Public service unions are likely to file a lawsuit challenging a decision by the Croatian government to adopt a law that will reduce the base salary for 180,000 public service employees by six percent.
Instead of cancelling collective contracts with employees, the cabinet has decided to introduce a law that would reduce salaries, and in this way deny the unions the legal right to strike over pay, according to the newspaper Jutarnji List.
The unions claim that the Cabinet can only reduce the base salary by cancelling collective contracts, and they believe the government’s initiative will result in a legal challenge.
“The cabinet can reduce the (salary) base only by cancelling the collective contracts, and not with a law. We will certainly win a lawsuit and that will certainly be a greater blow to the budget than paying debts owed to pensioners” the vice-president of the register of Croatian unions, Vilim Ribic, said.
Unions of employees in healthcare, education, welfare and culture have not accepted reduced salaries. State employees that have signed a salary agreement will have a six-percent pay cut.
The proposed salary law would be valid for two years. State employees would keep their collective contract benefits, such as Christmas bonuses.