New criteria for social partner representativeness

After discussions in the National Council for Tripartite Cooperation resulted in an agreement between the social partners in February 2007, the government proposed to amend the criteria for representativeness of trade unions and employer organisations. The parliament adopted the amendments on 4 May 2007, after which they were published in the State Gazette, issue 40/2007.

The lack of sufficient objectivity in the Labour Code in relation to the representativeness criteria of trade unions and employer organisations had led to a breakdown in social dialogue. As a result, changes were proposed. The proposals were also made in light of the EU Monitoring report of 26 September 2006 (EU0610019I). The European Commission recommended developing objective and impartial criteria for the representativeness of the social partner organisations, so that participation in tripartite dialogue would be restricted to organisations with a social mandate. The ideas for such change were further developed in the Pact on Economic and Social Development of the Republic of Bulgaria 2007–2009 (Paragraph 13.2 of the Pact), signed by the social partners in September 2006 (BG0609029I).

Background

The Labour Code Amendments and Supplements Act in force since 31 March 2001 defined certain representativeness criteria. Subsequently, a 2003 reform provided for more precise criteria for the worker and employer organisations (BG0307204F); this reform was based on more than 10 years’ experience of social dialogue and the need to consider the process of harmonisation with European legislation. The provisions were prepared in close cooperation and dialogue with the social partners.

At that time, two trade union confederations and four employer organisations were recognised as representative organisations at national level. However, after the 2003 census, three trade union confederations – the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Confederation of Labour Podkrepa (CL Podkrepa) and the United Trade Unions Association Promiana (Promiana) – and six employer organisations were recognised as being representative (BG0412102F). Nevertheless, under pressure from the two largest union confederations, the government – newly elected at that time – refused to grant Promiana its representative status.

The representativeness of employer organisations, particularly at branch level, was also unclear (BG0610039I).

Labour code amendments

The initial positions of the social partners concerning the new Labour Code amendments on representativeness criteria were outlined within the labour legislation commission to the National Council for Tripartite Cooperation (NCTC). After several months of discussions, the partners succeeded in bringing their views closer and reaching a mutually acceptable version in February 2007. Subsequently, the Council of Ministers adopted the draft law on the Labour Code amendments and the parliament adopted – in first reading – the draft law in March.

According to the members of parliament, the main shortcoming of the existing legislation was the quantitative principle defining the representativeness of the social partner organisations, without considering the real participation in industrial relations. In their view, the proposed amendments will reduce the number of officially dissolved social dialogue initiatives in the country. The main amendments are summarised below.

• The organisations claiming representative status must have juridical person status for two years to prove their social mandate and effectiveness.

• A four-year mandate of worker and employer organisations’ representativeness is introduced.

• Many of the proposals concern employer organisations:

  • the quantitative criteria are enhanced and new criteria are introduced for the number of employers and of employees within an organisation claiming representativeness, in order to ensure the participation of employers of small and medium-sized enterprises (SMEs);

  • in relation to employers’ possibility to join several employer organisations, they are required to specify the organisation which will represent them in the NCTC.

With the proposed changes, the Council of Ministers is committed to observing the principles of equality, transparency and control over the information presented to ensure that representativeness criteria are maintained.

Reaction of social partners

The trade unions and employer organisations consider that the new changes in the labour legislation will facilitate more successful sectoral collective bargaining, with the mandate and capacity to participate fully in the European social dialogue structures.

Chavdar Hristov, CITUB