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26 July, 2010
The ICEM-affiliated Mongolian union, the Federation of Energy, Geology and Mining Workers' Trade Unions (MEGM), hosted ICEM General Secretary Manfred Warda and Asia-Pacific Regional Contact Person Phee Jung-sun recently.
Warda commended accelerated development in Mongolia over recent years, noting significantly improved infrastructure in the country. It is positive for the country that foreign investment has increased rapidly, and resource-rich Mongolia can benefit from such investment through exploration and development of gold mines and construction of power plants. Major investors are from Canada, China, and the US.
MEGM President Gambold indicated that union members are facing new challenges through this period of foreign investment. Government and employers are attempting to change current labour laws toward creating a more “flexible” labour market in order to “adapt to the global economy.”
This means fewer restrictions on temporary work agencies, increasing the numbers of precarious jobs in the country. This is being countered by trade unions of Mongolia, which have created a new working group that will submit a counter proposal to the proposed legislation.
The government is introducing a programme of privatisation of state-owned enterprises in the telecommunication and energy sectors. A number of major investment contracts with foreign companies are due to be signed during the second half of 2010.
The ICEM, working with the local ILO office, the International Trade Union Confederation (ITUC), and other Global Union Federations, will be supplying technical assistance for these critical issues to be addressed, so as to build a firm foundation for sustainable development in Mongolia, in line with ILO international labour standards.
The experiences in many Asian countries, notably Korea and Vietnam, on business contracts with foreign companies are that these foreign companies often demand long-term contracts that are unacceptable with respect to labour protections and profit sharing.
“It is my sincere hope and firm belief that Mongolian government should listen to opinions of social partners. Through social dialogue and consensus, the government can build the confidence and mutual faith,” stated Warda.