Why trilateral cooperation is important in the engineering industry of Kazakhstan
The very name - trilateral partnership - has a deep meaning, that is, it is not a trilateral confrontation, struggle, but a partnership through which all three parties, having different views on problems, different understandings and roles, should still strive for a joint, partnership solution of problems. while trying to understand the logic and needs of that very “partner”.
Unfortunately, it is likely that the leadership of the Industrial Trade Union of Mechanical Engineers, in its current composition, has little experience and understanding of the essence of the tripartite partnership. The author believes that as a result of the initiation of lawsuits by the trade union, there is a risk of bankruptcy of some enterprises of the engineering industry of the defense industry.
Business is interested in the social and economic stability of society. It is business, and it is manufacturing enterprises that are the economic basis of the state, creating material values and, at the same time, paying taxes and other payments. They also provide employees with work and pay for their work. They are also a source of funds for the activities of the trade union organization itself. And if entrepreneurs are brought to their knees or, as in this case, declared bankrupt, or they suffer serious economic damage, then this will lead to the fact that tomorrow this employer, this enterprise will become insolvent and the problems of the employer will immediately become common problems.
Mechanical engineering is a fairly large branch of the national economy in terms of the number of people employed in it and the number of enterprises. In the Soviet period, the engineering industry in Kazakhstan was a fairly developed industry - 16% in the structure of the economy. Now the economic indicators are much lower, and both the country's leadership and the employers themselves understand that the industry must develop, this industry largely ensures the country's security. It depends on the results of the work of machine builders how safe, for example, the work of miners, metallurgists and oil workers will be. Even equipment purchased abroad often requires ongoing repairs and maintenance, and this is also provided by mechanical engineering.
This industry is strategically important - both from the point of view of further development and from the standpoint of economic foundations. Up to 40% of imports to Kazakhstan are engineering products, and this is a very wide range of goods, ranging from cars, agricultural machinery, equipment for the mining and metallurgical complex, the oil and gas sector, and agriculture. The production of computers, telephones, household appliances and even toys is also mechanical engineering. About 10 sub-sectors of mechanical engineering operate in our republic; in the world, the number of machine-building sub-sectors reaches 70–80. This is a complex, diversified industry that requires serious knowledge, skills, and developed cooperation. At the same time, there is very high competition in it. Many countries understand that the future of the economy as a whole depends on the level of development of the engineering industry. And the same USA, Germany, Japan, China and Russia pay serious attention to the development of the industry.
The confrontation in the industry will not end well. Just before the new year, President Tokayev approved the work on the formation of a Comprehensive Plan for the Development of Mechanical Engineering in the Republic of Kazakhstan. Who should do it? On the one hand, the relevant government agencies are the Ministry of Industry and Infrastructure Development (MIID), on the other hand, entrepreneurs, and on the third, the workers themselves, including both workers and engineers, technologists, economists, etc. It is important that All these parties worked together, on a partnership basis. By the way, this is also fixed in our Labor Code.
But in fact, throughout 2022 there was a war in the form of litigation. This is by no means a constructive dialogue, but a tough, sometimes insulting confrontation, which has not yet ended in anything good. The fact that a number of enterprises have been assigned payments in the amount of 100–200 million tenge does not at all contribute to their normal activities. For many of them, 50 million tenge is the profit they earn during the year.
Who will sign the new trilateral agreement? The trade union chose a tripartite agreement, which was signed at the beginning of 2020 for three years, as the basis for its claims. NCE "Atameken" acted as a signatory on behalf of employers. The agreement was signed in February 2020, and already in May of the same year, changes were made to the Labor Code, and the powers to sign tripartite agreements were removed from Atameken NCE - both republican general, and sectoral, and regional agreements. Already in February 2020, it was clear that Atameken was losing these rights and obligations. The fact is that the International Labor Organization, based on information received from the government and the Ministry of Labor, previously recommended “withdrawing NCE Atameken from the social partnership system”, followed by exclusion from the number of signatories.
