GEORGIAN LABOR UNIONS SEEK DIALOGUE WITH THE

UNCLAS SECTION 01 OF 02 TBILISI 000927

SIPDIS

SIPDIS

STATE FOR EUR/CARC AND DRL
COMMERCE FOR 4132 DANICA STARKS

E.O. 12958: N/A
TAGS: ELAB ECON GG
SUBJECT: GEORGIAN LABOR UNIONS SEEK DIALOGUE WITH THE
GOVERNMENT

REF: TBILISI 00873

TBILISI 00000927 001.2 OF 002



1. On April 20, PolEcon deputy and Econoff met with
approximately 20 trade union delegates to the Georgian Trade
Unions Confederation (GTUC),representing almost 63,000
unionized workers from Telasi electricity distribution,
BatumiTex Textiles, Adjara civil service, EnergyInvest (which
operates the Azoti chemical plant in Rustavi),Rustavi city
council, Abkhazia civil servants in exile, and auto
transport, railway, construction, and subway trades. Absent
at the meeting because of a schedule conflict were delegates
representing over 100,000 teachers, whose union is the
largest in Georgia. Most of the trade union delegates
explained that since the Rose Revolution, their unions have
grown as they have dismissed corrupt leadership, in tune with
the government's crackdown on corruption. Much of the
unions' growth comes from reactivation of members who were
disenchanted with widespread corruption at the top of their
organizations. Union delegates are participating in a series
of three-day leadership training workshops, led by Robert
Fielding of the AFL-CIO's Solidarity Center, based in Kyiv.
Fielding is helping them to train their colleagues in the
principles of democratic trade unionism, organizing and
collective bargaining. Pol/Econ deputy told the delegates
that the United States Embassy is not only interested in the
issues of foreign business managers, but also in
understanding the problems of workers and their unions. He
emphasized that democratic trade unions play an important
role in American politics and are one of the factors that
helped to build the middle class in America.


2. GTUC President Irakli Petriashvili said the Confederation
tries its best to defend workers' rights and not let populist
political parties change the labor movement's goals.
Delegates expressed strong support for the democratic
development and economic stability of Georgia -- before even
discussing economic goals or their problems with the
Saakashvili government and with employers. Petriashvili said
that many union members had asked him if it was a good idea
to support Shalva Natelashvili's Labor Party's call for a
nationwide strike to protest the government's new tax
proposals (reftel). He said that he discouraged their
participation because he views the demonstrations as an
attempt by Natelashvili and others to exploit social issues
as a way to power, not based on any sincere concern for
workers. However, he warned that the government risks
alienating workers if it ignores their concerns, and that
workers and their unions could fall for populist appeals such
as Natelashvili's. The delegates themselves said they prefer
to work toward political stability within the current system
and that they recognize their stake in Georgian democratic
reforms and the success of business in rebuilding the
economy. Their main desire is that the government conduct a
good faith dialogue with them.


3. Delegates said there is nothing that approximates the
European style of tripartite social dialogue in Georgia.
Although the majority of employees in most of their
workplaces are unionized, their power is not commensurate
with their large memberships. Only a minority of members are
active in the labor movement. They believe the new Labor
Code in Georgia skews the playing field excessively in the
favor of employers -- mainly by permitting dismissal of
workers for any reason without notice. (Note: Although this
is true in the U.S., it is a departure from European and
Soviet norms and therefore a shock to Georgian workers. End
Note.) This allows management a free hand; for example, the
management of the Tbilisi metro cancelled danger pay for
tunnel workers after the Labor Code was passed and has
induced more employees to work more than a 40-hour week. The
delegates claimed that New Zealand has lost jobs as a result
of its overly liberal labor code, and said Georgia may
encounter similar problems. The delegates told of one
success, however, when a Georgian judge ruled that the
Ministry of Education is obligated to engage in collective
bargaining with the teachers' union, setting a precedent for
the government as a whole. They said that Minister of
Education Kakha Lomaia is reputed to have remarked afterward
that "Georgia does not need trade unions". He supposedly
offered the victorious attorney for the teacher's union a job
in the Ministry of Education at a much higher salary.


4. COMMENT. Fielding mentioned that during a recent meeting
with State Minister for Reform Coordination Kakha Bendukidze,
he was surprised at Bendukidze's openness to working with the

TBILISI 00000927 002.2 OF 002


Solidarity Center and Georgian labor representatives.
Despite his reputation as a supporter of a free hand for
business and a self-avowed libertarian, Bendukidze agreed
that in the end, both the unions and the GoG have the same
goals of democratic and political stability. We believe the
labor unions will maintain their commitment to social
stability for the time being, but their ability to keep labor
peace may slowly erode if general economic conditions remain
hard and the government is seen as continuously indifferent
to the concerns of workers. The Embassy will continue to
report on developments in the trade union movement. END
COMMENT.
TEFFT