site.btaLow Pay Alienates Agricultural Workers, Experts Say

The annual remuneration of agricultural workers is lower than in the other sectors of the economy, which is one of the reasons for the labour shortage in agriculture, Institute of Agrarian Economics Executive Director Bozhidar Ivanov said on Monday. He was among the speakers at a discussion on employment and incomes in Bulgarian agriculture, organized by the Federation of Independent Agriculture Unions (FIAU).

Ivanov said the best indicators in the EU are registered in France, where farmworkers' pay accounts for 30% of the cost of the produce. In Bulgaria, the ratio is 15%.

The expert cited data showing that between 2007 and 2019 agricultural workers in the EU decreased by 20%, and worldwide they dropped by 7-8%. The decrease in Bulgaria was almost three times the world rate. "This is more than agriculture can afford," Ivanov commented.

Bulgarian farming is failing to provide steady seasonal employment. According to Ivanov, modernization and the introduction of new labour replacement technologies are sustainable ways to tackle problems in the sector.

Another obvious problem, mentioned several times during the discussion, is labour force aging. Between 2007 and 2020, some 30% of Bulgarian farmworkers were aged 65 and over. Men accounted for 72% of the labour force in the sector.

Bulgarian farming is becoming increasingly business-oriented, which comes at the expense of small farms, Ivanov said.

Bulgarian Circular Economy and Biotechnology Association President Andreya Shterev noted: "The voices of young people are still unheeded, particularly when discussing agricultural and food policies. It is imperative to empower and integrate young people into the green agrifood systems and value chains."

According to Shterev, transforming employment in the sector by creating green jobs for young people is a key factor. "It is necessary to invest in skills, public services, infrastructure and capacity-building to create vibrant rural communities," he suggested.

Svetla Vassileva, a political adviser at FIAU, called for adequate financial incentives to draw young people to the sector. She said the situation with agricultural education is quite critical.

The Chief Economist of the Confederation of Independent Trade Unions in Bulgaria, Lyuboslav Kostov, said that agricultural worker remuneration formulas need adjusting. Labour productivity in the sector has increased, but this is not reflected in the pay levels, he said. "This is the sector where the demand for higher pay has been most justified in 2021 and 2022," Kostov argued.

He noted that the gross value added generated by the Bulgarian economy grew by 8% in 2021, and the portion of it created by agriculture went up by 30% and increased further in the first half of 2022. "The sector is experiencing an upturn. It makes no sense for Bulgaria to be a net importer [of farm produce] instead of a net exporter," the economist said.

This was the first of three discussions at which the social partners (the government, employers and trade unions) intend to identify the problems in Bulgarian agriculture and to consider solutions. The information from the three events will be presented in an analytical report.