The meeting between the government and eight public-sector trade unions is scheduled for 1300 hrs Monday in the government's headquarters.

This past Friday, four trade union signed the annex to the Basic Collective Agreement and four refused to do it, which was why the government decided to initiate the arbitration procedure next week, so as to determine whether the signatures of the four pubic-trade unions, which represent health, culture and social welfare workers, are sufficient for the Basic Collective Agreement to apply to all public services.

By accepting the annex, public-sector employees will not be entitled to Christmas bonuses this and next year or to holiday cash grants in 2013. Under the annex, per diems will be reduced from HRK 170 to HRK 150, transport allowances will be lowered and next year's jubilee awards will be paid only to retiring employees. However, salaries will not be cut.

The refusal of the agreement will mean a 10-percent reduction in salaries.

On Saturday, Prime Minister Zoran Milanovic said that he called "primarily, on public sector trade union members, that is Croatian citizens who receive salaries on that basis... to be aware the current state of affairs in the country. Milanovic vowed that entitlements that were subject matter of elimination would be given back as soon as Croatia started earning more.

Europe is in a big crisis, Croatia is stagnating, everything has its price, he said in the town of Umag.

"This is my message to people and not to trade union leaders, who are also under big pressure, that this is not the moment for tensions and hard words. In order to have more in one or two years, we must today remember all those who are not working in Croatia or who are employed in the private sector where salaries have been cut," the premier said.