The cost of living in Republika Srpska is increasing from month to month, while the incomes of a large number of workers do not follow this growth. The trade union consumer basket for August amounted to 2,937 KM, which is only 3.5 KM less than 3,000 marks. Božana Radomir, expert associate for economics at the Federation of Trade Unions of the Republika Srpska, spoke about the relationship between wages and living costs for BHRT.
According to her, the trade union consumer basket includes products and services necessary for a working family of four to meet basic, existential needs.
In August, food costs exceeded 1,340 KM, while the costs of housing, communal services and similar expenses exceeded 1,760 KM. These two categories account for about 70 to 71 percent of the total costs of the union’s consumer basket.
Radomir points out that average salaries in certain industries can only cover the costs of these two categories, while the situation for a large number of workers is much more difficult.
“In two to three activities, such as financial organizations, information and communications, professional, scientific and technical activities, that average salary actually covers only those two segments of expenses contained in the union consumer basket.”
It is particularly worrying, he says, that workers in 10 to 11 economic, production and service activities can barely cover food costs with their average wages.
In catering and construction, wages are even less than food costs, while in manufacturing, trade, transport and communications they are close to the amount needed to feed a four-member family.
An additional problem is the fact that around two-thirds of employees in Republika Srpska receive a lower than average salary.
The trade union consumer basket is 180 KM bigger for one year
Compared to August last year, the union consumer basket is now more expensive by about 180 KM. Of this increase, about 44 to 45 percent refers to the increase in food costs.
Radomir warns that new price increases would further threaten the living standards of working families.
What is a living wage?
Last week, the Federation of Trade Unions of Republika Srpska marked the Day of Dignified Salary, and during this month it is also conducting a survey among workers through an online questionnaire. The goal is to obtain information about their income, expenses, and what workers consider a decent salary.
The Federation of Trade Unions of the Republika Srpska called on government representatives to sign a general collective agreement that would regulate workers’ rights, including wages and other rights regulated by collective agreements.
At the same time, they are also seeking an extension of the decision on limiting margins and controlling price formation.
According to Božana Radomir, the existing decision, although it covers a narrower range of products than the Union of Trade Unions initiated, proved to be useful in limiting price growth.
“Once again, we call on the Government of Republika Srpska, one thing is to sign a general collective agreement, and on the other hand, to have an extension of the decision on limiting product margins.”
As stated, the existing decision does not include a number of products, including meat and meat products, fruits, vegetables, fruit and vegetable products, rice, pasta, as well as products for maintaining personal and household hygiene.
The trade union is therefore asking for the extension of price control measures, while at the same time warning that the rising costs of food, housing, communal services, education, clothing and transport are increasingly burdening household budgets.
