BOSNIAN ECONOMIC AND SOCIAL COUNCIL HELD A SESSION

SARAJEVO, Bosnia (September 7,2007) – The Bosnian Economic and Social Council for the territory of the FBIH entity discussed at the emergency session in Sarajevo the preliminary draft of the law changing and amending the Law on Incomes in the FBIH entity.

Council supported the attitude of the FBIH Entity Minister of Finances that the lower rates of incomes cannot be introduced to the Law for now, because of the increased employment rate. As stated, it would be a risk in the process of providing funds for the pension, health and other forms of insurance. The rates could be lowered only one year after the adoption of the law.

It has been decided that the objections made by the Bosnian Association of Employees and the Bosnian Association of Independent Unions, as well as the Preliminary draft of the law changing and amending the Law on Incomes should be submitted to the FBIH entity government.

Employers and the Union also stated that the Law on Incomes should be discussed in a package at the FBIH Entity Parliament’s session, along with the laws on income taxes. The Council is of the opinion that they should and can be simplified.

The Union expressed concerns over the solution to eliminate the gross wage and to introduce the salary system, for, as they stated, it would demand significant changes to the general and department collective agreements.

The Union is also concerned that the Preliminary draft to the law does not plan elimination of benefits for the textile, leather and shoe wear sectors