ZAGREB, CROATIA - The public services unions will most probably answer today’s decision by the Croatian cabinet with a lawsuit. The cabinet brought a law which reduces the base salary for 180,000 employees in public service by six percent.

Instead of cancelling the collective contracts, the cabinet has now decided to bring a law that reduces the salaries, and in that way have avoided entering a conflict with the unions. Now, the unions do not legally have a valid reason for a strike, explains the cabinet, reports the newspaper Jutarnji List.

The unions claim that the Cabinet can only reduce the base salary by cancelling the collective contracts, and they are convinced that the cabinet will get lawsuits for this move.

Recourse and Christmas bonuses remain

“The cabinet can reduce the (salary) base only by cancelling the collective contract, and not with a law. We will certainly win the lawsuits and that will certainly be a greater hit on the budget than returning debt to the pensioners” says the vice-president of the register of Croatian unions, Vilim Ribic.

The unions of employees in healthcare, education, welfare and culture did not accept reduced salaries. So state employees that signed an agreement for salaries will have a six percent reduction in salary, from 5,415.37 kuna to 5,108.84 kuna. The proposed law on salary basis would be valid for two years. Employees in state services will keep their rights from the collective contract, like Christmas bonuses and recourse.