Speaking on Croatian Television, Mrsic said amendments could be reached regarding work at home, a virtual work place and overtime.
He said the Labour Ministry would use those three months to reach a consensus with the social partners amendments regarding work contracts as well. If the unions and the employers failed to agree, the government would make the amendments, he added.
Speaking of pensions, notably in the context of the possible arrival of the International Monetary Fund, Mrsic said the IMF was nothing to be scared of and that Croatia would not need it this year "if we all agree... and embark on the reforms we must carry out next year and should have carried out in 2008."
Mrsic said the stabilisation of the state and the budget would not be built on pensions, which he said would be paid on time and be aligned with the social partners.
He said collective agreements also had to be changed because they were too rigid. As for layoffs, he said one of the changes would be a work contract with a severance package fund under which it would be less cost-efficient for an employer to lay off an employee with many years of service.
The minister went on to say that work in the public sector was a privilege because salaries were secure and paid on time, which was why they should be somewhat lower than in the real sector.
He announced that many young people with college degrees would be employed in the public sector to deal with European Union challenges. He said public companies must undergo restructuring to improve their business results and that this restructuring would lead to layoffs. Asked how many people would be laid off, he said the restructuring plans would be agreed by the relevant ministers with the unions and that they would include social measures and stimulating severance packages.