Tec Proposal Social Dialogue Ver 2 Sept Night

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Improving the development and capacity of Social Dialogue and Social Partners inBiH

EUROPEAID/127018/C/SER/BA

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TABLE OF CONTENTS

1. RATIONALE ................................................................................................... 3

1.1 Background Situation ................................................................................ 3

1.1.1 Country Background ................................................................................................3

1.1.2 industrial relations and social dialogue: state of the art .........................................12

1. 1.3 social partners and social dialogue .......................................................................15

1.2 Understanding of TOR and key issues ....................................................... 19

1.2.1 Origin and relevance of the project ........................................................................19

1.2.2 Comments on project objectives, activities and expected results ..........................22

1.2.3 Key issues affecting project implementation ..........................................................27

1.3 Risks and Assumptions ............................................................................ 29

Assumptions ...................................................................................................................29

1.3.2 Risks and Mitigation strategy ................................................................................30

1.4 Consortium presentation .......................................................................... 32

1.4.1 MDF ........................................................................................................................32

1.4.2 IAL Friuli Venezia Giulia ..........................................................................................35

1.4.3 Lattanzio e Associati............................................................................................. 38

2. STRATEGY .................................................................................................... 42

2.1 STRATEGIC APPROACH ............................................................................. 42

2.1.1 Project Outline and Strategy ..................................................................................42

2.1.2 General principles ..................................................................................................51

2.2 Methodological approach ......................................................................... 55

2.2.1 Capacity Development ...........................................................................................55

2.2.2 Facilitating Learning Processes ..............................................................................57

2.2.2 Training ..................................................................................................................62

2.3 Component 0 - Inception Phase ................................................................ 69

2.3.1 Establishment of the Project Office and recruitment of local support staff ............70

2.3.2 Meetings with all relevant stakeholders and indirect beneficiaries ........................71

2.3.3 Detailed project implementation plan ...................................................................72

2.3.4 Nomination of the Steering Committee .................................................................72

2.3.5 Organization of a Kick-Off Event ............................................................................72

2.4 Component 1 Social dialogue structural design and regulation ................ 74

2.4.1 Assessment of roles, capacities and functions of social partners ...........................75

assessment of role and function of the Social Economic Council and its possible role insocial dialogue ................................................................................................................77

2.4.3 Recommendations for social partner engagement in social dialogue ...................79

2.5 Component 2 Capacity building of the partners and institutions involved in

social dialogue .............................................................................................. 81

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Training needs assessment .............................................................................................82

Delivery of training .........................................................................................................84

Organisation of a study tour ...........................................................................................84Draft of an action plan for strengtheining social partners' involvement ..........................85

2.6 Component 3 Establishment of a framework for social dialogueimplementation in place ................................................................................ 86

2.6.1 Developing and presenting mechanism for linking BiH to EU activities inemployment field and Stabilisation and Association agreement (SAA) ...........................86

Delivery of activities improving preparation of BiH for receiving EU funds .....................87

3. PROJECT ORGANIZATION AND MANAGEMENT ................................................ 88

4. TIMETABLE OF ACTIVITIES ............................................................................. 88

5.LOGICAL FRAMEWORK ANALYSIS ................................................................... 89

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1.RATIONALE1.1 BACKGROUND SITUATION

1.1.1 COUNTRY BACKGROUND

Bosnia and Herzegovina (BiH)

is situated in southern part of

Europe, covering an area of

51,129 km2

. The recenthistory of BiH, and the

outcome of the war from

1992 to 1995 which ended

with the Dayton Peace

Accords at the end of 1995, is

the key background to the

existing political set-up and

the lack of a State-level policy

for some sectors, including

social sector. The complex

governmental set-ups put inplace under the Dayton Peace

Accords are unique to BiH,

and set this Country apart

from other transition

economies.

According to the Dayton

Agreement the State of

Bosnia and Herzegovina (BiH)

is composed of two Entities: the Federation of Bosnia and Herzegovina (FBiH) and the

Republika Srpska (RS), in addition to the subsequently established District of Brcko. Both

Entities have their own respective Constitutions, hold all responsibility not expresslyassigned to the State by the Constitution of BiH, and have their own Parliament and

government based in Sarajevo and Banja Luka, respectively. In addition, FBiH is divided into

10 Cantons covering about 51% of the country's territory, each of which has its own

Parliament and government. The RS with 7 regions covers about 49%. There are 137

municipalities; 64 in the RS and 73 in the FBiH. The municipalities are local administrative

units within the Entities. At the level of the sovereign State, there is a Parliament and a

Government headed by a three-member Presidency made up of one Bosniak, one Croat, and

one Serb, whose chairman (rotating every eight months) is the Head of State. The Head of

Government is the chairman of the Council of Ministers. According to the 2009 Statute of

Brcko District its government consists of eleven Departments.

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The current constitution of the BiH was adopted in accordance with the Dayton Peace

Agreement (Dayton) from December 1995. The Office of the High Representative(OHR)

was established in accordance to the Annex 10 of the Dayton and endorsed by the UnitedNations. The OHR is responsible for the civilian implementation of the Dayton. This includes

monitoring of the Dayton Peace Agreement, facilitation the resolution of any difficulties

arising with its civilian implementation, and coordinating activities of the civilian

organisations and agencies in BiH.

Being the final authority in relation to interpretation of measures ensuring the

implementation of civilian aspects of the Dayton, the OHR is authorised to make binding

decisions on the measures. The OHR also gives general guidelines to the BiH authorities

about the impact of their activities on the implementation of the peace settlement.

In addition, the OHR ensures that all legislation supports the implementation of peace and

the smooth running of the common institutions in BiH. In relation to this project, it is

important to emphasise that all labour and employment sector is fully under the jurisdiction

of the Entity Governments.

Socio-Economic Context

Even though the BiH has experienced robust economic growth in the years following the

war1, since the signing of the Dayton Peace Agreement in 1995, the socio-economic

indicators continue to create concerns. Although the real GDP growth remained high in 2007

(67%), it was mainly driven by a strong increase in domestic demand fuelled in by anacceleration of domestic lending and loosen of fiscal discipline. These tendencies are

reflected in a widening of the current account deficit (up from 8.4% of GDP in 2006 to 12.7%

in 2007) and an increase in core inflation (8% in the first 8 months of 2008). The trade

deficit also widened from 35% of GDP to 37% over the same period.

As BiH entered the 2008, with the global economy in the throes of crisis, the promise of a

new geopolitical order on the horizon, and the American neo-conservative establishment

that has dominated US and so World foreign policy over the past eight years set to be

replaced by pragmatic idealism and smart power, there are unfortunately signs,

particularly for Bosnia-Herzegovina, that this may nonetheless be a case of Ring out the

old, ring in more of the same.

Signs that this may be the case include continued political gridlock and continued use of

radical and ethnically divisive rhetoric, as the mandate of the Office of the High

Representative was extended with all powers intact and the European Union presented

another critical progress report. There have been reports that government finances are

facing difficulties, particularly in the Federation. This is unlikely to be helped by the removal

of customs on EU goods. This does not provide a particularly favourable political

1 The war in Bosnia and Herzegovina, which took place during the period 1992-1995, caused destructions in both

social and economic terms. Real GDP dropped down by 80% and over 2 million people, nearly half of the pre-war

population, became refugees either, abroad, or displaced internally.

