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Position of BCCI after the NCTC meeting

The employers’ organization predicts a wave of demands for increases in the high- wage segments


 
In accordance with the results from the survey held among its members, which were announced earlier, the Bulgarian Chamber of Commerce and Industry didn’t support the suggestion to increase the minimum wage by the end of the year.
Regarding the discussion about the minimum wage levels for the next budget period, BCCI’s position will be stated after a discussion and thorough analysis with the members of the Chamber.
The President of the Bulgarian Chamber of Commerce and Industry reminded that burdens borne by employers are too heavy, namely:
- Social security burden remains in 60 to 40 proportion for employers;
- The increase of the minimum social security thresholds was applied by the Minister of Labour to a number of sectors, for which an agreement wasn’t achieved. 
- The cross subsidization by the business regarding electricity prices and the upcoming increase of price levels; 
- The first three days of sick leave are still paid by employers. 
According to BCCI, the burden for business is too heavy and the increase of the minimum wage may force a lot of companies to reduce staff. It may also trigger a massive entry into the informal sector. 
If the government decides to proceed with the increase of the minimum wage, tension between employers and employees may arise, because there will be new demands for wage increase in the high-wage segments, because there are attitudes for an increase of wages proportional to the increase of the minimum wage. BCCI’s survey shows that 90% of employees expect a wage increase because of the increase of the minimum wage, while 80% of employers are not inclined to consider a proportional or any other wage increase outside the minimum wage segment. 
The representatives of BCCI didn’t oppose to discussing the measures for compensation of impoverishment proposed by the trade unions, but insisted the government to come up with a set of measures to compensate the above-mentioned burdens for the business. The employers from BCCI expect for example a reduction of administrative burdens, which may really help improve the business conditions in our country.
BCCI supported the proposed compensation of the widow pensions, because it is a matter of expedience and availability of budget money.
The President of BCCI Tsvetan Simeonov expressed his satisfaction with the fact that the fear of the employers’ organization that the transfer of sums from the individual accounts to the Second Pillar of the budget of the National Social Security Institute is unconstitutional was confirmed by the Constitutional Court.
Mr. Simeonov pointed out that the pension funds must get the message that it is time for them to start performing their functions and duties, including to guarantee the collection of contributions and to start paying pensions.  

23.06.2011

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