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Assisting a major automotive manufacturer in a dispute with its trade unions

Saturday, 11 May 2019

Kosta Legal lawyers have successfully assisted its client, a major Uzbek automotive manufacturer, in resolving a dispute over a collective bargaining agreement with its internal and all-Republic industrial trade unions.

The trade unions were challenging the provisions of the client’s internal collective bargaining agreement on procedures for dismissing employees. Providing for flexible dismissal rules, the client’s collective agreement differed from the template that was recommended to businesses in the industry by the all-Republic trade union and a sectoral regulator.

Our lawyers have prepared a detailed report explaining the position of the client and have persuaded the trade unions to withdraw their claims, leaving the collective agreement unchanged. Much negotiation and extensive analysis of ambiguities of the Uzbek legislation on powers of trade unions and dismissal of employees were required to uphold the client’s position.

Our client was one of the country’s largest producers of automobile components, being a joint venture of an Uzbek state-owned holding company and a US multinational corporation. The company procures for the Uzbekistan’s biggest industrial enterprise – the car manufacturer GM Uzbekistan.

The all-Republic trade union participating in the dispute was the Trade Union of Workers of the Metallurgy and Machine Building Industries, unifying and protecting the interests of more than 70,000 people working in these industries.