: / Strategies / National Poverty Reduction Strategy (2003-2005)

Kyrgyzstan Review, 10 years ago

F. Reform of Wages and Labor Agreements

212. Economic reforms in the Republic have significantly affected labor relations and the wages system. New sources of income from business activities have emerged in the economy. Wages and salaries, however, remain a principal source of income for the majority of the population.
The Republican Trilateral Commission for the regulation of labor relations, the signing of the General Agreement for 2002-2004, as well as several sectoral and collective agreements, have had a bearing on labor relations in the Republic. The Social Partnership Development Concept has been recently approved. A Draft Law on Social Partnership in the Republic is being developed for the same purpose.
Main problems in the sphere of labor remuneration and labor relations include:
Sharp differentiation in the labor remuneration level among the various sectors, regions and enterprises. One of the lowest labor remuneration levels is to be found in the social sector (education, science, health), where social sector workers are paid 50 percent of the average wage in the economy.
Low labor remuneration has decreased real income of the population and expanded poverty.
Lack of active cooperation between employers associations and employees in addressing social issues such as the regulation of wage rates due to the imperfections in the legal framework.
Insufficient involvement of employees in designing and signing of agreements related to labor relations.
213. The following priority areas should be targeted in order to stabilize the situation in the labor remuneration and labor relations system:
Development of market-oriented mechanisms of regulating wage and salary levels.
Elimination of unjustified differentiation in labor remuneration in various enterprises and organizations.
Establishment and implementation of state guarantees in the labor remuneration system.
214. Development of the social partnership and labor remuneration system envisages:
adoption of the new Labor Code;
accelerated development of legal documents regulating labor relations; promotion of the social partnership; and
designing the draft law on employers associations and a law on collective labor agreements and contracts.