Budapest, 10 & 11 February 2010Budapest, 10 & 11 February 2010

CONFEDERATION OF AUTONOMOUS TRADE UNIONS OF SERBIA

„„PROMOTING THE RIGHTS OF AND REPRESENTING PROMOTING THE RIGHTS OF AND REPRESENTING WORKERS ENGAGED IN INFORMAL LABOUR WORKERS ENGAGED IN INFORMAL LABOUR

RELATIONS“RELATIONS“ ITUC/PERC – FNV ProjectITUC/PERC – FNV Project

REPORT ABOUT THE INFORMAL ECONOMY IN SERBIA

Sanja Paunovic, M.Sc

PERC PAN-EUROPEAN TRADE UNION COUNCIL

Key Indicators Key Indicators of the Labour Market in Serbia of the Labour Market in Serbia

for the periods 2002 - 2008for the periods 2002 - 2008

Employment(in 000)

Unemployment(in 000)

Labour forceparticipation

rate

Employment rate

Unemployment rate

20022002 3.000 460 56,1 48,6 13,3

20032003 2.919 500 55,7 47,6 14,6

20042004 2.931 665 66,4 53,4 19,5

20052005 2.574 719 65,2 51,0 21,8

20062006 2.517 692 63,6 49,8 21,6

20072007 2.526 584 63,4 51,5 18,8

20082008 2.646 457 62,6 53,3 14,7

Source: Statistical Office of the Republic of Serbia, Labour Force Survey

Labour Force Survey: Informal employment rate:Informal employment rate:

in October 2009 decreased by 2.4%, in comparison to October 2008in October 2009 decreased by 2.4%, in comparison to October 2008 in April 2009 decreased by 1.4%, in comparison to April 2008 in April 2009 decreased by 1.4%, in comparison to April 2008

Informal employment presentsInformal employment presents share of persons employed in non- share of persons employed in non-observed (black) sector of economy, out of total number of the employed. observed (black) sector of economy, out of total number of the employed. Non-observed economy covers employees in non-registered companies, Non-observed economy covers employees in non-registered companies, employees in registered company, but without any legal working contract employees in registered company, but without any legal working contract and without social and pension insurance, also including unpaid family and without social and pension insurance, also including unpaid family workers. workers.

INFORMAL ECONOMY IN SERBIA INFORMAL ECONOMY IN SERBIA 2008/20092008/2009

– – BASIC INFORMATIONBASIC INFORMATIONUnemployment, employment and informal employment rates in April and Unemployment, employment and informal employment rates in April and

October 2008 and 2009 – parallel review October 2008 and 2009 – parallel review

April 2008 October 2008 April 2009 October 2009

Unemployment rateUnemployment rate 13,3 14,0 15,6 16,6

Employment rateEmployment rate 44,7 44,2 41,6 40,8

Informal employment Informal employment raterate

23,6 23,0 22,2 20,6

Control of the labour contract Control of the labour contract in the Republic of Serbiain the Republic of Serbia

Informal employment control, by the Labour Informal employment control, by the Labour Inspectorate, in 2009.Inspectorate, in 2009. 35,733 control over Serbia 35,733 control over Serbia 319,081 workers were controlled319,081 workers were controlled 5072 workers without labour contracts  5072 workers without labour contracts   3649 workers were returned to the legal channels3649 workers were returned to the legal channels

(Labour Inspectorate made employers register the (Labour Inspectorate made employers register the workers)workers)

Labour Inspectorate written 2262 request for setting Labour Inspectorate written 2262 request for setting violation proceedings.violation proceedings.

Manny control’s were performed by Labour Manny control’s were performed by Labour Inspectorate and two representative Serbian Inspectorate and two representative Serbian trade unions.trade unions.

