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Reading: Workers in Bosnia and Herzegovina’s live below the Poverty Line
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Sarajevo Times > Blog > BUSINESS > Workers in Bosnia and Herzegovina’s live below the Poverty Line
BUSINESS

Workers in Bosnia and Herzegovina’s live below the Poverty Line

Published: January 15, 2024
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This Monday, in the political minutes of the morning program of BHRat, the quest was Adis Kečo, head of the professional service in the Federation of Independent Trade Unions of BiH.

-Minimum wage-

“First of all, I need to point out that the Federation of Independent Trade Unions of Bosnia and Herzegovina is in some way against this decision of the Government of the Federation of Bosnia and Herzegovina to make the minimum wage 619 BAM. Two years ago, we started a campaign in which we demanded that the minimum wage be 1,000 BAM, that a law on the minimum wage be passed, and what was up to the Federation of Independent Trade Unions of BiH, we did everything. In the previous convocation of the authorities, we managed to gather both the position and the opposition, and they signed a joint statement and sent a joint proposal for a law on the minimum wage, which was created by the Federation of Independent Trade Unions of Bosnia and Herzegovina. We managed to lobby for that text of the law in that draft form to be adopted in the House of Representatives of the Parliament of the Federation. We managed to reach an agreement with the representatives of the executive power in this convocation to consider that law and there was a sincere will and intention to adopt that law. However, due to other complications, the reform of the tax system, which implies relief from salary contributions. What is also important to note is that the Parliament voted the conclusion that all three types of laws will be adopted as a package. Due to these certain problems during the creation of the minimum wage law itself, the Government failed to organize everything in order to adopt all three laws. And it passed that decree, which the Government of the Federation is obliged to pass every year. If the minimum wage law had been adopted, we wouldn’t even need that methodology. This Government arrived at this figure using that methodology. You mentioned the amount of the consumer basket, which is almost 3000 BAM. With these salaries, with these incomes, it can definitely be said that our workers, as well as the citizens of the Federation of Bosnia and Herzegovina, live on the poverty line, and we dare say below the poverty line. Considering the amount of income they earn based on work, many foodstuffs are a mental noun for many citizens of the Federation of Bosnia and Herzegovina,” he said.

-Economic and Social Council-

“It is a great danger. If this decision would not be binding for the employer, then we are going back at least 5 years, which is that we do not have a regulation defining the minimum wage. I don’t know why the Chairman of the Economic and Social Council of FBiH made such a statement. On the other hand, I need to mention that the Federation of Independent Trade Unions of Bosnia and Herzegovina did not participate in that Economic and Social Council and the sessions have not been held since November 2017. Because the previous council that worked in the previous few years worked far from the public eye, on the one hand. On the other hand, it worked on the principle of the agreement on the work of the Economic and Social Council, which was signed by certain branch unions. It was foreseen in 2002 that the Federation of Independent Trade Unions is a delegation, as well as the Government of the Federation, as well as the Association of Employers. That council gave its consent in principle to the regulation on the methodology for calculating and harmonizing the minimum wage, which this government only used and nothing more. And came to the realization and calculation that the lowest salary is 619 BAM. I should definitely mention that any amount below 1000 BAM is absolutely unacceptable from the Federation of Independent Trade Unions of Bosnia and Herzegovina. We are asking for a law on the minimum wage to be passed so that it is 1,000 BAM. As soon as the new Government of the Federation was appointed, we sent a request to the Government of the Federation and asked for the work of the Economic and Social Council to be established in the manner foreseen by the founding agreement, not by the work agreement. We received an answer that it is being worked on and we believe that there will be progress in that segment. Until now, we have had a correct social dialogue with the new Government of the Federation in terms of certain laws that were proposed by the relevant ministries, these laws came to us for consultation, we gave our proposals, participated in certain workshops and work meetings. We can be satisfied with that compared to the previous government from which we were excluded,” he said.

-Initiative for a minimum salary of 1000 BAM-

“It is true that the Federation of Independent Trade Unions launched a campaign in 2018 when 1000 BAM was then and now it is not possible to compare. That is why we expect that the law on the minimum wage that is intended to be adopted, that according to it the minimum wage will be higher than 1000 BAM. Indeed, through negotiations with the Government of the Federation of Bosnia and Herzegovina, we will insist that it be more than 1000 BAM. Inflation has eaten up a lot in that segment, and we believe that just by adopting a law that will provide for only 1000 BAM, such a significant effect would not be achieved, we believe that it is not enough. We expect the minimum wage to be higher than 1000 BAM. If contributions were also included in the minimum wage of 1000 BAM, then it would not be a law on minimum wages, but on minimum incomes. Which is unacceptable for us. Considering the large-scale emigration of the workforce, I believe that employers should show at least a little how much they care, because these workers bring them profit and capital,” concluded Adis Kečo, head of the professional service in the Association of Independent Trade Unions of Bosnia and Herzegovina.

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