An example of a successful social partnership

The TATU “Trade Union Center of Atyrau Region”, together with the State Labor Administration of Atyrau Region, is launching a campaign to conclude a Memorandum of Understanding between Atyrau Region Akimat, LLP “YSS Support Services” and the Territorial Association of Trade Unions “Trade Union Center of Atyrau Region” on cooperation on the stabilization of processes , ensuring labor rights and employment of workers. Such Memorandums are planned to be concluded with each Employer, which will allow timely identification and resolution of labor disputes, ensure salary increases, implement protocol decisions of the regional tripartite commission, create Production Councils, ensure effective work of conciliation commissions, etc.

We present to your attention the MEMORANDUM of mutual understanding between the akimat of Atyrau region, “YUSS Suport Services” LLP and the Territorial Association of Trade Unions “Trade Union Center of Atyrau region” on cooperation inissues of stabilization of production processes, ensuringlabor rights and employment of workers.

This Memorandum of Understanding between the regional akimat, the employer and the trade union on cooperation in stabilizing production processes, ensuring labor rights and employment of workers (hereinafter – the Memorandum) is concluded between:

* Akimat of Atyrau region (hereinafter – Akimat), represented by the first deputy akim of the region Shapkenov Serik Zhambulovich, acting on the basis of the Law of the Republic of Kazakhstan “On local government and self-government in the Republic of Kazakhstan”,

* “USS Support Services” LLP (hereinafter referred to as the Employer), represented by the Director General Clive Cowley, acting on the basis of the Charter of the “USS Support Services” LLP,

* The TOP “Trade Union Center of Atyrau Region” (hereinafter referred to as the Trade Union), represented by the Chairman of Baymukanov Izturgan Uzakbayevich, acting on the basis of the Law of the Republic of Kazakhstan “On Trade Unions in the Republic of Kazakhstan”.

The parties hereby agree on the following:

Article 1. Purposes of the Memorandum

The purpose of this Memorandum is to ensure the stable operation of the production complex, the preservation of jobs and the adoption of measures to ensure the employment of personnel.

Article 2. Measures to stabilize the production process ensuring labor rights and employment of workers

The employer intends to:

1. Ensure stable operation of technological processes at the enterprise, constant monitoring of the implementation of the production program and the implementation of the planned development parameters.

2. Take measures to achieve in the current year the volume of production (work, service) not lower than the level of the past year.

3. Ensure attraction of investments in the further development and modernization of production not lower than the volumes of previous reporting periods.

4. Ensure a further increase in the share of Kazakhstan content in the procurement of goods, works and services, an increase in the number of contracts with small and medium-sized businesses of the Atyrau region.

5. Take measures to ensure a stable financial condition of the company, reduce production costs, save money and increase production profitability;

6. It is mandatory to notify state authorities in advance of any, even insignificant, plans to reduce production, which may result in the release of workers.

7. In case of any reduction in the volume of production of goods (works, services), in coordination with the trade union body (representatives of workers), consider all possibilities for preserving jobs, including the introduction of part-time work.

8. In the event of a temporary suspension of work for economic and production reasons, take measures for the social protection of workers as provided for by the legislation of the Republic of Kazakhstan.

9. Provide information to Akimat and trade union:

* about any case of release of workers due to reduction of staff or staff, including by agreement of the parties, with the expiration of the term of the employment contract concluded for a certain period, on the initiative of employees, the number and categories of workers that it may concern, indicating the positions and professions, specialties, qualifications and wages, not less than one month before the release;

* about the upcoming change in working conditions in terms of the transition of workers to part-time work due to a change in the organization of production, including during reorganization, and (or) a reduction in the amount of work for an employer by at least one month.

10. In order to prevent the reduction of workers to take measures to create temporary jobs, as well as retraining of workers, depending on the production and economic situation of the company.

11. When creating new industries and jobs, consider as a priority the candidates for the vacant position from among those previously released, subject to the qualification requirements.

12. To ensure the development, coordination and approval of a program to increase local (Kazakhstan) content in personnel to replace foreign specialists with Kazakhstani employees after the deadlines for the issued permits, providing for training and retraining of necessary specialists.

