SLOVENIA: COM AND NEW LABOR MINISTER DISCUSS

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E.O. 12958: N/A
TAGS: PREL PGOV ELAB PINR PHUM SI
SUBJECT: SLOVENIA: COM AND NEW LABOR MINISTER DISCUSS
PRIORITIES, INCLUDING TEMP WORK PERMITS FOR TRAFFICKING
VICTIMS



1. (SBU) SUMMARY: In a 16 February courtesy call, new Labor
Minister Janez Drobnic told COM that combatting unemployment
is his top priority, with a focus on introducing programs to
help the disabled, the elderly, and first-time job-seekers.
Drobnic also listed improving MoL's IT base as a key
priority. COM pressed Drobnic on labor initiatives to make
Slovenia more attractive for U.S. investment, prompting
Drobnic to describe the need for greater flexibility of labor
and a more mobile workforce. Drobnic agreed immediately when
COM urged him to work with a local NGO to allow temporary
work permits for human trafficking victims and said
cooperation on this front was already underway. END SUMMARY.


2. (U) COM was accompanied by DCM and Pol-Miloff on his
first courtesy call on new Minister for Labor, Family and
Social Affairs Janez Drobnic on 16 February. Drobnic was
joined by Chief of Staff Valentin Hajdinjak and Head of
International Cooperation Jana Lovsin.

PRIORITIES: UNEMPLOYMENT TOPS THE LIST
--------------


3. (SBU) UNEMPLOYMENT: Drobnic said his top priority is
combatting unemployment by creating work opportunities both
in general and for specific groups, such as older and
disabled workers. Drobnic said "registered unemployment" in
Slovenia exceeds ten percent, but that the ILO figure for
Slovenia is 6.4 percent. Drobnic said his working assumption
is that approximately six to seven percent of the population
is actually unemployed, making Slovenia comparable to other
EU countries. He said Ireland could serve as a good model
for Slovenia in driving down unemployment. He cited the need
for a more flexible labor force and improvements in labor
relations.


4. (SBU) DISABLED, ELDERLY AND YOUNG UNEMPLOYED: Drobnic
said a new law introduced earlier this year will ensure new
jobs and more flexible work for the disabled. While eight
percent of Slovenes are disabled, Drobnic noted that the
majority of those are retired. He said 50,000 disabled
Slovenes are in the labor market, but that 20,000 of those
are currently unemployed. For other target groups, Drobnic
said the MoL is developing training programs for young,
first-time job-seekers, as well as special programs for the
elderly unemployed. He added that these programs would be
applied "horizontally" (i.e. across the country),regionally,
and in hard-hit localities that qualify for special European
Commission support.


5. (SBU) INFORMATION TECHNOLOGY: Citing EU-inspired
priorities, Drobnic said MoL would seek to introduce new
information technology that will help Slovenia achieve
sustainable growth and a dynamic economy. Drobnic suggested
that a better IT base would give his ministry the tools it
needs to "see what's wrong" with the labor market. He said
funding for "social aims" (such as unemployment benefits) had
risen in the past two years and pointed out that the
accumulation of subsidies available to the unemployed can
exceed the minimum wage. Drobnic lamented this disincentive
to look for "appropriate work."

COM PUSHES FOR FDI-FRIENDLY POLICIES
--------------


6. (SBU) FDI PROSPECTS: COM explained Post's priority of
increasing U.S. investment in Slovenia, mentioning that U.S.
companies were attracted to Slovenia's highly qualified
workforce but were sometimes put off by the high costs of
"limited (labor) flexibility." Drobnic agreed that workers'
mobility is a problem in Slovenia, saying "it is not in our
culture to move during our working lives." Nonetheless, he
recognized the need from an investor's standpoint to have
more control over hiring and firing, in addition to a more
mobile pool of workers. More importantly, Drobnic recognized
that government policies to create more flexibility for
employers and stimulate greater workforce mobility would
ultimately stimulate the economy and produce more jobs.


