Adopted: 2 April 1997Last major reform: 2020ILO: C087 · C098Matsne →
~220,000
GTUC members (2023)
<8%
Collective bargaining coverage
21
GTUC affiliated unions
1997
Year law adopted
Overview
Freedom of Association and the Right to Collective Bargaining
The Law on Trade Unions (1997) guarantees the right of all workers in Georgia to freely form and join trade unions without prior authorisation, and to participate in collective bargaining and social dialogue. It is the foundational legislation for Georgia's system of industrial relations and applies to all workers in both the public and private sectors.
The law implements ILO Conventions No. 87 (Freedom of Association) and No. 98 (Right to Organise and Collective Bargaining). Georgia ratified both conventions in 1993. However, collective bargaining coverage remains below 8% of workers — one of the lowest rates in Europe — reflecting both structural limitations of the law and the weakness of employer organisations as bargaining counterparties.
The Georgian Trade Union Confederation (GTUC), with ~220,000 members across 21 affiliated unions, is the dominant trade union body and a party to the Tripartite Social Partnership Commission. The 2020 reform introduced important improvements: mandatory information and consultation rights for employee representatives, and an erga omnes extension mechanism for collective agreements (where a collective agreement covers 51%+ of a sector, the Ministry may extend it to all sector workers).
Historical development
Soviet Legacy to Social Partnership: 1990–2024
1990–1997
Soviet-era union structure dissolves. GCTU (successor to Soviet All-Union structure) reorganised. New independent unions formed in specific sectors. Legal framework absent — unions operated without statutory recognition.
1997
Trade Unions Law adopted. First post-Soviet trade union legislation. Basic rights: freedom of association, collective bargaining, strike action. Anti-union dismissal prohibition. Employer duty to recognise and negotiate with union representing 50%+ of workers.
2006
Labour Code weakens union rights. 2006 Labour Code significantly reduced collective bargaining obligations. Employer recognition threshold raised. Collective agreements made optional. ILO and ITUC strongly criticised Georgia's industrial relations framework.
2013
Partial restoration. 2013 Labour Code reform restored some collective bargaining provisions. GTUC formally recognised as social partner in Tripartite Commission. But coverage remained below 5%.
2020
Landmark reform package. DCFTA Chapter 13 commitments drove significant improvement: (1) mandatory information and consultation for employee representatives on decisions affecting working conditions; (2) erga omnes extension mechanism introduced; (3) anti-union discrimination burden of proof shifted to employer; (4) prohibition on replacement workers during legal strikes strengthened.
2021–2024
First sectoral extensions attempted. GTUC applied for erga omnes extension in construction sector 2022 — MLHSA found coverage threshold met but extension not implemented due to employer federation opposition. Illustrates structural limitations even with legal framework improvements.
Collective Bargaining Coverage — South Caucasus & EU Comparison (2023)
Percentage of workers covered by collective agreement. Source: ILO ILOSTAT 2023.
Source: ILO ILOSTAT Collective Bargaining Coverage 2023. EU average reflects EU-27 composite. Georgia's 8% is among the lowest in the ILO's global database.
Art. 1: Every worker has the right to form or join any trade union freely, without prior authorisation. This right cannot be waived or restricted by employment contract. Art. 2: Trade unions are voluntary, self-governing organisations — free from state and employer interference. Art. 3: No worker shall be dismissed, disciplined, or disadvantaged for trade union membership or activity. Art. 4: Employers may not condition employment on non-membership of a trade union (closed shop prohibition from the employer side; yellow-dog contracts void).
GILS note: Article 3's anti-union dismissal protection is the law's most important provision — and the most frequently violated. LIS data shows anti-union dismissal is the most common reported labour violation after contract-related issues. The 2020 burden-of-proof shift (employer must prove dismissal was unrelated to union activity) is the most significant recent improvement.
Chapter II — Collective Bargaining
Articles 5–9
Bargaining Rights and Obligations
Art. 5: Employer must recognise and negotiate with the trade union representing 50%+ of workers. Art. 6: Collective agreements are legally binding on both parties and may not provide less favourable conditions than the Labour Code. Art. 7: Duration 1–3 years. Art. 8: Collective agreement disputes go to the Labour Dispute Resolution Commission first, then court. Art. 9: Erga omnes extension (2020) — MLHSA may extend sector collective agreement to all sector employers if the agreement covers 51%+ of sector workers and employer federation agrees.
GILS note: The 50% recognition threshold is a structural barrier to collective bargaining. In enterprises where management has fragmented the workforce, it is nearly impossible to achieve 50% in a single bargaining unit. Recommend reducing to 30% for recognition, retaining 51% for erga omnes extension.
