January Annual Review 2012 on Labour Relations and Social Dialogue in South East Europe: Albania. By Nikoll Doçi*

Transcription

1 January 2013 Annual Review 2012 n Labur Relatins and Scial Dialgue in Suth East Eurpe: Albania By Nikll Dçi* Cntent Summary Sci-ecnmic develpments Gvernmental plicies and legislatin Industrial relatins Tripartite scial dialgue Frecasts Annex - Infrmatin abut: Cllective bargaining, scial dialgue, scial security, educatin & vcatinal training, emplyment, wages Trade unins and emplyer rganizatins * Nikll Dçi, PhD, Faculty f Scial Sciences, University f Tirana Friedrich-Ebert-Stiftung Reginal Prject fr Labur Relatins and Scial Dialgue in Suth East Eurpe Tadeusa Kscuska 8/ Belgrade, Serbia fes@fesse.de Internet: The text is available nline: The views expressed in this publicatin are nt necessarily thse f the Friedrich-Ebert- Stiftung r f the rganizatin fr which the authr wrks. 1. Summary Albania achieved sci-ecnmic prgress in Its ecnmy has grwn even during this perid, althugh the grwth rate was lwer in cmparisn t the previus years. The bjectives f ecnmic grwth reached this year were nt the nes envisaged, because 2012 turned ut t be ne f the mst difficult years, as is the case with the ther cuntries in the regin. There has been an increase in wages and pensins as well.

2 Quick ecnmic develpment and EU integratins are amngst the main pririties f the gvernment prgramme. The main cuntry plicies in the last years led t a liberalized ecnmic framewrk and imprved cnditins fr business develpment and fr attracting freign investments. Albania is affected by the glbal ecnmic crisis in many ways, such as: lwering f the GDP s ecnmic grwth, significant reductin f remittances, high inflatin rate, mre unfavurable lans, etc. Hwever, cmpared t the ther cuntries in the regin, Albania has suffered less negative impacts f the crisis. Sme f the factrs that have s far prevented negative impacts f the crisis in Albania are: a cnslidated banking system, grwth f the exprt vlume, grwth f direct freign investments, grwth f the number f active businesses, facilitatin f the business fiscal barriers, etc. The Natinal Labur Cuncil, cllective bargaining and ther levels f scial dialgue have imprved. Unins have increased their activity in the prtectin f emplyees and in cllective bargaining, but have nt managed t vercme the rift between them. Membership in the private sectr is small. 2. Sci-ecnmic develpments Albania has marked an increase f its Grss Dmestic Prduct frm ne year t the ther. Hence, in 2010, grwth was reprted by 3.8 %, whereas in 2011 it reached nly 3.1 %. Fr the nine mnths perid f 2012 (January - September) 2012 the GDP rse by 1.5%. The GDP grwth was psitive even in furth quarter f 2012 hwever, the final GDP grwth rate fr 2012 shall be clarified in In 2012, Albania received 740 millin in direct freign investments, a bit less than in The balance sheet fr the first half f 2012 ended up in general surplus f 10.7 millin. The budgetary situatin fr the perid f January July 2012 marked a general deficit f abut Lek 21 billin; the verall incmes cllected during the perid f January July 2012 reached abut Lek 190 billin, r abut 94.6 percent f the plan fr that perid; ttal expenditure during the same perid reached nearly Lek 211 billin, r abut 99.7 percent f planned expenditures fr the same perid. In the perid f imprts and exprts surged thrugh a gradual grwth. Imprts are cvered by exprts in the amunt f 37 %, while this index was 34.5% fr the same perid f percent f freign trade is with EU-cuntries. The main trading partners f Albania cntinue t be Italy and Greece. Trade with Italy makes up 42.1 percent f verall trade, while trade with Greece is estimated at 7.5 percent f verall trade realized by Albania. Public debt in the furth quarter f 2012 reached its highest limits f 59.8 percent f the general natinal prductin, nly 0.2 per cent far frm the current maximum legal threshld f 60%. The data shw that figures are still grwing. The debt structure has changed and external debt has increased, while the internal shrt-term debt has been reduced. The prgramme fr privatizatin f the majr sectrs includes mst f assets f Albania s ecnmy, in the sectrs f il and gas, hydr-energy system, telecmmunicatin, transprt infrastructure, mines, water resurces and f water distributin surces, etc. The privatizatin prcess is still nging. During the last years, the annual average inflatin rate was within the limits accepted by the Bank f Albania, which is in the range f 2-4%. In August 2012 an increasing trend cntinued with 2.8%, but it always remained within the envisaged limits. Average mnthly salary f an emplyee has increased frm ne year t the ther. Fr the private sectr it was 45,766 in Fr the state sectr it was Lek 48,800 in Minimum salary has increased by Lek 21,000 (150 ) in 2012 cmpared t Lek 18,000 2