7. (SBU) TRADE UNIONS: In response to COM's question about
how trade unions might impact GoS labor policies, Drobnic
replied that the EU provides Slovenia with leverage in that

respect. He said EU standards have improved prospects for
investment and employment opportunities since they were
adopted by Slovenia last year. Drobnic said that organized
labor in Slovenia recognizes the need to move toward greater
flexibility and a more mobile workforce, adding that
"competitiveness within the European region depends on it."


8. (SBU) FUTURE TRENDS: Asked by COM to predict future
labor market trends, Drobnic said that employment
opportunities would continue to fall in the textile, leather
and clothing industries. He said, however, that the trend
would be countered by increased opportunities in the service
industry. Nonetheless, Drobnic said it would be important
for Slovenia to support its "primary economic sector (or
industrial base)," because it would be hard to develop the
services sector without a strong such industrial base. He
added that Slovenia is not attractive for financial sector
investors.

TRAFFICKING IN PERSONS: TEMPORARY WORK PERMITS FOR VICTIMS
-------------- --------------


9. (SBU) COM raised the issue of Trafficking in Persons
(TIP) with Drobnic, urging the MoL to work with the local NGO
Kljuc to draft regulations allowing trafficking victims in
Slovenia to apply for temporary work permits. As COM
explained, encouraging the victims to stay in the country
while traffickers are prosecuted can ultimately lead to a
higher conviction rate. While he had not been thoroughly
briefed on the details of MoL's cooperation with Kljuc,
Drobnic immediately responded that he knew of the Kljuc
initiative and "support(ed) it completely." Drobnic noted
that U.S. cooperation had helped the GoS - and the MoL,
specifically - make progress on TIP. He acknowledged that
Slovenia is not just a transit country, but also a
destination country, and he stressed the importance of
ensuring support for trafficking victims. Drobnic's staff
later told DCM that MoL had recently sent amendments back to
the GoS interministerial working group on TIP regarding the
rights of trafficking victims to work in Slovenia. They
added that a separate document had been prepared by the
Interior Ministry to guarantee victims the right to reside in
Slovenia.

COMMENT AND BIOGRAPHICAL NOTE
--------------


10. (SBU) COMMENT: Drobnic set a very friendly tone in this
first official meeting with COM. He seemed to grasp the
challenges facing his ministry quite clearly, and we hope he
will provide the leadership necessary to push through labor
reforms that will make Slovenia more attractive for foreign
investment. Drobnic has a long history of working to create
employment opportunities for the disabled, perhaps explaining
his focus on this group when discussing MoL priorities. He
has also been a member of an international association to
offer support to crime victims - the White Ring Association -
perhaps explaining his immediate expression of support for
regulations to help trafficking victims. Unfortunately,
Drobnic's sympathies may not extend to all sectors of
society. His recent rather negative public statements on gay
rights and same-sex partnerships have prompted a group of
European Parliament Members to ask EC President Barroso to
call upon the GoS to retract Drobnic's statements publicly.
The MEPs' letter of 03 February alleges that Drobnic has also
made public expressions of intolerance toward single mothers,
Roma and Muslims in the past. END COMMENT.


11. (U) BIOGRAPHICAL NOTE: Drobnic was born on 23 October
1957 in Globela pri Sodrazici. He obtained a diploma from
the College of Labor Organization in Kranj and later earned a
master's degree in Sociology from the University of Ljubljana
in 1991. He was elected to Parliament in 2000 and he became
the leader of the Nova Slovenija (NSi) Parliamentary Group in

2002. In Parliament, he was active on the Committee for
Supervision of Security and Intelligence Services and the
Committee for Labor, Family, Social Policy and Health Care.
Drobnic was the only Slovenian politician in a pre-U.S.
election survey who stated publicly that he would vote for
President Bush if given the opportunity, remarking that the
President's political agenda was close to his own. Drobnic

is an avid skiier. His English skills are good, but
sometimes lacking in fluency. END NOTE.
ROBERTSON


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2005LJUBLJ00118 - Classification: UNCLASSIFIED



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