Trade Union Solidarity with
Bosnia and Herzegovina
- the FIET Project

Introduction

The Dayton Peace Agreement brought an end to the most destructive war in Europe since World War II. The war in Bosnia and Herzegovina cost more than 200,000 lives in this country of less than four million inhabitants. One million people had to leave their homes and find refuge abroad. A large part of the population is still displaced and numerous families have no or little prospects of ever returning to their home regions. One worker in two is unemployed and many of those with a job receive no income or only a symbolic wage.

In this situation, together with its Nordic commerce affiliates, FIET has initiated a major solidarity effort in support of the workers and their trade unions in Bosnia and Herzegovina. Launched in October 1996, the project now comprises training and organisation development activities in all parts of the country. Other FIET affiliates have since then committed active support and made contributions, among them affiliates from Germany, Italy, Belgium, Greece and Hungary. Others have signalled that they will soon join.

At the FIET World Executive Committee meeting in Cape Town in May, the project in Bosnia and Herzegovina was presented and discussed. Members of the Executive expressed their strong support for the project and underlined its importance. It was decided to launch a global appeal within FIET for support for the project. This has been done in July 1997. The intention is to expand all project activities to cover also the finance workers and their unions, as well as all other groups in FIET sectors. The project expansion coincides with the launching of activities in support of trade unions and regional co-operation also inother countries of ex-Yugoslavia and the Balkan region in general.

A project office was opened in Sarajevo in the beginning of July. Other project offices with local project assistants have been established in Laktashi/Banja Luka in the Serb Republic, in Mostar and in Zenica. The Mostar Office actually consists of two office facilities, one in East and one in West Mostar. The West Mostar and Zenica offices have been furnished as cafés, to serve local trade unionists as meeting points.

The FIET project, although initiated by the trade union movement, is supported by social partners both on a Nordic and a European level. From the beginning, the project has been designed to promote the emergence and development of constructive labour relations and social dialogue in all parts and entities of Bosnia and Herzegovina.

In addition to supporting the development of a strong trade union movement, the FIET project has an important role in supporting the implementation of the Dayton Peace Agreement. Project activities will take place in both entities of the country, in the Federation of Bosnia and Herzegovina and in the Serb Republic. Three joint project committee meetings have already been held, in Sarajevo and Banja Luka.

A first joint project meeting for finance sector representatives from the Federation of Bosnia and Herzegovina and the Serb republic was held in Sarajevo in the end of August 1997, where a joint project was launched.

A FIET conference for women trade unionists in Bosnia and Herzegovina was be held in Hungary during the first week of September 1997. More than forty women from both entities and all population groups were brought together for a week to discuss and plan co-operation within their trade union movement. Similar meetings are going to be held for shop stewards in retail stores and for young workers. In addition to meeting each other, the participants from Bosnia and Herzegovina also have the possibility to discuss and exchange views and experiences with colleagues from other countries of Europe.

These FIET meetings are the first contacts of their kind after the war between trade unionists in the two entities.

The overall aim of the project is to develop the project in Bosnia and Herzegovina into a substantial contribution to the peace process and the reconstruction effort in this war-torn country. Through promoting economic recovery, proper labour relations, an active social dialogue and a constructive co-operation between the social partners in the many areas where they have common interests, sustainable peace and stability can be supported.

Project objectives

1. To support the implementation of the civilian provisions of the Dayton agreement

The Dayton agreement calls for the preservation and development of Bosnia and Herzegovina as one country, with the structures defined by the agreement. The project requires the partners to work within a global programme for the whole country. It comprises joint as well as separate activities. Thus, it supports a consolidation of countrywide structures in commerce and finance.

2. To support and participate in economic reconstruction

Commerce and finance form networks that join together different elements of production as well as production and consumption. For the reconstruction of the economy in Bosnia and Herzegovina, efficient commerce and finance networks will play a crucial role.

The finance sector will play a particularly important role in the civilian implementation of the Dayton agreement and in the reconstruction of the country. The introduction of a common currency, the creation of a central bank and the restructuring of the finance industry call for an active participation of bank and insurance workers and their trade union organisations at all levels.

The economic, social and political reconstruction process in Bosnia and Herzegovina calls for the full participation of all parts of society. Without a social dimension, it will not be possible to engage workers and their families to participate fully in this reconstruction effort.

Structural reform, including privatisation, are necessary parts of the reconstruction of the economy in Bosnia and Herzegovina. To retain support for these reforms, they have to be implemented in a fair and socially responsible way. Through the project, workers in the commerce and finance sectors, who will be the first to encounter structural change and privatisation, will be given the necessary knowledge, skills and instruments to actively participate in this process.

