Slovenia: Role of social dialogue in industrial policies

  • Observatory: EurWORK
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  • Published on: 02 Rugsėjis 2014



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Social partners in Slovenia are almost always involved in the discussion about public policies. They give their views and opinions regarding national strategies, action plans and other important documents such as Slovenian industrial policy, which has been discussed by social partners, representatives of business, academia and the Ministry of Economic Development and Technology. But less often are social partners actively involved in the shaping of industrial policies and being able to contribute to their outcomes.

Part 1: Overall role and involvement of social partners in industrial policy in the national context

Industrial policy is in this context used in its broader sense as…

those policies that have an impact on the cost, price and innovative competitiveness of industry and individual sectors, such as standardisation or innovation policies, or sectoral policies targeting e.g. the innovation performance of individual sectors.

COM(2010) 614 An Integrated Industrial Policy for the Globalisation Era Putting Competitiveness and Sustainability at Centre Stage. EC 2010

The policy instruments are then defined as the method or mechanism used by government, political parties, business or individuals to achieve a desired effect, through legal or economic means.

Industrial policy initiatives are often undertaken unilaterally by the government but other forms may include social partners in different constellations, including:

  • bipartite initiative (a common approach by the social partners);
  • tripartite initiative (the social partners in tandem with the public aut horities);
  • tripartite+ initiative (the three stakeholders in combination sometimes with other civil society players such as NGOs, research centres or qualified figures);
  • public-private partnership initiatives (one social partner and the public authorities); and
  • unilateral initiatives by a single social partner

  Is there in your country currently a policy framework to stimulate investments that both create economic growth and employment? Tick Yes/No

Table 1

Policy framework

Yes

No

Economic growth

X

 

Employment

X

 

Both economic growth and employment

X

 

Competitiveness

X

 

Ministry of Economic Development and Technology (MGRT) recently presented two important strategic documents, “Strategy of Smart Specialisation of Slovenia for 2014-2020” and “Development Strategy of Slovenia for 2014-2020” which are still in the process of public discussion. Strategy of Smart Specialisation presents a research-innovation strategy for the stimulation of economic growth, economic transformation of regions, structural reforms and transition to the new model of economic development. Development Strategy of Slovenia identifies three horizontal development priorities; research, development and innovation; start-up, growth and development of small and medium-sized enterprises and employment, education, training, investment in knowledge and skills (young and old) for which the Government predicts to spent 50% of the development spending available in 2020

Policy framework that stimulates investments presents National Reform Programme 2013-2014, adopted in May 2013, which envisages introduction of measures for better market conditions and openess of business environment. A new public agency SPIRIT Slovenia, responsible for the promotion of entrepreneurship, innovativeness, development, investments and tourism, has been created in 2013 in order to provide support for the investors who search for business opportunities and partnership with foreign investors. Agency SPIRIT will in 2013 and 2014 support 18 projects in a form of financial incentives for foreign investments or large investment projects.

Government of the Republic of Slovenia on 6th February 2013 adopted an inter-sectoral policy document “Slovenian Industrial Policy” (SIP), which has been previously consulted by all social partners and other civil society players such as competence research centers. MGRT is responsible for the operational control, but the implementation of SIP and achievement of its objectives will be the subject of evaluation by external experts. SIP will be monitored in the context of dialogue with social partners at the Economic and Social Council, ESS. The main goal of SIP is to improve productivity and the added value per employee from 60% to 80% of EU-27 average by 2020. SIP sets four priority areas and measures for increasing investment in technological and economic development: improvement of business environment by following the principles of sustainable development; strengthening of entrepreneurship and innovation; new sources of growth that meet social challenges (green growth, green economy and resource-efficient low carbon society) and activities for the long-term development of industry.

Government of the RS in 2012 adopted an Action plan for the realization of Small Business Act for Slovenia for 2012-2013 and "Programme of Measures to Boost the Economy" (Program ukrepov za spodbujanje gospodarstva) as a set of measures that stimulate the formation of companies, foster business development in the early stages of operation and their competitiveness, growth and development in all subsequent stages of companies` development.

