Council of European Municipalities and Regions (CEMR)
European section of United Cities and Local Governments

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Local and regional governments as employers

Croatia - 28.01.2010

Draft law on local wages in Croatia withdrawn following CEMR's intervention
Two associations of Croatian local and regional authorities have appealed to the Council of European Municipalities and Regions (CEMR) in the framework of a draft proposal on local and regional government salary bill, on 15 December 2009.
The proposal would have given the government and trade unions of the central government employees the ability to determine the salary basis of local public servants in negotiations at central level and to impose it for application on the local social partners.
In a letter to the Croatian government, the chair of CEMR's Employers' Platform, Ake Hillman, expressed his strong opposition to the proposed law. Being an EU candidate country, Croatia should be aware that the European Union's acquis communautaire includes the concept of social dialogue.
Once adopted the law would have devastating effects on local government and social dialogue. Restriction of right to collective bargaining, 40% salary cuts on average for local governments employees, termination of all collective agreements, Croatian municipalities and counties were left teetering on the edge of disaster, explains Ake Hillman.
Following intervention by CEMR, the Association of Cities of the Republic of Croatia and the Croatian County Association, the government withdrew the proposal and invited the associations to discuss another proposal. I am sure that CEMR's letter convinced the Croatian government and Prime Minister to change the course, said Dario Runtic from the association of Croatian cities.
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