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Minister, unions sign postponement of wage indexation in public services

ZAGREB, Dec 28 (Hina) - Labour Minister Mirando Mrsic signed with public service unions on Friday a document on the credible interpretation of amendments to the supplement to the basic wage agreement, whereby the government will not have to pay HRK 1.5 billion this year to index salaries in public services to those in public companies.

Mrsic said the document explained dilemmas regarding the supplement and that he was pleased that the government and the unions had agreed the credible interpretation so quickly.

"A very tough year is ahead of us, with a lot of sacrifices, but this is a prerequisite for a growth of salaries in public services," said the minister.

Union leader Ivica Babic said that with today's signature, the public sector unions had proved their social sensibility. He recalled that public servants had given up between HRK 3.2 and 3.5 billion this year.

The document signed today eliminates the possibility of misinterpreting provisions from the basic wage agreement envisaging basic wage adjustments by 31 December 2012 and those envisaging that the indexation be postponed by the number of quarters in which GDP fell in real terms. With this document, the amendments to the agreement are not possible before 31 December 2013.

(EUR 1 = HRK 7.5)

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