Labor union leader: No progress in salary negotiations for public services

He told the press the government was sticking to its offer of a 2% rise in the second half of the year, which means 1% for the whole year.

The unions, due to the rise in the cost of living and inflation, demand a 4% rise as of 1 April, a 2% rise as of 1 July and another 2% rise as of 1 October, Stipic said.

According to him, Finance Minister Zdravko Maric said the government would redefine its offer for the next meeting and expected the unions to do the same.

Responding to questions, Stipic said that since the cost of living was increasing and inflation had reached 5%, asking for 4.6% was the minimum, and that the unions asked the government not to allow the price of labour to fall below the level achieved last year.

He said that its representatives promised that on Thursday the government would decide to extend the application of the basic collective agreement and that material rights would not be brought into question.

As for an investigation into Labour Minister Josip Aladrovic, Stipic would not comment, saying that was not in the scope of the unions' interest and that the ministers were constructive at today's meeting.

Ministers come and go while problems must be solved, and our problem is above any government, he said.

He said they also discussed redefining the transport allowance and that the government's representatives showed understanding and readiness to find a better solution.