Employers applaud gov't measures, call for reforms

The Croatian Employers Association (HUP) on Thursday welcomed the government's measures regarding a higher minimum wage, seasonal employment in tourism and quotas for the import of labour, but also underlined the need to implement reforms. The measures are a good compromise between unions' expectations and employers' warnings about the real situation on the market, HUP said in a press release.

A higher pay is in everyone's interest but it cannot be set administratively, while ignoring the real situation in the economy and Croatia's competitiveness, HUP said.

We welcome these measures and the government has shown that it is a social partner which acknowledges the arguments of both unions and employers, HUP director general Davor Majetic said, adding that for the first time the government accepted some HUP proposals concerning a higher minimum wage in labour-intensive industries, which he said operated on the brink of viability.

Employers, like the government and the unions, want to provide for the highest pay possible, but pay growth is limited by the real state of the economy, which makes some of the union demands unrealistic and contrary to the interest to keep as many jobs as possible, Majetic said.

All employers whose financial results allow that, increase salaries, but in some industries there is no room for that until better conditions are created for doing business, he added.

Croatian companies are burdened by high business costs and many other obstacles that makes them less competitive in comparison with foreign companies, which have lower costs and better conditions, so HUP is seeking broader reforms which will make it possible to slash business costs, create a more stimulating environment and raise salaries, HUP said.

Only profitable business guarantees regular salary payments, jobs and investments in the development and modernisation of doing business, without which neither salaries nor jobs are sustainable in the long term, HUP added.

It called on the government, unions, the opposition and other social stakeholders to work together on reforms, saying their implementation was the only way to have a more advanced society and higher living standards.

The government's decision today on the minimum wage and other measures gives us hope that it understands the economy's challenges and problems, and we hope it will actually start implementing the necessary reforms, HIP said.

(Hina)

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