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The impact of the crises on industrial relations in Macedonia

Dr. Marija Risteska's report examines the historical developments, legal framework, and social dialogue partners in Macedonia. It analyzes the impact of economic crises on employment, wages, safety at work, and education. The report also discusses policy responses and the role of social dialogue in times of crises.

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The impact of the crises on industrial relations in Macedonia

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  1. The impact of the crises on industrial relations in Macedonia Dr. Marija Risteska

  2. The report – in numbers • 4 Chapters • 12 tables • 10 boxes • 3 case studies • 73 pages

  3. Chapter 1 • The historical developments in social dialogue in Macedonia • The legal and institutional framework • The partners in social dialogue • Representativeness • Density • Bargaining

  4. History of social dialogue • Period 1: 1991-2003 • Capital transformation and transition of economy • Lowering union membership • Weak legal and institutional framework of social dialogue • Lack of legitimate partner to represent employers in negotiation process

  5. History of social dialogue • Period 2: 2003-2009 • Stagnation in the work of the ESC • New legal framework was adopted (in a consultative way) • Representativeness was defined

  6. History of social dialogue • Period 3: 2010-2012 • Invigorated dialogue • Collective agreements are signed • However, on regional and sectoral level improvements still needed

  7. Industrial relations -ESC

  8. Density • Public sector - 54% • Private sector - 31% • By sectors • Communal services - 86% • Education and science - 80% • Forestry and wood industry - 74% • Banks and financial services - 68% • Chemistry and metals - 59%

  9. Chapter 2 – Crises and challanges • Economic dimensions of the crises • Employment and the crises • Crises and wages

  10. Economic dimensions of the crises in MK GDP Growth Rate in Selected Countries

  11. The economic dimensions of the crises in MK Industrial Production Labour Market Indicators

  12. Perspectives of social partners on the impact of the economic crises • Employment • Mostly affected the metal and textile industry • Employers interested in new job openings / unions in keeping existing jobs • Biggest losers are workers employed on fixed contracts • New employments (in public sector, agriculture and construction) are again on fixed contracts • 8.5% (2005) →12% (2010) • Wages • The introduction of the gross wage concept increased wages in 2009/2010 • Wages increased for qualified workers • The workers on fixed term contracts were faced with decreasing wages (especially in the metal industry) • Wages remained same in textile sector (labor intensive and with minimal wages) • Safety at work • As a result of unemployment, increased job losses the employers turn not to provide adequate work conditions • Most affected young workers, women and elderly workers • Data shows decreasing trend in work injuries in times of crises • Education • Lack of qualified workers • Need for vocational training especially in the sectors which are developing in times of crises (construction, wine industry, food processing industry)

  13. Policy Development process for responding to the crises

  14. The policy responses to financial crises • Legislation changes • Regulatory guillotine • Regulatory impact assessment • Fiscal instruments • Salary payment incentives (wage taxes to be paid by 15th day in the month) • Allowing writing off of company’s debts • Instruments to improve competitiveness • Access to finance • Property reforms • Active labor market measures (long term unemployed and vulnerable groups) • Consumption stimulation instruments • Influx of public investments in construction sector • Construction of commercial objects on the Corridor 8

  15. Policy responses – austerity measures • Temporary prohibition of public employments • Wage increases announced in 2009 were postponed • Prohibition of purchase of equipment, furniture vehicles, trips abroad • Control of the employments through temporary employment agencies and wages paid to such staff

  16. Social dialogue in times of crises • 2010-2012 renaissance in social dialogue • Social partners active in proposing recovery measures • Government active in proposing and consulting the crises recovery measures

  17. Gap analysis

  18. Conclusions and recommendations • Even though unions were ignored and not formally included in the development of the anti-crises measures their interest were protected by the public interest represented by the GoM • The potential of the social dialogue as forum for discussion was not used in times of crises for development of the key recovery tools • There was high interest among all social partners to contribute to discussions on the impact of the economic crises and the development of the policy responses for recovery from the crises

  19. Mission is possible! http://www.youtube.com/watch?v=RL53cWffrBM&f­eature=youtu.be

  20. Marija Risteska risteska@crpm.org.mk risteskamarija@yahoo.com Mobile: 0038970533992 Center for Research and Policy Making Cico Popovik st.6-2/9 1000 Skopje, Macedonia T: +389 2 3109932 F: +389 2 3109932 www.crpm.org.mk | crpm@crpm.org.mk

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