Petitioners Warn New Bill Puts Thousands of Vulnerable People at Risk

Bratislava, 31 March (TASR) - More than 20,000 people have signed a petition against a proposed amendment to the Act on Social Economy that could jeopardise thousands of jobs for people with disabilities, thus prompting the petition committee to call on the government and MPs to withdraw the draft before its second reading, the petition committee has told TASR, criticising the amendment for being drawn up without sufficient discussion with employers. However, the Labour, Social Affairs and the Family Ministry stands by the proposal, rejecting the committee's suspicions that it was prepared without due professional care. There are some 680 social enterprises operating in Slovakia, employing approximately 8,000 vulnerable people. "These enterprises serve as a safety net for those who have nowhere else to go on the labour market," stated the petition committee. Such enterprises are already struggling with the rising cost of energy and inputs, declining orders and new financial burdens. The situation could be worsened further by the proposed amendment, which would reduce compensatory contributions by up to 45 percent and impose stricter conditions for employment. It could also ruin the majority of social enterprises, thus triggering lay-offs of people with disabilities, said the committee, which has also dismissed an argument based on insufficient funding by noting that only 18 percent of EU funds have been drawn. According to the ministry, the new legislation has been drawn up in cooperation with the Alliance for Social Economy in Slovakia (ASES), the umbrella organisation for social enterprises, as well as with the Supreme Audit Office (NKU). The amendment was informed by NKU's practical experience and findings, which concern frequent abuses of social enterprises and the distortion of the business environment, argued the ministry, maintaining that the primary goal is to "introduce an efficient, fair, and sustainable system free of profiteering". Furthermore, according to the ministry, the effect of the measures would be closely monitored during a transitional period. Since February, the petition has gained nearly 20,000 signatures and will be delivered to the Government Office, the Finance Ministry and Parliament on 1 April. The petition committee has also called on the Labour Ministry to hold talks on potential adjustments in order to avoid putting social enterprises or jobs for vulnerable groups in peril. jrg/df