PM: Collective Agreement spells chaos

Prime Minister Mirko Cvetkovic says that implementation of the Collective Agreement would lead straight to hyperinflation and chaos. Cvetkovic told daily Politika that application of the Collective Agreement would mean a 20 percent wage increase, which is impossible in the current situation. He said that the government had proposed that the Collective Agreement’s implementation and its financial consequences be postponed for a year. PM: Collective Agreement spells chaos “At the same time, the employers’ union is calling for the collective agreement to be scrapped. We’ve received hundreds of letters from employers saying that it is completely pointless. And foreign investors think the same. We realize that this is one of the most critical links for next year,” Cvetkovic said. Commenting on workers unions’ plans for protests in January, Cvetkovic said that “the workers have threatened protests again, but I say again: you cannot earn a crust on the streets.” Union leader Ljubisav Orbovic said that negotiations between the union and the government were ongoing and that nothing had been agreed on yet. Union officials are expected to meet with Cvetkovic today to receive a final decision, Orbovic told B92. “This is the second time we’ve effectively backed down, because, compared to what’s set out in the Collective Agreement, we’ve cut our demands by a quarter, but it is clearly a problem with the budget that failed to take into account the implications of the implementation of the Collective Agreement,” he said. “We want to find a solution for the Collective Agreement to be respected during the year and for part of the funds to be given. Tomorrow we will have a meeting at the Presidency and we will make our positions clear on that issue,” he added. The government proposed at a meeting of the Social-Economic Council three days ago that implementation of the Collective Agreement should be postponed by six months to a year. The employers’ union recommended that the agreement be postponed for a year, which the workers’ unions have deemed unacceptable. Workers’ unions are threatening to begin protests from January 1 until the Collective Agreement is applied. Mirko Cvetkovic (FoNet archive)

PM: Collective Agreement spells chaos

“At the same time, the employers’ union is calling for the collective agreement to be scrapped. We’ve received hundreds of letters from employers saying that it is completely pointless. And foreign investors think the same. We realize that this is one of the most critical links for next year,” Cvetković said.

Commenting on workers unions’ plans for protests in January, Cvetković said that “the workers have threatened protests again, but I say again: you cannot earn a crust on the streets.”

Union leader Ljubisav Orbović said that negotiations between the union and the government were ongoing and that nothing had been agreed on yet.

Union officials are expected to meet with Cvetković today to receive a final decision, Orbović told B92.

“This is the second time we’ve effectively backed down, because, compared to what’s set out in the Collective Agreement, we’ve cut our demands by a quarter, but it is clearly a problem with the budget that failed to take into account the implications of the implementation of the Collective Agreement,” he said.

“We want to find a solution for the Collective Agreement to be respected during the year and for part of the funds to be given. Tomorrow we will have a meeting at the Presidency and we will make our positions clear on that issue,” he added.

The government proposed at a meeting of the Social-Economic Council three days ago that implementation of the Collective Agreement should be postponed by six months to a year.

The employers’ union recommended that the agreement be postponed for a year, which the workers’ unions have deemed unacceptable.

Workers’ unions are threatening to begin protests from January 1 until the Collective Agreement is applied.