The Union of Employers of Montenegro (UPCG) will, as before, provide support to policy makers and decision makers, but also be a critic of all bad decisions and solutions that are implemented without analyzing their impact on the Montenegrin economy, this business association announced.
As stated, the Executive Board of the Union of Employers concluded that this organization, with its existence and activity for 20 years, as a social partner, has proven perseverance and consistency in creating fair conditions for business, equality of economic entities, competitiveness and development of the Montenegrin economy.
Also, since its foundation, UPCG has been intensively advocating for the suppression of selective actions by state authorities and enabling the privileged position of individuals and companies, the gray economy, and demanded greater responsibility and transparency in public spending – it was announced.
Because of all of the above, they point out, the Employers’ Union, as an unavoidable factor, must be included in the decision-making process that essentially concerns its membership from the very beginning.
The premise of a real social dialogue is the implementation of previous tripartite consultations – Government, trade unions and employers – about the real situation and potential directions of development of economic and social relations – the announcement reads.
As they stated, at the session held in the UPCG, the Executive Board specifically referred to the topics of digitalization of public administration, which would solve many problems in the employment of foreigners, the lack of adequate domestic labor force – especially during the summer tourist season, as well as the announcement of the Initiative for shortening the working hours times.
Considering the Initiative for shortening working hours that has been present in the public for the last few days, the Executive Board of the UPCG expressed its suspicion that not all possible effects and consequences that it could cause have been taken into account. There is a fear that the bad effects would outweigh the positive ones, that is, that the implementation of the mentioned measures could lead to a decrease, rather than the expected increase, of budget revenues, as well as the productivity and competitiveness of the economy – they said.
In the case of the proclaimed shortening of working hours from 8 to 7 working hours, the IO pointed out that the economy remained deprived of analysis or at least additional clarification – how it would be implemented, to what extent it could affect the company’s work processes, which activities would be able to implement the same, and what will happen to the branches where the workplaces are covered 24 hours a day.
Although the initiators of this idea refer to the practice in certain EU countries, it should be pointed out that the possible introduction of such changes was preceded by test periods, precisely because of the assessment of the impact on the economy, the level of productivity, competitiveness, the impact on the budget, the reduction of unemployment, costs and the number of lost days on the basis of sick leave, etc. – stated by UPCG. Also, they add, the variety of accepted working time models in EU countries indicates the sensitivity and complexity of this issue and the need for detailed analyses.
However, only a few of them have legally regulated weekly working hours shorter than 40 hours, the rest are left as an option for companies to regulate this issue internally based on the needs of their processes and market conditions. Productivity in EU countries, which have adopted some of the models of different working hours, is traditionally the highest, not only among EU countries, but also wider, which in our country, but also in the Balkans in general, are not data we can boast about – they clarified.
One gets the impression that, they add, the announced shortening of working hours would only benefit the public administration, which records an increasing number of employees day by day.
Although more numerous, and recently significantly boosted by wage growth, its efficiency and effectiveness are lacking and far from the expectations of citizens and the economy. We should not lose sight of the fact that, according to international standards, a break is not included in regular working hours, and the discussion on this topic would most likely lead to the introduction of a minimum hourly wage, i.e. payment according to the time worked, which is the practice in practically all EU countries – they clarified.
The executive board also referred to the fact that we have over 40,000 unemployed persons, which requires special analyzes and new normative solutions. We also have over 50,000 employees in the public administration, with a large number of pensioners and, unfortunately, a large number of persons in a state of social need, and with the fact that 99% of our economy consists of SMEs, that the number of blocked companies is increasing day by day (over 50% of the total number of economic entities), IO UPCG is of the opinion that decisions that have an impact on the economy, employees and the state cannot and must not be created based on an assessment of what is pleasant to hear.
Messages, and especially decisions, must be responsible and grounded, and made based on the real situation and indicators – the Employers’ Union states. As an important issue for all areas of economic functioning, IO considered the issue of digitization in public administration.
Unfortunately, that segment is seriously lagging behind and is not even close to proportional to the needs of the economy. In contrast to the state, businessmen have largely improved their business processes and transferred them to an electronic work system, while on the other hand, public administration has remained tied to the performance of procedures and jobs “over the counter” and cash registers for many countries and even in the region. – reads the statement.
We have an obvious example of such an ineffective system at the moment in the current procedures for hiring foreigners. Digitization of application submission, elimination of “redundant” documentation, networking of the systems of all institutions involved in this process, especially the Ministry of Internal Affairs, the Revenue and Customs Administration and the Administration for Inspection Affairs, would solve many problems pointed out by the UPCG for many years – they pointed out.
The executive board also discussed and concluded that the problem of shortage of seasonal workers for work in tourism is increasing every year.
Despite the large number of unemployed persons on the records of the ZZZCG, employers are forced to reach for labor from distant markets. However, there are also numerous barriers that come to the fore, as they do every year, in the peak of the summer tourist season.
That is why the UPCG believes that, until the conditions are created for Montenegro to approve permits for foreigners for seasonal work through the DKP, additional liberalization should also be aimed at seasonal workers who would work in Montenegro for up to 90 days, following the example of countries that are also tourist destinations – suggest.
The normative framework in the field of employment and work of foreigners requires additional changes that must be harmonized with the expressed needs of the economy and the labor market, but which must follow international standards.
How is the finalization of the text of the Amendment to the Law on Foreigners in progress, since some decisions and proposals of the UPCG are still being “weighed” following, among other things, events in the region and Europe, because the Ministry of Labor and the Ministry of Labor play a key role in this area in addition to the Ministry of Interior of social welfare. Therefore, the UPCG will be able to present its final position after the opening of the public hearing – the announcement concludes.
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