Formal and informal workers by Formal and informal workers by age group and sex, Serbia, 2006age group and sex, Serbia, 2006 Young workers in the informal economyYoung workers in the informal economy

Source:Source: ETF, ETF, Serbia:Serbia: School-to-work transition surveySchool-to-work transition survey, , ETF, TurinETF, Turin

22,8

62,6

14,6

59,3

40,6

8,0

55,0

37,0

51,348,7

0

10

20

30

40

50

60

70

15-19 20-24 25-29 Men Women

Informal workers Formal workers

Formal and informal workers by education Formal and informal workers by education

and economic sector, Serbia, 2006and economic sector, Serbia, 2006 Young workers in the informal economyYoung workers in the informal economy

8,7

76,9

14,4 14,6 15,4

70,0

0,3

60,7

39,1

1,4

17,4

81,2

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

Primaryeducation

Secondaryeducation

Highereducation

Agriculture Manufacturing Services

Informal workers Formal workers

Source:Source: ETF, ETF, Serbia:Serbia: School-to-work transition surveySchool-to-work transition survey, , ETF, TurinETF, Turin

Characteristics of informal and Characteristics of informal and

formal employmentformal employment   Informality

rateInformal

employmentFormal

employment

Total 43.3 100.0 100.0

Sex

Women 43.5 40.3 40.0

Men 43.1 59.7 60.0

Age group

15-24 63.2 10.3 4.6

25-54 41.0 75.9 83.2

55-64 46.3 13.8 12.2

Education

Primary or less 65.2 34.1 13.9

Secondary  43.2 59.1 59.3

Higher education 16.2 6.8 26.8

 Informality

rate

Informal employme

nt

Formal employ

ment

Region

Belgrade 31.8 15.6 25.6

Central Serbia  47.1 54.8 47.0

Vojvodina 45.2 29.6 27.4

Location

Other 56.1 55.6 33.3

Urban (city) 33.7 44.4 66.7

Employment status

Self-employed 92.2 37.9 2.5

Employees 26.6 46.4 97.5

Contributing family workers 100.0 15.7 …

Economic sector

Agriculture 87.0 38.1 4.3

Manufacturing 25.8 17.4 38.0

Services 37.1 44.6 57.7

Job experience (yrs)

… 18.3 19.0

ITUC/PERC SEE Office SarajevoITUC/PERC SEE Office Sarajevo CONFEDERATION OF AUTONOMOUSCONFEDERATION OF AUTONOMOUS TRADE UNIONS OF TRADE UNIONS OF SSEERBIRBIAA

TUCTUC “Nezavisnost” “Nezavisnost” in cooperation within cooperation with::

CONFEDERATION OF AUTONOMOUSCONFEDERATION OF AUTONOMOUS TRADE UNIONSTRADE UNIONS OF NIOF NIŠŠ and and SWISS LABOR ASSISTANCESWISS LABOR ASSISTANCE

Round Table Round Table REPRESENTING RIGHTS OF WORKERS, ESPECIALLY WOMEN, REPRESENTING RIGHTS OF WORKERS, ESPECIALLY WOMEN,

ENGAGED IN INFORMAL ECONOMYENGAGED IN INFORMAL ECONOMY Serbia, Serbia, NiNiš, š, December 7, 2009 December 7, 2009

Round Table Round Table REPRESENTING RIGHTS OF WORKERS, ESPECIALLY REPRESENTING RIGHTS OF WORKERS, ESPECIALLY

WOMEN, ENGAGED IN INFORMAL ECONOMYWOMEN, ENGAGED IN INFORMAL ECONOMY Serbia, Kragujevac, Serbia, Kragujevac, December December 2323, 2009, 2009

ITUC/PERC SEE Office SarajevoITUC/PERC SEE Office Sarajevo CONFEDERATION OF AUTONOMOUSCONFEDERATION OF AUTONOMOUS TRADE UNIONS OF TRADE UNIONS OF SSEERBIRBIAA

TUCTUC “Nezavisnost” “Nezavisnost” in cooperation within cooperation with::

CONFEDERATION OF AUTONOMOUSCONFEDERATION OF AUTONOMOUS TRADE UNIONSTRADE UNIONS OF OF KRAGUJEVAC KRAGUJEVAC and and SWISS LABOR ASSISTANCESWISS LABOR ASSISTANCE

THE ROUND TABLESTHE ROUND TABLES IN REPUBLIC OF SERBIA IN REPUBLIC OF SERBIA VRANJE, NOVEMBER 20, 2008VRANJE, NOVEMBER 20, 2008

BELGRADE, MAY 28, 2009BELGRADE, MAY 28, 2009NIS, DECEMBER 7, 2009 NIS, DECEMBER 7, 2009

KRAGUJEVAC, DECEMBER 23, 2009KRAGUJEVAC, DECEMBER 23, 2009 ParticipantsParticipants - The round tables were attended by representatives: - The round tables were attended by representatives:

Local trade unions (the municipal and county)Local trade unions (the municipal and county) Branch TUs (Agriculture, Metal, Textile, Construction, Catering, etc.) Branch TUs (Agriculture, Metal, Textile, Construction, Catering, etc.) National Employment ServiceNational Employment Service The Labour InspectorateThe Labour Inspectorate Social Economic CouncilSocial Economic Council Serbian Chamber of CommerceSerbian Chamber of Commerce Local medium (TV, radio and newspapers). Local medium (TV, radio and newspapers).

