The Slovenia Times

Marathon Negotiations on The Labour Market Reform

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Social partners reached a potential compromise on fixed-term employment contracts, but at the same time opened quite a few new issues in the final round of negotiations on labour market reform on Monday.

It took trade unions, employers and the government nine hours to reach a consensus that would enable employers to employ several people for the same job for up to two years, which should still prevent multiplication of fixed-term contracts.

The initial proposal limited a fixed-term contract for the same job to two years, but an unexpected government amendment changed this so that the limitation would only apply to the same person, a solution already in force in the existing legislation.

The government amendment would enable an employer to hire different workers for the same job on fixed-term contracts for years and years, each for up to two years.

Trade unions criticised the amendment, arguing that it would increase segmentation of the labour market, while employers welcomed it as a right step in the direction of preserving the market's flexibility.

The potential compromise solution would enable employers to employ several people for the same work in case of an increased demand. But after two years, a fixed-term employment on the same position would no longer be possible.

As the negotiations continued late into the night, trade unions and employers opened several other issues.

Jakob Počivavšek of the Pergam association of trade unions cited the unions' demand for notice periods to be reduced to up to 90 days; the government-sponsored motion envisages the longest notice periods to be shortened to 60 days from 120 in the currently valid law.

The unions moreover advocated the idea that the worker who has been reassigned is eligible for the more favourable pay - either under the current employment contract or if the other work is more demanding or better paid under the collective bargaining agreement.

Representatives of employers meanwhile again raised the issue of paid lunch break and bonus for the years of service, which they would like to scrap to become more competitive, while the unions are absolutely against any changes in that respect.

The employment relationships bill and the labour market bill, which make up the labour market reform, will be debated by the relevant parliamentary committee at second reading on Wednesday, which will be the last chance to amend the provisions on the lunch break and years of service bonus.

Once the Labour Committee endorses the bills at second reading, amendments can only be submitted to change amendments, while the articles that have not been amended can no longer be changed.

Social partners will resume talks on Monday when they are expected to return to the issues raised today. Labour Minister Andrej Vizjak promised new compromise proposals for then.

The government hopes for the reform to be passed at the parliamentary session in early March.
 

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