Socijalni Dijalog U Srbiji

International Association of Economic and Social Councils and Similar Institutions (AICESIS) July 2010

SOCIAL DIALOGUE IN SERBIA

Prepared by the Social and Economic Council of the Republic of Serbia

The development of an institutionalized (tripartite) social dialogue was initiated after the democratic changes in Serbia in year 2000. The delayed transition of the economy and society at large called for the initiation of social dialogue in the absence of a legal framework, and with weak capacities of social partners and insufficiently informed executive authorities about social dialogue. This approach was risky, but at the same time it was the only possible one in view of the fact that it was possible to improve and increase capacities of social partners through social dialogue. Through their activities social partners pointed out to the advantages of resolving conflicts through dialogue and, in spite of transition losses in the first phase of the reforms, they made a relatively peaceful march through a turbulent and conflicting period of transition possible.

In 2004 the Law on Social and Economic Council was adopted and thus a legal framework for the development of social dialogue in Serbia was in place. The present composition of the Council was constituted in 2008, after the general parliamentary elections and the establishment of the coalition government. The Council meets on a regular basis and discusses the key issues from its scope of competences. Primarily, the Council considers draft laws that regulate labor and social legislation, economic policy, minimum wages in Serbia, as well as measures applied by the Serbian government to reduce the effects of the global economic crisis on the Serbian economy and the extremely high rate of unemployment.

The Council is an independent body with eighteen members of which six are ministers in the Serbian government, six members are representative trade unions (four from the Confederation of Independent Trade Unions of Serbia and two from the Trade Union Confederation Nezavisnost ), and six representatives from the representative association of employers (Union of Employers of Serbia). Decisions, opinions, positions and recommendations are adopted by consensus and forwarded to the government, i.e. the ministries that propose draft laws, bylaws, action plans and strategies.

1 With a view of ensuring professional discussions and quality documents, the Council has formed four standing working bodies: on dealing with legislation, one for economic questions, one for collective bargaining and peaceful dispute resolution and one for occupational health and safety. These bodies, formed on tripartite basis, provide expert opinions on documents to the Council and through the Secretariat. The Secretary of the Council, elected by the Council for a period of four years coordinates the work of the standing working bodies. Chairperson elected for a period of one year (rotation system) convenes and chairs sessions of the Council. In October this year minister of labor and social policy who is the chairperson of the Council will be replaced by a representative of trade unions.

According to the report for 2009, seven regular and two extraordinary Council sessions were held. The items on the agenda of the regular sessions included opinions about the Draft Law on the prevention of mobbing, Draft Law on gender equality, Draft Strategy on occupational health and safety, Draft Amended Law on peaceful labor disputes resolution, analysis of the Agreement on future development of social dialogue etc. Extraordinary sessions were devoted to Government measures for curbing the effects of the global economic crisis, numerous strikes that occurred as a result of bad privatization processes that left a great number of workers jobless and cases of new owners who not only fail to pay regular salaries but also contributions thus jeopardizing workers rights to pensions.

The collective bargaining system in Serbia is carried out on three levels: the national level, sectoral (including territorial where, mostly, public utility companies sign agreements with local self-governments) and company level. General collective agreement for the whole territory of the country was signed in April 2008, (for a period of three years) after nearly four years of negotiations. Unfortunately, the effects of this important document were diminished after an Annex to the Agreement was signed end of 2009 which postpones the implementation of many financial obligations of employers vis-à-vis workers, as a result of the global economic crisis.

Collective bargaining on the sectoral level is not developed. Collective agreements were signed in the following sectors: health care, education, culture, republican and local administration. The competent ministries signed these agreements with trade unions and then the Minister of labor, upon the recommendation of the Social and Economic Council, prescribed extended effect of the agreement to all employers in the said sectors and not only to institutions that are funded from the budget, i.e. where the state is the employer. In the industrial sector, i.e. the private sector not a single branch collective agreement was singed, although in some branches bargaining has been taking place for some five years. At the company level, situation is very versatile. Collective agreements are signed mostly in bigger companies where trade unions are organized, while in small and medium size companies this level of bargaining does not even exist because the level of union organization is low.

The challenges facing stake holders in the social dialogue in Serbia are as follows:

- Further increase of capacities of social partners and of the Social and Economic Council as an institution; - Changes of the labor and social policy legislation which will call for great efforts to achieve consensus - especially in the case of the Law on strikes, the Law on labor inspection, Amendments of the Law on pension and disability insurance and the amendments of the Labor law.

2 - Discussion on the basic directions of the economic policy of the state and measures for supporting development and increasing employment. - Negotiations on the new General collective agreement which will expire in April next year, as well as negotiations on branch collective agreements.

The institution of Social and Economic Council will have to face and bear challenges, such as limited financial resources (the Council is funded from the state budget with 231,733 euros for 2010), insufficient number of employees in the Secretariat, and most importantly the Council will have to exert much effort to make the executive authorities accept and respect its recommendations and opinions and provide the Council with draft laws on time, instead of sending them once they have been approved by the government and forwarded to the parliament. In conclusion, further success of social dialogue will primarily depend on the results, that is to say on the benefits achieved for the citizens. Dialogue between social partners and government cannot be a compensation for poor and incomplete final results.