General Collective Agreement (scheme)

General Collective Agreement for 2006-2007 years

General Collective agreement determining coordinated positions and joint activity for 2006-2007 years in the area of socio-economic policy and socio-labor relations of the country was signed between the Cabinet of Ministers of Azerbaijan Republic, Azerbaijan Trade Unions Confederation and the National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan Republic.

This agreement has a great importance in development of socio-economic policy, socio-labor relations in the country, determining main directions of joint activity, obligations of partners in this sphere on the basis of mutual cooperation of appropriate trade unions and employers unions which represent and protect interests and positions of government, employees and employers.

General Collective Agreement contains joint activity of parties, their duties and obligations in following directions:

- In the area of economic policy: improvement of productivity and competitiveness of enterprises, amelioration of investment climate in the country, agriculture development, enlargement of youth and women entrepreneurship activity, ensuring of signing of labor contracts, ensuring of national interests in transnational companies.

- In the area of remuneration of labor, incomes and living standards of population: permanent rise of incomes of population, increase of minimal salaries till level of living wage, activity on legalization of remuneration of labor.

- In the area of labor market development and population employment: regulation of labor market and labor migration, creation of new workplaces and improvement of quality of existent workplaces, development of personnel potential.

- In social area: realization of social defense measures for families of scanty means and families having children and controlling, increase of nourishment of children in infant schools, provision of children from needy and preferential families by free nourishment and clothes, improvement of health protection services, development of social infrastructure, insurance and pension systems.

- In the area of labor rights defense, labor protection, technical and ecological security: preparation of programs on labor protection and security, improvement of mechanisms increasing interests and responsibility of employer in the sphere of labor protection, observance of norms stipulated in labor legislation by employer.

- In the area of social partnership: elaboration and realization of socio-economic policy, joint participation of parties in projects of national programs, laws and other documents in the sphere of social-labor relations, employment of population, migration and social guarantees, realization of discussions and consultations.


Parties of General Collective Agreement taking into account that basic goals of socio-economic policy consist in prevention of unemployment, reduction of poverty, provision of people by merited living standards and improvement of living conditions providing independent development, prevention of social inequality, increase of incomes, especially salaries of population and in solution of other problems declared their readiness to make efforts for development of mutual ties and activity on the basis of social partnership, for regulation of social-labor relations by collective agreements and contracts, to realize appropriate obligations and duties


General Collective Agreement for 2004-2005

The Trilateral General Collective Agreement for 2004-2005 was signed on 7 June 2004 between the Cabinet of Ministers of AR, Azerbaijan Trade Union Confederation and the National Confederation of Entrepreneurs (Employers) Organizations of AR. The General Collective Agreement stipulates for social improvement of social and economic situation in the society, minimization of social disparity and promotion of living standards of population. As well as, it identifies obligations of the partners to develop mutual cooperation on basis of social partnership principles and collective bargaining contracts.

The General Collective Agreement determines obligation and cooperation related to economic policy, remuneration of labour, income and welfare of population, development of labour market and employment provision, directions of strengthening social protection, labour right protection, occupational safety, technical and ecological safety, social partnership and coordination of activities of the parties. The first direction provided by The General Collective Agreement highlights the primary principles on economic policy. In this part, the partners are obliged to implement the works directed to improvement of socio-economic condition in the country, attraction of foreign and local investors to develop a real sector of economy and especially promotion of taxes and social payments system directed to the state budget.

The second part contains the measures to be implemented for increase of living standards of population. Development of labour market and employment provision, strengthening social protection has been identified in the third and fourth charters. The parties should provide important issues on financing the programmes promoting population employment and analyzing activities of non-governmental organizations dealing with employment.

The fifth and sixth directions of the Agreement focused on labour rights protection, occupational safety, technical and ecological safety, social partnership and coordination of activities of the parties. The parties should carry out the measures for preparation of State Conception on occupational safety and improvement of work condition, preliminary, discussion of national programmes on employment, migration and social security, coordination and extension of activities on perfection of legislative base providing social partnership system.

The General Collective Agreement also includes the clauses promoting entrepreneurship development in Azerbaijan Republic and stipulating efforts to establish employers' unions and to pass a law regulating their rights and obligations.

The Partnership Agreement was signed also between the Ministry of Education of Azerbaijan Republic and the National Confederation of Entrepreneurs (Employers') Organizations of Azerbaijan Republic.

The Partnership Agreement was signed for development of entrepreneurship in the country, for widening the cooperation between the entrepreneurs and controlling structures, for organizing the consultations and negotiations.

