Collective bargaining on general agreement

1. Collective bargaining on general agreement • Current situation Pursuant to the Law on Collective Agreements the General, sectorial, territorial and company-level collective agreements are concluded on bipartite basis between owners and trade unions National level: Owners’ side Trade unions’ side Trade unions Government employers

2. Owners’ side Trade unions’ side trade unions • Sectoral level: • Territorial level: • Enterprise level: Central executive authorities employers Owners’ side Trade unions’ side trade unions local executive authorities employers Owner Trade union/unions

3. Suggestions for reform 1. Support employers' proposal to conduct collective bargaining on General agreement on a tripartite basis Government Trade unions 1) acts as public sector employer; 2) ensures development of legislative framework Employers • This will ensure: • autonomy of trade unions’ and employers’ sides; • balance of interests of all three parties of social dialogue; • government acting as public sector employer as well as authority responsible for development and implementation of social and economic policy.

4. 2. Provide for tripartite format of negotiations with further possible shift to collective bargaining and conclusion of agreements on a bipartite basis between trade unions and employers at the national level. At the same time the Government preserving its authority in development and implementation of the state social and economic policy will act as public employer and will conduct collective bargaining with respective trade unions in budgetary sector. 3. In future it would be advisable to consider possibility to conclude tripartite social pacts on specific issues based on collective bargaining.

5. Plan of activities aimed at reforming the format of collective bargaining to conclude next-term General Agreement on tripartite basis Meeting of the Vice-Prime-Minister of Ukraine – Minister of Social policy of Ukraine Mr.Sergiy Tigipko with the Chairman of the Federation of Trade Unions of Ukraine, Head of Trade Unions’ Joint Representative Body Mr. Yuriy Kulyk and Head of the Board of the Federation of Employers of Ukraine, Head of Employers’ Joint Representative Body Mr. Dmytro Firtash to discuss this issue and decide to: • Introduce tripartite format of collective bargaining and conclusion of the General Agreement. • Appoint plenipotentiary coordinators from each side (representative level – not lower than Deputy Minister from Government’s side and not lower than deputy Head of Joint Representative Body from trade unions’ and employers’ sides) • Approval of preliminary action plan for conclusion of the next-term General Agreement

6. Preliminary action plan on conclusion of the next-term General Agreement 1. Amendments to the Law of Ukraine on Collective Agreements with regard to collective bargaining on tripartite basis. (it is suggested to base on the draft law № 10106 “On amendments to the Law of Ukraine On Collective Agreements” (on determination of the parties of collective bargaining)” (№ 10106), submitted by MPs March – until adoption О.Shevchuk andY.Sukhyi 23.02.2012, taking into of the Law Consideration its revisions ) 2. Consultations on the following issues: а) number of authorized representatives of the parties (it is suggested to have 17 from each party) April– May б) list of the sections of the new General Agreement 3. Establishment of the group of authorized representatives of the parties, entrusting them the authorities necessary for conducting and completing collective bargaining May – June on the new General Agreement

7. 4. Establishment of expert working groups on drafting respective sections of the new General Agreement under guidance of authorized May - June representatives of the parties 5. Drafting respective sections of the new General Agreement by the working groupsJuly – September 6. Official initiation of collective bargaining on new General Agreement І decade of October 7. Collective bargaining process October – December 8. Completion of collective bargaining processnot later than 20 December 2012 9. Signing of the new General Agreement within 10 days after completion of collective bargaining According to article 13 of the Law of Ukraine „On Collective Agreements” the General Agreement shall be signed by authorized representatives of the parties within 10 days after completion of collective bargaining process.