2. Is there evidence in your country of involvement of social partners in the process of formulating industrial policy interventions? If yes, please indicate which types of involvement:

Table 2

Type of social partner involvement:

… in the formulation of horizontal (cross-sector) interventions

… in the formulation of vertical (sector-, industry- or company-specific) interventions

Sector-specific involvement

No

Yes

Cross-sector involvement

Yes

Yes

Bipartite, tripartite, tripartite+, unilateral, public/private partnership?

Please indicate which, if any, of these types apply:

tripartite+

Please indicate which, if any, of these types apply:

tripartite

3. How have social partners been involved in the industrial policy formulation process?

Table 3
 

Please indicate (X) the extent to which the different types of involvement are used, including whether this involvement is statutory:

Level of government?

Sector focus?

Specific form of social partner involvement:

Statutory/mandatory

Very common/ used in most policy processes but not statutory

Fairly common but not consistently used

Rarely used

Not used at all

National or regional?

Sectoral or cross-sectoral?

Tripartite standing committee

X

(Economic and Social Council)

       

National

Cross-sectoral

Tripartite ad hoc committees

   

X

   

National

Cross-sectoral

High-level groups or other multi-stakeholder committees involving other stakeholders in addition to social partners

   

X

   

National

Both

If multi-stakeholder committees:

Please indicate which types of other stakeholders are (typically) involved:

The only formal multistakeholder committee in Slovenia, joined by more than 150 experts, directors of employer organizations (GZS, OZS), governmental offices and researchers, is the “Competitiveness council of Slovenian government” (Svet Vlade RS za konkurenčnost), dealing with competitiveness strategies for Slovenian companies and economy, technology development and research, development of measures and policies for effective internalization, development of entrepreneurship, innovations and evaluation and cost effectiveness of already adopted measures and actions. Involvement in this council is statutory determined. Trade union organizations are however not invited to join this national committee.

Chamber of Commerce and Industry of Slovenia in 2012 established “Strategic council for smart legislation and effective management of GZS” (Strateški svet za pametno zakonodajo in učinkovito upravo GZS), where Slovenian companies also participate, to support the planned governmental measures for the implementation of competitive legislation and de-bureaucratisation.

Hearings

       

X

   

Consultations

 

X

         

Conferences

             

Other - please specify below:

             
             

Under the Rules of Economic and Social Council (2007), consisting of the representatives of the Government of RS, trade union confederations and employer associations, social partners are involved in the formulation of public policies and give their views and opinions regarding proposed laws, national strategies, action plans and other important documents regarding social and economic issues.

Slovenian Industrial Policy (SIP) document has been presented to social partners at the Economic and Social Council session in mid of December 2012. Association of Free Trade Unions of Slovenia (ZSSS) supported the preparation of SIP and made some suggestions regarding developmental priorities, such as greater emphasis on the restart of the construction sector, especially for large infrastructural projects; energy renovation of buildings for creation of green jobs and improvement of business for SMS; emphasis on wood-processing industry; active use of hot water for heating the buildings; focus on cleaner transport means and compliance with the OECD "Principles of corporate governance in state-owned companies". ZSSS also stressed the importance of creating healthier and safer workplaces and promotion of education and training in technical professions, including strengthening of vocational training for young people.

Chamber of Commerce and Industry of Slovenia (GZS) end of December 2012 organized a public consultation with representatives of business, academia and Ministry of Economic Development and Technology to discuss draft version of Slovenian Industrial Policy and guidelines of Development Strategy of Slovenia till 2020. Representatives of business evaluated preparation of SIP as a result of good cooperation between the Ministry and the economy and pointed out certain shortcomings. Primarily, priority areas should be more concrete and action plans should be prepared as public-private agreements. The document should focus also on areas which ensure efficient use of financial incentives such as construction sector, design engineering, construction of hydroelectric power plants, upgrading of competence centres and business development centres and investments in knowledge. GZS pointed out the problem of stopped investments and the lack of infrastructural investment plan. President of GZS, Samo Hribar Milič pointed out, that Slovenian economy needs effective measures for fast recovery and successful realization of SIP and other strategic documents.

