In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in Slovenia, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.
In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
In this context, in February 2005 the EIRO national centres were asked, in response to a questionnaire, to give a brief overview of the industrial relations aspects of the topic of unskilled workers. The following distinctions are used, where applicable:
(a) an unskilled job is a job which requires, for its proper execution, hardly any formal education and/or training and/or experience;
(b) a worker in an unskilled job is a worker doing such a job, irrespective of their level of qualifications or competences (especially under conditions of high unemployment, a significant share of those occupying unskilled jobs may be 'overeducated' for them, or 'underemployed'); and
(c) an unskilled worker is someone who has only the lowest level of qualifications or education (however defined).
The questionnaire examined: national definitions of unskilled workers or work, including those used or provided in laws, statistics or collective agreements; figures or estimates on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework, including any specific laws or collective agreements, and trade union organisation among unskilled workers; the pay and conditions of unskilled workers and workers in unskilled jobs, or for unskilled jobs; any recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining. The Slovenian responses are set out below (along with the questions asked).
Definitions and extent
(a) Please provide a definition of unskilled workers or work (see distinctions above) in your country. Are there any definitions provided in laws, statistics or collective agreements?
The Statistical Office of Republic of Slovenia (SORS) defines educational attainment (formal education) as 'the level of education acquired by such a person upon completing an appropriate school after sitting for exams or receiving recognition based on course work', that can be demonstrated by 'a general legally and formally recognised document diploma, certificate, degree'. The group with the lowest category of educational attainment can be regarded as unskilled workers - ie those with no education or having completed only one to three grades of elementary school.
SORS defines occupational skills as follows: 'skills for performing certain types of work and certain tasks are represented by the necessary level of professional knowledge and the fulfilment of other conditions (professional qualifications, experiences etc), which someone must have to perform works and tasks successfully'. Those with the lowest category of occupational skill can be regarded as unskilled workers.
The 1997 'general collective agreement', in Article 7 ('classification of work'), classifies work positions in nine 'tariff classes' according to the required vocational education. The lowest tariff class (class 1 - 'simple work') is defined as 'positions of employment for which no training is needed and incomplete primary school is sufficient'.
In the contents of collective agreements, the level of professional education/tariff class influences: the distribution of work tasks (with simple functions for the lowest group - routine tasks of short duration that can be performed using simple procedures and simple work tools); the classification of pay groups (in the lowest pay group are workers with an incomplete primary school educaiton and minimal skills); the duration of the trial period (one month for the lowest group); the duration of annual leave (workers in the lowest group receive no additional days of leave related to attendance at work); the duration of notice periods (one month for the lowest group); and rules on redundancies.
(b) Are there any figures or estimates available on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work. How have these figures changed in recent years - have changing skill needs or improvements in education/training systems led to a reduction in the numbers of unskilled jobs, unskilled workers and workers in unskilled jobs? Please break all figures down by gender where possible.
(c) Please provide figures on employment and unemployment rates for unskilled workers, compared with higher-skilled groups. Have unskilled workers/workers in unskilled jobs been particularly affected by industrial and company restructuring? Have new jobs created in recent years been filled by unskilled workers? Please break all figures down by gender where possible.
The extensive structural changes in the Slovene economy in the 1990s caused unemployment to grow. The highest unemployment rate after Slovene independence was reached in 1993 (137,000 people) and since then it has been decreasing. There were 95,993 registered unemployed people in 2003 and 90,685 in the first three quarters of 2004. At the beginning of the 1990s, unemployment was higher for men then for women because the transition did not much affect the service sector and state institutions where most women were employed, while many male-dominated industries were closing down. Many of those who lost their jobs in these industries had a low and inappropriate education and had no knowledge and skills that would enable them to find work in fields and sectors that offered new employment (mainly in services). That resulted in growing numbers of unemployed people with the lowest levels of educational attainment. The situation was improved in the first years of the current decade, as the number of redundancies was much lower than in the 1990s. However, as some industries are currently facing difficulties (eg the textile and shoe industry), this will create new challenges on the labour market. In spite of some improvements, the difficult employment situation of persons without (appropriate) skills is still an important problem.
According to data from the SORS, at the end of 2003 there were 110,084 unskilled workers (60,138 men and 49,946 women) in paid employment in enterprises, companies and organisations. At the end of 2002, there had been 113,758 unskilled workers (62,102 men and 51,656 women); at the end of 2001, 116,159 (63,033 men and 53,126 women); and at the end of 2000, 118,668 (63,701 men and 54,967 women). There has thus been a constant downward trend in the number of unskilled workers employed in Slovenia.