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environment for dealing with the economic crisis, whose impact will only be the worse, given

the already high (real) unemployment rate, the degree of unused capacity in the economy,

and the role played in economic activity by casual or part-time or temporary labour. Duringthe first half of 2008 alone, the current account deficit widened by almost 60% as compared

with the same period last year.

There was an objective boost to stability in all areas during the second two quarters of the

2008, following the signing of the Stabilization and Association Agreement with the EU. That

the indices stagnated in the latter half of the year is due to the fact that signing the SAA has

been followed by little if any further progress, and the EU and the international community

more widely have become increasingly impatient and explicit in their criticism of domestic

politicians, on the one hand, while increased spending on public salaries and transfers has

taken the edge off the significant inflation that marked the beginning of the year and the

economic indicators suggest a time lag in the impact of the global economic crisis, whichhas begun to affect business but has yet to impinge fully on the public consciousness, on the

other.

As these two graphs make clear, the current

modest upward turn in the indices does not

offer significant grounds for optimism. The

graphs show the trends in the indices (taken

as annual averages) since 2000. It is clear

that they for the most part improved

considerably in the early years of the decade,

then entered a decline in 2002 that gathered

pace in 2004-2005 as both the economic and

political situation worsened. There was a

modest rally in 2006, after which the

downward momentum was restored. The final

upward turn in the BiH Stability Index is

clearly due to the relative health of the

economic and social welfare indicators, which

can hardly be expected to continue. Given the intractability of the political situation and the

impact of the global financial and economic crisis, it is difficult to see how the downward

movement evident since 2001 will not

continue.

The improving or at least not deteriorating

Economic Stability Index is in part due to

the relatively buoyant economic indicators

for the year and in part to the slowness of

public opinion to react to the global

economic crisis. For example:

Industrial production was up in both

entities over the year, 8% in the

5

Graph 1 trends in the EconomicStability Index for BiH

Graph 2 trends in the Social StabilityIndex and trendline


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Federation and 17% in the Republika Srpska. The increase in the Republika Srpska

was in large part due to an astonishing doubling of production in December 2008

compared to December 2007.

While unemployment remains a major macroeconomic problem, there was a near

10% reduction in official unemployment over the year, with 40,000 fewer

unemployed people in November 2008 that there had been in late 2007. Most of this

reduction was in the Federation.

The news regarding inflation was more mixed, with strong growth in prices during the

first half of the year, particularly in response to international pressure on food and

fuel prices. This affected food, utilities, and service industries most and was hardest

on the poorest families. As in other parts of the world, this pressure eased during the

second half of the year.

Central Bank reserves continued to rise over most of the year, beginning to fall only

in the final quarter, when they lost some 500 million in total. By the end of the year,

however, they had begun to climb again, so the nature of the long-term trend is

unclear.

The most worrying indicator is, as always, the trade deficit and the export-import

ratio. The ratio was as low as 41% and the country generated a more than 9.5 billion

KM deficit for the year. Further liberalisation of trade is set to take place in early

2009, particularly with the removal of customs on imports coming from the European

Union, which already make up a very large proportion of total imports and exports

.This will hardly make things any easier, particularly with regard to the government's

current fiscal problems.

As per incomes and social welfare the situation through the 2008 was at least apparently

stable. The Social Stability Index recovered early in the year from a low in November 2007

and maintained its new position, higher than the low but still relatively weak compared to its

average in earlier years. This is not unrelated to the issue of household income, as there was

a reduction in the number of households without any income or with less than 500 KM per

month. The average salary in October 2008 was approximately 780 KM in both entities, an

increase of 24.68% on the average salary in the RS a year before, though just 12% in the

Federation. This increase in salaries is largely due to higher public-sector salaries, and not

due to increased real employment of productivity, and may prove unsustainable even in the

short term. The similar increase in pensions in both entities is already proving difficult to

finance.

There are therefore reasons for believing that 2009 may be marked by significant difficulties

in social security and social welfare, as government resources prove inadequate to meet

increased demands upon the system. In this regard, it is worth pointing out that steps were

taken during 2008 to create a National Social Inclusion Strategy, but there is still no clear

indication as to when the strategy will be completed or adopted. Moreover, the government

has shown signs during 2008 of accepting the need for systematic solutions to ensure a

minimum standard of living and adequate social welfare and protection. The RS government

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introduced regulations at the end of the year to increase the allocation for social welfare,

but the burden will be borne by the municipalities, who simply do not have the resources,

particularly the smaller municipalities. There is considerable ground for concern that theimpact of the economic crisis may be felt most by the worst off in 2009, as employment

contracts, incomes fall, and government funds dry up.

On a positive note, the growth in exports in recent years has been remarkable. It is

surprising that of all other Balkan countries, export growth was 36% for 2006, 15% for 2007,

and approximately 17% for 2008. While exports are still dominated by steel and aluminium,

the shares of more technologically sophisticated products have been increasing, as

evidenced by rapid growth in exports of machinery and car parts. There also has been an

increase in the growth of exports in furniture.

Due to the absence of a recent census, the population of BiH can only be estimated (around

3.8 million). According to the last census (1991) 43.5% of the population declared

themselves Muslims (now Bosniaks), 31.2% were Serbs, and Croats were the third-largest

national group at 17.4%. The fourth-largest ethnic group with 5.5% of the population were

those who declared themselves to be Yugoslavs, while the members of the numerous other

ethnic groups (17 minorities are named by the law) together made up 2.4%. The present

demographic reality might be different, due to the huge loss and displacement of people

across and outside BiH during the conflict of the 90s, although recently 1,014,340 returnees

to BiH have been registered. The next full scale census is foreseen for 2011. The latest data

shows a small annual population growth rate (0.1%), 17.6% of population under the age of

16 and 13.7% are 65 and over. The urban population is constantly increasing (reaching

45.7%). According to the Human Development Index (2007), BiH is ranked 66th.

Socio-Economic Indicators

While BiH is legging behind the

other countries in the Western

Balkan region in terms of GDP per

capita, there has been a steady

growth since 2004. This providessome illustration on the basic

standard of living levels in the

economy. The measurements of

GDP below illustrates that while

there has been an increase in

GDP, still there is a significant

growth required in the coming

years.

7

GDP/capita

in

200

4

200

5

20

06

200

7

Avera

ge

Croatia645

6703

5770

2844

37,409.0

0

Montenegro 2684

2912

3443

N/A 3,013.00

Serbia240

7264

3283

3327

32,789.0

0Bosnia andHerzegovina

2103

2251

2544

2880

2444.75

Macedonia 2130

2298

2491

N/A2306.3

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Although the unemployment

rate fell between 2007 and

2008, unemployment is stillconsidered to be the biggest

economic and social problem in

BiH, in both rural and urban

areas. Currently it is estimated

at 23.4%. This figure is

compounded by an extensive

grey economy which still thrives

on a weak regulatory

framework, inappropriate tax

and expenditure policies and

poor law enforcement. This isthe highest reported official

unemployment rate in the region.

