AOBE CALLS BRANCH ORGANIZATIONS TO BOYCOTT NEGOTIATIONS ON MOD FOR 2019

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For the third consecutive year, the nationally representative employers ‘organizations – BICA, BIA, BCCI and CEIBG, united in the Association of Bulgarian Employers’ Organizations (AOBE), call on the branch organizations not to participate in the forthcoming negotiations on the determination of the minimum insurance income for 2019.

In a letter, AOBE members thank branch organizations for their previous support, and are confident that they will also make a definitive refusal to participate in the MOD-2019 talks this year.

According to the employers’ organizations, the practice of defining an MOD shows the control system’s powerlessness to deal with undeclared work. Moreover, the gray sector is increasing, pressure on employment in individual regions, sectors, depressed enterprises, low-skilled vulnerable social groups, and a reduction in the net remuneration of employees.

Last but not least, such a practice does not exist in the EU Member States and Bulgaria has been repeatedly criticized on this issue by the European Commission.

The members of the AOBE are convinced that the conditions and the remuneration of the work, as well as the updating of the minimum wages for the respective positions, should be determined by collective agreements and be valid for the respective parties under these contracts without extending to the whole economy.

In addition, AOBE reminds that the adopted in April this year. government medium-term budget projections foresee a 20.9 percent increase in wage and salary compensation per employee by 6.6 percent, with double growth in labor productivity (3.2 percent).

According to the approved procedure, the Minister of Labor and Social Policy will announce the negotiation schedule and, after their end, will disclose the MODs for the nine groups of professions and positions in 85 economic activities.