3 in The average grwth frm was apprximately Lek 1,000 (8 ) every year. Emplyment rate has grwn since 2009 nwards. Changes in emplyment are varius in the private sectr, while emplyment in the public sectr is almst unchangeable. Unemplyment in the last years decreased, t 13.3% in Unemplyment is mre predminant amng wmen and it amunts t 14.6% than amng man (12.1 %). The structure f thse registered as unemplyed is nt favurable because f the fact that 63.6 % f them are lng-term unemplyed. There are n clear pverty limit data in Albania. Abut 9 percent f husehlds at the cuntry level get an ecnmic assistance. The amunt f full assistance, allcated frm the state budget, is set accrding t the family structure. The full ecnmic assistance, despite the number f husehld members and its cmpsitin cannt be higher than Lek 7,500 (55 ) per mnth fr ne husehld. Accrding t the last bservatin f INSTAT s living standard, Albania has a Gini cefficient f 34.5 %. 3. Gvernmental plicies and legislatin The cuntry is led by the calitin cmpsed f the Demcratic Party (DP) with 68 MPs, the Scialist Mvement fr Integratin (LSI) 4 MPs, the Party fr Justice, Integrity and Unity (PDIU) 2 MPs, and the Republican Party (PR) 1 MP. The LSI belngs t the left wing spectrum, nnetheless is part f the gvernment calitin. The right-wing calitin with LSI is in the last year f its secnd mandate, while the upcming parliamentary electins are set fr 23 June The Scialist Party has 65 MPs and is in ppsitin fr the last 8 years tgether with ther left-wing parties. Main refrms undertaken by the Gvernment are mainly related t the legal, ecnmic, health, educatin, scial initiatives, seen as imprtant in Albania s integratin prcess twards the EU. Prgrams and fiscal plicies f pririty in the state budget are related t the supprt f business in the situatin f crisis, the maintenance f a high public investment nrm, in rder t ensure a sustainable develpment, t imprve public services, and t imprve rural infrastructure. Effrts have cntinued regarding apprximatin f Albania s legislatin t the acquis f the EU. Wrk is dne n amending and supplementing the Law On Occupatinal Health and Safety and the Law On Inspectins in the Republic f Albania, with several by-laws. There have als been psitive develpments related t the health care dmain, including the health care and safety issues, elngating the list f reimbursed medicaments, extensin f scial grups t be cvered by the health insurance scheme, including such as the retired, children, the disabled, veterans, ptential victims f trafficking, etc. During 2012 a lt had been dne t amend the labur law. The mst imprtant amendments have t deal with issues f discriminatin, written cntracts, cnsultatins with the emplyees, the risk assessment dcument, sexual harassments, expsure t nise, payment f wrking days during hlidays, vertime, annual leave, treatment f breast-feeding mthers, pregnant wmen, representatin f the emplyer rganizatins, strikes, scial dialgue, days ff, etc. Althugh the GDP grwth has been relatively high, there have been just few new jbs, especially in the private sectr. The Gvernment has taken measures t establish a psitive climate fr business develpment and prmtin f investments, t raise cmpetitiveness f the small and medium-sized enterprises at the reginal and glbal market thrugh develpment f infrmatin technlgy, reductin f administrative barriers and establishment f business facilities. There were 63 emplyment encuragement prgrammes that were applied in 2012 alne, that received state funding f abut Lek 3

4 87,595,710 emplying 901 emplyees, mainly yung peple. Emplyment f yung peple is still a challenge. Accrding t the Internatinal Labur Organizatin (ILO) the yung peple between make up fr 21.6% f the unemplyed. In 2012 trade unins played a psitive rle regarding suspensin f price increase in particular fr energy, by clsely cperating with emplyers in rder that the shrtage f jbs due t the crisis is met with minimal cnsequences, emplyees benefited a better prtectin, especially fr ccupatinal health and safety in sectrs f high risk, where numbers f accidents were higher, such as in mines, etc. Trade unins were part f wrking grups in charge f imprtant amendments in legislatin, especially in the wrking grup dealing with amendments f the Labur Law. Bth, the Natinal Labur Cuncil and the Ministry f Labur, Scial Affairs and Equal Opprtunities have taken accunt f the cntributin made by trade unins. 4. Industrial relatins Albania applies three main levels f cllective bargaining: cllective bargaining between TU Federatins and Ministries; cllective bargaining between TU Federatins and public institutins and with crpratins r enterprises. The cllective bargaining between trade unin federatins and ministries is mainly cnducted between federatins whse membership is invlved with the public sectr, r frmer state enterprises which are nw privatized. There are 83 trade unins established and perating in Albania. Sme f them perate under the umbrella f the tw cnfederatins, whereas the rest perate independently. The tw biggest and mst influential cnfederatins are: Trade Unin Cnfederatin f Albania (KSSH), and the Unin f Independent Trade Unins f Albania (BSPSH), which are represented with 3 members in the Natinal Labur Cuncil. The tw biggest cnfederatins represent abut 90 percent f the members f trade unins in Albania. KSSH and BSPSH are represented in 12 regins in Albania and are mainly peratinal in the sectr f educatin and science, the administratin staff, the retired, industry, agriculture, fd industry, public health, transprtatin, il, cnstructin, textiles, craftsmanship, trade, metallurgy and chemistry, telecm, etc. A characteristic feature is that trade unins have grwn in the public sectr and in private enterprises (frmer state enterprises), whereas representatin is lwer in the pure private sectr. In 2012 there has been n change in the internal rganizatin f trade unins. The federatins that left KSSH (educatin, cnstructin, health) have carried ut their activity withut cperating with KSSH r with its federatins. The 6 th Cngress f Independent Trade Unin f Miners f Albania (which is a key federatin f BSPSH with a rich activity since its fundatin in 1991) held its prceedings n 7-8 September The Cngress was attended by delegates frm all mine regins, cement and heavy industry areas f Albania, delegatins frm sister trade unins, leaders f internatinal trade unins, such as representatives f IndustriALL-Glbal Unin. In June 2012 the Ministry f Ecnmy and Trade f Ksv issued a decisin n impsing a 35% tax fr cement. Given that this decisin had highly negative impact n the wrkers f cement factries in Albania, the Unin f Independent Trade Unins f Albania (BSPSH) reacted immediately at the situatin, prtecting the interests f ver 1000 emplyees f three cement factries, rejecting such decisin and addressing the highest representatives f the Gvernments f Ksv and Albania in rder t abrgate such decisin. Given that the decisin was nt abrgated in July 2012, BSPSH rganized a big prtest f wrkers f the cement factries and f different enterprises in Tirana and f trade-uninists frm different regins f the cuntry. Mre than 2000 citizens tk part in the prtest. There was high slidarity between the trade unins f Albania, Ksv and f ther trade unins frm ther cuntries. Fllwing the prtest, 4

