site.btaCITUB President Plamen Dimitrov Speaks to BTA on Union’s 35th Anniversary

The Confederation of Independent Trade Unions in Bulgaria (CITUB) has become an unavoidable factor in the socio-political and socio-economic life of the country because we have managed to participate actively, with concrete proposals and clear views on the reforms that need to take place, CITUB President Plamen Dimitrov said in an interview with BTA on the occasion of the 35th anniversary of the confederation. The trade union marked the anniversary with a conference on Tuesday, which was attended by ministers, employers, Bulgarian and international experts. The forum took place at Sofia’s National Palace of Culture convention centre.

During these 35 years, not everything happened as it should have, for example privatization, Dimitrov said. However, the reform of the pension system and the introduction of the three-pillar model show sustainability. There are also good steps in education, the Dimitrov said. The most unsuccessful reform is in the healthcare system. In industry, too, some sectors had a successful transformation, he said. All these years we have been at the heart of everything that is happening, Dimitrov concluded. He said unions are a pressure group that listens to their members and to working people. According to him, the most urgent thing is to think about raising incomes, to raise the purchasing power of the population.

“According to Eurostat, the employment rate is close to 77% in Bulgaria, businesses can afford higher wages. That is why I am moderately optimistic that we will achieve 10-12% to 15% annual income growth in the next five years,” Dimitrov said.

Here is the full interview: 

Q: Mr Dimitrov, CITUB is celebrating 35 years since its establishment. How do you assess the role of the union in achieving better rights and wages for workers over the years?

A: 35 years ago, at the dawn of democracy, there were very serious shifts in the trade union world, new trade unions were created. CITUB is one of the examples in Eastern Europe of a trade union that has successfully reformed and retained its influence. We have become and are an unavoidable factor in the social, political and socio-economic life because we have been able to participate actively with concrete proposals, with views on reforms. Not everything happened as it should, for example privatization. But there are reforms that show sustainability, for example the pension model. For all its faults, the three-pillar model works. It is the fruit of a difficult reform, which happened with our substantial participation. So today there is no threat of pensions not being paid. There is a dispute about what size they should be, how much they should be increased by. We are moving forward, with good steps, in education. The most unsuccessful reform is in the healthcare system. In industry, too, there are good models of transforming large sectors. It generates about 25% of the country's GDP.

All these years, the CITUB has been at the heart of everything that has been happening. We have not always been successful or right, but time has shown and proved that CITUB is not only the most successful trade union in reforming itself, but it has also become the largest organization in Bulgaria with about 300, 000 members. Trade unions are a pressure group, we listen to what people tell us and we make efforts to meet their expectations.

Q: Is it harder to defend the trust of workers in a political crisis like we have had in recent years? 

A: It is undoubtedly more difficult. For the last three years, we have set ourselves the goal of compensating for inflation, which has eaten a large part of our income. The rise in the minimum wage and the average wage has outstripped overall cumulative inflation, which is around 30%. However, we exclude some prices of products whose price is inexplicably high, such as dairy products.

Q: Is this the biggest tension at the moment, that income levels in Bulgaria cannot reach European levels? 

A: It is certainly a big problem. Purchasing power worries people. Growth in key commodities must necessarily be contained if we are to reassure society. Because despite the increase in wages, Bulgarians still have the feeling that they are poorer.

Q: What are the union’s main demands in relation to budget 2025?

A: The issue of the minimum wage remains among the most important for us. That is why we are demanding that the Adequate Minimum Wages Directive is finally transposed this year. The mechanisms for collective wage bargaining must be spelled out.

We demand a horizontal income policy and a 10% increase in public sector wages. In the private sector, there has been an increase of between 8% and 12%, and even 14% compared with the public sector. And there is no way to argue that the business has reached a limit and cannot pay more. According to Eurostat, we have a nearly 77% employment rate. And that is why I am moderately optimistic that we will achieve 10-12 to 15% annual income growth over the next five years until we approach 70-75% of the European average.

Q: How is digital transformation changing the labour market, is there a risk for workers?

A: This question relates to the extent to which the businesses concerned are implementing and investing in technology solutions. There are already different demands on workers. This is why CITUB is a provider of digital skills training through vouchers. We try to convince people to learn, to upgrade. They even need to know that these skills will allow them to keep their jobs for a while, because in the next five years, for example, that might not be enough.

Bulgaria is not ready for the processes of change in the labour market and we need a more serious conversation about this. Attention must be focused on training for adults. The most direct route is through the creation of sectoral funds for qualification and retraining by economic sector between trade unions and employers. There are such examples in countries like Germany. They help the workforce to adapt more quickly and develop practical skills. For this to happen in Bulgaria, legislative solutions and political will are needed. We have proposals ready, but there is no political will to do so. However, now is the time, especially for those sectors where AI is entering.

Q: How do you see the role of young people in this adaptation and in the development of the labour market in general?

A: There is a fundamental clash between the expectations of young people and the way the economy works. I think that social networks create a sense of an instant world that makes young people want things to happen quickly and well enough for them - quick income, quick career. We need the economy to respond to these expectations in some way because, even with an ageing population, young people are an essential part of the workforce. So we need to look for and find ways in which their desires are better understood.