Georgia - Labour Code reforms still ongoing (2010)

In 2006, the government pushed through a major reform of the Labour Code, increasing flexibility to the point at which workers were left with virtually no protection. Not only did the reform have a negative impact on collective bargaining, it also eliminated any government consultation with trade unions regarding dismissals and gutted labour inspection. The reform was so far-reaching that even the major employers’ associations raised some concern. In 2009, a tripartite process was initiated with the assistance of the ILO to rectify parts of the Labour Code, including provisions on discrimination in employment and recruiting. However, the American Chamber of Commerce in Georgia vigorously and publicly opposed the reforms, and issued a statement on 20 October denouncing the changes as unfair to business.