"Together Against Unregistered Work!" Conference
Mr. Basesgioglu, Minister of Labour and Social Security: "Informal employment has its damages on the government, employers and workers. After we took office, we reduced the costs of employment and left a resource off 11 billion YTL to the sector. So what was the response of the business word to this step? There is so far nothing that reached me."

ANKARA (AA-22.02.2007)- Mr. Murat Basesgioglu, Minister of Labour and Social Security said the government, employers and workers suffer considerably from informal employment.

The conference "Social Dialogue as a Tool in Addressing the Problem of Informal Employment: Together against Unregistered Work" organized by International Labour Organization (ILO) took place at Hilton Hotel in Ankara.

Delivering a speech at the conference, Labour Minister Mr. Basesgioglu drew attention to statements made giving the rate of informal employment as 48-52 %. Finding this percentage somewhat exaggerated, Basesgioglu pointed out that unpaid family workers, those in agriculture and temporary agricultural workers who are considered as working informally could not register for social security even if they wanted to.

Stressing that informal employment is to the detriment of the government, employers and workers, Minister added that all parties are aware of benefits to accrue by reducing informal employment.

Minister Basesgioglu said that informal employment needs to be reduced both as a result of country's own dynamics and Turkey's process of accession to the EU. Way of combating this phenomenon passes from incentives and sanctions.

Stressing that neither of these alone can solve the problem, Basesgioglu continued: "Assuming that all inspectors from the public sector are mobilised it is possible to give a serious struggle against informal employment within a tile period o only 6 months; but at the end you will find 200,000 additional people who have lost their jobs."

Mentioning his government's work in this area, Basesgioglu said reduced the costs of employment brought down employers' contributions to the unemployment fund, brought earning level as the base of taxation down to minimum wage, covered taxes and social security contributions by the Treasury through incentives in effect in 49 provinces and reduced taxing categories.

All these meant, said Basesgioglu, leaving a fund of 11 billion YTL to employers. He added that this by itself would not be enough.

Reminding that they are presently working on an employment package to enhance the competitive power of Turkish employers, Minister Basesgioglu said:

"Saying 'I have reduced security contributions by 10 points' is a good thing for a Labour Minister or Finance Minister. But this country gives pensions to 8 million retirees and the burden of this is undertaken by 14 million active and insured workers. I have to collect contributions for this system to work. But contributions are made only by those working formally, considering tax and contribution obligations as a matter of honesty.

"So we will bargain. We will say 'if the number of registered workers increases by 500,000 in 2008, and another increase of 500,000 takes place in 2009, and there is 2 million increase in the number of workers under social security system, we are going to reduce contributions by this or that amount.' Why do I say this? We left a fund of 11 billion YTL to the sector. What was the response of the business world to this? So far there is nothing reaching me. Whet the State makes sacrifice in this sense, there must be a response from its beneficiaries."

Stating that they attach great importance to the project on combating informal employment, Minister Basesgioglu said they were planning to mobilise local governments as well for this purpose.

Minister Basesgioglu also touched upon amendments to be made to the trade union legislation, adding that these amendments in legislation relating to trade unions and to strikes, collective agreements and lock-out constitute the most important agenda of his ministry and politics in general.: "At present, situation looks like this: Food is ready in the kitchen. We have to decide which table to serve it. Our trade unions are too busy these days focusing on (unity in the left or right. Nevertheless they are quite keen on informal employment issues and I thank them for this sensitivity."