Unions government employees and public sector workers rejected on Tuesday another, improved, offer by the government, in their negotiations over salary increase.

Labour Minister, Marin Piletic, told reporters after a meeting with union delegations on Tuesday that he government was now offering a 4-percent raise starting in October and an additional 2-percent raise in January. The government’s earlier offer, which unions had also rejected, was for the 2-percent rise to come into effect in April.

“Together with the 4-percent increase in May, this would mean a 10.3 percent increase in the basic salary in a period of under nine months,” Piletic said, adding that this is the government’s response to “the economic situation, inflationary pressures, and the social partnership with the unions.”

He said the government also offered to raise this year’s Christmas bonus from 1,500 (€200) to 1,750 kuna (€232) and add 250 kuna (€33) more for next year’s Christmas and holiday bonuses. Piletic added that their proposal would cost 4.2 billion kuna (€558 million).

Economist Matija Kroflin, who was hired to advise public sector unions, said that this was still below their demands, which is a 13-percent raise. “Given the price hikes, this offer would mean a drop in real-term wages next year, and that’s unacceptable,” he added.

Kroflin said they would wait to see a new, even more improved, offer next week.

(€1 = 7.52 kuna)