According to the Ministry of Labour, Family and Social Affairs (MLFSA) the proportion of unemployed people without a basic vocational education stood at around 47% in 2000 to 2002, falling to 44.2% in 2003 and 42.4% in the first six months of 2004.
Data from the Employment Service of Slovenia (ESS) show that on 31 December 2004 there were 32,262 unemployed people with the lowest level of education (16,120 of them were women). There has been continuous decrease in the number of unemployed people with the lowest level of education: 51,245 at the end of 1997 (26,150 of them women); 46,371 at the end of 1999 (24,323 of women); and 39,130 at the end of 2002 (19,826 women). ESS data show that share of long-term unemployed with the lowest educational attainment has fallen from 51.8% in December 1999 to 52.5% in December 2001, 50.2% in December 2003 and 47.9% in September 2004.
Analysis of trends in the employment of formerly unemployed people shows that employers are increasingly seeking a better educated workforce: while the share of formerly unemployed people with a VII level of education increased from 5.6% in 2000 to 10.0% in the first half of 2004, the share with a I-II level of education significantly decreased after 2000. The improvement of the educational structure of the unemployed population was achieved mainly because of active employment policy programmes, introduced in 2003, in which a majority of unemployed people participated (mostly in educational and training programmes).
The unemployment rate was in the second quarter of 2004 highest among people without any school education or with incomplete elementary school (12.1%). Among those with university degrees, the unemployment rate was 2.9%.
According to SORS, the educational attainment of people in employment was (in the second quarter of 2004) better than that of unemployed people: 16.9% of people in employment had the lowest level of education (elementary school, incomplete elementary school or no education), while their share among unemployed people was 27.5%.
Tables 1-3 below provide SORS data on the labour force, employment and unemployment, by levels of educational attainment.
| . | 000s | % | ||
| 2003/2 | 2004/2 | 2003/2 | 2004/2 | |
| 1. Total | 959 | 1007 | 100.0 | 100.0 |
| Men | 519 | 543 | 100.0 | 100.0 |
| Women | 440 | 464 | 100.0 | 100.0 |
| 2. No school education or incomplete elementary school | ||||
| Total | 19 | 19 | 2.0 | 1.9 |
| Men | 11 | 11 | 2.1 | 2.1 |
| Women | (8) | (8) | (1.9) | (1.8) |
| 3. Upper-secondary professional education | ||||
| Total | 278 | 296 | 29.0 | 29.4 |
| Men | 142 | 151 | 27.3 | 27.7 |
| Women | 136 | 145 | 31.0 | 31.3 |
| 4. Higher professional and university education | ||||
| Total | 108 | 121 | 11.3 | 12.0 |
| Men | 45 | 51 | 8.6 | 9.4 |
| Women | 63 | 70 | 14.4 | 15.1 |
( ) = less accurate information.
Source: SORS.
The share of women among the labour force with no school education or incomplete elementary school education was 43.2% in the second quarter of 2003 and 42.0% in the second quarter of 2004.
| . | 000s | % | ||
| 2003/2 | 2004/2 | 2003/2 | 2004/2 | |
| 1. Total | 896 | 946 | 100.0 | 100.0 |
| Men | 488 | 511 | 100.0 | 100.0 |
| Women | 409 | 434 | 100.0 | 100.0 |
| 2. No school education or incomplete elementary school | ||||
| Total | 17 | 17 | 1.9 | 1.8 |
| Men | (9) | (10) | (1.9) | (1.9) |
| Women | (7) | (7) | (1.8) | (1.6) |
| 3. Upper-secondary professional education | ||||
| Total | 263 | 280 | 29.4 | 29.7 |
| Men | 135 | 144 | 27.8 | 28.1 |
| Women | 128 | 137 | 31.3 | 31.5 |
| 4. Higher professional and university education | ||||
| Total | 103 | 118 | 11.5 | 12.4 |
| Men | 43 | 50 | 8.9 | 9.8 |
| Women | 60 | 68 | 14.8 | 15.6 |
( ) = less accurate information.