5 dialgue and discussin between the parties started and an acceptable slutin fr the parties theref was reached. The Cnfederatin f Trade Unins f Albania (KSSH) rganized a big prtest n 1 May KSSH has been hlding manifestatins and such prtests fr ver a decade nw. Main requests were related t emplyment, ccupatinal safety, scial justice, refrms in educatin, health, welfare, refrms in pensins, against aggravatin f the ecnmic situatin, against plitical apprach and bstacles f cuntry s integratin in the EU, against crruptin, etc. The Trade Unin Federatin f Plice Service f Albania (a KSSH member), cmpsed f plice fficers, prisn guards, staff f municipality, fire fighters and private plice, has als been rather active in It has submitted the staff requests t the high ministry bdies, it raised the bar fr cllective bargaining and rganized prtests. The Trade Unin Federatin f Industry f Albania (FSPI), a member f KSSH, has rganized several trade unin activities in Amngst the mst imprtant are prtests f trade unins f metallurgy fr ccupatinal health and safety, the prtest f energy trade unin, CEZ (the energy distributin peratr), fr dismissals, the prtest f trade unin f the chrmium mines, wrk cnditins, salary, etc. This federatin has realized eight cllective bargaining agreements belnging t the energy sectr (public and private), metal mineral extractin and prcessing industry, il and gas sectr, the metal-mechanical light industry sectr, the prductin and prcessing industry, infrmatin technlgy, etc. Regarding emplyers, Albania has several emplyer rganizatins, such as the Cuncil f Emplyers Organizatins f Albania (KOPSH), Albanian Cnfindustria, the Cnfederatin f Emplyers Organizatins (KOP), the Natinal Chamber f Fasn 1 and She Prducers, the Albanian Agr-business Cuncil, the Assciatin f Cnstructrs f Albania, the Unin f Investrs and f the Industrialists f Albania, which are the main legally recgnized partners and which are als represented at the Natinal Labur Cuncil (KKP) being highly active while discussing varius business-related issues at the Cuncil and in ther cmmissins. The emplyers rganizatins are weaker frm the rganizatinal and territrial extensin viewpint than trade unins. Despite these weaknesses, they have managed t influence the Natinal Labur Cuncil in raising and finding a slutin t sme f their prblems. Further effrts have been made during the last year by the emplyers rganizatins and varius business cmpanies t jin under an umbrella rganizatin, Business Albania, established in 2011 with the aim f bsting their rle and influencing the scial and ecnmic life f the cuntry. 5. Tripartite scial dialgue During 2012 the activity f the Natinal Labur Cuncil imprved significantly. The Cuncil cnvened regularly and dealt with prblems f special interest, in particular fr trade unins and emplyers and tried t find a slutin t them. It is wrth mentining the treatment f scial dialgue in the field f educatin in trade unin cuncils in schls, which the Federatin f Educatin Trade Unins sught t be discussed. Als, the Energy Regulatry Entity (ERE) infrmed the Natinal Labur Cuncil abut cntracts f CEZ with cnsumers and n preparatins fr pening prcedures fr the price f electricity. The representatives f BSPSH and f KSSH asked CEZ and the Gvernment t take int accunt the tripartite pact and t apply the clause f the agreement referring t nn-increase f the price f electricity. The Bard f ERE Cmmissiners, taking int accunt the arguments f trade unins and the emplyers rganizatins kept the current price f electricity. Other issues that needed cnsultatin were the gvernment emplyment plicies as well as its measures t alleviate pverty and 5 1 The term fasn industry is used in Albania t refer t the inward prcessing industries f textile, garments and ftwear manufacturing.

6 the ecnmic/financial crisis. In this dialgue the trade unins asked the Ministry f Finance t recnsider the pssibility f lifting incme tax fr salaries up t Lek 21,000, which is the minimum salary at the natinal level. During 2012 the Cuncil als fcused n the activities f the Natinal Emplyment Service, f the State Labur Inspectrate and the State Scial Service and apprved their bjectives fr the future. Institutinalizatin f cperatin at the grass-rt and enterprise level, between legal representatives f trade unins, emplyers and state structures shall lead t imprvement f scial dialgue and prtectin f emplyees, nt in cnflicting situatins, as frequently is the case in activities r cnfrntatins f scial partners at the grassrts level, r even as high as at the Natinal Labur Cuncil discussins. This is als ne f the EU s requests fr Albania s integratin effrts. 6. Frecasts The GDP is expected t grw even in 2013, but the negative impacts f the glbal ecnmic crisis will prbably cntinue t have negative influence, slwing the rates and trends f last years. Inflatin is expected t grw, hwever it is expected t be at the level f 3-4% as frecasted by the Bank f Albania, althugh ther surces speak f a higher figure. In additin, public investments are freseen t reduce, in particular in lcal gvernment units, debts are expected t increase at the level f 60% f the GDP. Unemplyment is expected t remain at the same level. In 2013, as the Gvernment prmised, salaries and pensins are expected t grw. The average increase is expected t be 4-5%. Fr 2013 ther legal imprvements are envisaged in rder t ensure a better alignment with the acquis f the EU, especially in the area f legislatin related t public administratin, parliamentary electins and activities f the parliament, apprval f amendments f the Labur Law in the Parliament, etc. Further develpments are als expected in 2013 in scial dialgue and relatins between the emplyees and the emplyers in the private sectr. Emplyers rganizatins and trade unin activities are expected t underg psitive develpments as well. 6 Annex f data Cllective bargaining system Cllective bargaining at the natinal level between a trade unin and ministries is mainly reached with Educatin and Industry federatins. Example f such bargaining is the ne with the Ministry f Educatin and Science and Federatins f Educatin f KSSH and BSPSH. The cllective bargaining f Industry Federatins cvers frmer state enterprises that are nw privatized and are active in energy sectr. The bargaining f Health Federatin with the Public Health Directrate cvers all the wrkers in the health sectr. Branch- cllective agreements mainly ccur at the natinal level, r at the reginal level, between the relevant branch trade unins and the emplyers. They cver minimum salary, remuneratin in case f dismissal, vertime wrk, term f cntract and the free activity f trade unins, and they are mstly dealing with general level, which invlves all the relevant enterprises. Cllective bargaining at the enterprise level make up fr the biggest number f cllective bargaining agreements and is the same as bargaining at the branch level, but suitable t a relevant enterprise. In this case the partners in negtiatins are the emplyer and the enterprise trade-unins. They are mre frequent in the garment sectr, which is highly develped in Albania cmpared t ther sectrs. Hwever, they are remarkably present even in the cnstructin and ther sectrs. In sme cases, cllective bargaining is related t cpera-

