For the first time in Mongolia, the private sector has established a joint tariff wage agreement in the cashmere sector
In order to introduce a unified wage system in accordance with international labor norms and basic principles in the country’s strategic and export-oriented cashmere industry, the Mongolian Wool Cashmere Association, the Mongolian Light Industry Workers’ Union, and the Friedrich-Ebert Stiftung of Germany have jointly agreed on a “Tariff Agreement” and the project is going to be successfully implemented.
Within the framework of this project, a list of more than 230 occupations in the cashmere industry and job descriptions were made in detail at each stage of production. Based on criteria such as skill requirements, effort, responsibility, and working conditions, the wool and cashmere association has prepared a network of standard wage rates for the cashmere industry, determined a salary coefficient, developed a methodology for evaluating occupations, and submitted them to employers.
For the first time in Mongolia, a collective wage agreement is being established in line with international labor standards. By introducing this wage system at the industry level, we will support decent employment in the cashmere industry and have a unified wage system based on scientific basis for the development of sustainable production. Implementation of International Labor Organization Conventions, which Mongolia is a member of, promoting fair competition in the labor market among enterprises, measuring and evaluating employee’s profession and skills, and the means of setting labor standards and norms will be more accurate and sophisticated.
In the tariff negotiations, on the one hand, the representatives of the employees and on the other hand, the representatives of the employers within the framework of social partnership, through negotiations, the wages are determined on a more scientific basis in accordance with the economic growth and employment conditions of the sector of the given year. Therefore, it is the most classic system to prevent violations of basic labor rights in enterprises that follow this agreement.
