Slovakia adopts law boosting workers' rights

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BRATISLAVA, June 28 (Reuters) - Slovakia's parliament approved on Thursday legal changes designed to give workers more protection, overriding criticism from the opposition and business that they would harm the nation's economic competitiveness.

The amendments to the labour code, which also give more powers to trade unions, were one of the main promises that helped leftist Prime Minister Robert Fico beat a centre-right administration in a June 2006 election.

"This is a law fully in line with the government programme. We have significantly strengthened the position of employees," Fico said in parliament shortly after the vote.

"It is a major return to a socially-oriented labour code. It proves that this government coalition thinks about workers first, and only then about employers," he said.

The law was approved by 83 deputies in the 150-seat parliament, with 61 members of the assembly voting against.

The opposition criticised the bill, which has yet to be signed by the president into law, as damaging to the economy of the ex-communist European Union member.

"This bill is bad because it will reduce flexibility of the labour market, worsen competitiveness of the Slovak economy and lead to fewer job opportunities," opposition deputy and former reformist Finance Minister Ivan Miklos told parliament.

Companies were also quick to slam the new labour code, which will grant more generous severance conditions to workers and give trade unions rights to negotiate labour norms, as well as limiting night shifts and fixed-end contracts.

"Job market flexibility is one of the factors watched by foreign investors, and this (law) may have a negative impact on the inflow of foreign investment," Marian Jusko, chairman of oil refiner Slovnaft and head of the National Union of Employers (RUZ), told reporters after watching the vote in parliament.

Foreign investment inflows, mainly into the key automotive industry, fuelled Slovakia's record economic growth of 8.3 percent in 2006 and helped to cut the jobless rate to the lowest level ever of 8.3 percent in May.

(Additional reporting by Martin Santa)