Conflict among the employer organizations in Bulgaria

The four-year cycle of the social dialogue in Bulgaria, within the expiring mandate of the current Government (July 2005) has an unhappy ending. In the beginning of 2005 the two large trade unions demonstratively abandoned their work at the National Tripartite Co-operation Council. During the last weeks the 'Punic War' was transferred to the employer organisations. In this environment the Government’s reports claiming it has a successful dialogue with the public during their mandate do not seem very justified.

Less than a year ago the first 'census' of employer organisations in Bulgaria was finalised. In the process of checking the existence of representation criteria provided by the Labour Code it was found that the six employer organisations are eligible. Thus the 'old' representative organisations:

• Bulgarian Industrial Association with total of 2,481 members employers;

• Bulgarian Chamber of Commerce and Industry- 2,262 members;

• Bulgarian Union of Private Entrepreneurs 'Vuzrazdane'- 873 members;

• Union for Private Economic Enterprise- 660 members,

were joined by two new organisations:

• Employer Association in Bulgaria- 828 members, and

• Bulgarian Industrial Capital Association- 862 members.

All the representative employer organisations joined the Association of Bulgarian Employers Organisations, which is a collective member of the International Labour Organisation and represents the Bulgarian business at ILO.

This fragmentation of employer organisations caused the concern of industrial relations observers in Bulgaria. Analysing the census data for the employer organisations they predicted that the negative effect from the large-scale phenomenon of double and triple membership of a single employer into several employer organisations would aggravate. Another warning that came from the experts was about the danger of employer organisations having difficulties while consolidating their views on significant matters.

The conflict

In just a few months these predictions started materialising.

During the second half of April 2005 the growing tensions among the employer organisations left the boundaries of a 'family dispute' and were transferred to the media pages. Interestingly, the formal step that became the last straw was the signature by the Employers Association in Bulgaria (together with another employer organisation - the Bulgarian International Business Association (BIBA), which unites the large external investors) of an agreement with the largest trade union organisation - the Confederation of Independent Trade Union in Bulgaria, regarding the further development of industrial relations in Bulgaria.

This act caused the enraged reaction by the 'large ones'. According to the management of the Bulgarian Industrial Association and the Bulgarian Chamber of Commerce and Industry, this is unacceptable and unprecedented, since in the past 15 years no single employer organisation has signed independent agreements with the trade unions.

The management of the Employers Association in Bulgaria 'struck back' stating that they would not except attempts to put its sovereign actions under discussion and pressure and said such actions are gross interference in its right to initiative. More to that, in its special declaration EAB stated that in its capacity of an employer organisation, which together with BIBA represents entrepreneurs producing two thirds of the GDP, 'it will continue being an alternative to the totalitarian employer organisations, despite their attempts as an end in itself to make scandals and political intrigues'. On this occasion, the management of Employers Association in Bulgaria decided to cease its membership in the Association of Bulgarian Employers Organisations, and at the same time stated that it would take an initiative to develop new criteria for representation of the employer organisations.

The response of the other five representative organisations was not delayed very much. Their experts claimed that a lot of the provisions in the agreement of the Employers Association in Bulgaria with the trade unions are in contradiction with the employer principles. This gave them a reason to expel the EAB from the Association of Bulgarian Employers Organisations.

The sudden aggravation the relations among the employer organisations will probably complicate the work of the dozens of national, branch and regional social dialogue structures. With view to the forthcoming regular parliamentary elections in Bulgaria (25 June 2005) this development will mean most probably that from the very start of its mandate the new government will be forced to take the role of a conciliator of employers organisations instead of focusing on the implementation of commitments made to the business.

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