New Economic and Social Council of the FBiH Constituted: Government Decree and Minimum Wage Still a Secret, New Meeting on Monday

(Patria) - The Economic and Social Council (ESV) of the Federation of Bosnia and Herzegovina finally held its constitutive session today.

Safudin Čengić, who was previously in the delegation of employers, was elected president. He replaced Edhem Biber, former president of the Union of Independent Trade Unions of BiH, as president of the ESV.

At the constitutive session, members of the delegations from the FBiH Employers' Association, trade unions, and the FBiH Government were also verified.

There was no discussion about the FBiH Government's decree on minimum income. It remains a secret for trade unions and employers.
It was announced that a new ESV session will be held on Monday morning, with this decree on the agenda, and some other concrete topics are expected.

- We held a constitutive session, verified the members of the delegations, and elected the president of the ESV. That was the only item on the agenda. A new session is scheduled for Monday morning. The decree and some other issues of interest to the social partners will be discussed - said Čengić, as reported by Faktor.

He also stated that the text of the decree will be delivered tomorrow.

When asked if that is too late given that January 1 is approaching and the decree should apply from then, Čengić replied that according to the explanation of the FBiH Government representatives, that is a deadline they can meet.

- It is important that from January 1 there will be higher wages and better income - added Čengić.

He also said that at the end of the meeting, a "unified position" was reached that the partners have many open issues, including the increase of daily allowances for official travel. There are some announcements that daily allowances should be increased from 25 KM to 40 KM.

Adnan Smailbegović, president of the FBiH Employers' Association, said that today they changed some members of the trade union delegation and elected a new president of the ESV, and on Monday the session will include the Government decree and the minimum wage.

- I hope we will have a more active period ahead of us - he added.

He also said that they still do not have the decree and need to receive it in the materials for the ESV session.

- The conclusions of the ESV do not obligate the Government, but it is important whether positions are harmonized. We will come with arguments - emphasized Smailbegović.

He commented on earlier statements that there would be mass layoffs if the decree is as leaked to the public.

- That is an informal, incomplete text. Based on what we gathered from the media and from the Prime Minister, there are collisions, which indicates that the material is not complete. We will wait - added Smailbegović.

He also commented on the issue of electricity price increases for the economy, stating that today the price is almost double compared to four years ago, but regarding new price increases, Elektroprivreda BiH assures that it will not be large, approximately 25 percent, except for a few companies that will be affected by an increase of about 60 percent.

After the ESV session, Mevludin Bektić, representative of 19 branch trade unions in the FBiH, also addressed the media. He said that at the beginning the situation was a bit tense due to disagreements among the unions, but they found a compromise and constituted the ESV.

He also emphasized that the FBiH Government's decree is currently unknown, and that they expect a difficult session on Monday with an unknown outcome, knowing the position of the employers.

- The trade union believes that the time has come to increase the price of labor. It leaked to the public that it will be 200 KM for the lowest wages and 150 KM for others - he added.

He also commented that it is indeed strange for the Government to hide the decree, but that he "understands" and "welcomes the Government's announcement."

- It is unusual, uncertainty is the worst thing, but there is good will and I believe we will find a compromise - said Bektić.

Since the appointment of the new FBiH Government with Prime Minister Nermin Nikšić, which was on April 28, 2023, not a single ESV session has been held.

Bektić pointed out that they had been requesting the constitution for a long time, but that "the Government did not show a desire for it to happen."

- Probably pressured by the current situation, the decree that must pass through the ESV, I think forced the Government to proceed with the constitution. The Government was also the initiator of today's session - added Bektić.

He also assessed that it is inevitable that the decree, if adopted by the Government, will lead to an increase in other wages as well.