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January statistics already shows a decrease in production, as well as a decrease in import and export. Government Economic Council member Jurij Bajec said that these are all elements that lead to recession.

“If work weeks are shortened, I’m sure people will use that free time for some kind of additional activity, because, grey economy is not always evil, often there is the question for ensuring some kind of survival in that way,” Bajec said.

According to him, 600,000 employees of two million already work off the books, while the Serbian Employment Service says the number ranges between 200,000 and 300,000.

“Some companies will probably shorten working hours, without expecting concrete solutions from the government, such as U.S. Steel, because that is one temporary way to solve the problem, but the question is how long it can last,” Bajec said.

Namely, U.S. Steel workers in Smederevo were told yesterday that they would receive 60 percent of their regular daily wages for Fridays they are not working. This is the first company in Serbia to implement the shortened work week.

“The government has presented a package of measures through banks by way of subsidized interest rates, with the promise that this will maintain the employment rate. This would be a new measure, some countries implement that and have the budget assets at their disposal.”

In Serbia, on the other hand, the budget does not foresee covering the costs of shortening the work week. Unions have said that they will not accept pay cuts, while employers in Serbia believe that the workers should not be paid for days they spend at home.

Labor and Social Policies Minister Rasim Ljajić launched the initiative for the government to adopt recommendations for employers to look towards decreasing work hours instead of laying off people, but there has yet to be any announcement of when the government will debate the issue.  If the government passes the proposition, cutting the working week will not be obligatory for all the employers, but only for those who plan to cut the number of workers.

Ljajic says the implementation of the shorter working week does not mean cutting the salaries, since the working hours would be compensated by overtime work in the next 6 to 12 months.