Central and Eastern European Countries
Bulgarian Leather Industry goes
on line
On 8 November 2005, the Branch Union of Leather, Furriers, Footwear and Haberdashery Industries in Bulgaria has launched their web site.
COTANCE has been supporting the strengthening of the leather industry's representative bodies of new EU member States and accession candidate countries through a number of initiatives and most recently with the PERFECT-LINK project developed in conjunction with EURATEX, Europe's Textile and Clothing organisation.
The consolidation of the Bulgarian leather sector's organisation is a positive sign that brings it closer to its integration to COTANCE.
Second Socio-Economical EU/CEEC Forum for the Tanning Industry, Bucharest, 21/22 October 2002
The 2nd Forum of the Social Partners in the Tanning and Leather industry of the EU and CEEC applicant countries took place on 21-22 October 2002 in Bucharest, Romania. Representatives from employer organisations as well as trade unions came from the main countries in the tanning industry, including France, Spain, UK, Germany, Italy, Romania, Bulgaria, Hungary and Poland. The Commission, which supported the initiative, was present through both DG Enterprise and DG Employment/Social Affairs.
The topics on the forum’s agenda focused on EU enlargement and support programmes, training, other labor market issues, the social sectoral dialogue - at both European and national level – as well as health and safety at work.
President D. Lascu from PIELARUL (Romanian trade union federation in the leather and tanning sector) welcomed participants, indicating that the forum represented a great opportunity for social partners from Europe and in particular from CEECs in order to meet and discuss the concerns they have to face in their basic day-to-day activities, as well as common projects to be developed at European level. He underlined the openness showed by the European organizations in setting up this important meeting in Bucharest.
OPINC (Romanian Employers Association) President, Mr D. Sbarcea, expressed hope that the links to the sector’s European structures will strengthen the cooperation of the Rumanian leather industry’s Social Partners and that, in the near future, the tanning sector’s employers and workers will be able to meet the expectations of the European Community.
Mrs O. Niiranen (EC - DG Enterprise) stated that “ Enlargement should be seen as an opportunity for both sides and that Business and Trade Union associations have a crucial role to play”.
Mrs. H. Immonen (EC - DG Employment and Social Affairs) made a presentation on the EU Social Sectoral Dialogue and its possible benefits as well as the instruments open for supporting the Social Partners in achieving them.
Mrs F. Orlandi (UNIC, the Italian tanning industry association), introduced a successful pilot project on the integration of immigrant workers in the tanning industry in Italy through the development of appropriately designed courses as welll as the co-operative association of private and public stakeholders in the civil society to facilitate the recruitment of jobless immigrants and provide support for accommodation and local social integration of families where necessary.
Mrs. E. Kedzior (Trade Union Technical Bureau) presented Council Directive 89/391/EEC on the introduction of measures to encourage improvement in the health and safety of workers at work as well as its role in developing EU regulations on health protection in the work place. She also presented the Polish experience in implementing that directive. The exchange of experiences in candidate countries prompts us to conclude that OHS legislation in those countries is satisfactory, but also that full implementation of the legislation could be improved.
COTANCE Secretary General, Mr G. Gonzalez-Quijano, was pleased to announce to the EU and CEEC leather sector’s social partners that the COTANCE-EURATEX BSP II/ PHARE project “PERFECT-LINK” had been selected for funding by the EU Commission: “This will make it possible to address important and urgent needs of the CEEC leather industry with regard to knowledge building in the sector’s Community ‘acquis’ and in capacity-building of its Business Representative Organisations”. “The Social Sectoral Dialogue could become an effective instrument of industrial policy for the smooth implementation of structural adjustment processes at sectoral level and managing change as long as it is properly supported by public authorities” , concluded the Secretary General.>
Mr. P. Itschert, for the ETUF:TCL, noted in the latest Communication of the Commission that “the bipartite social dialogue is only starting to emerge in most candidate countries” and has to be particularly encouraged at sectoral level. “Yet the social dialogue is an integral part of the Community ‘acquis’.” Furthermore, “only structured and strong employer and trade union associations at national level will be able to take part efficiently in negotiations and other discussions of the European social dialogue, as well as to implement agreements at national level.” In closing the General Secretary offered a few words about a project COTANCE and the ETUF:TCL have decided to launch on the implementation and certification of the European sectoral framework agreement / code of conduct signed in July 2000.
