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Viewing cable 08ZAGREB310, UNION PROTEST SEEKS HIGHER PAY, GENERAL ECONOMIC

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Reference ID Created Released Classification Origin
08ZAGREB310 2008-04-16 06:00 2011-08-25 00:00 UNCLASSIFIED Embassy Zagreb
VZCZCXRO8480
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0310 1070600
ZNR UUUUU ZZH
P 160600Z APR 08
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 8819
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS ZAGREB 000310 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/SCE, EUR/PPD, DRL; NSC FOR BRAUN 
 
E.O. 12958: N/A 
TAGS: ECON ELAB HR
SUBJECT: UNION PROTEST SEEKS HIGHER PAY, GENERAL ECONOMIC 
IMPROVEMENT 
 
 
1. On April 12, labor unions staged one of Croatia's 
largest ever worker demonstrations on Zagreb's main square, 
under the slogan "Together for Higher Pay."  Police and 
media estimated the turnout at 35,000-40,000 people, while 
the Union of Autonomous Trade Unions of Croatia (UATUC), 
the largest union and primary organizer of the protest, 
claimed that over 50,000 people attended. Marina Kasunic 
Peris, head of UATUC's industrial democracy department, 
told us UATUC's primary goals are adoption of a minimum 
wage law and changes to the labor law to make it more 
favorable to workers, particularly through restrictions on 
the use of temporary contracts.  Many protesters, however, 
raised more general demands, such as protection of 
fundamental workers rights and a "competent" government to 
solve the problems of the people.  UATUC President Ana 
Knezevic told the crowd, "Today we seek a change of policy; 
next time we'll seek a change of government." Kresimir 
Sever, president of the second largest union, Independent 
Trade Unions of Croatia, argued Croatia had become a 
society of castes, with only a few benefiting from 
economic growth. 
 
2. President Mesic was the only politician invited to the 
event.  He was not asked to speak, however, and did not 
attend. In comments to the media, he said the protest 
proved Croatia is a democracy and demonstrating is a 
legitimate way of communicating with the government. In 
regard to economic policy, he said Croatia should focus on 
production and exports and increasing foreign greenfield 
investment. PM Sanader said he also was not pleased with 
the state of the economy, particularly regarding rising 
prices and lack of exports. He said the government would 
amend the minimum wage law in the coming weeks and work 
with the trade unions and other social partners to address 
other issues such as the grey-market economy and expansion 
of workers' shares in enterprises. 
 
3. COMMENT: The large turnout at the protest, despite heavy 
rain, indicates the extent of people's anxiety about their 
economic situation. The union's formal demands--setting a 
minimum wage and revising labor laws--are in areas in which 
the government can negotiate.  The broader discontent over 
economic conditions encouraged by the protesters' rhetoric 
may be more difficult for the GOC to address, however, 
particularly as it moves forward with the economic reforms 
required for EU accession. Without noticeable improvements 
elsewhere in the economy, the government will face strong 
public opposition to reforms such as restructuring ailing 
industries and cutting state subsidies that could result in 
job losses.  A major battle still looms over what to do 
about Croatia's shipyards, large employers that are 
generally unprofitable.  END COMMENT. 
 
Bradtke