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Serbia & Montenegro - Compensation & Benefit Legislation

CAPITAL

Belgrade

 

CLIMATE

In the north, continental climate (cold winters and hot, humid summers with well distributed rainfall). The climate in the central portion of the country is continental and Mediterranean. The climate in the south is an Adriatic climate along the coast. The country experiences hot, dry summers and autumns with relatively cold winters with heavy snowfall inland.

 

LANGUAGES

Serbian 95%, Albanian 5%.

 

LEGAL SYSTEM

The legal system is based on civil law system.

 

CURRENCY

Serbia: Yugoslav Dinar (1 USD = 66.4030 YUM as of April 15, 2002).

Montenegro: Euro (1 USD = 1.07090 EUR as of June 1, 2002).

Montenegro is not a member of the European Union but has adopted the Euro as its currency.

 

SERBIA & MONTENEGRO - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

SERBIA & MONTENEGRO - EMBASSY/CONSULATES

U.S. Embassy at Belgrade

Kneza Milosa

11000 Belgrade

Yugoslavia

Telephone: [381] (11) 361-9344

Fax: [381] (11) 361-8684

http://www.usemb-belgrade.rpo.at/

 

U.S Office at Pristina

Dragodan-Arberia

Nazim Hikmet 30

Pristina, Kosovo

Telephone: [381] (38) 549-516

Fax: [381] (38) 549-890

http://www.usofficepristina.rpo.at/

 

Embassy of Yugoslavia at Washington, D.C.

2134 Kalorama Road, NW

Washington, DC 20008

Telephone: (202) 332-0333

Fax: (202) 332-3933

 

SERBIA & MONTENEGRO - HOLIDAYS

 

SERBIA & MONTENEGRO - MINIMUM AGE

Serbia: The minimum age for employment is 16 years, although in villages and farming communities it is common to find younger children at work assisting their families.

 

Kosovo: The October 2001 labor law sets the minimum age at 18 for any work likely to jeopardize the health, safety or morals of a young person, but permits children to work at 15, provided such work is not harmful and is not prejudicial to school attendance. However, in villages and farming communities younger children work to assist their families.

 

Montenegro: The official minimum age for employment is 16 years, although in farming communities, it is common to find younger children assisting their families.

 

(Section 6.d. Acceptable Conditions of Work, Serbia and Montenegro – Report of Human Rights Practices, 2001, U.S. Department of State. (The State Department’s report on the Federal Republic of Yugoslavia contained three separate sections: Serbia, Kosovo, and Montenegro.)

 

SERBIA & MONTENEGRO - MINIMUM REMUNERATION

Serbia: The monthly minimum wage is 900 dinars (approximately $15). However, this figure is roughly comparable to unemployment benefits and (at least theoretically) is paid to workers who have been placed in a mandatory leave status. The actual minimum wage is at the low end of the range of average net salaries, which are 3,000 dinars per month (approximately $50).

 

Kosovo: No minimum wage.

 

Montenegro: The minimum wage is 100 DM per month (approximately $47). Large government enterprises, including all of the major banks and industrial and trading companies, generally observe this wage. The minimum wage is comparable to unemployment benefits or wages paid to those on mandatory leave.

 

(Section 6.e. Acceptable Conditions of Work, Serbia and Montenegro – Report of Human Rights Practices, 2001, U.S. Department of State. (The State Department’s report on the Federal Republic of Yugoslavia contained three separate sections: Serbia, Kosovo, and Montenegro.)

 

SERBIA & MONTENEGRO - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

SERBIA & MONTENEGRO - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

SERBIA

a. The Right of Association

 

