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The project is implemented in the framework of The East-West Management Institutes (EWMI) Policy, Advocacy, and Civil Society
Development in Georgia (G-PAC) Program, funded by United States Agency for International Development (USAID).
The study is made possible by the generous support of the American people through the USAID.
The content is the responsibility of the PMC Research Center and do not necessarily reflects the view of USAID, the United States
Government, or EWMI.
ANNEX #1 Survey Results Brief Overview
1.1. Conclusion of the contract/Probationary period 1.1.1.Statement #1
Statement #1 - Labor contract shall be concluded in written form in case if laborrelations continues for more than three months.Figure #1 - The conclusion of an agreement in a written form and its possible impact on thecompany
Sample sizeN=251
2.6%
10.6%
59.2%
27.5%
0.1%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
87%
13%
1.7%
10.0%
26.0%
44.6%
17.7%
Very nagative
Nagative
No effect
Positive
Very positive62%
38%
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1.1.2. Statement #2
Statement #2 - Employer has the right to conclude a fixed-term contract withemployee only in certain circumstances. In particular when the work is related to:
(1) performance of the work of particular volume; (2) seasonal work; (3) temporaryincrease of the volume of work (4) substitution of the employee, who is not
working temporarily, on the bases of suspension of labour relations (5) due to other
objective circumstances.
In any other case the employer has no right to conclude fixed term labour
contract.
Figure # 2 - Fixed term contract and the potential impact on the com pany
Full combination of selectiveN=251
1.1.3.Statement #3Statement #3 In case of collective agreement the employer has no right toconclude individual contract with the employee for the same position, with worse
contract term than provided in collective agreement
Figure # 3 - Collective agreement and its possible impact on the com pany
2.5%
19.6%
68.1%
7.2%
2.6%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
75%
22%
1.4%
16.8%
24.6%
52.5%
4.7%
Very negative
Negative
No effect
Positive
Very positive57%
18%
4.2%
30.7%
56.2%
8.0%
0.9%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
64%
35%
2.6%
32.6%
26.5%
34.4%
3.9%
Very negative
Negative
No effect
Positive
Very positive38%
35%
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Sample size N=251
1.1.4.Statement #4Statement #4 In case of collective agreements employer, within the frame ofcompanys material and financial capacity, is obliged to provide trade unions withconditions necessary for their operation (provide premises, equipment,communication means) at companys own expenses.
Figure # 4 - Collective agreement and its possible impact on the com pany
Sample sizeN=251
1.1.5.Statement #5 Statement #5 - An employer shall reimburse the probation period. The amount ofreimbursement shall be determined by agreement between employer and
employee.
Figure # 5 - Probationary period and its possible impact on the com pany
Sample sizeN=251
7.2%
45.3%
40.7%
3.7%
3.1%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
44%
53%
6.3%
41.5%
21.9%
26.5%
3.8%
Very negative
Negative
No effect
Positive
Very positive30%
48%
2.1%
17.0%
63.4%
15.6%
1.9%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
79%
19%
1.2%
15.1%
25.6%
45.2%
12.9%
Very negative
Negative
No effect
Positive
Very positive 58%
16%
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1.1.6. Expected impact of the initiated amendments, evaluationbased on all statementsFigure 6 expected impact of the initiated amendments on the company
Sample sizeN=251note: total responses are more than 100 %, because more than one answer was permitted
Figure #7 measures taken by the com pany in case of changes/problems
note: total responses are more than 100 %, because more than one answer was permitted
10.5%
9.1%
29.2%
47.8%
13.1%
Additional staff will be required
Legal costs will increase
Administrative costs will increase
Nothing will change
I dont know
Will reduce office expenses
Will reduce employee benefits
Will reduce salaries
Will reduce employees
Will abolish the bonus system
Will reduce the corporate event costs
Will refrain from requiring new staff
Will reduce marketing/PR costs
Won't change anything
Do not know
15.8%
7.5%
18.0%
18.5%
15.5%
15.9%
25.0%
13.3%
8.4%
16.7%
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1.2.Overtime Work1.2.1.Statement #6
Statement 6 - Employees shall work for no more than 40 hours per week, excludingbreaks and holidays. Working more than 40 hours is considered as overtime work.
