VZCZCXYZ0000
RR RUEHWEB

DE RUEHLJ #0075/01 0431439
ZNR UUUUU ZZH
R 121439Z FEB 07
FM AMEMBASSY LJUBLJANA
TO RUEHC/SECSTATE WASHDC 5533
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHINGTON DC

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. 
 
---------- 
Background 
---------- 
¶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 
 
SIPDIS 
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. 
 
---------------------- 
Reforms Without a Plan 
---------------------- 
¶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. 
--- 
TIP 
--- 
¶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 
------- 
¶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