September 2004 saw a number of protests by employees of Bulgaria's state-owned tobacco group, Bulgartabac. The workforce and trade unions are concerned about the employment and social consequences of the group's planned privatisation.
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September 2004 saw a number of protests by employees of Bulgaria's state-owned tobacco group, Bulgartabac. The workforce and trade unions are concerned about the employment and social consequences of the group's planned privatisation.
On 10 December 2003, parliament adopted a strategy for privatisation of Bulgartabac Holding AD, the state-owned tobacco company. The government's stated aims for the privatisation are ambitious, but trade unions claim that, due to a lack of funding, it is not clear how these would be achieved. The unions state that there is no public accountability in the process, resulting in mistrust. The unions also claim that there are no indications that the necessary actions will be taken to pay outstanding wage arrears totalling BGN 4.2 million across 11 group companies.
The Independent Trade Union of Tobacco Workers (ITUTW), affiliated to the Confederation of Independent Trade Unions in Bulgaria (CITUB),organised a protest demonstration and meeting on 23 March 2004 in front of the Ministry of the Economy, aimed at protecting the rights of Bulgartabac workers. Some 1,200 workers from all tobacco firms in the country participated in the protest, under the slogan 'No to privatisation without social obligations'. In a declaration delivered to the Ministry of Economy, the protesters called for consultation and discussions on obligatory conditions to be imposed on prospective buyers of Bulgartabac, and on criteria and engagements related to employment and social issues.
In June 2004, after a number of meetings between trade union representatives, the government and Bulgartabac management, the parties signed an agreement on social aspects of privatisation that satisfied all parties to some extent. However, shortly afterwards, trade unions claimed that the the Ministry of Economy and the Bulgartabac supervisory and management boards had breached a number of clauses of the privatisation strategy. It is claimed that no action has been taken to achieve the economic recovery of the Bulgartabac enterprises or to find potential buyers. It is also not clear how the Bulgartabac enterprises will be restructured if their trade-mark licenses are taken from them, and machinery is being transferred from enterprises in Haskovo, Shoumen, Vidin, Assenovgrad and Pleven. The participation of group companies in Haskovo, Shoumen, Vidin, Assenovgrad and Pleven in Bulgartabac's foreign partnerships has been terminated and their licenses to produce tobacco products withdrawn.
The situation has led to an escalation of the social tension among the workers at Bulgartabac Holding enterprises, and to a number of protest actions. On 8 September, about 100 Bulgartabac workers protested in front of the Holding's headquarters in Sofia. The protesters blocked the entrance of the administrative building and did not allow employees to enter.
CITUB has sent a declaration to the President of Bulgaria, the chair of parliament, the Prime Minister and the management of Bulgartabac Holding. It highlights a number of alleged violations of the Bulgartabac privatisation strategy adopted by parliament, and of the Labour Code. Bulgartabac management responded by issuing a statement to the effect that, under the conditions of a market economy, it is not acceptable to stipulate to a potential buyer what kind of social and employment policy to implement.
On 24 September 2004, the ITUTW trade union organised a protest meeting at Bulgartabac's Haskovo enterprise, which became a demonstration through the streets of the town, involving both workers from Haskovo and their colleagues from Shoumen. The workers warned that they would launch a number of regional protest actions and national protest meetings in order to protect their jobs, their rights and the future of Bulgartabac.
Bulgartabac management has stated that by the end of September 2004 a previously negotiated 'social fund' will be established. The aim of the fund is to finance the social expenses related to Bulgartabac restructuring - ie compensation in the event of dismissals, training and financial support for former employees to start their own businesses. The agreement signed with the trade unions in June 2004 provided for dismissal compensation of up to 20 month's pay per worker, which is the highest level so far offered in the history of Bulgaria's privatisation process (BG0409101F).
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Protests over privatisation at Bulgartabac, article.
