The government proposed the option of a voluntary shorter working week, reduction of the bonus for years of service and lower lunch allowance, as well as lower compensation for commuting costs.

These measures were to come on top of an extension of the existing measures, which are set to expire at the end of the year.

Public Administration Minister Boris Koprivnikar refused to specify what was actually on the table as he arrived for the talks, though he acknowledged a cut in the seniority bonus was one option.

This was to offer "junior employees, those with the lowest wages, something specific while shifting a larger portion of the burden on those who are better off and have worked longer."

Cumulatively, the measures would amount to savings of EUR 80m, a significant step back from last week's proposal that would have shaved EUR 127m off the wage bill.

The unions concede to the extension of existing savings measures and they are willing to debate the shorter working week and commuting costs, but they deemed other measures unacceptable.

"We have not made any major breakthrough today," commented Branimir Štrukelj, the head of the confederation of public sector unions.

The negotiations will continue in a week, with the government expected to examine the unions' reaction and possibly tweak its proposal.

"As I understood, the minister will check in the broader government circle how to continue the talks and how the government's proposal could be changed," according to Štrukelj.

The negotiations are a part of efforts to bring the budget deficit below 3% of GDP next year, a crucial target as the government seeks to achieve EU-imposed targets.