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The Committee notes the Government's report.
Article 4 of the Convention. 1. The Committee previously had requested the Government to forward its observations on the decision handed down by the Supreme Court of 7 December 1995 which acknowledged that legislation may modify the substance of a collective agreement concluded for the whole of the public sector. The Committee had requested the Government to provide information on the measures taken to ensure the promotion of free collective bargaining in the public sector with regard to public servants not engaged in the administration of the State. The Committee notes that the Government's report makes no mention of these points and once again requests the Government to provide information in this regard.
2. The Committee notes that the Independent Trade Union of the Croatian Electrical Power Industry and other workers' organizations had presented comments on the application of the Convention and, in particular, the restrictions placed on negotiating pay increases in state enterprises and undertakings through collective bargaining, as a consequence of the decision handed down on 30 December 1997 respecting the application of the remuneration policy. The Committee notes that the Government indicates that since it was the legal authority empowered to administer "state goods", it had taken a series of measures intended for public undertakings which were the property of the State. These measures took the form of proposals and neither impeded nor encumbered the rights of workers; rather, they served as guidelines which employers applied when negotiating pay awards for 1998. The Government considers that employers, to the extent possible, will negotiate wages having due regard to these guidelines. The Committee recalls that legislative provisions are compatible with the Convention where they allow Parliament or the competent budgetary authority to establish an overall open "budgetary package" for wage negotiations provided they leave a significant role to collective bargaining. It is essential, however, that workers and their organizations be able to participate fully and meaningfully in designing this overall bargaining framework (see the 1994 General Survey on freedom of association and collective bargaining, paragraph 263). The Committee lacks sufficient information to establish whether, in the present case, workers' organizations were consulted and requests the Government to ensure that prior to fixing wage rates in guidelines trade union organizations are consulted and that these levels, in fact, leave a significant role to collective bargaining by the parties concerned.