UMHCG: We are concerned that the proposed salary increase model will not produce adequate effects

The Association of Disabled Youth of Montenegro (UMHCG) announced today that it supports the announced increase in the minimum and average salary and the gradual increase in all pensions, with concerns that the proposed salary increase model will not produce adequate effects and impact on improving the standard of living of citizens.

"At the same time, the announced measures, in the absence of other necessary measures, may also cause additional loss of labor force, the inability to retain the best staff and the unsustainability of all necessary jobs for some employers. We emphasized the above assessment during the Public Hearing on the Draft Fiscal Strategy of Montenegro for the period 2024 - 2027 through oral and then written comments, remarks and suggestions that we submitted to the Ministry of Finance," the UMHCG press release points out.

From that non-governmental organization (NGO), they added that wages and pensions, that is, all regular incomes of citizens should grow gradually, and follow the cost of living, which is influenced by numerous factors, both at the global level and those in the state of Montenegro.

"The above means that material benefits from the field of social and child protection, as well as all other amounts of monetary benefits from the state and local budgets, should follow these increases. Although we support the increase of the minimum and average wages, we believe that it is not acceptable to abolish contributions for pension insurance, and to introduce two minimum wages, but one unique one, and we remind you that in the pre-election campaign, a minimum wage of 700 euros was pushed," said the UMHCG.

According to them, they consider the introduction of two minimum wages, in relation to the vocational education defined by the act on the systematization of jobs: one for secondary and lower education, and the other for higher vocational education, unacceptable for the reason that it will lead to a social gap and deepen poverty and social the exclusion of those with secondary and lower vocational education, but also unfairness towards some categories of those with higher vocational education.

"It should be borne in mind that the state is largely responsible for the education of the people who live in it, so our state, before and now, is also responsible for the conditions of education, as well as for the overall conditions of life. Furthermore, we believe that it is not acceptable that the minimum and average salary are approaching to such an extent, as well as that the average salary is approaching with other salaries, which will be the case for a large number of employees if the Fiscal Strategy document and the accompanying laws are adopted in the way planned, i.e. In this sense, we point out that it was necessary to look at the potential risks of what was announced and how it will affect all categories of employees and employers, i.e. employees and employers from different sectors, including especially the economy and the NGO sector. ", they said from UMHCG.

They say that in the case of the adoption of the proposed text of the Fiscal Strategy, they believe that there will be a negative impact on the non-governmental sector, and that part which is also an employer.

"In that sense, if this government's goal is really to improve cooperation with NGOs and create a more adequate environment for NGO activities, as well as the sustainability of these organizations - especially those that, due to their role and field of activity, are significant and necessary for the state itself - then it should plan and adopt measures that will achieve this. Otherwise, in the case of adopting the planned, without looking at the negative impacts and thus preventing them from happening, we believe that a number of NGOs that have employed staff will "suffocate", and smaller organizations will shut down. , the reduction of staff and thus the weakening of the strength and influence of NGOs, except for those that may be competitive with the state and the economy. increase earnings, taking into account the way of doing business and project financing," the announcement reads.

The UMHCG stated that the Government should not show its attitude towards NGOs by forming a ministry for cooperation with NGOs, because this is exclusively done/driven by political interests, but should be done with measures and policies that will enable NGOs to work and function smoothly, and above all sustainability to those NGOs that find it increasingly difficult to survive.

"Considering that UMHCG is also a non-governmental organization, we can say that we are a large employer, but we are afraid that we will not be able to keep the staff if the trends that have existed in the last few years continue, even those related to the way of increasing salaries and the sectors in which they increase, without an even, just, fair and equal approach to all. and the requirements of certain positions are not even comparable, let alone similar. As an NGO, we are financed exclusively by project. Therefore, if we want to keep the entire staff, we are not able to increase salaries in a fair way because that would increase our costs. on a monthly basis and for a few thousand euros. No donor will provide us with that, so we are in an unfair position compared to the administration whose earnings are financed by all of us, the citizens of Montenegro," stated the UMHCG.

Also, they believe that it is not acceptable to abolish pension insurance through a new salary calculation and that another model of salary increase and retention of pension insurance should be found.

"As an organization that represents the rights and interests of people with disabilities, and as an organization that is also an employer of people with disabilities, we point out that the abolition of mandatory pension insurance would lead to complete social insecurity for currently employed and future employed people with disabilities, but we also believe for those already retired. Namely, the insurance companies with which private pension insurance can be contracted have discriminatory practices according to which people with disabilities as a group are considered risky and many people with disabilities cannot conclude this type of contract because of this , forced many people with disabilities to seek accommodation in residential institutions and, in the absence of income and living conditions, to be completely dependent on the system and care of the state. This measure would increase the institutionalization of people with disabilities, which is already increasing due to lack of funds. conditions and services for living in the community," stated the UMHCG.

They say that the equalization of the minimum wage and the minimum pension in the past period has led to early retirement (disability pension) of people with disabilities, so they fear that the same trend will continue now if the proposed wage/pension plan is adopted.

"In this sense, we repeat that regardless of the justification of the increase in minimum wages, there must be a greater range between certain wage categories, as well as between wages and pensions, so that these measures do not have a negative impact on some employers and employees. Although we previously told the Ministry of Labor and of social welfare submitted their remarks and suggestions on the Labor Law in order to improve the guarantees for persons with disabilities, they were mostly rejected without any specific explanation of this law adopted yesterday at the telephonic session of the Government, we saw that none of the suggestions were taken into account", said the UMHCG.

They state that the text of the Fiscal Strategy Draft did not answer in any way how, that is, what policies and measures the state plans to use to reduce the number of unemployed persons with disabilities (currently over 9,5 thousand) and how it plans to reduce the unemployability of this category of citizens, especially those who are more than three years on the unemployment register, and some of them for more than ten years.

"In this sense, we proposed that the final version of the document include an analysis of the current situation and planned measures for the period 2024-2027, which will not be limited to grant schemes for the employment of persons with disabilities. The draft strategy, as well as some other Government documents, introduces the term social benefits, although it is not recognized as such in the legal system of Montenegro. That is why we pointed out that this document should be harmonized with the systemic laws, and therefore the statements about directing 'social benefits where they are needed' should be deleted because they are not it is about the charity of the state, about its humanity and goodwill, but about the rights of the citizens, and therefore the obligation of the state. In this context, we support the growth of the amount for material benefits, development, increase and improvement of social and child protection services through more adequate guarantees, implementation in practice, but also an increase in the budget in this area. This implies adequate planning of the increase in the prices of social and child care services in accordance with the increase in other prices, including the price of labor, i.e. the increase in wages," said the UMHCG.

They say that improving the lives of citizens (which is also the strategic goal of the economic policy of Montenegro) and increasing the standard of living is not achieved only and exclusively by increasing wages and pensions, but by numerous other measures and activities, including the improvement of material benefits, their more adequate prescribing, guaranteeing missing rights, and social and child protection services and their almost complete reform.

"Accordingly, no minor allocations, reduction of expenditure and consumption, i.e. the budget to the detriment of social protection is acceptable, on the contrary; this area must respond more adequately to contemporary challenges and living conditions of citizens, especially vulnerable categories and categories at risk. All the above indicates that the Government and its institutions during the preparation of the aforementioned policies and measures did not assess their impact on persons with disabilities, which is an obligation undertaken by Montenegro with the ratification of the UN Convention on the Rights of Persons with Disabilities, and which is persistently violated and ignored in the long term as part of the legal system of the greatest importance and strength," concludes the UMHCG announcement.