Social Services, Transparency & Corruption, Low pay/minimum wages, Serbia, Croatia, Armenia

After lengthy negotiations a new public sector pay structure is in place that means significant increases to the coefficients used to calculate salaries for different occupations. Overall public sector workers are set to benefit on average by 13.5% in comparison to pay levels in 2023. Most unions are generally happy with the new system, including the HSSMS-MT nurses’ and health workers’ union which is one of 11 to sign the public sector collective agreement. However, other unions, including teaching unions, are unhappy with the outcome and argue that the new system fails to deliver appropriate

The HSSMS-MT healthcare union reports that following the third round of public sector pay negotiations, unions have accepted a pay increase of 5%, an improvement on the 3% offer made in the second round of bargaining. The unions have also secured the €300 Christmas bonus that they were looking for and an Easter bonus of €100, less than they wanted but a €30 improvement on the previous offer. There is also a commitment that, should the new pay system not be in place by 1 March 2024, then negotiations would open for a general pay increase.

After four rounds of negotiations it was agreed that two pay rises of 2% foreseen for this year would be postponed and paid in January 2021. The existing collective agreement provided for the pay increases along with increases in other allowances and the Christmas bonus and the government had initially wanted to freeze all pay and allowances. However, the postponement was agreed and other allowances will be increased while the Christmas bonus will be negotiated later in the year.

The minimum wage is to be increased by 11.1% taking it to around 30 000 Serbian dinars a month (EUR 255). The unions had called for an increase of 24.5% to bring it in line with trends in the cost of living while the employers were looking at only 6%-10%. A deal couldn't be reached in tripartite dialogue and so the government acted unilaterally, while also lowering certain taxes on wages and benefits that employers have to pay. The minister of finance also announced a planned 5% increase for all public companies from 1 January 2020.

On 12 May healthworkers in Sofia and Zagreb demonstrated over poor pay and working conditions and the crisis of understaffing. 5000 nurses, medical professionals, midwives and lab technicians joined a demonstration outside the Council of Ministers in Sofia demanding a 1500 Lev (EUR 765) minimum wage for health workers as a step towards stemming the flow of health workers out of the country. In Zagreb the call was also for improved pay and working conditions and in particular the respect for collective agreements in relation to overtime pay.

EPSU has written to the Prime Minister of Serbia and Minister of Public Administration raising concerns about a proposed new public sector pay system. The letter was sent in support of the Trade Union of Health and Social Care that has raised concerns about the system and planned classification of jobs. These have been developed without the involvement of the trade unions and involve negative changes to the current salary structure and job classification system.

An analysis by the European Trade Union Institute shows that wage convergence between East and West in Europe was steady up until 2008. However, since then the trend has either stalled or gone into reverse. Taking national average pay as a percentage of the average across the pre-2004 EU15, Croatia and Hungary show the largest increase in the pay gap since 2008. There were also increases in Slovenia, Czech Republic, Poland and Romania.Most progress was made in Bulgaria but from a very low level (11.8%) to 17.7%, still less than a fifth of average pay in the West.