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Bulgarian Fashion for Europe

Roumania Taslakowa (tip)August 18, 2007

Bulgaria used to be a low-wage country, attracting investors with good profits. With its EU entrance, things changed. In some industries, the wage entitlements are rising, and there is a deficiency of skilled labor.

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A shopping street in Sofia
The trade industry in Sofia can expect big changesImage: picture-Alliance/dpa

The fashion boutique Rollmann is situated in downtown Sofia, the capital of Bulgaria, and it is one of the best stores for men's and women's outerwear in the area. The store has branches in four other Bulgarian cities, as well as in Greece and Macedonia.

The German Bertram Rollmann, who trained to be a toolmaker, has been attracting the Bulgarian fashionistas for the past 13 years. He began virtually at the bottom, in 1993.

"I found 25 young Bulgarians, whom I sent to a special nine-month training to Greece and Germany," he said. With the same people, he began to develop a manufacture in 1994.

Profitable virgin land

Downtown Sofia
One of Rollmann's boutiques is located in downtown SofiaImage: Transit-Archiv

Rollmann first opened a small tailor shop in Gotse Delchev, a small town in southern Bulgaria. He began to manufacture for the German market, which is still his main market today. Trading in Switzerland, France, Turkey and Greece followed.

"For the German investors, Bulgaria was a virgin land in 1993," Rollmann said. "Then, I was managing a company in Greece, through which I put the investment into the company in Bulgaria, and I came to realize that Bulgaria was good as headquarters, and it developed very well," he said.

The German entrepreneur can indeed be very satisfied -- 650.000 men's suits are yearly delivered from "Pirintex," his company in Gotse Delchev. The number of employees has considerably risen, going from 25 in 1994, to 2350 employees and skilled laborers.

Outstanding wage wars

People pass a shop window in the downtown of Sofia
With its low wages, Bulgaria was a profitable country for foreign investorsImage: AP Photo

Rollmann is afraid that the requirements for foreign investors in Bulgaria are going to change now that the country is a member of the EU. He is expecting many amendments in the next few years, especially in the area of wages.

"I hope that the corrections are modest, so that the young business association can stem the wage and price evolution," he said.

The first wage war has already occurred. At the beginning of June, Rollmann's employees in Gotse Delchev went on strike. The labor union asked for a wage increase of 100 levs (50 euros), which is an increase of 40 percent.

The management declined it, calling the union demands unacceptable.

After 21 days on strike, Rollmann and the strike committee agreed on a compromising solution. The wages were increased by 80 levs, and the employees agreed to introduce improvements, such as more vacationing days and more money for overtime and nightly work.

Mecca for craftsmen

EU flag
Will EU membership drastically change Bulgarian concepts of trade and industry?Image: AP

With the wage increases, Rollmann became worried about the ability to be compatible, because the prices of his products had to rise as well. He also worried about the availability of a qualified work force.

In the next 15 to 20 years, various types of professionals in Bulgaria will die out, and there is no controlled educational system for skill-based professions.

Every company educates their workers depending on their own demands.

"There are no industry-standards that go through a central organization, such as the Board of Industry and Trade in Germany, which promote the technological and creative development of an industry, and push it forward."

The old master craftsmen are slowly retiring and the young people are not educated in any skill-based profession. According to Rollmann, it is a problem that could be solved, if from now on, the influx of a qualified work force changed directions.

"There would be many opportunities for German and northern European craftsmen to settle in Bulgaria and through their qualification and specialization contribute to the exchange of technology and the know-how."

Rollmann himself can influence the reversal of the migrant storms in Europe: He is the new elected president of the German-Bulgarian Board of Industry and Trade in Sofia.