Bulgaria Govt, Business, Unions Start Unemployment Talks

Bulgaria's major trade union leaders Hristov (left) and Trenchev (right) demand regular growth of the minimum wage. Photo by BGNES

Tripartite talks between the Bulgarian government, the business sector, and the trade unions are starting Thursday to come up with measures against the rising unemployment.

The two major trade unions, the Confederation of Independent Bulgarian Syndicates (KNSB), and the Podkrepa Labor Confederation, insist that a special anti-crisis council be set up by PM Boyko Borisov.

They also demand increasing the capital of the Bulgarian Development Bank by BGN 500 M, which are to be used for giving credits to businesses. The unions also believe that a new income policy is needed to make sure the minimum wage will be increased regularly, and that unemployment benefits will cover 60% of the previously earned salary.

The business sector in turn insists first and foremost that the Bulgarian state pay out the BGN 2 B that it owes to private companies for projects carried out in 2009.

Bulgaria’s Labor Minister, Totyu Mladenov, has recently stated that some two-thirds of demands of the business sector and the trade unions are reasonable, and could be adopted by the government. He has made clear his position in support of favorable new forms of crediting businesses so that they can pay out the social security benefits of their employees.

The tripartite talks are expect to take less than a month, and to end with a tripartite agreement on measures to fight unemployment. Bulgaria's unemployment rate is believed to have exceeded 10% in February 2010, meaning that some 370 000 people are jobless.

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