Government job-protection programme attracts little interest

2010-02-02



Companies have been slow to take advantage of financial support available under the government’s job-protection package that has been in place since August 2009, latest data show. Business leaders and experts blame overly restrictive eligibility criteria, but some admit that the situation may reflect the relatively mild character of the downturn in Poland.
By 25 January, only 111 firms had applied for financial aid from the programme (which involves e.g. state-subsidised temporary leave), seeking support worth a total of PLN 17.8m (approx. €4.4m) and designed to protect 9,577 jobs. This is well below initial assumptions, which were that the scheme would benefit 60,000 companies and 250,000 workers before it expires at the end of next year.
A major barrier is the requirement that restricts support to companies whose sales tumbled by 25% y-o-y or more during three consecutive months after June 2008, a drop which according to some observes in many cases is tantamount to bankruptcy, leaving few potential beneficiaries. Other criteria deemed to be overly demanding are the requirement that beneficiaries have no outstanding tax payments, and that they cut no jobs after receiving support.
Meanwhile, companies have been quicker to embrace those forms of support which are available regardless of financial condition. Thus, by 15 January a total of 534 companies had reached agreements with workers about implementing flexible work schedules that balance working hours over a longer period of time.