One of the negative consequences of increasing the minimum wage in the Republika Srpska to 900 marks is the increase in the price of bakery products.
Employers announce new price increases for goods, craft services and utilities. The Prime Minister of Republika Srpska replies that the price increases are unjustified and will be brutally controlled.
Bakers in Republika Srpska raised their prices by 10 percent. Five-mark pie and yogurt is no longer a breakfast for everyone. The Prime Minister of Republika Srpska is angry with the employers for justifying the increase in prices with an increase in the minimum wage. It cannot happen, says the Prime Minister, that milk and bread are cheaper in Italy than in Republika Srpska, where wages are lower. He reminds that the Government helps employers with 420 million marks per year. That’s why he ordered the Inspectorate – brutal controls.
“I have the feeling that individuals are taking advantage of the situation and getting enormously rich, and we will put an end to that. Raising the minimum wage is in the direction of suppressing the gray zone, blue, red and white envelopes. You raised the loudest voice and you are the ones who protest the most,” the Prime Minister of Republika Srpska Radovan Viskovic points out.
The employers reply that they are not criminals to be threatened with brutal controls. In the final accounts, they say, you can see whether they are making extra profit. They point out that the growth of goods by 10 percent, utilities by 30 percent, and craft services by up to 50 percent is imminent.
“The story of unrealistic enrichment makes no sense, because profit tax is paid in the final accounts. The Prime Minister should deal with the fight against the gray economy and non-payment of taxes, not by arguing with employers. In this case, he is arguing with merchants and citizens,” says Saša Trivić, president of the Union of Employers of Republika Srpska.
Citizens believe that price increases are unjustified and that excuses are being sought for new price increases.
“As long as we have free price formation, we believe that the sky is the limit as to how much it can grow and how well it will profit in a crisis,” believes Murisa Marić, president of the Consumer Protection Association “Don”.
Economic analysts believe that the partial increase in prices is justified, because with the increase in the input price of products, which includes the cost of labor, the output price of goods and services also increases.
“Opening up space for speculation, manipulation by individuals, producers who, in the wave of changes, using the inattention of institutions and customers, significantly increase their prices and make extra profit”, says economic analyst Aleksandar Ljuboja.
Market inspectors issued misdemeanor warrants in the amount of 150,000 marks due to exceeding margins and other irregularities in basic food markets.
“Failure to display prices, false prices, non-adherence to prices, they display one price and write another price, declarations, failure to respect margins. The fines are not small. 10,000 BAM for companies and 5,000 BAM for the responsible person, and 6,000 BAM for small businesses,” points out Radivoje Gavric, chief market inspector in the RS Inspectorate.
The Inspectorate of the Republika Srpska has announced a new regulation on the limitation of margins, which, unlike the previous one, will cover a larger range of products.