The law provides for the right of association and all workers except military and police personnel have the legal right to join or form unions. There were approximately 1.5 million employees in the socially-owned state sector and 300,000 persons in privately-owned companies. An additional 500,000 persons work in the unofficial economy and are not registered employees. In the socially-owned state sector, 60 to 70 percent of workers belong to unions. In the private sector, only 4 percent are unionized and in agriculture, 2 to 3 percent. The Alliance of Independent Labor Unions (Samostalni Sindikati, or SSS), formally affiliated with the Socialist Party of Serbia, whose President remained Slobodan Milosevic, claims 1.8 million members, although this number is estimated to be closer to 800,000 in practice. The largest independent union is the United Branch Independent Labor Unions (Nezavisnost), which has approximately 600,000 members. The third largest union is the Association of Free and Independent Trade Unions (AFITU), which has approximately 60,000 to 70,000 members. Most other independent unions are sector specific, and have approximately 130,000 members. Due to the poor state of the economy, one-third of union workers, or 600,000 persons, were on long-term mandatory leave from their firms pending improvement of the economy. The largely splintered approach of the independent unions has resulted in few achievements in terms of increased wages or improved working conditions.

 

The law provides for the right to strike; however, the Law on Strikes restricts the right for employees in "essential service production enterprises," such as education, electric power, and postal services, and these employees must announce their strikes at least 15 days ahead and must ensure that a "minimum level of work" is provided. This law covered approximately 50 percent of all employees. The independent unions, while active in recruiting new members, have not reached the size needed to mount countrywide strikes; however, unions held several strikes during the year. On May 14, workers at the Bor mine went on strike for higher wages; on October 11, the strike was settled peacefully and the workers returned to work. In June taxis blocked roads throughout the country to protest the Government's policy on taxi drivers. Agricultural workers held strikes as well. Public workers, including teachers, health workers, students, and policemen, held strikes during the year. These strikes were for job security, higher pay and the regular payment of wages. The ICN Galenika Pharmaceutical Company has also been the focus of strike activity. The Alliance of Serb Labor Unions was due to schedule a general strike if the Serbian Government refused to withdraw its draft labor bill, which gave management greater power to hire and fire employees; however, ultimately they reached a compromise and the labor bill passed with some amendments proposed by the unions. A Vojvodina political leader threatened to call strikes all over Vojvodina to prevent privatization. In general job security fears, which stem from the high rate of unemployment, limited workers' willingness to strike.

 

In December a Serbian Government labor law that had been approved by the International Labor Organization (ILO) entered into force. The new law significantly differed from the previous Socialist law by giving more power to employers and diminishing the rights of employees. For example, the law makes it easier for management to fire workers; collective bargaining is obligatory, but signing a collective agreement is not obligatory--employees may sign individual work contracts; and public job announcements are no longer obligatory. On October 16, the SSS held a small general strike to prevent the adoption of the labor law; as a result the Serbian government negotiated with the unions and accepted proposed amendments that were incorporated into the labor law.

 

Unlike in the previous year, the law governing trade union registration no longer enables employers to block registration by declining to certify that the union delegate is a full-time employee, effectively preventing unions from opening bank accounts. However, the confirmation of registration remained a slow process.

 

Unlike the previous year, security forces did not disrupt any strikes or arrest union leaders.

 

Unions can affiliate internationally; however, only Nezavisnost is recognized by the international community as completely independent from the Government. Nezavisnost is a member of the ICFTU and other international unions.

 

b. The Right to Organize and Bargain Collectively

 

The labor law passed and implemented in December does not make the signing of collective agreements mandatory for employers, although it is allowed. Unions complained that without this provision, their role in the system would be diminished. A union must have 15 percent of employees as members in order to be eligible to negotiate with an employer, or 10 percent of all employees in order to negotiate with the Serbian Government or the local government.

 

Collective bargaining remained at a rudimentary level of development. Individual unions continued to be very narrow in their aims and were unable to join with unions in other sectors to bargain for common purposes. The history of trade unionism in the country has centered not on bargaining for the collective needs of all workers but rather for the specific needs of a given group of workers. Thus, coal workers, teachers, health workers, and electric power industry employees have been ineffective in finding common denominators (for example, job security protection, minimum safety standards, universal workers' benefits, etc.) on which to negotiate. The overall result is a highly fragmented labor structure composed of workers who relate to the needs of their individual union but rarely to those of other workers.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced and bonded labor; however, trafficking in women was a problem (see Section 6.f.).

