Labor market flexibility
Labor market flexibility is a precondition for a more competitive economy. At the same time, economic competitiveness is needed to balance the situation on the entire labor market.
Slovenia needs to have a healthy, stimulating education system that will promote open-minded, creative, innovative, multidisciplinary thinking, financial literacy and entrepreneurship, development of social skills, and provide the knowledge employers need now and in the future.
Existing legislation already provides several forms of work, which allow employers to adapt quickly to market conditions. In doing so, we often neglect that these different forms of work also allow labor market participants (potential employees) to find the most appropriate form of work for themselves.
The key is to inform both sides (employers and employees) of the different forms of labor, while at the same time reflecting on the appropriateness of taxes and contributions for particular forms of labor.
The process of employment termination also plays an important role in labor market flexibility. The process must be quick and more cost-effective. We propose a tax (and fees) exemption for the agreed amount of cash compensation in the event of a mutually agreed employment termination, at least up to the amount provided for in the event of termination of the employment contract for business reasons or due to incompetence (as per the Slovenian Employment Relationship Act). Greater flexibility on the labor market could also be ensured by no longer allowing reintegration, which opens the possibility for the employer, if the termination contract is found to be illegal, only being obliged to pay a fixed amount of compensation.
a) Transfer of knowledge and jobs: We emphasize the importance of knowledge transfer between all generations as the basis for intergenerational understanding and cooperation.
Young people must understand that older generations have amassed invaluable experience that is worth learning from. At the same time, the older generation also needs to understand the ever-increasing retirement age, the digitalization processes, information technology and robotics (Industry 4.0). They must understand that they will need different skills than before to carry out their work.
We support measures that aim to create working environments in which employees will want to work in harmony, despite age differences. It is worth highlighting best practices in the field of knowledge transfer among generations, for example mentorship programs.
b) A stable and sustainable pension system
Today's reality of the pension system, with its planned reforms, offers no incentive for employees, especially young people, to join the pension schemes and pay contributions for compulsory pension and disability insurance, from which current pensions are being funded. Therefore we encourage the public debate on the future of pension reform, which should come into force in 2020, to include a wide circle of stakeholders, in particular the younger generation, who need to receive clear guidelines with regard to the direction in which the Slovenian pension system is moving and with regard to the amount of their own expected pensions in the future. Predictability and stability of the system are key to creating long-term confidence, without which the intergenerational contract, on which the Slovenian public pension system is based, cannot be sustained.
Matic Vošnjak, COMPETO
Klavdija Erjavec, AVBREHT ZAJC IN PARTNERJI