Minister of Labour and Pension System Marko Pavić from Zagreb’s Maksimir Park, where the International Workers’ Day is traditionally celebrated on May 1st, congratulated all Croatian workers on Labour Day on behalf of the Government of the Republic of Croatia, emphasizing that the Government wants to achieve better, dignified working conditions in agreement with social partners.
Minister Pavić arrived at Maksimir Park after the union parade, which started from the Workers’ Home to Maksimir in the morning, and after the union address, he gave a statement to journalists at the main stage.
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When asked about his arrival in Maksimir despite the lack of an official announcement, Minister Pavić emphasized that he always wants to be with the citizens. “This time, on behalf of the Government, I want to wish all workers in Croatia a happy International Workers’ Day,” he said.
Commenting on some initiatives for banning work on Sundays and how the Ministry views this and whether it will ultimately happen, Pavić stated that they are considering all aspects of work together with social partners and want to achieve better, dignified working conditions in agreement with social partners.
“This includes wage increases. I would remind you that the Government of Andrej Plenković has increased the minimum wage twice by five percent, that we have increased public sector wages by six percent, and that the average salary in the Republic of Croatia is around 6,200 kuna, and in Zagreb, more than 7,000 kuna. We have record high employment and record low unemployment. However, we are not satisfied with that – we want to develop social dialogue and achieve dignified working conditions through social dialogue,” the Minister of Labour stated.
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In response to a journalist’s question about how he comments on the unions announcing that they will go to a referendum regarding the ban on Sunday work, Pavić reminded that Prime Minister Plenković has met with representatives of the Economic-Social Council (GSV) twice – ‘we are going for the ratification of Convention 144 on strengthening social dialogue, we are investing over 100 million kuna in social dialogue, and the Economic-Social Council is precisely the place where we will develop that dialogue and where we will develop all reforms in agreement,’ he emphasized.
When asked how he comments on what union representatives said today ‘from the stage that there will be more of them on the streets, and much less at negotiations in the future if this situation continues,’ Pavić reminded that macroeconomic indicators are good.
“We have a situation where we earned more last year than we spent. Therefore, this Government certainly listens to the unions, listens to the needs of workers – both in agreement and at the negotiating table and for agreements, and at the Economic-Social Council, I believe we will find the right reforms that will satisfy both sides,” he stated.
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There will be no going from work to the grave or working until exhaustion
Commenting on what the unions have listed as main topics, including mass emigration and pension reform, which they say only proposes an increase in the working age, Pavić emphasized that he wants to reassure all citizens. “There will be no going from work to the grave or working until exhaustion,” he said.
“Currently, by law, one works until the age of 67, but those who enter the labor market early after reaching 40 years of service can retire at 60. We will continue to maintain that institute with long-term service. What is now a question is the sustainability and adequacy of the pension system, and that is precisely what the reform is about. We have invited all unions and employers, and we are working on this together,” he said.
The Minister emphasized that the issue of youth emigration is a broader issue.
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“And we want to ensure that young people have the opportunity to stay in Croatia by strengthening active employment policy measures; we have secured two and a half billion kuna this year for active employment policy,” he added.
When asked what kind of message it sends to young people to stay in Croatia when we have work until 67 years, and one cannot really survive on early retirement, Pavić reiterated that they want to keep young people in Croatia through active youth policy measures.
Regarding the pension system, he reminded that only 19 percent of retirees have completed full working years. The goal of the reform will be to have as many retirees as possible who will complete those 40 years of full working service. We are aware that pensions are low, but this year we have also secured 1.4 billion kuna for their increase, and the Government is doing everything within the budget and within possibilities to ensure dignified conditions for our retirees, emphasized Minister Pavić.
When asked whether the surplus will be used for wage increases or for tax relief, Pavić said that the Government of Prime Minister Plenković achieved a surplus of 2.75 billion kuna for the first time in history last year.
Three priorities envisaged by the reform
“What we want is to significantly encourage reforms, further relieve citizens and employers. We have already done this through tax reform, which has stimulated the economy, as we have record employment and growth, and with this, we want to ensure the three priorities envisaged by the reform – strengthening productivity, connecting the labor market and education, and strengthening, i.e., sustainability of public finances,” Minister Pavić emphasized.
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He emphasized that Finance Minister Zdravko Marić additionally announced tax relief precisely stimulated by that surplus through the convergence plan.
“But what the Government is doing – acts responsibly, we are planning the budget conservatively, we do not want to rush, and we will be very pleased if the tourist season and the economy grow even better than we planned,” concluded Minister Pavić.
