Legislation expels capital from Slovakia, industrialists complain

The operation of industrial companies in Slovakia this year was negatively affected not only by the cooling of the economy and the decline in orders, but also by legislation. Andrej Lasz, Secretary General of the Association of Industrial Associations, told SITA.

“We still do not feel the declared loss of laws or bureaucracy loads. However, what we felt significantly throughout the year was unsystematic nature of the measures taken, important laws proposed and accepted as parliamentary proposals, unpredictability of wage expenditures people and others. We stand behind the statement that Slovak legislation is literally expels capital from our country. It is already much more advantageous for companies to produce in the surrounding countries, “says the association.

According to her, foreign companies can move their production to another countries, which will cause Slovaks to lose their jobs, domestic companies, which are opposite foreign undercapitalized, in turn, prevents the current situation from growing.

Lots of changes at once

“We are talking about allowances for work, allowances for holiday vouchers, changes in the Labor Code that increased the number of holidays young parents. For example, companies will also be affected by tax increases from real estate, “Lasz said. Businesses have to find it all finance regardless of the status of orders or revenues, if they want to continue operating. According to him, the solution may therefore be to suspend investment in development, in the worst case, dismissal.

The current situation is that companies have shortened the working week and canceled shifts. “Significant redundancies in the industry have been achieved this year to avoid. Laying off people is always the last resort, however we do not rule out that he will not come to him in the new year. It is not effective for companies dismiss employees because they have invested time in their qualifications, and money. In addition, after overcoming the crisis, it would be difficult to get them back. That is also why we are pushing the government to adopt legislation that will help employees and employers to overcome such a period without redundancies, ”states the association.

Wage costs scare companies

According to the association, the plans of industrial companies for 2020 are very uncertain, as it is currently not possible to estimate how the crisis will affect individual sectors of industry. “It is therefore a matter of saving, respectively careful investment in new equipment, research and innovation. Companies they will also continue to reassess repair plans, “the general added secretary.

According to the association, companies that have capital will look for opportunities such as increase the added value of their products through technology, and labor productivity. “It will increase their competitiveness, which is an important prerequisite for staying on the market during the crisis, “he explained Lasz. As for the possible risks of future development in Slovakia, they are according to the association, in particular the high wage costs of employers.

“We know that the largest year in history awaits us in the new year minimum wage. For the minimum wage, people do not work in industry, but surcharges for work at night, on weekends or during the day are directly connected to it holidays. The minimum wage from the new year is therefore precisely through these supplements will rapidly increase the cost of wages. Our companies will feel it significantly, as much continuous production is common for industrial companies, “ poukázal Lasz.

According to him, the fact that after the start of the year speaks for itself 2021 to pay in Slovakia an automatic machine for calculating the minimum wage, which expects an increase to 60% of the average wage, Slovakia will have in terms of median wages, the highest minimum wage in the world. “Determination the amount of the minimum wage and its disconnection from work allowances will be for us also an important topic in 2020, which we will actively address, “ stressed.

They feel the chill of Germany

Regarding the evaluation of 2019 in terms of sales, profit and development orders, its first half was, according to the association, a smooth continuation successful year 2018. “Decline in orders and the associated decline in sales entrepreneurs began to feel after the first bad news from Germany in the context of the cooling of the euro area economy. Germany is for ours domestic companies the largest export market, so any there the slowdown also affects us. More than a fifth of our exports go there. Of course, Germany is also an important partner for other countries with which we trade, which caused a further drop in orders. You could feel it after summer holidays, “Lasz explained.

According to her, the positive of 2019 is, for example, the increase in the super – deduction to science and research up to 200%. “It simply came to our notice then we managed to convince the Antimonopoly Office of the Slovak Republic after a few months, that the employer’s contribution when entering the dual system education is not state aid. A dual education system in which The Association of Industrial Associations is also in charge of some departments overall good year. While in 2018 we were involved 3,107 students, in September 2019 5,854 students participated. Active There are currently 682 participating employers, “added Lasz.

The Association of Industrial Associations represents more than 400 companies and is member of the Economic and Social Council of the Slovak Republic. Its members are Slovak Electromechanical Association, Slovak Trade Association, Union of the Automotive Industry of the Slovak Republic, Association of the Electrical Engineering Industry of the Slovak Republic, Association of metallurgy, mining industry and geology of the Slovak Republic, Association of Construction entrepreneurs of Slovakia and the Association of the Engineering Industry of the Slovak Republic.

