The International Labour Organization's first comprehensive report on collective bargaining in Serbia's private sector reveals significant potential for growth and improvement. While only 13 percent of private companies currently have collective agreements, those that do experience clear benefits, including better communication, predictability, and workplace harmony.
What is collective bargaining?
Collective bargaining is the process through which employers and workers, typically represented by trade unions, negotiate and agree on employment terms and conditions, beyond minimum legal requirements. These agreements often cover wages, working hours, benefits, health and safety, and other workplace issues, aiming to ensure fair treatment, stability, and mutual trust between both sides.
Produced under the project "Strengthening Social Dialogue in the Republic of Serbia," funded by the European Union, the report underscores the importance of collective bargaining in fostering fair, stable, and productive labour relations. Despite its proven advantages, collective bargaining remains limited in scope and insufficiently documented in Serbia's private sector. Existing registries primarily cover public sector agreements, leaving a gap in understanding private sector practices.
To bridge this gap, the ILO commissioned an in-depth analysis of collective bargaining and agreements among private enterprises. The findings shed light on how companies perceive the process, the benefits they gain, and the challenges they face-providing a roadmap for strengthening social dialogue and creating a more enabling environment for collective bargaining.
Key insights include:
- Only 13% of private companies have collective agreements, covering about 245,000 workers.
- The highest incidence is in construction, transport, and manufacturing.
- Agreements mainly regulate legally defined issues, while wages, training, and skills development are less frequently addressed.
- Sectoral bargaining remains rare, with only 2% of companies expressing interest.
- Companies with agreements report tangible benefits: improved communication, predictability, stability, and fewer disputes.
- Companies without agreements are largely neutral or uncertain, suggesting that lack of awareness-not principled opposition-is the main barrier.
The report recommends strengthening the capacities of social partners, introducing employer incentives, and improving the institutional framework for collective bargaining. For businesses, collective agreements should be viewed as strategic tools that enhance stability, clarity, and competitiveness-not merely administrative obligations.
