BRATISLAVA, April 29, (WEBNOVINY) – The National Association of Employers (RUZ) perceives the Cabinet-approved Labor Code revision blueprint as insufficient in terms of labor market solutions. They rebuked the Cabinet for unnecessary concessions it made under the pressure from trade unions. Slovakia, grappling with the third highest jobless rate in the EU, missed its opportunity to find a far-reaching solution to this problem. Employers complain that the amendment imposes more restrictions on them in some cases, for instance, the amended period of notice that increases costs related to layoffs, which will reduce motivation to hire employees.
“We have to say that the Labor Code revision wording approved by the Cabinet won’t restart the ailing labor market in Slovakia and the problem of 400,000 unemployed remains unresolved,” Association’s Vice-President Jozef Spirko. Employers were hopeful that the changes would considerably simplify labor laws and untie the hands of employers, which create new jobs. Spirko mentioned Estonia as an example of how a simplified labor legislation positively influences the labor market. The country managed to reduce the jobless rate by 5 percent in a year thanks to radical measures.
Member of RUZ Presidium Lubos Sirota pointed out that MPs now face a challenge to push through provisions that would bring about more flexibility into the Code and boost job creation. If they fail to use this opportunity, Slovakia will miss the chance to improve the business environment and the situation on the labor market.
Economy Minister Juraj Miskov, too, is discontented with the approved wording. He came to the session with 16 amending proposals but only one was accepted: the cancellation of a six-degree minimum wage scale. The minister will try to push through the changes in the parliament.
Labor Minister Jozef Mihal, however, maintains that the Labor Code revision blueprint negotiated at tripartite meetings is good and balanced. Mihal does not think that the wording approved by the Cabinet on Thursday will cause troubles in the parliament. The only arguable issue may be the severance pay. The minister will meet with representatives of deputy caucuses over the blueprint next week.
SITA