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Croatia to get new labour act before joining EU

Autor: half
ZAGREB, Sept 10 (Hina) - Croatia will have a new labour act by July 1, 2013, when it is expected to join the European Union, or the existing one will be divided into a labour act and a social rights act, Labour Minister Mirando Mrsic said on Monday after a session of the Economic and Social Council.

He said a broad public debate would be held with everyone interested by then, but stressed the current law must be changed despite the firm objection of the unions, as this year as many as 130,000 temporary and only 10,000 permanent work contracts had been signed.

Unions agree, their representative Damir Kustrak said, adding that the labour market must be in the function of employment and that the economy must increase its competitiveness.

However, the unions strongly object to amendments envisaging work contracts that would make it easier for an employer to lay off a worker in the first two and a half years of employment.

Union representative Kresimir Sever said all European unions stood up against such contracts.

Mrsic said the government would soon send to parliament a bill of amendments to the employment stimulation act, and announced the introduction of a form that would show every individual's income and contributions to the state.

The Economic and Social Council also discussed the leasing out of motorways, with the unions objecting to it and saying "the state's silver and gold should be kept from privatisation and long term concessions at any price."

Mrsic said the motorways would be monetized if a good price was reached with interested concessionaires, adding that the government had opted for this because the previous one had saddled motorways with too costly and uneconomical loans that were a burden on all citizens.

The unions were also against the government's conclusion to amend collective agreements in state companies to align them with the rights from the collective agreement for state services.

After strong objections, employers decided to endorse a law on financial operations and pre-bankruptcy settlement after the Finance Ministry acknowledged the remarks of the Employers Association and the Banking Association.

Kustrak described the law as a "brave attempt by the government to bail out some companies which have prospects."

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