In June 2006, the employers and trade unions concluded the private sector intersectoral collective agreement on the pay adjustment method, the refund of work-related expenses and the annual leave bonus. The agreement outlines the categories of workers who are covered, and details the pay adjustments that apply, as well as the bonuses for night work, overtime, work on Sundays and annual leave.
On 23 June 2006, the employers and trade unions concluded the private sector intersectoral collective agreement on the pay adjustment method, the refund of work-related expenses and the annual leave bonus (CAMPA). This was the first time that the social partners reached an agreement on pay policy in the private sector without government participation.
Multi-annual tripartite agreements setting the common elements of pay policy have been concluded in Slovenia since 1994, sometimes forming part of a wider social agreement (SI0307101F). Recent private sector pay policy agreements covered the periods 1999–2001, 2002–2004 (SI0206102F), and the last one was concluded on 28 April 2004 when the government, employer organisations and trade unions signed a tripartite ‘Agreement on pay policy in the private sector for the period 2004–2005’ (SI0405101N, SI0405103F).
The CAMPA covers the period from 1 July 2006 to 31 December 2007, and provides for two categories of employers and their workers:
The CAMPA determines the pay adjustment supplement to be disbursed in August 2006 and August 2007 for workers who did not receive such a supplement for whatever reason, due to the fact, for example, that the company is:
• not covered by a sectoral collective agreement – namely in cases where no sectoral collective agreement exists, or where a sectoral collective agreement expired and a new one has not been concluded yet;
• covered by a sectoral collective agreement that does not determine the pay adjustment supplement.
Thus, the CAMPA puts these workers at the same starting level as other workers and prevents them from being disadvantaged. In August 2006, the pay adjustment supplement will total SIT 6,767.00 (€28.24).
The starting pay and minimum basic pay collectively agreed constitute the basis for the application of the pay adjustment for 2006 and 2007.
The partners agreed that starting pay and minimum basic pay will be raised by 2% both in 2006 and in 2007 and will be disbursed together with the August wage payment.
The CAMPA includes a safeguard in the event that the inflation rate in December 2006 (compared with December 2005) would exceed 2.3%, for example because of a tax reform or adoption of the euro. In this case, the pay will be further increased in August 2007 by the difference between the 2.3% forecast inflation rate and the actual inflation rate above 2.3%.
At company level, the employer and the company trade unions can agree on a higher pay increase than 2%. However, they must take into account the productivity growth in the company. Regarding pay, they can also agree on lower standards than those determined by the CAMPA if this contributes to the preservation of jobs. Such a pay agreement, derogating from the CAMPA, can be concluded on a temporary basis for six months or for a period exceeding six months if agreed.
The minimum supplement for night work and overtime work was agreed at a level of 30%. For work on Sundays and during holidays, the minimum supplement was agreed at a level of 50% of the basis determined by the Law on Labour Relations (LLR) (SI0206101N).
Furthermore, the minimum annual leave bonus has been set as follows:
At company level, the employer and the company trade unions can agree on a higher minimum annual leave bonus, provided that company performance is good.
One of the most controversial issues in reaching this agreement concerned the inflation level and the corresponding additional pay rise. At first, the employers proposed a level of 2.4%, meaning that they would only agree to a pay adjustment above this level of inflation. In the end, they made a concession to the trade unions and agreed that they would increase pay once the level of inflation reached 2.3%.
Regarding the pay increases at the last round of negotiations, the employers first proposed 1.8% and the trade unions demanded 2.05%. Finally, a 2% pay rise was agreed.
Štefan Skledar, Institute of Macroeconomic Analysis and Development