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Business and Economy / Politics
24.02.2009 20:30
TRADE UNIONS, GOVERNMENT, WAGES
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Public Sector and Govt Sign Austerity Pay Deal (adds)

adds response from trade unions
Foto Foto servis

Signing of agreement between government and public sector trade unions on saving measures prompted by the crisis.
File photo.

Ljubljana, 24 February (STA) - Public Administration Minister Irma Pavlinic Krebs and Finance Minister Franc Krizanic signed on Tuesday with representatives of 23 public sector trade unions an austerity pay deal under which the growth of wages in the sector envisaged for 2009 will be reduced from 9.9% to 7.1%.

Pavlinic Krebs said that the signing of the agreement on measures in the area of public sector wages for the 2009-2010 period was a proof that social dialogue is urgently necessary also in the time of crisis.

According to the public administration minister, the deal also shows that public servants are willing to contribute to sustainability of public finances during the aggravated macroeconomic situation.

"The agreement means that public expenditure will be cut by EUR 100m in 2009," said Pavlinic Krebs, adding that the expected effects of all government's fund-saving measures in the public sector would reduce expenditure by EUR 203m.

The unions and the government also agreed that the sides would start discussing the amendments to the act regulating wages in the public sector and negotiating on changes to the collective agreement for the public sector "in order for deficiencies of the wage system to be eliminated", she said.

Pavlinic Krebs added that today's agreement would be realised with the signing of an annex to the collective agreement for the public sector, expected to take place at the end of the next week.

Krizanic said that public servants had enabled the state to adjust the structure of their wages gradually and not at once. He added that the Slovenian economy will be even more competitive after the crisis ends.

Slovenia has shown that social partnership here is an "institute which is very flexible and can be used in the hardest times", said the finance minister.

The head of the public sector trade unions' negotiating team, Janez Posedi, said that "we have given a lot and we promise to the government that we will insist on it justifying the trust we placed in the public finance to the last cent".

He also said that it was now time that the Chamber of Commerce and Industry, which had proposed to the trade unions to contribute to cost-cutting, made its contribution and call on its members to take care of savings which would enable their employees to have a decent life and the state to survive.

The head of the Confederation of Public Sector Unions (KSJS), Branimir Strukelj, meanwhile said that the unions agreed that the government's obligations are postponed primarily out of solidarity with industry workers, and called on managers to give up high bonuses.

He said that the trade unions would keep an eye on how the saved funds were used, and added that the government is expected to "use public funds carefully and precisely, primarily regarding public procurements".

According to him, by signing the deal public servants showed they are aware of the situation in which Slovenia is and of the severity of the crisis for which neither public sector employees nor industry workers are responsible.

Doro Hvalica of the Glosa trade union, which represents workers in culture, meanwhile said that the union had not signed the agreement because it was against the raise public service employees were to get on 1 September being put off to 1 January 2010. According to him, this considerably encroaches upon the rights of employees.

Infigting also seems have been a feature of the negotiations. Representatives of the two police trade unions allegedly threatened the trade union of cultural workers and artists of public broadcaster RTV Slovenija (KUU) over disagreements on holiday allowance.

Kosmac said that representatives of the police trade unions told a representative of KUU that "in case he does not change his mind they will tell their colleagues to ask for their IDs behind every corner, and fine them if possible."

The vice-president of the Police Trade Union Radivoj Urosevic denied the allegations for STA.

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24.02.2009 20:30

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