site.btaTradeunionists, Government Officials Discuss Issue of Wage Convergence in Europe at End of Bulgarian EU Council Presidency

Sofia, June 26 (BTA) - The European Trade Union Confederation (ETUC) hosted an event here on Tuesday with the support of the Bulgarian trade unions. The purpose of the forum was to discuss establishing a 'European Wage Alliance' for reducing wage inequalities between and within EU Member States by upward wage convergence.

Confederation of Independent Trade Unions (CITUB) President Plamen Dimitrov told a news conference before the launch of the initiative that, at the end of Bulgarian EU Council Presidency, the unjustifiably large wage gaps between East and West and North and South of the EU are "a crucial issue that torments all Europe". He pointed out that the average monthly wage is 542 euro in Bulgaria and 5,191 euro in Denmark or nearly ten times more in nominal terms. Adjusted for the tax difference, the gap is narrowed to three times but is still wide, Dimitrov said.

He recalled his Confederation's position that Bulgarian workers are paid less than they earn but acknowledged that labour remuneration has been rising in recent years. He argued that it is economically feasible for Bulgarian pay levels to reach up to 60 per cent of the European average in purchasing power parity terms within four years. In his opinion, this is the psychological barrier above which European citizens feel part of the community.

Podkrepa Confederation of Labour President Dimitar Manolov was less optimistic and noted that, according to estimates, at the present pace of development the East will take some 200 years to catch up with the West, and Bulgaria will level with Central and Eastern Europe (excluding Romania) in some 40 years' time.

The ETUC and Bulgarian tradeunionists were adamant that all people deserve a decent standard of living within the vast European community and that the pay gap may inflict huge detriment on the EU, which is why measures to narrow it are needed.

Bulgarian Deputy Labour and Social Policy Minister Zornitsa Roussinova admitted that Bulgaria has Europe's lowest minimum and average wage but argued that the minimum wage has grown by a substantial 43 per cent-plus and the average wage by 12 per cent in recent years. In her words, wage income needs to be increased so as to deter the emigration of young and smart people. According to Roussinova, the Bulgarian EU Presidency met all its objectives in the social sphere. She singled out the successful agreement on the Posted Workers Directive, on the Work and Private Life Reconciliation Directive, and on the Transparent and Predictable Working Conditions Directive.

It was reported at the forum that wages in the Bulgarian IT sector are on a par with the average European levels, and this country has even achieved gender pay equality in this sector.

There is a large pay gap in services and trade. Dimitrov said that in Germany industry generates 74,000 euro per worker annually and the staff costs per worker are 55,000 euro, whereas in Bulgaria the productivity stands at 11,400 euro per worker while the annual staff costs are just 5,700 euro per worker. He pointed out that wage inequalities are significant in industry.