Employers and trade unions in Serbia are both calling for changes to the Labor Law, acknowledging dissatisfaction with the solutions introduced 10 years ago. Both sides have raised objections, with each viewing the potential amendments through their own lens. While the Federation of Independent Trade Unions of Serbia (SSSS) advocates for a comprehensive overhaul of the law, the Union of Serbian Employers believes the current law is too detailed and should be more streamlined.
The SSSS argues that the Labor Law has been undermined by various additional laws, which they claim have eroded workers’ rights and hindered meaningful social dialogue, collective bargaining, and the negotiation of collective agreements.
On the other hand, the Union of Employers of Serbia emphasizes that unions have traditional demands but points out that the law cannot be altered solely to reflect union wishes. Nebojša Atanacković, honorary president of the Employers’ Union of Serbia, stressed that while some elements from the self-governing period still remain, the law must be adapted to the realities of today’s economy.
Duško Vuković from the SSSS explained that unions have been studying the law since its implementation, and there will be collective action regarding its revision. He reminded that the law was passed without proper consultation in the Social and Economic Council, leading to protests and strikes at the time.
The consensus is that the law needs revision, with employers seeking updates that align with modern economic needs, while trade unions aim to enhance worker protections. However, both sides acknowledge the challenge of reaching an agreement, as any changes to the law inevitably trigger strong reactions from both labor and business communities.
Adapting labor laws to new realities
Recently, Minister of Labour, Employment, Veterans and Social Affairs, Nemanja Starović, emphasized the importance of harmonizing labor legislation with EU standards while addressing new forms of work. He stressed the necessity of adapting laws to modern social circumstances to ensure they are fit for the current socio-economic environment.
Vuković, representing the unions, stated that they are well-acquainted with EU directives and have thoroughly analyzed the current law to identify barriers to fully adopting European standards and conventions of the International Labor Organization (ILO). He expressed concerns over government proposals that could undermine labor standards, such as those related to seasonal workers.
Salary determination and collective bargaining
Vuković expressed frustration that the process of wage determination has become less democratic, with the state or employers making decisions without the involvement of trade unions. He lamented the erosion of collective bargaining, noting that wages are now determined by the employer without any input from workers.
He pointed out that public sector unions were excluded from discussions regarding salary decisions for 2025, leading to protests in the education sector and other public services. Vuković argued that the absence of collective agreements has allowed employers to set wages arbitrarily, often to the disadvantage of workers.
Atanacković, representing employers, maintained that wages should reflect an employee’s performance and contribution to the company. He emphasized that employees should be paid for the value they bring to the business, not for social needs.
While Atanacković agreed that workers should earn wages that allow them to live decently, he was critical of unions calling for higher wages without considering productivity improvements. He also pointed out differences in labor practices between Serbia and Western Europe, such as the lack of paid breaks and transportation costs in most European countries, which are typically borne by the employer in Serbia.
Looking ahead
The debate over the Labor Law continues, with both sides pushing for changes that align with their respective interests. While unions seek more protections for workers, employers want a law that is more practical and better suited to the needs of a modern economy. The challenge remains to find a balance that addresses the concerns of both parties and adapts Serbia’s labor regulations to changing global standards.
