Under the new basic collective agreement, public sector employees will lose two Christmas bonuses and a holiday cash grant as well as have their awards, per diems and transport allowances reduced. A cleaning woman with 40 years of service will lose nearly HRK 13,000 per year and a teacher as much as HRK 20,000.
Today's signing of the basic collective agreement is taking place against the backdrop of the government's bill to revoke some rights exercised by public sector employees, which derogates collective agreements and union action and is contrary to International Labour Organisation conventions, said union leader Branimir Mihalinec.
He urged the unions that planned to sign the new basic collective agreement to demand the government withdraw the bill and President Ivo Josipovic to ask the Constitutional Court to say if the bill complied with the constitution.
Mihalinec said Matica officials had gone to Brussels to inform European Union leaders about the government's breach of Croatia's constitution and laws.
Union leader Zvonimir Laktasic said the new basic collective agreement could be the first step in slashing the salaries of public sector employees. He said teachers' salaries were 20 per cent below the Croatian average and that slashing allowances even further would completely discourage teachers from working.
He said it was ironic that the government was slashing public employees' salaries while Prime Minister Zoran Milanovic was urging public companies to show solidarity with the public sector and not pay Christmas bonuses.