EMPLOYMENT OF DISABLED PEOPLE IN SLOVENIA with case study of Mercator IP

1. EMPLOYMENT OF DISABLED PEOPLE IN SLOVENIA with case study of Mercator IP Polona Benić

2. CONTENT OF PRESENTATION • KEY CHALLENGES IN THE FIELD OF EMPLOYMENT OF DISABLED PEOPLE IN SLOVENIA • QUOTA SYSTEM • Incentives for employers in the quota system • General incentives • CASE STUDIES

3. BASIC STARTING POINTS…… ACCESS TO WORK AND EMPLOYMENT - WITHOUT DISCRIMINATION ENSURING EQUAL OPPORTUNITIES FOR PRODUCTIVE EMPLOYMENT

4. DISABLED AND DISABILITY • Disability is a permanent physical or mental impairmentthatcan not be healed through individual's treatment or rehabilitation • Disabled are not a homogeneous group, they are a diversegroup • 15% of the world population is Disabled, the trend is increasing

5. INSIDE VICIOUS CIRCLE…. KEY CHALLENGES IN THE FIELD OF EMPLOYMENT OF DISABLED PEOPLE IN SLOVENIA • Scattered legislation and complicated legal procedures when benefiting the incentives • Mistrust of employers • Disabled are passive

6. DISABLED PEOPLE IN SLOVENIA • Estimated to between 160.000 and 170.000 people with disabilities • Estimated to 90.000 people with disability status • In Slovenia every 13th inhabitant is disabled

7. DISABLED IN THE LABOUR MARKET EMPLOYED (30.851 - 2015) UNEMPLOYED (cca. 17.000) • Self-employed (1%) • Typical – normal work environment (80%) • Sheltered companies (18%) • Job centers (1%) • With lower education • Low-paid work • 17.936 ( in 2013) • Concerning educational structure • High age • Long-term unemployment

8. FROM PASSIVE TO ACTIVE… ABSOLUTE PROTECTION OF DISABLED WORK ABILITY / DISABILITY A quota system for disabled Changing the scope of the rights and the amount of compensations from disability insurance Modified / changed work ability Finding a job based on competencies, skills, experience and interests

9. INCENTIVES FOR EMPLOYING DISABLED PEOPLE

10. The legal basis… • Zakon o delovnih razmerjih (ZDR-1) • Zakon o spremembah in dopolnitvah zakona o urejanju trga dela (ZUTD-A) • Zakon o matični evidenci zavarovancev in uživalcev pravic iz obveznega in invalidskega zavarovanja (ZMEPIZ-1) • Zakon o zaposlitveni rehabilitaciji in zaposlovanju invalidov (ZZRZI-UPB2) • Zakon o spremembah in dopolnitvah Zakona o zaposlitveni rehabilitaciji in zaposlovanju invalidov (ZZRZI-C) • Zakon o pokojninskem in invalidskem zavarovanju (ZPIZ-2) • Zakon o varnosti in zdravju pri delu (ZVZD-1) • Uredba o določitvi kvote za zaposlovanje invalidov; • Pravilnik o merilih in postopku za pridobitev statusa invalida, za priznanje pravice do zaposlitvene rehabilitacije in za ocenjevanje zaposlitvenih možnosti invalidov • Pravilnik o merilih in postopku za določitev višine subvencije plače za invalide • Pravilnik o načinu dela Komisije za ugotovitev podlage za odpoved PZ • Navodilo za izpolnjevanje obrazca prijave v zavarovanje za invalide • Sklep o kriterijih, merilih in postopku za določanje višine sredstev za prilagoditev prostorov in delovnih sredstev ter usposabljanja za zaposlitev za delovne invalide

11. Since 2006….. Quota system COMMITED / LIABLE TO QUOTA • Employers who employ at least 20 people • Shareholders / managers and enterpreneurs included QUOTA ACCORDING TO ACTIVITY OF BUSINESS 2% - commercial, hospitality, finance, insurance, culture, .. 3% - construction, transport, real estate, education, .. 6% - agriculture, mining, manufacturing, water supply, energy, health and social care For employers who employ LESSthan 50 people, a quota is reducedby one percentage point, but can not be less than 2%

12. Since 2006….. Quota system HOW TO ACHIEVE QUOTA? • By employing prescribed number of people with disability (registered in healthinsurance, part-time workers) • By paying the contributionforstimulating the employment of disabled (70% of the minimum wage for each disabled person missing; 2015 = € 553.51) • Alternative fulfillment of the quota (sheltered enterprise, employment center)

13. Incentives for employers in the quota system ACHIEVED QUOTA = NO INCENTIVES • EXCEEDED QUOTA: • Award for exceeding the quota (20% of the minimum monthly wage) • The exemption from payment of contributions for pension and disability insurance CHRONOLOGICAL PRINCIPLE ! Date of signing the employment contract with the same employer, regardless ofthe time of disability

