FEDERATION OF TRADE UNIONS OF MACEDONIA

-DRAFT-

SOCIAL PROGRESS PROTOCOL

IN THE

REPUBLIC OF MACEDONIA

January, 2017

Considering the fundamental constitutional principles of economic freedom and social rights, the proclaimed concept and commitment of the Republic of Macedonia as a social state, the social rights concept as defined in the European Social Charter, the fundamental ILO Conventions, the Constitution of the Republic of Macedonia, the Labor Law, in the interest of promotion, implementation and improvement of the social and economic position of the workers in Macedonia, encouraging and promoting the employment process, the fight against social exclusion, improving and protecting the living and working conditions, the level of education, training and protection of workers’ health, strengthening of the social dialogue, aimed at providing the fundamental importance of the social progress and its application, the Federation of Trade Unions of Macedonia is proposing the following Social Progress Protocol to the Government of the Republic of Macedonia:

SOCIAL PROGRESS

PROTOCOL

Article 1

CCM and the social partners in the interest of achieving the European social model proclaim and undertake to implement joint activities towards achieving social progress in Macedonia, which shall be aimed at further realization, promotion and protection of the socio- economic, legal, labor, cultural and educational interests of the workers in the country.

Article 2

The social progress shall be realized in the direction of:

- Improving the social and material status and working conditions of the workers and citizens in Macedonia;

- Providing effective exercise of basic social freedoms, rights and principles, social dialogue, especially the right of negotiation, conclusion and implementation of collective bargaining and negotiation at all levels;

- Further realization, protection and improvement of existing rights and efforts of the unions to improve the working conditions and legal status of the workers, ensuring decent wages, elimination of social exclusion;

- Implementation of existing labor and social regulation, avoiding any deterioration of existing laws.

Article 3

Priority in achieving further social progress in the Republic of Macedonia shall be given in the direction of the basic social and economic rights, development of the social dialogue, the right to negotiate, conclude and implement collective agreements at all levels, the autonomy of the social partners and fundamental rights, social interests and protection of workers.

Article 4

The Government of RM, the social partners, trade unions and CCM commit themselves to undertake joint suggestions, activities, projects, ideas and guidance in favor of raising the living standard and quality of life, working conditions, occupational health and safety at work, improving the social and economic conditions of the workers, promotion of the social dialogue, improvement and creation of labor legislation in the interest of the workers and the social partners, further ratification of ILO Conventions and harmonization of the European legislation.

Article 5

The Social Progress Protocol shall focus particularly on the issue of further increase of the minimum wage in order a joint strategy to be prepared in the direction of wage increase, growth, filling the gap and eliminating poverty.

Wages must be considered as a primary instrument for combating inequality, struggle for equality and fight against social exclusion.

The Strategy for minimum wage and wage growth shall be indexed based on reliable costs of living and the relevant increase shall be related to the increase of basic goods and access to basic services.

The Strategy shall be based on the rapid increase of lower wages by completing the existing major differences between the sectors.

The social partners must have a key role in the creation of the salaries and the Strategy must ensure equal treatment of men and women and prevent any abuse associated with the gender pay gap.

The Strategy for the minimum wage shall be directed towards implementation of the principle of "equal pay for equal work" and shall promote the fight against "inequalities".

The Strategy shall comprise and promote legislation that shall define the criteria of transparency, security and autonomy of the social partners.

Article 6

The Social Progress Protocol shall focus on changes in the labor legislation which shall determine the obligation for collective bargaining between the social partners which shall be mandatory in companies that have a certain number of workers.

The labor legislation shall comprise stronger provisions that shall encourage the social partners to promote the process of collective bargaining and conclude collective agreements at all levels.

The social partners commit to undertake activities to promote and encourage signing of collective agreements in order to promote the process of negotiation and conclusion of collective agreements.

Article 7

In the interest of employment security, the Social Progress Protocol related to the promoting of the constitutional principle of equality in the availability of exercising the right to employment and equal treatment of adequate income, shall be focused on solutions under which the employment relation of workers for an indefinite period of time cannot be less than 30% of the total number of employees within the employer.

In the interest of achieving employment security and achieving basic constitutional principles, the Protocol shall promote the need to reduce the period of temporary employment from 5 to 3 i.e. 2 years respectively.

In the interest of providing greater financial security to the workers during unemployment, it is necessary to establish and improve relevant mechanisms, standards and laws that would enable the use of benefits for a longer period.

Article 8

Due to exercise of the fundamental values ​​of the social dialogue between social partners, the Social Progress Protocol shall focus on amendments in the labor legislation that shall provide an opportunity to establish a common fund in order to promote the social dialogue, drafting, signing, amendments to collective agreements and education, and to encourage and promote the process of collective bargaining and to conclude collective agreements.

The funds for the organization and operation of the fund shall be provided by the employers and workers to which a collective agreement is being applied.

The employers and employees who are not members of employers’ or workers’ organizations and are covered by the collective agreement, shall pay to the Fund (alternative: monthly) fee amounting to ______of the gross (alternative: net) salary of the employee, stopped and paid by the employer and the manner of the use of funds shall be regulated by a special Rule of Procedures.

Article 9

The Social Progress Protocol shall focus on amendments to the legislation that shall provide further exemption from personal income tax for an annual leave, jubilee awards, compensation based on the contribution of innovation, rationalization and other creative work for the employer, New Year's allowances and other fees and expenses for hotel accommodation, food and transportation for union members who participate in educational (seminars, trade schools, etc.), cultural and recreational activities organized by the unions and trade union associations.

Article 10

The social partners shall focus and make appropriate further analysis of the functioning of the pension system by reviewing additional opportunities for improvements in all aspects, including retirement conditions, taking into consideration its operational and financial stability.

The Social Progress Protocol shall promote activities in favor amending the relevant legislation to provide opportunities for pension service for certain categories of workers in the construction, transport and communications (railways), forestry and other sectors where social partners determined as necessary and indispensable.

Article 11

The Social Progress Protocol shall focus on joint activities that shall go towards proper implementation of the rules, regulations, laws and collective agreements to protect workers and ensure better conditions and activities of the relevant inspectorates and effective police, administrative and judicial system in order to ensure supervision, control and sanctioning of the illegal behavior of certain employers.

We deem that this approach defined in the Protocol shall provide one of the fundamental principles of the rule of law in this area.

Article 12

In the realization of the strategic position of the unions and other social partners, the Protocol shall focus and provide activities related to provision of investment projects, providing entry into the informal education of educational centers and other forms of development of trade unions in favor of further building and raising the capacity of trade unions in the exercise of their position in the social dialogue and social partnership in the country.

Article 13

The contracting parties shall work to implement the Protocol and express their readiness for dedicated work in order to achieve the objectives and content of the Protocol in a spirit of mutual understanding and cooperation, respecting their own and social objectives, programs and positions and commit themselves for a prompt and coordinated exchange of information referring to the manner, frequency and format of the realization of the Protocol.

Article 14

The Social Progress Protocol adopted by the bodies shall be submitted to the relevant authorities and contracting parties on the date of its adoption.

Government Employers’ Organization Federation of Trade Unions

of the Republic of Macedonia of Macedonia of Macedonia President, President, Council of CCM

Angel Dimitrov President,

Zhivko Mitrevski, PhD