The Protection of Workers’ Rights in Armenia and Azerbaijan

– State control over the rights of workers is assigned to the State Labour Inspectorate under the RA Ministry of Labour and Social Affairs. Non-state control over the protection of workers’ rights is ensured by trade unions. “Confederation of Trade Unions of Armenia” (CTUA) – a Republican Union – operates in Armenia and embraces 24 unions with their 238,933 members, operating in various sectors and industries. There is a difference between the activities of these two structures: The State Labour Inspectorate supervises the enforcement of those legal acts by employers that regulate labour relations, while the trade union represents and protects the labor, as well as the other related professional, economic and social rights and interests rights of its members before the employer. In Armenia, in case of the violation of their labor rights workers do not always apply to the trade unions or the State Labour Inspectorate. A study, conducted in 2010, showed that workers are poorly informed about their employment rights or the existence of trade unions. The trade unions are not trusted either. (52.0% of the young respondents from among 1205 surveyed in the territory of Armenia were not aware of the existence of trade unions, and 10.4% did not believe in their probable support.) There are many reasons for this, of course, among which one can point out the high level of unemployment, which fetters and hinders employees in the protection of their rights. According to official data, the unemployment rate in Armenia reaches 20.9%.

To fill in the information gap, CTUA organizes awareness raising campaigns – workshops, training courses, and various events. In Armenia, employers mainly violate the workers’ fundamental rights to rest and paid vacations. There are cases of illegal suspension of labor contracts. Until recently, there were many instances when the employee entered into an employment contract for a fixed term, whereas according to the law the contract should have been signed for an indefinite period of time. There have been many cases of non-payment of temporary disability benefits and salaries in the service and construction industries to the workers with whom no labor contract was concluded.

– In the framework of social partnership, we cooperate with various government agencies and the Republican Union of Employers. Of course, there are discords, discussions, concessions, achievements, and I highly appreciate this opportunity to cooperate. If before the trade unions was merely there to organize events or provide financial assistance to employees from the sums generated from membership fees, now the unions can make a difference in the Labour Code due to cooperation with the government.

After the collapse of the Soviet Union it was on April 29, 2009, that the first collective Republican agreement was signed in Armenia, which I believe to be an achievement. The culture of social partnership is a new phenomenon in our country, also with regard to labor law. Despite the importance of this culture, it was not operative in the Soviet years. A collective agreement and collective negotiations are most important tools, possessed by professional organizations, since collective agreements establish provisions that ensure more favorable conditions for the employees than the ones provided by the law. The republican collective agreement is the basis for the formation and development of social partnership in the country.

– One cannot state that in Armenia foreign investors violate the workers’ labor rights more often than local companies. Of course, the employer’s attitude towards the unions in not unambiguous, because the unions are constantly making demands and raising problematic issues. Today, there are companies in 24 different sectors and industries whose workers have individually got organized, have formed trade unions and can negotiate with the employer. The provided solutions that are in favor of employees and are realized no matter by whose means (at the expense of the trade union or the employer), raise labour efficiency, which in its turn is beneficial for the most employer.

To join the union, the employee must pay a membership fee established by the union charter, which is usually a sum equal to 1% of the employee’s monthly salary.

– From January to October 2012 three employees already took a legal action with the assistance of CTUA with claims of the abuse of their labor rights. CTUA annually receives about 80-100 written and 300 oral complaints over the phone or by a personal visit, all of which are followed up. The statistics of the last five years has shown that the complaints are gradually decreasing. The reason for this is the high level of unemployment and the workers’ fear to lose their jobs. However, we have won legal cases which reinstated the employee in his/her former job and ensured payment for the idle time not by his/her own fault. There were cases when the case did not come to court: a letter containing the violations and the possible implications drafted by us and addressed to the employer, the employee was reinstated in his/her former job. We have also had cases when the employee was not paid for the holiday, and again as a result of our consultation, he received the amount due.

Currently, a case has been sent to the European Court sent the case with our assistance. It appeals against the imposition of an illegal disciplinary action and the dismissal of the employee. Counseling and legal services are free of charge at CTUA.

The Confederation of Trade Unions of Armenia also works with potential migrants. We mainly disseminate information and hold consultations to prevention the possible cases of forced labor abroad and labor trafficking. We conduct these activities in the most vulnerable cities and regions in Armenia.

– It should be noted that the trade unions that existed in the Soviet times, were called “red unions.” At the moment there is a new term – “a yellow union.” These unions are under the control of employers. After independence there was some process of the formation of independent trade unions. I am proud to say that I was one of the founders of independent trade unions in the oil sector. But unfortunately it should be stated that the union did not last long. It all started with the arrival of multinational corporations in Azerbaijan. Whichever country multinational corporations go to, they always strive to make changes in the local labor laws. By the way, these efforts are accompanied by attempts to reduce the role of trade unions in the country. So, in 1999, the Labor Code of Azerbaijan was amended accordingly.

