The leadership of Serbian trade unions has reported increasing layoffs within domestic factories, with hundreds of job losses anticipated across various sectors.

Željko Veselinović, president of the United Trade Unions of Serbia 'Sloga,' confirmed that the footwear factory 'Falk ist' in Knjaževac plans to lay off an additional 100 workers starting April 1, following a total of approximately 500 workers deemed 'technologically redundant' over the past six months.

'Out of 1,200 workers, around 400 will remain,' Veselinović stated.

Further, he indicated that layoffs are also forthcoming at the 'Leone' factory in Malošište, which, along with facilities in Prokuplje, Niš, and Kraljevo, employs roughly 12,000 individuals, with about 3,000 workers at each location.

Veselinović noted a change in management at the Malošište factory after the previous director resigned in protest against planned job reductions.

Zoran Mihajlović, secretary of the Independent Trade Union Confederation (SSSS), attributed the reduction in employment numbers to global economic conditions, suggesting the possibility of factory closures.

He referenced a recent request from a non-metal and chemical sector factory seeking union approval to extend unpaid leave for 86 workers from 45 to 60 days.

Such approval is necessary for the Ministry of Labor to authorize the extension.

Mihajlović stated that the union agreed to this extension, considering it preferable to outright layoffs.

He characterized these developments as initial signs of a potential crisis, highlighting that voluntary severance could be the next step, followed by layoffs and factory shutdowns.

Mihajlović expressed concerns about an impending serious crisis, particularly impacting factories producing components for the automotive industry.

He noted that at the 'Jura' facility in Leskovac, employees are being offered severance agreements due to external factors like fluctuating market conditions and rising raw material costs, along with diminishing interest in electric vehicles.

'Aptiv,' another company in Leskovac that manufactures automotive electrical systems, has similarly proposed severance packages to long-term employees on paid leave, offering around 80,000 dinars annually, while 'Jura' offers between 350,000 and 400,000 dinars.

Mihajlović pointed out that the first layoffs are likely to affect workers at factories that received government subsidies, complicating their prospects for future employment.

He remarked that Italy is also facing significant layoffs, with expectations of about 90,000 job losses in the current year.

Problems have also been reported at the 'Stelantis' automobile factory in Kragujevac, which had previously announced plans for increased production in September of last year.

Currently, the facility operates at minimum capacity, producing electric vehicles for sale to gauge demand.

Mihajlović noted that initial assessments favored early production of electric over hybrid vehicles due to projected high demand; however, the emergence of cheaper electric vehicles from Chinese manufacturers has altered market dynamics.

The price of the 'FIAT Grande panda,' an electric vehicle produced by 'Stelantis,' is approximately 27,000-28,000 euros, which, even with a 5,000-euro government subsidy, is considered high.

Plans are in place for 'Stelantis' to introduce a hybrid version of the vehicle in Kragujevac by this autumn.

Currently, around 1,200 workers are employed at the factory, representing nearly half the workforce compared to when 'FIAT 500L' production was operational.