The Minister of Labour, Pension System, Family and Social Policy, Marin Piletic, was a guest on the morning show Novi Dan with Tihomir Ladisic, where he spoke about the negotiations between the public sector unions and the government.

On Monday, the public sector unions rejected the government’s offer to increase the wage base under the 3 plus 2 formula, unlike the public sector unions. It is expected that a mediation process will be initiated and if no agreement is reached, they have also announced the possibility of strike action.

The unions are sticking to their demand for a basic wage increase of 4 per cent from 1 January with payment in February and a further increase of 4 per cent from 1 April with payment in May, as well as a meal allowance of 50 euros.

“We have made a reform of the wage system possible”

The minister responded to the question of what he expected from the meeting with the public sector unions on Tuesday:

“They will certainly decide in which direction they will go, but I think it is important to repeat some facts for the public. This year we have increased wages in the state and public sector by more than 30 per cent, which has not been the case in recent decades. We believe that through joint efforts with the trade unions, we have made it possible to reform the wage system, something that no one has dared to do before, at a time when the wage base has increased by 40 per cent during the term of these two governments.

With the 2024 reform of the wage system, wages rose by just over 30 per cent. Now, as we want to maintain the continuity of wage growth in the state and public sector, we are offering an increase of 5.06 per cent. Converted, this means that a teacher with a coefficient of 2.01 can expect a gross pay rise of 100 euros after the basic increase.”

He also commented on whether this increase would be enough to correct injustices in the system: “Because we wanted to correct injustices this year, we believe we have done this to the greatest extent possible. We have increased wages by 30 per cent – some more, some less – depending on the differences between certain jobs in the state and public sector.”

The minister emphasised that inflation has not eaten up the 30 per cent wage increase this year: “We have proposed that the first increase from 1 March will be 3 per cent, which is above the expected cumulative inflation rate for the year, followed by a further increase on 1 October.”

“The government has never ended the social dialogue”

Piletic answered the question of whether the government would continue the social dialogue with the public sector unions: “The government has never ended the social dialogue. We have said that the conditions for an independent decision by the government on the level of the basic wage have been met, as the public sector unions have accepted the government’s offer.”

He added that the government has opened all fronts for dialogue with the unions. He hinted that the continuation of negotiations could lead to a larger wage increase than proposed: “That would be unfair to the public sector unions that have agreed, considering that the government has to make a decision by the end of the year. I don’t see any possibility of further negotiations.”

The minister commented on the question of whether public sector unions have the right to strike: “As far as the right to strike is concerned, it is up to them to decide whether they will actually strike at a time when the government is continuing the social dialogue through sectoral collective agreements and the work of the council to monitor the wage system.”

“I don’t think the time is even remotely right to discuss a strike. The government will certainly push through a 5 per cent increase in basic wages. I believe that the trade unions will demand further increases within the framework of open negotiations in sectoral collective agreements, and the government will take this into account as well as the coefficient system,” Piletic added.