The Independent Metalworkers’ Union of Serbia has warned that domestic factories are facing a reduction in production volumes due to declining activity and a drop in orders on the European automotive market, leading to a rise in the number of surplus workers.
According to a union statement, during 2025, a total of 12,640 workers were placed on paid leave with compensation amounting to 60 per cent of their wages for a period longer than the 45 working days prescribed by law, as reported by Beta.
It was pointed out that such practice in 2025 resulted in the dismissal of more than 6,000 workers, and that this negative trend is continuing this year.
“The situation in southern Serbia is particularly worrying. The company Yura in Leskovac has already announced a further reduction in production, with the intention of offering employees mutually agreed terminations of employment contracts. The company has also submitted a request to place around 300 workers on paid leave throughout the whole of 2026,” the statement reads.
The union warned that this case will not be isolated, as similar measures are being announced in other automotive industry companies in Serbia.
“Although the aforementioned measures are formally implemented in accordance with the applicable legislation of Serbia, the problem is that most employees in these factories have less than ten years of service, which means that their severance payments in the event of job loss are generally lower than 200,000 dinars, which is not sufficient to ensure basic financial security,” the union stated.
It is added that at a meeting held on 21 January this year with the Prime Minister of Serbia, Đuro Macut, the Metalworkers’ Union presented alarming data on the situation in automotive industry companies and pointed out that the situation has reached a critical point.
It was emphasised that an urgent, concrete and responsible response from the competent institutions, social partners and the state is necessary in order to halt further job losses and prevent further social degradation of workers employed in this sector.
The Independent Metalworkers’ Union of Serbia warned that any further delay in decision-making would mean direct responsibility for mass redundancies, particularly in underdeveloped parts of Serbia.
It called on the state to assume an active role in protecting workers, rather than being satisfied with the formal observance of the legal minimum.
The union expects urgent and systemic measures to be taken in order to provide genuine protection to workers affected by the crisis in the automotive industry, with clear deadlines and accountability for public office holders.
(Biznis.rs, 10.02.2026)
