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Country: Republic of Slovenia

Period: 1995

Title of the Pact: Social Agreement for 1995

Negotiating Parties: Association of Independent Trade Unions of Slovenia; Slovenian Trade Union Confederation ’90; Independence—Confederation of New Trade Unions of Slovenia; Government of the Republic of Slovenia; Chamber of Commerce of Slovenia; Slovenian Employers’ Association; Chamber of Small Businesses of Slovenia; Independent Trade Union of Slovenia

Objectives of the Pact: "The intensification of problem solving through social partnership, as well as the definition of tasks and responsibilities of the partners."

Matters Agreed:                   

• Reduction of unemployment through a greater dedication of resources to job creation; prevention of illegal employment.
• Collective contracts will be the sole method of determining base salaries, uniformity of mechanism will be established.
• Salaries in the public sector will be paid according to collective agreements and law, including regulations for minimum wages, bonuses and other expenditures for state employees.
• Commitment to the general adjustment of social rights, pensions, and salaries across the state, which will compliment economic development.
• Establishment of price controls through both direct and indirect means in the non-tradable sector with the aim of lowering inflation.
• Controls for government expenditure in 1995; reduction in direct taxes.
• Measures to reduce the increase of real interest rates.
• Adoption of a flexible exchange rate regime.
• Promotion of a more efficient and expedient legal system which addresses labour and industrial relations matters.

Background:

The Economic and Social Council (ESC), formed by the first tripartite agreement on wages, signed this first broad social agreement as a means to provide continued validation to the collective bargaining system as well as to enumerate the rights associated with labour relations and stipulate the obligations of each social partner.