Decent work is directly connected with the regular payment of salaries and regular payment of taxes and contributions, and the situation in this area has been deteriorating due to the crisis, the leader of the Independent Croatian Trade Unions (NHS), Kresimir Sever, told the round table debate.
Unfortunately, a considerable number of workers are willing to tolerate the nonpayment of their salaries in the fear that they may lose their jobs, and the level of overdue liabilities is now higher than it was in 1999, when the situation was alarming, Sever said.
According to figures released in August, outstanding liabilities amounted to HRK 31.9 billion, including HRK 12.7 billion of outstanding taxes and contributions.
According to Sever, a wave of bankruptcy proceedings can be expected.
In the first half of 2010, 500 bankruptcy requests were filed, which is more than in the entire 2009, the unionist said.
Currently 700 cases of bankruptcy proceedings are under way, and most of them will end in the liquidation of ailing companies rather than in their restructuring, he said.
The Croatian Employers' Association (HUP) does not support employers who fail to pay salaries or taxes and we hold them to be disloyal competition to serious employers, HUP deputy director-general Bernard Jakelic told the round table discussion.
He called on workers to settle their problems with their managements rather than resorting to protests and public rallies.
World Bank lead economist Jan Rutkowski warned about problems plaguing the Croatian economy and affecting the position of workers, such as high labour costs which generate poor competition in comparison to countries such as Hungary and the Czech Republic.
In addition, a high share of the working-age population is not active on the labour market, which is linked with the lack of adjustment of workers' know-how to the needs of the labour market, he said.
Croatia is also facing a fast aging of the population and labour force, so it must not tolerate low labour participation because it will lead to a fall in salaries and pensions, the World Bank official said.