Minimum Wage Fixing Convention, 1970 (No. 131) - Serbia (RATIFICATION: 2000)

CMNT_TITLE

The Committee notes the observations of the Trade Union Confederation “Nezavisnost” and of the Serbian Association of Employers (SAE) communicated with the Government’s report.

Article 3 of the Convention. Criteria for the determination of the minimum wage. The Committee notes that the Trade Union Confederation “Nezavisnost” reiterates its previous observations that the minimum wage level does not cover the basic needs of workers and their families. The union also suggests that the adoption of a formula for calculating the minimum wage, on the basis of the criteria established in the Labour Law, should be considered. The Committee further notes that the SAE considers that when determining the minimum wage, their arguments are not sufficiently taken into account. The SAE also refers to the strong pressure put on small companies when the labour costs are too high. The Committee notes that one of the outcomes of the Decent Work Country Programme for Serbia (DWCP 2019–22) concerns the improvement of the minimum wage fixing mechanism. The DWCP indicates that while the Labour Law establishes criteria for determining the minimum wage, the relation among those elements needs to be defined more precisely. In this context, the Committee invites the Government to consider developing, in full consultation with the social partners, a methodology to put the various criteria for determining the minimum wage into relation to each other. The Committee reminds the Government of the possibility to avail itself of ILO technical assistance.

Article 5. Enforcement. Further to its previous comments, the Committee notes that the Trade Union Confederation “Nezavisnost” reiterates its previous observations regarding the non-respect of the minimum wage. It notes that the Government refers in its report to section 121 of the Labour Law, as amended in 2014, which provides that the monthly wage statement delivered by the employer to the employee shall represent an enforceable document. According to the Government, this provision enables employees to request payments of their wage claims within a shorter enforcement procedure. The Government also refers to the inspection system and sanctions provided for in the Labour Law. The Committee requests the Government to provide information on the application of these provisions in practice, including the number of violations detected and the sanctions imposed.

CMNT_TITLE

Articles 1 to 5 of the Convention. Minimum wage fixing system. The Committee recalls the comments of the Confederation of Autonomous Trade Unions of Serbia (CATUS), which were transmitted to the Government on 3 October 2011, concerning alleged abusive pay practices in five construction and road maintenance companies of the Nibens group. According to CATUS, lack of effective control and inspection have permitted these heavily indebted and recently privatized companies not to pay the minimum wage for months creating a critical situation for more than 5,000 workers.

In its reply, the Government indicates that very limited cases of non-payment or delayed payment of wages have been identified in three companies, “Kragujevac”, “Beograd” and “Vojvodinaput Bačkaput”, and administrative proceedings have been initiated by the inspection services. While noting the Government’s explanations, the Committee would appreciate receiving more detailed information on the outcome of the proceedings against the enterprises concerned (amount of fines imposed, sums of wages recovered, etc.) as well as any other measures taken to prevent and punish infringements of the minimum wage legislation.

Furthermore, the Committee notes the comments of the Trade Union Confederation (TUC) “Nezavisnost” which were attached to the Government’s report. The TUC “Nezavisnost” refers to problems in the practical application of the Convention such as abusive practices whereby employers decide to pay wages but not corresponding contributions, or inversely, to pay contributions but not the wages, and cases of employees who after having been paid the minimum wage are requested by the employer to return part of the amount received. The TUC “Nezavisnost” also indicates that the current minimum wage rate covers only one third of the average consumer basket and less than even the minimum consumer basket, and therefore the basic needs of workers and their families are not satisfied even when employers comply with the minimum wage legislation.

Moreover, the Committee notes the comments of the Confederation of Free Trade Unions, dated 31 August 2012 and transmitted by the Government on 30 October 2012. The Confederation of Free Trade Unions points to serious difficulties of enforcement and indicates that there are practically no sanctions for employers violating the minimum wage legislation. The Confederation also considers that the minimum wage is far from reflecting the real economic conditions and is not sufficient to cover the most basic subsistence needs of workers. The Committee requests the Government to submit any comments it may wish to make in response to the comments of the TUC “Nezavisnost” and the Confederation of Free Trade Unions.

CMNT_TITLE

Articles 2 and 5 of the Convention. Binding force of the minimum wage – Adequate inspection. The Committee notes the comments of the Confederation of Autonomous Trade Unions of Serbia (CATUS), which were received on 27 September 2011 and transmitted to the Government on 3 October 2011 concerning the application of the Convention. The Committee requests the Government to transmit any comments it may wish to make in reply to the observations of CATUS.

[The Government is asked to reply in detail to the present comments in 2012.]

CMNT_TITLE

The Committee notes the information provided by the Government in its report, especially the explanations concerning the application of Article 1 (establishment of national minimum wage), Article 2 (binding force of minimum wage), and Article 4 (consultations with social partners) of the Convention.

Articles 2 and 3 of the Convention. Minimum wage level. The Committee notes that the national minimum wage was last revised by Decision No. 93/07 dated 9 July 2007 of the Social-Economic Council and is now set at 11,094 dinars (approximately 140 euros) per month, which represents a 15.5 per cent increase from the previous rate. It requests the Government to transmit a copy of the latest decision of the Social-Economic Council establishing the level of the national minimum wage. It also requests the Government to provide some indication as to whether the current level of the national minimum wage may be considered to be adequate to cover the basic subsistence needs of workers and ensure a decent standard of living for them and their families.

Moreover, the Committee would be grateful if the Government would forward copies of any legal text relating to the organization and functions of the Social-Economic Council, such as for instance the Rules of Procedure referred to in section 23 of the Law on the Social-Economic Council.