7 tin f trade-unin federatins f the tw biggest cnfederatins in the cuntry, such as KSSH and BSPSH, as is the case with the Federatins f Educatin, industry trade unins, cnstructin trade unins, etc. System f tripartite scial dialgue The highest cperatin bdy fr scial partners is the Natinal Labur Cuncil (KKP), which is cmpsed f 27 members: 7 cming frm the Gvernment, 10 frm trade unin rganizatins, and 10 frm emplyers rganizatins. The Natinal Labur Cuncil was established in 1997 and its wrk has cnslidated during the years. Indicatrs f trade unin perfrmance are the paying membership, cllective bargaining, legal recgnitin, membership in Cnfederatins in the cuntry, membership in internatinal bdies, etc. Representatin in the Natinal Labur Cuncil and ther bdies is arranged accrding t the same scheme. The tw mst pwerful trade unin rganizatins are: the BSPSH and the KSSH. The Natinal Labur Cuncil shall be refrmed in 2013 as its (three year) mandate shall cme t an end. The appraisal indicatrs, sanctined als in the Labur Law, imprved in The new Cuncil is expected t grant representatin t the emplyers and emplyees rganizatins easier. Jint cnsultatins f the emplyers and emplyees rganizatins at all levels are rganized fr setting specific indicatrs f their representatin. Cperatin between different partners, but in particular cperatin and crdinatin amng trade unin cnfederatins themselves, remains indispensable. Scial security systems Cverage f the labur frce with insurance systems (scial security, health insurance, pensin, unemplyment insurance) is relatively lw. Out f 1,076,421 wrkers, 72% are insured. Emplyees in the public sectr are prvided calculated cntributins frm the state budget funds. Emplyees in the private sectr (nn-agricultural) wh are registered pay the insurance. This des nt cver thse emplyees in the infrmal ecnmy that d nt pay insurance. Only 53% f emplyees in the Agricultural sectr have paid insurance. Accrding t the data f Scial Security Institute the categry f self insured cvers 80,792 persns. They mainly belng t the shrt-term r lng-term unemplyed, wh pay vluntary cntributins t the insurance system. The abve data is nt divided int separate categries fr health, pensin and unemplyment. Thse wh pay cntributins t scial security pay fr health insurance as well, and until recent years, with the nset f health care refrm they are paid tgether. Cverage f labur frce by scial insurance Name/sectr Labur frce (In number and percentage) Scial insurances Number % State sectr 165, , Private nn-agricultural sectr 261, , Private agricultural sectr 507, , Unemplyment 143,421 80, Ttal 1,076, , Surce: Scial Security Institute, The administrative data fr 2012 Statistics frm Scial Insurance f 2011 Educatin and vcatinal training Albania spends less n educatin in terms f its GDP share than the ther cuntries in the regin (3.5% f the GDP in 2009, 3.1 in 2010, 2.9 in 2011 and 2.8 in 2012) cm- 7

8 pared t 4.6% which is the average share f GDP spent n educatin in Eastern Eurpe. Effrts are being made t enhance the quality f educatin in Albania in its endeavurs t be integrated in the EU. High number f private higher educatin institutins, frm the perspective f the number f ppulatin and their educatin quality, remains a serius cncern. Accrding t the data f the Natinal Accreditatin Agency, Albania has 53 nn-public higher institutins r universities, f which nly 14 are accredited, while 39 keep wrking withut accreditatin. Taking int accunt the high unemplyment rate f yung peple, especially f the nes that have a degree in high educatin, and the labur market demands, which is mainly interested in technicians and specialists, vcatinal educatin is prclaimed as ne f the pririties f the Gvernment in the field f educatin. Actins have been taken that have an impact n qualitative imprvements f vcatinal educatin and training related t structure, cntent, and apprach in line with the needs f labur market. Vcatinal educatin is still facing a number f difficulties related t students, parents and the labur market perceptin f this type f educatin the lw number f students enrlled fr this type f educatin, the lack f qualitative experts in such schls, a weak cmmitment f scial partners, etc. Accrding t data f the Vcatinal Educatin and Training Agency, students f the vcatinal schls make up fr abut 20% f students enrlled in the high educatin. There are 40 such schls, lcated mainly in cities, and nly 3 f them fcusing n agriculture and agr-business are lcated in rural areas. Emplyment rate (In thusands) Wrking frce balance Wrking frce ttal 1,041 1,059 1,070 1,076 Men Wmen Emplyed ttal a) state sectr b) private nn-agricultural sectr c) private agricultural sectr Men Wmen Nte: annual average Surce: INSTAT, Statistical bulletin 2012 Unemplyment rate (In thusands and %) Name Registered unemplyed (number ) 142, , , ,421 Unemplyed getting an unemplyment payment 9,010 9,265 8,537 9,569 Lng-term unemplyed 93,369 89,269 88,768 91,226 Registered unemplyed ( in % ) Men Wmen Unemplyed getting an unemplyment 6.3 payment Lng-term unemplyed Nte: Annual average; Surce: INSTAT, Statistical bulletin 2012, Ministry f Labur, Scial Affairs and Equal Opprtunities 8 2 The lng-term unemplyed are the nes registered as unemplyed fr mre than ne year; Percentage f the lngterm unemplyed versus registered unemplyed.

