Mrsic said the government stuck by its other proposals - canceling the Christmas bonus this year, reducing per diems from 170 to 150 kuna, and canceling length of service awards and cash grants in 2013.
The president of the Independent Union of Health Care and Welfare Employees, Spomenka Avbersek, said this union did not agree to any reduction of seniority bonus but was willing to negotiate on everything else.
The government also sticks by its proposal to put out of force an agreement these unions signed with the previous government on raising salaries as of January 1, 2013 and on a 2.4 per cent increase in salaries in the education sector as of July 1 this year.
The president of the Independent Union of Science and Tertiary Education Employees, Vilim Ribic, said there was no need or possibility to cancel the agreement, as it contained provisions on review and arbitration if an economic downturn made it impossible to enforce it. He said the unions would not agree to its cancellation.
The president of the Independent Union of High School Employees, Branimir Mihaljec, said the unions expected the government to consider compensation for all the collective agreement rights that might be reduced or rescinded.
If GDP growth is at least one per cent in two consecutive quarters, the government is willing to negotiate the restoration of some benefits, said Minister Mrsic.
He said this year's budget for public sector employees was HRK 21.6 billion and the government must not exceed it, as that would bring the state budget and Croatia's credit rating into question.
The negotiations will resume on Wednesday.
Mrsic announced the beginning of negotiations with the civil servants' unions, whose collective agreement expires on July 31, saying the government's positions in those negotiations would be the same as in the negotiations with the public sector unions.
Mrsic announced the same criteria for public companies and a review of wages in government agencies.
The collective agreement for the public sector was signed in October 2010 and expires on July 31, 2013. Negotiations began in early June. The government wants to reduce the budget for salaries in this sector by HRK 2 billion this year.
(EUr 1 = HRK 7.5)