Wood processing industry warns of consequences of Minimum Wage Decision: Prices will increase, we are already suffering consequences

(Patria) - Representatives of leading export companies from the wood processing industry from across the Federation of BiH, which
employ around 25,000 workers in FBiH and export to more than 30 countries in Europe and the world, held a meeting to discuss the impact of the Minimum Wage Decision for 2025. The decision was assessed as extremely destructive, especially for a sector that has already been suffering the consequences of the energy crisis, rising raw material prices, and reduced demand in the EU market for four years.

The overall profitability of this branch is at a very low level and below the national average. This decision will cause a significant increase in costs for more than half of the companies, which predict an increase between 10% and 20%, while 15% expect cost increases of as much as 20% to 30%. At the same time, already weakened export competitiveness will be further threatened due to high logistics costs and border delays, and many companies have already halved their turnover.

Price increases, as responded by 65% of companies, represent the biggest attempt to overcome the effects of this decision, if it remains in force. However, most serious companies have already completed negotiations with foreign buyers and agreed on production capacities for 2025, which will further complicate adaptation to these changes. At least a third of companies will also have to reduce their workforce, which will particularly affect socially sensitive categories and further endanger socio-economic stability. Many companies are already announcing the suspension of new and already initiated investments and changes in employee reward systems to cope with growing pressures.

Representatives of these companies unanimously supported the principles of the Minimum Income Regulation prepared by the Employers' Association of FBiH as a compromise solution that takes into account the real economic possibilities, and warned of the possibility of radical measures, including strikes, work stoppages, and halting future investments, if the Decision remains in force without adjustments.

This situation requires an urgent reaction from all relevant actors to preserve economic stability and jobs, through social dialogue within the Economic and Social Council, with the aim of agreeing on a final solution, it was concluded at the meeting of companies from the wood processing sector.