Employers for their part are behaving in less and less honourable ways. They employ illegal immigrants when they can at low wages and hide them from the authorities, in fact in southern EU countries undocumented workers seem to have exploded in numbers, when these people have no right to work in the EU countries.
Iveta Radicova and the Slovak government need to recognise that some decent living standards should be afforded to workers. It is this point exactly that was lost in the USA and in China and that is why life in Europe is so much more decent uniformly around most of the continent. This is also the reason behind vastly lower crime rates in the EU compared to the US.
There are no easy decisions to be taken with the labour code, but one thing is for sure, employers that either avoid creating a decent working environment and act as if poorer people aresomehow dirty.
Allowing a society to become very unequal creates a huge number of problems that are not obvious at the start. Lobby groups will always push to extend their powers over workers, but converting the entire working population into temporary workers is not the way to strengthen the slovak economy.
Additionally the reason behind the lowering of FDI has nothing to do with competitiveness anymore as the general FDI flows are much reduced by the fear of deflation and overcapacity.
Germany needs to be our example here. It has managed to produce workers that are well rewarded and yet competitive. In other words, the country needs to be competitive through the competitiveness and home grown companies in Slovakia, not competing with China who will keep workers most repressed.
Lowly paid workers with no certainty in their lives are discouraged from starting families and investing in themselves, becoming trapped by their circumstances. A Walmart-isation if you want.
The model should be Denmark, not the USA, the USA is a huge country with big debts and a totally different culture. Entepreneurialism is a good thing but that is the only thing the USA still gets right.
Iveta take a trip to nordic countries, Sweden, denmark, finland, and even Austria. Low populations, good competitive companies, and yet highly prosperous. The future of the Slovak economy is in following their example, ever since China and India entered world trade it has meant that Slovaks will never be as cheap or as crushed.
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