Through a revival of trade union activities in commerce and finance, the project aims at enabling the workers in these industries to participate more efficiently in the economic reconstruction efforts, where their industries will play a key role already from its initial stages. The same objective is pursued through promoting the emergence and development of constructive labour relations and social dialogue in all parts and entities of Bosnia and Herzegovina

Through supporting a development of the country's vocational education and training system in commerce, the project promotes the necessary transformation in the commerce sector, aiming at a transition process where the social dimension is given sufficient and proper attention.

3. To enable trade unions to reconstruct and develop their structures and activities

In Bosnia and Herzegovina, which is now trying to reach internal stability and to launch a major reconstruction effort, efficient free and democratic trade unions are particularly important. Unions reach over different divides that may exist in a society, uniting workers and their families. Supporting a reconstruction of the basic union structures in commerce and finance, the project aims at promoting the internal development of the trade unions, to enable them to voice the concerns, aspirations and demands of their members in a new market economy.

The economic and social context

(The statistical information used here was compiled in February 1997)

Bosnia and Herzegovina has an area of 5.197.683 sq. km. Areas covered with forests constitute 1.789.307 hectares (34,9% of the total area), farmland covers 572.865 hectares (11.1% of the total area).

In 1991, there were altogether 4.364.649 inhabitants, of whom 17,3 % were Croats, 43,7% Muslims, 31,4% Serbs and 7,6% others. The labour force amounted to one million workers.

At that time, Bosnia and Herzegovina was part of Yugoslavia. Public (state) property comprised 53,26% of land, or 2.726.971 hectares, whereas privately owned property amounted to 46,74% or 2.392.712 hectares. - GDP 9 billion USD or 2.000 USD per capita

After the war (1992 - 1995), Bosnia and Herzegovina has two entities; the Federation of Bosnia and Herzegovina and the Serb Republic. There are altogether 3,5 million inhabitants, with about one million refugees all over the world. Industry and economy is destroyed. The average annual income is 300 USD per capita.

Industrial production the Federation of Bosnia and Herzegovina in January 1997 is 87 % down from the average monthly production in 1991.

The total number of workers in the Federation in December was 338.656. Of these, 94.168 workers were placed on the so-called "waiting list". Of the total number of workers, 263.136 were in the economic sectors, while the number of workers in non-economic activities was 75.520. The average net monthly wages in December 1996 amounted to 23.606 BiH Dinars (236 DEM). The cost of the so-called monthly "basket of necessary products" for a family of four was calculated in January 1997 to be 51.960 BiH Dinars (519 DEM)

From 1 January to 25 October 1996, goods were exported to a value of 27,386,000 USD. The value of imports was thirteen times higher, or 360,392,000 USD. The most important exporters were wood industry manufacturers, exporting for 5,514,000 USD. Trade companies had the largest share of imports.

The main project partners

FIET and Euro-FIET

FIET is the world wide trade union organisation uniting commercial workers, services sector workers and professionals in the private economy. With 11 million members in 400 trade unions in 140 countries, FIET is among the largest organisations of its kind, and continues to grow. Euro-FIET is FIET’s regional organisation for Europe, an established and recognised social partner in its sectors. The headquarters of FIET and Euro-FIET are in Geneva, with further offices in Brussels, Moscow, Costa Rica, Singapore, Zimbabwe and Burkina Faso and several project offices in Bosnia and Herzegovina.

FIET affiliates with a major participation in the project as of August 1997

· Handel og Kontor, Norway

· Handelsanställdas Förbund, Sweden

· HK Handel, Denmark

· The Nordic Co-operation Committee of Commerce Trade Unions

· Nordiska Bankmannaunionen

· Deutsche Angestellten-Gewerkschaft DAG, Germany

· Gewerkschaft Handel, Banken und Versicherungen HBV, Germany

FILCAMS, Italy

FIET’s social partners with a major participation in the project as of August 1997

· The Norwegian Service and Commerce Employers Association

· Danish Commerce and Service

Partners in Bosnia and Herzegovina with a major participation in the project as of August 1997

· The Independent Commerce Trade Union of Bosnia and Herzegovina

· The Commerce and Tourism Trade Union of Republika Srpska

· The Independent Finance Trade Union of Bosnia and Herzegovina

· The Finance Trade Union of Republika Serpska

· The Independent Trade Union Confederation of Bosnia and Herzegovina

· The Chamber of Economy (commerce employers)

Contacts have been established also with government authorities and institutions, particularly in the field of education and vocational training.

The structure of the project

The project will comprise of separate but inter-linked elements or modules, tied together by a joint structure. This project structure has been chosen to allow a broad participation by social partners and other institutions. It enables different partners to focus on parts of the project which they are particularly interested in or for which they have a particular competence. At the same time, keeping the project together to ensure that it serves the overall objectives as efficiently as possible. A modular structure allows the project to respond to changing needs and possibilities, adapting to developments in the project country.

