The mechanism for setting the minimum wage to be clear by September 15

“After negotiations with the syndicates and employers, I hope that we reach an agreement and clarify the mechanism for setting of the minimum wage by September 15 in order to use it as early as next year,” Minister of Labour and Social Policy Totyu Mladenov said on BNR (Bulgarian National Radio) today. He reminded that as a result of the minimum wage increase to BGN 270 as of September 1, 2011, collective agreements had been signed in the branches of mining and chemical industry, metallurgy and many other sectors. Thus, not only the minimum wage, but also the other remunerations, will increase in these branches. Minister Mladenov announced as well that the minimum insurance thresholds for next year should be set.

“Obviously, after remunerations had been frozen for three years and with the inflation rate exceeding 10%, we could not but have arguments for demanding an adjustment of incomes,” Plamen Dimitrov, leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB), explained. He reminded that since March, 2011, the Podkrepa Labour Confederation and CITUB had placed common demands for at least 10% increase of remunerations, a minimum monthly wage of 290 BGN, and setting of a tax-free minimum equal to the minimum wage or close to it.

“We have invited Dr. Konstantin Trenchev on September 9, as well as branch chambers, to discuss the possibility of nearing our positions concerning our demands,” said Dimitrov, adding that “exports alone can not pull Bulgaria out of the recession”.

Vice President of Podkrepa Dimitar Manolov, on his part, commented that Finance Minister Simeon Djankov would probably point to cutting expenditures as a way out. According to the syndicate leader, such an approach can work for some time, but increased demand can be the solution afterwards.

Social Minister Mladenov said in front of the trade unionists that one of the best ways to recover from the crisis would be if the Government, the syndicates and businesses had common positions. He added that he would call a meeting of the National Council for Tripartite Cooperation as early as next month.

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