The main socio-economic economic challenges facing BiH are to stabilise the

macroeconomic environment and reduce public spending, to create a favourable business

climate, to reform the education system and to adopt active labour market measures to

generate employment.

Other Key Indicators

Per capita income in BiH measured in PPS terms was 26% of the EU-27 in 2006,increasing to about 28% in 2007.

BiH is ranked next to Macedonia as the poorest republic of former Yugoslavia. Poverty levels estimated at 18% of the population with a further 30% of citizens

classified as being in danger of falling into poverty in the event of an income shock.

Labour and Employment Sector in BiH

As widely recognised, the overall structure of the BiH is rather complex. The redistribution of

constitutional mandates reflects on the structures and organisation of public administration

labour and employment sector and functions of different administrative levels in this sector.

Article III of the Constitution assigns 10 responsibilities to the State level of BiH2 such as

air traffic control and trade, customs and monetary policies. The same article III, through its

item 3a, establishes that all government functions and powers not expressly assigned by the

Constitution to the institutions of BiH shall belong to the Entities.3

2 Foreign policy, Foreign trade policy, Customs policy, Monetary policy, Immigration, refugee, and asylum policy

and regulation, Finances of the (State) institutions and for the international obligations of BiH, International and

inter-entity criminal law enforecemnt, including relations with the Interpol, Establishment and operation of common

and international communications facilities, Regulation of the inter-entity transportation, Air traffic control3 The only possibility to change to these constitutional mandates given to different l evels of evels of government in

BiH, besids amendments to the BiH Constitution, will be through reaching agreement with the Entities for changes

of mandates. Artile IV of the Constitution opens the possibility that the BiH Presidency may decide on facilitation of

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Unemployment(% of labourforces)

2004

2005

2006

2007

Average

Croatia 13.6 12.6 11.1 9.6 11.73

Montenegro18.7 21.1 21

18.

319.78

Serbia27.7 30.3 29.6

19.

326.73

Bosnia and

Herzegovina41.8 43.9 31.1 29 36.45

Macedonia 37.2 37.3 36.1 35 36.40


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In regard to financing, the State and its institutions rely heavily on contributions from the

Entities. Article VIII of the Constitution states that the expenditure required to carry out the

responsibilities of institutions of BiH shall be budgeted by the Parliamentary Assembly eachyear, based on the proposal of the BiH Presidency. The FBiH provides two-thirds, and the RS

one-third of the revenues required by the budget.

The complexity of the labour and employment sector system in BiH steams from the fact

that the General Framework for Peace (Dayton 1995) established BiH as a highly

fragmented State. Officially initialled in Dayton, USA, on 21st of November, and signed in

Paris by the Republic of Croatia, the Federal Republic of Yugoslavia (Serbia and Montenegro)

and the Republic of Bosnia and Herzegovina, the General Framework Agreement for Peace

in BiH created the present days highly complicated government and administrative

structure.

State level competencies within the labour and employment sector are under the

responsibility of the Ministry of Civil Affairs, the Department for Labour, Employment,

Health, Social Protection and Pension.

Regarding labour and employment sector administration at the FBiH all responsibilities not

expressly assigned to the FBiH in its constitution belong to the Cantons (the cascading

principle). Also, the Distric Brcko has it own legislative and administrative powers.

All labour matters in the RS are assigned to the centralised Ministry of Labour and Social

Policy, where legislation varies from again, the Constitution of the RS, to laws governing the

work of the RS government.

According to the findings of the Vertical Review of the Labour and Employment Sector in

Bosnia and Herzegovina the current labour and employment sector in BiH is fragmented,

legislative and executive functions are spread over 13 different administrative units (in total

there are 178 institutions in BiH involved in the labour and employment sector). Existence of

13 legal frameworks makes extremely difficult to analyze, review and enforce current

legislation. The situation is especially difficult within the FBiH in which there was even no

serious attempt to make an inventory of the existing labour and employment legislation and

regulations at cantonal level. This proves that current level of cooperation and coordinationbetween different administrative tiers is not satisfactory.

Both vertical and horizontal coordination between institutions and organisations in the

labour and employment sector are weak and current legal and institutional setup creates a

space for volunteerism in the area of cooperation between the institutions and organisations

at different administrative and government levels. This makes preparation, implementation

and monitoring of implementation of labour and employment policies almost impossible.

There is a little or no cooperation between labour and employment sector public

inter-entity coordination on matters not within the constitutional responsibilities of BiH, but it requires consent by

all of the Entities meaning that any of the Entities can veto such decision.

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administration and workers and employees or their respective organisations. The situation is

the same regardless of administrative and government level in BiH.

Lack of enforcement of labour legislation and lack of social dialogue produced duality in

the labour market where a large part of private sector does not function within the legal

framework and is not in compliance with defined labour policies and employment sector

more reactive then proactive.

Information and research function in labour and employment sector in underdeveloped and

administration system is not capable of collecting, processing, interpreting and analysing

information on situation in labour market in BiH. This counts for all government levels,

starting from Municipality and all the way up to the State level. Inability of the system to

perform information and research function in an appropriate and effective way has anegative impact on systems ability to prepare and implement adequate labour and

employment policies and measures.

The Employment Services are basically in respect of what the services should be providing

namely effecting individual job mediation and counselling on education and training

opportunities for unemployed persons.

European Integration process in BiH and the relationship with the European Union

The goal of the EU membership is widely accepted as perhaps the single most important

objective of BiHs future security and prosperity. To this end, BiH is participating in the

Stabilisation and Association Process (SAP), which is the EUs overall policy framework for

the Western Balkan countries. The Stabilisation and Association Agreement (SAA) is the first

major step in the European Integration process for BiH. The main objective of the agreement

is to put in place a comprehensive agreement between the EU and BiH that provides for

wide-span cooperation to foster the integration of the country into the EU structures. On 4th

of December 2007 BiH initialled the SAA with the EU, and on June 2008 the SAA was actually

signed.

The European Partnership (EP) is an instrument of the SAP that lays down the principles and

identifies the priorities the partner country has to address in light of EU membership.

Partnerships are regularly revised on the basis of the progress made by each country and

new priorities are identified. An updated EP was adopted for BiH in February 2008, repealing

the earlier one from 2004 in order to take into account the new priorities identified by the

evaluators of the European Commission.

From 2001 to 2007, the Assistance for Reconstruction, Development and Stabilisation

(CARDS Programme) was the main EC financial instrument for co-operation with BiH. Over

this period social sector benefited mainly through the implementation of the Twinning Light

project Assistance to Ministry of Civil Affairs BiH in its internal organisation and

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improvements on administrative capacity to undertake European integration tasks,

Vertical Review of the Labour and Employment Sector in Bosnia and Herzegovina,

Employment policy reform and establishment of the labour market information system,Labour Market review of BiH. As a result of the European Communitys reform of external

aid, the CARDS programme has been replaced by the new Instrument for Pre-Accession

Assistance (IPA) as of January 2007. The IPA, established by the Council Regulation (EC)

1085/2006 of 17th July 2006, aims to assist candidate and potential candidate countries in

their progressive alignment with the standards and policies of the EU, including, where

appropriate theAquis Communautaire, with the view to the EU membership.

