The current geopolitical situation is unprecedented in the history of the Third Polish Republic – the war in Ukraine, the observable increase in tensions in the Middle East and Far East means that ensuring military security and financing defense are absolute priorities that require a strong and human resource-rich economy. Poland, being a leader in armament spending in Europe, sets a direction for other European Union countries in this respect. However, along with defense capabilities, economic stability forms the foundation of a country’s security, so we are concerned to about the proposals for systemic labor market reforms from the Ministry of Family and Social Policy (MRPiPS), at a time when many industries are raising alarms about a lack of available workers.
The Polish market is still in search of additional workers. The IT and transport sectors are excellent examples, as they are short of roughly one hundred and fifty thousand workers each according to estimates. The Polish demographic situation does not offer prospects to meet this supply gap, which calls for an approach that utilizes legal employment immigration. Poland needs to develop a long-term migration strategy that will support economic development by attracting qualified workers from abroad. Facilitating immigration procedures and ensuring the integration of foreigners in the labor market should be one of the economic policy priorities. Major business organizations have been urging for facilitations in this area for a long time.
Unfortunately, in public discourse – and increasingly in the official legislative process – there are more and more initiatives that could lead to undermining the flexibility of the Polish labor market, limiting the opportunities for employment-related immigration and increasing the costs for companies. This is even more concerning under the current conditions, as it could directly impact the Polish economy’s ability to finance the country’s defense needs in the long term.
The bill on the conditions for allowing foreigners to work fundamentally aims to streamline the procedure for obtaining work permits and can therefore be perceived positively by employers in many aspects. However, Article 6 introduces the condition of concluding an employment contract with a foreigner as a prerequisite for granting a work permit, which in practice may limit or even eliminate foreigners originating from outside the European Union from the Polish labor market.
Meanwhile, even though everyone is focused on the need to activate professionally inactive people by ensuring flexibility, such as in the area of working hours, we currently observe a clear tendency to limit the use of those forms of employment that guarantee flexibility. One notable example is the proposal to cover civil law contracts with compulsory social security insurances. This, in full extent, would rigidly structure the Polish labor market and potentially increase the size of the gray zone and is contrary to societal expectations. According to a survey conducted by UCE Research in early August, 60% of respondents believe that the government should negotiate this milestone, while only 14% of those surveyed disagreed. Apart from the negative direction of increasing employment costs on civil law contracts, we also identify other changes potentially hitting flexible forms of work, such as granting labor inspectors the possibility to order the conversion of a civil law contract or B2B contract into an employment contract by administrative decision. In this particular area, we are counting on the cooperation with the Chief Labour Inspector and proportionate and considered use of the new powers by the inspectors.
Another significant threat to the shape of the Polish labor market may be the issue of implementing the Directive on improving working conditions through internet platforms (hereinafter: PWD). The essence of this regulation is the obligation to introduce a presumption of an employment relationship for persons providing services via internet platforms into the legal systems of member states. Overly restrictive implementation of this directive could have a significantly negative impact on the financial condition of Polish society through rising prices for consumers and significant employment reductions among entrepreneurs operating in this sector. The changes would also cause further rigid structuring of the labor market and expanding the gray zone. We call for the specifics and needs of the Polish labor market to be taken into account when working on a law implementing the PWD into the Polish legal system.
Taking into account the above, we note that changes are necessary in the labor market, including systemic ones. However, these changes must cater to the current needs of both workers and employers, above all, considering the specificities of the Polish labor market, which over the past 30 years has been characterized by high flexibility in taking up work. This undoubtedly was one of the crucial factors allowing for such rapid improvement in the quality of life of Poles. The radical changes currently proposed by the Ministry of Family, Labor, and Social Policy could lead to a radical change in the situation and make Poland much less attractive for investment. Work on reforming the labor market in Poland ought to be conducted in close dialogue with employer organizations so that the postulates of entities wanting to continue to grow, and thus develop the Polish economy and wealth of the society, are genuinely heard among the representatives of the central authorities. Security costs and it cannot be earned otherwise than by a healthy, developing economy.
Signatories:
1. Digital Poland;
2. National Association of Road Transport Employers;
3. Polish Food Producers Federation – Employers’ Association;
4. Polish Chamber of Waste Management;
5. Employers of the Republic of Poland;
6. Association of Automotive Parts Distributors and Producers;
7. Union of Entrepreneurs and Employers;
8. Polish Crafts Association.
Source: https://managerplus.pl/bezpieczenstwo-i-stabilnosc-gospodarcza-pod-presja-pracodawcy-ostrzegaja-przed-negatywnymi-skutkami-reform-rynku-pracy-26712