Article 5. Adequate inspection. The Committee would appreciate receiving additional information on the mandate and powers of labour inspectors as regards the enforcement of minimum wage legislation. It would also be grateful if the Government would provide, in accordance with Part V of the report form, up to date information on the practical application of the Convention, including, for instance, the approximate number of workers remunerated at the minimum wage rate; statistics on labour inspection results showing the number of visits, violations recorded and sanctions imposed; copies of official documents or studies on minimum wage policy, such as activity reports of the tripartite Social-Economic Council and economic surveys serving as basis for its discussions, etc.

CMNT_TITLE

The Committee notes the Government’s succinct first report concerning the application of the Convention in the Republic of Serbia. It notes that the report does not contain information on the application of the Convention in the Republic of Montenegro. It therefore requests the Government to also provide full information on the application of the Convention in the Republic of Montenegro for examination by the Committee at its next session.

Article 1, paragraph 1, of the Convention. The Committee notes that, under section 112(1) and (2) of the new Labour Law of the Republic of Serbia of 15 March 2005, as amended, the minimum wage rate is established by decision of the Social-Economic Council, unless the Council fails to reach a decision ten days after the outset of the negotiating process, in which case the amount of the minimum wage is determined by government decision. It also notes section 112(4) of the Labour Law which refers implicitly to the periodic adjustment of the minimum wage by providing that the minimum wage is fixed for a period of no less than six months and cannot be lower than the minimum wage set for the immediately preceding period. The Committee would be grateful if the Government would transmit a copy of the legal instrument establishing the minimum wage rate currently in force and also specify whether the minimum wage is of general application or minimum wage levels are differentiated by occupational category, geographical region or age.

Article 2, paragraph 1. The Committee notes that the new Labour Law of the Republic of Serbia makes no explicit reference to the principle of the binding force of minimum wages or to the prohibition of abatement of minimum wages once fixed. It therefore requests the Government to indicate the legal provisions guaranteeing that minimum wages have the force of law and may not be subject to abatement.

Article 4, paragraphs 2 and 3. The Committee notes that, according to the draft law on the Social-Economic Council, the Council is a tripartite organ for the promotion of social dialogue, and is composed of 18 members (six representatives of the Government, six representatives of the trade unions and six employers’ representatives). Among its functions, the Council is mandated to study draft laws and regulations and also to examine a broad range of issues, including wage policy issues. The Committee requests the Government to provide additional information, including copies of any relevant legal text or other official document, on the effective establishment of the Council and its initial work, if any, in matters of minimum wage fixing.

Article 5 and Part V of the report form. The Committee notes that, under section 268 of the Labour Law of the Republic of Serbia, the labour inspectorate is responsible for the supervision of the implementation of labour laws and regulations in general. The Committee requests the Government to provide in its next report more detailed information on the enforcement of the national legislation in respect of minimum wages, including for instance available statistics on the number of inspection visits, infringements reported and sanctions imposed.

As regards arrangements for giving publicity to minimum wage provisions, the Committee notes section 113 of the Labour Law which requires the publication of the decision of the Social-Economic Council fixing the minimum wage in the Official Gazette of the Republic of Serbia. However, recalling that the publication of minimum wage provisions in the Official Gazette may not by itself be sufficient to ensure that the employers and workers concerned are made aware of the wage conditions applicable to them, the Committee requests the Government to indicate whether any other measures, such as the posting of notices at the workplace, are required by law or used in practice in order to keep the workers informed of the minimum wage rates in force.

Finally, the Committee would appreciate receiving up-to-date information on the application of the Convention in practice, for instance, the approximate number and different categories of workers covered by relevant legislation, the evolution of the minimum wage in recent years as compared to the evolution of the average wage or other economic indicators, such as the inflation rate, copies of any recent studies or official reports addressing minimum wage issues, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

CMNT_TITLE

The Committee takes note of the observations concerning the application of the Convention by the Republic of Serbia made by the World Confederation of Labour (WCL) on behalf of the Confederation of Autonomous Trade Unions of Serbia (CATUS). These comments were transmitted to the Government in January 2004, but no reply has so far been received.

According to the WCL, the Labour Law of the Republic of Serbia, which was adopted on 21 December 2001, fails in many respects to secure the effective observance of the Convention and considers its provisions on minimum wages to be retrogressive compared with those of the former Law on Labour Relations of the Republic of Serbia. More concretely, the WCL indicates that section 84 of the Labour Law of 2001 does not explicitly provide for the binding force of minimum wages nor does it refer to the prohibition of abatement of minimum wages once fixed. The WCL adds that the legal nature of the tripartite agreement, or the Government decision, as the case may be, fixing the minimum wage is not clear and further estimates that the absence of specific provisions on penal or other sanctions in the case of infringement of the minimum wage regulations is yet another indication of the inconsistency of the Serbian labour legislation with the requirements of the Convention. Finally, the WCL raises the question of procedural mechanisms enabling workers to recover sums by which they may have been underpaid and considers that the labour law offers no protection in this respect.

The Committee notes that since these comments were made, the Labour Law of the Republic of Serbia of 2001 has been superseded by a new labour law, which was adopted in March 2005 and subsequently amended in July 2005. The Committee also notes that the new labour law of the Republic of Serbia essentially reproduces the provisions on minimum wages of the previous labour law and therefore most of the comments of the WCL may be deemed to apply by analogy to the new labour legislation. The Committee therefore asks the Government to reply to the points raised by the WCL so that these points may be examined in detail at its next session.

The Committee is raising a number of points in a request addressed directly to the Government.