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Towards a sustainable TCLF industry in Bosnia & Herzegovina

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27 October, 2023TCLF social partners and government representatives met on 25-26 October in Sarajevo as part of an ILO project to discuss the opportunities and challenges of the new EU Textile Strategy and potential EU diligence rules on the TCLF sector in BiH. 

This week, industriAll European Trade Union and IndustriALL Global Union led an ILO project workshop focused on the textile, clothing, leather, and footwear (TCLF) sector in Bosnia & Herzegovina. Social partners met with the ILO, EU External Action Service, and government representatives to take stock of the current issues facing the sector, and to discuss the potential impacts of the EU’s Sustainable Textiles Strategy and the EU Corporate Sustainability Due Diligence Directive, and the role of social partners in preparing for the changes. 
 
IndustriAll Europe and IndustriALL Global Union were asked by the ILO - as part of their EU-funded project EU4BusinessRecovery - to co-ordinate a social partners’ workshop to help identify how social partners can work together to overcome both current and future challenges facing the sector. The TCLF industries in BiH employ over 33,000 workers, and as an EU candidate country and a major exporter to the European markets, the sector will be deeply impacted by the European Union’s goals to transform the textile ecosystem to be sustainable, circular, and competitive in the global perspective.
 
The social partners discussed the challenges of the green and digital transitions, including moving to renewable energy, access to sustainable raw materials, attracting, educating/training, and retaining skilled workers, and the importance of decent wages, good working conditions and sectoral collective bargaining agreements. These issues were raised with representatives from the Ministry of Energy, Mining and Industry of the Federation of BiH, the Ministry of Economy and Entrepreneurship of the Republic of Srpska,and employers and trade unions, stressing the need for real support from policy makers for the sector and its workers.

 
Judith Kirton-Darling, joint acting general secretary of industriAll Europe, said:

“The EU Sustainable Textiles Strategy will have major impacts for the TCLF sector and workers in BiH. Strong social partners and quality social dialogue will be key in ensuring that the green and digital transitions of the sector are a success, and we will continue to support our affiliates in Bosnia and Herzegovina to ensure that the transitions are fair and just, with no worker left behind. 
 
The move to a more sustainable textiles ecosystem in BiH will be an opportunity, as well as a challenge, and we call on policy makers to support the social partners in transforming the sector to a more sustainable sector, with good quality jobs at its centre.’’ 

The importance of decent wages and moving away from a race to the bottom on low-cost production was identified as a major problem for social partners. Issues related to working conditions and overtime were also raised by trade unions as reasons why people do not want to work in the sector. New legislation, including the EU Directive on adequate minimum wages and legislation on due diligence, along with the current German legislation, and the forthcoming EU Directive on Corporate Sustainability Due Diligence, were all discussed.  Social partners were encouraged to work together to ensure that they are ready for these changes which will impact BiH, both as a supplier to the EU and as a candidate country.   
 
IndustriALL general secretary Atle Høie said: 

“The TCLF industry in Bosnia and Herzegovina plays a significant role in the economy in terms of employment and foreign trade.  It is also important for inter-industry linkages, particularly with the automotive industry.

Despite the country’s complex institutional set up, there are opportunities for growth and sustainable development.  But to be sustainable, the TCLF industry must provide fair wages, safe working conditions and ensure respect for workers’ rights. Due diligence instruments, particularly the German Supply Chain Due Diligence Act and the forthcoming EU Directive on Corporate Sustainability, are relevant to Bosnia and Herzegovina, as there are many European companies sourcing from that country.

Due diligence should be a main item of social dialogue at all levels.

Together with industriAll European Trade Union, we will continue to support our affiliates in their fight to negotiate good collective agreements and achieve decent working conditions in this industry, which is important for the future of the country.”
 

The need to attract young people and upskill and retain workers was the focus of the second day, with vocational education providers sharing their experience and work in this area, including via EU-funded projects. Participants agreed that there is a need for a more consistent package of regulations related to vocational education in Bosnia & Herzegovina to ensure employability of workers and attractivity of the TCLF sector. 


The need for specific training, focused on new skills; short and concise training programmes; the recognition of official and non-official training; and the need for financial support for SMEs to provide training, were all highlighted.

A number of best practice examples were shared as a source of inspiration as to how TCLF companies can make improvements when working with trade unions and workers’ representatives.

Trade union representatives from the TCLF trade unions of the Republic of Srpska and the Federation of Bosnia and Herzegovina called on employers to work with them following the workshop to improve social dialogue and to engage in joint advocacy work towards policy makers. 
 
IndustriAll Europe, IndustriALL Global Union and the ILO have all confirmed their continuing support of the social partners to work towards ensuring a sustainable future for the TCLF industries and their workers.