According to the conditions of Agreement the parties decided to organize the cooperation in different directions for realization of the aims. These directions are the following:

- the joint cooperation in informing of entrepreneurs about the changes in the education legislation
- informing about the activity of entrepreneurship subjects in the education area
- the joint efforts in the definition of deficit during the controlling in the entrepreneurship subjects
- the help for realization of their activity according to the legislation acts
- informing the Ministry of Education of Azerbaijan Republic about the situations, interrupting their activity
- the joint efforts and the cooperation in the liquidation of these situations
- the presentation of definite suggestions, concerning the changes of articles, interrupting the entrepreneurship development in the education legislation acts and in other law acts by the National Confederation of Entrepreneurs (Employers') Organizations of Azerbaijan Republic to the Ministry of Education of Azerbaijan Republic, also in the telimatlarda-?, concerned with the realization of the functions of State controlling and revision structures, and advisability of taking into after its discussion, the current law acts regulating their activity by the entrepreneurship subjects working in the education area.

It is scheduled:

- to organize the information change and consultations in the entrepreneurship area
- joint cooperation in the area of development of small and medium entrepreneurship
- to organize the seminars and training
- the cooperation in the perfection of education in the area of entrepreneurs' training and retraining
- to organize joint arrangements for the purpose of the training of secondary and professional education schools
- to intensify the controlling of the quality of entrepreneurs' education to publish the methodic brochures for successful realization of this activity controlling.

The partnership agreement has been signed between National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan Republic and Ministry of Information and Communication Technologies (ICT).

The purposes of the partnership agreement are to support development of ICT in private sector, to achieve expanding relations of cooperation and agreement between entrepreneurs and state regulation and control agencies. Parties came to agreement in the several lines, on basis of signed document, which are:

- Provide entrepreneurs with information, concerning legislation changes in ICT sphere;
- Information exchange of both parties, concerning activities of entrepreneurs in ICT sphere;
- Providing Ministry of Education with information about challenges of entrepreneurship activity in education sphere;
- Cooperation on solution of the issues revealed as a result of revise;
- Consideration of the issues relating to control function of corresponding agencies, adjustment of legislation and execution of the standard-legal acts concerned entrepreneurial activities in ICT sphere.

The partnership agreement has been signed between National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan Republic and Ministry of Finance.

The purposes of the partnership agreement are to support creation of decent financial environment for development of entrepreneurship in the country, to achieve expanding relations of cooperation and agreement between entrepreneurs and state regulation and control agencies. Parties came to agreement in the several lines, on basis of signed document, which are:

- Cooperation on information exchange of entrepreneurs, concerning legislation changes concerning financial and business accounting;

- Information exchange of both parties, concerning activities of entrepreneurs;

- Cooperation on solution of the challenges, revealed as a result of revise of Ministry of Finance in particular producing of jewelry, preparation of invoices, capital issue and so on;

- Methodical support for realization of legislative acts, concerning development of the Non-Governmental Social Funds;

- Consideration of issues relating control function of corresponding agencies, adjustment of legislation and execution of the standard-legal acts concerned entrepreneurial activities.

The partnership agreement has been signed between National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan Republic and State Labour Inspection (SLI) under the Ministry of Labour and Social Protection of Population.

The purposes of the partnership agreement are to support development of employment in the country and capacity building of ASK on poverty reduction, to achieve expanding relations of cooperation and agreement between entrepreneurs and state regulation and control agencies. Parties came to agreement in the several lines, on basis of signed document, which are:

- Cooperation on information exchange, relating to legislation changes in Labour Code;

- Providing with information to SLI, concerning activities of entrepreneurs, labour protection and regulation of labour relations among ASK members;

- Providing with information to SLI about challenges of employers activity, and bilateral efforts directional on solution of the issues;

- Consideration of issues relating control function of corresponding agencies, adjustment of legislation and execution of the standard-legal acts concerned labour protection.


Development of social partnership system is the main factor of business development

Social partnership is one of the main principles of European social model established on the basis of normal economic development, high level social guarantee, education and social dialogue. Social dialogue considered the consultations and discussions, negotiations between government and social partners on any issues in the framework of general interests in economic and social sectors. Social dialogue conception is accepted as the part of effective management between government, employers and labor unions in Europe.

