In the entire textile industry I could see people working hard, investing their whole lives in their company, and not being able to secure their livelihoods, the President said.

A society where people work without being paid is not a healthy society, Josipovic said, calling on the social partners to do all in their power to improve their mutual relations and trust.

Commenting on the argument that the only task of managers and big businesses was to maximise their profits, Josipovic said that this was a deeply erroneous notion that had partly caused the present global crisis.

Reporters asked the President to comment on the latest figures showing GDP growth of 0.2 per cent in the third quarter.

Such figures are welcome, but it is too early to say that Croatia has emerged from the crisis, because we need to be aware that that requires a constant struggle and social dialogue, Josipovic said.

The two-day congress was being attended by delegates from 17 branch unions who were due to elect a new president of the SSSH on Saturday. The only candidate for the post is the current acting president, Mladen Novosel.

The meeting was also addressed by the Minister of Transport and Infrastructure, Bozidar Kalmeta, who said that the government could not function without a social partnership.

We will try to resolve all problems by consensus, Kalmeta pledged.

The head of the Croatian Employers' Association, Damir Kustrak, said that social dialogue should be raised to a higher level in order to kick-start the economy, adding that employers were ready for compromises and for a consensus.

The coordinator of trade union federations, Vilim Ribic, said that the federations had achieved what had not been possible to achieve in the last 20 years -- to secure citizens' right to a referendum.