REPORT: SESSION ONE

Hello friends,

The Bulgarian study circle group is under the influence of thr TNCs invasion, but of the spring, as well and we have two new members. Let me introduce them:

* Mr. Krassimir Pastrapanski - President of the KNSB Union of the Brewers in Bulgaria.

From the study circle he is expecting to gather more knowledge concerning the social partnership within TNCs, esp. European Works Councils, in order to promote relevant strategies and activities under the KNSB members employed in the affiliates of the TNCs.

He is using his free of trade union activities time to undertake contacts with persons rich of information and ideas.

Preparatory Session has been organised with the invitation of several branch federations of KNSB which have their structures in/or near Sofia, because of lack of money for the implementation of the Pilot 2. It has been carried out on March 19, 1998. In the next session we will include representatives of other TNSs, located outside Sofia as well.

* Mr. Tzwetan Tzenov - President of KNSB Regional Co-ordination Council for Sofia.

He is interested to understand more dates connected with the TNCs strategies and activities in order to be able to assist the grass-roots presidents (shop stewards) of the privatised companies with the participation of foreign investors which number and influence is increasing last years.

Tzwetan likes to discuss with different people and wishes to help them to become stronger.

 

Our study circle meeting has started with the presentation of the colleagues from the other groups (we could not open only the report Sweden 3) by the facilitator Julia Simeonova.

The reaction: So different persons, with so different arrangements and hobbies gathered to understand not only the issues of globalisation, privatisation, workers' rights and democratic control but to give them more power on the base of the created ISC network in the prevention and solving of the common problems caused by the challenges of the changing world.

The discussion on globalisation has started during the Preparatory meeting.

After the article and the introduction of the facilitator everybody has described the changes at different level according to the available experiences:

* Ivan Daptchev (Hyundai Elprom-Trafo): We have been one of the leading plants in the production of energy utilities exporting in 32 countries all over the world. The first decision has been 90 % mass privatisation. It has been changed according the new world conditions declared by the World bank and the IMF ( Since July 1, 1997 Bulgaria is under Currency board) and 90 % has been privatised using cash privatisation. On this base we have lost our market and one very important auction because the new owner - Hyundai Heavy Industry has increased additionally 10 % the price in the prepared offer. If we have been successful we would have at least 1,5 year sure work. We are using new technologies but our wages are 30 times under the wages of our European colleagues - $ 100 per month. We have the feeling that the new owner aims to close our plant. Probably somebody is paying to ignore our competition.

Ivan has given several examples about ABB, Mitsubishi, Siemens.

* Silvia Kovatcheva (Hyundai Elprom-Trafo): Now we are implementing collective bargaining. The suggested Collective contract includes of course social advantages but the owner insists to write: if there is enough money available. It would be important to have access to the contracts with the new foreign owners. During the last several months no money has been invested, because "it has not been foreseen for the first year" are telling the Asian colleagues.

The question is: how to motivate the workers under these conditions? We have to be very careful because the unemployment rate in the country is over 14 %.

* Elena Michailova: In our work we are supported by the International Metalworkers Federation where our Trade union federation "Metallicy", but also your KNSB Federation "Metal-Electro", are members.

* Krassimir Pastrapanski: 1/3 of the 13 Bulgarian brewery factories has been privatised. Leader is Interbrew - Belgium. It is a powerful company and we do not have any problems in the field of social partnership and collective bargaining. At the same time the workers have been reduced about 50 %. Instead of increasing the wages the new owners are offering social advantages and the workers do not have anything against. The production now is 3-4 times more. Interbrew covers now 2/3 of the Bulgarian beer market. Second place in the list of foreign investors in our branch takes Brewinvest Heineken - Greece. It is not so social oriented and there are some troubles connected with the collective bargaining process. We need training sessions on Health and Safety in the managed by this company factories.

Krassimir has undertaken the responsibility to inform the 20 participants who will attend a two-day seminar on April 9-10, 1998 about the TNCs, to give materials to the interested persons and to invited them to join our group on April 14, when the next ISC meeting will take place.

His Union has applied to become member of IUF. Now it is an associate member.

* Tzwetan Tzenov: There are more than 20 TNCs affiliates in Sofia region (has given examples). The common characteristics are: new technologies and the consequence - reducement of the of the employed workers. The wages are higher compared with these in Bulgarian owned plants, but several times under the wages of the relevant branch in the developed countries. There are usually training activities but not only for the Bulgarian. In Marketing departments of the new affiliates we often meet young people from the foreign investors' head-quarters in order to be trained in our approaches, traditions etc.

* Dragomir Gueorguiev: There are advantages introduced by TNCs especially in the production, marketing and distribution systems, allowing increasing of the efficiency of the work, the quality according the world standarts etc. aiming more profit. The sub-contracting has been developed very soon in our country. It gives the TNCs the possibility to have always the needed workers at their desposal paying them only one-two minimum monthly wages (without social insurance and taxes).

The following additional materials translated into Bulgarian have been distributed, read and discussed during the meeting:

• Trade Agreements
• Global Economy, Global Solidarity
• Transnational Corporations and Sub-contracting (season workers)
• The Multilateral Agreement on Investment

The ISC members agreed to finish the privatisation issues during the next meeting because of the importance and specific characteristic of this activity in Bulgaria during the transition period to market economy.

Additional materials translated into Bulgarian and distributed for reading before the next session:

• To Picket it, Just Click It
• European or World Councils
• Conclusions adopted by IMF Joint Council