CROATIAN TRANSPORT MINISTER HOLDS TALKS WITH RAILWAY UNIONS

ZAGREB, Nov 30 (Hina) - Croatia's Minister of Maritime Affairs Transport and Communications, Zeljko Luzavec, on Monday held talks with representatives of 12 Croatian Railway (HZ) unions and the head of the HZ Management, Marijan Klaric. The talks focused on the general situation in the HZ and the draft budget for 1999. Budgetary funds will be used mainly for a normal functioning of the HZ, Luzavec said. He added that money for a development programme including investments and major reconstruction projects, should be secured through foreign loans amounting to US$136 million. Requests of some unions regarding the increase of labour costs, daily allowances, company-subsidized hot meals etc. can be solved through direct bargaining with the HZ Management. However, the agreement will be possible only after the adoption of the budget, from which the HZ secures more then one half of its income, said Luzavec. The three largest HZ unions - the Union of Infrastructure, Union of Engine-Drivers and the Union of Railway Employees - said after the meeting that Luzavec had made no mention of being ready to open the bargaining about their requests. The unions called on Luzavec to attend tomorrow's negotiations in the HZ Management. The three unions expect a concrete agreement on the payment of 500 kuna Christmas bonus to HZ employees, as well as a more generous offer of the Management, which has offered a six per cent increase of labour costs for 1999. (hina) mm rml.