USSCG: It is unacceptable to plan the reform of the pension system without prior social consensus

The Union of Free Trade Unions (USSCG) said that it is worrisome and extremely unacceptable to know that the Ministry of Labor and Social Welfare, without the direct involvement of social partners, is preparing a "set of laws" and is working on the reform of the pension system, which, among other things, will include "correction of contributions". at the expense of the employer and reshaping the role of the Pension and Disability Insurance Fund.

They reacted to the interview of Finance Minister Novica Vuković for Voice of America.

They say that labor market reforms, pension and social policy reforms cannot and must not be the result of unilateral decisions by the Government and relevant ministries. The Constitution of Montenegro, the Law on Social Council, the Law on Labor and collective agreements, points out USSCG, oblige the Government to engage in social dialogue and negotiation with social partners on all matters of importance for the implementation and improvement of economic and social policy.

"The fact that the reform of one of the most important systems, such as the pension system, is being prepared, and that a fiscal strategy is being prepared which, as the Minister of Finance emphasized, will be presented exclusively to parliamentarians, but not to social partners, calls for the vigilance of not only social partners but the entire of the civil sector in order to ensure the transparency of the planned processes and ensure that they do not have any negative consequences for the citizens of Montenegro," the response states.

They say that from the interview of the Minister of Finance, it becomes clear that the Government is planning to "correct" the contributions for pension and disability insurance at the expense of the employer, which, according to the current regulations in Montenegro, does not imply an increase in the net salary of employees by automation, as was the case with the "Europe Now" program 1".

"On the other hand, such 'corrections' undoubtedly lead to employees being paid gross wages from which they themselves will issue funds for pension insurance, at their own discretion. To plan such a reform without prior social consensus, to embark on a path from which there is no return later, it is not only unacceptable, but also extremely worrying. USSCG calls on the Government and line ministries to include social partners and the general public in a timely manner in the creation of public policies from the world of work, social and economic policy," concludes USSCG.