Talks between trade unions and employers break up over a discussion on the size of minimum wage

Talks between trade unions and employers broke up over lack of agreement during an emergency meeting with caretaker Deputy Prime Minister and Minister of Social Affairs, Galab Donev at the Council of Ministers.on November 5. The reason was the union's request for an increase in the minimum wage from January 1 next year to BGN 764. At the meeting, which ended much earlier than expected, the social partners disagreed on measures to compensate workers and businesses for the crisis.

Less than an hour after the start of the meeting, the employers left the meeting.

"There was behaviour on the part of the unions, which we cannot describe as dialogue and seeking a solution. And because no one came here to be shouted at, the employers left. There was no constructive conversation. We are seeking a higher average wage, we want to have growth in the economy, we want budget policies to contribute to this," said the chairman of the Association of Industrial Capital in Bulgaria, Vassil Velev.

The minimum wage must be agreed between employers and trade unions and must be different for different economic activities, Velev added. According to him, the dispute arose because without a medium-term budget forecast, the right decisions cannot be made.

"The demands of the unions are maximalist, they do not correspond to the economic reality and would lead to negative consequences, including for the union members, but these diametrically opposed positions should converge in a calm, reasoned, constructive conversation, not with shouting and screaming", added Velev.

Employers are seeking higher average wages, economic growth and budget policies.

"CITUB trade union set out their position, we all listened patiently, although there are many situations in it that are not true and with which we do not agree in principle," Velev said.

The unions demand that the minimum wage be increased to BGN 764 from January 1, 2022, or an increase of about 17% compared to the current size of BGN 650. Employers oppose the argument that the amount of the minimum wage should be negotiated between business and trade unions on economic activities. They also believe that the proposed size will be higher than the average wage in 10 economic activities or sectors, and in practice companies in these sectors have to pay a minimum wage from their profits, which they do not have due to the crisis.

CITUB leader Plamen Dimitrov announced that if the minimum wage is not increased from BGN 650 to BGN 764 from January next year, he will call on all 500,000 workers eceiving such size of salary to go on indefinite strike. According to him, the salary increase is necessary because there is no one to work for BGN 650, respectively, if the business does not increase wages, there will be nowhere to find workers.

“Those 500,000 people who are paid the minimum wage, say it clearly - they will not work for this money. There will be no such people to agree to work for this money and I don't know what the business will do, "said Plamen Dimitrov.

The minimum wage was the drop of discord, Podkrepa trade union said.

"Vassil Velev mentioned that given the current production, this minimum wage is high, which is unacceptable as a conversation, and from then on the tone of the conversation started to become very heated," said Alexander Zagorov, Podkrepa trade union.

Inflation rate is expected to reach about 5% by the end of the year.

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