Three trade union federations have begun preparations for a protest rally against the announced pension reform, to show their dissatisfaction because, as they say, Labour and Pension System Minister Marko Pavic did not incorporate the unions' recommendations in the draft plan.

Once the union federations come to an agreement on their stances, we will announce a protest rally that should be held in about a month’s time, the SSSH union federation leader, Mladen Novosel told state news agency Hina on Tuesday.

“We call on all unions to join us, as well as workers, students, pensioners, and all those whose pensions will be affected in the future,” he added.

While presenting the pension reform draft to unionists on Monday, Minister Pavic refused to negotiate on the unions’ three main demands – bringing the retirement age back to 65 from the proposed 67, not imposing additional penalties on early retirement, and allowing people who are eligible for age pension at the age of 60, and have a 41 years’ working life to go into retirement, instead waiting for their 61st or 62nd birthday, Novosel said.

“In 99 percent of cases workers retire early because of downsizing, and not because they want to,” he said, adding that additional penalties for early retirement is not the solution.

“The minister said there was nothing to talk about. That is not socially sensitive dialogue, which is why we are set to stage the protest,” Novosel said.

According to the new proposal, the retirement age will be extended to 67, and pensioners will be able to work up to 4 hours a day and still receive full pension. The additional 27 percent pension payment will be paid only to those retirees who pay into the first, state-run pillar, meaning those born in 1962 or later and who are members of both the first and second pillars will not have the right to claim the 27 percent payment.

It is estimated that there are some 1.2 million pensioners in Croatia, opposed to some 1.4 million full-time employees whose contributions finance the pension system. Some 19.2 percent of the entire population is estimated to be older than 65, and the average pension is around 3,400 kuna (€461).

(€1 = 7.42 kuna)

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