IPA Assistance to BiH - For the time being, a key strategic planning document for the EU

assistance to BiH is the Multi-annual Indicative Planning Document (MIPD) 2009-2011. BiH

and the EC signed the Framework Agreement for the IPA 2007 Annual National Programme

in July 2008. The main objective of IPA is to streamline all pre-accession assistance in asingle framework and to unite under the same regulations both candidate and potential

candidate countries, thereby assisting them in progressive alignment with standards and

policies of the European Union.

The instrument consists of five components of which the first two components are open to

both candidate and potential candidate countries: the transition assistance and institution

building and the cross-border cooperation components. The component III, IV and V are

limited to candidate countries:

I. Transition assistance and institution building

II. Cross-border cooperationIII. Regional developmentIV. Human Resource DevelopmentV. Rural Development

The 2007-2009 Multi-annual Indicative Planning Document (MIPD) for BiH sets out the

priorities for assistance over a three year rolling period.

2007-2009 Multi-annual Indicative Planning Document (MIPD) for BiH

2007 2008 2009 TOTAL

Transition assistance and institution

building

58.1 69.9 83.9 211.9*

Cross-border cooperation 4.0 4.9 5.2 14.1

Total 62.1 64.8 89.1 226.0

*includes allocations for the multi-beneficiary Nuclear Safety/Education Programme

From the table above, the total funding foreseen for BiH over the three years amounts to

226 million, of which 211.9 is targeted at Transition assistance and institution building

(Component I) and 14.1 million for Cross-border Cooperation (Component II). The former

focuses on implementing the main priorities of the EP with the latter supports to cross-

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border cooperation activities between BiH and EU Member States as well as with the

adjacent candidate and potential candidate countries.

1.1.2 INDUSTRIAL RELATIONS AND SOCIAL DIALOGUE: STATE OF THE ART

Industrial Relations and social dialogue in the EU

For understanding of the role and impact industrial relations and social dialogue may have it

is important to look into the overall situation related to those two issues in the EU. This

overview will also depict realistic perspective on how much BiH is legging behind when

talking about strengthening the industrial relations, active role of social partners andbenefits social dialogue my produce for both, employers and workers.

An increasing convergence in European industrial relations can be attributed to a

combination of factors: theexistence of a consensus around a set of common values and

standard the actions of the Union itself through the exercise of regulatory power and the

outcomes of social dialogue at European level, but particularly to the existence of an EU-

wide set of concrete objectives to which all stakeholders and actors can sign up to, in a

mutually self-reinforcing mechanism. The European Union is unique among world economic

groupings in combining a market building agenda with a social agenda that includes

emerging trans-national industrial relations arrangements. In other global regions this

process has barely begun and the EU is sometimes seen as a model for the development of

a regional social dialogue. The distinguishing factor is the capacity to promote minimum

standards and common values to support the policies of Member States in this area. At the

same time, implementation of EU rules and standards includes a high degree of flexibility,

allowing for differences in national customs and practices. The contribution of the social

partners to achieving the Lisbon agenda is particularly important for reaching the

employment targets and implementing the flexicurity agenda. The involvement of social

partners in policymaking and policy implementation varies widely across Member States,

but generally there is a trend towards the use of a wider mix of instruments to pursue policy

objectives. Nevertheless, the quality of the social and institutional support that social

partners enjoy is probably the major determinant of the quality of the social partners

contribution to the Lisbon Strategy. Collective bargaining and wage determination are

anchored in national customs and practices. Despite the increasing weakness of wage

bargaining actors, with declines in trade union density in particular, wage bargaining

institutions have remained relatively unchanged in recent years. There are wide disparities

across the EU. However, the degree of employers density seems to be the principal factor

determining bargaining coverage. Wage bargaining institutions seem to have a small but

positive effect on economic performance, but not on wage inequality, where it is trade union

density which produces a statistically significant result. A rise in trade union density is

associated with a fall in wage inequality. High bargaining coverage rates appear to lead to

lower proportions of in-work poor, other things being equal.

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At European level, the social partners are delivering on their commitments. They concluded

agreements on violence and harassment and on maritime labour standards, and made

valuable contributions to employment and social policymaking. The sectoral coverage ofEuropean social dialogue continues to increase. Social partners know the world of work best,

and they contribute to better governance by following-up joint commitments and

recommendations on the ground. First evidence of implementation of European social

dialogue texts, in particular of the first cross-industry autonomous agreement on telework,

shows that they make a difference. Furthermore, there has been considerable activity in the

field of European legislation in the period since the last Industrial Relations in Europe report,

including labour law. The capacity of the social partners to deliver high-quality industrial

relations, and thus their ability to play their role in achieving the EUs economic and social

objectives varies widely across the EU, and particularly in the 12 Member States that joined

the EU in 2004 and 2007 (EU-12) where the tradition of autonomous bipartite industrial

relations is less developed. In recognition of this, assistance is now available through theEuropean Social Fund to help build the capacity of social partners in these countries, and

there is evidence of increased participation of social partners in the implementation of the

Structural Funds. European social partner organisations also continue to carry out a wide

range of capacity building exercises themselves.

Europes industrial relations in a global perspective

Industrial relations arrangements in

post-1945 Western Europe have rested

on four institutional pillars: union

organisation or density; coordination ofbargaining; employee representation in

firms; and social partners involvement

in consultation over social and economic

policies on a regular basis.

Developments in the four pillars,

observed on the national level in the Member States of the EU throughout its history (from 6

to 27 Member States) indicate that, after the sharply divergent trends of the 1970s, some of

the elements of these pillars have experienced a mildly convergent trend since the mid-

1980s, in spite of the growing number of Member States. While the 2004 and 2007

enlargements have resulted in an immediate increased divergence between the industrial

relations regimes within the EU, this has been accompanied by the strengthening of (or insome cases truly developing) social regulations in the national systems of Member States in

central and eastern Europe that after 1989 tended to exclude them from political agenda

and policies.

These trends suggest an influence of

(preparing for) EU membership, although

other developments (similar pressures

based on globalisation or domestic

political, social or economic changes) may

also have played a role. No convergence is observable in areas where the EU level is least

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Convergence is more apparent in areaswhere the EUs powers are stronger; non-existent where the EU has least influence

Post-1945 industrial relations in westernEurope have traditionally been based on fourinstitutional pillars: union density;coordinated bargaining;

employee representation in firms; andregular consultation on social andeconomic policies.Since the mid-1980s, a certain degree ofconvergence in national trends has beenobserved in all these areas.


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influential: the organisation of trade unions and employers associations, the organisation

and coverage of collective bargaining and social pacts these indicators still show large

and growing divergence.

Against these national trends, there

have been incremental developments in

industrial relations arrangements at EU

level. While during the first decades of

its existence the capacity of the

Community to build supranational-level

industrial relations remained limited,

since the mid-1980s the economic focus of the European integration project has been

paralleled by the development of the social dimension. Policy making in the social area,

including industrial relations, has intensified. The limited possibilities of applying Communitylegislation in the field of industrial relations have been enhanced and qualified majority

voting has been extended to a growing area of employment and industrial relations matters.

The legislative method has been complemented by a number of procedural innovations.

