Delegation of UPFBiH with Ambassador Murphy: Call to authorities for close cooperation with the Association

(Patria) - The delegation of the Employers' Association in FBiH met today with the delegation of the United States Embassy in Bosnia and Herzegovina, led by US Ambassador Michael J. Murphy. The UPFBiH was represented at the meeting by President Adnan Smailbegović, Director Mario Nenadić, Vice-President of the Steering Board Snježana Koepruner, Steering Board member Adem Hanić, and UPFBiH members Kenan Ahmetlić and Ante Miloš.

The UPFBiH representatives informed the Ambassador about the Association's activities, as well as the state and prospects of the real sector in FBiH and the main obstacles and needs for improving the business environment and more functional operations in general.

Employers emphasized that the cost of labor in FBiH is the highest in Europe and that it is necessary to reduce parafiscal and fiscal burdens as soon as possible, as well as to reform the healthcare system in a way that reduces the burden of paying sick leave from employers from 42 to 15 days.

They also stressed that business in FBiH is stifled by cumbersome and expensive administration, the mismatch between the education system and the needs of the labor market, and a particular problem is the shortage of labor, as well as unrealistic records of employment services regarding unemployed persons.

Employers also pointed out that foreign and domestic investments are deterred by the inefficiency of state administration, complicated administrative procedures, the complexity of tax and other regulations that directly or indirectly affect domestic and foreign investments, high parafiscal burdens, underdeveloped communal infrastructure, as well as the general creation of a tense political situation and insecurity, which is not a good prerequisite for investment.

This was also mentioned in the report on the investment climate in Bosnia and Herzegovina published by the US State Department, which warned of a complicated and insecure system.

At today's meeting, it was also emphasized that the priority activities of UPFBiH, which are an integral part of the document "What Employers Expect from the Authorities", presented to the authorities before and after the elections, include improving the business environment, abolishing and reducing parafiscal levies, reducing the burden of labor costs in order to increase the minimum and all other employee wages, liberalizing the labor market, and strengthening economic and social dialogue, but that there has still been no adequate and timely reaction from the authorities.

The activities aim to strengthen the real sector, increase employment, wages, and create better working conditions, reduce the emigration of young and qualified staff, and create a better business environment.

Ambassador Murphy emphasized that a very informative discussion was held and that the Association is diligently working on preparing measures and laws to facilitate business, and he called on the leadership of the Federation of BiH for close cooperation with the Employers' Association in FBiH, emphasizing that cooperation is key to effective reforms.