Cuts in public administration, low incomes and a lack of dialogue in planning reforms are creating tensions among workers, Atanas Katsarchev, Chief Economist of the Podkrepa Confederation of Labour, told BTA on Friday. He was in Pernik for a regional council meeting of the trade union.
The structures affected include the Social Assistance Agency and the National Social Security Institute, Katsarchev said. Plans have already been announced for changes in the regional health inspectorates, while a proposal to reduce the number of social assistance directorates from 28 to 13 is under discussion.
The trade union has sent letters to state institutions seeking to step up negotiations at sectoral and branch level. Katsarchev said, however, that in many places there was insufficient information about the planned changes: “We learn from the media or through other channels what the government intends to do.”
In his view, staff cuts should be preceded by consultations with employees and an analysis of the expected results. He expressed doubt that reducing staff would automatically improve administrative services and warned that it could make things even more difficult for citizens seeking social assistance.
Katsarchev identified workers’ purchasing power as a key problem. He said that curbing wage growth at current price levels would put households under pressure, while proposed changes to the minimum wage could adversely affect the lowest income groups.
Among the tax measures under discussion, he highlighted an increase in the tax relief for parents and changes to food vouchers. The government has proposed an increase in the maximum monthly food voucher allowance per employee from EUR 102 to EUR 200 and a 7% tax on the vouchers, while the trade union suggests that food vouchers up to the current limit remain tax-exempt.
Podkrepa’s chief economist expects social tensions to mount in the autumn unless solutions are found to problems relating to incomes and working conditions.
In his view, the 2027 state budget will show whether the government is prepared to change its policy in the interest of workers, pensioners and families with children.
Cuts in Public Administration, Income Policy Create Tensions among Workers, Podkrepa Union Says THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-09 12:25:30
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