GOS ROMA STRATEGY: EMPLOYMENT TACTICS

UNCLAS BRATISLAVA 001016 SIPDIS DEPT FOR EUR/RPM HEATHER TROUTMAN DEPT PLEASE PASS TO CSCE COMMISSION - ERIKA SCHLAGER BUDAPEST FOR USAID - MONIQUE NOWICKI E.O. 12958: N/A TAGS: PHUM PGOV ELAB SOCI LO SUBJECT: GOS ROMA STRATEGY: EMPLOYMENT TACTICS REFTEL: (A) BRATISLAVA 740 (B) BRATISLAVA 789 (C) BRATISLAVA 855 This is the fourth and final cable in a series on current GOS activities to address Roma issues. ¶1. Summary. Many Roma settlements in eastern Slovakia suffer from high rates of long-term unemployment due to low job creation, poor education, and in large part, discrimination. In the beginning of 2004, the government instituted needed changes to the social benefit system, which had been widely criticized for supplying an income comparable with the average wage and providing little incentive to find employment. The GOS included a bonus for community service work that provided an additional 30 USD a month. The activation has mobilized the Roma workforce, but was designed only as a short-term fix to the problem of long- term unemployment. End Summary. Discrimination in the Workplace -------------- ¶2. Most settlements have unemployment rates close to 100 percent. The only options for income are social benefits, black market jobs, or traveling to other countries to seek work. Roma frequently state that after being invited to interview for a job over the phone, they are turned away after the potential employer sees them face-to-face. After the recent passage of the anti-discrimination law, newspapers and TV programs have increased reporting and scrutiny of proprietors who refuse entrance by Roma into businesses or those with unfair hiring practices. In addition to the government-sponsored Center for Human Rights, the Section for Human Rights at the Government Office will provide legal assistance to individuals to pursue court cases under the anti-discrimination law. Jana Kviecinska, the Section's Director, predicted it would take a lot of court cases to get employers to change their attitudes. ¶3. Dagmar Horvathova, Director of the Roma NGO "Nova Cesta" in Michalovce in eastern Slovakia, hopes to begin a placement agency for Roma from settlements, providing service both domestically and abroad. District unemployment offices and NGOs have provided training, mostly in regions with high unemployment and also for the majority population. Few private sector activities have attempted to create opportunities for Roma. U.S. Steel, the largest U.S. investor, has hired several Roma from a neighboring village and provides continuing training in household money management. The Activation Bonus -------------- ¶4. The prior social benefit system contributed to Roma unemployment since the income was roughly equal to an average month's wage and provided no incentive to be employed. Romano Nevo L'il, a newspaper circulated for the Roma minority, referred to the system as "income substitution." At the beginning of 2004, the government instituted significant changes to the benefit package for long-term unemployed to reduce total payments. The GOS balanced this step by instituting a bonus for those seeking community service positions offered by local government. After lootings occurred before the first round of payments, the government responded by raising the bonus amount and allowing NGOs and the private sector to participate in the program. ¶5. The Ministry of Labor (MOL) recently announced the impact of the reforms up to this point comparing statistics from last year. Overall, the number of individuals on social benefits was reduced and the unemployment rate has decreased by 3 percent over the year. According to the MOL, over sixty percent of those who are off the rolls found gainful employment. Another reason for improved figures was that 120,000 unemployed began working and received the activation bonus. It is illegal for the government to collect statistics according to ethnicity, but it is reasonable to assume a significant number were Roma. ¶6. Government officials have extended the life of this program for an additional year, but it is not a permanent feature of the social reform. Some activists state that the number of jobs cannot be maintained through the winter, and Roma are not learning any marketable skills should the program end. On the other hand, Kezmarok Mayor Igor Sajtlava stated that the activation bonus and the mobilization of the workforce has been beneficial. Stereotypical attitudes that Roma do not want to work or that they are incapable of holding a job have begun to be chipped away. Additionally, community service gives many Roma their first experience with a job, as many have never worked, nor seen their parents hold a job. Looking Forward -------------- ¶7. In July the government approved a National Plan for Employment 2004 to 2006. Recently the MOL signed a memorandum with the European Commission on social inclusion with many measures focusing on disadvantaged groups. This long-term strategy respective of market principles will gradually replace the short-term policy of bonuses. The government continues to make progress in this area, however much more time and effort is needed. WEISER NNNN