Adherence to labour laws is an ongoing issue in public companies in Albania, according to a recent report by the Department of Audit of Public Companies and Foreign Investments published this week.
Throughout 2022, the Department of Audit of Public Companies and Foreign Investments carried out 26 audits, of which 18 were carried out in Joint Stock Companies, six in projects with foreign financing and two on implementing recommendations in previous audits.
“The lack of analysis of regulatory, economic and financial issues on the part of joint-stock companies; Problems in the field of staff recruitment such as appointments, dismissals, suspensions, resignations, position changes and salary changes without giving the relevant explanations, or differential and unfounded salary system; Ineffective expenditure of funds as a result of the illegal termination of labour relations” notes the report.
Another issue identified was procurement procedures. The audit found cases of illegal management of public funds, the unfair disqualifications of economic operators, criteria not per the budget items, and issues with license categories and the number of employees.
“Problems in procurement procedures and the implementation of works related to favouritism of Economic Operators, technical specifications that do not guarantee the required quality, the selection of the evaluation method contrary to the established principles, as well as unfair benefits of funds as a result of the liquidation of unfinished works/services,” the report noted.
In the Department’s audits from January to December 2022, 807 recommendations were addressed in the audited institutions, of which 467 measures are organisational, 136 disciplinary measures, 35 administrative measures, 74 compensation measures and 95 measures for economic management, efficiency and effectiveness of public funds.
But it is not just with public companies where there are issues concerning labour laws. According to the 2022 Global Rights Index on worker rights, Albania is categorised as a regular violator of rights, along with Bulgaria, Mexico, Liberia, and the UK.
This is defined as where governments and companies regularly interfere in collective labour rights or fail to guarantee essential aspects of them, as well as there is the presence of deficiencies in laws which make frequent violations possible.
According to the International Labour Organisation, Albania has made progress over the last two decades, but there are still several labour market challenges.
“Key problems around working conditions and social protection are too many work accidents, low levels of wages, and insufficient coverage of the social security system,” they note.
While it is hard to find concrete statistics, it is estimated that up to a third of the population is employed informally or has irregular wages or working contracts.
(Alice Taylor | Exit.al)
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