MITREVSKI - PRICES GO UP, SO SHOULD THE WAGES - Interview for Radio Free Europe

Mr. Mitrevski, how would you rate the state of workers' rights in Macedonia compared to the other countries in the region?

The fact is that Republic of Macedonia, like the rest of the countries, is living in conditions of severe global economic, financial and debt crisis, and it was a challenge for the social partners, to really sit down and talk seriously in terms of building strategies, primarily on providing workers’ standard, providing labor and material safety of workers and prospects regarding the future existence, in terms of maintaining the pension system. In this sense, we reached an agreement that in such circumstances we cannot allow mass firing of workers, we cannot allow reduction of wages in the country and also, another strategic goal was to keep the amount of the pension limit, and those were basically the three pillars of the overall strategy. So, if we make serious analysis on the situation in Republic of Macedonia and beyond, we will see that job security is gravely concerned, that in many countries pension limit is increased, and that there is drastic reduction of wages to 30%, which means that unlike the other states, we provided material and social security for workers and we managed the effects of this extraordinary crisis not to reflected in that manner. That does not mean that the state has no problems, wages in the country are low, we have increased prices and it is a really serious challenge - how the social partners will manage with this issue.

Information was released recently that in almost half year no employer was fined for not paying the minimum wage. Do they really respect the law on minimum wage?

Well, it was a long debate and it was not made by accident. We made a historic achievement that wasn’t made in Macedonia before – the Law on Minimum Wage was adopted. We discussed a lot on the amount of the minimum wage and if that amount will suit the employers who are or are not willing to pay such a high salary. The time spent in discussions proved that we were right when we defined such a principle, not to be tied to a specific amount, but to make it 39.6% of the average wage. The latest statistics denied the part that is often criticized - that in certain segments, or especially in textile, leather and shoe industry the amount will not be reached, that the grace period is running and that the amount is far lower compared to the defined amount, or 6.859 MKD vs. 8.050 MKD. However, recent data have shown that the true average net salary in textiles is 10.804 MKD, in clothing production and leather industry is 10.490 MKD MKD. This means that even in these conditions we have one more step forward in terms of the minimum wage, because we know that right it is 8.050 MKD, meaning these analyzes confirmed our position that in these branches which are considered to be the most problematic, we stepped even forward, not to mention that the determination of the amount of the minimum wage, which before the law was 4.500 MKD to 5.300 MKD, provided wage increases of 30% in other branches where the collective agreements automatically come to increase the level of the coefficient, providing the majority of branches with increased wages. So it would really be scandalous if this salary of 8.050 MKD could not be paid. The assessment was that this salary is paid and that can be paid. There were certain anomalies where a number of employers intending perhaps to circumvent those 2.000 MKD, and the workers had an obligation to return it, or those 2.000 MKD were given in coupons for certain stores. I think that with the campaign we had after the adoption of the Law on Minimum Wage, with the structure that we have in the entire territory of the country, and on the basis of mutual engagement with the labor inspection, the Minimum wage Law is being implemented and there is no drastic disruptions.

Is the minimum salary of 8.050 MKD sufficient? Additionally, according to the State Statistical Office, almost half of those who receive salary, it is lower than 12.000 MKD. Is there a space and need for wage increases in Macedonia?

There is absolutely a need to increase wages in the country, given the forecast on the increase in prices of food. There is only one good data showing that the level of production in Republic of Macedonia did not fell drastically, but grew by 2.9% in construction where we have dramatically increased productivity and production. On the other hand, the data also show that 80.000 workers receive salary somewhere in the amount of the minimum wage. In these three sectors that I mentioned earlier, the salary is already over 10.000 MKD and around 400.000 workers receive wages from 12.000 to 20.000 MKD, while only 3.2% of employees receive a salary above 30.000. If we consider the amount of the consumption basket of 32.571 MKD, it is obvious that there is serious lack of funds that should meet the needs of a family of four and it is an issue that we often discuss and we should start a negotiation process and to increase salaries in the country. We started with the process where we have signed collective agreements and where we have healthy trade union organizations. We have around 12 branch collective agreements, where the adoption of the Law on Minimum Wages increased wages, but we will discuss on this after the crisis. I believe that next year may have a different we will have space to talk on increasing of the lowest salaries - the category of 80.000 workers.

You mentioned the consumption basket, so maybe you should be louder in its publication?

First time in 20 years, SSM published these data. They are not random data, and were made for the purpose of making more laws, and they were the basis for us to ask for more laws such as the Law on Minimum Wage. The basket was the base for negotiations on signing of collective agreements and their conclusion. Thus, we are the only ones publishing the amount of consumption basket, unfortunately. We promote it on our website, in economic magazines, in consulting companies and press conferences. Unfortunately, it is rarely mentioned by other entities, even though it is benchmark for building strategies in dealing with particular economic situation.

Mr. Mitrevski, you are being accused of being "yellow union" and that you are too close to the Government. How you respond to these accusations? Can the Trade Union be successful without the government?

The fact that there are several historical laws adopted that did not exist before, is a proof that if we were "yellow union" we would do anything. So, we've managed to stop mass firing of workers, we have managed to keep the level of wages, we've managed to maintain the pension limit, we managed to adopt the Minimum Wage Law, the Law of European Workers’ Councils - the core that allows the return of workers participation, the Law on Mobbing. We also started procedures for institutionalizing the position of trade unions at local level with signing of agreements to form a series of local economic and social councils. These are tangible results that no one can hide and no one can deny. We issued a booklet on the new benefits in Labor Law from 2010 onwards. We stopped the process of ruining of the workers' rights in the country, we provided the implementation of the 19 EU directives, and we provided protection to several target groups – women and pregnant women. We also provided something that caused amazement regarding implementation of the Directive on information and consultation. Namely, with the recent changes in Labor Law we even managed the employers to declare the salary in job announcements, also, if there are more than two workers who are not registered, the company will be closed and the workers will receive 70% of the salary. These are specific actions that critics should analyze and reconsider. So, the results speak about SSM. We also became associate members of the European Trade Union Confederation, as well as in the International Confederation of Trade Unions and all of it is a result of our activities. In terms of crisis, wherever there are aware and accountable social partners who are willing to talk about problems, to selected strategy in the interest of workers, citizens and state, they can really agree, and not only to implement pure demagogic policies like trade union protests, but with no concrete results. So, the strategy is different and within three years it gave dramatic results that could be analyzed by those who critic.

But on the other hand there were reductions in workers' rights. There was a reduction in the period when redundant workers receive compensation, problems with maternity leave for women with pathological pregnancy... if you make a balance, are you satisfied of the results?

There is no joy in the trade union work. Any job associated with problems and solving of problems cannot give you pleasure, if you live in a crisis, if unemployment is high, if you have constant problems of different nature. Satisfaction is part of what I mentioned earlier, in passing historic legislation, in providing protection for a huge category of workers vs. reduction in rights for a small category of workers. But if we put it on a scale, we will see the results that have been achieved, those three pillars I mentioned, I really can say that to a large extent, the programs and objectives of SSM and affiliated trade unions have been met and given the qualifications that we get lately, our achievements are example for the other trade unions. I repeat, no massive layoffs in terms of crisis, no cuts in salaries, no increase in the retirement age, no vulgar preferential treatment to the flexibility of the workforce, job security, signed Collective Agreement for the private sector with no rights reduced, I really consider that we go in the direction of realization our programs and goals.

Srgjan Stojancov

Acquired from www.slobodnaevropa.mk 07/28/2013