ICFTU/ILO-ACTRAV Informal ICFTU/ILO-ACTRAV Informal Economy Programme 2004-Economy Programme 2004-

20052005

Sergejus Glovackas,Programme Co-ordinator, ICFTU CEE Unit

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Target Organisations in CEE region• Moldova:

- Consiliul Confederatiei Sindicatelor din Republica Moldova (CSRM)• The Ukraine:

- KVPU- FPU

• Bulgaria:– Confederation of Independent Trade Unions in Bulgaria (KNSB/CITUB)– Confederation of Labour (PODKREPA)

• Lithuania:– Lithuanian Trade Union Confederation (LPSK)– Lithuanian Trade Union “Solidarity” (LPS Solidarumas)

• Georgia:- Georgian Trade Union Amalgamation (GTUA)

• Kosovo:- BSPK

• Serbia:– UGS Nezavisnost

• Croatia:UATUC

At a total, there are around 10 million people occupied in informal economy in these countries.

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Why is it one of the priorities? If trade unions are not active in this area, their place will

be taken over by populistic political organisations. Precarious forms of labour and migration will grow in the

future. Trade unions should represent and protect all employees; The number of people involved in the informal economy is

equal or even higher than in the formal one:

informal economy % from formal economy

8070

54 50 4840

30 27

0

20

40

60

80

100

Kosovo Georgia Moldova Ukraine formerUSSR

Serbia Bulgaria Lithuania

country

%

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Specifics of the informal economy in CEE

• Hight level of education of employees in the IE.• Corporate internal organisation. • Part-time employment both in formal and informal

economies.• Seasonal migration.• Undefined social partner.• Association of trade unions with state institutions

(among employees).• Vague boundary between informal and illegal

economies.• Trade union structures are not adapted and do not have

experience how to work with IE.

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Tasks and Achievements

1. Raising awareness:

• Explanation of the phenomenon among TUs in the region – with support of ILO experts;

• Informational material;

• Decision to recognise it as the priority of work by the ICFTU CEE Council;

• Co-operation with NGOs – new experience;

• Youth and women’s networks involved.

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Tasks and Achievements

2. Organising:• Mini bus drivers and street vendors organised in

Moldova;• Hairdressers’ and beauticians, market salesmen,

pharmacists’, farmers’ TUs established in Lithuania;• Parking fee collectors in Bulgaria;• Sweatshops workers (sewing), homebased workers in

Bulgaria;• Workers of tourism companies in Croatia;• Street vendors , market salesmen and migrants TU in

the Ukrane

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Tasks and Achievements3. Social Dialogue:

• Wild saving of start up capital in CEE has finished ….

• ….uncivilised labour relations must come to an end.

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Tasks and Achievements3. Social Dialogue (2):

• Priority issue in tripartite bodies;• IE is a challenge uniting all social partners;• 8 national tripartite round table meetings in target countries – great

interest and high attendance;• First collective negotiations with municipalities in the transport and

others sectors;• First bilateral agreements signed with administrations of markets;• Big interest of national mass media.

This is just the beginning…

Contact:Sergejus Glovackas

ITUC/PERC Vilnius BureauJasinskio 9

Vilnius, Lithuania

E-mail: icftu.vilnius@takas.ltTel.: +370 699 05263Fax: +370 52124788

And We should follow...

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Recommendations1. This sphere of activities should be acknowledges as the target on the top

political level of the national centres preparing together the plan of concrete complex actions, methodology and long-term strategy including structural trade union changes. To classify and analyze problems and needs of the IE workers.

2. The issue of informal economy should be included into the agendas of tripartite and bipartite social dialogue, better on the initiative of trade unions.

3. To organize the employees it is necessary selectively in the spheres where it is possible really to represent their interests and to defend them if it is not causing problems with the traditional members.

4. To stimulate IE employees to unite in their specific organizations that would be trade union partners and allies.

5. Formalization and legalization of the IE employees. It is necessary to try to conduct via informational educational campaign programmes at the same time propagating trade unions in the society. To collaborate closely with mass media as the experience shows that these activities are interesting for the mass media representatives and they are willing to cover it. Public money can be used for such activities.

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Recommendations (2)6. Migrant workers should be dealt with as a separate phenomenon. Special

programme and networks needed.7. It would be useful to apply positive experience and achievements from

some countries (i.e. Moldova) in CEE. The CEE trade unions should closer co-operate and exchange experience with other countries in other regions (Africa, Asia, Latin America) and international IE employees’ networks.

To use effectively the ILO recommendations.8. It is necessary to ”break the ice’ raising awareness among trade union on

this issue, to stimulate sectorial solidarity. It is necessary to delegate or to employ a person responsible for this topic, having possibility to have “hot line” phone for the IE employees.

9. The ICFTU CEE Unit together with the ILO should continue the work coordinating activities and creating effective informational educational network.

10. It is necessary to pay as much attention as possible for work with women in IE (the CEE women network Rovini school was dedicated to it in 2003). Here the collaboration is needed with the public women’s organizations and international networks (for ex., SEWA), the state institutions on equal opportunities control.