4. Is there evidence in your country of initiatives that follows recommendations and development at EU-level? If yes, please indicate in which sectors:

Initiatives that follow recommendations and development at EU-level are in Slovenia are mostly present in the sector of wood processing industry, construction and internationalization of Slovenian companies.

Ministry of Economic Development and Technology and Ministry (MGRT) of Agriculture and the Environment (MKO) in June 2012 published an Action Plan to Increase Competitiveness of Forest-Wood Chain in Slovenia "Wood is beautiful". The main aim of the action plan is to place wood processing industry between the strategically important and promising sectors of the economy with a sufficient amount of domestic raw materials. Focus is on the implementation of domestic and foreign investments in the wood processing plants; promotion of networking between enterprises, universities and research institutions; increasing investments in technological equipment and research, development and innovation in the wood processing companies ; harmonization of educational programs (secondary, college and higher education institutions) to the needs of the wood processing industry and lifelong education of employees in the wood processing industry; encouraging companies to expand to foreign markets; promotion of the use of wood in the construction of buildings - sustainable construction and promotion of the efficient use of biomass and its application to improve air quality advice and support energy education and development.

The document envisages participation of all stakeholders (employer association GZS, Forestry Institute of Slovenia, different Ministries, public agencies, different government offices, Tourist Association of Slovenia, High School for Forestry and Wood Postojna etc.) in the forest-wood processing chain for the coordinated implementation of measures to intensify forest management and better use of wood.

Chamber of Construction and Building Materials Industry of Slovenia (ZGIGM) and Trade Union of Workers in the Construction Sector (Sindikat delavcev gradbenih dejavnosti, SDGD) started to investigate the possibility of establishing a parity fund to manage the restructuring of companies in the construction sector and preparing the concept for Slovenia, Croatia, Hungary and Bulgaria. The initiative is part of the European project "Post-crisis Social Dialogue in the Construction Sector" (SODICO), which aims at better anticipation, preparation and management of change and restructuring in the construction sector and at strengthening the role of social partners and tripartite cooperation in the construction sector. Parity funds have been established in most Western European countries by social partners who pay into funds and manage them. Parity funds play a complementary role to the existing structures of government to improve the situation of employees and companies.

Ministry of Economic Development and Technology (MGRT) in January 2013 in cooperation with the Ministry of Foreign Affairs and Ministry of Agriculture and the Environment, Office of the President of RS and Office of the Government of RS, public agency SPIRIT, SID bank and three employer associations (GZS, Chamber of Commerce of Slovenia and Chamber of Craft and Small Business of Slovenia) published new Action Plan for 2013 "International challenges-partnership for the promotion of the internationalization of Slovenian economy (MI 2013)". Purpose of the document MI 2013 is to provide an updated and comprehensive overview of the institutions which are active in promoting the international operations of the Slovenian economy. The activities of all participants in the preparation of MI 2013 (partners) will be held in the context of increasing competitiveness and recognition of Slovenia and the Slovenian economy in the target foreign markets. The key sectors are the following: biomedicine and biotechnology; energy and environmental technology; the advanced material and technology, and nanotechnology; information and communication technologies; woodworking industry; automobile industry; transportation and logistics; metal industry; tourism and food industry. MGRT already implemented an active policy of direct promotion of FDI, which consists mainly of the following activities: the allocation of financial incentives for FDI; offering of free information, advice or other services to foreign investors; promotion and marketing of Slovenia and its regions as a location for FDI; analyzing the competitive position of Slovenia as a location for FDI and suggesting systemic measures for its improvement.

The partners agreed for regular meetings on monthly basis and coordinated activities, media and resources necessary to carry out certain operations. At meetings, partners will detail specific competencies of each institution for the implementation of each activity; actively participate in various activities, which are within their competence, choose the main holder of each activity in relation to the already established network of contacts in each country and, in the context of their ability, commit to the co-financing of the envisaged activities.

