The International Labour Organization (ILO) has released its first comprehensive report on collective bargaining in Serbia’s private sector, highlighting significant opportunities for growth and improvement. Currently, only 13 percent of private companies in Serbia have collective agreements, yet those that do experience clear benefits, including improved communication, predictability, and workplace harmony.
Collective bargaining is the process by which employers and workers, typically represented by trade unions, negotiate employment terms beyond minimum legal requirements. These agreements often cover wages, working hours, benefits, health and safety, and other workplace issues. The ILO report, produced under the EU-funded project “Strengthening Social Dialogue in the Republic of Serbia,” emphasizes the role of collective bargaining in fostering fair, stable, and productive labour relations. Despite these advantages, collective bargaining in Serbia’s private sector remains limited, with most existing registries focused on public sector agreements.
To address this gap, the ILO conducted an in-depth analysis of collective bargaining practices among private enterprises, examining company perceptions, benefits, and challenges. The study found that collective agreements are most common in the construction, transport, and manufacturing sectors, covering approximately 245,000 workers. While agreements typically address legally defined issues, areas such as wages, training, and skills development are less frequently regulated, and sectoral bargaining remains rare.
Companies with collective agreements report tangible advantages, including enhanced communication, workplace stability, and fewer disputes. Conversely, companies without agreements tend to be neutral or uncertain, suggesting that lack of awareness, rather than opposition, is the main barrier to adoption. The report recommends strengthening the capacities of social partners, introducing incentives for employers, and improving the institutional framework to support collective bargaining. For businesses, collective agreements should be recognized as strategic tools that enhance stability, clarity, and competitiveness rather than merely administrative obligations.