9 Average mnthly salaries ( in ) Salary accrding t sectrs Industry Cnstructin Transprt and telecmmunicatin Trade Services Ttal (average) Surce: Enterprise Structural Survey Administrative data Gender pay gap In the labur market wmen d nt get same salaries and pprtunities as men d. Only 20% f wmen in the public administratin hld leading psitins. The salary system is built in such a way that the higher smene s jb is in the hierarchy, the higher his/her salary is, therefre, given that wmen have few leading psitins, they get lwer salaries. In general, salaries f wmen are 25 % lwer than salaries f men. Data frm the State Labur Inspectrate cllected in the inspectins carried ut in 2012 in the private sectr indicate that payment f cntributins is calculated ver the minimum salary fr 58% f the wmen emplyees, whereas fr men 54 % f men have cntributins calculated ver the minimum salary. Wmen are paid less than men. Causes f this differentiatin in salary and emplyment between men and wmen are varius. There is a high unemplyment rate amng wmen. INSTAT data n emplyment f wmen in the age grup f shw that nly 15 percent f unemplyed wmen seek fr a jb, whereas 85% f them are inactive. Many factrs have an impact n such situatin, including lack f facilities f care fr their children, insufficient resurces and the limited pprtunities in the labur market. Encuragement f a wide range in the labur market in Albania wuld prvide wmen with a greater cntrl f their persnal and scial life and wuld increase participatin in the labur market, their impact n decisin-making and increase f incmes. Mnthly minimum wage Average mnthly salary in the state sectr, the minimum fficial salary, the mnthly unemplyment salary, the full ecnmic assistance fr husehlds ( in ) Mnthly incmes Minimum fficial wage Mnthly unemplyment wage Full ecnmic assistance fr husehlds Average mnthly wage Surce: INSTAT, Statistical Bulletin Administrative data. Actual weekly wrking hurs The daily and weekly wrking hurs are sanctined by law. Accrding t Article 78 f the Labur Law duratin f the nrmal wrk time is nt mre than eight hurs per day. Article 83 prvides that the duratin f the nrmal weekly wrk hurs is nt mre than frty hurs per week, as set in a Decisin f the Cuncil f Ministers and by the cllective bargaining. Data frm the State Labur Inspectrate frm inspectin carried ut during 2012 in the private sectr shw that fr 87.5% f the ttal number f emplyees, the duratin f the nrmal wrking day is eight hurs, fr 7.2% f the ttal number f emplyees the daily wrking time ges beynd 8 hurs. Fr 81.3% f the ttal f em- 9

10 plyees, the weekly wrking time is ver 40 hurs, fr 15.8% the weekly wrking time is hurs, whereas fr 0.14% f the ttal number f emplyees, the weekly wrking time is hurs, fr 0.2% f the ttal f emplyees the weekly wrking time is ver 50 hurs. Nrmal wrk /atypical wrk Official data f the State Labur Inspectrate (SLI), emerging frm the cntrls cnducted in 2012 in the private sectr, shw that 241 inspected private entities have 790 atypical emplyees. Data fr this categry f emplyees are limited, but this type f emplyment is particularly frequent in the private sectr, especially in the service sectr, as huse helpers, fr child care, as cleaning persnnel, etc. These are mainly wmen s jbs used fr lng-term perids r as part-time jbs. Instead, men wrk in different sectrs, such as in the cnstructin sectr. My pinin is that atypical wrk makes up fr 15 percent f the verall emplyment, while the number f wmen emplyed in atypical wrk is duble cmpared t the number f men. Number f emplyers and atypical wrk, inspectins f SLI (in number and percentage) Wrk frce balance Nrmal wrk Inspectins (SLI) N. Subjects Atypical wrk % State sectr 165, Private nn-agricultural sectr 261,000 15, Ttal 426,000 16, Surce: INSTAT, Statistical bulletin 2012 State Labur Inspectrate (SLI), statistics data 2012 Migratin 3 In 2012 it is estimated that there are abut 1.4 millin Albanian migrants, r 30% f cuntry s ppulatin. Main cuntries f destinatin are: Greece 700,000, Italy 500,000, the USA 100,000, the United Kingdm 50,000, Germany 15,000, Canada 10,000, Belgium 5,000, Turkey 5,000, Austria 2,000, France 2,000, Switzerland 1,500, The Netherlands 1,000, etc. Given that migratin was chatic, clandestine and unregistered, figures n this phenmenn are nt very accurate. Regarding the migratin causes, mst f migrants have migrated because f pverty r unemplyment (75 %), whereas the ther part (25 %) have migrated due t scial, cultural, life security issues (bld feud is a special cncept in Albania), etc. Accrding t the recent publicatins f the Bank f Albania in 2012 the Albanian migrants have remitted less mney in their cuntry than in Migrants remittances in 2012 were lwer than in That said, reductin f remittances is still nt cnsiderable. We als have t bear in mind that the neighburing cuntry f Greece, where mst f migrants reside, is suffering a harsh ecnmic crisis and mst f Albanian migrants are getting back hme. Als, Italy is nt in a psitive ecnmic situatin either. In such circumstances, ne can easily cme t the cnclusin that the current remittance indicatr is just a reflectin f the cnsequences f the glbal ecnmic crisis. Such rati is als reflected in the prtin f remittances in the cuntry s GDP. Therefre, in 2011 remittances made up fr 7.4% f the GDP, whereas in 2012 remittances have lwered by 7.2% f the GDP. In cnclusin, it can be said that migrant remittances are reducing, althugh nt cnsiderably, as initially thught, because f the glbal financial crisis Accrding t the Civil Registry Office, Albania has 4.2 millin inhabitants whereas accrding t the latest census, the utcmes f which were published in 2012, Albania has a ppulatin f 2.8 millin inhabitants. The difference f 1.4 millin inhabitants represents the number f Albanian peple migrating.