Source: SORS.
| . | 000s | % | ||
| 2003/2 | 2004/2 | 2003/2 | 2004/2 | |
| 1. Total | 63 | 61 | 100.0 | 100.0 |
| Men | 32 | 31 | 100.0 | 100.0 |
| Women | 31 | 30 | 100.0 | 100.0 |
| 2. No school education or incomplete elementary school | ||||
| Total | ((3)) | ((2)) | ((4.1)) | ((3.8)) |
| Men | ((2)) | ((2)) | ((4.8)) | ((4.2)) |
| Women | ((1)) | ((1)) | . | ((3.4)) |
| 3. Upper-secondary professional education | ||||
| Total | 15 | 15 | 23.8 | 25.3 |
| Men | (7) | (7) | (20.9) | (22.2) |
| Women | (8) | (9) | (26.6) | (28.5) |
| 4. Higher professional and university education | ||||
| Total | (5) | ((3)) | (7.3) | ((5.7)) |
| Men | . | . | . | . |
| Women | ((3)) | ((3)) | ((9.9)) | ((8.5)) |
( ) = less accurate information; (( )) = inaccurate estimate; . = not zero, but extremely close.
Source: SORS.
Regulation and conditions
(a) Is there a specific regulatory framework in your country concerning unskilled workers and workers in unskilled jobs (however defined)? Are there specific laws or collective agreements? Are there specific trade union organisations for them, or are they represented in 'normal' union structures. Have there been any changes in these area reflecting the changes referred to in question (b) under 'Definitions and extent' above?
No, there are no special laws, trade union organisations or collective agreements for unskilled workers. They are represented in 'normal' trade union structures. As noted above (under 'Definitions and extent'), collective agreements provide for some differentiation between workers based on skill/qualification levels.
(b) Please provide any figures available for the pay of unskilled workers and workers in unskilled jobs, or for unskilled jobs, and the relationship of this pay with the average or with higher-skilled groups. Do collective agreements contain specific pay grades for unskilled workers, or workers in unskilled jobs? Please break all figures down by gender where possible.
The 'tariff enclosure' to the 1997 'general collective agreement' defined the starting level wage (for full working time) for tariff class I (ie simple work) at SIT 47,978 per month from June 1997. This monthly starting-level wage had risen to SIT 71,883 (gross) or SIT 51,497 (net) by September 2004. The starting-level wage for a particular tariff class, as determined in the tariff enclosure to the general collective agreement, is the lowest basic wage for 'typical' jobs.
The statutory minimum wage (SI0405102F) has since August 2004 stood at SIT 117,500 per month.
Average monthly gross pay for unskilled workers in 2002 was, according to SORS, SIT 128,443 - SIT 137,513 for men and SIT 122,181 for women - while average monthly gross pay for employed people with secondary education was SIT 218,037 - SIT 228,060 for men and SIT 209,273 for women. An analysis by the Chamber of Industry and Commerce of Slovenia (Gospodarska zbornica Slovenije, GZS) has found that over 1999 to 2002 the pay of unskilled workers increased more than pay on average, and that over the same period there was a trend for the differentials between the gross pay of workers with different levels of educational attainment to narrow.
The average monthly gross earnings of workers without education or having completed one to three primary-school grades were, in 2002, SIT 140,184 - SIT 158,090 for men and SIT 113,419 for women - compared with total average monthly earnings for all educational levels of SIT 235,963 - SIT 246,717 for men and SIT 223,921 for women.
A recent income tax law introduces some changes that are relevant for unskilled workers, who usually receive low pay. People with a lower income will pay relatively less taxes than people with a higher income. The new law will decrease the tax burden on labour (which is important for labour-intensive activities that employ unskilled workers).
(c) Are there any differences between unskilled workers/workers in unskilled jobs and higher-skilled groups in terms of access to other benefits, social security, pensions, etc? Please break all figures down by gender where possible.
There are no differences between unskilled workers/workers in unskilled jobs and higher-skilled groups in terms of access to benefits, social security, pensions etc.
Actions and views
(a) Please describe any recent initiatives taken jointly or separately by companies, public authorities (national or local) or the social partners (eg collective agreements) to address the situation and improve the situation of unskilled workers in terms of pay, working conditions, training, employability, unemployment etc.
A national plan for the development of the labour market and employment up until 2006, adopted in 2001, identified several problems related to the education and skills of the active population: too great an inflow of unskilled people from the school system; a lack of suitable institutions taking modern approaches to the education and re-education of the active population; and insufficient inclusion of adults in education and training programmes. The plan laid down strategies and targets to be achieved in order to resolve these problems.
The 2004 National Action Plan (NAP) for employment also seeks to improve the position of unskilled workers, who are defined as one of target groups in the NAP. According to the NAP, special attention is to be paid to measures for increasing the capabilities of those people employed in potentially threatened work positions, in order to ensure the long-term retention of employment and the ability of unemployed people to adapt to the needs of the labour market, and to increase employability. For example, MLFSA has since 2003 carried out a special active employment policy programme (first for textiles and related activities, and later for other labour-intensive branches) aimed at creating jobs with higher added-value in traditional branches and introducing the vocational training and qualification programmes required.