 

The law prohibits forced and bonded labor by children; however, trafficking in children was a problem (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The minimum age for employment is 16 years, although in villages and farming communities it is common to find younger children at work assisting their families. Children also may be found in a variety of unofficial "retail" jobs, typically washing car windows or selling small items such as cigarettes or newspapers. In recent years, this type of labor has been less widespread because adults, lacking other options for employment, have taken many of these jobs. The unemployment rate throughout Serbia is approximately 30 percent, but there are pockets, particularly in areas with large refugee populations or where industries have closed, where unemployment is much higher.

 

The law prohibits forced and bonded labor by children; however, trafficking in children was a problem (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

Large government enterprises, including all the major banks, and industrial and trading companies generally observe minimum wage standard. The monthly minimum wage is approximately $15 (900 dinars); however, this figure is roughly comparable to unemployment benefits and (at least theoretically) is paid to workers who have been placed in a mandatory leave status. The actual minimum wage is at the low end of the range of average net salaries, which are $50 (3,000 dinars) per month. The minimum wage is insufficient to provide a decent standard of living for a worker and family. For example, the cost of food and utilities for a family of four is estimated to be $120 (7,200 dinars) per month. Private enterprises use the minimum wage as a guide but tend to pay slightly higher average wages.

 

Reports of sweatshops operating in the country were rare, although some privately owned textile factories operated under very poor conditions. In certain areas of the country, such as the Sandzak and the town of Cacak, there were many prosperous small businesses dealing in unlicensed items for export. For example, one furniture manufacturer employs 800 workers but, aside from their salaries, the factory workers receive no other benefits. The official workweek, listed as 40 hours, is not respected because of massive underemployment and unemployment.

 

Neither employers nor employees tended to give high priority to the enforcement of established occupational safety and health regulations, focusing their efforts instead on economic survival. Because of the competition for employment and the high degree of government control over the economy, workers are not free to leave hazardous work situations without risking the loss of their employment.

 

f. Trafficking in Persons

 

The law does not prohibit trafficking in persons specifically, although there are other laws that could be used to prosecute traffickers and trafficking was a problem. Serbia is a transit, and to a lesser extent, a country of origin, and a destination country for women and girls trafficked to other parts of Europe for sexual exploitation. Local border officials facilitated trafficking.

 

The country is a transit and destination point for women trafficked from Eastern Europe, especially Romania, Moldova, Ukraine, and Russia. According to an International Helsinki Federation for Human Rights report, women often were trafficked to Belgrade, and then taken to other parts of Serbia, Kosovo, Montenegro, Bosnia and Herzegovina, Italy, Greece, Germany, the Netherlands, and other Western European countries, often for sexual exploitation. Yugoslavia also was a country of origin for women trafficked to Italy, Greece, Cyprus, Germany, and the Netherlands. For example, in the area around Nis in eastern Serbia, an NGO reported that some local women had been trafficked. The central point in Serbia for the transit trade is Belgrade, where organized crime is most entrenched. There were reports by the International Helsinki Federation for Human Rights that Roma women and children also were trafficked to Italy, where women and girls were required to work in the sex industry and the boys were required to beg and steal.

 

KOSOVO

a. The Right of Association

 

On October 8, the SRSG promulgated Regulation 2001/27 on the Essential Labor Law for Kosovo, which provides for fundamental rights at work, including the employment relationship, terms of employment, and, without specifically mentioning a right of association, the right to form and belong to organizations including unions without employer interference. Unions were consulted in the drafting of the legislation. In creating the JIAS Department of Labor and Employment, UNMIK included in its responsibilities policy recommendations on labor practices and the rights of workers and recognized labor as one element of an eventual tripartite commission, but did not include a specific right of association.

 

After the war, labor organizations, which had focused during the 1990's on members' welfare, redirected their focus to traditional labor issues. The dominant group, the Confederation of Independent Trade Unions of Kosovo (BSKP), was founded in 1990 and its membership reached a high point of about 260,000 members in the mid-1990's; its membership is approximately 40,000 active members. Its president was a member of the KTC until its disbanding on October 3. The BSKP continued to work with international entities, including the International Labor Organization (ILO) and the International Confederation of Free Trade Unions (ICFTU), to rebuild its membership. Other trade union organizations include the Independent Trade Union of Miners and the Union of Education, Science, and Culture of Kosova.

