Posted: 4 years ago

Disputable Labor Code

In the coming amendments to the Labor Code, there are various considerations about why the business sector demands the opportunity to appraise the impact of regulations prior to enforcement of changes, and how the changes will change the state economy.

Mariam Kuchuloria, deputy director general of European Business Association, and analyst Andria Gvidiani, have discussed these issues at length. 

This package of amendments turned out to be very interesting for members of the European Business Association. The Association received the package from the bill’s author in Summer 2019. The association’s member companies follow the labor code’s requirements, and they believe that it is acceptable to introduce similarly high standards in similar legislation. However, during a discussion of the legislation, the companies named certain challenges that were filed and transmitted to the bill’s author. 

“There were various responses. The focus was placed on overtime work. Companies have named specific, practical examples as  to why these were challenges, and why they could hamper their business. For example, companies, which operate in the outlying regions, including hotels, the major problem is how to select and find personnel. The regions are empty; poverty overwhelms them, and if they seek staff, the problem of low-quality workforces arises. Frequently, companies train staff themselves, and spend resources on this process. Companies have expressed fears that, if they set certain overtime working standards, it may lead to the employees revolting”, Kuchuloria said. 

Analyst Andria Gvidiani expresses skepticism regarding amendments to the Labor Code. This will be a serious obstacle for business development. If we want to build a strong country, a strong country is based on a strong economy and strong business. 

“Any step, any regulation and initiative that are not substantiated and analyzed hamper business development, and this is an absolutely unacceptable approach. In general, I believe that some parliament members have an infantile attitude towards on this issue, and they have introduced this issue without due analysis of regulations”, Gvidiani said. 

Nobody should interfere in the private sector and public affairs. Moreover, the Georgian economy  is not in a situation where we should start talking about introducing minimum salaries, Gvidiani said. 

“If the minimum wage is introduced, companies would not be able to employ a low-paid workforce. These people will not be able to acquire working experience, and they will remain uncompetitive on the labor market. Consequently, I categorically object to introducing minimum wages”, Gvidiani said.