Unions call for changes in economic and social policy

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September-November 2003 saw a series of trade union protests in Bulgaria calling for changes in the government's economic and social policy, covering issues such as incomes, taxation and sick pay. The protests were due to culminate in November with a demonstration in Sofia, organised by the CITUB and Podkrepa union confederations, under the slogan 'Solidarity for rights and justice'.

In September 2003, the Confederation of Independent Trade Unions in Bulgaria (CITUB) - Bulgaria's largest trade union organisation - launched a 'spirally escalating protest', consisting of rallies and demonstrations around the country, calling for changes in economic and social policy. The protests, organised by CITUB's local structures, were in support of the following main demands:

• the development by the government of a way of calculating an official 'poverty threshold' in accordance with practices elsewhere in Europe (BG0310202F). This threshold should be used as the basis for incomes policy up until the end of 2006. The relevant proposal should be presented to the social partners and accepted by the National Council for Tripartite Partnership (NCTP);

• the provision of concrete figures on increases in the national minimum wage over the coming years;

• an increase in average wages of 10% from 1 October 2003 and of 20% a year until the end of 2006;

• an increase in the minimum wage to BGN 130 from 1 October 2003 and to BGN 150 from 1 January 2004;

• guaranteeing the payment of Christmas pension allowances, and of the '13th-month' end-of-year wage supplements in the public sector for 2003;

• the removal of pension restrictions, and pension increases of 15% from 1 January 2004;

• tax cuts, including a lower 10% rate of VAT on bread, milk and milk products;

• regulations on the participation of trade unions in drawing up the social aspects of the privatisation strategies for major state-owned companies;

• re-establishing control by the National Council for Post-Privatisation Control over the 'social chapters' of privatisation contracts; and

• the involvement of trade unions in monitoring the management of funds provided by the EU prior to Bulgaria's accession (planned for 2007).

The first demonstration was organised by CITUB on 23 September in the town of Stara Zagora, followed by meetings in 17 regions and further protest actions in four of them. According to CITUB, over 60,000 people participated in the demonstrations. Along with the Public Women's Parliament- a grouping of 40 women's organisations - CITUB organised a petition against government plans to cut sick pay from 80% of wages to 50% during the first five days of sickness, and pitched a tent in front of the parliament building to symbolise the protest. The Confederation of Labour Podkrepa (Support)- the other main trade union confederation - supported these actions.

Meetings with the chair of parliament and of its budgetary, social and economic committees were held after the beginning of the protests in order to discuss CITUB's demands related to labour and social legislation. CITUB called for parliamentary discussions on: the legislation on guaranteeing workers' pay in the event of their employer's insolvency; a draft law amending the Labour Code; and changes to the law on the resolution of collective disputes. Furthermore, the labour legislation commission of NCTP has adopted proposals on extending workers' rights to take strike action in the energy, communication and healthcare sectors, and the Ministry of Labour and Social Policy (MLSP) has agreed to propose removing of current strike bans in the communications and healthcare sectors. NCTP has also supported CITUB proposals to speed up expert work on draft laws creating a specialised labour court and punishing employers for non-payment of wages.

Following the protests, CITUB reached an agreement with employers' organisations (BG0307204F) - also supported by the National Social Security Institute (NSSI) - stating that the present level of compensation for sickness, pregnancy and maternity should be retained. However, the government's proposed state budget for 2004 does not take this agreement into consideration.

A meeting was held between CITUB and Podkrepa on 4 November, at which they evaluated the proposed state budget for 2004 and the budgets of NSSI and the National Health Insurance Fund (NHIF). Podkrepa supported CITUB’s evaluation of the government's incomes policy and the two confederations declared that its fiscal policy for 2004 will give businesses over BGN 250 million at workers’ expense, through a continuing transfer of the tax burden to low-income groups. The unions protested against cuts in area such as social assistance and benefits, and expressed concern for the future of municipal hospitals which are to be financed by NHIF, rather than the state budget, from the beginning of 2004. CITUB and Podkrepa decided to:

• organise joint meetings with the leaders of political parties;

• organise joint petitions and lobby parliament for the maintenance of current sick pay, lower taxes for the poorest people and tax-free meal vouchers;

• present a collective complaint to the Council of Europe concerning alleged violation of the revised European Social Charter, which has been ratified by Bulgaria;

• organise a joint national demonstration on 13 November 2003 in Sofia, calling for changes to government economic and social policy under the slogan 'Solidarity for rights and justice'; and

• distribute public information concerning the votes of each representative in parliament on important social legislation and any decisions limiting workers’ social rights.