Serbia has 1,687 registered factories in the textile, clothing, leather and footwear sector, employing 60,725 workers. Despite producing goods for major global brands, these workers face poor working conditions, with low wages and numerous labor rights violations. Research by the Center for Emancipation Policies (CPE) reveals severe issues such as inadequate ventilation, unsafe working temperatures, excessive overtime and lack of medical care.
The textile sector is an important contributor to Serbia’s export economy, accounting for 5.8% of total exports. From 2019 to 2023, the sector attracted €179.4 million in foreign direct investments, with the highest inflow of €61.5 million in 2021.
Workers often suffer from joint, spine, vision, hearing issues, respiratory problems, and heart diseases due to the poor working environment. The lack of proper medical checks and safety measures exacerbates these problems. Many workers report frequent injuries, such as cuts, stings, and fainting from heat, with one factory even recording deaths linked to unsafe conditions.
Salaries in the sector are below the national average. In 2024, the average net salary for textile workers was approximately 61,133 dinars (€520), compared to Serbia’s average net salary of 96,745 dinars (€825). Wages primarily consist of the minimum salary, with overtime and bonuses making up the difference. However, these earnings are still far from sufficient, and workers are often subjected to unrealistic production norms, leading to pressure and exploitation.
Multinational corporations are drawn to Serbia due to its low labor costs, proximity to Western Europe, and subsidies offered by the government. These factors allow companies to operate in a “race to the bottom,” where labor rights and wages are suppressed to attract investment. This situation worsens during economic crises, such as the COVID-19 pandemic, when fashion brands canceled orders and refused to pay for produced goods, leaving workers without compensation.
Despite these challenges, the union movement in Serbia has gained some traction. Workers in unionized factories report better protection and advocacy for improved conditions. However, in factories without unions, workers are vulnerable to threats of dismissal and workplace abuse, including discrimination and sexual harassment.
The Serbian government’s practice of offering subsidies to attract foreign investors has led to job insecurity, with companies often relocating after the expiration of contracts, leaving workers unemployed without severance pay. The labor rights violations in Serbia’s textile sector are indicative of broader systemic issues within the global fashion industry, requiring structural reforms to ensure fair working conditions and wages.
