Four unions from the Matica federation and the Preporod school workers union did not sign the basic collective agreement but based on new legislation, the TKU will apply even to those unions that did not sign it.

With the new agreement, the government will save up to HRK 1.6 billion and Labour Minister Mirando Mrsic thanked the unions today for their cooperation considering the deep economic crisis in Croatia.

This agreement defines things we have to go without as there is no money to cover them, but we hope the time will come when we will be able to discuss wage increases in the public service, Mrsic said after signing the TKU.

Independent union of health and social welfare workers leader Spomenka Avbersek commented that it was a tough decision to sign the new agreement but that unions were faced with two options, either to relinquish some material rights or have their salaries cut by 10 percent.

Provisions in the TKU will be transferred to branch collective agreements (GKU) and today's supplement has built in a "safety clause" which means that the rights in individual GKUs will be valid for all public services.