Increase in information and consultation in multinational firms

In January 2009, the Institute for Social and Trade Union Research published the results of a survey conducted in multinational companies with subsidiaries in Bulgaria. The survey examines the main trends of industrial relations and working conditions in these companies, and provides an insight into developments with regard to information and consultation practices. These worker rights are slowly being adopted in Bulgarian companies at national and European level.

In January 2009, the Institute for Social and Trade Union Research (Институтът за синдикални и социални изследвания, ISTUR) published the results of a survey conducted in 23 Bulgarian subsidiaries of multinational companies; the study was made possible with the financial support of the German Friedrich-Ebert Foundation (Friedrich-Ebert Stiftung, FES).

The survey investigates the main trends of industrial relations and working conditions in the companies, including developments with regard to workers’ right to information and consultation, as set out in Directive 2002/14/EC establishing a general framework for informing and consulting employees in the European Community.

Emerging information and consultation representation

Comparing the results with data from previous surveys in 1998 and in 2003, some changes could be observed. In about one third of the multinational companies surveyed, representatives have been elected for the purposes of information and consultation, alongside the existing strong local trade unions. In some subsidiaries like the international chemical and pharmaceutical Solvay Group, even mechanisms for representation at group level have been implemented. In most of the remaining two thirds of the companies, the process of information and consultation has been practised; however, trade unions continue to represent the workers and employees, and no worker representatives have been appointed.

This situation is different from that in most other Bulgarian companies with 50 or more employees, where the main representatives in the workplace are still trade unions; representatives for the purposes of information and consultation have not yet been elected in these enterprises. According to data from the Confederation of Independent Trade Unions in Bulgaria (Конфедерация на независимите синдикати в България, CITUB), in 2006–2008 representatives for information and consultation were elected in not more than 150 companies with 50 or more employees, where local CITUB organisations exist.

Reason for slow take-up

An important reason for such trends is that trade unions have not tended to embrace the legal provision for the election of representatives for information and consultation purposes. The unions are concerned about the possibility of neglecting trade union rights in the workplace, a step which could be taken by employers on the basis of new systems for information and consultation. Although a legal provision entitles the general assembly of the workers and employees to transfer information and consultation rights directly to the local trade unions, they are still strongly challenged. Thus, the practices of information and consultation have been slow to develop.

Growing European-level representation

The process for representation at European level has also started in Bulgaria, but these practices have likewise been slow to develop. Such representation was deemed important in Council Directive 94/45/EC on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees (EU0803039I).

According to data from CITUB and the European Trade Union Confederation (ETUC), in 14 multinational subsidiaries in Bulgaria a total of 18 workers were elected to European Works Councils (EWC) in 2006–2008. However, EWC already exist in almost 35 multinational corporations that have a Bulgarian subsidiary. Most of the new EWC members are trade union representatives or members.

Furthermore, in some companies, procedures have commenced towards the election of EWC members, while members of a special negotiating body (SNB) have been elected in cases where the multinational has not yet established an EWC.

Challenges of international participation

Bulgarian EWC representatives have been elected in eight of the companies surveyed by ISTUR in 2008 and 11 of the new elected representatives are trade union members or local trade union leaders. Most of the EWC members from the Bulgarian subsidiaries interviewed do not have prior experience in this regard; only representatives from three companies had participated in EWC meetings with observer status.

The main challenges for the new EWC representatives are the quality of their competences – including knowledge in economics, finances and corporate governance – for the purposes of their participation at the EWC meetings. Most of the representatives do not speak foreign languages and their informal communications with colleagues from other EU Member States are difficult.

The reasons for the slow development of worker representation at European level are similar to those concerning workplace representation at national level. Some local trade union leaders are doubtful of the use and advantages of the EWC functions. However, most of the already elected Bulgarian EWC representatives have high expectations regarding their work there.

Commentary

It seems that trade union leaders need more education and experience in relation to the information and consultation process. Some union representatives still do not appreciate the importance of information and consultation in collective bargaining. Information and consultation rights are well developed in the multinational subsidiaries because of the influence of international experience from trade union members and leaders in other subsidiaries within the company group. Moreover, in most of the enterprises in Bulgaria owned by multinationals, trade union density is high and the unions have considerable influence. Therefore, these trade unions are not wary of other types of representation in the workplace.

Ekaterina Ribarova, Institute for Social and Trade Union Research (ISTUR)