Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Convention, 1970 (No. 131) - Serbia (Ratification: 2000)

Other comments on C131

Observation

2012
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2005

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Articles 1 to 5 of the Convention. Minimum wage fixing system. The Committee recalls the comments of the Confederation of Autonomous Trade Unions of Serbia (CATUS), which were transmitted to the Government on 3 October 2011, concerning alleged abusive pay practices in five construction and road maintenance companies of the Nibens group. According to CATUS, lack of effective control and inspection have permitted these heavily indebted and recently privatized companies not to pay the minimum wage for months creating a critical situation for more than 5,000 workers.

In its reply, the Government indicates that very limited cases of non-payment or delayed payment of wages have been identified in three companies, “Kragujevac”, “Beograd” and “Vojvodinaput Bačkaput”, and administrative proceedings have been initiated by the inspection services. While noting the Government’s explanations, the Committee would appreciate receiving more detailed information on the outcome of the proceedings against the enterprises concerned (amount of fines imposed, sums of wages recovered, etc.) as well as any other measures taken to prevent and punish infringements of the minimum wage legislation.

Furthermore, the Committee notes the comments of the Trade Union Confederation (TUC) “Nezavisnost” which were attached to the Government’s report. The TUC “Nezavisnost” refers to problems in the practical application of the Convention such as abusive practices whereby employers decide to pay wages but not corresponding contributions, or inversely, to pay contributions but not the wages, and cases of employees who after having been paid the minimum wage are requested by the employer to return part of the amount received. The TUC “Nezavisnost” also indicates that the current minimum wage rate covers only one third of the average consumer basket and less than even the minimum consumer basket, and therefore the basic needs of workers and their families are not satisfied even when employers comply with the minimum wage legislation.

Moreover, the Committee notes the comments of the Confederation of Free Trade Unions, dated 31 August 2012 and transmitted by the Government on 30 October 2012. The Confederation of Free Trade Unions points to serious difficulties of enforcement and indicates that there are practically no sanctions for employers violating the minimum wage legislation. The Confederation also considers that the minimum wage is far from reflecting the real economic conditions and is not sufficient to cover the most basic subsistence needs of workers. The Committee requests the Government to submit any comments it may wish to make in response to the comments of the TUC “Nezavisnost” and the Confederation of Free Trade Unions.