BRATISLAVA, October 13, (WEBNOVINY) — Employers that are members of the National Association of Employers (RUZ) do not agree with the Cabinet approved increase of the minimum wage for year 2011 by three percent. “The increase the Cabinet approved will have a negative impact on further development in sectors with low profitability, creation of new jobs and it will slow down recovery of our economy from the economic crisis,” stated RUZ in reaction to the Cabinet’s decision to raise the lowest wages to EUR 317. According to the employers, in regard to the unfavorable situation in the economy, the minimum wage should have been kept on the level from this year.
The rise of the minimal wages by three percent does not reflect the current economic and social situation in Slovakia, what can result in serious problems on the job market. “The unjustified valorization of the minimum wage was one of the main reasons of collective layoffs already in the past, especially in sectors with low added value,” warned RUZ. In their opinion, continuing minimum wage increase also by the new government and during the crisis as well as growing unemployment send negative signals to domestic and foreign business community about possibilities of economic policy in Slovakia.
“We only need to hope that such trend of adjustment of the minimum wage, in which the new government continues, will be noticed by the smallest number of investors with a potential to employ especially long-term unemployed with low qualification,” said RUZ President Marian Jusko. He pointed out that the growth of the minimum wage lowers Slovakia’s ability to compete in comparison to our neighbors. RUZ suggests that the Ministry of Labor, Social Affairs and Family adjusts the law on the minimum wage in such a way that valorization of the minimum wage reflects the real development of economic parameters and so it would not be possible to increase it during an economic crisis.
The minimum wage in Slovakia will increase to EUR 317 as of next year. On Wednesday, the Cabinet of Prime Minister Iveta Radicova gave a go ahead to the three percent increase in the minimum wage. Leaders of four governing coalition parties agreed on the rise despite employers‘ strong disapproval and protests of representatives of self-governments on Monday. Traditionally, employers rejected the proposal, claiming that every single increase in the minimum wage threatens jobs. They demanded zero growth. In contrast, unions do not share the opinion that the minimum wage growth might cause serious problems with unemployment.
SITA