The so-called “yellow” unions are a kind of an informal structure with SOCAR (State Oil Company of Azerbaijan Republic). We are all witnessing the workers’ attempts to protect their rights; we are witnessing strikes and actions through which oilmen are putting forth their demands, but has anyone ever heard an official statement from the unions? On our part we are trying to help oilmen protect their rights. The workers are trying to establish independent trade unions. Thus, in 2005, the workers tried to establish an independent trade union at “McDermott” (an American company, which participated in oil projects as contractor), but the so-called “yellow” unions appeared there, too, and prevented the establishment of independent trade unions. These “yellow” trade unions are concerned only with collecting membership fees. This is the case in the most powerful industry in the republic – oil and gas extraction – and it is already needless to speak of the protection of workers’ rights in other industries. It should be noted that, unions exist at every state institution or in every public sector. These are the same “yellow” trade unions I have discussed above. These are not free trade unions; they do not act independently, but are entirely dependent on the management of the enterprise they are created in. Azerbaijan has a confederation of trade associations. It embraces 31 trade union committees, covering almost all regions. This confederation has about 1 million 600 thousand members.

– I’m sure that the government of Azerbaijan is not interested in the establishment of independent trade unions. As for the executive branch in the person of the Ministry of Justice, they simply refuse to register independent unions. They refuse to register such unions also because the Trade Union Confederation does not want that. The Confederation does not want the independent unions to be registered for quite “understandable” reasons: having independent unions means to have strikes, as well as specific demands from employers to improve working conditions, to pay higher wages, and requirements for accountability.

-Transnational companies, local and foreign entrepreneurs do not want to see free trade unions here. The Ministry of Justice also hinders the establishment of strong independent trade unions. As mentioned above, the Ministry of Justice simply refuses to register free trade unions.

For example, the Singaporean Caspian Shpiat, in the capacity of an employer, dismissed the chairman and deputy chairmen of the company trade union in 2009. The reason for dismissal is that the trade union demanded a raise of employees’ salaries and normal working conditions.

According to the law on trade unions, the trade union administration cannot be dismissed without the decision of the superior body. However, the superior body, that is – the oil and gas industry workers’ union, did not protect them. And the dismissal “was a success.”

“The Confederation of Trade Unions of Azerbaijan” is a “puppet” structure in the hands of the government and employers. Moreover, employers prevent the establishment of alternative unions. The transnational companies operating in Azerbaijan also impede the establishment of independent trade unions, and the Confederation does not protect the rights of illegally dismissed workers. According to the law, seven members suffice to create a trade union. However, in practice employers prevent the establishment of trade unions with threats of dismissal. In the absence of fair courts in the country citizens prefer not to have any confrontation with their employers.

Workers’ rights are practically unprotected in Azerbaijan. I would like to remind you that recently an amendment was made to the Labor Code with the addition of a new section which stipulates that a worker cannot be dismissed from a permanent job without the trade union’s permission. But still this failed to change the general picture. Now the head of the Union simply and without any questions signs the document which certifies that he does not oppose the dismissal of the person from his permanent job.

There was a curious case at Balakhanineft. The chairman of the trade union of the enterprise represented the administration of the company at the trial on the woman’s illegal dismissal. This case is a vivid manifestation of the lack of independence of trade unions.

If the worker disregards the management of the company or the factory, he/she will immediately lose his/her job. At the moment, trade unions live off 2% of their members’ salaries, which is withdrawn from the oilmen’s salaries by the accounting department. To date, regardless of the newly-appointed employees wish 2% of his/her salary is automatically withdrawn at the person’s assumption of a position in the SOCAR. And it is worthwhile to ask what that person gets in return? Are the person’s rights protected? In the best case the person gets a 5-day stay in Nabrani  (a resort on the shores of the Caspian Sea) for the 2% membership fee. By the way, not everyone is able to get such a voucher, much fewer get a small financial aid.

But it should be noted that according to Article 309 of the Labor Code of the Republic of Azerbaijan, the unions are endowed considerable authority. In addition, it should also be noted that Article 309 consists of numerous clauses. According to legislation, trade unions exercise social control to ensure enterprises’ compliance with the foregoing points. But in reality, trade unions engage in anything, but control over compliance with the law. The whole point is that if unions are autonomous, they would, of course, protect the workers’ rights. In winter, they go out of their offices because it is cold. In summer they sit in their offices because it is too hot in the street. In simpler terms, the unions are always on undeserved vacation at the workers’ expense. It is important to recognize that the unions are not elected by the workers and are not independent organizations; they do not fulfill their functions of an independent structure under the employers.

I would, of course, like trade unions in the country to engage in their duties in good conscience. There is no explanation for those who take money from the people and fail to protect their rights. I would like many officials to realize that they are public servants, and they should comply with the law in the first place.

In 2011, our Committee for the Protection of Oil Workers’ Rights filed 45 lawsuits to protect the violated rights of the workers in the oil sector. Of these, only 23 lawsuits won and the decisions were in favor of the workers in the industry. In the first 10 months of 2012 we have initiated 50 lawsuits and only 20 of those claims have been satisfied, while the others are under investigation.