Prime Minister Ivo Sanader will meet again on Monday at the Banski Dvori with social partners to continue discussions on the Government’s proposal to freeze salaries for one year.
Sanader and members of the Government will continue talks with union leaders and the Croatian Employers’ Association (HUP) regarding measures the Government will take due to the increasingly severe economic crisis. Sanader proposed a one-year freeze on all salaries in the country on Wednesday as one of the measures to overcome difficulties in the upcoming period, and unions and employers are expected to respond to this on Monday. HUP has already publicly supported this proposal, stating that it aligns with recent HUP recommendations for maintaining economic stability under increasingly difficult conditions. However, unions are significantly more reserved regarding such a move as they believe that the burden of the crisis will again fall most heavily on workers’ shoulders. Additionally, many unions, such as those in state and public services, have signed collective agreements that guarantee salary increases in 2009, so their leaders will likely reject Sanader’s proposal. (H)
