In the factory of the South Korean company "Jura"in Leskovac In recent days, the dispute between the management and the union regarding the extension of the measure of paid leave for 300 employees, at the moment when it was announced downsizing due to a drop in the number of orders.
The company is announced that due to the reduced volume of orders and the termination of several projects, she was forced to propose an extension of paid leave until the end of 2026, in order, as they state, to save jobs in the conditions of the crisis in automotive industry. However, their request was not even considered in the competent ministry because the opinion of the Independent Union of Metalworkers of Serbia was not submitted, without which the procedure cannot be completed.
"Jura" warns that any delay prolongs the uncertainty for 300 families and makes it difficult to make business decisions. They believe that it is in the interest of the employees that the procedure is carried out without further delay.
The company previously announced the implementation of a business optimization and organization plan, which, in addition to the extension of paid leave for some employees, also includes an offer to terminate the contract by agreement. As they announced, up to 45 people should remain without work, RTS reported.
With state subsidies, the world leader in the production of cables for the automotive industry arrived in Leskovac at the beginning of 2012. In ten years, Jura built three production halls and at one point employed more than 3.500 workers. This was followed by a reduction in the number of employees, and last year 121 workers were dismissed from the plant in Leskovac.
Unions seek dialogue
On the other hand, Trade union the organization "Jure" in Leskovac says that it will not agree to the extension of paid leave beyond the legal maximum until a dialogue is opened on the overall organization of work in the factory. They point out that, in parallel with the announced reduction in the number of employees, some workers still work overtime, on Saturdays, with high and, as they claim, often unrealistic standards.
The trade union is particularly concerned about the dismissal of workers who have submitted documentation to the employer about the existence of work disability, and whose contracts are being terminated on the basis of technological redundancy with the explanation that there are no suitable jobs for them.
According to their opinion, the period of reduced volume of production should be used for reorganization of work - reduction or abolition of overtime, adjustment of norms and minimizing the number of layoffs. They see the opening of dialogue with the employer as a necessary condition for any further agreements on measures.
The Independent Union of Metalworkers of Serbia also announced, assessing that the situation in the auto industry companies in Serbia is becoming alarming and that the "Jura" case is not an isolated one. According to their data, during the year 2025, 12.640 workers in the sector were sent on paid leave with compensation of 60 percent of salary, for a duration longer than the legal 45 working days. They also state that such practice resulted in the dismissal of more than 6.000 workers in 2025, while the negative trend continues in 2026.
Photo: Tanjug / Dimitrije NikolićWill thousands of people lose their jobs in the auto industry?
Foreign investment crisis
The situation in "Jura" from Leskovac is part of the broader crisis of the domestic auto industry, but also the general departure of foreign investors.
During the last year, several thousand people lost their jobs in foreign companies, mostly in factories that operated in the south of Serbia.
Benetton and Johnson Electric closed the factories first, laying off a total of 1.250 workers. Then he left Centaur from Vranje and left more than 250 workers out of work, and 50 workers each were fired by Trendtekst in Bela Palanka and Vranje Solpro. Then Leoni closed the plant in Malošishte, where 1.900 workers lost their jobs, and some companies, such as Centaur, cited the increase in the minimum wage as one of the reasons for leaving. Aptiv laid off 400 workers in Leskovac, and the plant in Zaječar was closed.
Ranka Savić from the Association of Free and Independent Trade Unions (ASNS) stated earlier that in 2025, about 5.000 people in the south of Serbia will lose their jobs and warned that the wave of layoffs and closures just started.
The President of Serbia, Aleksandar Vučić, attributed the departure of foreign investors to the increase in wages, but during the past year he repeatedly blamed blockades in the country.
Thus, at the beginning of October, he declared that Serbia is no longer an attractive place for foreign investments because it no longer has a cheap workforce, and because "someone deliberately destroyed the university and dual education."
Foreign direct investments halved
Judging by the trend in the first three quarters, foreign direct investments were almost halved in Serbia last year, because for the first nine months the gross inflow amounted to about 2,5 billion euros, while in the same period last year, 3,8 billion were realized, and for the whole of 2024, a record 5,2 billion, Demostat announced.
The government blamed global trends and political instability in the country for the decline in investments, alluding to student and civil protests, but foreign companies operating in Serbia cite a whole range of other causes for the stagnation in investments, which "take a toll on the soul" of the country, writes Demostat.
What should additionally alarm economic policy makers are the results obtained on the question of how companies evaluate the investment climate compared to the previous two or three years. Namely, in the group of companies that previously assessed the environment as "very bad", 69,2 percent believe that this year's climate is "significantly worse", 23,1 percent that it is "somewhat worse", and only 7,7 percent that it is "approximately the same".
For the first time, in response to the question "What are the biggest obstacles to investing in Serbia?" high ranking finds political uncertainty and corruption. Those two answers especially dominate in the group of companies that rated the investment climate as "very bad" - as many as 69,2 percent of company representatives cited it as the main obstacle, writes Demostat.
Abrupt return of foreign investments in Serbia: Uncertainty, corruption, labor shortage
Source: Vreme/Južne vesti/RTS
