By: G. B.
Slovenia ranks among the highest in the EU when it comes to wage taxation, while on the other hand, Levica party primarily offers populist measures, such as raising the minimum wage. This causes significant harm to the economy, as companies relocate abroad, and unemployment rises.
How Labour Minister Luka Mesec will explain the rise in unemployment for another 120 workers remains unclear. However, it is evident that Boxmark Leather, the Kidričevo-based manufacturer of leather covers for the automotive and aviation industries, will likely lay off that many workers by the end of the year due to a decrease in orders, according to a report by Radio Slovenia today. The Employment Service estimates that new job opportunities could be found for the laid-off workers in the local area. According to the national radio, 60 employees are expected to be laid off by October, with an additional 60 by the end of the year.
The company, which had a successful 2023 with over 10% revenue growth to €67.6 million and a net profit of €2.1 million, was still securing new business and even hiring at the beginning of the year. However, orders decreased by up to 25% before summer, Radio Slovenia reported. The head of the Ptuj Employment Service, Tomaž Žirovnik, told them that most of the laid-off workers could soon find new jobs. Some companies have already expressed a willingness to hire these workers, although these are still uncertain promises.
“Most of them are women, and several companies are interested. One of the larger food companies in Ptuj is very interested, and there is also the social welfare sector, which has urgently needed workers over the past months, or even the past year, for those willing to adapt,” Žirovnik told the radio.
The average number of employees based on working hours in 2023 was 468, according to last year’s annual report. In 2023, 52 people left the company due to retirement or imminent retirement.
At its peak in late 2015, Boxmark employed 2,057 workers. By the end of 2019, before the pandemic, this number had dropped to 1,450, and in 2020, it plummeted to 659. The number has continued to decline since then, and according to Radio Slovenia, the target is now 380 employees. Serial production has reportedly been relocated to Croatia and Bosnia and Herzegovina, with the rising minimum wage in Slovenia cited as the reason.