Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Employment Policy Convention, 1964 (No. 122) - Montenegro (Ratification: 2006)

The Committee notes that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments.

Repetition

Employment trends and impact of COVID-19 pandemic. The Committee notes that, according to the Decent Work Country Program for the period 2019–21 adopted in 2018, before the onset of the COVID-19 pandemic, unemployment had declined from 19 per cent in 2007 to 14.2 per cent in the third quarter of 2018. Furthermore, the employment rate had steadily grown from 47 per cent in 2006 to 58.2 per cent in the third quarter of 2018. However, the share of long-term unemployment remained very high (80 per cent of all unemployed), there were also elevated levels of youth unemployment and inactivity, high informality, and continued emigration (emigrants represent 20 per cent of the resident population). The Committee also notes that, according to the 2020 European Commission Assessment of the Economic Reform Programme (ERP) of Montenegro for the period 2020–22, geographical disparities are large and disproportionately affect the northern region (the unemployment rate in the northern regions is up to nine times higher than in the coastal region). At the same time, the coastal region relies heavily on tourism.

The Committee further notes from the ILO Rapid Assessment of the Employment Impact of the COVID-19 pandemic on Montenegro and Policy Responses, that already in April 2020 registered unemployment increased by 6.2 per cent compared with the same month in 2019 and jumped by over 4,500 workers (57 per cent of them women) compared with March 2020. In this context, the Committee notes the series of policy measures adopted by the Government to prevent and mitigate the negative economic and social consequences of the crisis, such as measures to support enterprises and business continuity (including deferred payment of customs debt, and the provision of bank guarantees to ensure liquidity and loans, as well as credit lines for medium and small enterprises (SMEs)). The Committee also notes that employment retention measures were announced and undertaken relatively early during the lockdown (such as subsidies of 70 per cent of the gross minimum wage for employees on paid leave and/or in quarantine or isolation). In addition, access to unemployment benefits, social protection and paid leave were extended. The Committee further notes that, according to the ILO Rapid Assessment, social partners’ proposals are integrated in the measures taken or envisaged. In this regard, the Committee recalls the comprehensive guidance provided by international labour standards and draws the Government’s attention to the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee requests the Government to provide detailed updated information on the impact of the COVID-19 pandemic on the labour market, including statistical information, disaggregated by age and sex, on the size and distribution of the labour force, rates of employment, unemployment and under employment in all parts of the country. The Committee also requests the Government to indicate the manner in which the pandemic and the measures adopted to mitigate its effects have affected the implementation of the objectives of the Convention.

Articles 1 and 2 of the Convention. Implementation of an active employment policy. In reply to the Committee’s previous comments, the Government recalls that the 2016-20 National Strategy for Employment and Human Resources Development aims at creating optimal conditions for employment growth and human resource development in Montenegro. The Committee also notes that the DWCP includes among its key objectives: the creation of favourable conditions for employment and sustainable entrepreneurship and the formalisation of the informal economy. It also contemplates the adoption of measures to reduce skills mismatch, in particular among young persons and to improve the efficiency of labour market institutions. Furthermore, the Committee notes the adoption of the Economic Reform Programme (ERP) for the period 2020–22, in line with the new approach of the European Union (EU) to the economic dialogue with candidate countries and potential candidate countries to the Union membership. The ERP’s objectives are consistent with those of the DWCP. The ERP also contemplates the elaboration and adoption of the National Employment Strategy 2021–24 in 2020. Moreover, the Committee notes that, according to the DWCP, the Government has been working in the elaboration of a new employment legislation. The Committee requests the Government to continue to provide detailed updated information regarding the policies and measures to promote full, productive and freely chosen employment developed and implemented in the framework of the National Strategy for Employment and Human Resources Development (2016–20), the ILO Decent Work Country Programme (DWCP) 2019-21, the Economic Reform Programme (ERP) and how they are coordinated with other economic and social objectives. It also requests the Government to provide information on the progress made towards the adoption of the new employment legislation and the National Employment Strategy 2021–24 and to provide copies once adopted.