Lastly, European Social Partners COTANCE and ETUF:TCL expressed their confidence in Romania’s potential to face European integration challenges in the leather sector, provided an adequate social and industrial policy is implemented towards sustainability. This should make the country more attractive to domestic and foreign investors. “The two-day conference proved that the social sectoral dialogue in the CEEC’s can be developed when it is appropriately supported.”
Agenda:
Monday,
21 October 2002
Presentation
of the objectives of the seminar
(G. Gonzalez Quijano, COTANCE and P. Itschert, ETUF:TCL)
Introduction by Doru Lascu President of Pielarul
Social aspects: ETUF: TCL Presidency
Item I: EU/Candidate Countries Sectoral Social Dialogue in the tanning sector
Intervention
of Mrs H. Immonen, General Directorate for "Employment and Social
Affairs"
a) Main results of the sectoral social dialogue in the tanning sector
at EU level (EU social partners)
b) Evolution of the sectoral social dialogue in candidate countries
(social partners from candidate countries
Item II: Enlargement: Health and Safety aspects
Intervention
of TUTB (European Trade Union Technical Bureau)
a) Presentation of the
main Community "acquis" in the field of health and safety
b) Analysis of the health
and safety situation in candidate countries
Conclusions of day 1
Tuesday, 22 October 2002
ECONOMICAL ASPECTS: COTANCE Presidency
Item III: The challenge of EU enlargement to Central and Eastern Europe
Intervention of Mrs O. Niiranen, General Directorate “Enterprises”
COTANCE
BSPII (Business Support Programme) project with the textile and
clothing industry.
a)
Main commercial and environmental challenges
b)
Main needs in the candidate countries
Item
IV: Training – Labour market in the tanning sector
a) Initiatives
to make the European work and training market more dynamic
b) Situation of the employment and perspectives for workers of the tanning
sector
COTANCE/ ETUF:TCL Conclusions
End of forum by a Representative of the Rumanian tanning industry
First Socio-Economical EU/CEEC Forum for the Tanning Industry, Budapest, 11/12 September 2001
photo: Mr Itshcert (ETUF:TCL), Mr Delarue (European Commission), Mr Quijano (COTANCE)
COTANCE and ETUF:TCL organised a socio-economic Forum EU/candidate CEEC. The meeting was held on September 10-11, 2001, n Budapest (Hungary).
Agenda:
·
Presentation of the Vienna
report on the socio-economic impact of enlargement for CEEC, by the
authors of the report and DG Enterprise
·
Specific economic aspects
tanning/leather by DG Enlargement
·
Social benefits/social dialogue
by DG Employment/Social Affairs
·
Social aspects – codes of
conduct/fundamental rights with DG Employment
On Saturday September 8 and Sunday September 9 a trade “leather/tanning” fair was held in Budapest. Participants to the forum were able to visit it on Sunday (necessary arrangements will be made for this purpose).
Study on "Competitiveness of Industry in Candidate Countries: Leather and Footwear Sector", Dr D.Hanzl, WIIW (The Vienna Institute for International Economic Studies)
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the complete report here
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Important
note:
The WIIW has conducted two
studies. The first one, "Development and Prospects of the Leather
and Leather Products Sector in the CEEC", includes 40 pages done
for the WIIW Industry Studies Series (see abstract hereunder). The second
study was conducted for the European Commission DG Enterprise and is called
"Competitiveness of Industry in Candidate Countries: Leather and
Footwear Sector", which was presented at the Social-Economic
Forum (250 pages, all candidate countries included).
Abstract:
In Central and
Eastern Europe, as in most other economies, the leather and leather products
sector is a small part of manufacturing, shaped by globalization and easy
relocation of production. It is considered a labour-intensive, low-skill
and low-technology industry, producing basic necessity goods (shoes) but
also luxury items (leather handbags, luggage etc.). In Central Europe,
the sector was neglected during the former command economy and also faced
hard times during transition.
The study investigates the development and prospects of the leather and
leather products sector in the following countries:
Bulgaria
Czech Republic
Hungary
Poland
Romania
Slovakia
Slovenia
In size, the leather and leather products sector is the smallest segment
of manufacturing in most CEECs today and contributes between 0.7% to manufacturing
output in the Czech Republic and about 1.7% in Romania. Specialization
on the sector continued in Slovenia and started later in Bulgaria and
Romania.
