Zagreb’s Mayor to Cut City Employees' Salaries

It is the responsibility of the city government and the Holding to propose a savings plan, and we will make savings in our own ranks - Mayor

ZAGREB, CROATIA - Zagreb’s mayor, Milan Bandic, claims that he has found a way that he can stop, or at least slow down, the growing prices in Zagreb. After the wave of increased prices in 2008 that affects council services, water supply and management, for which he was criticized by everyone from the unions to the nation’s leaders, Bandic has decided to propose a savings plan for 2009 that should keep prices down.

- It is the responsibility of the city government and the holding to propose a savings plan, and we will do this, starting with savings in our own ranks where we have 23,000 people – said Bandic. He explained that the collective contracts of all the employees of the city and Holding, state that their salaries should rise by six percent, by restricting these salary rises, with an annex to the contracts, the city should be able to rid itself of a part of the price hikes.

Bandic also mentioned that salaries have risen 44.4 percent since 2002, and that the nation’s salaries have only risen by 19 percent in the same period. By reducing the salary growth rate for Zagreb’s city workers by three percent, and with extra savings inside the Holding, Zagreb could save a lot of money – Bandic explained his proposal.