Government adopts contentious laws, "reforms start"

Government adopts contentious laws, "reforms start"

Trade unions late last week withdrew from negotiations over the controversial laws, and announced protests.

"The first two reform laws adopted by the government are the laws which investors will support, which will provide jobs for young people and which will protect all rights of good workers," Vučić told a press conference after the government meeting.

"The government adopted the draft laws on labor and on pension and disability insurance today, despite all the pressure and protests. Serbia has finally and actually started the process of economic reform,” said Vučić, adding that almost no major reform laws were passed over the past 13 years

Noting that Serbia was brought to ruin by reckless politicians and their reckless decisions, he specified that in the period from 2007 to the end of 2012 pensions were raised by 72 percent, including a 22 percent increase in the election year of 2008, without any economic justification.

"If it had not been for such irresponsible individuals, the public debt would now stand at 45 percent and be lower by one-third than it is today,” stressed Vučić.

Such irresponsible policy is what brought Serbia in a situation where it is forced to take drastic measures, said the prime minister, adding that the labor law will be passed by Thursday, exactly as promised.

The inadequate labor law of 2005 and “the scandalous policy of those who previously ruled the country” led to a drop in employment by 354,000, for the most part in the private sector which contributes most to the state budget, Vučić said.

He added that he agrees with the measures suggested by Finance Minister Krstić - who after the drafts were adopted, resigned, as well as the IMF and the WB, "but that at this moment he is unable to implement them, particularly to such an extent that Krstić proposed."

"In any case, we will pass the laws on privatization and on bankruptcy before the end of the first 100 days in office, which will be the greatest reform project in the modern history of Serbia,” said Vučić, adding that this achievement will be welcomed by the whole world and those who understand what reforms mean.

Opposition leader supports protests

Opposition Democratic Party (DS) leader Bojan Pajtić said Sunday that the proposed law on labor is neither a reform, nor a fair law, and called on DS members and supporters to join the upcoming union protests.

Amendments to the labor law will not facilitate reforms as they will not increase, but rather decrease employment, placing the burden of the crisis and government incompetence on workers, Pajtić told a press conference.

“The law will allow wage cuts of more than 20 percent affecting all employees, in both the public and the private sector, for the first time if will be possible to cut even the minimum wage, benefits based on years of service will be effectively scrapped, a wide range of causes for dismissal will be provided, including the possibility of dismissing pregnant women, new mothers and persons with disabilities,” Pajtić claims.

The turnover will plummet, which will lead to layoffs and GDP decline, sending the economy spiraling down into deeper crisis, he added.

DS leader claims that Prime Minister Aleksandar Vučić and the government were only deceiving the public about wanting to reach an agreement with trade unions, and added that the citizens were also deceived in January, when they were led to believe that unemployment rate was cut from about 25 to 20 percent, when it actually went up to 28 percent.

Pajtić said that DS will table amendments to the law on labor after consulting with trade unions.

Asked to comment on Lazar Krstić's resigning as finance minister on Saturday, Pajtić said it is “a farce”.

The idea behind the resignation is to show that the labor law could have been worse, and an attempt to present it as the lesser of two evils, Pajtić explained.