The operation of industrial companies in Slovakia this year was negatively affected not only by the cooling of the economy and the decline in orders, but also by legislation. Andrej Lasz, Secretary General of the Association of Industrial Associations, told SITA.

“We still do not feel the declared loss of laws or bureaucracy loads. However, what we felt significantly throughout the year was unsystematic nature of the measures taken, important laws proposed and accepted as parliamentary proposals, unpredictability of wage expenditures people and others. We stand behind the statement that Slovak legislation is literally expels capital from our country. It is already much more advantageous for companies to produce in the surrounding countries, “says the association.

According to her, foreign companies can move their production to another countries, which will cause Slovaks to lose their jobs, domestic companies, which are opposite foreign undercapitalized, in turn, prevents the current situation from growing.

Lots of changes at once

“We are talking about allowances for work, allowances for holiday vouchers, changes in the Labor Code that increased the number of holidays young parents. For example, companies will also be affected by tax increases from real estate, “Lasz said. Businesses have to find it all finance regardless of the status of orders or revenues, if they want to continue operating. According to him, the solution may therefore be to suspend investment in development, in the worst case, dismissal.

The current situation is that companies have shortened the working week and canceled shifts. “Significant redundancies in the industry have been achieved this year to avoid. Laying off people is always the last resort, however we do not rule out that he will not come to him in the new year. It is not effective for companies dismiss employees because they have invested time in their qualifications, and money. In addition, after overcoming the crisis, it would be difficult to get them back. That is also why we are pushing the government to adopt legislation that will help employees and employers to overcome such a period without redundancies, ”states the association.

Wage costs scare companies

According to the association, the plans of industrial companies for 2020 are very uncertain, as it is currently not possible to estimate how the crisis will affect individual sectors of industry. “It is therefore a matter of saving, respectively careful investment in new equipment, research and innovation. Companies they will also continue to reassess repair plans, “the general added secretary.

According to the association, companies that have capital will look for opportunities such as increase the added value of their products through technology, and labor productivity. “It will increase their competitiveness, which is an important prerequisite for staying on the market during the crisis, “he explained Lasz. As for the possible risks of future development in Slovakia, they are according to the association, in particular the high wage costs of employers.

“We know that the largest year in history awaits us in the new year minimum wage. For the minimum wage, people do not work in industry, but surcharges for work at night, on weekends or during the day are directly connected to it holidays. The minimum wage from the new year is therefore precisely through these supplements will rapidly increase the cost of wages. Our companies will feel it significantly, as much continuous production is common for industrial companies, “ poukázal Lasz.

According to him, the fact that after the start of the year speaks for itself 2021 to pay in Slovakia an automatic machine for calculating the minimum wage, which expects an increase to 60% of the average wage, Slovakia will have in terms of median wages, the highest minimum wage in the world. “Determination the amount of the minimum wage and its disconnection from work allowances will be for us also an important topic in 2020, which we will actively address, “ stressed.

They feel the chill of Germany

Regarding the evaluation of 2019 in terms of sales, profit and development orders, its first half was, according to the association, a smooth continuation successful year 2018. “Decline in orders and the associated decline in sales entrepreneurs began to feel after the first bad news from Germany in the context of the cooling of the euro area economy. Germany is for ours domestic companies the largest export market, so any there the slowdown also affects us. More than a fifth of our exports go there. Of course, Germany is also an important partner for other countries with which we trade, which caused a further drop in orders. You could feel it after summer holidays, “Lasz explained.

According to her, the positive of 2019 is, for example, the increase in the super – deduction to science and research up to 200%. “It simply came to our notice then we managed to convince the Antimonopoly Office of the Slovak Republic after a few months, that the employer’s contribution when entering the dual system education is not state aid. A dual education system in which The Association of Industrial Associations is also in charge of some departments overall good year. While in 2018 we were involved 3,107 students, in September 2019 5,854 students participated. Active There are currently 682 participating employers, “added Lasz.

The Association of Industrial Associations represents more than 400 companies and is member of the Economic and Social Council of the Slovak Republic. Its members are Slovak Electromechanical Association, Slovak Trade Association, Union of the Automotive Industry of the Slovak Republic, Association of the Electrical Engineering Industry of the Slovak Republic, Association of metallurgy, mining industry and geology of the Slovak Republic, Association of Construction entrepreneurs of Slovakia and the Association of the Engineering Industry of the Slovak Republic.