26.04.2011

KRIB's proposal to amend and supplement the Labor Code

The proposal aims to create objective and impartial criteria for the representativeness of employers' organizations to guarantee the importance and social mandate of the participants in the tripartite dialogue, in accordance with the recommendations of the European Commission in the field of social dialogue.

Considering that with the proposed criteria, the employers' organizations prove their national representativeness in the project of the ZID of KT, it is envisaged to introduce quantitative criteria that reflect their contribution to the country's economy, by proving their participation in the formation of GDP, as well as the scope of labor employment among their membership.

In order to guarantee the clear social profile of the organization as a participant in the tripartite dialogue, it is foreseen to take into account not only the representativeness of the organization by sectors and territorial scope, but also the principle of independence of the organization and above all its financial dimension is introduced, since only one a financially independent organization can be an authentic and truly independent representative of the interests of its members before the executive and legislative authorities. A suggested measure of an organization's financial independence is its income from membership fees. For a true national representation, a sufficiently serious amount of income from membership fees is needed to guarantee the sustainability of the organization and the ability to cover the costs of remuneration of the employed staff, rents, activities in the country and abroad. By paying the membership fee, member companies also demonstrate empathy and support for the organization they are a member of. In this way, the possibility of fictitious membership is also eliminated.

The draft law also introduces an additional criterion, according to which employer organizations should not carry out other activities expressly assigned to only one of them by law or by a regulatory act.

In order to guarantee objectivity when determining the representativeness of employers' organizations, it is planned to require an express authorization for representation in the tripartite cooperation system when an employer is a member of two or more organizations, as well as when a branch structure of employers is a member of two or more national organizations of employers.

Taking into account the specific characteristics of employers' organizations and in order to preserve the representativeness of small and medium-sized enterprises, the project provides for the determination of the numerical composition of the respective organization according to one of the alternative criteria, namely: the organization must have at least 750 members, each of which there are not less than 10 workers and employees employed under an employment contract and a total of not less than 15 workers and employees in all members of the organization and a significant increase in the second criterion is proposed when determining the numerical composition of the organization from 000 30 per 000 workers and employees employed under an employment contract in all members of the employer organization.

The state is a participant in the tripartite dialogue and as an employer in the public sector. For this reason, it is suggested that members with more than 50 percent state or municipal participation should not be counted in the representation of employer organizations. Their interests are represented by the state as their principal.

The specific proposals boil down to:

§ 1. Article 35 is amended as follows:

"Art. 35. (1) An organization that meets the following requirements is recognized as a representative organization of employers at the national level:

1. has at least:

a) 750 members, each of which has not less than 10 workers and employees employed under an employment contract, and a total of not less than 15 workers and employees in all members of the employer organization; or

b) 250 workers and employees employed under an employment contract in all members of the employer organization;

2. there are employers' organizations in more than one fifth of the industries determined by the Council of Ministers in accordance with the Classification of Economic Activities, with no less than 10 members;

3. there are local bodies in more than a fifth of the municipalities in the country and a national governing body;

4. has the status of a legal entity acquired pursuant to Art. 49, paragraph 1 at least two years before the submission of the request for recognition of representativeness;

5. does not perform activities expressly assigned only to it by law or regulatory act;

6. prove that it has a contribution to the creation of the country's GDP of no less than 33 percent;

7. prove that for each of the last three financial years the amount of income from membership fees is not less than BGN 500;

8. when establishing the criteria for representativeness, members with more than 50 percent state or municipal participation are not taken into account.

(2) In cases where one employer is a member of two or more employers' organizations, when establishing the membership in view of the presence of the criteria for representativeness under para. 1, item 1, he shall be included in the list of that organization to which he has given an express power of attorney to represent him.

(3) In cases where one sectoral organization of employers is a member of two or more organizations of employers, when establishing the membership under para. 1, item 2, in view of the presence of the criteria for representativeness, it is included in the list of that organization to which it has given an express power of attorney to represent it."