Slovenia: Social partners expected to reach agreement on new Social Pact

Slovenia: Social partners expected to reach agreement on new Social Pact

Ljubjiana, January 19, 2015/ Independent Balkan News Agency

Review Hari Stefanatos

The Slovenian government, trade unions and employers in Slovenia are said to be close to an agreement on a new social pact for 2015-2016, after a five-year hiatus, which could be concluded today or Tuesday, when the deadline expires.

One of the few remaining open issues are the indexation of wages with inflation and productivity growth.

Social partners had been expected to reach an agreement on Friday, but the parties failed to reach an agreement on the exclusion of bonuses from the definition of minimum wage, proposed by trade unions, as employers strongly opposed the idea.

As such, the item was excluded from the social pact, with trade unions deciding to continue the negotiations, stating that they would fight for the redefinition of the minimum wage with other means, including protests.

On the other hand, the three sides have managed to reach an agreement on the taxation of the economy, with employers agreeing in principle with the government’s proposal to put an additional burden on businesses only in case of “force majeure”.

The last major issue that still remains open is the indexation of wages with inflation and productivity. The  problem being that the government is not very warm on the idea of tying wages to the growth of consumer prices.

Should the negotiations conclude successfully today, the social pact for the 2015-2016 period could be signed on the same day or on Tuesday, with the official signing to follow by the end of the month.

This will be the first social pact after five years of negotiations, with the previous one being adopted for the 2007-2009 period, during the tenure of the Janez Janša government.

(Source: Sloveniatimes)