Meeting IndustriAll Europe East region 12.09.2016 – 14.09.2016

Economy of the Slovak Republic - facts GDP 3,7% (07/2016) Inflation rate (CPI) -0,9% (07/2016) Unemployment index 9,4% (07/2016) Industrial production 2,3% (1Q/2016) Average gross salary 883,0 EUR (2015) 867,0 EUR(1Q/2016) 1001,0 EUR (06/2016 - industry) Minimal wage 405,0 EUR (od 01.01.2016) Zdroj: ŠÚSR.

Growth of real wage and in labour productivity ( GDP per employee) Source: own calculations based on SORS datas. Source: own calculations based on SORS datas

Development in the minimum and average wage Share of the minimum wage on the average gross wage Share of the minimum wage on the average net wage (Kaitz Index) Proposals for the growth of the minimal wage 2017: Trade unions: 442,00 EUR Government: 435,00 EUR Employers: 430,00 EUR

Minimum wage and the poverty line Source: SORS, EU-SILC 2009-2014.

Economic development Development of GDP growth (billion EUR, %) Development of inflation rate CPI (%) 2Q/2016 3,7%. 07/2016 -0,9%. Source: own calculations based on SORS datas. Source: own calculations based on SORS datas.

Economic development Development of unemployment rate (%) Development of number of unemployed persons (thousands of people) Development of unemployment rate (%) 07/2016 300,4 tis. 07/2016 9,4%. Source: own calculations based on SORS datas. Source: own calculations based on SORS datas. .

Share of salaries, profits and taxes in GDP Slovak Republic in 2004 (%) EU-28 in 2004 (%) Source: own calculations based on Eurostat datas. Source: own calculations based on Eurostat datas.

Share of salaries, profits and taxes in GDP Slovak Republic in 2014 (%) EU-28 in 2015 (%) Source: own calculations based on Eurostat datas. Source: own calculations based on Eurostat datas.

The Share of salaries, profits and taxes in GDP The share of salaries in GDP in V4 countries (%) The share of salaries and profits in GDP EU- 28 versus SR (%) Source: own calculations based on Eurostat datas. Source: own calculations based on Eurostat datas.

Labour migration Total labour migration (thousands of people) Labour migration into the Czech Republic (thousands of people) Source: own calculations based on SOSR and Offices of Labour, Social Affairs and Family datas. Source: own calculations based on SOSR and Offices of Labour, Social Affairs and Family datas.

Labour migration Labour migration into Austria (thousands of people) Labour migration into Germany (thousands of people) Source: own calculations based on SOSR and Offices of Labour, Social Affairs and Family datas. Source: own calculations based on SOSR and Offices of Labour, Social Affairs and Family datas.

Political development Results of the elections 3/2016 New government coalition  and results of the elections SMER-SD 737 481 28,28 % Most – Híd 169 593 6,50 % SIEŤ 146 205 5,60 % SNS 225 386 8,64 %

Political development Changes in 8/2016 Tripartite SMER-SD Most-Híd SNS Change in the number of seats in Parliament 

Legislation Amendment to the Collective Bargaining Act Act on cross-border posting of employees – from June 18, 2016 3 new procedure codes – from July 1, 2016 (establishment of labor courts and special employment procedure) Government decree on minimum wage in 2017

Current legislative development of TOP On March 16, 2016, a finding of the Constitutional Court of the Slovak Republic preventing further extending of commitment to higher level collective agreements was published. The Constitutional Court of the Slovak Republic has decided that the institute proper of extending of commitment to higher level collective agreements complies with the Slovak law, however, the selected process method based on voluntary decision making of the minister of labor is not constitutionally compliant. An amendment to the Collective Bargaining Act that should rectify the legal shortcomings objected to is in preparation (the estimated date of entry into force is March 1, 2017).

Current legislative development The amendment provides the criteria for assessment of concluded higher level collective agreements if they are to be extended (introduction of so-called automatic extending). Term “representative higher level collective agreement” is being introduced – commitment to such a collective agreement may be extended (the purpose is to restrict the so-called “yellow” trade unions). The amendment puts an emphasis also on representativeness of the social partners, in particular trade unions, where the existence of a parent organization and enterprise collective agreement of a particular employer is required as a proof of representativeness.

Situation in the individual trade unions

For year 2017, OZ KOVO will be collectively bargaining one new higher level collective agreement (glass industry) and 5 supplements adjusting wages (road transportation, mechanical industry, metallurgical and electrical industries, services). Proposals for adjustment of wages of employees will concentrate on the minimum wage increase in 2017 and on the situation in individual economy sectors. Tariff wages development contained in higher level collective agreements in correlation with the average wage in the industry is graphically depicted in a separate slide.

Share of wages in the total costs SK NACE (%) Sector (%) Source: own calculations based on SOSR Source: own calculations based on SOSR

Collective bargaining Development of the average wage and of the minimum rates of pay - higher level collective agreement 2015 Development of the average wage and of the minimum rates of pay - higher level collective agreement 2016

Membership basis Number of members in total 69.486 Pensioners 7.962 Women 10.906 Number of new members in the year 2015 422 Organisation in metal industry (wherever we operate) 38% Number of basic organisations 389 Zdroj: ŠÚSR.

Selected indicators for development in textil, clothing and leather industries in Slovak Republic   Index 1-3/2016 Turnover for self output and goods in Euro 99,2 Produktivity of the work arising from the incomes for the self output 97,0 Average identifies number of the employees 99,4 Average wage 105,7 Index – the same period of the previous year

Collective bargaining Higher level collective agreement for the sector is not consluded (absence of a social partner) Collective agreement on company level (priority) Basic aims of IOZ for collective bargaining in 2017 advocate the importance of collective bargaining upon the exercise of entitlements of employees beyond the framework of the generally binding legal, agree on and enter into collective agreements with all entities-employers that have the fundamental organization of the IOZ established, ensure a wage increase through collective bargaining, reflecting the increase of work productivity, employees‘ cost of living and employment rate maintenance, on the IOZ level, provide professional, methodological and legal aid to ZO upon collective bargaining.

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