Keković: Unions will not give up on raising the coefficient to 100 euros

The Secretary General of the Union of Free Trade Unions of Montenegro, Srđa Keković, has declared that the unions will not give up on the demand to raise the calculation value of the coefficient from 90 to 100 euros, and expect it to be applied to October wages.

He said the General Collective Agreement has not been in force since April 30 and warned that the new wage model, known as the “Euro Model”, must be sustainable, must not lead to wage equalization, and must be accompanied by measures to curb price growth.

According to Keković, more than 100,000 employees depend directly on the rights regulated by the General Collective Agreement, including overtime pay, night, holiday and Sunday work premiums, paid leave and severance compensation.

He said the absence of this agreement has created room for some employers not to respect these rights.

Keković recalled that the two representative trade union centers and the Employers’ Union had reached a principled agreement back in December to raise the coefficient’s value from 90 to 100 euros, as well as to raise the coefficients for job complexity.

According to him, the Government is ready for this increase to apply starting with the October paycheck, which would bring a raise of about 10 to 12 percent for employees.

Speaking about the new wage model, Keković said the wage increase is a significant benefit, but warned its effect could fade if the prices of products and services rise at the same time.

He called for greater market control, limiting margins where necessary and stricter measures against price abuses.

Keković also expressed concern about the risk of “wage equalization”, as the new model foresees three minimum wages and changes to PIO Fund contributions.

However, he said the unions will not block the model if there is broader consensus on it, but will demand that after the minimum wage increase a new wage hierarchy be set, in line with qualifications, job complexity and responsibility, working conditions and experience.