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Sarajevo Times > Blog > BUSINESS > Employers are facing a huge increase in Electricity Prices, Workers are threatened with Dismissal
BUSINESS

Employers are facing a huge increase in Electricity Prices, Workers are threatened with Dismissal

Published: February 23, 2022
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Contracts on electricity supply with new changes enormously increase costs for businessmen. To withstand the new wave of price increases, companies are forced to reduce the number of workers or reduce the amount of wages. This is unacceptable for workers, but also for companies, said the Association of Employers of the Federation of BiH and the trade union of the real sector. They also sent a message to the Government of the Federation of BiH to take responsibility, act on time and prevent dismissals. If there is no reaction, protests, they say, are inevitable.

Limiting electricity price growth to a maximum of 20 percent, as part of last year’s deal, seemed like an adequate solution. But that was not the end. Electricity supply contracts are changing, for the first time since 2011. The changes brought two new points of the contract – for the businessmen in dispute.

“Limited electricity consumption – that you have to announce electricity consumption every month with a tolerance of plus or minus 5 percent. Penalties are very rigorous. If there are any accidents on thermal power units, due to lack of coal or any other reason, so Elektroprivreda will have to import electricity in order to supply consumers – it will pre-invoice the import price and add its costs. So, they are now transferring the complete risk of their business, maintenance of their blocks, management of them, to the economy “, says Adnan Smailbegovic, President of the Board of the Association of Employers of FBiH.

Double monthly bills and large expenses of companies, in the end, will have the greatest impact on workers. Employers faced with a large increase in prices, choose dismissal as the solution among the first options.

“We already have a situation on the ground where workers are offered contracts with the lowest salary, which is this salary of 543 BAM , because many companies paid significantly higher bills for the first six or seven days this year,” said Lejla Catic, president of the Independent Trade Union, forestry, wood and paper processing in BiH.

The president of the FBiH Metalworkers’ Union, Bajro Melez, claims that they have come to a situation where they are asking to stop the dismissals.

The decision is in the hands of Elektroprivreda BiH. Employers offer two: increase the price of electricity by 20 percent or allow Elektroprivreda to change their spending plan during the month to avoid exceeding and paying penalties.

Source: federalna

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