Chapter III — Strike Rights
Articles 10–15
Strike Action Framework
Art. 10: Right to strike is guaranteed. Strike requires: (1) labour dispute to have been submitted to mediation; (2) mediation to have failed or 30 days elapsed; (3) secret ballot of union members with 50%+ approval. Art. 11: Essential services (defined list: electricity, water, healthcare, emergency services, national security) must maintain minimum service level during strikes. Art. 12: Replacement workers during legal strike prohibited (2020 reinforcement). Art. 13: Employer may not dismiss striking workers. Art. 14: Political strike is permitted unless it directly aims to overthrow constitutional order. Art. 15: Lockout — employer may suspend operations during strike but must pay 2/3 wages.
Strengths: Comprehensive legal framework for freedom of association and collective bargaining. The 2020 reform introduced erga omnes extension mechanism, mandatory information and consultation, and anti-union dismissal burden shift — significant improvements. GTUC is an active social partner in the Tripartite Commission.
Critical gap — collective bargaining coverage <8%: This is the defining weakness of Georgian industrial relations. With coverage below 8%, the law's provisions remain largely theoretical for 92% of workers. The 50% recognition threshold, weak employer federation infrastructure, and lack of sector bargaining structures all contribute. Without closing this gap, pay setting, working conditions, and workplace rights will remain entirely at employer discretion for most workers.
GILS Policy Recommendations
Five Priority Reforms
Recommendation 01
Reduce union recognition threshold to 30% — amend Article 5
The 50% threshold for employer recognition duty makes collective bargaining unattainable in most Georgian enterprises. Reduce to 30% for recognition — above which the employer must engage in good-faith negotiation. Retain 51% threshold for erga omnes extension. This follows ILO C098's requirement that recognition thresholds not undermine the right to bargain — and mirrors models in Germany (no minimum threshold — majority principle in works councils), UK (CAC: 40% support + majority in ballot), and Moldova (Labour Code Art. 30: 50% → reduced to 30% in 2021).
ILO C098 · Germany (works council model) · UK (Central Arbitration Committee) · Moldova (2021 reform)
Recommendation 02
Activate erga omnes extension — Government Resolution
The erga omnes extension mechanism exists in law since 2020 but has not been applied despite GTUC's application in construction (2022). The Government should: (1) establish a clear administrative procedure for extension applications with a 90-day decision deadline; (2) define 'sector' for coverage calculation purposes; (3) require MLHSA to publish a public explanation if extension is refused. Without implementation, the mechanism is empty legislation.
France (extension obligatoire) · Germany (Allgemeinverbindlicherklärung TVG §5) · EU EPSR Pillar 8
Recommendation 03
Sectoral collective bargaining structures — new Chapter IIa
With enterprise-level bargaining producing <8% coverage, sector-level bargaining is the only path to meaningful coverage. A new Chapter IIa should establish: (1) sectoral social dialogue committees in 5 priority sectors (construction, retail, hospitality, healthcare, agriculture); (2) mandatory employer participation in sectoral committees where the employer organisation represents 30%+ of sector employment; (3) MLHSA-funded mediation service for sectoral bargaining disputes. Target: 30% coverage by 2028.
Germany (sectoral bargaining) · France (branches professionnelles) · Spain (estatuto de los trabajadores)
Recommendation 04
Anti-union dismissal rapid response procedure
Anti-union dismissal complaints currently take 6–18 months to resolve through LIS and courts. A worker who is dismissed for union activity during a bargaining process is effectively silenced for the duration. Establish a rapid response procedure: (1) LIS priority processing of anti-union dismissal complaints — 15-day investigation; (2) interim reinstatement order available pending full investigation where prima facie case established; (3) automatic fine of 3 months' salary on confirmed anti-union dismissal (increased from current 1 month).
UK (interim relief application, Employment Rights Act s.128) · Germany (§102 BetrVG) · ILO C098 Art.1
Recommendation 05
Trade union density target and state support programme
Set a national trade union density target of 20% by 2030 (from current ~13% of formal employees). Support measures: (1) MLHSA awareness campaign on union rights; (2) inclusion of union rights in OSH training curriculum; (3) LIS incorporation of anti-union rights violations in sector inspection campaigns; (4) public sector employers to facilitate union recruitment in workplace (noticeboard access, payroll deduction facility). This mirrors ILO's Freedom of Association promotion framework and the EU's Barcelona Declaration on social dialogue (2023).
EU Barcelona Declaration 2023 · ILO Freedom of Association Toolkit · Moldova (Social Dialogue Law 2021)
Collective bargaining coverage below 8% is not a statistic — it means that in 92% of Georgian workplaces, wages and working conditions are set unilaterally by the employer. The Trade Unions Law provides the framework; what is missing is the sectoral infrastructure and the political will to activate the erga omnes mechanism that has been law since 2020 but never applied.
— GILS Research Position Paper on Collective Bargaining Reform, September 2026
ILO Convention
Subject
Ratified
Compliance
Key Gap
C087
Freedom of Association and Protection
o
a
Anti-union dismissal frequent; recognition threshold too high
C098
Right to Organise and Collective Bargaining
o
a
Coverage <8%; erga omnes mechanism not applied; sector bargaining absent