1. Slovakia’s ability to compete in the market and amongst
themselves
Konkurencií schopnosti Slovenského trhu i firiem medzi sebou
Temporary Agency point of view
January 2014

2. 3 Main areas affecting Slovakia’s competitiveness
1.
Legislative changes in 2013
2.
Legislative changes in 2014
3.
The current educational structure in Slovakia
Underlying everything is corruption and “nevymožiteľnosť práva“
(Justice in SR = who you know, what you know and how much $)
Slide 2

3. Legislative changes in 2013
As of 1.1.2013
• Complex changes in “part time” contracts
• significantly increased administration
• increased cost to employer by 30%
• Increase of social contribution ceiling
• from an avg. of 2 400 € to the current unified ceiling of 3 930 €
• an increase of up to 60%
• specialists, managers, many IT jobs became more expensive
• better paying jobs became more expensive to employers
• Personal income tax increase
•
from flat rate of 20% to a revolving rate up to 25%
As of 1.5.2013
• „ 5 krát a dosť“
• this year the 2nd year – expect employers to end contracts with ADZ employees
• Temporary labor agencies cannot use part time contracts/services
•
estimated number of new s.r.o.’s created to provide services is in the 100’s…
The 2013 changes in employment laws meant a loss of employer flexibility, higher costs
and increased use of limited companies to get around the law!
Slide 3

4. ilt
re bu
”
a
Sta
Legislativertchanges in 2013 v- and grity….” “The “
a e impact
the
e
e beh
Iw
“…
om
ow w ent to int
h
an
fr
co
rn
y
t to
re
rit
gove commitm
te g
wo
alues ering
va
V
“In
rk
lu
“Our unwav
he
es
r
re
:r
on ou
”
e
PRICE
“…corporate citizenship and social responsibility is in every
aspect of our company”
Co
de
sp
of
ec
t,
e
xc
el l
en
cu
lt
ce
,
ur e
“
re
“…
Co
sp
res
on
nd
sib
all
pe
ili
its cts
uc
ty
.”
em ea
t
ch
p
res loy
i
Com
pe ees ndiv
plian
ct
i
ce wi
an to b dual
th th
dd et
ide
a
e Law
gu
ign rea nd w
lps and
he s
e
INTEGRITY
ity ted
a
am e law nd th
r
.”
g bl
wi nts
r ou
a
pro
th
ity pplic ess a
r
iness
a
n
eg
tinue bus
int y all busi
blish nor con
esta
and
be
and
ng
“….does not
ce s t o o du ct i . ”
ers, suppliers
n
with advis
e of
plia oyee con orld
relationships
m pl
ccept the Cod
e
w
il
co
fusing to a
“… r em s wh
one clearly re
any
ou ation
Conduct.”
“Insisting on the Highest Ethical Behavior
Our policies and practices direct our employees to
conduct business lawfully and ethically wherever we
operate.”
PRICE!
PRICE
ul
reg
Slide 4

5. Legislative changes in 2013 – Price Wars
According to the Slovak statistical office
.... „ Za jedenásť mesiacov roku 2013 oproti rovnakému obdobiu roka 2012 vzrástol
index priemyselnej produkcie o 4,6 %, z toho v priemyselnej výrobe o 5,7 %“. V
priemere od začiatku roka 2013 v porovnaní s rovnakým obdobím roka 2012
zamestnanosť klesla v priemysle o 1 %.” * A result of increased efficiency?!?!?!?!
Even though production in Slovakia increased, we had a decrease in employment,
and a decrease in temporary services….where did these employees go?
Limited companies offering „services“
•
•
•
•
•
•
•
are not licensed (nekontrolovateľné)
are not subject to the equal pay ammendment of the law
are not subject to client’s union labor agreements
the employees receive minimum wage and travel expenses (not subject to tax)
they are endangering the future security of these employees
they are violating the law!!!!
If service then REAL service – Managed Services in every context of the meaning!!!!
We (APAS) urge the Minister of Labor to actively enforce existing laws, sanction
those agencies (s.r.o.’s) that disregard the law, and advocate revision of the labor
code to include Employers as equally responsible for disregard of the law!
* Štatistický úrad Slovenskej republiky
Slide 5