14. Since 2012 ….. Alternative fulfillment of the quota • The employer, liable to quota, which does not meet the quota • Abusiness cooperation with the shelteredenterprise or employment center • Object of the contract can not be intermediary servicesand resale of goods • Service = 80% of the cost of labor; product = 20% of labor costs • The cost of labor, which is sufficient for alternative fulfillment of 1 disabled person must be at least 15 minimum wages in 12 months = 988,41 €/ monthly

15. General incentives • Adapting the workplace – Reasonable accommodation • Supportiveemployment • Wagesubsidies • Tax relief

16. CASE STUDIES - INCENTIVES

17. Adapting the workplace Reasonable accommodation • Adjustment of work - place and workingspace • Adjustment of work utilities and devices • Adjustment of work - environment • Adaptation of the software to the needs of the disabled • Reasonable accommodation, in order to inform and educate the proposed amendments to the disabled.

18. A supplementary period Article 138.of the Law on Pension and Disability Insurance (ZPIZ-2) • Workerswith physical impairment of at least 70% • War invalidsfrom I to VI. group • Civilian war invalids from I to VI. group • BLIND • DEAF • Someheavier disease (multiple sclerosis,…) • 12/15

19. Physical impairment Physical impairment and the disability status • 70% of physical impairment due to loss of hearing • 90% of physical impairmentdue to loss of vision • At least 80% of the total of physical impairment (whencumulative)

20. Vocational (occupational) rehabilitation • Short-term training and education • Officialeducation • Practical, appropriatescope of work • Reasonable accommodation

21. Employment rehabilitation The network of concession holders …Unemployed disabled people are included in the ER …Training for at least 3 months …The employer has no obligation in terms of cost reimbursement …120 hours monthly / full-time …14 services …supported employment …wage subsidies

22. TO CUT THE VICIOUS CIRCLE……. CHANGES REQUIRED: • The political / statelevel • Simplificationof procedures • Sharepoint (the lack of information) • Employers level: • The key players in the field of employment of peoplewith disabilities • Positive treatment of people with disabilities • Creative use of the ability of people with disabilities • Disabled level: • Labour and social inclusion takes precedence over passive income • Know-howabout the incentives that are available to employers for employing disabled people

23. CASE STUDY • MERCATOR IP – • SHELTERED COMPANY (WORKSHOP)

24. MERCATOR VS MERCATOR IP MERCATOR MERCATOR IP • Socially beneficial activities • The principles of social entrepreneurship • Vulnerable groups of employees • Without profit sharing • Solidarity • Leading retailer • Increasing of the market share • Revenue growth • Increased profitability • Increased productivity • Business optimization Corporate social responsibility

25. REASONS FOR THE ESTABLISHMENT OF „IP“ MERCATOR D.D. IN 2008: • approx. 11.500 employees • more than 700 employees with disabilities, representing 6,59% of all employees • 72% of disabled are women • The average age of disabled is 48 years • 90% of people with disabilities perform operational tasks (salesman, merchandise manipulator, commissioner) KEY CHALLENGES: • Exceeding the quota (2%) • The growing trend of disability (2003: 5,28%; 2008: 6,59%) • High restrictions at work (lowworking ability) • A lot of physical work in the operational activities (retail, logistics) • Few opportunities in ensuring the adequate work

26. MERCATOR VS MERCATOR IP Principle of self-sufficiency Many activities that are necessary for the functioning of a large system such as Mercator will be covered by the own human resources

27. MERCATOR IP • Established in 2008 • A subsidiary of Mercator • The rapid growth • Diversification of activities

28. AREAS OF ACTIVITIES PRODUCTION ACTIVITIES SERVICE ACTIVITIES • The production of natural cosmetics „DVOREC TREBNIK“ • Drying fruit unit • Confectionery unit • Prepared meals unit • Spreads and salads unit • Sandwich unit • Cod fish spread unit • Services of fire extinguishers and hydrant network • Grinding blades • Archive • Arranging sales area (commercial communications) • Occupational safety, health at work and fire protection • Food safety and internal control • Reception services • Fixed assets inventory

29. BUSINESS STRATEGY NEW SERVICES AND INOVATIVE PRODUCTS (R&D) CREATING NEW AND MORE JOBS FOR THE DISABLED SUITABLE TRAINING AND ADAPTING WORKPLACE POTENTIAL DEVELOPMENT OF ALL EMPLOYEES

30. WE BELIEVE…… • Disability does not mean incapacity to work. • THE APPROPRIATE SUPPORT • OFFERS A POSSIBILITY FOR EQUAL INTEGRATION

31. Thank you for your time and attention!