13. Together with the authorized educational authorities, to develop and implement measures for the training of specialists of working professions in educational institutions of the region.

14. Ensure timely payment of wages to employees.

15. Prevent social tensions in the workforce, ensure indexation and wage increases for production personnel at least 15% annually.

16. Comply with the legislation of the Republic of Kazakhstan, implement the decisions of the tripartite commission on social partnership and regulation of social and labor relations, the obligations of the general, sectoral, regional agreement on social partnership.

17. Ensure the implementation of the Law of the Republic of Kazakhstan “On Employment” regarding the timely provision of employment centers with information about the availability of vacancies (vacancies) – within three working days from the date of their appearance, indicating the working conditions and pay.

18. Fulfill the established quota for the employment of persons with disabilities, persons registered with a probation service, persons released from places of detention, citizens from among the youth, injured or left to adulthood without the care of parents who are graduates of educational organizations in the manner determined by the authorized body for employment of the population.

19. Consider the issue, in accordance with the Labor Code of the Republic of Kazakhstan, on the establishment of a production council at the enterprise, the election of technical labor inspectors and the further procedure for their implementation of occupational safety and health monitoring.

20. Ensure the effective work of the conciliation commission, which is a permanent body for the timely consideration of individual labor disputes in order to prevent labor disputes.

21. According to the results of monitoring and compliance of the employer’s activities with labor laws, take part in the declaration procedure for the subsequent receipt of a certificate of trust.

22. Keep in the collective agreement for the current year existing social obligations and guarantees to employees of the enterprise.

23. Ensure the strict implementation of the signed memorandum and the terms of the collective agreement of the enterprise.

Akimat intends to:

1. Take measures aimed at solving the problematic issues of the enterprise’s production activities, creating a favorable environment for attracting investments and introducing innovations.

2. Provide full support and assistance in the implementation of measures to maximize the capacity of the enterprise and its profitable activities.

3. Ensure the organization of performance and constant monitoring of the implementation of the production program of the enterprise and the planned development parameters.

4. Operatively hold meetings of the tripartite commission on social partnership on compliance with labor laws and meetings of the Anti-Crisis Headquarters and, if necessary, take specific proactive measures.

5. Coordinate the joint work of the parties on the implementation of this memorandum.

6. Together with the employer and the trade union, conduct in the work collective an explanatory work on the measures taken to stabilize production activities and prevent the risks of social and labor conflicts.

7. Comply with the legislation of the Republic of Kazakhstan, comply with the decisions of the tripartite commission on social partnership and regulation of social and labor relations, the obligations of the general, sectoral, regional agreement on social partnership.

8. Provide expert advice and advice to ensure that the employer and the union have obligations in accordance with this memorandum.

The union intends to:

1. In order to maintain stability and prevent social – labor conflicts, conduct explanatory work in the workforce on measures taken by the administration of the enterprise and government bodies to stabilize production processes.

2. Assist employees in compliance with the rules of internal labor regulations and labor discipline, safety rules and labor protection.

3. Comply with the legislation of the Republic of Kazakhstan, implement the decision of the tripartite commission on social partnership and regulation of social and labor relations, obligations of general, sectoral, regional agreement on social partnership, collective agreement.

4. Take measures to prevent social and labor conflicts and to ensure that members of the trade union observe the procedure for organizing and conducting strikes, peaceful assemblies, rallies, processions, pickets and demonstrations established by the legislation of the Republic of Kazakhstan.

Article 3. Final Provisions

1. Each of the parties to this memorandum recognizes its responsibility within its authority and undertakes to cooperate in resolving the problems that have arisen on the principles of mutual agreement and agreements that have taken place.

2. In case of disputes and disagreements in the interpretation or application of the provisions of this Memorandum, the Parties shall resolve them through consultations and negotiations.

3. This memorandum was drawn up in 3 copies having the same legal force, one for each of the parties.

4. All changes and additions to the Memorandum are made upon agreement of all parties through consultations and negotiations.

5. This memorandum takes effect from the moment of its signing between the parties.

6. Control over the implementation of this Memorandum shall be entrusted to each of the Parties: the employer, the TOP “Trade Union Center of Atyrau Region” and the Akimat of Atyrau Region.