6. Legislative changes in 2013 – solution
(we are not so rich that we can afford to buy cheap)
In Sept/Oct of 2013 Adecco performed a mystery shopper survey
Of the 28 agencies that we visited, only 2 (one of which was Adecco) actually interviewed
candidate(s)
- The single most important indicator of candidate feasibility is the interview!
- Proper employee selection impacts
- Voluntary / Involuntary fluctuation = $$$$
- Absenteeism = $$$$
In 2012 Adecco established the TH KPI report and has been measuring
each client, every week for the past two years………
Working with a licensed temporary work agency that actively measures defined
KPI’s can guarantee you cost savings through measurable performance results.
Slide 6

7. Defined ìssues
 High overtime
 High turnover
 Poor quality of newcomers
 Lack of sickness leave control
 Lack of facilities/lockers for newcomers
 High costs of work clothes
 Troubles with personnel during production peaks
 Communication problems between temps & agency:
- Doubts about salary correctness (for obvious reasons)
- Doubts about Holiday calculation methods
- Lack of research about reasons for turnover
Slide 7

8. Proposed solutions
 Control and analyis of turnover (exit interviews)
 Create tests specific to Client’s products
 Sick leave control and management
 Manage locker logistics
 Workclothes from dismissed workers redistribution
 Regular and planned communication with temps and client staff
Slide 8

9. Summary of possible savings
Slide 9

10. Legislative changes in 2014
As of 1.1.2014 - Higher collective bargaining contracts are applicable
for almost all employers in Slovakia / Vyššie kolektívne zmluvy budú
takmer pre všetkých
- Applicable for all employers with as little as 20 employees
- Conditions for applying the higher collective bargaining contract will take
place even without the employers approval and with disregard to the employers
own bargaining contract
- The ministry will establish a tri-party commission to decide on extending the
high collective bargaining contract to employers
- 5.12.2013 Members of the Slovak opposition submitted a claim to the SK
Constitutional court regarding this new legislation. In the Czech Republic the
Constitutional Court decided that similar legislation that was planned for the
Czech Republic was unconstitutional
This law goes will have a disastrous effect on Slovakia’s ability to
compete in the market place especially for small and medium enterprises.
THE SME’s of Slovakia cannot and will not be able to compete with the
largest employer’s profits, pocketbooks or influence
Slide 10

11. Legislative changes in 2014
I am from Detroit (Motown) and lived there for 26 years. Today everyone knows that
Detroit is bankrupt and the automotive industry that once fueled it’s greatness is
dead. Many reasons exist for the destruction of the automotive industry in Detroit,
including the Unions.
I must mention an article published in SME on December 9, 2013. The title of the article
is “Zabije nás nakoniec úspech našich automobiliek?”. The author is Tomas Bella.
“Jeden príklad za všetky: mimoriadne silné odbory až do roku 2007 trvali na zachovaní
takzvanej pracovnej banky. Znamená to, že automobilky mohli modernizovať výrobu a používať
viac robotov – ale ľudí, ktorých roboty nahradili, nesmeli prepustiť. Tí ďalej chodili do práce a
čakali, čí sa nejaká práca náhodou nevyskytne.“
V roku 2009 General Motors a Chrysler zbankrotovali.
Another quote from Mr. Bella’s article. This time about education – my final point….
“Ak začneme debatu o akejkoľvek alternatíve k automobilkám, skončime nakoniec zasa pri
vzdelávaní, pretože svet sa stal príliš zložitým na to, aby sme vedeli vyveštiť na 30 rokov
dopredu. Jednoducho budeme potrebovať bystrých ľudí s univerzálnymi schopnosťami, ktorí
budú schopní prispôsobiť sa, či už v tom čase budeme vyrábať Volkswageny, solárne panely,
vodíkové články, autá Tesla alebo autá čínskey značky Geely“
Slide 11