In the first phase of transition, which lasted from 1989 to around 1992,
a severe transformational recession hit the region, with the output of
the leather and leather products sector declining even more than the rest
of the economy. After 1993, production growth remained low (Hungary, Poland)
or negative and thus the sector was less successful and dynamic in comparison
to total manufacturing. This was mainly due to unfavourable trends in
domestic production of footwear, the major component of the sector. Negative
factors included stagnant demand due to an income elasticity of typically
less than one for basic necessities and strong competition from other
low-cost producers on domestic and export markets. Hence, production of
the sector was significantly below the 1989 production level in all countries
of the region in 1999.
Also as an employer, the leather and leather products sector holds a minor
position, with shares ranging between 2% in the Czech Republic and Poland
and 4% in Romania. During transition, the sector suffered from drastic
employment cuts, which were the largest in total manufacturing in most
countries.
As is typical for all CEECs and all sectors of manufacturing, wages, productivity
and unit labour costs (exception: Slovenia) in the leather and leather
products sector have generally been much lower than in West European countries,
for which we use Austria as a point of reference. During transition, sectoral
wages rose in all CEECs while productivity increased only in Hungary,
Poland and Romania. Hence, unit labour costs remained constant only in
these three countries and rose in the others. Nevertheless, the estimated
unit labour costs remain at a much lower level than in Austria (except
in Slovenia).
The range for CEECs' unit labour costs in the leather and leather products
sector as a percentage of the Austrian level is:
Bulgaria: 29% - 66%
Czech Republic: 60% - 92%
Hungary: 52% - 79%
Poland: 37% - 51%
Romania: 18% - 67%
Slovakia: 51% - 83%
Slovenia: 109% - 125%
In CEECs' manufacturing exports to the EU, the importance of the leather
and leather products sector differs across country groups: While in Bulgaria
and Romania the sector has a share of 6.6% and 13%(!) of total manufacturing
exports, its role is smaller in the other CEECs, where it accounts for
1.4% to 3.5% of total exports. However, in all countries, the leather
and leather products sector shows an above-average export orientation,
with the main export products coming from the sub-branch 'footwear'.
In CEECs' manufacturing imports from the EU, leather and leather products
also account for rather small shares, ranging from 1.3% in the Czech Republic
to 2.4% in Hungary, again being somewhat larger for Bulgaria and Romania
(4.7% and 7.7% respectively). Most import products came from the sub-branches
'tanning and dressing of leather' and from 'footwear'.
The leather and leather products sector was a net exporter in all CEECs
between 1989 and 1995. Thereafter, however, some countries recorded sectoral
trade deficits and only Bulgaria, Romania and Slovakia maintained their
trade surpluses. Compared to total manufacturing, the sector still shows
a revealed comparative advantage, although it declined during transition
(except in Romania, to a lesser extent in Bulgaria).
On the EU market, in 1989, CEEC leather and leather products exports had
a market share of about 4%, which increased to 12% in 1998 (all shares
without intra-EU trade). This share lay somewhat above total manufacturing
market shares (3% in 1989 and 8% in 1998). On the Austrian market, CEEC
exports had a decisively larger share, accounting for 26% of Austria's
non-EU imports of leather products in 1995, increasing to 35% in 1998.
However, the CEECs are also a major export destination for Austrian leather
exports and absorbed about 44% of Austria's non-EU leather exports in
1998. Ultimately, the CEECs registered a trade deficit with Austria.
The leather and leather products sector is not a prominent target of foreign
direct investment, due to its low rating and reputation, the prevalence
of small and medium-sized enterprises, and the relatively great importance
of outward processing trade, especially with Romania, Bulgaria and Hungary,
which provides greater flexibility.
Future prospects of the sector are not very favourable, due to decreasing
export competitiveness (declining comparative advantage, growing trade
deficits, increasing wages in the long run, growing competition from low-cost
countries) and increasing import competition on domestic markets with
considerable growth potential. Hence it seems that the hard times for
the leather and leather products sector in the CEECs are not over but
will continue in the future.
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the complete report here - Find
out more about the WIIW