5. Which types of industrial policy instruments/interventions at different government levels have social partners been involved in? Please indicate degree of involvement

3 = high degree of involvement,

2 = involvement to some extent,

1 = low degree of involvement,

0 = no involvement.

Table 4

Policy instruments:

National level

Regional level

Local level

Public investment programmes:

1

   

Infrastructure

1

   

Construction

1

   

building renovation

1

   

Other

     

Innovation programmes

0

   

Support for R&D

0

   

Cluster promotion

1

   

Export promotion

2

   

Internationalisation of SMEs

2

   

Improvement of access to finance:

0

   

Loan

0

   

loan guarantee programmes

1

   

venture capital funding

0

   

Other

     

Public procurement policies

0

   

Tax and duty policies

1

   

Adapting the skills base

1

   

Subsidies for restructuring/ bail-out of companies in crisis

3

   

Social plans in case of restructuring. Training/re-training

1

   

Investment incentives

1

   

Energy efficiency/ energy shift

1

   

Energy supply security

1

   

Access to raw materials

1

   

Prices of energy and raw materials

1

   

Others, please specify below:

     
       

6. Which, if any, positive effect(s) can be related to the involvement of social partners in the industrial policy process in your country?

Both social partners, trade unions and employer organizations are always involved in the preparation of Slovenian Industrial Policy strategic document and give their opinion at the Economic and Social Council sessions regarding developmental priorities. But they are further less involved in the implementation of envisaged measures. Therefore social partners (GZS, ZSSS) organize public consultations and press conferences where they try with media pressure to influence government decisions to implement more effective and rapid measures to save jobs, increase competitiveness and productivity and stabilize Slovenian economy. One of successful intervention actions to save jobs, taken by trade union confederation ZSSS, is explained in more detail below.

Table 5

Positive effects

Tick (X) where applicable

Please comment briefly: How did effect manifest itself?

Speed of policy process

X

Trade union confederation ZSSS often organizes press conferences and carries out media pressure on the Slovenian government to help companies in crisis. In May 2013, soon after ZSSS intervened, some companies like Svea Zagorje were promised to receive financial help to save jobs and company from bankruptcy.

Robustness of policy initiatives

   

Relevance of policy initiatives

X

Employers’ organisations and trade unions both participate in the preparation of industrial policies, but it seems that interventions of trade unions are at present time more successful.

ZSSS in its media campaign in 2013 to save companies that went bankrupt (Novoles, Armal), highlighted the relevance of social enterprises as a solution for these companies. Therefore ZSSS started to help companies Novoles and Armal in preparing new business plans as social cooperatives. They also established a dialog with the Ministry of Economy and different banks to support these companies with loans for social enterprises to restart their business and save jobs.

Dynamism in the policy process

   

European coordination

   

Ownership of policy initiatives

   

Coherence and coordination of labour market, education, and economic policies

   

Stimulating public-private partnerships

   

Others, please specify below:

   

.

   

7. Which, if any, problems or challenges related to involvement of social partners in the industrial policy process have been encountered in your country?

Table 6

Problems/challenges:

Tick (X) where applicable

Please comment briefly: How did the problem manifest itself?

Increased bureaucracy

   

Lengthy policy processes

   

Lengthy bargaining processes

   

Dilution (circumvention) of parliamentary democracy

   

Problems of establishing accountability

   

Lack of dynamism in the policy process

   

Lack of culture to involve social partners

X

There is a lack of culture in Slovenia to involve social partners in the implementation of measures envisaged in the industrial policy documents.

Others, please specify below:

   

.