Key topicsKey topics - Topics that were discussed at the Round Tables were: Topics that were discussed at the Round Tables were: TUs principles concerning the Informal Economy;TUs principles concerning the Informal Economy; Status of Women engaged in Informal Economy;Status of Women engaged in Informal Economy; Identify and discussed informal economy challenges affecting Identify and discussed informal economy challenges affecting

unemployed; unemployed; Social dialog as a means to address the IE challenge;Social dialog as a means to address the IE challenge; Policy if government institutions (participants) to reduce IEPolicy if government institutions (participants) to reduce IE The successful example of the SSS Council – Smederevo on its efforts The successful example of the SSS Council – Smederevo on its efforts

in the Informal Economy prevention as an eventual model for the other in the Informal Economy prevention as an eventual model for the other TU colleagues within the Republic of Serbia in their further joint efforts TU colleagues within the Republic of Serbia in their further joint efforts in the Informal Economy prevention. in the Informal Economy prevention.

Successes of unions dealing with Successes of unions dealing with informal economyinformal economy

The role of trade unions in Serbia was:The role of trade unions in Serbia was: Educational and informative (for Educational and informative (for all trade union all trade union

members and persons working in shadow economymembers and persons working in shadow economy)) Affirmative (for formal employment)Affirmative (for formal employment) Interactive – survey, questionnaireInteractive – survey, questionnaire Upgrade social dialog - Upgrade social dialog - local trade unionslocal trade unions, government , government

institution (institution (National Employment ServiceNational Employment Service and and Labour Labour InspectorateInspectorate), employers, ), employers, Chamber of CommerceChamber of Commerce

PPromote cooperation with the Labour Inspectorate, Tax romote cooperation with the Labour Inspectorate, Tax Administration, Public Prosecutor’s Office and other Administration, Public Prosecutor’s Office and other institutions in charge of controlling theinstitutions in charge of controlling the work in the work in the informal economyinformal economy

Protection of workersProtection of workers Decrease of informal economy Decrease of informal economy Induction of informal economy to the legal frameworkInduction of informal economy to the legal framework Means for work was: Means for work was: flyers, leafletsflyers, leaflets, , brochurebrochure, ..., ...

CONCLUSIONSCONCLUSIONSFROM THE ROUND TABLESFROM THE ROUND TABLES

„Promotion of rights and representation of workers in informal economy“„Promotion of rights and representation of workers in informal economy“

For a successful action in the field of For a successful action in the field of combating informal economy, it is combating informal economy, it is necessary to necessary to fully and thoroughly inform fully and thoroughly inform and educateand educate all members of trade unions all members of trade unions as well as persons engaged in the as well as persons engaged in the informal economy informal economy

It is necessary to do the It is necessary to do the networking of networking of trade unions in the region and encourage trade unions in the region and encourage exchange and cooperation of expertsexchange and cooperation of experts

run joint initiativesrun joint initiatives towards the ITUC, ILO towards the ITUC, ILO and other international organizations and and other international organizations and apply together for obtaining the apply together for obtaining the international projects that aim to decrease international projects that aim to decrease the volume of informal economy the volume of informal economy

It is necessary to It is necessary to use the positive use the positive experiences of some local communitiesexperiences of some local communities that went “further” in this field (in Serbia -that went “further” in this field (in Serbia -Smederevo)Smederevo)

Special attention should be paid to Special attention should be paid to strengthening and improving strengthening and improving cooperation cooperation with the mediawith the media

CONCLUSIONS (2)CONCLUSIONS (2) FROM THE ROUND TABLESFROM THE ROUND TABLES

„Promotion of rights and representation of workers in informal economy“„Promotion of rights and representation of workers in informal economy“