12,500 railway workers to have 10% salary increase from December

The collective labor dispute between the Georgian Railway and their employees, launched in July, ended up with a mediation agreement as a result of which 12,500 railway workers will see 10% salary raise from December 2019.

The information was released by the New Georgian Railway Trade Unions, adding as a result of the mediation, it was determined that at the end of the year the employees of the railway will receive equal bonuses, divided to all employees and it will amount GEL 333 per employee.

The New Georgian Railway Trade Unions also released the main points of the reached agreement:

• The 10% salary increase announced from March 1, 2020, will be implemented and commenced on December 1, 2019. As a result of the agreement the salary budget will get additional GEL 3 million from December and by GEL 15 million in total which will enable to raise the salaries of 12,500 workers.
• The agreement eliminates any additional criteria, like warnings, bulletins, assessments and complaints, and in the last quarter of this year, the bonus budget, around GEL 4 million, will be distributed in accordance with the principle of solidarity equally to these 12,500 railroads. This will be around GEL 333 per worker.
• Also, in addition to the money gifts planned from 2020- GEL 200 per worker for New Year and another GEL 200 gift for Easter, the employees will also receive GEL 200 for the Day of Railway Workers, which will increase the bonus budget by GEL 2.5%.

Georgian railway also reported about the reached agreement, saying the mediation process between the Management of the Georgian Railway and the Railway New Trade Union completed successfully. According to the information, during the mediation process, the parties exchanged detailed information on the needs of the employees as well as the company’s opportunities.

“The parties have found a mutually acceptable solution and an agreement has been achieved. As a result of an agreement with the management, the railway New Trade Union waived the right to strike and consequently no strike will take place,” the company says.

The statement also reads that from June 2021 annually, after the publication of the audited financial results, the negotiations will be held for a segmented review of wages, taking into account the profitability of the company.

In July 2019, the employees of Georgian Railway requested an increase of salaries by 50%, adding if their demand is not met, they will launch a large-scale strike on August 10, however, later, the workers said that they agreed if their salaries would be increased only by 10%.

The mediation process was facilitated by the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia.