COM CALLS ON NEW MINISTER OF LABOR

UNCLAS LJUBLJANA 000075

SIPDIS

SIPDIS

EUR/NCE (SSADLE),USDOC/ITA (CRUSNAK)

E.O. 12958: N/A
TAGS: ECON EINV ELAB PREL SI
SUBJECT: COM CALLS ON NEW MINISTER OF LABOR


1. (U) Summary. When Minster of Labor, Family and Social
Affairs (MOL) Janez Drobnic was ousted by parliament in
December 2006, former State Secretary Marjeta Cotman was
tapped by Prime Minister Janez Jansa to lead the Ministry
through important negotiations and reforms. Labor reforms and
brokering a long-term agreement between employers and labor
unions are key elements of Cotman,s mandate. On the two
issues most relevant to U.S. interests - reform of rigid
labor laws and the MOL role in combating TIP, Cotman did not
provide fresh ideas or perspective. She maintained that most
current social welfare programs must remain in place, and she
asserted that TIP was primarily a law enforcement issue. End
Summary.

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Background
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2. (U) COM paid a courtesy call on the new Minister of Labor
February 2. Cotman, a lawyer by training, started as State
Secretary in the Ministry of Labor in 2004 at the same time

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her predecessor, Janez Drobnic, started as Minister of Labor.
In November 2006, Prime Minister Jansa called for Drobnic to
resign, citing mismanagement of the social dialogue between
employers and trade unions. Drobnic, who had the support of
junior coalition partner New Slovenia party (NSi),refused to
step down, stating that he believed he was doing a good job.
Drobnic, considered a committed and honest minister, was also
acknowledged to be a poor politician, often upsetting other
ministers. Finally, Jansa asked parliament to dismiss
Drobnic, which it did on December 1. Cotman was nominated a
week later and confirmed as Minister of Labor on December 18.
Supporters aver that, as the former state secretary, Cotman
brings continuity. Detractors see her "insider" status as
promoting business as usual, thus bringing no improvement
over Drobnic.

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Reforms Without a Plan
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3. (U) Cotman outlined for COM her priorities during the
remaining two years of Jansa's mandate. Her primary tasks
will be to continue to negotiate and revise current labor
laws. She stated that it is important to balance the
interests of all social partners and be a strong listener
during negotiations. After her first round of negotiations,
she is very optimistic, having sent amendments to the health
insurance act to parliament after over a year of talks.
(Note. Employer associations were not happy with the
amendment, believing it lacked necessary provisions for
employee accountability. End Note.) COM raised the common
complaint by foreign investors: rigidity of the Slovenian
labor force as a barrier to more foreign investment. Cotman
acknowledged that Slovenia has one of the most rigid labor
forces in Europe but that social security rights must stay
the same, believing that without the social benefits, overall
salaries for Slovenians would be too low. She said she
preferred the idea of "flexicurity," but did not elaborate on
what she meant by this.


4. (U) COM asked how she will address unemployment and
concerns regarding predicted pension fund shortfalls.
Cotman's solution was to get more people into the work force
paying into pensions. Slovenia's current system, she said,
provides no incentive for the young and the old to work. The
young fare better as perpetual students and the retirees have
ample pension benefits, which now start at age 55. As part of
reform efforts, Cotman said that the pension age will be
increased annually. Cotman has high hopes for a new plan
started last year: any employer who hires someone younger
than 26 or older than 55 will be reimbursed by the government
for social security contributions for these employees, which
total about 14% of the salary. Cotman did not explain how the
government subsidies would be funded.
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TIP
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5. (U) The Ministry of Labor has a representative on the
inter-agency working group against trafficking in persons.
The MOL is responsible for tendering and awarding the
contracts for long-term care for victims of trafficking.
Additionally, it helps victims with employment and social
benefits. COM commented that Slovenia's record is very good
but emphasized that Slovenia will face more challenges with
the growing number of Eastern European women getting caught
up in prostitution. Embassy Ljubljana has provided funding
for training programs for other members of the working group
and COM asked whether Cotman thought the Ministry of Labor
would benefit from training. Cotman asserted that training
was not necessary because most ministry employees never come
in contact with victims of trafficking. She believes that
preventive measures, nder the purview of the police, were
the most imortant.

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Comment
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6. (U) Th new minister did not appear eager to tackle anycontroversial issues,
preferring to sidestep toughquestions
with vague plans. There seems to be an nherent contradiction
in wanting to keep older pople working longer while bringing
the young into the work force sooner. This model will only
work with a commensurate increase in available jobs. Cotman
did not offer any new ideas or indicate that there were any
firm plans to create new jobs either through domestic
programs or by attracting outside investment. On the issue of
trafficking, the Ministry of Labor has historically seen this
as an outside issue and has been the weakest member of the
interagency team. Despite Cotman,s assertion that MOL has
little to do with the GOS fight against TIP, it does actually
do its part through the tendering process for victim care,
scrutiny of labor permits for dancers in bars and other
professions, and providing certain social welfare services to
victims. Cotman, like her predecessor, however, seems
willfully ignorant of these important contributions. Post
will follow up with the head of the inter-agency working
group on TIP to ensure that Cotman hears from other
government officials about the priority the GOS places on
this issue. End Comment.


ROBERTSON