New sectoral collective agreement has brought along only small changes for public servants
In the sectoral collective agreement for public servants for 2006 there were agreed in principle the same employment conditions as in the collective agreement for 2005. New agreement allows possible reduction of weekly working hours and extension of paid annual leave in local-level collective agreements. The agreement defines also financial limits for employers contributions in the same level as the previous one. The only one area where certain changes were realised is the higher increase of pay rates of employees.
Sectoral collective agreement for 2006 creates a legal framework for employment conditions in public sector organisations and institutions in Slovakia where are employed more than 300,000 employees. Unlike the previous year this time the new collective agreement was signed earlier what signalized a less difficult collective bargaining which resulted in more favourable pay increase in comparison to the previous year (2006 pay increase was already provisionally agreed in the sectoral agreement for 2005). The collective agreement for 2006 was signed by the same representatives of social partners as the previous agreement for 2005 (SK0502101N).
The collective agreement is binding for employees and their employers which are contributory organizations of the state, municipalities and regional governments, state funds, certain public universities, Slovak Academy of Sciences (Slovenská akadémia vied, SAV) and other public institutions. It is binding also for bodies and organizations of state administration whose employees do not have civil servant status (in terms of the Act on Civil Service) and other budgetary organisations of the state, municipalities and regional governments. The sectoral collective agreement took effect on 1 January 2006 and expires on 31 December 2006. The negotiators of the contracting parties can assess its fulfillment biannually and based upon the results from this assessment they can ask for its change or amendment.
The new sectoral collective agreement defines besides pay increase the same employment conditions as were defined in the previous collective agreement for 2005 (SK0502101N). Provisions of the collective agreement define issues and limits for 2006 local-level collective bargaining where it is possible to agree on shorter weekly working hours and longer paid annual leave than defined in the Labour Code.
Other provisions of the collective agreement define:
- minimum level of employers´ contribution for supplementary pension insurance or supplementary pension savings of employees (2% of pay)
- compulsory level of contribution of the employer to the social fund (1% of total pay bill), which can be increased by at least 0.05 percentage points through local-level collective agreements, and
- minimum levels of redundancy payment and 'discharge benefit' (one month pay) that the employer has to pay to the employee over and above the limits defined in the Labour Code.
These limits are the same as those agreed in the sectoral collective agreement for 2005.
The sectoral collective agreement for 2006 defined new concrete values only for growth of employees´ pay rates (tariffs). Pay rates of all public servants will increase at the same time as in 2005, ie from 1 July. However, this time they will increase more than a year ago. While according to the collective agreement for 2005 the pay rates increased by 5%, in 2006 the basic scale of public servants’ pay tariffs, special scales of pay tariffs for selected groups of employees and pay tariffs of pedagogical workers will increase equally by 6%. The pay increase agreed in the sectoral collective agreement is guaranteed by the resources in the state budget for 2006. The agreed increase of pay rates should allow also the increase of real wages of public servants in 2006.
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