But after making these changes, the issue of who will be the successor and the new signatory has not been resolved. On the part of employers, at that time, there was no authorized representative who would take upon himself the protection of the interests of employers in the industry.
The National Chamber of Entrepreneurs previously pushed the Confederation of Employers out of this important social function, as a representative in partnership between government, trade unions and business. Later, the understanding came that Atameken cannot and will not protect the interests of employers, as it is a quasi-state structure. At the time of the signing of the agreement on trilateral cooperation in February 2020, the NCE practically could not be a signatory, as this was contrary to 87 of the Geneva Convention, to which Kazakhstan also joined.
Meanwhile, as part of the draft of this tripartite agreement, the amount of payments in favor of the trade union was significantly increased, while a requirement was introduced to transfer these payments not to the trade union organization at the enterprise, as was the case before, but directly to the republican branch body. This was the subject of the dispute. At the same time, when asked by enterprises how these funds are spent, the answer of the Sectoral Trade Union was one - “it's none of your business”, although, in fact, all controversial issues should be discussed at meetings of tripartite commissions.
An industry trade union, working with enterprises in the industry, should analyze recurring, common problematic issues and, together with employers, develop mechanisms for their effective solution, including in the area of wages during regular and additional hours, ensuring working conditions and rest, stimulating and maintaining labor discipline , safety precautions and many, many more questions. This activity at the industry level is very important.
Before signing a new tripartite agreement for 2023-2025, the trade union must confirm its eligibility. For example, according to the Law on Trade Unions, it must have its representative offices in more than half of the regions of Kazakhstan, that is, at least 11. So far, it is represented only in 10 regions, but in many regions there are 10–20 real members of the trade union. In total, there are about 3.5 thousand enterprises in the field of mechanical engineering in Kazakhstan, which will have to comply with the terms of this tripartite agreement, including transferring funds to the branch trade union, if they do not have members of the branch trade union.
Who can sign this agreement on the part of employers? The Labor Code states that it can be an industry association. The largest association in the industry is the Union of Machine Builders of Kazakhstan, which includes about 700 enterprises. But in its charter, the JMC does not have a provision that it can represent the interests of its participants in matters of social partnership. And in this difficult situation, the national confederation of employers "PARYZ", after relevant requests from the country's machine-building enterprises, its members, joined in the development and discussion of an industry agreement in the machine-building and defense industries for the period from 2023 to 2025.
The key role in organizing a trilateral partnership is assigned to the state authorized body, the consolidation by industry was approved by the Republican Tripartite Commission (RTC protocol dated November 23, 2019). In mechanical engineering, the authorized body should be the Ministry of Industry and Infrastructure Development. Unfortunately, the ministry does not organize the work of the tripartite sectoral commission, which contributes to the formation of not the best trends in the industry.
Since May 2021, not a single meeting of this commission has been held. Although this is a very important job. After all, it was the state body, as a working body of social partnership and the sectoral trade union, as a side of social partnership and dialogue, as equal parties, that should have fully organized the work in the current situation in the industry. Namely, to organize work to determine the third party, the side of employers. Representatives of business are interested no less, if not more, than the other two sides of the partnership, in the socio-economic stability of society, especially in our "turbulent" time. Employers who pay money both to the state in the form of taxes and to employees in the form of salaries and social payments can be the cementing base that ensures the normal socio-economic development of the republic.
Starting from January 1 this year, our industry does not have a tripartite agreement, since the previous one ended on December 31, 2022, which should worry both the entrepreneurs themselves and the government, represented by the Ministry of Foreign Affairs, as well as the Ministry of Labor and Social Protection of the Republic of Kazakhstan. The agreement must be signed by the eligible parties, these and other issues must be resolved by the ministry.
We really hope that the newly appointed Deputy Prime Minister Altai Kulginov, who oversees the block of social issues, as well as the head of government, Alikhan Smailov, will pay attention to these problems in the engineering industry, given their importance for the entire socio-economic sector of the republic.
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