New collective agreements signed in food industry

At the end of August 2006, representative trade unions and employer organisations in the food industry concluded four branch collective agreements for the next two years. Through their joint efforts, the parties demonstrated their willingness to develop production and employment in the industry and to guarantee and respect workers’ fundamental social and economic rights.

On 28 August 2006, representative trade unions and employer organisations in the food industry concluded four branch agreements for the next two years. The agreements were signed on the trade union side by the food industry branch of the Confederation of Independent Trade Unions in Bulgaria (CITUB) and of the Confederation of Labour Podkrepa (CL Podkrepa). Branch employer organisations in poultry, mill production, fodder crops output and vegetable oil output also signed the agreements. The agreements aim to generate conditions focused on the development of production, quality of employment and wider social responsibility. This article outlines some of the most important provisions of the agreements.

Pay provisions

The agreements contained the following provisions in relation to pay:

• the main monthly remuneration each year is to be updated in line with inflation as well as the labour productivity increase for the previous year, or with gross domestic product (GDP) growth;

• yearly negotiated branch minimum social security thresholds BG0609019I of occupational groups are to be recognised as minimum wages and to become an integral part of the agreement;

• workers shall receive higher than the statutory supplementary remuneration for work outside of standard working hours, such as night work, prolonged work, work during official holidays and overtime;

• workers are to receive higher compensation for: the termination of labour contracts in cases of structural changes, [dismissals](/search/node/areas OR industrialrelations OR dictionary OR definitions OR dismissals?oldIndex), reduction in work activity, retirement and in other instances stipulated;

• bonuses are to be offered aimed at stimulating the quality of work;

• an innovative approach shall be taken to resolve the issue of so-called ‘length of service’ pay, in accordance with the legislative changes. Accordingly, compensation for length of service will be included in the basic wage as a fixed sum, determined every five years;

• plans are foreseen to introduce a system aimed at promoting workers’ motivation and at supporting the creation of a corporate culture of identification with the company.

Employment provisions

Among the employment provisions contained in the agreements were the following measures:

• the introduction of a bargaining procedure in cases of company restructuring which leads to a reduction in the number of personnel. Particular emphasis is placed on bargaining in the Social Cooperation Commissions. The type and content of the written information to be presented in advance to trade unions by the employer was also agreed upon;

• new provisions are stipulated regarding the procedure for hiring workers in newly created posts. Against the background of labour market changes and flexible labour relations, the social partners agreed, for the first time, on provisions for job sharing, work organisation and working time changes, along with procedures for hiring workers for fixed-term or seasonal work.

Provisions on working time and leave

The agreements contained the following working time and leave provisions:

• implementation of measures for negotiations on working time duration and scheduling, leave distribution, night and overtime work, etc. The introduction of prolonged and part-time work by the employer will have to be negotiated and coordinated with the trade unions;

• new provisions for leave periods longer than those stipulated under the Labour Code in relation to: minimum basic paid yearly leave, supplementary leave for workers exposed to specific health and safety risks, work on non-fixed working time, short-term leave for the fulfilment of civil and public obligations;

• new possibilities negotiated for use of paid leave by mothers with young school children, due to the prevlence of female employees in the sector. Possibilities for part-time and flexible working time are also provided for under the agreements.

Provisions in social sphere

In the social sphere, the following provisions were agreed upon:

• additional social expenditure allowing for targeted support for: paid leave, Christmas or Easter leave and other types of leave;

• provisions for supplementary pension and health insurance;

• conditions and procedures for conducting trade union activities, and for freedom of association and implementation of trade union rights including: enabling unimpeded access of trade union representatives at the workplace and ensuring the necessary facilities and space for exercising trade union activities;

• provisions enabling trade union representatives to participate in the labour accidents commission;

• joint development of employment and vocational training programmes.

The agreements defined the framework, as well as creating more favourable possibilities, for bargaining at company level, mainly in relation to pay, complementary remuneration and bonuses, working time organisation, working conditions, social activities, and the promotion of trade union rights.

In search of new solutions in the lead-up to the country’s EU membership, the branch social partners’ collective agreements also included new independent sections on the ‘prohibition of discrimination in labour relations’ and on ‘information and consultation’. It is hoped that the new agreements will help to increase the competitiveness of companies in the food sector, as well as enhancing the quality of the labour force.

Emilia Markova, Institute for Social and Trade Union Research (ISTUR) of CITUB