Figure # 8 Definition of overtime definition and its potential impact on the com pany
Samle sizeN=2511.2.2.Statement #7
Statement #7 - An employer shall reimburse employee additional overtime work orprovide him/her with an additional vacation time.
Figure #9-Compensation for overtime work and its potential impact on the company
Sample sizeN=251
1.2%
20.4%
60.7%
15.4%
2.3%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
76%
22%
2.7%
20.6%
26.6%
38.7%
11.4%
Very negative
Negative
No effect
Positive
Very positive50%
23%
0.6%
15.4%
69.5%
13.8%
0.7%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
83%
16%
1.4%
18.3%
22.8%
47.1%
10.4%
Very negative
Negative
No effect
Positive
Very positive57%
20%
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1.2.3.Statement #8Statement #8 - In case of employee dismissal, if s/he has unused vacation, anemployer shall compensate it at his own expanses, proportionally to labour
relations.
Figure # 10 Compensation for unused vacation and its potential impact on the company
Sample sizeN=2511.2.4. Expected impact of initiated amendm ents taken into consideration all statementsFigure # 11 The expected impact of initiated amendm ents on the company
Samle size N=251note: total responses are more than 100 %, because more than one answer was permitted
3.9%
19.5%
65.7%
8.3%
2.6%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
74%
23%
2.3%
22.0%
20.5%
48.2%
7.0%
Very negative
Negative
No effect
Positive
Very positive
55%
24%
31.6%
5.6%
12.4%
52.9%
0.1%
0.1%
0.7%
6.1%
Salary expenses will increase
Legal expenses will increase
Administrative expenses will increase
Nothing will change
The number of staff will increase
Some expanses will be balance
Refused to answer
Do not know
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Figure # 12 - measures taken by the com pany in case of changes/problems
note: total responses are more than 100 %, because more than one answer was permitted
Will reduce office expenses
Will reduce employee benefits
Will reduce salaries
Will reduce employees
Will abolish the bonus system
Will reduce the corporate event costs
Will refrain from requiring new staff
Will reduce marketing/PR costs
Will do nothing
Will stop activities
Do not know
15.5%
6.8%
26.6%
14.4%
20.2%
24.1%
25.0%
18.1%
15.8%
0.5%
14.4%
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1.3.Employm ent contract suspension/termination
1.3.1.Statement #9Statement #9 an employer shall not dismiss an employee but suspend the labour
relationships if an employee is temporarily unable to work, for not longer than 40
calendar days consecutively and 60 calendar days in total, during 6 months
Figure # 13 Termination of employee contract in case of temporary incapacity and its possibleimpact on the company
Sample sizeN=251
1.3.2.Statement #10 Statement #10 The employer can terminate labour contract with an employeeonly in case of flagrant violation, however if there is no flagrant violation and the
employee violated any of obligations, in order to dismiss the employee, the
employer should already have used any disciplinary measure against him/her (for
example warning)
The employer shall not dismiss the employee for ordinary violation, if warning is
not used at least once.
1.2%
27.4%
61.3%
9.4%
0.7%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
71%
29%
2.7%
28.7%
23.4%
38.8%
6.4%
Very negative
Negative
No effect
Positive
Very positive45%
31%
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Figure # 14 Termination of em ployee contract in case of flagrant violation and its possible impacton the company
Sample sizeN=2511.3.3.Statement #11
Statement # 11 The employee has right to request for written justification ofhis/her dismissal, which should be issued by the employer within 7 calendar days
upon submission of the request.
