The government will cut expenses public sector employees by two billion kuna, regardless of their unions' request that a referendum be called on the extended enforcement of collective agreements, Finance Minister Slavko Linic said on Wednesday.
We will most definitely save two billion kuna, and the government has several methods at its disposal as to how to do it, including salary cuts, Linic told union representatives after a business lunch with the American Chamber of Commerce in Croatia (AmCham).
Union federations forwarded a letter to parliament earlier today urging it call a referendum on the extended enforcement of regulations from collective agreements.
Linic said this request was no surprise because some of the unions had shown already at the first meeting on amendments to the collective agreements for public sector employees, aimed at making economies at the expense of material rights, that they were not willing to negotiate. They only want to defend their positions, which they are entitled to, Linic said.
Other unions are serious enough and willing to negotiate. The last negotiations were very fair and involved the people who wanted to negotiate, and those who don't want to negotiate don't have to, Linic said.
The government will find a way to cut expenses even without amending the collective agreements. "People should realise that this country will not spend more than it makes," Linic said.
He also said the government would no longer tolerate state-owned companies not paying their workers.
The minister announced the privatisation of the Croatian Postal Bank (HPS) and the Croatia Osiguranje insurance company in the near future.
