Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Montenegro.
Public authorities involved in regulating working life
In Montenegro, the Ministry of Labour and Social Affairs is the public authority responsible for labour activities and enacting regulations on labour issues. All collective agreements must be registered to the Ministry.
The Social Council is a tripartite body that establishes and develops social dialogue on the economic and social status of employees and employers, and on working and living conditions. The Act on the Social Council regulates the work carried out by the council. The council’s work focuses on implementing and improving economic and social policies. This work includes: developing and improving collective bargaining, influencing economic policy and its impact on social development, and ensuring stability of employment policy, wages and prices. The council’s work also extends to: competition and productivity; privatisation and other issues of structural adjustment; protection of work space and environment, education and professional training; health and social protection and security; and demographic trends.
An employee has the right to seek protection of rights with the competent labour inspector, independently of the procedure of protection of rights initiated with the employer or in front of the competent court or arbitration.
At national level, public authorities in Montenegro are relatively active in industrial relations mainly due to their involvement in the Social Council. The president of the Social Council (also Minister of Labour and Social Affairs), along with employers and trade unions sign collective agreements. Furthermore, with close to 15% of all employees working in various levels of public administration and an additional 27% in state-run enterprises and services, the government is the largest employer in the country. Since the new Labour Code came into force in 2008, about half of all branch collective agreements were in the public sector.
Public authorities can often appear as the primary target of union demands as well as in private sector disputes. This is especially the case with the privatisation of companies, where the government is considered to have residual responsibilities to ensure that the process of privatisation is achieved. Workers regularly appeal to public authorities to uphold the terms of the privatisation agreement, enforce certain regulations or provide financial assistance to companies in difficulty.
Trade unions
About trade union representation
The Constitution of the Republic of Montenegro guarantees the right to form a trade union. This right is upheld by the Law on Labour and the Law on Representatives of Trade Unions.
Trade unions, with representation determined in accordance with the Law, are entitled to:
- collective bargaining and the finalisation of collective agreements at the appropriate level
- participation in the settlement of collective labour disputes
- participation in the work by the Social Council, and other tripartite and multipartite bodies at the appropriate level
- other rights, as defined by specific laws for authorised trade union organisations
The Law on Representation of Trade Unions stipulates that two trade unions are representative at national level: the Confederation of Trade Unions of Montenegro (SSCG) and the Union of Free Trade Unions of Montenegro (USSCG). Whilst USSCG has established new branch unions and attracted new members, the union has lost over 2,000 members – mainly from the metal and telecommunication sectors – due to redundancies and company restructuring. USSCG has around 22,000 members and approximately 18,000 paying affiliation fees. However, no precise data on trade union density is available. SSCG also recorded a similar loss of members, but there are no precise figures.
Since 2008, SSCG and USSCG have been the two national trade union confederations in Montenegro. The older confederation, SSCG, inherited its structure and membership from the socialist era and represents approximately 47,000 members. USSCG was established in 2008, following an internal disagreement within SSCG (over union policy and internal management) and, by 2012, had grown to 22,000 members.
It is uncertain how much these figures accurately represent trade union density in the country. Following the Law on Trade Union Representativeness in 2010, USSCG and SSCG were asked to submit proof of membership of at least 16,300 employees – the equivalent of 10% of all employees in the Montenegrin economy. USSCG submitted approximately 17,000 signatures and SSCG around 27,000, resulting in a union density of 26% of all employees compared to union reported figures of 41%. As the figures on union density exclude independent trade unions, common in large enterprises, the former percentage of 26% is a conservative estimate.
Due to the uncertainty surrounding membership figures, it is difficult to establish with certainty the trends in trade union density. USSCG has increased in popularity, following its role in the 2012 social protests, and has continued to attract new members. In December 2013, the union succeeded in forming a new employee federation in the media sector.
However, SSCG has suffered internal turmoil in recent years with accusations against the former secretary general of corruption and mismanagement of the union. Throughout 2011 and 2012, SSCG’s administration organised a series of protests against senior management as well as filing criminal charges against them. In 2013, a number of member unions threatened to exit SSCG if there was no change in leadership following the elections, scheduled for November that year. Following this, the 15th congress of SSCG elected a new secretary general – formerly the head of the police union – who has promised extensive reforms to the structure of the union.
Main trade union confederations and federations
Long name | Abbreviation | Members | Year | Involved in collective bargaining |
Confederation of Trade Unions of Montenegro (Savez sindikata Crne Gore) | SSCG | 46,878 | 2017 | Yes |
Union of Free Trade Unions of Montenegro (Unija slobodnih sindikata Crne Gore) | USSCG | 22,000 | 2017 | Yes |
Employers’ organisations
About employers’ representation
The Montenegrin Employers Federation (UPCG) is the only organisation representing employers in Montenegro. Its members account for 65% of the workforce and for over 80% of GDP. In 2005, UPCG became the representative organisation for private sector employers, replacing the Chamber of Commerce as the key player in social dialogue for employers. Since then, the association has been an active participant in social dialogue at sectoral and national levels. UPCG is a member of the International Organisation of Employers (IOE) and Business Europe.
Main employers’ organisations and confederations
Long name | Abbreviation | Members | Year | Involved in collective bargaining |
The Montenegrin Employers Federation | UPCG | N/A | 2017 | Yes |
Tripartite and bipartite bodies and concertation
At national level, social dialogue in Montenegro is regulated by legislation such as the Law on Social Council, the Labour Law and the Law on Trade Union Representation. Despite continuous work to improve bipartite social dialogue, it has still not been developed to a satisfactory level.
The Social Council is the main tripartite body at national level, consisting of 33 members – 11 representing the government, 11 representing the UPCG and 11 from the two representative trade unions. The Council is chaired by the Minister of Labour and Social Affairs and meets every two to three months.
Although the Social Council is an advisory body, in the past few years it has become increasingly active in helping to initiate and draft pieces of legislation related to work. The work of the Council is varied and can involve coordinating collective bargaining at national level; advising on appointments in labour-related institutions (such as the National Employment Service and the Agency for Peaceful Resolution of Labour Disputes); proposing changes to the minimum wage; and advising the government on a range of social and economic policies.
The Social Council supports the bargaining process for any changes and amendments that are made to the General Collective Agreement. The president of the council convenes it. The council has a legal right to issue recommendations and provide these to the respective ministry. When required, the council advises the government, social partners and other institutions. By law, the government is obligated to respond on the outcome of the council’s recommendations within 30 days in writing. Currently the recommendations made by the council are unpublished, but there are plans to publish them in the future. Council members receive monthly compensation.
The council can also solicit studies and opinions from external experts, but it lacks its own administrative base and is thus dependent on the Ministry of Labour and Social Welfare for basic organisational resources.
Main tripartite and bipartite bodies
Name | Type | Level | Issues covered |
Social Council | tripartite | national | -Development and promotion of collective bargaining -Impacts of economic policy and measure on social development and stability of employment policy, wages and prices, competition and productivity, privatization and other issues of structural adaptation -Environment protection -Education and professional training -Health, safety and social protection issues -Demographic issues -Other issues important to improving economic and social policy |