Large gathering of businessmen in Zenica: We are paying for the Government's inaction, workers' wages will be 'eaten' by inflation, jobs are already being lost

(Patria) - The large hall of the Zenica hotel was too small to accommodate all businessmen from ZDK who argued against the FBiH Government's decision to increase the minimum net wage to 1000 KM without any tax relief or fiscal reform.

Dijana Babić from the ZDK Chamber of Commerce stated that they are in favor of the increase, but that a set of reform laws needs to be adopted beforehand, while craft representatives say that wages must be earned to be paid.

"Subsidies put economic entities at an uneven disadvantage," said Babić.

"No subsidies are an option, wages are earned and paid. It is increasingly difficult to support public administration. The Economic and Social Council should have received the materials for the session seven days prior; if that had been the case, we would have had enough time to present our arguments and point out the disastrous nature of this decision. It is also a product of the ignorance of whoever made it. The decision needs to be repealed and replaced with the set of fiscal laws that have been in preparation for ten years. Our proposal is that the decision should be returned for reconsideration," said Senaida Turkić from the Association of Employers of Zenica.

Businessmen from Žepče stated that the Government made this decision by surprise, writes Vijesti.ba.

"We do not deserve this. We will not be market-acceptable with our prices. Some companies already sent 30 workers to the employment bureau last week. Prices will increase, but we will not be competitive. We expect the Government to cancel the decision. We must change this and be prepared for more radical actions. This is the result of an intention, and it is an attack on us who will no longer be able to endure it," said their representative.

Nedžad Polić from the Association of Businessmen Jelah-Tešanj stated that the way the decision was made deserves a "believe it or not" section.

“This decision, in terms of consequences for everyone, not just the economy, is among the top three decisions with consequences that are difficult to measure in the last 25 years. I have not seen or heard of anyone from the Government calculating or estimating how many jobs are now at risk. Around 100,000 jobs are at risk in companies that will have no profit, and another 50,000 in those with minimal profit. In Tešanj, initial calculations suggest that 700-800 people will lose their jobs. The decision must be quickly repealed, as fiscal laws will not be adopted quickly. We must engage with the Government, and if not the Government, then the Parliament. The taxable portion should be kept at the current level," said Polić.

He stated that labor will now be cheaper in the Czech Republic or Slovakia, and investors and buyers will turn to them. He explained his opinion by first stating that the effect of inflation has not been calculated at all.

"Then price increases - people have to eat, dress... Whoever can will raise prices, and thus, those for whom we are supposedly fighting will pay the highest price. Because their wages will be 'eaten' mostly by the inflation that will occur."

Polić states that this decision will have unforeseeable consequences for the stability of budgets at all levels because the spiral that will occur, based on the average wage as a base, multiplied by a coefficient, then percentages, etc., will definitely push the average wage upwards, and then push minimum wages and so on indefinitely.

"And we will very quickly find ourselves in a situation where one budget will not be enough to pay the public sector alone," explained Polić.

Samir Šibonjić, Minister of Economy of ZDK, said that businessmen have witnessed statements from the FBiH Government that belittled them.

"We are paying for their inaction. Wages should be 1300 KM and more, while contributions remain at 440 KM. If the state could live on 440 KM last year, why can't it now. For the first time, our economy has reached a stable point, and attacks have immediately begun. None of this is accidental; there are centers of power that do not wish well to BiH, and there are people whom we pay, and they work for the interests of enemies," said Šibonjić, who is also a long-time businessman.