Region: Slovak Parliament passes labor reforms

By Beata Balogová

For The Slovak Spectator

After months of debate, the Slovak Parliament has approved a major revision to the country's Labor Code, but critics both inside and outside government circles say workers are still getting the short end of the stick, which may ultimately keep the bill from being signed into law.

The bill, one of the most closely watched pieces of legislation prepared by the government of Prime Minister Iveta Radičová, makes sweeping changes to the existing code, last modified under former Prime Minister Robert Fico in 2007. The most significant modifications include a provision that allows terminated employees to receive either severance pay or a layoff period prior to termination but not both, longer overtime hours but for less pay, longer periods for fixed-term employment, longer layoff notice periods for employees with seniority, and approval to share one work position among two or more employees.

The bill was approved 74-70 by MPs during the July 13 vote.

Labor Minister Jozef Mihál said the approval of the amendment is good news for Slovakia.

"It is a distinct and very important signal for everyone considering investing in Slovakia or Europe or another country of the world," he told the Slovak News Agency.

Radičová welcomed Parliament's action, as well.

"The Labor Code could boost employment and increase job stability for employees," she said. "The legislation is more accommodating toward employees and families, and it protects those who need it."

Employers reap benefits

Fico, now chairman of the opposition Smer party, told journalists the revised Labor Code benefits employers over workers, and that should not be the law's role.

"Rights in the Labor Code are the property of employees," he said. "The government has taken [them] away."

The amendment passed despite promises from opposition parties to vote against it after many of their demands for the bill were not met.

After MPs from the Christian Democratic Movement (KDH) and Freedom and Solidarity (SaS) did not support independent MP Igor Matovič's proposal for employers to scrap meal vouchers and give employees money directly for meals, Matovič threatened that MPs from his Ordinary People faction would vote against the amendment.

Fico, a vocal opponent of the legislation, blamed Matovič for the bill's passage, stating that the group backed away from its threats.

According to Fico, four MPs from the Ordinary People faction did not attend the vote, and if they had been there and voted against the bill, it would not have passed.

"It had never happened before that in the case of such an important law, the quorum was lowered and the legislation was passed with a smaller than absolute majority vote," Fico told journalists.

The National Union of Employers (RÚZ) said after the vote that the amendment will create better conditions for new jobs, but it also offered objections to some of the changes.

"The revision of some of its provisions is not ambitious enough and does not always reflect all the fundamental demands of employers," RÚZ said in its official statement.

RÚZ was also critical of the introduction of a five-month layoff notice period for employees who have worked for a company for more than 20 years.

Meanwhile, Slovakia's trade union confederation announced it would consider abandoning tripartite social dialogue with the Labor Ministry and representatives of employers, in response to passage of the amendment.

Emil Machyna, the president of the KOVO trade union, said the trade unions may organize protests to apply pressure in the coming months. "These protests can no longer be prevented, now that Parliament has approved a Labor Code that tramples on employees' rights," he said.

If the legislation is signed by President Ivan Gašparovič, the new code will become effective Sept. 1, 2011. Members of the governing coalition have already expressed doubts about whether Gašparovič will sign the bill into law.

Béla Bugár, the chairman of Most-Híd party, one of the governing coalition parties, expects Gašparovič to veto the amendment, which will then require 76 MP votes to override it.

Beata Balogová can be reached at news@praguepost.com