Aladrović, after the meeting with representatives of the unions of public and state services at the Ministry of Labor and Pension System, emphasized in a statement to journalists that the Government’s proposal does not include a reduction in salaries.
– However, the expected salary increases, which we agreed upon at a time when we could not foresee the crisis caused by the pandemic, have been put on hold until December 31. We propose to abandon the announced increase of the base two times by two percent, along with the corresponding material rights, such as Christmas bonuses, severance pay, and jubilee awards – said Aladrović.
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He explained that the fiscal effects of this step would lead to savings of over one billion kuna, and given the economic situation, everyone can agree that the economic indicators and projections of VAT decline are such that savings must be made.
For this reason, the Government offered the unions in negotiations to abandon previously agreed rights, but they rejected it.
– We did not find understanding of the situation; we will continue negotiations in the context that the seriousness of the situation will be understood and that what we offered does not imply a reduction in salaries but the exclusion of salary increases – said Aladrović.
In response to a journalist’s remark that the billion in savings compared to state borrowing is deemed meaningless by the unions, Aladrović replied that the best insight into the situation is held by the Minister of Finance.
– The fact is that the projected deficit is 25 billion kuna, and the GDP decline is 9.4 percent. We have already had a budget redistribution, where all sectors are seeking savings. Until now, we have not entered into savings in material rights, but in the next period, this will be necessary to stabilize public finances – he stated.
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