The Federal Ministry of Labor and Social Policy warned that the House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina tonight defeated the Law on Mediation in Employment and Social Security of the Unemployed in the Federation of Bosnia and Herzegovina, one of the key laws for labor market reform that has been in the parliamentary procedure for three years.
As stated in the statement from the Ministry, the law received 45 votes “for”, while 19 deputies abstained, which is equal to against, and 19 of them simultaneously declared that they were against, which did not ensure the necessary majority for its adoption.
The representatives of the HDZ BiH parties – HNS, HDZ 1990, SDA and the Party for BiH who did not support this legal solution bear the political responsibility for its overthrow, even though it is a reform on which the functioning of the labor market, the availability of labor for the economy, and the long-term stability of the pension and disability insurance system directly depends.
“This is the second overturning of this law. The first time it was overturned more than a year ago, after which we initiated an intensive political and professional dialogue in order to remove all possible dilemmas and ensure support for its adoption. Over the past year and more, numerous talks have been held with political parties, including meetings with representatives of the HDZ in Mostar. In those talks, a political agreement was reached on support for the law, and that agreement was then confirmed at the level of the Government of the Federation of Bosnia and Herzegovina,” said Federal Minister of Labor and Social Policy Adnan Delic.
He adds that, despite this, tonight’s vote showed that some political actors did not remain consistent with their own agreements, nor with the interests of the economy and the labor market.
“It is particularly worrisome that the law did not receive the support of even a part of the opposition parties, primarily the SDA and the Party for BiH, even though it is a law that is of crucial importance for the reform of the labor market and for the long-term sustainability of the employment system, and therefore the future of all of us, especially the youth in this country,” the minister emphasized.
The key purpose of this law was to separate active job seekers from those who are administratively registered on the records of the employment office, without the real intention of employment. This would create a realistic picture of the labor market, enable more efficient employment mediation and facilitate access to the workforce for employers who are currently facing a serious shortage of workers.
“We remind you that the Federation of Bosnia and Herzegovina is already facing serious demographic and economic challenges, and the ratio of the number of employees and pensioners is getting closer and closer to one-to-one. In such circumstances, any delay in labor market reforms directly threatens the long-term stability of the pension system,” emphasizes Minister Delić.
He points out that because of this, tonight’s decision is not only a political message, but also a serious blow to efforts to modernize the labor market in the Federation of BiH and harmonize it with the real needs of the economy.
“A special answer is now owed to the unemployed and businessmen, especially those from the parts of the Federation where political parties with a Croatian sign dominate. They are the ones who have the right to ask why the politicians who represent them decided to block the law that was supposed to facilitate access to the workforce and initiate the necessary labor market reforms,” said Delić categorically.
At the same time, he emphasizes that it is important to point out that certain political parties, including part of the opposition, have shown responsibility towards citizens and the economy and supported this law, thus clearly demonstrating that they understand the seriousness of the challenges faced by the labor market in the Federation of Bosnia and Herzegovina.
“Labor market reforms are inevitable. They can be postponed by political calculations, but they cannot be avoided. The only question is how much each new political blocking of solutions that are necessary for its economic and social sustainability will cost the Federation of Bosnia and Herzegovina”, said Minister Delić, according to the Ministry of Labor and Social Policy of the FBiH.