11 11 HDI Human Develpment Index (HDI) Surce: Gini-cefficient Albania has a Gini-cefficient f 34.5 %. These data fr Albania refer t disparity f cnsumptin, which has gt a tendency f having a fairer distributin than incmes. Cllective agreement cverage Pursuant t fficial administrative data f the Ministry f Labur, Scial Affairs and Equal Opprtunities, there are currently 8 cllective bargaining agreements between the Federatins and the respective ministries, which cver ver 74,356 emplyees; 11 cllective bargaining agreements between Federatins and public institutins that cver 62,295 emplyees; 10 cllective bargaining agreements with big crpratins cvering abut 10,000 emplyees as well as 463 cllective bargaining agreements at the enterprise level in bth sectrs. Cllective agreement cverage accrding t sectrs (In numbers and %) Emplyees Cllective agreement cverage 2012 Cntracts Emplyees % State sectr 165, , Private nn-agricultural sectr 261, , Private agricultural sectr 507, ,000 2 Ttal 933, , Surce: INSTAT, Statistical bulletin 2012 MLSAEO, Administrative data. Trade Unin In the state/public sectr, abut 70% f the emplyees are cvered by cllective bargaining, mst belnging t educatin and health sectr. In the nn-agricultural private sectr, which emplyed 262,000 emplyees in 2012, accrding t the data f the abve-given table, nly 25% are cvered by cllective bargaining. In the agricultural private sectr, which, accrding t the data in 2012 emplyed a ttal f 507,000 persns, the number f agreements is very small. Accrding t the ILO Office fr Albania, the summary index f the emplyment prtective legislatin 4 (LPM) including cntracts (regular cntracts, temprary cntracts, cllective dismissals) fr Albania is 2.1, Serbia 2.2, Mntenegr 2.2, Bsnia and Herzegvina 2.6, Italy 2.6, Cratia 2.7, Greece 3, Frmer Yugslav Republic f Macednia 3.1. Onging imprtant cllective bargaining agreements Implementatin f agreements signed in previus years with partners, namely emplyers and emplyees in public and private sectrs, cntinued in In additin, there are als psitive develpments regarding the new cllective bargaining agreement in cnstructin, health, educatin, industry and ther dmains. There is an increase f cllective bargaining at the enterprise level cmpared t This means that there 4 The LEP index measures the level f seriusness f the legislatin fr prtecting emplyment. The index ges frm 0 (very liberal) t 6 (very cercive).

12 have been mre agreements, leading t increase f the cverage f emplyees with cllective bargaining agreements fr abut 5-10% mre than in The Trade Unin Federatin f the Industry Emplyees f Albania, a KSSH member, in 2012 reached 8 cllective bargaining agreements belnging t energy (public and private), metal mineral extractin and prcessing industry, il and gas sectr, light metalmechanical industry sectr, prductin and prcessing industry, infrmatin technlgy, etc. The Independent Trade Unin f Cnstructin and Public Wrks Emplyees f Albania (BSPSH) has reached several agreements with entities in the cnstructin sectr, in public wrks, cleaning and maintenance sectrs, etc. The Trade Unin Federatin f the Cnstructin, Paper, Wd and Public Infrastructure Emplyees f Albania (FSNLDIP) has cntinued its wrk n signing 1 st level act agreements, cllective bargaining in enterprises and private entities dealing with cnstructin, service and public infrastructure sectrs. It has signed an act-agreement with the Assciatin f Public Services f Albania, a BSPSH member, and has cntinued with signing cntracts with sme representatives f fasn industries. The Trade Unins Federatin f Educatin, Training and Science Emplyees f Albania (a KSSH member) has cntinued its extensin t the private sectr, signed cntracts with sme pre-university educatin institutins (public and private), with sme cmpulsry 9-year educatin (public and private), with high general and vcatinal educatin, and with sme higher educatin institutins. Despite imprvements and grwing f number f cntracts, increase f the number f emplyees cvered by cntracts, trade unin fragmentatin and in particular the existence f several trade unins and federatins fr ne prfessin, frequently even in ne district r enterprise remains prblematic. Trade unin density The analysis n the labur market and the membership in trade unins in Albania shws that ut f 165,000 emplyed in the state sectr, accrding t the trade unin data abut 100,000 are trade unin members. Half f them belng t the educatin and health sectr. Table f the number f the emplyed and f the membership in trade unins (in number and %) Name Emplyed Supprters % Quta % State sectr 165, , , Nn-agricultural private sectr 262,000 90, , Private agricultural sectr 507,000 10, ,000 1 Ttal: 933, , ,000 6 Surce: INSTAT. Trade unins; data prcessing by authr. Out f 262,000 peple emplyed in nn-agricultural sectr, abut 90,000 are members f trade unins (accrding t unins data, including the supprters), r abut 34%. Often, trade unins reprt their membership based n their supprters (virtual members), and nt n paying members. The number f the emplyees frm the private sectr wh are members f trade unins is very lw (nly 6%). This als remains the main challenge fr the future f trade unins f Albania. Emplyers rganizatins density Albania has a ttal f mre than 106,503 active enterprises (ut f which 96,429 r 90.5% emply 1-4 peple, 4,952 r 4.6% emply 5-9 peple, 4,164 r 3.9% emply10-49 peple, and 958 r 0.8% emply ver 50 peple). The enterprises are small, and when it cmes t numbers, mst f them are nt a member f emplyers rganizatins, but when it cmes t their relevance in the natinal incmes r their size, mst f 12

