The Croatian government decided on Monday to terminate the Basic Collective Agreement for public service employees, the government's press service announced in a statement.
The agreement will formally expire three months from today.
The termination of the agreement followed a failed conciliation process between the government and four public-service unions, which had refused to agree to a reduction of their entitlements under the present Basic Collective Agreement.
Labour Minister Mirando Mrsic had announced earlier in the day that the government would cancel the agreement and begin negotiations on a new one.