ILO and GIZ Expand Project to Enhance Grievance Mechanisms for Workers in Serbian Supply Chains

Germany holds a significant position as a trading partner for Serbia, with over 15% of the country's total export value directed towards the German market.

The International Labour Organization (ILO), in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has extended its initiative to enhance grievance mechanisms for workers in Serbian enterprises linked to German supply chains. This collaborative effort aims to ensure better access to enterprise-level grievance mechanisms, fostering fair labor practices and compliance with human rights standards.

Germany holds a significant position as a trading partner for Serbia, with over 15% of the country's total export value directed towards the German market. Following the implementation of the German Supply Chain Act (SCA) on January 1, 2023, companies with more than 1,000 employees are mandated to conduct human rights due diligence throughout their supply chains. This includes identifying risks, taking preventive measures, and establishing grievance mechanisms for workers.

Under the SCA, workers in Serbian companies within German supply chains have the right to file complaints directly with German companies or relevant authorities if they perceive their rights are violated. The introduction of effective enterprise-level grievance mechanisms plays a crucial role in allowing workers to address potential violations internally, thereby preventing more extensive labor disputes and maintaining ethical business practices.

The ILO and GIZ Partnership:

In February 2023, the ILO partnered with GIZ to launch the project titled “Ensuring Adequate Access to Grievance Mechanisms for Workers in Automotive, Electrical, and Textile Industries in Serbia.” This initiative focuses on improving access to grievance mechanisms for workers in key sectors connected to German supply chains.

Project Pillars and Achievements:

Creating Evidence: A comprehensive assessment revealed gaps in formal and informal grievance mechanisms within Serbian labor regulations. The project identified existing practices where some employers have implemented internal grievance mechanisms, while others have not.

Developing Tools: The project developed a Manual on grievance mechanisms and an Equality Code in collaboration with the Commissioner for Protection of Equality. These tools provide practical guidance to both workers and employers, emphasizing antidiscrimination measures and compliance with due diligence legislation.

Building Stakeholder Capacity: Compliance officers and workers involved in German supply chains were trained to enhance awareness of the Supply Chain Act’s requirements and the importance of grievance mechanisms. Workshops with trade unions and the private sector in Serbia promoted the adoption of effective internal grievance mechanisms and heightened awareness of human rights due diligence.

Enhancing Dispute Resolution: The project supported the Republic Agency for Amicable Settlement of Labour Disputes in Serbia, resulting in a significant increase in the resolution of cases through mediation services.

Future Directions:

The project’s second phase, scheduled until March 2025, will expand interventions to additional sectors of the Serbian economy linked to EU supply chains. This extension aims to further enhance access to effective grievance mechanisms for a broader segment of Serbian workers, contributing to improved working conditions and compliance with international labor standards.

As the initiative progresses, the ILO and GIZ remain committed to advancing fair labor practices and strengthening the resilience of Serbian enterprises within global supply chains. By empowering workers and promoting transparent grievance mechanisms, the project seeks to uphold human rights and foster sustainable economic development in Serbia.