In 2004, in order to increase the employment of target groups (unskilled workers among them), special measures were adopted to encourage the employment of long-term unemployed people - such as one-off subsidies, and exemptions from the payment of social security contributions for employers employing unemployed people over 55 years of age.
It is stated in the NAP that the government will encourage the establishment of 'social companies' and cooperatives aimed at improving the employment chances of workers with lower qualifications.
The NAP sets the following ambitious aims regarding unskilled workers: that at least 4% of unemployed and employed people without vocational or professional education should acquire national occupational qualifications; that the adult population's educational level should be increased by 2010; and that at least half of those without primary school education should finish such education as adults.
Training and educational programmes aimed at increasing the level of education/skills of unemployed people form an important part of active employment policy programmes in Slovenia - these include advanced and basic training programmes, 'Programme 10,000 ' for the acquisition of national occupational qualifications and certification by unemployed people, and workplace training. According to the MLFSA, in 2004 the number of unemployed people participating in programmes of education and vocational training and the acquisition of occupational qualifications doubled compared with the year before. Programme 10,000 (which succeeded an earlier Programme 5,000 ) is aimed at allowing unemployed people to acquire publicly accredited education. The programme is prepared by the MLFSA and Ministry of Education, Science and Sport, while the type and number of vacancies for students are determined on the basis of an assessment of the demand for labour and education at local/regional level, drawn up by regional offices of ESS in collaboration with local units of ZDS. The programme is primarily intended for unemployed people without vocational and professional qualifications, especially young people (under 26), people over 40 who have not completed their vocational or professional training, and people with vocational and professional qualifications who are unable to acquire employment in their occupation and have been registered with the ESS for more than six months. Participants without qualifications have always been in the majority on this programme, but their share has been decreasing since 1999-2000 (when it was 63.1%). In 2000-1 it was 60.9%, in 2002-3 it was 59% and in 2003-4 it was 54.2%.
(b) Please summarise the views of trade unions and employers’ organisations on the issue and its implications for collective bargaining.
The views of social partners considering issues relevant to the problems of unskilled workers are set out in the 2003-5 tripartite social agreement (SI0307101F), in which both employers and trade unions agreed that they would support investments in knowledge and new technologies and increase awareness of the need for continuing education. In the field of vocational and professional education, the partners committed themselves to supporting greater openness of educational programmes. The government committed itself to provide the conditions for strengthening the educational role of employers - providing budgetary funds to allow participation in European Structural Funds, establishing regional councils for the development of human resources, promoting the introduction of a certification system and introducing further improvements in the field of adult education. Employers will, according to the social agreement:
strengthen their own educational role - devoting more funds and attention to additional training and education of employees so that they can adapt faster to new challenges and technology at work, opening training workplaces, training mentors for apprentices, pupils and students, and establishing intra-company centres for practical training; and
cooperate with schools at regional level (determining the open part of the curricula) and with the competent ministry - determining and shaping courses of study, and proposing new vocational standards and catalogues of standards of professional knowledge and skills.
The trade unions committed themselves to: increasing the awareness among workers of the need for continuing education; encouraging and supporting them in their efforts to improve and extend their skills and knowledge; and encouraging professional workers to be trained as mentors and to become members of the commissions for the examination and certification of knowledge for awarding national vocational qualifications. Trade unions should also take part in evaluation of vocational education (in interim tests and in the practical part of the final examinations of apprentices and pupils) and in the examination and certification of national vocational qualifications. All three parties should actively promote lifelong learning. Employers are to create new jobs and modernise work organisation while trade unions will encourage and motivate employees and unemployed people to contribute actively to their employability (through continuous education, striving for a successful modernisation of work etc)
The active role of employers in education is also defined in legislation concerning education (the Organisation and Financing of Education Act 2003, Act Amending the Vocational and Technical Education Act 2000 and Act Amending the National Professional Qualifications Act 2003). The ZDS should be active in defining educational demand, preparing professional nomenclatures, and preparing and executing vocational training and apprenticeship programmes.
Comments
The problem of restructuring of Slovene industry has been creating problems for the employment (and thus social inclusion) of unskilled workers. The government has taken the most active role in tackling the problems until now. However, it would be helpful if trade unions and employers would take a more active role in supporting a learning culture and the broad involvement of the active population in knowledge/skills-building programmes and actions as ways of resolving problems of employability and competitiveness. (Aleksandra Kanjuo Mrčela, Organisational and Human Resources Research Centre, OHRC)
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Thematic feature - unskilled workers, article.
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