The social dialogue and industrial relations in Bulgaria are developing in an unfavorable environment of political instability, steady economic growth, low absorption of EU funds and impending unpopular reforms in such areas as health care, education, pension and social assistance systems and others. A trend towards decentralisation of collective bargaining and abandoning the practice of extending the branch collective agreements is observed. All these developments are gradually diminishing the collective bargaining coverage.
The minimum wage remains one of the important tools influencing income policy, but its increasing faces more and more intensified opposition from employers' organisations. For the trade unions of strategic importance are the questions of improving the sectoral and branch social dialogue, the establishment of a common procedural framework for conducting collective bargaining at various levels and the provision of the necessary information to the negotiating teams.
"The economy of supply" imposed in Bulgaria through historically low tax rates, a flat tax and consistent reduction of social security contributions all these representing steps in favour and in support of the business, exhausted its possibilities without ensuring economic prosperity, adequate employment and better living standards. Instead, the processes of social stratification and income inequalities deepened.