   

8. What, if anything, has been done to address these challenges/problems listed in questions 7? What was the outcome?

Chamber of Commerce and Industry of Slovenia (GZS), Association of Employers of Slovenia (ZDS), Chamber of Craft and Small Business of Slovenia (OZS), Slovenian Chamber of Commerce (TZS), Association of Employers in Crafts and Small Business of Slovenia (ZDOPS-GIZ) and Managers' Association of Slovenia have in the last months organized joint press conference and prepared documents, addressed to the Slovenian government, where they have highlighted the relevant economic situation, which is not improving. In November 2012, they prepared the first set of 46 measures to exit from the economic crisis (Agenda 46+). On this occasion, more than 700 businessmen signed a “Call of business for a successful Slovenia” (Poziv gospodarstva za uspešno Slovenijo), thereby supporting the Agenda 46 +. In August 2013, GZS published a joint document “Oxygen for the business” (Kisik za gospodarstvo) as a renewed Agenda 46+ with 63 proposed measures from employer associations to help Slovenian government exit from crisis and establish a new economic policy. Social partners are still waiting for a positive outcome of their interventions.

Table 7

Problems/challenges:

Measures undertaken

Effect positive/negative

     
     

Part 2: Description of relevant sector examples of social partner involvement

This section aims to identify examples of policies targeting specific sectors and involving social dialogue. Among the industrial policies treated in the previous section in question 5, please select 2-3 examples which represent significant industrial policies in your country and describe the policy instruments used and the contribution of social partners to the shaping of the policy and the outcome of their involvement.

The selection of examples should be guided by the following criteria:

  • importance of the sector to the national economy;
  • level of government support to the industry; and
  • best practice of social dialogue in the country.

Please provide references to key sources.

Example 1

Name of the instrument:

State subsidy to company SVEA for restructuring

Državna pomoč podjetju SVEA za prestrukturiranje

Sector:

Wood-processing industry

Type of instrument applied:

(use categories from question 5. Some sector policies may apply more than one instrument

Subsidies for restructuring/bail out of companies in crisis

Timing:

(Period of implementation of instrument)

Company SVEA received the 1st part of subsidy from the Government in July 2013

Operational level

National

Regional

Local

Please tick the government level and/or provide details of geographical implementation area if relevant:

.

 

X

Funding:

(Please describe the size of the instrument and detail the source(s) of funding, e.g. EU, state budget, levies, stakeholder contributions, etc.).

Company SVEA received the first part of state subsidy in the form of a secured credit in the amount of 1.38 million €.

Company will receive the second part of financial help as a liquidity loan in the amount of 3.6 million €, when company prepares program for the restructuring.

Target group(s):

(please describe target group in terms of sector/industry, type of company, geographical criteria and/or other relevant characteristics)

Company SVEA is a leading manufacturer of kitchen in Slovenia and presents important employer in the wood processing industry.

Company employs around 200 employees and lies in the geographical region with one of the highest unemployment rates in Slovenia.

SVEA is partly owned by the state through the Slovenian Compensation Fund and some other state companies (27%). The majority owner is SVEA Engineering, where Regional Development Centre with 29% has the highest ownership share.

Rationale/motivation for the instrument:

(please describe the problem that the instrument should address – for instance: market failure, need to increase sector competitiveness, crisis intervention, etc.)

The instrument is part of the crisis interventions and should safe company from bankruptcy and geographical region Zasavje from higher unemployment rate.

Policy stage

Please describe stage of involvement of the social actors i.e.

policy preparation (consultation),

policy decision (co-determination? and

policy implementation (fx. by involvement in agencies)

Social partners (Association of Free Trade Unions of Slovenia, ZSSS) were involved in the awareness raising stage, and publicly urged the Government to financially help company SVEA and two other companies in crisis (Aha Mura and Peko).

Objectives of the instrument:

(please describe the objectives and any quantitative targets set for the instrument– e.g.

increased employment by X% in sector Y by 20xx

increase in sector exports by X%

increase in FDI by X%

Objective of the instrument was to preserve jobs and save company from bankruptcy.

Activities and implementation:

(Please give details on the implementation of the intervention)

Social partners (Association of Free Trade Unions of Slovenia, ZSSS) in May 2013 organized a press conference where they made a public call on the Government to help company SVEA and two other companies in crisis (Aha Mura and Peko) and give guarantee for loans to safe companies from bankruptcy. In July, company SVEA received 1st part of state subsidy.

