The delegation of the Association of Employers in the Federation of BiH met today with the delegation of the Embassy of the United States of America in Bosnia and Herzegovina, led by the US Ambassador Michael J. Murphy. In front of UPFBiH, the meeting was attended by President Adnan Smailbegović, Director Mario Nenadić, Vice President of the Board of Directors Snježana Koepruner, member of the Board of Directors Adem Hanić and UPFBiH members Kenan Ahmetlić and Ante Miloš.
Representatives of UPFBiH informed the ambassador about the Association’s activities, as well as the state and prospects of the real sector in the Federation of BiH and the main obstacles and needs for improving the business environment and more functional business in general.
Employers pointed out that the cost of labor in the Federation of BiH is the highest in Europe and that it is necessary to reduce parafiscal and fiscal burdens as soon as possible, as well as that it is necessary to organize the health system in such a way that the burden of paying for sick leave borne by employers is reduced from 42 to 15 days. They also emphasized that business in the Federation of Bosnia and Herzegovina is stifled by cumbersome and expensive administration, the mismatch of the education system with the needs of the labor market, and a special problem is the lack of labor force, as well as the unrealistic records of the employment services on unemployed persons.
Employers also pointed out that foreign and domestic investments are rejected by the inefficiency of the state administration, complicated administrative procedures, the complexity of tax and other regulations that directly or indirectly affect domestic and foreign investments, large parafiscal burdens, underdeveloped communal infrastructure, as well as the general creation of a tense political situation and uncertainty, which is not a good assumption for investing. This was also mentioned in the report on the investment climate in Bosnia and Herzegovina published by the US State Department, which warned of a complicated and unsafe system.
At today’s meeting, it was also emphasized that the priority activities of the UPFBiH, which are an integral part of the document “What employers expect from the authorities”, which was presented to the authorities before and after the elections, are the improvement of the business environment, the abolition and reduction of parafiscal levies, the reduction of the burden of labor costs in with the aim of increasing the minimum and all other wages of workers, liberalizing the labor market and strengthening the economic-social dialogue, but there is still no appropriate and timely reaction from the authorities.
The activities are aimed at strengthening the real sector, increasing employment, wages and creating better working conditions, reducing the departure of young and qualified personnel and creating a better business environment.
Ambassador Murphy emphasized that a very informative conversation was held and that the Association is working diligently to prepare measures and laws to facilitate business, and called on the leadership of the Federation of BiH for close cooperation with the Association of Employers in the Federation of BiH, stressing that cooperation is the key to effective reforms.