 

The right to strike is not recognized in the law; however, strikes are not prohibited. Nothing in the law addresses labor disputes. In October UNMIK, the BSPK, and the Chamber of Commerce concluded a Tripartite Agreement which may be used for agreements on labor disputes. On February 28, several thousand local trade union supporters protested in Pristina to demand approval of broad-ranging labor legislation.

 

The ability of unions to affiliate internationally remained constrained in practice, although there are no legal impediments to their doing so, and the legislation expressly permits such affiliation.

 

b. The Right to Organize and Bargain Collectively

 

The labor law adopted in October provides for the right to organize and bargain collectively; however, collective bargaining was at a rudimentary level of development. The history of trade unionism was centered not on bargaining for the collective needs of all workers but rather for the specific needs of a given group. Thus workers in various sectors were ineffective in finding common denominators (e.g., job security protection, minimum safety standards, universal benefits, etc.) on which to negotiate. Given the poor state of the economy and the high unemployment rate, wages other than those paid by international and nongovernmental organizations rarely were paid on time, and there is little possibility for negotiation by labor organizations.

 

Antiunion discrimination is prohibited.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced or compulsory labor; however, trafficking in women for the purpose of prostitution was a problem (see Section 6.f.).

 

The law prohibits forced or bonded labor by children; however, trafficking in girls was a problem (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

Under labor law dating from before 1989, the minimum age for employment was 16. The October labor law sets the minimum age at 18 for any work likely to jeopardize the health, safety or morals of a young person, but permits children to work at 15, provided such work is not harmful and is not prejudicial to school attendance; however, in villages and farming communities younger children work to assist their families. In addition children were found in a variety of unofficial "retail" jobs, typically washing car windows or selling newspapers and small items such as cigarettes. With an unemployment rate in excess of 60 percent, real employment opportunities for children in the formal sector were nonexistent.

 

The law prohibits forced or bonded labor by children; however, trafficking in girls was a problem.

 

e. Acceptable Conditions of Work

 

After the withdrawal of Yugoslav forces and authorities in June 1999, there was no effective minimum wage rate, because Kosovar Albanians refused to recognize the Yugoslav-Serbian legal code. During the year, the unemployment level exceeded 60 percent, and the average wage paid to those who had work was insufficient to provide a decent standard of living for a worker and family. While many international agencies and NGO's paid wages adequate to support a worker and family, UNMIK determined that wages for any jobs that eventually would be part of the province's own governmental structure, even if funded by the international community, should be set at a level estimated to be supportable by the consolidated budget. Salaries under the Kosovo Consolidated Budget were barely enough to support a worker and a family. The October labor legislation provided for a minimum wage, but did not set its level.

 

Reports of sweatshops operating in the province were rare, although some privately owned textile factories operated under very poor conditions. The official workweek, listed as 40 hours, had little meaning in an economy with massive underemployment and unemployment.

 

Neither employers nor employees tended to give high priority to the enforcement of established occupational safety and health standards, and focused their efforts instead on economic survival. The law does not safeguard the jobs of employees who remove themselves from dangerous situations. However, in December UNMIK adopted an administrative instruction on labor inspection, and labor inspectors began their work at year's end.

 

f. Trafficking in Persons

 

Regulation 2001/4 specifically prohibits trafficking in persons and trafficking was a serious and growing problem. The province was mainly a destination point, but also a transit point for women and girls trafficked for the purpose of prostitution. Police and the IOM agree that although there is little data, the problem is probably large.

 

The majority of trafficked women were from Moldova, Ukraine, Bulgaria, and Romania, and to a lesser extent from Kazakhstan, Belarus, and Albania. Security authorities also reported that women and girls were smuggled through Kosovo to Macedonia, Albania, and Italy. There were several kidnapings and disappearances of young women who subsequently were not located. Some local sources believed that these women were the victims of traffickers in some cases, although there is no clear evidence that this was the case. Traffickers into the province are reportedly linked to organized crime, rather than with employment agencies or marriage brokers. Evidence suggested that trafficking in women was an example of a coordinated effort between ethnic Serbs and Albanians, like other areas of organized crime.

