Collective Bargaining

According to European comparisons, wages in Bulgaria are about a quarter of the average in Europe, and labour productivity in the country is about 50% of the European average. The Confederation of Labour Podkrepa will ask for a minimum wage increase to be set in the budget for 2020, since this minimum wage currently corresponds approximately to the labour productivity. This was stated by the economic advisor of the trade union who participates in a forum for the rights of posted workers, organized by the trade union.

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Bulgarians earn little and spend little. They are in last position in the European per capita consumption rankings, at 56% of the average levels for the EU. The income and spending level of Bulgarian households indicates that at this time, things are not looking particularly rosy, nevertheless, they are improving – gradually and at a modest pace. Mostly because incomes are going up uninterruptedly and at a stable rate which is allowing Bulgarians to increase their consumption.

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About 30.5% of Bulgarians cannot afford a one-week holiday, according to European Union statistics agency Eurostat, citing figures for 2018. Eurostat said, however, that the figure had dropped by 35.8 percentage points since 2013 – the largest such decrease in the EU.

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Federation of Transport Trade Unions in Bulgaria (FTTUB) and the Confederation of Independent Trade Unions of Bulgaria (CITUB) managed to negotiate the biggest ever pay rise, ranging between 25 and 28%, for bus and tram drivers at the Sofia Electric Transport and Sofia Bus Transport company. Earlier on it seemed that they would get a 10% wage hike (see our March newsletter). The FFTUB is still negotiating with the municipality on legislation to criminalize aggression towards public transport workers and strategies to make public transport more attractive to passengers and workers.

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The Sofia Municipality proposes a 10% wage hike for public transport in the city and the reduction of overtime work. With the 10% wage hike salaries will rise to 587.99 euro a month. Furthermore the municipality is planning to improve working conditions. Whether drivers are satisfied with the measures will become clear after the decision of the transport committee.

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In relation to the forthcoming European elections Euronews has produced a series of reports on some of the major issues concerning Europe and its citizens. In one of these reports the working conditions of textile workers in the country are investigated. The report shows that while many international brands have outsourced their textile production to the country, working conditions remain poorly. Not only are the workers experiencing a lot of work pressure, payment is also a serious problem with the average net wage just between 320 and 350 euro a month. Despite a rise of 10% in January 2019 the country’s minimum wage is still the lowest in the EU.

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According to data of trade union CITUB the average wage in the country only covers 72% of the average costs of living. This means that a lot of people in the country struggle to make ends meet. Especially so as only 30% of the population receives an average or above-average wage. However, the situation seems to be slowly progressing. While over the last ten years the costs of living in the country have increased with 25%, in the same period salaries have increased with 65%.

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The National Tripartite Cooperation Council have met to discuss the cabinet's proposal to raise the minimum wage from 260 euro a month to 286 as of January 1, 2019.The employers' organizations are against the increase in the minimum wage. Government also plans to increase minimum pension by 5, 7%. Another point of discussion for the social partners is the increase of the remuneration for night work. The union offers it to become a percentage of the minimum wage for the country – 0, 5% of it for one hour of night work.

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More than 2000 of coal miners and energy workers took to the streets of downtown Sofia to demand job security. The miners want the government to guarantee that their jobs will be preserved whilst closing mines to tackle climate change. Union officials say that 150,000 jobs are at risk should the biggest coal mines and energy plants in south-eastern part of the country close down.

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Trade union CITUB says the presented draft budget for 2019 is the closest match to the demands of trade unions compared to other budgets so far. This month the government presented the draft budget for 2019 to the Confederation of Independent Trade Unions (CITUB). The draft envisages an increase in all wages in the budget sector by 10% on average from next year.

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