The employee has right to appeal the decision on termination of labour contract at
the Court, within 30 calendar days upon the receipt of written justification
Figure # 15 Employees right to appeal against his dismissal in court and its possible impact on thecompany
Sample sizeN=251
2.0%
13.9%
71.6%
12.6%
Do not agree at all
Do not agree
Agree
Completely agree
84%
16%
1.7%
17.1%
28.6%
45.5%
7.1%
Very negative
Negative
No effect
Positive
Very positive53%
19%
4.5%
19.7%
68.7%
6.9%
0.2%
Do not agree
Do not agree
Agree
Completely agree
Do not know
76%
24%
4.1%
24.9%
28.3%
39.2%
3.5%
Very negative
Negative
No effect
Positive
Very positive
43%
29%
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1.3.4.Expected impacts of chan ges taking into consideration all statementsFigure # 16 expected impacts of changes on the company
Sample sizeN=251note: total responses are more than 100 %, because more than one answer was permitted
Figure # 17 measures taken by the com pany in case of changes/problems
note: total responses are more than 100 %, because more than one answer was permitted
17.5%
16.9%
10.8%
55.0%
0.1%
0.7%
8.1%
Additional staff would be required
Legal costs would increase
Administrative costs would increse
Nothing would change
Company costs would increase
Resufesd to answer
I do not know
We would reduce office expenses
We would reduce employee benefits
We would reduce salaries
We would reduce employees
We would abolish the bonus system
We would reduce the corporate event costs
We would refrain from requiring new staff
We would reduce markeing/PR costs
We would do nothing
We would accomplish all of the above
Refused to answer
Do not know
17.4%
8.8%
8.4%
11.6%
17.3%
24.7%
23.6%
17.9%
9.4%
0.4%
2.1%
20.1%
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1.4.Mass dismissal1.4.1.Statement #12
Statement #12 In case if the employer wants to implement collective dismissal(dismiss at least 50 employees within 15 calendar days) s/he shall notify the
ministry in written form. The term for notification depends on number of
employees in the organization and ranges between 15-30 days. If the management
of the company with 100 500 employees wants to dismiss 50-100 employees, the
Ministry shall be notified 15-30 days prior.
Figure # 18 mass dismissal and its possible impact on the com pany
Sample size N=251
Figure # 19 Business leaders attitude to increasing the role of State in employee-employerrelations
Sample sizeN=251
13.5%
35.6%
44.7%
4.4%
1.8%
Do not agree at all
Do not agree
Agree
Completely agree
Do not know
49%
49%
13.0%
31.3%
22.5%
29.9%
3.3%
Very negative
Negative
No effect
Positive
Very positive33%
44%
8.2%
29.2%
22.6%
32.1%
0.5%
0.7%
6.6%
Very negative
Negative
Neutral
Positive
Very positive
Refused to answer
Do not know
37%
33%
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1.5.Dismissal1.5.1.Statement #13
Statement #13 - After termination of labour relations, the use of experience obtainedduring employment period by the employee for benefit of competitor employer is
prohibited by the Law.
Figure # 20 Dismissal and its possible impact on the com pany
Sample size N=251Figure # 21 - The expected impact of changes on the company
Sample sizeN=251note: total responses are more than 100 %, because more than one answer was permitted
7.0%
27.8%
58.0%
7.2%
Do not agree at all
Do not agree
Agree
Completely agree
66%
35%
6.9%
29.0%
25.6%
33.5%
5.1%
Very negative
Negative
No effect
Positive
Very positive
39%
36%
36.0%
8.6%
59.6%
0.7%
1.6%
The risk of flowing the information would increase
Internal procedures would complicate
It would not be dangerous for the company
Terms,how long it is forbidden to use the knowledge
for the other companies,would be set
Do not know
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1.6.2.Statement #15Statement #15 The Ministry has right to get involved in collective dispute asmediator at own initiative, without the parties request, in order to support the
parties in reaching agreement.
