A G R E E M E N T ON THE ESTABLISHMENT OF THE UNION OF TRADE UNIONS OF TELECOMMUNICATIONS OF THE FEDERATION OF BOSNIA AND HERZEGOVINA

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1 TRADE UNION OF BH TELECOM SARAJEVO TRADE UNION OF CROATIAN TELECOMMUNICATIONS MOSTAR A G R E E M E N T ON THE ESTABLISHMENT OF THE UNION OF TRADE UNIONS OF TELECOMMUNICATIONS OF THE FEDERATION OF BOSNIA AND HERZEGOVINA

2 On the basis of Article 24 of the Statute of the Trade Union of Croatian Telecommunications Mostar and Article 9 of the Statute of the Trade Union of BH Telecom, the Trade Union of Croatian Telecommunications Mostar and the Trade Union of BH Telecom (hereinafter referred to as Trade Unions), on 2007 have entered into: A G R E E M E N T ON THE ESTABLISHMENT OF THE UNION OF TRADE UNIONS OF TELECOMMUNICATIONS OF THE FEDERATION OF BOSNIA AND HERZEGOVINA I - GENERAL PROVISIONS Article 1 The Trade Union of Croat Telecommunications Mostar and Trade Union of BH Telecom, for the purpose of joining the interests and protection of their members, regulated under the Statutes of the Trade Unions and Collective Agreement for the area of telecommunications in the Federation of Bosnia and Herzegovina ('Official Gazette of the FBiH'' number 78/06) hereby establish the UNION OF THE TRADE UNIONS OF TELECOMMUNICATIONS OF THE FEDERATION OF BOSNIA AND HERZEGOVINA (hereinafter referred to as: UNI ST FBiH ). Article 2 The proposal of the agreement on the establishment of UNI ST FBiH is established by the Presidency the Trade Union, while the decision to accept the agreement on the establishment of UNI ST FBiH shall be passed by the Assembly of the Trade Union of Croatian Telecommunications Mostar.

3 The Agreement on the establishment of UNI ST FBiH shall be passed by the Central Board of SBHT, and verified by the Assembly of the Trade Union of BH Telecom. Article 3 The mutual cooperation through UNI ST FBiH shall be realised on the basis of the Statute of the Trade Union, the Constitution, laws and other regulations in the Federation of BiH. Article 4 UNI ST FBiH shall have the status of a voluntary association and may be represented in the public in the name and on behalf of the joint interests of the members. II - PURPOSE, OBJECTIVES AND ACTIVITIES Article 5 UNI ST FBiH shall be developing mutual relations on the principle of mutual respect, independence, equality and joint interests. Article 6 UNI ST FBiH shall create presumptions and possibilities for the Trade Union to access the domestic and international trade union associations and unions, if there are interests in strengthening and connecting aimed at protecting the democratic trade union rights and freedoms generally.

4 Article 7 The signatories to the Agreement agree that they will, in addition to the programme objectives regulated under the Statute of the Trade Union, direct their common interests in UNI ST FBiH to: - Protection and common affirmation of economic and workers' interests and permanent improvement of material and social position of the members; - Application and interpretation of all the provisions of the Collective Agreement in the area of telecommunications in the Federation of BiH - Professional education and training of trade union personnel - Prevention of all forms of discrimination of employees in regard to their nationality, race, sex, political or religious affiliation, as well as social position - Joint appearance in negotiating teams during the negotiations with partners - All other issues of common interest, which are not regulated under the Statute of the Trade Union and this Agreement, if the trade union bodies deem it necessary Article 8 In order to improve the work of UNI ST FBiH, the signatories to the Agreement agree to undertake the obligation to permanently exchange the experiences and trade union activities, to exchange literature and bulletins, and to organise joint workshops and seminars. Article 9 The signatories to the Agreement shall monitor and consider the possibilities to expand UNI ST FBiH to the Union of Transport and Communications of the Federation of BiH or Bosnia and Herzegovina if their interests in that be improved. In possible expansion of UNI ST FBiH to the Union of Transport and Communications of FBiH or Bosnia and Herzegovina, the decisions shall be made on the basis of previously reached agreement in accordance with the provisions of

5 the Statute of the Trade Union, and on the basis of demand and request of the members who wish to unite. Article 10 The Agreement on the Establishment of UNI ST FBiH can be amended with the approval by all signatories. III - REPRESENTATION AND DECISION-MAKING Article 11 The total number of members of UNI ST FBiH equals to the sum of members of the trade unions that are signatories to the Agreement. Article 12 UNI ST FBiH shall have its Presidency, as a common working body, that will represent common interests and objectives of the members of the union and act upon their implementation. Members of the Presidency of UNI ST FBiH are as follows: - Presidents of trade unions - Deputy presidents of trade unions - Secretaries of trade unions The decision to represent UNI ST FBiH shall be passed by the Presidency separately in each case. All decisions will be made by the Presidency of UNI ST FBiH by consensus. Members of the Presidency of UNI ST FBiH shall be liable for their work to the Presidency, i.e. to the Central Board of the Trade Union.

6 IV MATERIAL EXPENSES Article 13 Material expenses necessary for the work and operation of UNI ST FBiH shall be provided for under the Plan of Income and Expenditures of the Trade Union signatories to the Agreement. Article 14 Material expenses for the work and operation of UNI ST FBiH shall be established by mutual agreement on the principle of proportional representation and percentage of individual number of members of Trade Union. Article 15 In regard to international meetings, travel and accommodation expenses for the delegated members of UNI ST FBiH shall be established in accordance with Article 14 of the Agreement. Material expenses that occur during the joint meetings at the level of UNI ST FBiH shall be paid by each Trade Union separately. V TERMINATION OF VALIDITY OF THE AGREEMENT Article 16 The signatories to the Agreement may jointly make a decision on termination of the validity of the Agreement, or one of the signatories may file a request for its termination which will come into effect 3 (three) months as of the date of submission of the request. Article 17 The Agreement shall be no valid in case of dissolution of one of the members.

7 Article 18 Non-observance of any of the provisions of the Agreement by one of the members shall automatically cause termination as a consequence. VI TRANSIONAL AND FINAL PROVISIONS Article 19 The Agreement on the Establishment of UNI ST FBiH shall come into effect on the day of its publishing in the ''Official Gazette of the Federation of BiH ''. The Agreement on the Establishment of UNI ST FBiH shall be made in 4 (four) copies of which two copies belong to each of the signatories to the Agreement. Number: 10 02/07 Sarajevo, 21 February2007 Trade Union of BH Telecom Trade Union President Omer Karamujić Number: SK- 2 23/07 Mostar, 21 February 2007 Trade Union of Croatian Telecommunications Trade Union President Pero Obad