Collective Bargaining

The trade unions are opposing government plans on a pension reform in the second quarter of 2018 that will increase the pension age from 65 to 67 (see our March newsletter). The NHS union federation staged a rally at St. Mark Square between Government and Parliament Houses on 25 April 2018 to protest the proposed increase in pension age. Furthermore, the Unions of Autonomous Trade Unions of Croatia and the Association of Croatian Trade Unions announced a joint May 1 protest demanding amongst other things fairer wages and better working conditions and a dignified life for elderly citizens. The proposed pension reform is also part of the May 1 protest.

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Two of the major two trade unions, the Union of Autonomous Trade Unions of Croatia and the Association of Croatian Trade Unions, urged the government to stop the privatisation of health care that is planned under new health care legislation. The new legislation would mean a further step in the privatisation of health care, with licensed GPs that would no longer operate under a lease agreement but would be fully private. The trade unions fear this will threaten access to quality health care.

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Some 10,000 health workers from across the country came to the capital to participate in a massive protest against wage cuts. The protest is following government promises to hike salaries in the health care sector. Sanitas health union, said that at the same time some employees lost up to 1,100 lei (236 euro) of their net monthly pay. The most disputed change has been shifting social security taxes from employers to employees. The health workers threatened to go on strike if the government doesn’t resolve their salary issues.

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The OECD has published a brochure on wage and income taxation. The brochure is based on the annual report with details of taxes paid on wages in OECD countries. A summary is available in 8 languages. The brochure provides information on the income taxes paid by workers, their social security contributions, the family benefits they receive in the form of cash transfers as well as the social security contributions and payroll taxes paid by their employers. The average tax wedge decreased by 1.1 percentage points from 37.0% to 35.9% for the single taxpayer on average earnings and by 1.8 percentage points from 27.9% to 26.1% for the one earner married couple on average earnings with two children.

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A 12-hour strike over personnel shortages at Limassol’s general hospital was suspended to give the government an extra week to meet the workers’ demands for better staffing. During a meeting between trade unions and the ministry it was decided to establish procedures to fill new positions which were promised by the government to alleviate personnel shortages. Unions warn that if their demands are not met they might stage a 24-hour work stoppage.

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According to the teachers’ union, the government is planning to introduce in 2019 a new system of 12 pay grades with teachers classed as grade 8. The union believes the pay grade system the government is drawing up is discriminatory towards teachers, health care and social services staff. The union staged a protest against the new grade in front of the government headquarters demanding equal pay grades for all state employees and higher salaries.

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With a rally on Ljubljana airport firefighter and airport maintenance controllers protested for better wages. The workers rejected the new collective bargaining agreement although airport management claims the new agreement raises wages and enables promotions.

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Workers at Public Power Corp (PPC) took to the streets in protest against privatisation urging lawmakers to rescind the planned sale of power stations which they have branded a ‘national crime’. Hundreds of workers gathered outside parliament, as lawmakers debated legislation. Workers fear the sale will lead to job losses and hurt their labour right. Despite the protests a majority of lawmakers voted in favour of the bill which paves the way for PPC to begin selling plants in May 2018.

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Trade union Vida, the union for cabin crews, and Lufthansa’s Austrian Airlines started in October 2017 with their bargaining round with the main dispute concerning a pay rise (see our March newsletter). Austrian Airlines offered an increase in salaries of 2.1% and an additional onetime pay of 1.4%. The works council and the trade union wanted to raise the wage level to the standard level that is paid across the industry. Following further negotiations, the collective bargaining partners succeeded in establishing a key issues paper for the conclusion of a collective agreement. Parties have agreed not to publicise any further details on the agreement at the moment. Eurowings did not provide any details of the deal with Vida. The union stated that cabin crew would get a starting monthly salary of 1,700 euro, up from under 1,500 euro previously.

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Trade unions OGBL and FNCTTFEL left the negotiating table as talks with management over working conditions reached a deadlock. The unions call on the government to intervene. Main of dispute is the fact that rest periods between shifts are 11 hours with shifts lasting up to 13 hours. The unions claim that this is incompatible with the security demands imposed on a tramway especially considering staff have long journeys to get to work.

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