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The role of social dialogue in addressing the problems of informal economy

The role of social dialogue in addressing the problems of informal economy. Presentation for the ILO-ITC seminar on “ Employment and Informal Economy” March, 2009 Prof. Krastyo Petkov-Bulgaria Kr.petkov@wnwe.eu. Present situation.

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The role of social dialogue in addressing the problems of informal economy

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  1. The role of social dialogue in addressing the problems of informal economy Presentation for the ILO-ITC seminar on “Employment and Informal Economy” March, 2009 Prof. Krastyo Petkov-Bulgaria Kr.petkov@wnwe.eu

  2. Present situation • The general conclusion of the review of researched administrative and legal frameworks targeted at informal economic activities in the nine countries, included in the ITUC/PERC project is: “Different Countries – Plethora of Traditions and Cultures – Diversified Policies”. • Certainly, meaningful factors, which influence informal economic activities, are the types of state governance, and the degrees of development of social dialogue as well as influence of the social partners onto the economic agents, operating on national and sectoral levels.

  3. TRADE UNION ARGUMENTS • 1. Strengthening social dialog; • 2. Support/content for the collective labor bargaining; • 3. Strengthening sectoral bargaining; • 4. Arguments to organize new members; • 5. Professional expertise for TU]

  4. MODEL CHOICE • 1.The two pillar strategy :”exit”- “voice” choice • 2.Elements of “exit” choice strategy; • 3.Elements of “voice” strategy; • 4.Bulgarian model: - pragmatic approach /”IE can not be removed, it must be limited”/; - choice of segments: /labour contracts and social insurance contributions/; - public/social partners support;

  5. IE REGULATION: BULGARIAN PRACTICE

  6. LABOUR CONTRACTS REGULATIONS • 1.Changes in the Labour Code /art. 62/: • 2.Registration of individual labour contracts /ILC/ by the employer in the National Revenue Agency; • 3.Special regulations by the MLSP, compulsory for the employers: - notification documents and procedure; - Labour Inspection Control;

  7. SOCIAL INSURANCE REGULATIONS 1. Changes in the Social Insurance Code /art.6-2/: -minimal insurance thresholds; -maximal insurance thresholds; -national classification of the economic activities and occupations; 2. Social Insurance Budget Bill procedure; 3. Annual agreements by sectors; 4. State arbitration and control / 7% annual increase /;

  8. BARGAINING PROCEDURE • 1.Opening: July each year • 2.Preliminary information, provided by the state: • macroeconomic indicators; • labor contracts statistics; • social insurance contribution figures etc. • 3.Sectorial and guild bargaining; • 4.Minimal threshold dilemma;

  9. Outcomes • 1.First financial results-200 Mln. Euros increase in revenues; • 2.More effective ILC /162 000 increase/; • 3.Financial stabilization of the pension and health insurance fond; • 4.Transparent labour relations; • 5.Regular information for social partners; • 6.Better business environment;

  10. SOME RECOMMENDATIONS • 1. Good practices implementation needs social dialog. Administrative decisions do not alwayswork! • 2. Some employers do not support regulations. Cooperate first with the rest . • 3. Transparent labour relations do not increase incomes. Wage bargaining needs separate strategy. • 4. Create/use networks • 5. Build up TU expertise. Informal economy needs professional knowledge. • 6. Develop learning

  11. The end Thanks for the attention! Any questions?

  12. Trade union reflections Първи реакции: подценяване; негативизъм; неглижизъм; Полева адаптация- особено към неформалната заетост във формалните предприятия; Първи опити за само/организиране-в неформални предприятия и сред самозаетите; Преформатиране на партньорството в НЕ: консешън барганинг с раотодателите; пресинг на държавата; Наченки на стратегически рефлексии: от опознаването на феномена до изработване на алтернативи; социалният диалог като инструмент; Синдикалната ситуация в преходните икономики: от отстъпление и фрагментация към консолидация ;

  13. TU-challenges- Networking Типове мрежи: роднински /Армения/; етнически /имигрантски; Външно организиране-синдикати; Самоорганизиране : -на наемните работници; -на работодателите; Спецификата при самозаетите;

  14. TU Callenges-Training Двете опции: -смяна на професията и сферата на заетост/ деквалификацията като масово явление/; -използване на професията като трамплин /успехът на образованите/; Търсене на работа и начална адаптация; Обучение и самообучение за неформален труд и самозаетост; Нетуъркинг-прегрупиране на работната сила на квалификационно-ситуативен принцип; Изграждане на неформална трудова култура; Неформалното възпроизводство на работната сила: проблемът за второто поколение;

  15. Missing Knowlege • Знания за самозаетите: • -патенти и лицензи; • -данъчни регулации; • -социално осигуряване и самоосигуряване; • -начални бизнес умения и кредитни опции; • -социално предприемачество; • - компютърна и езикова подготовка; • -трудови и социални права и регулации; • Знания за неформално наетите във формални и неформални предприятия: • -трудови и социални права; • -социално-осигурителни права; • - коопериране , асоцииране и синдикализация; • - компютърна и езикова подготовка; • -застъпничество /адвокаси/; • Знания за работодатели/мениджмънт в неформалните и формални предприятия • -фирмено счетоводство; • -трудово и социално законодателство; • -социален диалог , арбитраж и посредничество;

  16. Knowledge for state administration Начален курс по къмплайънс култура и организационна приложна психология за: Митничари и полицаи; Данъчни инспектори; Трудови инспектори;

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