Adoption of the Draft on Law on Strike is to slow down foreign investments in Serbia

If the proposed Draft of the Law on strike is adopted, it will greatly influence foreign, direct investment slowdown in Serbia and it could also affect dislocation of current production sections of some German and foreign investors outside Serbian border, the Delegation of German Economy in Serbia announced.

The Delegation of German Economy warns that the current public discussion on the Draft of the new Law on Strike is not transparent and that, if adopted in such as form, will influence situation in the overall Serbian economy.

As it has been said in the announcement, public discussion is not "visible" in public and is focused on only three public discussions in the summer month July when a number of key players and a large part of the public is on holiday. It is also necessary to change the attitude of the current Task force and respect equal tripartite in a dialog which is not the case now.

The Delegation of German Economy in Serbia consider the Draft pf this law is much worse solution than the previous Law dated 1996 and that it is necessary either to write a completely new Draft or to great extent change the current one obeying equality criteria of all parties included.

It is necessary, they say, that rights and obligations of both parties should be precisely defined in the Draft as well as in all other clauses that are vague, incomplete or can be interpreted in different ways.

Employers consider the current Draft on the Law (even without lockout) to be completely unacceptable when it comes to numerous suggested items, and if is adopted in such as form, it will significantly influence worsening and insecurity of all economic flows in Serbia.

As it has been pointed out, if this proposed Draft is adopted as a Law, it will greatly influence a slowdown of foreign, direct investments in Serbia and it could also influence dislocation i.e. moving of current production sections of some German and foreign investors outside Serbian borders. None of the foreign investors wants to invest in the country where it has a situation with his company where he cannot control his own production processes flow or to bring into question orders defined in the contracts which are time-framed in the serial production process.

Manager of the Delegation of German Economy in Serbia, Michael Schmidt, points out that the change of the current Labor Law, for which all companies are interested in, among them 370 German ones which operate in Serbia employing over 25.000 people, is essential but that it would not be so if the current Draft of the Law on Strike enters further procedure.

- Apart from our efforts to inform all our members on the Draft and public discussion, I have an impression that a very small number of them has been informed at all on the matter although we have already had some negative reactions to the Draft from the companies which are the biggest German employers in the country. This is not about just two or three items of the Draft.

- There is a large number of non-defined and problematic items in the Draft to be adopted in such a form by the Ministry of Labor, Employment and Social Policy and to enable its enter further parliamentarian adoption procedure - Michael Schmidt stresses out.

The Delegation of German Economy in Serbia also think that this kind of Draft on Strike is contrary to interest of both local and foreign employers and stresses out that potential adoption of such a Draft will decrease the level of interest of German companies to further put direct investments in Serbia.

What the Draft of the Law on Strike brings

- Strike shall be organized at work in the form of peaceful gathering or in a different way.

- Strike shall be organized in a way it does not cause damage to an employer.

- Announcement of strike shall be made five dates prior to the event latest.

- Strike shall not be allowed for members of army, security-information agency, officials, emergency medical staff, flight control.

- During strike duration, an employer must not replace participants in strike with other staff.
- Minimum operations process shall be enables in the chemical industry, industry of steel, ferrous and non-ferrous metallurgy.

The Ministry of Labor claims that the Draft defines the employees` rights in strike in more details.

- According to new Draft, it is possible to organize strike at work or any other place while the current law proscribes that the place of gathering cannot be outside an employer`s place of work. The collective bargain would define minimum operations process and in case there is no one, arbitration would define it instead of an employer - the Ministry claims.