The emergence of EU-level industrial

relations is evidenced by a (growing)

number of common values and

principles, and mutually reinforcing

institutions, policies and processes,

characterised by a mixture of hard (legally binding) and soft (non-legally binding) measures

focusing on the social dimension of the market. They are institutionally anchored, and some

of them have foundations in the Treaties.

The four pillars supporting the core

European industrial relations

arrangements at the national level

appear to be developing also at the EU

level, although the outcomes are still

restricted in terms of the effectiveness of these trans-national institutions. While the position

of EU-level social partners has strengthened thanks to their gradual inclusion in the

legislative process, the European Trade Union Confederation (ETUC) as well asBUSINESSEUROPE, UEAPME, and CEEP continue to be characterised by a very low degree of

centralisation, i.e. their capacity to control member organisations is restricted. However,

coordination on non-wage issues is increasing following the conclusion of European

autonomous agreements. A trans-national dimension to collective bargaining has been

emerging over recent decades, fostered by EU promoted processes and institutions. Also,

the adoption of the 1994 European Works Councils and the 2001 European Company

Directives has advanced the practice of informing and consulting the workforce in trans-

national contexts. Finally, the European Social Dialogue has become a defining

characteristic of EU-level industrial relations, as it allows for the participation of social

partners in supranational policy arrangements.

14

The introduction of procedural' innovations tocomplement the limited legislative possibilitiesin this field has helped bring about incrementaldevelopmentsin industrial relations arrangements at EUlevel, particularly since the mid-1980s

The emergence of EU-level industrial relationsis evidenced by a (growing) set of commonvalues and principles, and mutually reinforcinginstitutions, policies and processes.

The four pillars supporting the core Europeanindustrial relations arrangements at nationallevel appear to bedeveloping at EU level as well, albeit slowly.


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In combining the market-building

agenda with a social agenda that

includes emerging trans-nationalindustrial relations arrangements, the

EU is ahead of other economic powers

and regional integration organisations.

In other global regions this process has

only just begun and the EU is sometimes

seen as an example or model for the

development of a regional social

dialogue. In addition to a set of regional

industrial relations institutions and policies, the EU has developed an embryonic

supranational social policy in the fields of social redistribution, social regulation

and social rights. The Structural Funds provide a mechanism whereby resources can beallocated to address economic and social disparities in the EU or be put to the assistance of

social partners and workers adversely affected by global trade. There are regulations in the

fields of occupational health and safety, equal opportunities, labour law, and social security

and pensions (including for migrant workers and their families), together with social

dialogue mechanisms that apply to all countries. The Community Charter of Fundamental

Social Rights of Workers defines a set of fundamental social rights which have been

recognised by the Court of Justice of the European Communities (ECJ) as part of the general

principles of Community law.

In the industrial relations domain the EU

promotes social partnership andcooperation by setting minimum

standards for employee representation

in national and cross-border firms, and

by recognising the social partners in a

consulting and, in some domains, co-

legislating role, through framework

agreements. Yet collective bargaining

and pay determination core issues of industrial relations remain nationally specific. In

addition, the EU coordination regime allows the use of different implementation instruments,

and variable implementation of actual standards, according to national preferences and

capabilities. Comparing the other regions, Mercosur is probably nearest to the EU in itsindustrial set up and social policy ambitions. However, other regional organisations,

especially in Africa and perhaps least NAFTA, seem to be moving in the same direction.4

1. 1.3 SOCIAL PARTNERS AND SOCIAL DIALOGUE

Social Partners and social dialogue in EU

4 Industrial Relations in Europe 2008

15

The EU is ahead of other economic powersand regional integration organisations in the

world in promotinga social agenda with emerging transnationalindustrial relations.

Besides regional industrial relationsinstitutions and policies, the EU has put inplace policies in the fields of socialredistribution, social regulation and socialrights.

The EU promotes social partnership and

cooperation at supranational level, althoughcollective bargaining and pay determinationare still based on national customs andpractices. In an interregional comparison,Mercosur appears to be closest to the EUmodel, but other regional organisations,especially in Africa, also seem to be followingthe EU example.


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The last two years have confirmed that

European social partners can deliver on

their commitments and shape industrial

relations in the EU. The joint analysis of

key challenges facing European labour

market drawn up by the cross-industry

social partners (BUSINESSEUROPE,

CEEP, UEAPME, ETUC) has helped to

build the EU consensus on the common

principles on flexicurity at the European

Council in December 2007. Simultaneously, they continued their autonomous actions, most

notably with the conclusion of an autonomous framework agreement on harassment and

violence at work. Once implemented by the national member organisations and/or the

Member States this agreement will help to prevent and manage problems of psychological

and sexual harassment and physical violence at the workplace. The agreement obliges

companies to adopt a zero tolerance policy and specify procedures (quick reaction to

complaints, principles of dignity, impartiality and fair treatment, disciplinary actions, victim

support, etc.). Consequently, EU-level representatives of management and labour of several

sectors (commerce, local governments, hospitals and private security), which are

characterised by contacts with clients, patients and others, have engaged in a multi-sector

initiative on third-party violence in order to complement this cross-industry agreement.

Other sectors (cleaning, private security, Horeca) have collaborated on raising awareness

about socially responsible procurement.

The cross-industry European social

partners are currently negotiating two

framework agreements. The first relates

to the revision of the Parental Leave

Directive. For the first time ever, they

will themselves revise one of their

agreements implemented by way of EU directive back in 1995. The second will determine

how the social partners can best contribute to an inclusive labour market and to maximise

the potential of Europes labour market and workforce. This will include provisions for

facilitating access to and progression in the labour market for disadvantaged groups through

a series of preventive and curative measures including lifelong learning.

The year 2008 also saw the conclusion of

the joint agreement on maritime labour

standards that aims to incorporate the

provisions of the ILO Maritime Labour

Convention 2006 into Community law.

Maritime labour standards will be strengthened at global level and this will help to combat

substandard working conditions and social dumping in the long term. Another framework

agreement was concluded on social and environmental reporting standards in the European

leather/tanning industry. Furthermore, the social partners of the inland waterways sector are

16

European social partners shape industrial

relations in the EU through their contributionto policymaking (thecommon principles on flexicurity) or throughautonomous action (framework agreement onharassment an violence).Sectoral social partners are collaboratingacross sectors on, for example, thirdpartyviolence and socially responsibleprocurement.

The cross-industry European social partnersare currently negotiating a revision of theParental Leave Directive as well as aframework agreement on inclusive labourmarkets.

Further agreements were concluded in 2008 inthe sea transport sector (strengtheningmaritime labour standards) and in thetanning/leather sectors(improving social and environmental reporting).


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negotiating an agreement in order to adapt working-time rules to the specific circumstances

in their sector.

Mobility has become one of the

important issues in European social

dialogue. Social partners in sectors that

have a particularly mobile workforce or

need to improve the skills level in their

sector on the whole have been developing qualifications and skills passports (hospitality),

working with the European Qualifications Framework (inland waterways), exchange

platforms (agriculture), or training programmes and certificates (commerce and

hairdressers). The management of change, gender equality, and health and safety continue

to attract much attention of social partners at European level. (In particular occupational

health and safety practices in enterprises can benefit from recommendations and practicalguides that address the specific situation in the sector.) On gender equality, some sectoral

social partners have been innovative with guidelines for gender action plans (local and

regional governments), ambitious policy orientations accompanied by a work plan (railway),

or practical toolkits for human resource management (electricity and telecoms).

