Serbian Railways to shed 6,000 employees by 2021

Serbian Railways to shed 6,000 employees by 2021
By bne IntelliNews March 10, 2016

Some 6,000 workers will have to leave Serbia’s state railway company Zeleznice Srbije within next five years, and around 2,000 in 2016 alone, as part of a comprehensive reform process at the company, Serbia’s deputy prime minister and minister of construction, transport and infrastructure Zorana Mihajlovic told the Kopaonik Business Forum on March 9.

The restructuring of Zeleznice Srbije is required under the precautionary €1.2bn three-year stand-by arrangement (SBA) with the International Monetary Fund (IMF) approved in February 2015. The IMF has criticised Belgrade’s slow progress in restructuring Zeleznice Srbije as well as Electric Power Company of Serbia (EPS) and gas company Srbijagas. This is mainly due to the government’s fear of losing support if it accelerates the process of downsizing their workforces. Prime minister Aleksandar Vucic is expected to have a stronger mandate to reform the companies after early elections on April 24.

Mihajlovic said that the reform of Zeleznice Srbije is one of the government’s priorities which is why the company has been reconstructed into four subsidiaries: Srbija kargo, Srbija voz, Infrastruktura Zeleznice Srbije and Zelenznice Srbije a.d., with the aim of making the Serbian rail system capable and functional under new market conditions.

“Downsizing of the workforce is ahead for Zeleznice Srbije, and all four its subsidiaries have adopted their workforce systematisation created based on their real needs,” Mihajlovic said.

She added that the reforms go ahead in cooperation with the World Bank (WB), but that reforms are not something that can be completed overnight.

“Reforms go in line with investments and the current value of investment projects in railway infrastructure is around €1.5bn,” she said, adding that in 2015 120km of railways were modernised.

At end-2014, Zeleznice Srbije had slightly over 17,000 workers.

 

Related Articles

Chinese investors interested in ex-military airport in Serbia’s Uzice

Companies from China are interested in investing in Ponikve Airport in the western Serbian town of Uzice, according to the local authorities, which have proposed an acquisition or a public-private ... more

Serbia to raise public sector wages and pensions in 2018

Pensions and wages of workers in Serbia’s public sector will be increased by 5%-20% as of 2018, Prime Minister Ana Brnabic announced on October 14 when she marked the first 100 days ... more

Serbia’s central bank cuts key policy rate to 3.5%

The National Bank of Serbia (NBS) executive board decided to cut the key policy rate to 3.5% on October 9, folowing cut to 3.75% on September 7, after keeping it stable at 4% for the ... more

Dismiss