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AZZZ Praises Stable Political System as Vital for Investors
Friday 11 June 2010 Zoom in | Print page
Bratislava, June 11 (TASR) - Slovakia has a stable political system and economy with minimum related risks, which will lure in new investors; on the other hand, the amended Labour Code weakens employers' position, said the Federation of Employers' Associations (AZZZ) when assessing the performance of Robert Fico's government.
Notwithstanding the current Cabinet negatives, Slovakia has in the past had stable governments which has completed the country's integration into Europe by adopting the euro, AZZZ president Tomas Malatinsky told reporters. "We send out political stability signals, which is vital for the foreign investors' perception of the country," said Malatinsky.
He however added that AZZZ, the only employers' organisation to be a partner of the government and labour unions under a social tripartite agreement, negatively judges the labour market flexibility compared to that under previous government, which has unfavourable effects on unemployment and the business climate. Investors find employer's position in a country as especially important in terms of the feasibility of staff redundancies.
According to him, the amended Labour Code weakens employer's position in that it make it harder – based on social policies – to lay off or fire an employee. In the long run, this is counterproductive, according to Malatinsky.
"If firing is easy, employers will decide more quickly to hire (replacement) people. If firing is complicated the firm will not hire employees until they really have to," he said. This fact is vital for investors deciding on where to locate investment.
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