The general discussions on tripartial consultations in the national level in the economic and social policy sector related to the Tripartism and social dialogue were carried out at the session of International Labor Conference in 1999 and the resolution on tripartism and social dialogue was adopted. The legislative base of the social partnership and dialogue is provided by the ILO Constitution (article 23), several ILO Convention and recommendations: Convention on tripartial consultation (International Labor Standards), 1960 (¹ 113), 1976 (¹ 144) and recommendation on tripartial recommendation, 1976 (¹ 144).

Social dialogue in the national level must serve to the interests of all parts as the component of effective management. The cooperation of social dialogue in the sectors such as increase of employment by opening new work places, labor productivity and competitiveness of enterprises, attraction of new investments to the country and entrepreneurship development has a great role in achievement of sustainable economic development, improvement of living standards and provision of peace and stability as well.

Azerbaijan as the Commonwealth of Independent States is in transition and development period. Small and medium entrepreneurs and private sector obtained principal indices at the result of economic reforms carried out in the country and become of leading subjects of the economy. The dynamic development of entrepreneurship and private enterprises in the country strengthened the role of public organizations of entrepreneurs and necessitate the their participation in solution of social issues.

AEC being the national union of entrepreneurs and employers in Azerbaijan cooperates with several international and local organizations, also with ILO, The Ministry of Labor and Social Protection of Population of Azerbaijan Republic and Azerbaijan Confederation of Labor Unions in economic development process. This cooperation coves several spheres of economy such as, provision of women entrepreneurship and gender equality, improvement of work conditions, labor protection, regional development, enlightening of entrepreneurial subjects, improvement of favorable business conditions by perfectioning of legislation in entrepreneurial sector and development of non-oil and non-gas sector by increasing the volume of investments. At the result of cooperation with leading force of the society bilateral Collective Agreement concluded since 1992 was concluded with the participation of AEC in trilateral order since 01 June 2001 and the objectives in the social-economic spheres of AEC as the formal representative of employers in Azerbaijan were determined.

AEC has formally been cooperating with ILO since 1999. On the basis of this agreement AEC implemented several measures with ILO and its social partners in the field of regulation of labor relations, improvement of legislative base of labor protection, preparation of employment strategy, restructuring of enterprises, provision of social protection, etc.


Measures taken on social dialogue development

In order to develop social dialogue, enlighten social partners on priorities of social dialogue, strengthen social dialogue institutes engaging with issues on employment, determine responsibilities of social partners in national trilateral organs and their representation issues in these organs, strengthen the role of employers providing new work places and assisting small and medium entrepreneurship development several meetings have been implemented in the framework of cooperation with ILO.

The seminar on "Social dialogue and employment" was held on 18-19 October 2003 in Georgia. The representatives of government, labor union and employers' organizations from Southern Caucasus region participated at the conference. International experience and social partnership issues in the countries participated at the conference were discussed at the seminar. AEC submitted the project on "Social dialogue development in Azerbaijan" to ILO at the seminar.

Related to the issues shown in the project ILO and AEC are holding the seminar on "Social dialogue development in Azerbaijan" on 1-2 April 2004 with the participation of government, labor union and employers.

The purpose of the seminar is to get acquaintance with the experience of EU countries, the role of social dialogue in economic and production processes, presentations of international experts on social dialogue and employment, to organize the discussions related to the situation and perspectives of social dialogue in Azerbaijan, participation of multinational companies in social dialogue and employment. The representatives of ILO Geneva and Moscow office will participate at the conference.


ASK has signed the partnership agreements with its social partners

With the object of execution of decree requirements of the President of Azerbaijan Republic about "Prevention of interventions interfering with entrepreneurship development" from 28 September, 2002 and in accordance with the decision of Cabinet of Ministers from 19 November, 2002 it was confirmed the trial form of Partnership agreement between certain state structures and entrepreneurship subjects realizing functions of inspection and control. Then, the National Confederation of Entrepreneurs (Employers') Organizations of Azerbaijan Republic negotiated with ministries and state committees on appropriate bargaining between them.

As a result of these negotiations State Inspection of Labor under AR Ministry of Labor and Social Protection of Population, State Board of Weights and Measures under AR Ministry of Finance and AR Chamber of Auditors have already signed such as agreements.

The other day ASK and AR Ministry of Finance have signed the Partnership Agreement. The partnership agreement was signed with the purpose of providing the entrepreneurship development in the country, extension of cooperation and conceptual relations between entrepreneurs and state structures of regulation and supervision.

The existing cooperation between the Ministry of Finance and ASK implies the consultancy and exchange of information in the field of entrepreneurship, publication of methodic manuals on entrepreneurship development and regulation, rational realization of financial control of this activity.