The negotiating teams of the government and seven unions in today's round of negotiations on the Collective Agreement for some 60,000 civil servants, which expires at the end of July, agreed that a temporary non-payment of one-off allowances, such as holiday cash grants next year and Christmas bonuses in 2012 and 2013, should be regulated by an annex, while the issue of jubilee awards and lower per diems, which is yet to be negotiated, should be regulated by the Collective Agreement.

A task force was set up to draw up a proposal about transportation reimbursement, which will be discussed at the next meeting in the government headquarters scheduled for Monday 23 July.

In exchange for giving up a large part of their material rights over the next year and a half, the government guarantees civil servants that they would keep their jobs and their salaries. The government also agreed to the unions request that the new Collective Agreement be signed to a period of four years.

The government chief negotiators, Deputy Prime Minister Neven Mimica and Labour Minister Mirando Mrsic, expressed satisfaction and optimism about the constructive atmosphere, understanding and responsibility.

According to unofficial sources, the government expects the new Collective Agreement to be signed by the end of next week.

The president of trade unions representing civil servants, Boris Plesa, said that in the negotiations with the government, the unionists would reach a platform which they must offer to their bodies for adoption. He did not rule our the possibility for some of the unions to put the draft Collective Agreement up for a referendum among their members.

The government proposed to civil servants more or less the same it has proposed to unions representing public sector employees - to give up two Christmas bonuses and one holiday cash grant as well as jubilee awards (with an exception of workers with more than 35 years of service). The government also proposed that per diems be reduced from 170 to 150 kuna.