Incomes and social benefits of energy workers safeguarded
Published: 4 February 2010
On 6 October 2009, after less than a month of negotiations, the social partners in Bulgaria’s energy sector signed a new sectoral collective agreement for a two-year term. The swift adoption of the branch agreement is due to consensus being reached between employers and trade unions because of the current economic crisis. They recognised that, on the one hand, it was not possible to increase wages but, on the other, employees’ interests needed to be protected. The social partners decided to maintain the wage parameters agreed in the branch agreement in 2007 and to increase some forms of workers’ compensation. The main reasons for the crisis in the sector are the stagnation of the markets, a reduction of customers and a decline in the possibilities for credit.
In October 2009, the social partners in the energy sector concluded a new collective agreement valid for two years. The parties to the agreement have been willing to retain the main parameters of the previous branch collective agreement because of the economic crisis. At the same time, the social partners negotiated some forms of additional compensation and better social benefits. The agreement also stipulates the need for training provision in particular circumstances.
Background to negotiation process
On 6 October 2009, after less than a month of negotiations, the social partners in Bulgaria’s energy sector signed a new sectoral collective agreement for a two-year term. The swift adoption of the branch agreement is due to consensus being reached between employers and trade unions because of the current economic crisis. They recognised that, on the one hand, it was not possible to increase wages but, on the other, employees’ interests needed to be protected. The social partners decided to maintain the wage parameters agreed in the branch agreement in 2007 and to increase some forms of workers’ compensation. The main reasons for the crisis in the sector are the stagnation of the markets, a reduction of customers and a decline in the possibilities for credit.
Signatories of agreement
Signatories of the agreement on the trade union side included:
Georgi Petrov, President of the National Federation of Energy Workers (Национална федерация на енергетиците, NFE), affiliated to the Confederation of Independent Trade Unions in Bulgaria (Конфедерация на независимите синдикати в България, CITUB);
Bozidar Mitev, President of the National Federation of Energy Workers in Bulgaria (Национална федерация на енергетиците в България, NFEBG), affiliated to CITUB;
Miroslav Mitrovsky, President of the Energy Workers’ Federation Podkrepa (Федерация Енергетика Подкрепа, FE), affiliated to the Confederation of Labour Podkrepa (Конфедерация на труда Подкрепа, CL Podkrepa);
Vladimir Vladimirov, Chair of the Federation of Nuclear Energy – Podkrepa (Федерация Атомна енергетика – Подкрепа, FNE), affiliated to CL Podkrepa.
Representing the employer side was Dimitar Shevikov, Chair of the Managment Board of the Bulgarian Branch Chamber of the Energetics (Българска браншова камара на енергетиците, BBCE), which is a member of the Bulgarian Industrial Association (Българска стопанска камара, BIA).
Main provisions of agreement
Pay provisions
The main provisions of the agreement on pay relate to the minimum wage in the sector and forms of additional compensation for workers, such as rewards for length of service, night work and overtime (see table). The coefficient of the minimum wage in the energy sector is 1.5 times the national minimum wage; the sector has thus one of the highest minimum wage coefficients defined by collective agreement.
| Additional payments | Agreed in branch agreement for 2009 | Norms set by legislation |
|---|---|---|
| Length of service | 1% If 50% of the working time is completed below ground or under water, workers shall be awarded an additional 0.6% on top of the 1% specified above, for each year of service and professional experience gained working in these conditions, thereby amounting to 1.6% per year | 0.6% |
| Night work | No less than: 20 cent an hour for indirectly employed workers. 28 cent an hour for directly employed workers | 10 cent an hour |
| Overtime - during holidays - during annual working time | 75% for work on weekends 120% for work during holidays 60% for overtime during annual working time | 50% 100% 50% |
Additional compensation for part-time working
New measures were agreed guaranteeing additional compensation for part-time workers and where part-time working is implemented by the employer for a three-month period. The amount of remuneration for each hour worked on a part-time basis cannot be lower than the pay received for hours worked on a normal full-time basis. This applies:
to workers with a contract of employment for part-time work;
when the employer introduces part-time working for up to three months in a calendar year.
Compensation for service in event of illness
On the termination of employment due to illness, the employee is entitled to compensation from the employer if they have at least five years of service in the company and if over the past five years they have not received any compensation on the same basis. The amount of compensation depends on the worker’s length of service in the company and can be broken down as follows:
years of service – compensation will amount to three nominal monthly salaries;
15 years – four nominal salaries;
up to 20 years – five nominal salaries;
over 20 years – six nominal salaries.
Training provision
Under the agreement, employers in the sector are obliged to provide for the training and qualification of workers in the case of redundancies, the creation of new posts or changes in the technology used and the work organisation in the company.
Commentary
Parties to the branch collective agreement have signed the accord with a clear understanding of the significant role of the sector for the functioning of the national energy system, which is essential for national security. The parties have also focused on protecting the labour and socioeconomic interests of employees.
Tatiana Mihaylova, Institute for Social and Trade Union Research (ISTUR)
Eurofound recommends citing this publication in the following way.
Eurofound (2010), Incomes and social benefits of energy workers safeguarded, article.
