"We will wait and see what the parliament has to say about it," Sever said in an interview in a late night news broadcast on Croatian Television.

Social Democrat MP Ingrid Anticevic Marinovic also took part in the programme.

"This turnaround would probably not have happened if we hadn't managed to collect that many signatures. We must thank citizens who gave their signatures thus forcing the government to do such a turnaround," Sever said, adding that the government's latest decision led to the conclusion that there were more than enough valid signatures to organise a referendum against the government-sponsored amendments to the Labour Act.

Earlier in the evening, the media reported that the government had withdrawn its amendments to the Labour Act which had prompted a drive to collect signatures for a referendum against the amendments, resulting in more than 800,000 collected signatures.

The government on Thursday sent to parliament a report on irregularities found in checking voters who had signed the petition.

Commenting on reports that the government was withdrawing its bill, NHS leader Sever said that such a move would be less painful at the moment.

"We (trade unions) suggested such a move at the time when we were still collecting signatures," Sever said, adding that unions had asked the government to withdraw the bill and pledge not to amend the Labour Act without the unions' consent, but they did not receive any response.

"The further course of the procedure is now really up to the parliament," he added.

"The government must have concluded that it is less painful to withdraw the bill then to organise the referendum because many view the referendum not only as a vote on amendments to labour legislation, but as a vote on confidence in the government," Sever said, adding that it was pretty clear what the outcome of such a vote would be, considering the citizens' current mood.

SDP deputy Ingrid Anticevic Marinovic said the government's "unbelievable tenacity and energy in working against the citizens should have been used to their benefit instead."

Asked by the programme host if the Opposition and unions shared the same position on the matter, Sever said that it was good that the Opposition and unions at least sometimes supported the same causes.

"We (unions) launched the campaign to defend the Labour Act for the sake of workers, not because we wanted an early election. This has gone too far now because workers have been exploited for years, just like pensioners, and their living conditions are becoming increasingly difficult," Sever said.

In a statement for Croatian Television, Nenad Matic of the Croatian Peasant Party (HSS), a partner in the ruling coalition government, said the HSS had expected that a solution would be found to the current situation.

This is in line with PM Jadranka Kosor's way of work, finding solutions through negotiations rather than in the streets or in referendums, Matic said.

Commenting on reports that the government has withdrawn its labour bill, SDP leader Zoran Milanovic said during a visit to Karlovac on Friday evening that he had expected such a move.

"They are probably afraid of the citizens," he said.

The SDP leader added that the referendum against changes to the Labour Act should be organised regardless of the reports about the withdrawal of the government bill, "because no one can guarantee that the government won't send the bill to parliament again in a month. I don't trust them."