Social partners in another two sectors

have decided to engage in an EU-level

dialogue in the last two years: contract

catering and professional football. Public

administrations launched a two-year

test phase. Social dialogue in the sports sector is consolidating in Europe, and the European

Commission encouraged this process in its White Paper on Sport of 2007.

Social Partners and social dialogue in BiH

BiH is required to institute a State-LevelEconomic and Social Committee (ESC) in

order to conform with the requirements of

the International Labour Organisation

charter, to which it is a signatory. Such

committees exist only at entity level. The European Social and Economic Committee has

also expressed its concern about the failure to establish such a Committee in BiH.

The Social partners do not have a

tradition of social dialogue in BiH. The

KSBiH is a Confederation of three trade

17

Mobility, restructuring, health and safety, andgender equality continue to be important issuesfor European social partners

Two new European sectoral social dialoguecommittees have been created since 2006:contract catering and professional football.

BiH is required to institutionalise a State-

Level Economic and Social Committee in

order to conform with the requirements of the

ILO charter

The Social partners do not have a tradition of

social dialogue in BiH.


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unions (SSBiH covering Federation, SSRS in Republika Srpska and the Brcko District Union

Federation). The Employers' Federation would also benefit greatly from such capacity-

building. The Employment Section of the Ministry of Civil Affairs, although having benefitedfrom two twinning light projects has not been exposed to this theme. Employment is a key

priority in the MIPD 2007-9.

The BiH labour markets are characterized

by high levels of long-term

unemployment, a large informal economy,

and the lack of an overall strategy to

improve the structure of the market in

order to deliver increased employment.

Both trade unions and employers are

committed to resolving the problem of theinformal labour market and the ESC could

play an important role in this development. The committee would therefore be one of the

important ways of overcoming some of the most important problems in the BiH labour

market through effective and constructive co-operation between Government, the social

partners, including employers and the private sector, in key areas those affect them.

There are significant rigidities of the labour market which need mutual endeavor between

the main players in the economy. In the past, there appears to have been little involvement

of the private sector and employers aimed at resolving state/ regional labour market

problems. The main social partners are not well equipped for engaging in social dialogue on

a systematic and targeted basis, and the institutions where such dialogue take place in an

open and democratic way either do not exist, or they are not effective enough to contribute

to constructive debate. The resolution of the employment challenges is the most serious

priority facing the country, and there are a number of significant changes in the structure of

industrial relations that need to be addressed as the country proceeds to open up to the

European Union, including labour Standards. The availability of a "space" or forum, and of

the requisite structures and processes, as well as of competent players for discussions,

negotiations and consensus building, is critical for addressing the adaptations that have to

be made.

18

There is the lack of an overall strategy to

improve the structure of the market in BiH n

order to deliver increased employment. Both

trade unions and employers are committed

to resolving the problem of the informal

labour market and the ESC could play an

important role in this development.


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1.2 UNDERSTANDING OF TOR AND KEY ISSUES

1.2.1 ORIGIN AND RELEVANCE OF THE PROJECT

To secure a full understanding of the scope of the Project and corresponding boundary

condition, the Consortium has studied the ToR very carefully. Moreover, we have explored

information available on the Internet as well as the most recent project related reports.

After the December 1995 Dayton Peace Accord (DPA) BiH faced the enormous challenges of

the post war reconstruction, and economic and social recovery. This challenge has been

further amplified by the transition towards market economy requiring structural reforms and

improved governance. Furthermore, signing of the SAA and entering into force of the Interim

Agreement on 1st of July 2008, require further reform in order to bring the country closer

towards the EU Accession, thereby extending the number of challenges. All of this the BiH is

faced causes a profound effect on all BiH sectors.

Though the country has achieved progress in many areas, from decent work perspective,

still much has to be done5. Despite the fact that several laws in the field of labour and

employment have been adopted in the country, the

enforcement is far from being satisfactory, and

appropriate mechanisms for peaceful settlement ofdisputes between employers and workers are still

inadequate. Widespread unemployment remains a

very serious problem, whereas youth and women

unemployment takes a lead. Whilst formal economy

has no capacities to absorb a great number of the

unemployment, increasing informal economy

deprives many workers of basic labour rights. The

system of social protection experiences an enormous

demand for various types of benefits as the result of

war casualties and poor living standards, the

financing of which is far more costly than the budgetcapacities allow. The establishment of the

employers and workers organization at the state

level and a clear political will on the side of

Government have created preconditions for

tripartite social dialogue at the State level, still much has to be done in order to create a

framework for social dialogue at the State level and make it functional.6

5 In the World Bank 2008Doing Business reports global ranking, BiH slipped from 95 th to 105th place6 Decent Work Country programme BiH, 2006-2007, ILO

19

Chapter 19th of the Aquis,Social policy and employment

states in relation to the Socialdialogue following:In this area, it is entirely foreach Member State to decidewhich structure it will use,provided that the effect ofimplementing therequirements of the acquis isachieved:

representatives of the two

sides of industry, including

social partner organisations,

in view in particular of their role

in the elaboration and

implementation ofCommunity

legislation.


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Apart from the vast challenges BiH already has due to the post-war reconstruction and

transitional economy, it will be even more demanding to cope with challenges in the years

to come. In order to acquiesce with aforementioned, both, workers and employersorganizations require proper institutional and capacity-building support necessary for them

to deal with the implications of this new situation and to defend interests of their members.

According to the European Partnership, it is required to improve co-ordination between

employment agencies in the country and make efforts to reduce fragmentation of labour

market; also the short-term priority of the EP is to develop mechanisms for social dialogue.

In addition, the MIPD calls for improvement of social dialogue as one of the key priorities.

The Medium Term Development Strategy (MTDS) 2004-2007 highlights the priority of raising

employment and improving links between human resources and labour market.

In addition, BiH has signed 68 ILO conventions. In order to conform to the requirements of

the International Labour Organisation Conventions, BiH is obliged to introduce a state-level

Economic and Social Council (ESC). It is important to mention that, even the MoCA has taken

an initiative in establishing a country-wide Economic and Social Council, the European Social

and Economic Committee have expressed its concern about non existence of the ECS in BiH.

Fully functional ESC in the county is the first step in the creation of forum where the

structural changes of industrial relations will be addressed. In order to effectively comply

with the EU integration process, the capacities of the social dialogue in the country has to be

enhanced in order to address the issues involved in meeting European social and labour

standards.

All of the aforementioned originates a BiH demand for the project related to Improving the

Development and Capacities of Social Dialogue and Social Partners as it is this one foreseen

under IPA 2007.

