2022-09-26
| Niš

Debate: Subsidies for Investors, While Workers’ Labour Rights Are Violated

Social and Economic Rights and Sustainable Development project

On 26 September 2022, the Center for Democracy Foundation organised the debate: Subsidies for Investors, While Workers’ Labour Rights Are Violated in Niš. The debate was held as part of the Socioeconomic Rights and Sustainable Development project.

Partaking in the debate were: Željko Veselinović, Sloga Trade Union; Zoran Ristić, United Branch Trade Union Independence; Zorica Miladinović, Journalist at Danas; Danijel Dašić (National Coalition for Decentralisation); Miodrag Stanković, City Councillor of the Niš, My City! Coalition. The discussion was moderated by Ivan Kuzmanović, CDF.

The issue of subsidies granted to employers to create new jobs as well as other incentives received by investors in Serbia becomes particularly important when examined from the point of view of (dis)respecting employees’ labour rights. Our country has not established a clear commercial development strategy. Factories are opened using large government subsidies, yet many workers do not receive adequate protection of their labour rights. Many employees have testified that their rights have been violated in respect of their place of work and the work they perform. These range from various forms of coercion by employers, inadequate working conditions and working hours, failure to receive payment of wages, all the way to cases of serious violations of health and safety in the workplace. At the same time, we are still waiting for the new Labour Law to be passed, which is to be in accordance with EU and ILO standards.

What are the consequences of government subsidies policies on the workforce? What conditions must be met by employers who receive these grants?; and, is there efficient control concerning the fulfilment of employers’ obligations? How secure are these jobs, do subsidised investors have the right to lay off workers? Are legal norms under violation in this area and how do the Labour Inspectorate and other competent bodies act in these cases? Do judicial authorities react effectively and what has judicial practice demonstrated so far? How capable are trade union organisations of protecting the rights of these workers? What has been the reaction of employers’ associations to all of this? How does the media report on the violation of labour rights? In terms of this issue, what role does the public and civil society play in Serbia? We attempted to respond to this and other open issues during the Subsidies for Investors, While Workers’ Labour Rights Are Violated debate.

During the discussion, the conclusion was drawn that large subsidies granted to foreign investors have resulted in the utter pointlessness of the measure. Workers’ have become disenfranchised and receive wages below the consumer basket. Subsidies are granted in a non-transparent manner. As a rule, investors that receive them fail to acknowledge labour rights and will only come to Serbia under the condition that factories be discouraged from organising free trade unions, thus practically rendering trade unions meaningless. In order for us to operate as a legal state, the first step is to adhere to existing legal norms, not only where the Labour Law is in question.

The debate was organised via the Social and Economic Rights and Sustainable Development project, with the financial support of the Olof Palme International Center.