Social dialogue & conflict resolution mechanisms

Social Dialogue and Conflict Resolution Mechanisms: conciliation, mediation, arbitration in Estonia, Hungary, Malta, Poland and Slovenia - Workshop

Prague, 29-31 October 2003

Discussion paper - abstract - Metka Penko Natlacen

Independent counsellor
(Bachelor of Arts in Law)

METHODS OF RESOLVING COLLECTIVE LABOUR DISPUTES IN SLOVENIA

Introduction

The government and social partners in Slovenia believe that an important issue, for the relevant field and otherwise, are the mechanisms for resolving disputes in collective labour law relations. The conference in Prague, organised by the European Foundation for the Development of Living and Working Conditions, taking place in October 2003, is intended to present the actual state of affairs and the problems that each of the candidate countries face in this area.

Resolving collective labour disputes has a relatively short history in Slovenia. Disputes over interests and legal disputes have different histories. Moreover, the legal regulations governing them are different.

Social and industrial relations as framework for resolving collective disputes

Social and industrial relations as a framework for resolving collective disputes have been notably changed since 1990, the year when Slovenia gained independence. In 1990, the first general collective contract was concluded in the field of industrial relations in trade activities, and this was followed by the general collective contract for the public sector. In the later years, general collective contracts were renewed on the national level in the enterprise sector in 1993 and 1997. In addition, a renewal of the currently valid labour legislation is now in progress. 27 collective contracts have been concluded for trade activities and 8 collective contracts for public sector activities. Such a wealth of collective agreements is the result of the fact that, after 1990, the number of representative trade union organisations grew on the national level: thus there are now 6, with 18 on the national level of activities. A rich organisation of trade unions soon made necessary a similar organisation on the part of employers. The first association of employers was organised in 1994 for larger economic operators, while an association for smaller economic operators and craftsmen was formed one year later. Labour law in Slovenia makes it possible for the Chamber of Commerce and Industry of Slovenia and the Chamber of Craft of Slovenia to conclude collective contracts, since these two organisations have the status of representative employers’ associations.

It is anticipated that the Collective Contracts Act, now being drafted, will reorganise collective labour relations and parties, as well as the method of settling collective labour disputes, and regulate them in more detail.

In 1994, the social partners and the Government of the Republic of Slovenia established a tripartite body on the national level: the Economic and Social Council. Since it was founded, it has acted as the agency for the coordination of views, especially in the enterprise sector, because its founders are employers’ organisations and trade unions from the field of trade activities. In 1998, a proposal was put forward for the status of the Economic and Social Council to be legally regulated, especially with the amendment that its activities could cover the non-profit activities as well. This ambition has not been realised as yet. Representatives of the public sector participate in this body as observers with the full right to discussion and comments, but not voting. The views taken by the Economic and Social Council are transmitted to the public and to the parliament, but they do not obligate the parliament.

Legal bases for settling collective labour disputes

The legal bases for settling collective labour disputes are regulated in various ways. Resolving collective disputes of a legal nature is regulated by the Strike Act, which, however, does not include the right of the employer to a lock-out. The Act was passed in 1990 and is in need of updating. Representatives of employers have already drawn up a special project: an analysis in which they suggest the content that would need to be regulated by the new Strike Act. The first among the suggestions is of course the right of the employer to a lock-out.

Collective disputes of a legal nature are otherwise settled before a labour court or a social court. The labour court does not hear disputes over interests. Labour courts also have the jurisdiction to rule whether a strike is legal. Disputes heard by labour courts as collective disputes are specifically listed in the Labour and Social Courts Act. Among them are disputes of a group of workers against the employer, disputes over the validity and content of the provisions in collective contracts and disputes over the representation of trade unions.

Since 1990, collective contracts have stipulated that in the event of a dispute between the parties to a collective contract, if the dispute concerns entering into, modifying and amending the collective contract, a conciliation committee or arbitration committee shall decide. The responsibilities of the conciliation committee are defined as a kind of preliminary phase in the arbitration procedure, and are originally regulated in all collective contracts, both for economic activities and the economic sector. The responsibility of the arbitration committee is based on legislation and the decision of the committee replaces the collective contract. This arrangement has remained unchanged to the present day, however, in practice, there are few procedures for collective labour dispute settlement, either in the conciliation process or in the arbitration process.

The most frequent method of resolving collective labour disputes is through committees for the interpretation of collective contracts. These committees are planned for each collective contract, and are intended to prevent disputes from arising. Such a committee is competent to interpret the provisions of a collective contract, so that there are no variations in applying the provisions in practice. Until a settlement of the dispute by a labour court, the decision of the committee is binding for the users of the collective contract as well as for the parties to the collective contract as regards its application. After 1990, most collective contracts have defined as a duty of the parties to make the decisions of the interpretation committee known in the same way as the collective contract.

Appearance of collective labour disputes in practice

The number of collective labour disputes in the decade from 1992 to 2002 can only be estimated, because official and exact information could only be provided by court statistics. However, there is no statistical or other information available about the number of strikes or any possible number of participants in strikes, the duration of strikes or the reasons for them. The most exact data concerning these issues can be found in the investigation by the Chamber of Commerce and Industry of Slovenia from the years 1999-2000.

Collective and labour disputes began to be treated as legal disputes before labour and social courts in 1994. There are approximately 20 to 50 cases each year.

Methods of resolving collective labour disputes

The methods used by parties in resolving collective labour disputes do not appear in practice as a clear-cut version of either conciliation, mediation or arbitration. In fact, conciliation and mediation are often joined, because the conciliation committee first influences the parties to find a possible solution on their own. If this phase is unsuccessful, conciliators will often propose possible solutions to the dispute themselves. In practice, such proposals are ill-received.

If the arbitration procedure is started, it is conducted more formally than conciliation, and is more similar to a judicial procedure. In general, it is more in the legal tradition of Slovenian citizens to have a neutral body decide the matter by itself and achieve a competent ruling. In practice, there have been a few successful arbitration procedures in connection with a large number of redundant workers and in cases of disputes between the workers’ council and the employer. In the latter case, the Worker Participation in Management Act stipulates in a special chapter the method of solving disputes through arbitration, if the workers’ council and the employer are in disagreement about carrying out individual provisions of the Worker Participation in Management Act.

Conclusion

During the time of drawing up the last social agreement in Slovenia in the year 2003, the social partners expressed a strong interest in promoting the informal method of resolving collective labour disputes. It was agreed that the state would co-finance the expenses incurred by presidents of institutions for peaceful settlement of collective disputes. It can be said with certainty that this is the only way to promote resolving disputes in an informal manner.

In 2002, EIRO prepared an interesting comparative study between candidate countries about resolving labour disputes, including Slovenia.