Serbian company fires 62 workers, 400 more face layoffs

The Serbian company "Falk ist" (Falc East), located in Knjaževac, has terminated the employment of 62 workers, with a further 400 potentially facing job losses by the close of the year. The United Trade Unions of Serbia "Sloga" announced the layoffs.

Željko Veselinović, the president of the "Sloga" union and a member of the Serbian Parliament, raised concerns about the situation during a session in the National Assembly. He urged relevant authorities in Knjaževac and at the state level to thoroughly investigate the company's business activities and implement measures to safeguard the interests of both the workers and the public.

Veselinović stated that while layoffs due to technological redundancy or business process changes are not inherently problematic, the announcement of further mass reductions in the workforce is deeply concerning. He noted that the Ministry of Finance and the Tax Administration had previously identified tax irregularities within the company.

“

Therefore, I am warning you in advance. If the announced layoffs of around 400 more workers materialize, the competent institutions must react before the problem becomes much larger.

"Therefore, I am warning you in advance. If the announced layoffs of around 400 more workers materialize, the competent institutions must react before the problem becomes much larger," Veselinović said. He emphasized that workers should not consistently bear the brunt of business decisions and that the state must intervene when there are indications of harm to both employees and public revenue.

The "Sloga" union believes that the "Falk ist" case highlights the need for more rigorous oversight of companies employing a significant number of people, particularly when mass layoffs are anticipated. Veselinović also pointed to the necessity of reducing taxes and contributions on wages to facilitate salary increases and new investments, ensuring that workers benefit from such fiscal relief.

“

We cannot allow workers to always be the first to pay the price for business decisions. The state must react when there are indications that both workers and public revenues are being harmed simultaneously.