At the panel discussion entitled “Modernisation of Slovenian labour market and the role of strengthened social dialogue in adopting new labour legislation”, which took place in Ljubljana on October 9, 2012, the envisaged changes of labour legislation were the central theme.
The panel discussion was an event intended for the Slovene employers, for whom the changes of the Employment Relationships Act represent one of the priorities they have been discussing for years. The Slovene employers had the opportunity to exchange their views and experiences with Andrej Vizjak, Minister of Labour, Family and Social Affairs as well as with union representatives.
Milan Lukić, President of ZDS, pointed out in his welcome address that the conditions in the Slovene economy were dramatic and could only be improved with radical reforms. He stressed the fact that rigid labour legislation represented a major difficulty for the employers.
ZDS was very satisfied with the Starting points of the labour market reform presented by Janez Janša because they indicated greater flexibility. However, the reform proposal brought to the negotiating table in September did not meet the employers’ expectations by far. Such a proposal would only bring additional burdens.
Mr. Lukić, President of ZDS, reminded us that the red thread of the ZDS efforts was in the external and internal flexibility, which would enable employers to adapt to the labour market conditions with the number of employees and flexible working time arrangements for the workers in the company. ZDS does not call for new inventions but for legislation comparable to the one in Germany or Austria. Just ‘cosmetic corrections’ of the Employment Relationships Act were simply not enough, he said.
Andrej Vizjak, Minister of Labour, Family and Social Affairs refuted the accusations about the labour market reform being simply a set of ‘cosmetic corrections’. He claimed it included several elements in the direction of greater labour market flexibility, and also stressed that unless it was harmonized with all the social partners, a referendum might be called for.
Jože Smole, Secretary General of ZDS, and Dušan Semolič, President of the Association of Independent Unions of Slovenia (ZSSS), brought to our attention the fact that the government set the date for the agreement about the labour market reform at the end of October. Both of them believed it was not good to rush things and that sufficient time for harmonisation was crucial.
Jože Smole, who presented the proposals and viewpoints of ZDS, stressed at the panel discussion that the negotiations about the labour market reform had started but even if they were intensive, that did not mean that the social partners were successful. At the beginning of negotiations in September it was announced that the harmonisation process would take until the end of the year, but now they were informed that there was time only until the end of October. ZDS feared that it might be difficult to find consensus in such a short period and that consequently the so needed solutions would not be found.
Additional pressure for a successful agreement represented the threat of the unions that in case of lay-offs in the public sector, they would not be willing to continue reform negotiations.
Štefan Grosar, President of the Management Board of the Chamber of Crafts and Entrepreneurship, assessed that Slovenia was at the crossroads and that after twenty years of independence a certain renewal was necessary. He is convinced that we are not capable of protecting the acquired rights and should not insist on the achievements which would suffocate the economy. In his opinion the proposed changes of labour legislation are not strict enough.
Franci Bratkovič, member of the Managing Board of Revoz d.d., mentioned that when Revoz was introducing an extra shift, they employed for fixed term up to 600 workers, which was more than 30% of the total workforce. The Minister received a very clear message, namely: »The proposed 10% restriction of fixed-term employment would prevent the company to enter the competition for the acquisition of new models in the Renault group«.
»In Slovenia we are trying to invent anew warm water«, were the words of Marjan Trobiš, Director of Boxmark Leather d.o.o. He agreed that in Slovenia efforts could be observed in the direction of preserving the post-communist structures, which was very bad. He was also critical about the fact that at the time of negotiations employers were constantly referred to as tycoons or inept individuals, while an image of the employer was missing. The lack of flexibility is hindering the development of companies because they do not have the possibility of adapting to the scope of work they have by employing or laying off workers.
Peter Majcen, President of the Confederation of Unions 90 of Slovenia, warned that the crisis, which was the reason for the proposed changes, had not been caused by the workers' wages or their rights. He claimed the problem was in the banks. He was also convinced that the »fast-track« solutions would lead to social unrest.
Peter Pogačar, General Director of the Market and Employment Directorate at the Ministry of Labour, assessed that harmonizing the labour market reform was one of the greatest challenges the social partners were facing. He emphasized that with the reform the government was trying to lessen the dualism present in the labour market, and above all to improve the situation of the young people. He stressed that the labour market reform was more than just the Employment Relationships Act.
The project SSD-SMM is co-funded by the European Commission.