Social partner involvement

 

Type of social partner involvement:

(Bipartite, tripartite, tripartite+, unilateral, public/private partnership? – cf. qu. 1)

Public-private initiative

Level of involvement of social partners involvement:

European, National, regional, local

Sectoral

Local

Specific form of social partner involvement:

(tripartite standing or ad hoc committee, high-level group, hearing, consultation, conferences, etc.? – cf. qu. 2)

Awareness raising

Timing and nature of social partner involvement:

(Please provide more details on the processes that social partners were involved in, their input, the timing, etc.)

In May 2013, trade union confederation ZSSS started to warn the Government that company SVEA and some other companies (Peko, Aha Mura) have financial difficulties which can result in social disaster in regions where companies work. At ZSSS stressed that these companies do not need grants, but the guaranteed loans.

All mentioned companies asked the Government to provide help in a form of guarantee for bank loans, but only SVEA Zagorje received state subsidy.

Impact of social partner involvement on design and implementation of instrument:

(Please describe how/if the design and/or implementation was affected through the involvement of social partners)

.

ZSSS raised the relevance of policy initiative for company SVEA and put pressure on the Government to help the company (and others) out of financial crisis.

Other stakeholders involved, if any:

(please name stakeholders and briefly describe their roles)

No

Results and outcomes

 

Outputs/results:

(Please give details of the outputs/results of the intervention; e.g number of jobs created/retained, number of workers upskilled; wage increases, investment increases, increased co-operation between social partners, etc.)

State subsidy will help company SVEA to retain 130 out of 180 jobs, restart production line and plan restructuring of the company SVEA Group, which consists of two joint companies, SVEA Wood Industry and SVEA Engineering.

Government approved the first part of the subsidy to SVEA, amounting to almost 1.4 million euros, in a form of a short-term loan for the period of six months for the preparation of the restructuring program. When the company prepares a plan for restructuring, which must include also dismissal of redundant workers, the government will approve the second part of state subsidy. Municipality of Zagorje, where company SVEA is situated, has an obligation to help finding an employment for the redundant workers.

Other obligations of company SVEA include decreasing all wages in the company to a moderate wage level, ban of dividend payment in the next three years and use of funds exclusively for the purpose of resolving the company and eliminating the liquidity crisis and insolvency. Financial help must not be used for new investments.

Assessment of effectiveness:

(Please provide an assessment of the effectiveness of the intervention - were the objectives reached? If possible, base the assessment on evaluation reports or similar)

It is to be seen how successful the intervention of state subsidy in the company SVEA is going to be.

Possible explanations for the effectiveness of the instrument:

(Please provide possible explanations for the degree of effectiveness achieved, including the contribution of the social partner involvement; e.g. improved bargaining process? Increased dynamism in the policy process? Other explanations?)

ZSSS is the largest Slovenian trade union confederation and has great influence on public opinion. With media publicity, they raised the importance and speed of the policy process, at least in case of company SVEA.

Assessment of efficiency:

Did the outputs/results measure up to the effort/resources invested? If possible, base the assessment on evaluation reports or similar)

It is to be seen how efficient the Government intervention will be for company SVEA, but SVEA very soon after ZSSS made a public call to the Government, received help from the state.

Possible explanations for the efficiency of the instrument:

(Please provide possible explanations for the degree of efficiency, including the contribution of the social partner involvement)

State subsidy was the last option for company SVEA to preserve jobs and ZSSS helped to speed the process.

Example 2

Name of the instrument:

Loan guarantee for cooperative Novoles

Jamstveni kredit za zadrugo Novoles

Sector:

Wood-processing industry

Type of instrument applied:

(use categories from question 5. Some sector policies may apply more than one instrument

Loan guarantee programmes

Timing:

(Period of implementation of instrument)

Former workers of bankrupt company Novoles in August 2013 established a cooperative Novoles, along with Forestry Novo mesto (Gozdno gospodarstvo Novo mesto) and company Ekovizija.

At the moment, cooperative Novoles is waiting for the Government to approve a loan guarantee so they can start the production line.