Projects implemented to date in relation to the labour and employment sector in BiH are:

Assistance to Ministry of Civil Affairs BiH in its internal organisation andimprovements on administrative capacity to undertake European integration

tasks, EU funded Twinning Light project

Vertical review of the Labour and Employment sector in Bosnia andHerzegovina, EU funded

Employment policy reform and establishment of the labour marketinformation system, EU funded

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Labour market review of Bosnia and Herzegovina, EU funded

Social Sectors Adjustment Credit (SOSAC), WB Loan - Project objective was to

reduce poverty in the most effective manner by increasing social well being and

supporting an improved framework for increased incomes and opportunities. Project was

intended to achieve this by: (i) supporting development of institutional and budgetary

mechanisms for development and prioritization of social protection policy and programs;

(ii) improving the policy framework for generation of productive employment

opportunities; (iii) initiating improvements in the impact and efficiency of the socialsafety net, in particular focusing on the needs of the poorest; and (iv) strengthening the

social statistics.

A comprehensive reform of the core Labor law in each Entity was achieved. The reforms

which were introduced made labour markets in BH substantially more flexible. The

project supported the formation for the first time of social protection commissions in

each Entity which developed both budget framework paper inputs and drafted social

protection strategies, both of which for the first time include a framework for prioritizing

social protection spending, both cross-sectorally and intra-sectorally. The project

supported new legislation on unemployment benefits and active labour programs, which

were key elements of the social safety net in BH. The first nationally representativeLiving Standards Measurement Survey was conducted.

Social Sectors Adjustment Credit ii (SOSAC II), WB Loan - The objective of the

project was to support reforms in cash transfer, labour programs and social protection

towards programs which protect the poorest and most disabled in a fiscally sustainable

manner. While the project objectives were not achieved and the credit was cancelled in

2006, it triggered some important policy dialogue on targeting of social benefits. SOSAC

II agenda is subject of an ongoing policy debate about "need based" vs "right based"

allocation of social benefits, that now involves government agencies, associations of

veterans, war invalids, civil victims of war, associations of disabled persons, trade unions

and employers.

Enabling Labour Market (ELMO), USAID funded, one of the components of the

ELMO was to build capacities of the MoCA and Secretariat for the active and effective

participation in and administration of the Social and Economic Council.

The outputs these projects have produced to date make project that will support creation of

a functional state-level Social and Economic Council in line with ILO Conventions and the EU

best practices and promote the development of sustainable Social Dialogue, highly relevant

at this stage.

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Furthermore, chapter 13 of the aquis Employment and social policy covers areas where there exists substantialsecondary legal acquis at EU level, such as health and safety issues, labour law and equality of treatment betweenwomen and men, as well as areas such as social dialogue, employment and social protection where convergent

policies are being developed, on the basis of the EC Treaty. In these areas there are no legal obligations toimplement precise policy measures but a very important general obligation to co-ordinate the respective policies inorder to develop a homogenous social framework in line with the principle and rules of the EU Treaty. Among others,this chapter requires that social dialogue be promoted and gives additional powers to the social partners. Thecandidate countries are, therefore, invited to confirm that social dialogue is accorded the importance required andthat the social partners are sufficiently developed in order to discharge their responsibilities at EU and national level,and to indicate whether they are consulted on legislative drafts relating to the taking over of the employment andsocial policy acquis. Therefore, aquis requirements highlight the importance of the project even more.

Finally, based on the recommendations of the Employment Policy Review Bosnia and Herzegovina, recommends:

It is important to strengthen the mechanisms for enforcing collective agreements in both entities and thebrcko District

Strengthen the role of the ESC at the entity and district level

Cosider setting up special committees of the ESCs to deal with employment issues

Review the composition of the employment Agencies' advirsory boards to make sure that the social partnersare represented. The recommendations entail introducing a tripartite board for State Employment Agencyand re-introduce a tripartite board for the Employment Agency in the RS, which was discontinued in 2006.

Improve the social partners' skills on employment policy issues

Introduce representativeness criteria for social partners in both the FBiH and the BD

Enforece the labour law provisions governing the friendly settlement of disputes to reduce the caseload andwaiting time in court proceedings.

These recommendations suggest some key niches where the project culd and should intervene.

1.2.2 COMMENTS ON PROJECT OBJECTIVES, ACTIVITIES AND EXPECTED

RESULTS

The overall objective of the project is to contribute to the economic regeneration in Bosnia

and Herzegovina.

Our understanding of the project purpose is that it will support creation of a functional state-level Social and Employment Council in line with ILO Convention and EU best practices and

promote the development of sustainable Social Dialogue. The project will also analyse and

propose adequate institutional structure for functional the state level ESC. In terms of

institutional building it will develop adequate capacities of Confederation of trade unions

(KSBIH), of Employers Association BiH (AP BiH), and the government representatives for the

active and effective participation in the work of ESC. It is imperative that all capacity

building activities are lined into the four-year foundation work done on labour markets under

CARDS projects mainly, and under some IPA. As per sustained Social Dialogue the project

will design and implement the requisite mechanism at all required levels. And lastly, the

project will promote the Social Dialogue as a functioning part of the relations between the

22


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governments, employers and workers at each of the stages from planning, practice and

implementation mechanism related to their competences.

Main components and tasks under the Project

In accordance with the ToR, we envisage that this project will have 4 main components, but

prior to actual commencement of these 4 tasks, there should be so called Component 0 as

well. We only summarise components here bellow. Detailed presentation for each of the

items is elaborated in Section Strategy.

Component 1 Social Dialogue structure design and regulation

Task 1 In depth assessment of roles, capacities and functions of social partners

and their engagement with the key area of the social dialogue

Task 2In depth assessment of the roles and functions of the ESC and the possible

roles andfunctions of the social partners and Social Dialogue

Task 3Recommendations for a partner engagement in the priorities areas of state

level social

dialogue, in particular for the implementation needs emerging from

fulfilling the

requirements of the SAA

Component 2 Capacity building of partners and institutions

involved in Social Dialogue

23

Component 0 Inception Phase

Task 1 Establishment of the Project Office and recruitment of local support staff

Task 2Meetings with all relevant stakeholders and indirect beneficiaries

Task 3 Detailed project implementation plan

Task 4 Nomination of the Steering Committee

Task 5 Organization of a Kick-Off Event


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Task 1 Training needs assessment

Task 2

Trainings including:

European Integration and Social Dialogue

Employment strategy/other labour issues

Skills for social dialogue

Policy analyses and formulation capacities

Ensuring adequate representation and participation

Other capacity building to meet short-term requirements

Future funding in the EU and the role of the social partners

Task 3 Exchange of experience with study tours

Task 4 Action plan for strengthening involvement of social partners

Component

3

Constructive social partner engagement promoted skeletal

framework for Social Dialogue implementation in place

Task 1 Constructive social dialogue resulting from the activities 0, 1 and 2.

