Urgent Call for Wage Increases in Montenegro’s Public and Private Sectors

UPDATE: In a critical development for workers in Montenegro, Srđa Keković, General Secretary of the Unija slobodnih sindikata Crne Gore, has announced that there is funding available for significant wage increases across both the public and private sectors. This urgent message comes as the Union of Employers has agreed to raise the calculation value of the coefficient to €100 gross, aiming to address rising living costs and retain the country’s youth.

During a meeting yesterday, the working group of the Ministry of Labor discussed amendments to the General Collective Agreement. “We expect our proposals to be accepted by decision-makers,” Keković stated, emphasizing the pressing need for action. He expressed concern over the government’s lack of dialogue with trade unions, highlighting that “the absence of social dialogue is evident,” as their requests for meetings have gone unanswered.

Minister of Labor, Employment, and Social Dialogue Naida Nišić expressed surprise at the union’s push for a targeted wage increase of 10% solely for the public sector. She stated, “We are open to discussions on this matter,” indicating a willingness to explore compromises. However, she also made it clear that any unilateral wage increase for the public sector without consideration for the private sector would not receive her approval.

Keković countered this, insisting that wage increases should encompass both sectors. “We are grateful to the Union of Employers for recognizing the need to maintain standards,” he said, underscoring the urgent need to prevent young people from leaving the country.

He detailed the government’s obligation to present the draft budget law, which has not yet been delivered to the Social Council, causing concern among social partners. With inflation rising, he emphasized that the calculation value must increase to preserve the achievements of the ‘Europe Now’ initiative. Without this adjustment by January 1, Keković warned that Montenegro risks losing the progress made toward aligning with European wage averages.

The World Bank has urged the government to halt budget growth and avoid salary increases, yet Keković counters that there are funds available within the budget to support the requested €90 million gross for public sector salaries. He cited examples of inflated expenses, noting that political parties’ funding has doubled in recent years, while costs for consultancy services have surged, indicating potential areas to reallocate funds for wage increases.

Keković declared, “There is money available,” reiterating the need for the coefficient to increase to €100, which he insists is the minimum requirement to encourage people to remain in the country. He criticized the government for failing to engage in meaningful social dialogue, calling for a more responsive approach to workers’ needs.

The Unija slobodnih sindikata organized a press conference last week, stating their frustration over the government’s lack of response to previous initiatives. They have conducted budget analyses showing that a 10% wage increase is feasible and have vowed to escalate their actions if a compromise is not reached, hinting at potential protests.

As this situation develops, workers and unions across Montenegro are watching closely, eager for a resolution that will impact their livelihoods and the country’s economic future.