Particular categories of workers. In reply to the Committee’s previous comments, the Government refers to the implementation of measures by the Employment Office aimed at the inclusion of members of Roma and Egyptian communities in active employment measures, such as education and training programmes for adults, public programmes providing direct employment opportunities, and seasonal employment. The Committee notes the information provided by the Government with regard to the number of participants in these active employment measures during the reporting period. In addition, the Government refers to the implementation in 2018 of the pilot programme “Empower me and I will succeed” with the objective of improving the employability and promoting the access to the labour market of members of the Roma and Egyptian communities. The Government reports that 9 women and 4 men participated in the pilot programme. The Committee requests the Government to continue to provide detailed updated information, including statistical information, on the active employment policy measures taken or envisaged to increase the employability and the employment rate of members of the Roma and Egyptian communities in the country. It also requests the Government to continue to provide detailed updated information on the measures taken to extend the reach of active employment programmes to benefit a greater number of persons from these communities.

Young persons. The Committee notes that, according to DWCP, the unemployment rate among young persons (aged between 15 and 24) was 26.8 per cent in the third quarter of 2018, while the EU average was 16.8 per cent. The DWCP highlights that young women are less likely than men to transit to employment and are at higher risk of falling within the category of youth who are not in employment, education or training (NEET). Furthermore, the DWCP highlights that young graduates lack the skills that employers need, and that school-to-work transition is not efficient. It takes on average two years for most young people to enter into stable and satisfactory employment. Against this background, the Committee notes that the Government refers to the continuation of the implementation of the programme of vocational training aimed at reducing unemployment of young persons with higher education and without experience by providing opportunities for additional acquisition of knowledge, skills and competences. The programme also provides inputs to policies of higher education institutions. The Government reports that 50 per cent of the participants continued to work after the expiration of the programme. Furthermore, the Government refers to the implementation of the “Stop Grey Economy” programme, which aims at promoting the participation of young persons in the labour market and preventing their entry into long-term unemployment by strengthening their employability through on-the-job training. The Committee notes the information provided by the Government in relation to the number of participants in the active employment measures implemented during the reporting period to address youth unemployment. The Committee requests the Government to continue to provide detailed updated information on the active employment policies and measures taken to improve the employability of young persons and their integration into the labour market, including policies and measures targeting young university graduates and young persons from less developed municipalities. It further requests the Government to provide detailed updated information on the impact of such measures, including statistical information disaggregated by age and sex.

Informal economy. The Committee notes from the DWCP, that it is estimated that 25 to 33 per cent of employment is informal. The Committee notes that, according to the 2020 European Commission report, in 2017 the Government adopted an action plan to combat the grey economy. Furthermore, in 2018 a Government “Commission for the Suppression of the Grey Economy” was established for the coordination of different actions, encourage cooperation between government bodies and assist local authorities. Its works focused mainly on the tourism sector and undeclared work. The Committee requests the Government to continue providing detailed and updated information on the scope of the informal economy and the measures adopted to facilitate the transition to the formal economy, including the measures adopted within the framework of the “Action plan to combat the grey economy”, and their impact.

Article 3. Participation of the social partners. In reply to its previous comments, the Committee notes the Government’s indication that the social partners participated in the elaboration of the 2016–20 National Strategy for Employment and Human Resources Development as well as on the formulation of its annual Actions Plans. The Government also indicates that the DWCP for the period 2019-21 was developed in close cooperation with the social partners. The Government indicates in its report that it expects that the implementation of the DWCP will enhance the institutional and technical capacities of the social partners, and the role and functions of the national tripartite Social Council. Furthermore, the Committee notes that the DWCP includes among its policy priorities, strengthening the mechanism of social dialogue and collective bargaining. In this regard, the Committee notes the adoption in July 2018 of the amended Law on the Social Council, which provides for the government’s obligation to seek opinions from the council on important draft legislative and policy measures as part of the consultation process. The Committee notes, however, that according to the DWCP, the impact and influence of this tripartite body is still limited. Although significant effort has been made by social partners to support the government with well researched analysis and evidence-based policy solutions, their recommendations are often not considered. The Committee requests the Government to provide detailed updated information on any development concerning the participation of the social partners in the formulation and implementation of employment policy measures, including those adopted to address the socio-economic impact of the COVID-19 pandemic.