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The Deputy Prime Minister, Besnik Bislimi, has warned that the minimum wage in Kosovo will increase to 250 euros. However, he stressed that the same should not be an obstacle in creating jobs for low-productivity workers.
In the presentation of the study, “General Perspective: Progressive Economic Agenda for Kosovo” by the Office of the German Friedrich Ebert Foundation (FES), Bislimi, said that the groups discussing the minimum wage should be experts and not interest groups. According to him, the unions can not have an interest in the minimum wage, because as he said, there is no logic for someone to join the union when he receives the minimum wage.
“I understand the concerns about the minimum wage. The model you have designed is almost 100% in line with government objectives. We also think that the minimum wage should be around the magic number, 250 euros. For me it is very important to understand, two elements. The minimum wage should not be a barrier to job creation for low-productivity workers. So we have to make sure that it does not cross a certain threshold, as part of the average salary. Labor market studies have shown that the pass rate is about 56 percent of the average wage. Once it gets higher than 56%, then it hurts people…
And the second element that is very important to me, is to make sure that the groups that discuss the minimum wage should be the ones that have the right to speak, it should not be the interest groups that would be interested in excluding this group. certain workers from the competition. And in this context, I do not understand the interest that unions may have in the minimum wage, because unions should represent people who are not paid the minimum wage. So from this point of view, the minimum wage winners are competitors for the unions. “There is no logic for someone to join a union if he or she receives the minimum wage,” he said.
Part of this roundtable was also the German Ambassador to Kosovo, Jorn Rohde, who asked the executive for progressive policies. He also spoke about the role of trade unions in society, where he said that their power in the modern economy has disappeared.
German unions have been almost against the minimum wage, but the parameters change because the power of unions has disappeared in the modern economy, as in the “gig” economy, the common economy, these people are not unionized, and this year, the new government elected The Social Democrats will raise the minimum wage in Germany by twenty percent because it has been shown that the power of unions is no longer so strong, as millions of people can compete or have a good income in the labor market. I think it should be seen, that every country has different situations, but I think it is important that the government needs revenue, without harming the economy. I wish that the Government in Kosovo has the political will to fulfill the progressive policy which contains elements set out in the study “, he stressed.
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