The future government will face an absurd situation: it will aim for GDP growth, but not exceeding 2%. At this growth threshold, the unions of state and public service employees will demand the return of rights that were revoked. The union and pensioner cost of a 2% growth would cut the state budget by as much as four out of six billion that would be collected from a 2% growth.
We have written about the absurd strike of professors and teachers at the end of the mandate of Milanović’s government on the pages of Liderpress and in the weekly Lider, and now we bring what a 2% GDP growth actually means.
What Does a 2% GDP Growth Mean?
– 6 billion kuna higher GDP
– 3 billion kuna more per year for the rights of public sector employees
– 1 billion kuna spent on pension increases due to indexation
These are the rights that the unions will demand:
• Christmas bonuses, severance pay
• Seniority bonuses of 3%, 5%, 7%, and 9% for teachers and educators
• Loyalty bonuses of 4%, 8%, and 10%
• Reductions in transportation costs, per diems, and the base for jubilee awards
• Non-payment of overtime hours
And it should be noted that…
650 million kuna per year are spent on Christmas bonuses and severance pay in the public sector at the maximum non-taxable amount of 2500 kuna.
500 million kuna per year are spent only in healthcare and education for loyalty bonuses – for 20, 30, and 35 years of service
