Uzbekistan Enhances Labor Rights with Union-Driven Reforms

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Uzbekistan Enhances Labor Rights with Union-Driven Reforms

Uzbekistan is celebrating the 120th anniversary of its trade union movement, marking a significant evolution in labor rights and workplace reforms. Once mainly ceremonial, unions are now pivotal in shaping labor policies and ensuring social stability amid the country’s rapid economic transformation.

Trade Unions as Agents of Change

At a recent congress of the Federation of Trade Unions of Uzbekistan (FTUU), delegates united with international observers to evaluate the advancements in worker rights and social dialogue. The atmosphere reflected a shared commitment to the profound transformation taking place within Uzbekistan’s labor landscape, driven by essential legal and institutional reforms where trade unions are actively involved.

Revised Labour Code Initiated in 2019

A cornerstone of this transformation is the revised Labour Code, implemented in 2019 with guidance from the International Labour Organization (ILO) and collaboration with social partners, including the FTUU. Key features of the new code include:

  • Clear frameworks for employment contracts and collective bargaining.
  • Legal requirements for equal pay for men and women.
  • Strengthened labor inspection and monitoring systems.

This code aligns with the ILO’s “Decent Work” agenda, promoting safe working conditions, formal contracts, and social protection.

Monitoring and Supporting Vulnerable Groups

Uzbekistan’s trade unions have transitioned from administrative bodies to proactive advocates for reform. This shift has allowed the FTUU to extend its influence from public-sector venues to the private sector, agricultural work, and informal employment.

Concrete Outcomes from Union Efforts

One notable achievement occurred in a textile cluster near Namangan, where union monitoring identified gender-based pay disparities. This led to wage adjustments for over 400 women workers, showcasing the effective application of the new equal-pay principle within the Labour Code.

Structured Social Dialogue

Structured cooperation among the government, employers, and workers is central to Uzbekistan’s labor reform strategy. The National Council on Social Partnership serves as a forum to discuss labor policies, including:

  • Minimum wage policy
  • Vocational training
  • Occupational safety
  • Collective bargaining

As a result of this collaboration, the Council facilitated a 12% increase in the minimum wage for the cotton sector effective January 1, 2024, benefiting around 300,000 agricultural workers.

Aligning with International Standards

According to Akiko Gono, President of the International Trade Union Confederation (ITUC), Uzbekistan is successfully aligning its labor policies with international standards. This progress reflects the essential role that trade unions play in safeguarding workers’ rights and contributing to sustainable development.

Recent Progress and Ongoing Efforts

Recent assessments from the World Bank reveal an increase in wage and salaried employment, highlighting the government’s commitment to implementing bold reforms for better jobs and enhanced social protection.

As Okhundjon Isaev of the FTUU stated, significant results have emerged in the last five years, with active monitoring of labor contracts and improving conditions in agriculture and manufacturing. The unions’ advocacy extends to marginalized groups, including women, individuals with disabilities, and seasonal workers.

Opportunities for Investors

The evolving labor framework in Uzbekistan presents new opportunities for businesses and investors. A robust labor-rights system, bolstered by trade-union oversight, mitigates risks of disputes and compliance failures. The increasing formalization of employment and improved inspection mechanisms will ensure compliance with international standards, particularly in critical sectors such as textiles and agribusiness.

In conclusion, Uzbekistan’s commitment to enhancing labor rights through union-driven reforms not only strengthens social dialogue but also paves the way for sustainable economic growth.