Under Bulgarian law, all workers are entitled to form or join unions of their own choosing. Many enterprises have made enormous strides in the past year in realizing such rights. Podkrepa, the independent trade union movement, has spread rapidly through all sectors of the work force, and has claimed over 300,000 members. As of early 1990, the Confederation of Independent Trade Unions of Bulgaria was reconstituted as an organization formally independent of any political party, as distinct from its previous status as an officially-sponsored, party-controlled organization. Strikes have been recognized as a practical means of conflict resolution, and hundreds of warning and actual strikes have been conducted. b. Right to Organize and Bargain Collectively With the appearance of competing union organizations, workers have for the first time in decades a choice of organizations, as well as the freedom to decline to join any trade union. Bargaining has gone on in many enterprises, but agreements reached have not always been implemented in a timely manner. C. Prohibition of Forced or Compulsory Labor A 1989 decree providing for state redirection of workers where necessary under critical circumstances (a measure adopted as a result of large-scale departures of ethnic Turkish Bulgarians) was rescinded at the end of 1989. d. Minimum Age for Employment of Children Under the labor code, 16 years is the minimum age for employment. Workers under the age of 18 cannot engage in heavy, harmful, or dangerous work, and their workweek is limited to a maximum of 36 hours. These provisions are enforced. e. Acceptable Conditions of Work Most adults work 5 days of 8.5 hours work. The average monthly wage as of late 1990 is about 350 lev, or about $70 at the current cash exchange rate. Even though wages expressed in lev are rising, the dollar value has been dropping due to the change in exchange rates. Minimum wage earners earn considerably less than the average. Between 40 and 60 percent of Bulgarians are considered to be at or below the "social minimum." Rapid inflation is gaining strength, and a temporary wage indexation measure which is in effect through the end of 1990 will compensate for some, but perhaps not all of the adverse effects on purchasing power. No reliable figures are available on such matters as industrial accidents. Standards of enforcement of the safety program appear to vary greatly. f. Rights in Sectors with U.S. Investment U.S. investment in Bulgaria to date has been minimal. BULGARIA No sector by sector data is available on investments in Bulgaria. * Section 8 is an abridged version of Section 6 of the Bulgaria country report included in the Department of State's Country Reports on Human Rights Practices for 1990, submitted to the Congress January 31, 1991. For a comprehensive discussion of worker rights, please refer to that report. CANADA Key Economic Indicators (Millions of Canadian Dollars (C$) Unless Otherwise Noted) 1/ 1990 projections supplied by various forecasters, including the Conference Board of Canada. 1. General Policy Framework CANADA Canada has a mixed economy. Production and services are predominantly privately owned and operated. However, the federal and provincial governments are significantly involved in the economy. They provide a broad regulatory framework and engage in considerable redistribution of wealth from high income individuals and regions to less advantaged persons and provinces. Also important are government-owned Crown Corporations such as the Canadian Broadcasting Corporation, the Canadian National Railway Co., and Petro-Canada. Canada is a major producer of natural resources and related products. Forestry, mining, and the energy sector are leading exporters. The economy is also fully industrialized and produces highly sophisticated consumer goods and capital equipment. Canada is the most important trading partner of the United States, with merchandise exports of US$89.6 billion to the United States and merchandise imports from the U.S. valued at US$78.9 billion in 1989. Vehicles and parts accounted for 30 percent of U.S. merchandise exports to Canada in 1989. U.S. exports of capital equipment and machinery also increased markedly in response to sharp increases in Canadian investment spending. The stock of total foreign direct investment in 1989 was C$119 billion, of which U.S. foreign direct investment amounted to US$81 billion. In 1987, 43 percent of the assets of Canadian manufacturing companies were foreign owned. Of this total, 78 percent belonged to the United States. Federal government economic policies since late 1984 have emphasized reduction of public sector interference in the economy and promotion of private sector initiative and competition. The Canadian government dismantled the highly interventionist National Energy Program and converted the restrictive Foreign Investment Review Agency into Investment Canada, which was given a mandate to encourage foreign investment. Both federal and provincial governments undertook privatization of selected Crown Corporations. The deficit and related expansion of government debt are the most pressing problems facing fiscal policymakers. The federal government made some progress in slowing the growth of public debt after 1984, reducing the annual federal deficit from C$38.3 billion in fiscal year 1985 (FY-85) to C$28.1 billion in FY-88. However, it rose to C$28.9 billion in FY-90 and is projected to reach C$30 billion in FY-91. Government options to reduce the deficit are constrained by the high level of non-discretionary spending in the federal budget. Statutory social transfers to individuals and to provincial and local governments account for 40 percent of the FY-91 federal budget, while public debt service payments account for an additional 28 percent of projected spending. Even reduction of subsidies for regional development and other remaining discretionary programs, such as defense and foreign aid, would require the government to make difficult political decisions. In 1991, the government proposes to introduce a multi-stage value-added sales tax known as the Goods and Services Tax, to contribute to the government's deficit reduction effort among other objectives. CANADA The Bank of Canada is a publicly-owned, quasi-independent central bank. The Governor of the Bank is appointed by the government, while the Bank's Board of Directors are private sector representatives from across the country. The Bank rate or interest charge on central bank advances is set 0.25 basis points above the average yield on 90-day Treasury bills at the weekly auction conducted by the Bank of Canada. The authorities may participate in the auction to influence its outcome. Other tools used to control the money supply include management of the government's cash deposits with the chartered banks, purchase and resale agreements with money market participants, and open market operations. 2. Exchange Rate Policies and The Canadian dollar is a fully convertible currency, exchange rates are determined by supply and demand conditions in the exchange market. There are no exchange control requirements imposed on export receipts, capital receipts, or payments by residents or non-residents. The Bank of Canada operates in the exchange market on almost a daily basis for purposes of maintaining orderly trading conditions and smoothing rate movements. Between December 31, 1987 and September 30, 1990, the Canadian dollar appreciated 12.6 percent against the U.S. dollar and by nearly 40 percent on a trade weighted basis against the Group of Ten currencies. During the same time period, Canada's official foreign exchange reserves increased from US$8.2 billion to US$18.3 billion. Prices for most goods and services, including land, buildings, capital equipment, and consumer goods are established by the market without government involvement. Energy prices were decontrolled in 1985 with the dismantling of the National Energy Program. There are some important exceptions, such as prices for health services, which are regulated by the government. The government completed privatization of the national airline, Air Canada, in 1989, and introduced legislation in Parliament in October 1990 which will allow it to privatize the national oil company, Petro-Canada. The principal sources of federal tax revenue are corporate and personal income taxes, the manufacturers' sales tax, unemployment insurance contributions, customs duties, and energy taxes. In 1987-88, the government reduced direct taxes on the energy sector and in 1988 further reform lowered corporate and personal income tax rates and eliminated or reduced exemptions and credits. This brought Canadian personal and corporate income tax rates more into line with comparable U.S. rates and reduced many of the distortions in the former income tax system. The government is planning to reform the federal sales tax system, replacing the present manufacturer's sales tax and telecommunications tax with a multi-stage value-added tax on consumption. Known as the Goods and Services Tax (GST), this tax will apply to most goods and services, including imports, sold in Canada, and is scheduled to go into effect in January 1991 at a seven percent rate. |