12. 3rd competetiveness factor - EDUCATION
Not everything in the former regime was bad...
Ministerstvo Školstvo
Priemysel
competencie
spolupraca
Základne
školy
Odborné Predmety
Gymnázia
Obchodné
Akadémia
Stredné
Priemyselné
Stredné
odborne
učilište
PRAX
Školy
ZAMESTNANIE
Univerzitá
Slide 12

13. EDUCATION today
Kompetenčný zákon 2001
Ministerstvo Vnútra
8 VUC-ky
Zriaďovateľ = $, koľko, kde a komu
ZŠ
Ministerstvo Školstvo
ZŠ
ZŠ
OA
Gym
OA
Gym
OA
SPS
competencie
Gym
SOU
SPS
SOU
SPS
SOU
ZŠ
ZŠ
ZŠ
Gym
OA
Gym
OA
Gym
OA
SPS
SOU
SPS
SOU
SPS
SOU
obsah
ZŠ
ZŠ
Gym
OA
Gym
OA
SPS
SOU
SPS
SOU
Univerzitá
Priemysel ??????
Slide 13

14. EDUCATION today
Kompetenčný zákon 2001 / effect since 2006
I compared information from the Ústavu informácii a prognóz školstva“ for school years 2011 / 2012 and
from 4 years prior, t.j. 2007 / 2008 (and compared the largest regions: BA, ZA, KE, PO). In this sample the
number of students in ”high schools” increased by 7,5%, however the number of schools increased by
62%! Students in technical vcational schools increased by 82%, but the number of schools by 172%!
Gymnazia
2007 / 2008
Počet škôl Kraj
celkom
BA
24
ZA
22
KE
25
PO
21
2011 / 2012
Súčet
žiakov
spolu
12570
11671
12598
10291
Počet škôl
Kraj - celkom
BA
44
ZA
29
KE
36
PO
40
rozdiel za 4 roky
Súčet
žiakov
spolu
13388
11602
12205
13045
% Narast
pocet škôl
83%
32%
44%
90%
% narast
pocet
žiakov
7%
-1%
-3%
27%
SOŠ
2007 / 2008
Počet škôl Kraj
celkom
BA
23
ZA
17
KE
27
PO
35
2011 / 2012
Súčet
žiakov
spolu
12570
11671
12598
10291
Počet škôl
Kraj - celkom
BA
63
ZA
63
KE
60
PO
77
rozdiel za 4 roky
Súčet
žiakov
spolu
13605
24099
21346
25193
% Narast
pocet škôl
174%
271%
122%
120%
% narast
pocet
žiakov
8%
106%
69%
145%
Slide 14

15. EDUCATION today
Kompetenčný zákon 2001 / effect since 2006
Since the application of the Competency Act of 2001 today control over the
amount of school (numbers), the amount of financing, and location is
determined by 8 separate regional councils (VUC) – thus, the Minister of
Interior
- The Ministry of Education is no longer the “owner” of our educational system.
Today we have 8 owners with various degrees of competency, understanding
and interest!
- Literally 100’s of Associations, local organizations, individual companies,
etc…. Have been searching for a model to increase the effectiveness of
education and make it applicable to the needs of society and industry – without
gaining consortium (even at the local level)
- Even if a “perfect” model was developed, under the current structure it would
have to be “sold” to 8 regional VUC-ky!!!
The government must revert back to the former succesfull model of
education in Slovakia and take all steps to remove the education system
from the Competency act of 2001. Without one owner, one vision, one
strategic plan to meet our current and future needs in education, the
current system will (already is) intellectually bankrupt Slovakia.
Slide 15

16. Thank You!!!
Bruna Beata Jakub
Country Manager
Adeccco Slovakia, spol. s r.o.
Ajilon (UK) Limited
Apollo Business Center
Mlynské nivy 45, 821 09 Bratislava
mobile: +421 902 943 684
bruna.jakub@adecco.com
www.adecco.sk; www.adecco.com