Figure # 24 Government interference in collective disputes and its possible impact on thecompany
Sample size N=2511.6.3.All the possible impact of changes in total provisionsFigure # 25 - The possible impact of changes on the company
Sample size N=251note: total responses are more than 100 %, because more than one answer was permitted
19.6%
52.8%
24.1%
1.2%
2.3%
Absolutely do not agree
Do not agree
Agree
Absolutely agree
Do not know
25%
72%
19.2%
44.2%
18.5%
17.0%
1.1%
Very negative
Negative
No effect
Positive
Very positive 18%
63%
29.6%
18.5%
35.9%
5.2%
20.6%
5.6%
0.1%
0.7%
0.7%
7.4%
The probability of corruption would increase
Manufacturing process would interrupt
Business environment would deteriorate
Business environment would improve
Employee rigths would be more protected
nothing would change
Excessive bureaucracy
Changes would positively reflect on both sides
Refused to answer
Do not know
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1.7.Strike/Lockout1.7.1.Statement #16
Statement #16 The employees or employers have right for strike or lockout onlyafter 21 days upon notifying the Ministry in written. Conciliation procedures will be
conducted within these 21 days, in which the mediator nominated by the minister
can also participate.
Figure # 26 The right of strike/lockout and its possible impact on the com pany
Sample sizeN=251
1.7.2.Statement #17Statement #17 Before starting strike or lockout the parties shall not later than 3days prior to strike or lockout notify the Minister in written form regarding place
and nature of strike or lockout
Figure #27 The right of strike/lockout
Sample sizeN=251
11.4%
41.0%
42.6%
3.7%
1.3%
Absolutely do not agree
Do not agree
Agree
Absolutely agree
Do not know
46%
52%
12.5%
37.0%
18.1%
29.3%
3.1%
Very negative
Negative
No effect
Positive
very positive
32%
50%
13.80%
36.50%
43.70%
3.50%
2.50%
Absolutely agree
Do not agree
Agree
Absolutely agree
Do not know
47%
50%
12.40%
35.00%
21.40%
28.80%
2.40%
Very negative
Negative
No effect
Positive
Very positive
31%
47%
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1.7.3. All the possible impact of changes in total provisions
Figure #28 Position about increasing the role of the government in the same relations
Sample sizeN=251
1.8.General assessmentFigure # 29 expected impact on the business environment and creating new jobs
Sample sizeN=251
Annex 1Research Methodology
11.9%
32.5%
20.4%
29.3%
1.5%
4.4%
Very negative
Negative
Neutral
Positive
Very positive
Do not know
44%
31%
Very negative
Negative
No effect
Positive
Very positive
Do not know
7.5%
25.6%
12.5%
32.7%
2.6%
19.1%
9.9%
21.2%
19.6%
3.3%
21.0%
33%
35%
31%
28%
3.3%
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Quantitative research was conducted using face to face interviews. 251 managers of business organizations
were interviewed (See Table 1: Description of Research Methodology).
Note: Data were weighted according to enterprise size.
Table1 Description Research Methodology
Research method Quantitative research
Research technique Face to face interview
Target sampleManagers of small, medium and large-sized
enterprises
Research area Tbilisi
Sample size 250 enterprises
Sampling method Quota sampling
Sampling error 6-7%
Average length of interview 20 minutes
Period of Research April 2013
Overall, 1339 enterprises were contacted by telephone. 315 of them agreed to be interviewed. Face to face
interview was conducted with 251 organizations. Enterprises were grouped in a following way: (See Table 2:
Group of enterprises)
Table 2Research Methodology
Non-Financial Financial
Small-sized enterprise 97 3
Medium-sized enterprise 72 3
Large-sized enterprise 73 3Total 242 9
Interviews were conducted mainly with Executive/Managing Directors (73%), relatively small
number of respondents were Financial and Operational Directors (11%-11%). Presidents, Deputy
Directors and HR Directors were also interviewed (4%).
83% and 13% of participating organizations are limited liability companies and individual
entrepreneurs relatively. Only a small number of joint stock companies and general partnerships
were interviewed (4%).
More than half of enterprises interviewed by telephone are service providers (54%), every third of
the respondent companies operates in commerce sector (29%), only a small number of manufacturing
and construction companies participated in survey (7-8%). Interviews were conducted with financial
organizations in compliance with quota sampling methodology.