, who represents the Croatian Employers' Association in the GSV, said he believed the problems which prompted the unions to call the protests were very serious and should be solved without postponement. The SSSH has called the "warning" rally, which is expected to gather between 2,000 and 3,000 unionists, for 29 February. The protest should take place in front of the Government and Parliament buildings in Zagreb. According to its president Davor Juric, the SSSH was organising the rally beacuse every social dialogue had been blocked, especially in the Economic-Social Council. The SSSH is asking for the increase of the non-taxable part of wages, the reduction of the VAT rate from 22 per cent to 18 per cent, and the introduction of zero tax rate on food, books, children's food and medicine. According to data provided by the SSSH, in the first three weeks of VAT, the costs of living have increased by four per cent. Highlighting that at the end of 1997, 46,000 jobs had been closed and that there were 300,000 unemployed, the SSSH asked for a new investment cycle to be set in motion to help solve the unemployment problem. The Association of Workers' Unions of Croatia, which also received a letter on Monday from the GSV president, last week initiated the formation of a committee for the preparation of a protest meeting against VAT. The objective of this protest is the same: highlight the bad effects of VAT and poor economic and social situation. About 30 representatives of trade unions, opposition parties and citizens' associations have entered the committee so far. The committe will set the date and place of the protest on 28 January. The president of the URSH, Boris Kunst, expects that between 50,000 and 100,000 people will come to the protest which should be organised in February. Representatives of the Croatian Employers' Union have also called for the VAT percentage to be reduced on foodstuffs. The president of the Food Industry's Employers' Union, Dragutin Barisic, announced last week that many companies from the sectors of food industry, agriculture and forestry, would have to take out loans to pay VAT, which means they will end this financial year with a loss of between seven and 10 per cent. A representative of the Traders' Union expressed dissatisfaction with the Croatian Government intervening without consulting the Employers' Union when it comes to prices. (hina) mm mrb 261928 MET jan 98