The government and public sector unions on Tuesday signed an agreement on changes to salaries for public sector employees which was initialled by union representatives a week ago calling off the announced strike action which, according to them, would have paralysed the country.
Labour and Pension Systems Minister Mirando Mrsic and 13 public sector union leaders signed the agreement according to which the government would not reduce salaries any further this year nor seniority allowances and that negotiations on an increased wage index would be conducted once Croatia recorded a growth in GDP for three consecutive quarters and once the budget deficit was below 3%.
"There are no winners or defeated" and the majority of public sector unions have signed the agreement, Mrsic said, adding that those that haven't can always do so.
The government is ready for social dialogue, Mrsic said and announced that negotiations were to be held concerning social peace in the public sector which would define the rules according to which all sides would behave in good and bad times.
He also announced that negotiations would commence in September for Christmas bonuses and vacation allowances for 2014.
