Milanovic knows how slippery legislation on labor is

Pressure on the Government to initiate more rigorous cutbacks towards citizens reaches the culminating point.  After the principal of tax administration Nada Cavlovic Smiljanec publicly stated there was a list of companies whose obligations towards the state were disregarded secretly, file about fifty billions of unpaid taxes, fees and other outcomes towards the state budget got another strength. It is not an abstract and hardly apprehensible number but information that could lead to a different outcome.

The boss of the Croatian laborites Dragutin Lesar exactly knew why to reveal such information in the middle of discussion about the state budget for this year and before new alterations of the Law on labor. If the authority and state institutions had different stands towards grand 'non-paying' taxpayers, if they applied the same rules like towards small taxpayers (they take away your taxes and fees before you even see the money you've earned) the state wouldn't be in fear of whimsical rating agencies. There wouldn't be needs for new cutbacks on expanse. The minister of finance wouldn't have to worry about deficit nor would he have to search for financial sources for new indebtedness. Half of the state budget floats on unpaid state obligations at various live or extinct 'non-paying' taxpayers. Some people claim that even 50 percent of this amount could be paid. Even if this evaluation is exaggerated, there is still around 9 billion HRK of unpaid concession that are owned mostly by wealthy firms as experts claim. Those companies simply used one clumsy clause of the contract with the state, as they kept the money to themselves and the state never asked about those debts. Imagine the budget that is increased by 9 billion HRK in the income part than it is now?

In the middle of recalling this data, the messages of companies that say they are ''content with the Government'' but are demanding for more ''rigorous cutbacks'' can hardly keep stringency. Just like a thesis that the main problem of Croatian economy is current Law on labor. And that increasing pressure initiated by the certain media, could be dwindled a bit. As first, it is because trade unions don't hide from the agreement about prolonged duration of collective contracts that became unsustainable in this crisis, because the prime minister Milanovic is aware of result on the further legal reducing of workers’ rights that haven't prevented mass dismissal in a real sector anyway.

Racan's Government almost failed on the Labor legislation and Jadranka Kosor really experienced such failure after 700 thousand gathered signatures against this legislation so Milanovic could easily understand that the situation could be slippery for the Government.

Duration of collective contract is a subject that trade unions are ready to discuss about with the Government as an employer so on a matter of alterations of Labor law; they claim that the problem can be solved even without messing with the Legislation. They will try to defend themselves by claiming that the current Law on labor is adjusted to European standards and that it offers solutions that employees simply haven't utilized yet. From working less than fulltime, working at two employers, temporary employment over agencies, to so-called permanent season employers.

Milanovic claims that the Government has no intention to change a thing except duration of collective contracts. ''Once you initiate cutbacks, you can never stop, since in the eyes of neoliberal entrepreneur, the one who only minds a profit, not a social responsibility, it is an ideal situation that has no obligation'' said the prime minister in front of entire MPs auditory, and Lesar carefully stored it in web archive.

Well, it is not like the prime minister will deny his own statements!