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Employments at State Enterprises on the Rise

Database developed by the Center for Civil Communications shows increased number of employees at 36 from 50 enterprises analysed

In the last six year, the number of employees at the 50 biggest state-owned enterprises has been increased by 1,781 workers, i.e. by 8%. Database developed by the Center for Civil Communications shows increased number of employees at 36 from 50 enterprises analysed. New employments did not constitute any barrier for state enterprises that have reported financial losses or are featured on the list of tax debtors that was recently published by the Public Revenue Office.

In 2016, the 50 biggest state enterprises in the country together have 25,121 employees, additional 1,285 employees under temporary contracts and 562 employees under task contracts. Data secured by the Center for Civil Communications by means of information requests show that, in the period September 2010–2016, the number of employees has increased at 36 from 50 enterprises covered with the analysis.

Database on employments at the biggest state-owned enterprises allows insight in data on the structure of employments (regular contract, temporary contract or task contract) at the level of individual enterprises, which have been selected as the 50 biggest state enterprises according to last year’s annual turnover.

JSC Macedonian Power Plants and PE Communal Hygiene – Skopje with highest increase of employees

More than half of new employments at public enterprises happened at JSC Macedonian Power Plants (ELEM), which in September this year had total of 4,907 employees, i.e. by 1,104 more than six years ago. In percentages, this increase accounts for 29%.

Second-ranked on the list of state enterprises with highest increase of employees is PE Communal Hygiene – Skopje, whose number of employees has increased by 332 people to total of 1,144.

Third on the list is PE State Roads, established by the end of 2012, but actually inherited property, assets and employees from the Agency of State Roads. Data show that in September 2010, this body employed 51 people, while in September this year their number has reached 347, representing an increase by 296 employees. In that, this public enterprise is the record holder in terms of increase of the number of employments in relative amount, i.e. by seven times more than in 2010.

Top 10 state-owned enterprises with the highest number of new employments in the last six years also include JSC MEPSO, where the number of employees has increased by 138 people, PE Komunalec – Prilep with 128 new employments, PE Parking – Municipality of Centar with additional 98 employees, PE Parks and Greenery with plus 95 employees, MRT with addition of 94 employees, PE Derven – Veles with 74 new employments, and PE Isar – Stip, which employed additional 58 people in the last six years.

The number of employees has been significantly decreased at PE Macedonia Road, where in September this year there were 828 employees, which is by 665 people less compared to September 2010. The number of employees at MR Infrastructure was decreased by 254, MR Transport – by 157, PE Komunalec – Gostivar – by 44, JSC City Trade Centre – by 42, and PE Water Supply – Kumanovo – by 24 employees.

Temporary employments are transformed into regular full-time contracts

Total number of employees at the biggest public enterprises according to revenue generated last year is even higher when adding the number of temporary employments, which in September this year accounted for 1,285. This number could be even higher having in mind that MR Transport refused to disclose requested data, in spite of the decision taken by the Commission on Protection of the Right to Free Access to Public Information. This commission admitted the appeal lodged against denied access to public information and tasked MR Transport to disclose requested information. Nevertheless, MR Transport did not comply with the decision taken by the Commission. Hence, data on employees at this state-owned enterprise include only the number of employees as enlisted in data from the Central Register, but not the number of those under temporary and task contracts.

Compared to the situation in September 2010, when the number of temporary employees at 49 state enterprises amounted to 1,968 people, this number is reduced, but assumptions are that majority of them have been transformed into full time employment after adoption of the Law on Transformation of Temporary into Permanent Employment in 2014, which anticipated all state institutions and public enterprises to offer full time and regular employment contracts to volunteers, people working under honoraria or task contracts and employees with time-defined contracts.

Decisions on full time employments should be taken for all people engaged for at least three months by 30 November 2014 and have been in employment at the moment when the law entered in effect.

However, in spite of the law’s entry in effect and obligations assumed by authorities to reduce temporary employments in the public sector to zero, data obtained by the Center for Civil Communications shows that significant number of people still have the status of temporary employees at public enterprises.

This number is the highest at PE Macedonian Forests where, by September this year, there were 184 temporary employees compared to 2010 when this public enterprise had only 4 temporary employees, showing that their number has been significantly increased. JSC ELEM has total of 153 temporary employees; PUE Komunalec Strumica – 118; PE Communal Hygiene Skopje – 117, PE Parks and Greenery – 97.

Top 10 state enterprises with highest numbers of temporary employees also include PE Komunalec – Prilep with 82 people, PE Water Supply – Kocani with 58 people, Public Transport Enterprise with 53 temporary employees; PE State Roads with 52, and PE Water Supply and Sewage – Skopje with 46.

Only 16 from all state-owned enterprises covered by this analysis do not have any temporary employees.

20 from the 50 biggest state enterprises have engaged total of 562 people under task contracts. 26 enterprises have no employees engaged under task contracts and data are not available for 4 state enterprises.

The highest number of employees under task contracts (207) are engaged at JSC Macedonian Post, accounting for almost 10% of the total number of regular employees.; 92 task contracts were recorded for PE Hygiene and Greenery – Kumanovo, which represents one-third of the number of regular employees; 83 at PE Komunalec Gostivar which regularly employs 120 people; 45 task contact employees are recorded at PE Macedonian Forests and 29 at JSC ELEM.

In spite of financial losses and unsettled tax liabilities, state enterprises continue to employ new people

New employments were registered at some public enterprises which have reported financial losses from their operation. PE Parking – Municipality of Centar, which was marked by highest growth of employments, last year reported financial losses in the amount of 78 thousand EUR. In the last six years, PE Parks and Greenery – Skopje increased their number of employees by 23%, but in 2015 reported losses in the amount of 305 thousand EUR. PE Water Supply and Sewage – Skopje and PE Strezevo – Bitola completed 2015 with one of the biggest financial losses at the level of Macedonia in the amount of more than 3 million EUR, but have increased the number of their employees.

Some state-owned enterprises that have increased their number of employees in the last six years still have employees under temporary or task contracts, but also appear on the list of tax debtors that was recently published by the Public Revenue Office (PRO).

11 from 50 state enterprises included in the analysis have unsettled tax liabilities towards the state.

For example, according to data from the Public Revenue Office, PE Macedonian Radio Television (MRT) has unsettled tax liabilities in the amount of 1.6 million EUR, although by September this year this enterprise increased the number of employees by 94 people to total of 870.

PE Macedonian Forests owes the state almost 3 million EUR in tax liabilities and is record-holder in terms of temporary employments with total of 184 people, unlike their number six years ago when only 4 employees were engaged under temporary contracts. In that, this enterprise has also increased the number of regular employees from 2,150 to 2,197.

PE Komunalec – Gostivar, which has engaged 83 employees under task contracts and 34 employees under temporary contracts, has accumulated tax liabilities in the amount of 2.7 million EUR.

Public Utility Enterprise – Struga, which has accumulated tax debt of around 250 thousand EUR, employs 41 more people than in 2010, whereby the total number of employees reached 133. Moreover, it has 22 employees under temporary contracts.

Some state enterprises with tax liabilities have reduced their number of employees, temporary employees and people engaged under task contracts.

Data presented in Excel format are available here.