ILO presents first comprehensive report on collective bargaining in Serbia’s private sector

The International Labour Organization (ILO) has released the first in-depth report on collective bargaining and agreements in Serbia’s private sector, prepared under the project “Strengthening Social Dialogue in the Republic of Serbia”, funded by the European Union (EU).

The report shows that collective agreements remain limited in Serbia: only 13% of private sector companies have such agreements, rising to 15% in companies with over 50 employees. Sectors with the highest coverage include construction, transport, and manufacturing.

Jovan Protić, ILO’s national coordinator for Serbia, emphasized that collective bargaining is a key pillar of decent work, fostering social peace, predictable labor relations, and sustainable economic growth.

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Pavle Medić, lead researcher at CEVES, noted that companies with collective agreements demonstrate better workplace organization, higher stability, and greater investment in employees. While coverage is low, the potential for growth is significant.

The EU supports strengthening social dialogue in Serbia, highlighting that collective agreements align companies with EU best practices, increase workplace transparency, reduce conflicts, and establish clear standards for wages and safety.

Representatives from Delta Holding, Eaton Electric, Leoni, and Wacker Neuson stressed that collective agreements provide a clear framework for employees and management, reducing misunderstandings and improving productivity.

Key findings:

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• 13% of private companies have collective agreements, covering ~245,000 workers.
• Agreements are most common in construction, transport, and manufacturing.
• Companies report positive effects: better management, stability, and fewer conflicts.
• Agreements mainly cover legally defined issues; topics like salaries, training, and skills development are less addressed.
• Sectoral-level bargaining is minimal, with only 2% of companies recognizing its value.
• Recommendations include strengthening social partners’ capacity, introducing incentives for employers, and improving institutional frameworks.

The report supports Serbia’s alignment with international labor standards and EU practices while promoting a more productive and cooperative business environment.