13 businesses are members f Business Albania 5, r f ther emplyers rganizatins. The emplyers rganizatins are getting cnslidated. In there were abut 30 emplyers rganizatins. The majrity f them, ver 25 emplyers rganizatins and assciatins have jined thus frming a bigger rganizatin f the emplyers in Albania, called Business Albania. Wrkplace representatin Wrkers representatin at the wrk place is dne by trade unins, althugh the legislatin allws fr selected representatives f the emplyees if there are n members f rganized trade unins. The trade unin representatives at the wrk place play an imprtant rle in the negtiatins and in cllective bargaining with the emplyees. Trade unin rganizatins at the wrk place are the main representative bdies fr representing emplyees. There are nt yet ther bdies representing the emplyees, except fr the prcedure in implementatin f Law N.10237, f On Occupatinal Health and Safety, allwing fr establishment f the Occupatinal Health and Safety Cuncils with representatives f emplyees. The Decisin f the Cuncil f Ministers N. 108 f n the skills needed frm the emplyees dealing with ccupatinal health and safety is under implementatin. Trade unins In 2012 trade unins f Albania have undergne n significant change. 83 trade unins are recgnized in Albania. Mst f them (ver 90%) are part f cnfederatins, whereas the remaining part, althugh high in number, represent less than 10% f the trade unin membership in Albania. 13 Natinal Trade Unin Cnfederatins Table f membership in the Cnfederatin f trade unins 6 In number N. Natinal trade-unin cnfederatin Individual membership Internatinal membership 1 Cnfederatin f Trade Unins f Albania 105,000 ITUC Knfederata e Sindikatave të Shqipërisë 2 Unin f Independent Trade Unins f Albania 85,000 ITUC Bashkimi i Sindikatave të Pavarura të Shqipërisë 3 Unin f Trade Unins f Albania* - - Bashkimi i Sindikatave të Shqipërisë 4 Unin f Independent Trade Unins* - - Unini i Sindikatave të Pavarura 5 Unin f Autnmus Trade Unins* - - Bashkimi i Sindikatave Autnme 6 The Cnfederatin f Emplyees f Albania Knfderata e Punnjesve të Shqipërisë - - Surce: ITUC. Reprt fr the WTO General Cuncil Review f the Trade Plicies f Albania; Established in 2011 due t a need t represent the interests f emplyee rganizatins, t build their capacities and t prmte sci-ecnmic plicies, and t supprt and develp free entrepreneurship and the labr market. 6 Membership and activity f trade unins called cnfederatins: Unin f Trade Unins f Albania, Unin f Independent Trade Unins, and Unin f Autnmus Trade Unin are lw; there is n fficial data abut them.

14 The Trade Unin Cnfederatin f Albania and the Unin f Trade Unins f Albania represent ver 90 % f the verall number f the trade unin membership in Albania. BSPSH has 85,000 members, whereas KSSH has 105,000 members. 14 Trade Unin Federatins by branches N Trade Unin Federatin Individual membership 1 The Trade Unin Federatin f Educatin, Training and Science Federata e Sindikatave të Punnjësve të Arsimit, Edukimit dhe Shkencës 2 The Trade Unin Federatin f Industry Emplyees f Albania Federata e Sindikatave të Punnjësve të Industrisë së Shqipërisë 3 The Trade Unin Federatin f Civil Service and State Administratin Emplyees Federata e Punnjësve të Shërbimit Civil dhe të Administratës Shtetërre 4 The Trade Unin Federatin f Health f Albania Federata e Sindikatave të Shëndetësisë të Shqipërisë 5 The Trade Unin Federatin f Transprt and Telecmmunicatin f Albania Federata e Sindikatave të Punnjësve të Transprtit dhe Telekmunikacinit 6 The Trade Unin Federatin f Cnstructin, Wd and Public Infrastructure f Albania Federata e Sindikatave të Punnjësve të Ndërtimit, Drurit dhe Infrastrukturës publike Natinal membership EI KSSH 8,500 s/natinal membership Industri- ALL-Glbal Unin PSI/EPSU KSSH 8,000 PSI/EPSU KSSH 3,000 PSI/EPSU KSSH 6,300 ITF/ETF KSSH 2,500 BWI PSI Industri- ALL-Glbal Unin KSSH 8,000 7 The Trade Unin Federatin f Textile, Fasn and Craftsmanship Federata e Sindikatave të Punnjësve të Tekstilit, Knfeksineve dhe Shërbimeve Artizanale 8 The Trade Unin Federatin f Emplyees in Agriculture, Frestry and Envirnment Federata e Sindikatave të Punnjësve të Bujqësisë, Ushqimit, Pylltarisë dhe Ambjentit 9 The Trade Unin Federatin f Plice Service Federata e Sindikatave të Shërbimit Plicr 10 The Trade Unin Federatin f the Retired and Unemplyed Federata e Sindikatave të Pensinistëve dhe të Papunëve 11 The Trade Unin Federatin f Financial, and Trade sectr, Banking and Turism Industri- ALL-Glbal Unin EFFAT IUL KSSH 8,000 KSSH 2,500 KSSH 1,500 PSI KSSH 5,000 KSSH

