Reducing Public Sector Employment in Slovenia OECD Paris, 6 December 2006 Judita Bagon

Location: Slovenia is situated in Central Europe. Surface Area: 20,273 km2 Area – comparative: half the size of Switzerland Border Length (km): with Austria 333, Italy 232, Hungary 102, Croatia 670 (total: 1,334 km) Coastline: 46.6 km

Inhabitants 2,004,394 Employed 829,539 Unemployed 81,302 Unemployment rate 8.8% Pensioners 536,146 SLOVENIA – People (2006)

SLOVENIA – Public Sector Public Sector PA, Defence, Education, Health) 152,370 Public Administration 49,789 State Administration 35,000  including Police 9,500 Army 7,300

Employees from , ,336 Difference +24,603 (3,5x) Organising the state +19,421 Yearly increase +2% per year

New state employees from to difference Army 0 7,344 7,344 Police 7,071 9,061 1, 990 Revenue 36 2,618 2,592 Custom 251,798 1,763 Administrative units 2,902 Inspection 1,070 Geodesy, veterinary 1,030 Prisons 800 Total_____________________________

Growth of the state administration from

Employment Policies Different for: Army professionalisation of the Army, membership in NATO - by the year 2012: 8,500 Police ( Schengen border) 9,650 Public Administration reducing by 1% per year Employment to the Projects, funded by EU (technical help, EU structural funds…) is not limited Program

Reducing employees in PA Small and effective PA – current trend in all developed countries Reasons for growth in Slovenia:  Founding of the new state in 1991  Membership of the EU in 2005  Presidency of the EU in 2008

Slovenian path to reduction Personnel plans : - 1% per year (Believing in a 20-30% reserve in personnel) Developing greater organisation  Checking processes  Setting priorities  Internal labour market: obligatory HRM:  performance management  commitment of the employees

Reduction of the Employees in the Public Administration Common personnel plan for ministries (civil part) for : -3% from December 2004 Personnel plan for institutes, funds and agencies for : - 2% from December 2005 Recommendation to the public-sector organisations, established or owned by Government. no growth or -1% per year Psychological effect: from +2% to -1% per year!

Results: Number of Employees in the Civil Part of the Government Bodies from January 2003 to October October January January January January 2003 Number of Employees Period

Change in the Number of Employees in the Civil Part of the Government Bodies from January 2003 to October 2006

Important When a reduction of the employees (on each level of public administration) is in question, agreement of each responsible minister must be reached, Thank you for your attention !