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Country: Republic of Slovenia

Period: 1996

Title of the Agreement: The Social Agreement for 1996

Negotiating Parties: The Association of Independent Trade Unions of Slovenia; the Confederation of New Trade Unions of Slovenia—INDEPENDENCE; The Independent Trade Unions of Slovenia; The Trade Union of the Employees of Technical Checkups of Slovenia; Government of the Republic of Slovenia; The Chamber of the Economy of Slovenia; Association of Employers Slovenia; Chamber of Small Businesses of Slovenia; Association of Employers in Small Businesses Catering, Intellectual Services, Tourism, Trade and Freight Transport-OGISTA

Objectives of the Agreement: The expression of the common interest of the social partners in: economic growth, increasing employment, lowering inflation and improving social and legal security in Slovenia, which will facilitate, inter alia, EU accession, competitiveness, and increased investment.

Matters agreed:        

• Apportionment of funds for job creation; prevention of illegal employment.
• Adoption of fiscal policy measures for the creation of price stability, thereby discouraging inflation.
• General Government expenditure does not exceed the accepted budget; taxation reassessment as well as reduction in fiscal burden depending on wage level.
• Restraint in real wage increase (2 per cent) in line with actual rise in GDP, implemented across collective agreements; compulsory adjustment of the base wage to follow the rise in retail prices (85 per cent).
• Establishment of a monthly minimum gross wage with yearly adjustment according to economic growth as well as regulation of bonuses.
• Income derived from social security will be calculated following the formulas established for all wages set forth by the agreement.
• Increased efficiency in the settlement of disputes; specific criteria adopted regarding Labour Inspection Law; adoption of specific laws regarding legal security.

Background: The Social Agreement of 1996 renewed the original intentions of the Social Agreement of 1995, which facilitated the continued assessment of the socio-economic needs of the transitioning society.