15 15 Federata e Sindikatave të Shërbimeve Financiare, Tregtare, Bankare e Turizmit 12 The Trade Unin Federatin f Press, Media, Culture and Sprts Emplyees Federata e Sindikatave të Punnjësve të Shtypit, Medias, Kulturës dhe Sprtit 13 The Independent Trade Unin f Educatin f Albania Sindikata e Pavarur e Arsimit të Shqipërisë 14 The Independent Trade Unin f Miners f Albania Sindikata e Pavarur e Minatrëve të Shqipërisë 15 The Independent Trade Unin f Health f Albania Sindikata e Pavarur e Shëndetësisë Shqiptare 16 The Independent Trade Unin f Telecm f Albania Sindikata e Pavarur e Telekmit të Shqipërisë 17 The Independent Trade Unin f Tpgraphy f Albania Sindikata e Pavarur e Tipgrafëve të Shqipërisë 18 The Independent Trade Unin f Civil Defence and Order Emplyees f Albania Sindikata e Pavarur e Punnjësve Civilë të Mbrjtjes dhe Rendit 19 The Independent Trade Unin f Light and Textile Industry Sindikata e Pavarur e Industrisë së Lehte dhe Tekstile 20 The Independent Trade Unin f Artists f Albania Sindikata e Pavarur e Artistëve të Shqipërisë 21 The Independent Trade Unin f Energy f Albania Sindikata e Pavarur e Energjetikës së Shqipërisë 22 The Independent Trade Unin f the Retired f Albania Sindikata e Pavarur e Pensinistëve të Shqipërisë 23 The Independent Trade Unin f Cnstructin and Public Wrks Emplyees f Albania Sindikata e Pavarur e Punnjësve të Ndërtimit, Punëve Publike të Shqipërisë 24 The Trade Unin Federatin f Trade sectr, Banks and Services Federata Sindikale e Tregtisë, Bankave dhe Shërbimeve KSSH EI BSPSH 8,500 PSI EPSU Industri- ALL-Glbal Unin BSPSH 8,000 BSPSH 6,500 BSPSH BSPSH BSPSH 3,500 BSPSH 8,000 BSPSH PSI Industri- ALL-Glbal Unin BSPSH 4,000 PSI BSPSH 5,500 BSPSH 8,000 FSTBSH 3,000

16 16 25 The Trade Unin f Oil Industry Wrkers Sindikata e Punnjësve të Naftës Surce: The rganizatin department, KSSH; SPNSH Accrding t the publicatin The Trade Unin Mvement in Albania and t the administrative data, the Unin f Independent Trade Unins f Albania (BSPSH) is cmpsed f 22 federatins. The current website f BSPSH reprts that the current structure f BSPSH cntains 11 federatins, while ther federatins are under mnitring f BSPSH fr a full membership. Number f federatins is nt imprtant, while the cverage f prfessins by trade unins/federatins and emplyee representatin is f a high relevance. Bth BSPSH and KSSH cver varius prfessins and represent emplyees althugh their cmpsitin varies. Emplyer s Organisatins 1) Business Albania (Biznes Albania): Unin f the Industrialists and Investrs f Albania represented in the Natinal Labur Cuncil with ne representative (Bashkimi i Industrialistëve dhe Investitrëve të Shqipërisë) The Natinal Unin f Civil Guards (Bashkimi Kmbëtar i Rjeve Civile) The Italian Chamber f Cmmerce in Albania (Dhma e Tregtisë e Italisë në Shqipëri) The Natinal Chamber f Fasn Prducers (Dhma Kmbëtare e Prdhuesve të Veshjeve) The Cnfederatin f Entrepreneurs f Cnstructin Materials (Knfederata e Sipërmarrësve të Materialeve të Ndërtimit) Albanian Cnfindustria represented by ne persn in the Natinal Labur Cuncil (Knfindustria Shqiptare) The Assciatin f Fd and Beverage Business f Albania (Shqata e Biznesit të Ushqim Pijeve, Albani) The Assciatin f Albanian Publishers (Shqata e Btuesve Shqiptarë) The Assciatin f Organic Agriculture (Shqata e Bujqësisë Organike) The Assciatin f Albanian Exprters (Shqata e Eksprtuesve Shqiptarë) The Assciatin f Prfessinal and Business Wmen (Shqata e Grave Prfesiniste, Afariste dhe Zejtare) The Assciatin f Meat Imprters and Prcessrs (Shqata e Grave Prfesiniste, Afariste dhe Zejtare) The Assciatin f Accuntants and Financial Experts f Albania (Shqata e Kntabilistëve dhe Financierëve të Shqipërisë) The Assciatin f Cnstructrs f Albania it is represented in the Natinal Labur Cuncil with 2 representatives (Shqata e Ndertuesve te Shqiperise) The Assciatin f Wd Prcessing (Shqata e Perpunuesve te Drurit) The Assciatin f Bread Prducers (Shqata e Prdhuesve të Bukës) The Assciatin f Flur Prducers (Shqata e Prdhuesve te Miellit) The Assciatin f Hydrcarbn Cmpanies (Shqata e Shqërive të Hidrkarbureve) The Natinal Assciatin f She Prducers it is represented with ne persn in the Natinal Labur Cuncil (Shqata Kmbëtare e Prdhuesve të Këpucëve) The Natinal Assciatin f Internatinal Rad Transprters (ANALTIR) (Shqata Kmbëtare Transprtuesve Rrugrë Ndërkmbëtare (ANALTIR)

17 17 The Envirnmental Assciatin fr Sustainable and Ratinal Develpment (Shqata Mjedisre për Zhvillim të Qëndrueshëm dhe Racinal) The Albanian Turism Assciatin (Shqata Shqiptare e Turizmit) Dinam Agr-Fd Market Assciatin (Shqata Tregu Agr-Ushqimr Dinam ) The Unin f Tur Operatrs f Albania (Unini i Operatrëve Turistikë Shqiptarë) 2) The Cuncil f Emplyers Organizatins represented with tw representatives in the Natinal Labur Cuncil (Këshilli i Organizatave të Punëdhënësve) 3) The Cnfederatin f the Emplyers Organizatins Cuncil - represented with tw representatives in the Natinal Labur Cuncil (Knfederata e Këshillit të Organizatave të Punëdhënësve) 4) The Agr-Business Cuncil f Albania - represented with ne representative in the Natinal Labur Cuncil (Këshilli i Agrbiznesit të Shqipërisë) 5) The Unin f Business Organizatins f Albania (Bashkimi i Organizatave të Biznesit të Shqipërisë) Internatinal membership: The main emplyers rganizatins are members f the Eurpean Business Cnfederatin (BUSINESS EUROPE).