Operational level

National

Regional

Local

Please tick the government level and/or provide details of geographical implementation area if relevant:

   

X

Funding:

(Please describe the size of the instrument and detail the source(s) of funding, e.g. EU, state budget, levies, stakeholder contributions, etc.).

Cooperative Novoles needs 72,000 € of startup funds and will try to get a loan for most of the investment (400,000€ for the technology, 200,000€ to re-start the business and additional funds for the payment of all outage).

Management of the cooperative already agreed with the Workers Savings Bank (Delavsko hranilnico) and Development Bank (SID bank) to support the project, but banks require a state guarantee.

Other source of funding will be the stakeholder (workers`) contributions.

Target group(s):

(please describe target group in terms of sector/industry, type of company, geographical criteria and/or other relevant characteristics)

Novoles used to be a leading wood-processing company in Slovenia and employed around 3,000 workers.

In April 2011, Novoles employed only around 700 employees and when the company went bankrupt and dismissed all the workers, this had an affect also on the geographical region where Novoles is situated. This region has one of the highest unemployment rates in Slovenia.

In the initial period, the cooperative Novoles will concentrate on the production of plywood, which was bringing a profit already in the previous company Novoles and employ 130 former workers for start.

Management of the cooperative reports that other former workers are also pressuring the new company to re-hire them back, since this would be their only option to get a job.

Rationale/motivation for the instrument:

(please describe the problem that the instrument should address – for instance: market failure, need to increase sector competitiveness, crisis intervention, etc.)

The instrument is part of the crisis interventions and should help Novoles to restart the production again, safe company`s premises from degradation and geographical region Dolenjska from higher unemployment rate.

Policy stage

Please describe stage of involvement of the social actors i.e.

policy preparation (consultation),

policy decision (co-determination? and

policy implementation (fx. by involvement in agencies)

Social partners (Association of Free Trade Unions of Slovenia, ZSSS) were involved in this initiative from the very beginning. Along with the Slovenian forum of social entrepreneurship (Slovenski forum socialnega podjetništva), ZSSS helped workers to establish a cooperative Novoles and was involved in the policy preparation (consultation) with the Government.

Objectives of the instrument:

(please describe the objectives and any quantitative targets set for the instrument– e.g.

increased employment by X% in sector Y by 20xx

increase in sector exports by X%

increase in FDI by X%

The objective of the instrument is to help to establish one of the first social enterprises in Slovenia, cooperative Novoles, which will operate under the principles of co-operatives, to awaken the local timber industry and provide 130 new jobs for start and 70 jobs more in near future.

Activities and implementation:

(Please give details on the implementation of the intervention)

Social partners (Association of Free Trade Unions of Slovenia, ZSSS) in 2012 participated in the establishment of cooperative Novoles and established a dialog with the Government to raise the awareness about Novoles and cooperatives in general.

Social partner involvement

 

Type of social partner involvement:

(Bipartite, tripartite, tripartite+, unilateral, public/private partnership? – cf. qu. 1)

Public-private initiative

Level of involvement of social partners involvement:

European, National, regional, local

Sectoral

Local

Specific form of social partner involvement:

(tripartite standing or ad hoc committee, high-level group, hearing, consultation, conferences, etc.? – cf. qu. 2)

Consultation

Timing and nature of social partner involvement:

(Please provide more details on the processes that social partners were involved in, their input, the timing, etc.)

Social partners (Association of Free Trade Unions of Slovenia, ZSSS) in 2012 started to participate in the establishment of cooperative Novoles and helped to prepare a solid business plan. ZSSS established a dialog with the Government to raise the relevance of policy initiative for cooperative Novoles and put pressure on the Ministries to change the legislation on the supportive environment for entrepreneurship.

Impact of social partner involvement on design and implementation of instrument:

(Please describe how/if the design and/or implementation was affected through the involvement of social partners)

Government approved business plan for the cooperative Novoles and in September 2013 adopted changes to the Act on Supportive Environment for Entrepreneurship by expanding the range of potential beneficiaries for development incentives and funding sources also on social enterprises and co-operatives.