 

MONTENEGRO

a. The Right of Association

 

All workers except military and police personnel have the legal right to join or form unions, and most if not all of the workforce in the official economy is organized. Both official, government-affiliated unions and independent unions exist. Because the independent labor movement largely is fragmented, there have been few tangible results in the form of improved working conditions or higher wages. A general lack of resources within the economy also acted as a restraint.

 

Strikes were frequent during the year, mainly caused by the economic situation, unpaid salaries, manipulation and fraud in the privatization process, and denial of union rights. In May dissatisfied workers, including at the Bokeljka Factory in Kotor, started blocking main roads in order to pressure the authorities to meet their demands.

 

Unions may affiliate with international labor organizations; however, access to international labor unions is limited.

 

b. The Right to Organize and Bargain Collectively

 

The law provides for the right of collective bargaining; however, collective bargaining remains at a rudimentary level of development. Instead of attempting to make progress on the collective needs of all workers, negotiations generally center on advancing the needs of a specific group of workers. Job security fears prevail as a result of the high unemployment rate, and these fears limit the unions' willingness to take action. Another factor impeding the collective bargaining power of the workers was the weak economy, in which high unemployment gave employers the upper hand in setting wages and work conditions, as workers competed for relatively few existing jobs.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced and bonded labor; trafficking in women for prostitution was a problem (see Section 6.f.).

 

The law prohibits forced and bonded labor of children; however, trafficking in girls for prostitution was a problem (see Sections 6.d. and 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The official minimum age for employment is 16 years, although in farming communities, it is common to find younger children assisting their families. Children also can be found in a variety of unofficial retail jobs, typically washing car windows or selling small items such as cigarettes or newspapers. The high unemployment rate ensures that there is little demand for child labor in the formal sector.

 

The law prohibits forced and bonded labor of children; however, trafficking in girls for prostitution was a problem (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

The minimum wage is $47 (100DM) per month, and large government enterprises, including all of the major banks and industrial and trading companies, generally observe this wage. The minimum wage is comparable to unemployment benefits or wages paid to those on mandatory leave. The gross average wage is approximately $175 (400DM) per month, with a disposable average wage (after social contributions and payroll taxes) of approximately $90 (220DM) per month. This amount is insufficient to provide a decent standard of living for a worker and family. The latest available data suggests that households spent almost all of their resources on basic needs, such as food, clothing, and housing. The official workweek is 40 hours.

 

Neither employers nor employees tended to give high priority to the enforcement of established occupational safety and health regulations, focusing their efforts instead on economic survival. In view of the competition for employment, workers are not free to leave hazardous work situations without risking the loss of their employment.

 

f. Trafficking in Persons

 

The Montenegrin Criminal Code does not specifically address trafficking in persons and trafficking was a growing problem. There were reports that Montenegrin authorities facilitated trafficking.

 

The Republic primarily was a transit point for trafficked women and children; but also was a destination point. Women were trafficked from Romania, Ukraine, Moldova, China and Russia, often through Belgrade and on to Italy, other European countries, and Kosovo. Some women also were trafficked through Montenegro to Albania and then on to other European countries. Trafficking steadily has increased since the Kosovo war; however, precise figures on the number of women and children trafficked through Montenegro are not available.

__________

1 Throughout this report, dual town names are given: The Serb town name, followed by the Albanian name, except where towns universally are known by one name.

 

 

SERBIA & MONTENEGRO - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

SERBIA & MONTENEGRO - STANDARD WORKWEEK

Serbia: The official workweek, listed as 40 hours, is not respected because of massive underemployment and unemployment.

 

Kosovo: The official workweek, is 40 hours, but has little meaning in an economy with massive underemployment and unemployment.

 

Montenegro: The official workweek is 40 hours.

 

(Section 6.e. Acceptable Conditions of Work, Serbia and Montenegro – Report of Human Rights Practices, 2001, U.S. Department of State. (The State Department’s report on the Federal Republic of Yugoslavia contained three separate sections: Serbia, Kosovo, and Montenegro.)