On 25 September 2013, over 1,600 workers at the Bulgarian state-owned postal company organised a protest rally to demand an increase in wages, compensation payments by the state for providing the universal postal service, and a transparent process for any proposed privatisation. There has been tension in the company since 2011 when the company was first threatened with privatisation. The government has agreed that, wages will be increased by 10% and, as demanded, compensation will be paid.
Background
Bulgaria's state-owned postal company, Bulgarian Posts Plc (BG Posts), provides universal and non-universal postal services and delivers some social functions including payment of unemployment benefits, social assistance and pensions. It is the largest state-owned company in Bulgaria, employing about 12,000 workers. Of these, 34% are part-time workers earning a monthly wage of BGN 517 (€260), and postmen who earn on average BGN 340 (€170). Both rates of pay are much lower than the national average of BGN 790 (€395).
There has been social tension in BG Posts since mid-2011. The Law on Privatisation and Privatisation Control set out a list of state-owned enterprises which could not be privatised, which included BP Posts. Several MPs from the then-ruling party submitted a request for changes in the law to allow BP to be privatised. Subsequently the trade union members within the company organised a petition and prepared postal workers for protests and strikes. As a result, the MPs’ proposal was not brought to discussion in parliament.
At the beginning of March 2013, union members within BG Posts told workers that attempts were being made by some ex-ministers and lobbies of private postal operators to bring the company to bankruptcy before privatising it. They pointed out that the state regulator, the Communications Regulation Commission (CRC), was not making enough effort to stabilise and develop the company, and that the method of calculating net expenses in universal postal services had not been approved by the European Commission (EC).
Workers protest
On 25 September 2013, over 1,600 postal workers affiliated to the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Association of Democratic Trade Unions (ADTU) organised a protest rally to demand an increase in wages, payment of compensation by the state for the universal postal service for 2011, and for transparent privatisation.
During the meeting the President of CITUB, Plamen Dimitrov, demanded an additional state subsidy of between BGN 5 and 7 million (€2.5 to 3.5 million), so that salaries could be raised by 10% and the company could finish the year with a small profit. He also pleaded for compensation for the universal postal service for 2011 to be paid, reminding everyone that this is not a subsidy, but is fair remuneration for services rendered. CITUB also categorically opposes any form of privatisation of BG Posts.
The rallying workers adopted a declaration to the council of ministers, in which they insisted on the following.
- That the government fulfil its obligations in accordance with the EU Postal Directives and pays, in full, compensation for 2011.
- That BG Posts should categorically not be privatised. The government should immediately adopt a national strategy for postal communications and a programme to develop BG Posts into a profitable, modern and competitive European postal operator.
- That a professional managerial team should be hired, consisting of postal management experts with a proven track record. They also demanded that the new management should implement successfully the government’s strategy and programme.
Government’s reaction
In response to the demands of the protesting postal workers, Minister of Transport and Communications Danail Papazov promised that BGN 6.5 million (€3.3 million) would be paid out of the budget from 1 November 2013, part of which will be used for the 10% increase in operational staff’s wages. The Minister stated that the company will not be privatised and that in the 2014 budget, BGN 17 million (€8.6 million) will be set aside as a subsidy for BG Posts.
Commentary
Despite the partial success of the protest (the 10% wage increase and the promise of a subsidy increase in next year’s budget), the workers’ demands for a clear plan for the future development of BG Posts were met with silence from the government. The protesters are determined that, unless their demands are met, they will go on strike.
Tatiana Mihaylova, ISTUR