Other stakeholders involved, if any:

(please name stakeholders and briefly describe their roles)

This initiative involves different stakeholders:

Slovenian forum of social entrepreneurship helped workers to establish Novoles as a cooperative.

Business partners of the cooperative Novoles have bought other Novoles` facilities and buyers have already signed a letter of confidence.

Workers Savings Bank is also interested to cooperate by giving the loan for social enterprises as soon as the Government approves loan guarantee.

Results and outcomes

 

Outputs/results:

(Please give details of the outputs/results of the intervention; e.g number of jobs created/retained, number of workers upskilled; wage increases, investment increases, increased co-operation between social partners, etc.)

State loan guarantee would help cooperative Novoles to restart production and re-hire at least 130 workers or more.

Ministry of Labour, Family, Social Affairs and Equal Opportunities also issued a positive opinion for a grant in the amount of 5,000 euros for each new employee.

It is to be seen how successful the intervention of state loan guarantee program in the cooperative Novoles is going to be.

Assessment of effectiveness:

(Please provide an assessment of the effectiveness of the intervention - were the objectives reached? If possible, base the assessment on evaluation reports or similar)

Cooperative Novoles is still waiting for the Government to approve a loan guarantee program.

Possible explanations for the effectiveness of the instrument:

(Please provide possible explanations for the degree of effectiveness achieved, including the contribution of the social partner involvement; e.g. improved bargaining process? Increased dynamism in the policy process? Other explanations?)

ZSSS is the largest Slovenian trade union confederation with great influence on social dialogue and public opinion and it helped to raise the relevance of policy initiative.

Assessment of efficiency:

Did the outputs/results measure up to the effort/resources invested? If possible, base the assessment on evaluation reports or similar)

It is to be seen how successful the intervention of state loan guarantee program in the cooperative Novoles is going to be.

Possible explanations for the efficiency of the instrument:

(Please provide possible explanations for the degree of efficiency, including the contribution of the social partner involvement)

State loan guarantee program is at present the only option for cooperative Novoles to restart the business and ZSSS helped to raise the policy relevance, make legislation changes and speed the process.

References to key resources:

DELO, “Svei lastniki ne pomagajo” (Owners are not helping company Svea), available at http://www.delo.si/gospodarstvo/podjetja/stepisnik-svei-lastniki-ne-pomagajo.html

DELO, “Novoles bo zadružno podjetje” (Company Novoles will become a cooperative), available at http://www.delo.si/gospodarstvo/podjetja/novoles-bo-zadruzno-podjetje.html

Association of Free Trade Unions of Slovenia, “ZSSS for a urgent help for companies Peko, Aha-Mura and Svea Zagorje” (ZZZS za takojšnjo pomoč Peku, Aha-Muri in Svei Zagorje), available at http://www.sindikat-zsss.si/index.php?option=com_content&view=article&id=944:zsss-za-takojnjo-pomo-peku-aha-muri-in-svei-zagorje&catid=2:aktualno&Itemid=65

Kriznogledalo, “Slovenian government approved state subsidy to company Svea” (Vlada potrdila pomoč Svei), available at http://kr-og.sta.si/2013/06/vlada-potrdila-pomoc-svei/

Kriznogledalo, “Company Svea prepares restructuring plan” (V zagorski Svei pripravljajo program prestrukturiranja), available at http://www.najdi.si/news2/preview.jsp?ql=V+zagorski+Svei+pripravljajo+program+prestrukturiranja+Krizno+ogledalo&purl=http%3A%2F%2Fkr-og.sta.si%2F2013%2F07%2Fv-zagorski-svei-pripravljajo-program-prestrukturiranja%2F&clDH=2cfff8dd6bed19e20c9d41506aa6a7f7

Večer, “Will company Novoles become a first social cooperative?”(Bo novi Novoles prva socialna zadruga?), available at http://web.vecer.com/portali/vecer/v1/default.asp?kaj=3&id=2013080205941911

Barbara Lužar, University of Ljubljana, Faculty of Social Sciences

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