"With one step, wage policy in the private sector is handed over to the ruling political country or option at all times. With this article, the proposer breaks the existing system of the entire wage system in Slovenia, destroying the wage definition in accordance with the labor relations law, fully eliminate social dialogue at the level of mutual agreement, while at the same time increasing the cost of working in the company for two or even three digit numbers! " in an open letter to Marjan Šar, representatives of the National Assembly and competent ministers, directors and heads of government in Slovenia were recorded.
In early November, a new law on minimum wages was introduced from the Levice side, which did not (only) increase minimum wages by more than 5 percent (such as the ruling coalition, trade unions and the majority of the public wanted to describe). The new law proposal violates wage policies in the economy, equating minimum basic wages totaling 886.63 (from 1 January 2019) and adding all benefits (according to laws, other regulations and collective agreements), performance and part of wages from business success. As a result, the minimum basic salary under a joint agreement increased from 28 to 170 percent. With this Act, the state or politics will make decisions about the level of salaries in the economy in their hands.
At the initiative of the members of the Slovenian Employers' Association (activities), the Open Letter was prepared, which was sent to the Prime Minister, Members of Parliament and three ministers on Wednesday, November 28, with the signatures of the directors and heads of business directors in Slovenia. On Thursday, the bill will be decided by the government.
We open open letters in full.
"An open letter to the Prime Minister of the Republic of Slovenia, National Assembly Member, Minister of Labor, Family, Social Affairs and Equal Opportunities, Minister of Economic and Technology Development and Minister of Finance
Ljubljana, November 26, 2018
Dear Prime Minister, Mr. Marjan Šarec,
Honorable Member of the Republic of Slovenia National Assembly,
Dear Minister, mag. Ksenija Klampfer,
Dear Minister, Mr. Zdravko Počivalšek,
Dear Minister, Dr. Bertoncelj,
When on November 7, 2018, the United Left, supported by the signatures of 52 coalition deputies, was submitted to the National Assembly a bill that changed the Minimum Wage Act without considering one of the main stakeholders, namely the economy or employer, and when our arguments were not heard by government representatives within the framework of the Economic and Social Council, we see it as the only way to convey our views and arguments in the form of this open letter.
WHY PROPOSAL TO CHANGE LAW IN MINIMUM PROFIT IN THE ECONOMY?
Parliamentary amendments to the Minimum Wage Act contain several changes to the current law, however, we can categorize these changes based on relevance.
The key change we want to show with this open letter, however, is critically increasing labor costs, destroying the wage system, creating a balance sheet, and deciding the wage level in the economy, putting it in the hands of the state or every politician. This key change is stated in Article 1 of the draft law: "Benefits determined by other laws and regulations and collective agreements, part of payment for performance and payments for business performance are not included in the minimum wage."
- The amount of wage increase is due to the new definition of minimum wages
The bill contains key changes from the system, but the policy does not, or does not, want to recognize and recognize. This change is directly related (from 1.1.2019!)
- elimination of all legal stipulated benefits, other regulations and collective agreements (additional for years of work, shift work, etc.),
- further elimination of part of the salary for the performance of the minimum wage
- and also the exclusion of part of the salary from business success from the minimum wage.
Law (minimum wage) and every political decision will thus determine the minimum basic salary of an employee. Or even simpler, the state will determine the first tariff class of the minimum base wage under all collective agreements.
The minimum basic salary of the class I tariff will therefore increase from 1.1.2019 from at least 28% to 170%! All of this will be needed under a bill to calculate all allowances under the law, other regulations and collective agreements, work performance and business performance, which leads to a large increase in labor costs in the company!
Sectoral collective agreements, which have so far set minimum standards for wage policies, thus losing all their interests and roles.
- Wages and balance destroyed
Pay increases for individual employees, because the definition of a new minimum wage will also damage the ratio between other wages – that is, the result of balance. The top five currently six tariff classes are combined into one tariff class, in three agreements together activities even all 9 class tariffs!
Workers in more demanding workplaces will receive lower salaries for full-time workers than workers in less demanding workplaces, whose benefits, employment and business performance will be excluded from the minimum wage. So, this is another form of "balance" and employee error in terms of fair compensation after work.
- The state will determine the economic wage policy
In one step, wage policy in the private sector is left in the hands of the state or in every political option in power. With the submission of this article breaking the existing system of the entire wage system in Slovenia, destroying the definition of wages in accordance with the law on employment relations, fully denying social dialogue at the level of mutual agreement, and at the same time directly increasing the cost of work in the company for two or even three digits!
The proposer does not submit a single consequence calculation in the economy, or a new salary model simulation model for a particular company, which clearly shows the full ignorance of this problem in the economy.
WE HAVE A GREAT POSITION OF COUNTRIES TO BE ECONOMIC, WE DO NOT ACCEPT!
The law amending the Minimum Wage Act brings unsustainable consequences for business and prevents business and job creation in Slovenia.
Economic activity also subsided in Slovenia. All forecasts of global and European institutions confirm what we have felt in business. In any case, we cannot switch to cost pressures caused by the new definition of minimum wages in the prices of our products.
We believe that much higher economic growth (from now on) does not convey such intrusion into business provisions by policy.
In addition, the proponents want to introduce this change starting January 1, 2019, when we are only one month from the imagined enforcement. With the type of uncertainty and aggravation of business conditions imposed on the economy by our own country, we cannot compete in either the domestic, European or international markets, and therefore we are strongly rejected.
RELATIONSHIP FOR EMPLOYEES TO THE GOVERNMENT PRESIDENT OF THE SLOVENIA REPUBLIC, MEMBER OF THE NATIONAL REPUBLIC OF SLOVENIA, MINISTRY OF WORK AND ECONOMIC DEPARTMENT
Underselling entrepreneurs, entrepreneurs, we hereby invite the Prime Minister of the Republic of Slovenia, all Members of the National Assembly of the Republic of Slovenia, Minister of Labor, Minister of Economic and Technology Development and Minister of Finance, to propose, in accordance with the economic arguments above, the Bill amending the Law The minimum wage is rejected because it is not sufficient for further consideration.
Marjan Trobiš, Director of Boxmark Leather d.o.o. "