Diagnostic on scope, content and potential for social dialogue and

promotion of capacity building for constructive social partner engagement

Task 2 Foundations for the formal use of social dialogue as part of consultation

matters in place

Task 3 Visible mechanisms for social partners to develop, enhance and reviewsocial dialogue

Component

4

Necessary mechanism and accompanying tasks to work with

the State in place

Task 1 Analyse requirements of the SAA, EP and future EU funding

Task 2 Adjust findings from the activity 0 with the findings deriving from the task 1

Task 3 Recommend the best practices for necessary mechanisms and results from

the task 1 and 2of this activity to the beneficiaries. Discus with the beneficiaries (i.e. gain

ownership and

political commitment) the most efficient ways for establishing suggested

mechanisms

Task 4 Put in place necessary mechanism and accompanying tasks for the work

with the State

Main results

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As specified by the ToR results to be achieved are:

Results Description

Result 1Diagnostic on potential, nature, scope and content for social dialogue at

the state level

(including overview of European best practices, identification of scope and

priorities for state

level social dialogue, stakeholders mapping, capacity gaps analyses,

training needs

assessment)

Result 2Capacity building for constructive social partners engagement promoted:

Training programme for active social dialoguedeveloped and implemented

Exchange of experiences with study tours Social partners actively and effectivelyparticipate in the state level social dialogue. Links with wider labourmarket programme being undertaken as well as capacity building forengagement in the process for preparation for the receipt of EUfunding

Result 3 Action plan for social partner engagement delivered

Key issues related to the achievement of objectives and expected results

The strengthening of governmental

institutions needed for Social Dialogue is

very demanding and challenging issue.

The consortium is well-aware that this

project is substantial investment by the EC

to build institutional and human resource

capacities. In order to maximise

effectiveness of the Project, we believe

that finding and understanding answers to

principle questions listed here bellow will

be crucial in achieving set objectives and

results as stipulated by the Terms ofReferences. Additional layer of complexity

of the task at hand will be also preserving

methodological pragmatism and clarity in

resolving issues associated to the

questions.

What is the starting point?

What is that already exists in BiH in

relation to the Social Dialogue?

What has been achieved to date by

25

Sustain?

Maintain?

Why?How?

What?

Start?

End?Objecti

ve?Result?

Graph 3. key issues affecting objectives andexpected results


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previous projects in this sector? What are the political boundaries and how they could

be softened? With the intention to have a realistic picture over the starting point of

the project, our consortium will conduct a due diligent analyses of existing structuresfor the Social Dialogue and the current role of the Social Partners. In addition, we

intend t o examine all current and prospect political disputes that may arise during

the project lifetime as all requirements in relation to the industrial relations, social

partners, social dialogue, employers vs. workers, and other EC expectations relevant

to this issue are introduces.

What needs to be established and resolved? All relevant direct and indirect

beneficiaries and stakeholders need to have clear unique picture where they should

be headed when talking about the social dialogue in BiH and in context of the EU.

But, our approach will not be solely to introduce the culture of the social dialogue as

the EU brand and under the must impression. Our approach will be to familiarisethe BiH audience with all benefits that healthy social dialogue brings to the

employers, workers, society and to the country in terms of its overall development.

We intend to present specific issues where social partners and social dialogue has

helped in the EU and how lives of consumers of such result have benefited.

What type ofexpertise is required?- The Project Team will comprise experience

practitioners with relevant backgrounds, including experience on similar projects

elsewhere. We believe that apart from the foreign expertise there is a significant

local knowledge related to the social dialogue as well that should be explored. Our

approach will be to anchor the latest know how that foreign expertise may bring intothe country with the domestic understanding of all related issues. We believe that

such synergy will maximise the transfer of relevant knowledge and comprehension

of social dialogue demands and issues thus annulling any potential resistance to the

subject matter

How to ensure proper institutional development? It is well known that

perhaps the biggest worry is what will happen, or whether or not institutional

performances will improve after the Technical Assistance end, or to what extend the

performances will improve? Therefore, it is important for the institution to understand

what its current and future role is, how it is seen from the outside, and how the

institution should grow, i.e. in what direction? Often institutions do not understandthat once they grow due to number of external and internal reasons, their immediate

and indirect stakeholders need to go through the development phase as well

How to ensure ownership over the project Even though the beneficiaries have

been engaged in project design described under the Terms of References, due to the

institutional turnover or changes in policies, they may feel resistant to the project

throughout its implementation thus jeopardising achievement of project objectives

and results. They simply do not understand what is it that they will gain out of the

whole process, and how they will and may contribute. Due to the pure lack of the

basic information or understanding of the Project objectives and expected results,

26


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those that are directly involved may be inclined neither to effectively contribute nor

participate at planed activities of the project. In addition, due to the overall

institutional ignorance towards the Project it may as well happen that personsassigned from the beneficiary institution for the Project are persons who may

contribute the least, i.e. not the right person is assigned but the person who is the

newcomer. Therefore, in order to maximise the ownership over the project we will

have a full participatory approach, so that beneficiaries and associated beneficiaries

feel that their inputs, suggestions and opinions are truly appreciated and taken into

consideration in adaptation of all activities associated to the project. Our experience

shows that beneficiaries often feel reluctant to contribute, since in number of

occasion no matter their input was, it was not taken into consideration seriously

enough.

How to ensure sustainability of the project? - What can be done in order toensure that the knowledge brought by our Consortium to the country will remain and

will be repeatedly consumed in the country. How we may ensure that there will be

mechanisms for dissemination of the knowledge and promotion of the Social

Dialogue after Project ends? Or what can be done so that Beneficiaries have easy

accessible expertise if there is a need for it, after the Projects lifetime?

1.2.3 KEY ISSUES AFFECTING PROJECT IMPLEMENTATION

Although we consider the ToR to be

well-defined, comprehensive and

solution oriented, we would like to

address in constructive manner, some

key project-related issues arising in

the ToR that will need to be carefully

dealt with during project

implementation in order to ensuresuccess of the project. There are

numerous issues affecting

implementation of the Project:

Project management

issues - The ToR is

comprehensive and will

demand continuous and

careful management of

resources and delivery

of outputs in the Project,

27

QualityControl

Communication

Cooperation

Coordination

Commitment

Continuity

Flexibility

Resources

Progect

management

Efficiency

Graph 4. key issues affecting project implementation


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so the Project is deemed to be successful at the end of 12 months. Strong

project management skills will therefore be required to ensure unequivocal

implementation of the project, thus meeting the ambitious project objectivesand results. We believe that we are strongly qualified to do this efficiently and

effectively, and to ensure smooth inter-linking of various projects and inputs

of the Project.

CCC (communication, cooperation and coordination) issues - Collaboration

protocols among the various stakeholders ought to be established and understood to

ensure that there is full communication and cooperation among Project beneficiaries,

Project Team and between beneficiaries and the team. Excellent communication and

cooperation between all levels of the beneficiary institutions is critical element in

influencing overall success or failure of the Project. In addition, it will be important to

ensure effective co-ordination between project coordinators of all partners forming ourconsortium as well as effective coordination between Project team and all relevant

beneficiaries and stakeholders.

Rational use of resources Our aim is to maximise inputs per associated costs, so

there is no room for irrational use of both, human and financial, resources. In order to

have full control over allocation of resources and their utilisation we shall, amongst

others, put emphases to the following:

o Support to experts In order to expedite services provided by our experts

we will ensure that they are timely equipped with logistical, administrative,financial and content related inputs. In addition, it is crucial to ensure

effective management of international and local experts in directing and

coordinating their contribution to the Project.

o Coordination with other EC assistance and other donors activities

Significant waste of resources occurs due to the poor coordination with

previous and current projects related to the same or similar topic. In attempt

to make certain that resources committed to this Project are targeted to the

niche

Tec Proposal Social Dialogue Ver 2 Sept Night

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