Are you aware of the amendments to the collective agreement in your industry?
The provisions of the new Collective Agreement for Road Passenger Transport in Slovenia for 2018 are identical to those of the previously applicable collective agreement from 2017. On the other hand, the Collective Agreement for Graphic Design Sector, which entered into force on 1 January 2018, changed radically. The said agreement is binding to all employers who are members of either GZS (the Chamber of Commerce and Industry of Slovenia) or ZDS (the Association of Employers of Slovenia) and their core business is printing, bookbinding or similar activities. In the new agreement, among other things, the basic minimum wage has been increased by 10.8%, the amounts of some allowances for less favourable working conditions (e.g. night shift, over-time) have been decreased, there is no longer a minimum prescribed amount of allowances for work in unfavourable conditions, a gradual transition toward bonuses based on the period of employment with a last employer has been introduced, the definitions for the portion of wages based on work and business performance have been changed and the amount of labour costs and other workers’ remunerations have been changed and adjusted to the amounts and terms of payment pursuant to the tax regulations.
Owing to the termination of the Collective Agreement for Road Management Activities, this collective agreement ceased to apply on 16 January 2018. The competent Minister of Labour established a partially extended applicability of the Collective Agreement for Workers and Companies in the Small-Business Sector. As a result, all employers whose core business is classified under section 85.530 – Driving Schools, are bound by the provisions of this collective agreement in relation to workers’ rights and obligations regardless of whether they are members of the signatories or not.
Employers must also pay attention to the basic minimum wage increase at the beginning of 2018. If the collective agreements lay down automatic adjustment of the basic minimum wages based on consumer price trends, employers must verify the percentage and the month of the basic wage increase. In some sectors, however, the social partners agree on wage adjustments from time to time. This was the reason for the amendments to the collective agreements in the following sectors: the electrical industry, trade, the metals industry, the hospitality and tourism industries, public utility services, the construction and paper converting industry. This item only summarises the most essential new developments; for a more detailed report on these amendments please contact our lawyers.
In October 2017, the social partners in the electrical industry concluded Annex no. 11 to the Collective Agreement for Slovenia’s Electrical Industry, which has been in force since 1 November 2017 and must be respected by all employers in the electrical industry. The said annex increases the basic minimum wages by 2.0% for the individual remuneration bracket and the minimum amount of annual leave pay, which is now EUR 856.80. Furthermore, with this annex, the social partners abolished specific additional workers’ benefits that no longer had their basis in the applicable legislation, such as the workers’ right to priority employment if their employment contract has been terminated on operational grounds, a shorter notice period in case of termination of the employment contract on the grounds of incompetence; the definition of the period of employment has also changed.
In the trade industry, Annex no. 3 to the Collective Agreement for Slovenia’s Trade Sector (KPDTS) was concluded, which has been in force since 1 January 2018 and is binding for all employers whose core business is a trade activity, since this Collective Agreement has extended applicability. The annex introduces new rules regarding the question of organising work schedules in case of uneven distribution and temporary redistribution of work time and, in particular, it increases the allowances for possible surplus hours of workers after the reference period ends. As far as the work on Sundays and holidays is concerned, the negotiating parties agreed on an absolute ban of work for the protected categories of workers; other workers, however, may work on Sundays, but only up to a maximum of 15 Sundays annually and a maximum of 2 Sundays per month. In the event of violations of these provisions, very strict sanctions apply. There is also a new rule that overtime pay on Sundays shall not be less than EUR 5.40 per hour, the overtime allowance being higher, at 250% of the basic wage, for work on public holidays.
The new Annex no. 2 to the Collective Agreement for Slovenia’s Metal Sector was concluded; it has been in force since 25 November 2017 and is binding for all employers in the metal industry. With this annex, the social partners increased basic minimum wage and minimum annual leave pay, currently amounting to EUR 850.00.
In November 2017 a new Annex to the Collective Agreement for the Hospitality and Tourism Industries (KPDGT) was concluded and is applicable to all employers in the hospitality and tourism industries. With the annex in question, the negotiating parties agreed on a significantly higher basic minimum wage (up to +15% for individual remuneration bracket) that employers must take into account when paying wages from January to April 2018. The Collective Agreement for the Hospitality and Tourism Industries (KPDGT), in fact, ceased to apply at the end of 2017; however, its operative part will continue to apply until April 2018. It is expected that the social partners will extend the applicability of the operative part of the Collective Agreement until a new one is concluded, unless a new agreement is concluded beforehand.
The negotiating parties in the field of public utility services concluded the new Tariff Annex to the Collective Agreement for Public Utility Services, which has been in force since 1 January 2018 and is binding for all employers that are members of the GZS (Chamber of Commerce and Industry of Slovenia) and ZDS (Association of Employers of Slovenia). The annex lays down a basic minimum wage increase of 1.7% as well as an increase in annual leave pay, amounting to at least EUR 1,030.00 (previously EUR 990.00) in 2018. Furthermore, the commission responsible for the monitoring of implementation and interpretation of this Collective Agreement recently gave interpretation in relation to several individual articles of the Collective Agreement.
At the end of December 2017, social partners in the field of construction concluded Amendments and Supplements to the Collective Agreement for the Construction Industry, by which they increased basic minimum wage by 2.1% (for 174 hours of work) for each remuneration bracket from December onwards. These amendments are binding for employers that are members of the GZS (Chamber of Commerce and Industry of Slovenia) or ZDS (Association of Employers of Slovenia) because this Collective Agreement does not have general applicability.
The employers in the paper converting industry must take notice of the 3.5% basic minimum wage increase brought into force in January 2018, laid down in Annex no. 2 to the Collective Agreement for the Paper Converting Industry due to its extended applicability.
