By: Vida Kocjan
While the government is largely engaging in tourism at the taxpayers’ expense or is on vacation, invisible and silent, Slovenia is shaken by news of worker layoffs and relocation of production.
According to a survey by the Slovenian Chamber of Craft and Small Business (OZS), published at the end of October, as many as 68 percent of companies in the automotive industry are considering layoffs. That is more than two-thirds of them. The reason cited is a decline in orders. It is estimated that they will be forced to lay off between 30 and 50 percent of their employees, with some companies even talking about laying off 50 to 70 percent of their workforce.
The Economic Circle, which comprises 17 economic and agricultural associations and organisations in Slovenia, also reports that layoffs are partly driven by weak demand in the European automotive sector. This is pushing companies to pursue cost efficiency and structural restructuring, which includes, among other things, relocating production. The latter is happening beyond the scope of weak demand alone.
It is also concerning that similar reports of layoffs and production relocations are coming from many other companies not related to the automotive industry.
The business sector further warns that especially in such strained economic conditions, a non-competitive business environment in Slovenia is making it even harder for companies to operate. The business community has therefore prepared its own proposals, which include additional necessary systemic measures. All of this is on the table, but it seems that on the other (governmental) side, there is no one to review, accept, or implement these proposals.
The year 2025 will be a challenging one. Meanwhile, our leaders are playing games. Work is not exactly their strong suit, and the thunderous, resounding words of the Prime Minister – who spends more time on vacation than at work – about how Slovenia is exceptionally prepared for the crisis (supposedly the best in Europe or the world) do not hold any weight here. One cannot live off empty talk. The wake-up call will be hard, and perhaps the only criticism we can level at the business sector is that they have not been louder in voicing their warnings.