Building strong trade unions in commerce and finance in Bosnia and Herzegovina is one of the major aims of the project. The modules that have this objective will be financed through the support of FIET and its trade union project partners.

Engagement of the social partners

Support from employers’ organisations and enterprises will be asked for to those modules of the project, which aim at developing constructive labour relations in Bosnia and Herzegovina.

A major project module to support the development of modern vocational training for commerce is being prepared in co-operation with the Danish social partners, HK Handel and Danish Commerce and Service. This project aims at furnishing and equipping the Economics College of Sarajevo which was completely destroyed in the war and which is now being rebuilt by the government of the Federation of Bosnia and Herzegovina. The project will contain also other elements aiming at establishing a permanent co-operation between the social partners in the field of vocational training and at ensuring their participation in the education and vocational training structures of the country.

Communication and co-operation between the entities

In its initial stages, the project will require a considerable planning and development input. This is particularly important in order to accomplish the difficult task to secure the participation of all parts and entities of Bosnia and Herzegovina.

The first four joint project meetings have already been held, commerce meetings in Sarajevo in January 1997 and in Banja Luka in February 1997, and meetings for both commerce and bank sectors in Sarajevo in August 1997. Trade union representatives both from the Federation of Bosnia and Herzegovina and from the Serb Republic have participated in these meetings.

The meetings in early 1997 were arranged with the co-operation of and support from the Office of the High Representative and were the first events held in Bosnia and Herzegovina to bring together trade union leaders on this level from both entities. In addition to laying the ground for a joint project, they provide a starting point for a co-operation and discussion that has continued between commerce and finance sector union leaders from the Federation and from Republika Serpska.

FIET project offices have been established in both entities and in different regions. They have been manned by project assistants, supervised by the FIET project director in Sarajevo, and communications networks have been set up between them. An important task of this office network is to promote the development of contacts, joint structures and activities.

A considerable number of missions by FIET and its affiliates to Bosnia and Herzegovina have taken place to launch new activities and to monitor developments. Contact meetings are regularly being held in different parts of both entities.

Expected results

Supporting the implementation of the civilian provisions of the Dayton agreement, the FIET project is expected

·to promote the implementation of the civilian provisions of the Dayton agreement through engaging workers’ representatives in the reconstruction, establishment and development of joint structures, networks and activities extending to both entities and all cantons and localities of Bosnia and Herzegovina,

·to promote the implementation of the civilian provisions of the Dayton agreement through similar activities together with the social partners,

·to support the establishment of trade union structures and activities, on the basis of the Dayton agreement, which are adapted to working in the emerging private enterprise sector,

·to contribute to the reconstruction of civic society and the commerce and finance industries in Bosnia and Herzegovina,

·to promote employment in commerce and finance by supporting vocational training and other measures,

·to promote the development of constructive and harmonious labour relations, social dialogue and co-operation between employers and their associations and trade unions in areas of joint interest,

·to provide women in commerce and finance a possibility to protect and improve their position in society and working life and to give them means to actively promote peace and harmony between different population groups

·to secure the future existence of trade unions for commercial workers in Bosnia and Herzegovina,

·to help union structures in commerce and finance to increase their membership among private sector employees,

·to help union structures in commerce and finance in developing recruitment and membership education materials, and

·to help union structures in commerce and finance to take an active part in the privatisation process

·to help union structures in commerce and finance to develop the necessary skills to negotiate collective agreements with employers and employers' associations.

Viability and sustainability

In the particular situation that exists in Bosnia and Herzegovina, a European country trying to recover from a war, ‘normal’ criteria on the viability and sustainability of the project can hardly be applied. The project activities as such, if they can be implemented, form a major contribution towards the goals set up for the implementation of the civilian provisions of the Dayton agreement. One can also say that if the process towards a sustainable peace is allowed to continue, and thus also the implementation of this project, a major aim has been reached.

Concretely, major parts of the project aims at strengthening the trade unions' capabilities to survive and develop in the reconstruction process and in a transforming economy. They will thus be better able to conduct the various activities expected from a trade union in a market economy. Through the project, the unions will get a better understanding of the importance of trade union education and organising activities. By increasing their membership in the private sector, they will add to their financial resources. Through the education activities contained in the project, knowledge and skills will be built up within different organisation levels. These parts of the project will be conducted with the support of FIET and its trade union partners.

It is impossible to say when the trade unions in Bosnia and Herzegovina will be able to take over full financial responsibility for their work. This depends on more general political, economic and social developments in the country. FIET and its co-operating project partners are, however, aware that their commitment must probably be a longer term one than what is normal in their development assistance projects.