The “Johnson Electric” factory in Niš, initially promising to hire 3,400 workers, has seen multiple adjustments to its employment commitments over the years. The factory’s original contract, signed in 2016 with government backing of 19.2 million euros, set high expectations for job creation. However, this commitment has been revised several times, with the most recent amendment in late 2024, reducing the factory’s workforce target to 1,550 employees by 2027.
In the original agreement, the company pledged to employ at least 3,400 workers on a permanent basis, but in 2021 this number was revised down to a minimum of 2,200 workers. The latest changes indicate that Johnson Electric will not reduce its workforce below 1,550 employees during the guaranteed investment and employment period, spanning from December 31, 2022, to December 31, 2027. The company also committed to paying each employee a wage that exceeds the minimum labor price by at least 20%.
Due to its failure to meet the original employment targets, the company is now obligated to return nearly 1 million euros in subsidies received from the state. As part of the revised contract, Johnson Electric filed a request to adjust the employment figures, citing changing circumstances. These revisions were made despite the company’s earlier assurances and adjustments to fulfill commitments made to the government.
The factory, which has received support from both the local government and the Ministry of Economy, was initially seen as a symbol of economic revitalization for Niš. Prime Minister at the time, Aleksandar Vučić, had hailed the project as a “great miracle” and a chance for Niš to regain its industrial prestige. However, after various changes to the agreement over the years, including extensions and adjustments to employment expectations, the reality now reflects a much smaller scale of employment.
The current situation with Johnson Electric’s Niš facility highlights challenges faced by major investment projects, particularly in meeting promised targets amid changing economic conditions and operational challenges.
