Serbia is reportedly looking to bring in foreign workers from Nepal and Morocco to support operations at the Stellantis car factory in Kragujevac, amid labour shortages and limited local interest in factory jobs, according to officials and union representatives.

City authorities last week claimed that the Fiat plant, owned by global auto giant Stellantis, will begin employing workers from abroad to help staff a third production shift scheduled to launch in October. The factory, which began producing electric vehicles in July 2024, is currently operating with around 2,800 workers but needs 800 more.

The move comes as Serbia’s new foreign labour law — including a streamlined, digitalised combined residence and work permit system introduced in 2024 — has made it easier for foreign nationals to access the local job market. The reform is already contributing to a visible shift in the workforce across major Serbian cities, including the capital Belgrade, where South Asian workers have started filling roles in public transport and services.

A source at the Kragujevac plant told Beta news agency last week that around 100 workers from Stellantis’ facility in Morocco will be temporarily relocated to Serbia for training and support, with the aim of launching production of the “Grande Panda” model in Morocco. The model is currently manufactured in both hybrid and fully electric versions at the Kragujevac site.

However, conflicting statements have emerged regarding the scale of foreign hiring. City councillor for the economy, Radomir Eric, said the factory would employ 800 workers from Nepal and Morocco due to a lack of local applicants — despite Kragujevac having approximately 9,000 unemployed residents, Danas reported.

Long-time union leader Jugoslav Ristic said the reliance on foreign workers reflects the broader challenge of uncompetitive wages. “It’s clear people in Kragujevac are not interested in salaries slightly above RSD70,000 (€600), which are insufficient for a decent life,” he said. Ristic noted that domestic workers can earn around RSD90,000 by working overtime and weekends.

Union representatives argue that the real issue is not the availability of labour, but rather the conditions on offer. Goran Milic of the Independent Union’s regional board in Central Serbia said many local hires quit after just a few days on the job.

The factory, which shipped its first batch of electric Fiat Pandas to Western Europe in February 2025, is part of a €190mn joint investment agreement signed between Stellantis and the Serbian government in 2022.

As Serbia prepares to host Expo 2027, thousands of additional foreign workers are expected to enter the country, raising questions about long-term social integration and rights protections.

Salih Saitovic, president of the Democratic Union of Roma (DUR), criticised the decision to recruit workers from abroad instead of investing in education and employment programmes for the domestic Roma population. According to the latest census, over 147,000 Roma live in Serbia, many of whom face systemic barriers to employment.