More than 210 employees of Montenegro’s state passenger rail operator Željeznički prevoz Crne Gore (ŽPCG) joined a one-hour warning strike on Sept. 2, stopping passenger services and setting a Sept. 9 deadline for a response to their wage demands. The company employs around 370-380 workers, meaning more than half its workforce participated in the action.
Passenger trains were halted between 0900 and 1000 local time. Unions are seeking a temporary €200 monthly pay increase until a new collective agreement is concluded. Union representatives said average wages at ŽPCG are approximately €850-€870 per month, around €200 below Montenegro’s national average.
Unions warn of broader industrial action
The unions have warned that failure to reach an agreement could trigger wider industrial action, potentially including a broader suspension of rail services subject to minimum-service requirements. The Sept. 2 action was intended as a warning rather than a prolonged shutdown, leaving time for negotiations before the Sept. 9 deadline.
Participation by more than 210 employees indicates substantial support for the demands. The dispute adds labour-cost and operational pressure to a passenger railway system already dealing with infrastructure limitations and rising investment requirements.
Railway investment faces workforce challenge
Montenegro is investing in railway modernisation with support from the EU and international financial institutions, including work on the strategic Bar-Belgrade corridor. The labour dispute highlights the parallel requirement for a financially sustainable workforce to operate and maintain upgraded infrastructure.
ŽPCG is one of several state-controlled companies forming Montenegro’s fragmented railway system. Passenger services, freight operations, infrastructure and rolling-stock maintenance are divided between separate companies, many of which face financial or operational pressures. This structure can complicate reform because improvements in one part of the railway system depend on the performance of others.
Rising wages increase pressure on state rail operator
The wage dispute comes as Montenegro’s labour market is becoming tighter, with average salaries rising significantly in recent years while tourism, construction and other sectors compete for workers. State-owned transport companies face increasing competition for skilled employees when their pay levels fall behind national or private-sector wages. Rail operations require specialised personnel, including drivers, technical staff and maintenance workers, who cannot necessarily be replaced quickly.
This strengthens the unions’ negotiating position while increasing the financial challenge for ŽPCG. A €200 monthly increase applied to a substantial share of the workforce would represent a recurring payroll expense rather than a one-time payment. ŽPCG would have to cover the additional cost through higher revenue, savings, government support or a combination of those measures. No estimate of the annual cost of the union demand has been disclosed.
Service disruption could affect wider transport network
The economic impact of prolonged industrial action would depend on its duration and the scope of minimum-service obligations. Passenger rail carries considerably less traffic than Montenegro’s road network but remains important for commuters, students and travellers using connections between Bar, Podgorica and northern municipalities. Rail is also included in the government’s broader strategy for reducing road congestion and improving sustainable transport.
A prolonged interruption could shift additional traffic onto roads that are already congested. The strike follows a heat-related track problem in August that disrupted services on the Bar-Podgorica route and renewed attention to railway maintenance and network resilience. Labour action adds another operational uncertainty while railway authorities are working to improve service reliability.
Financial sustainability remains a key issue
The government and railway companies face competing priorities. Controlling payroll costs remains important for financially weak state-owned enterprises, while losing experienced employees can affect safety, reliability and operational capacity. As national wages increase and workers have alternative employment opportunities, maintaining a low-wage strategy becomes more difficult. The issue could become more significant as EU-supported railway investment advances because upgraded infrastructure requires trained operating and maintenance personnel.
Staff shortages or industrial disputes that restrict services could reduce the economic return from infrastructure investment. Montenegro’s railway network is also expected to contribute to regional transport. Passenger services connect the country with Serbia, while freight connections through the Port of Bar form part of Montenegro’s logistics strategy.
