M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 19 – Social Policy and Employment Bilateral screening: Chapter 19 PRESENTATION OF MONTENEGRO Brussels, March 2013
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT YOUTH EMPLOYMENT IN MONTENEGRO Jovan Kostić Higher advisor for register and mediation Employment Agency of Monetengro
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT CONTENTS: Legislative and Institutional Framework Statistical data on youth in Montenegro Activities for youth education and employment
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Legislative and Institutional Framework – Legislative framework: Constitution of Montenegro; Law on employment and exercising rights pertaining to unemployment insurance (‘’Offical Gazette of MNE” no. 14/2010 and 45/2012); Labour Law (‘’Offical Gazette of MNE” no. 49/08, 26/09, 59/2011); Law on professional training of persons who acquired higher education (“Offical Gazette of MNE” no. 38/2012); Law on Voluntary Work (“Offical Gazette of MNE” no. 26/2010, 31/2010 and 14/2012); Rulebook on conditions, manner, criteria and scope for implementing active employment policy measures (‘Offical Gazette of MNE” no. 27/2012); National Youth Action Plan; Draft Law on Youth. – Institutional framework: Ministry of Labour and Social Welfare; Ministry of Education; Ministry of Science; Employment Agency of Montenegro; Directorate for Youth; Human Resources Management Autority of Montenegro; VET Centre.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Labour Force Survey Statistical Office of Monetengro-MONSTAT 3rd quarter 20083rd quarter Unemployment rate (25.8) Employment rate ((16.3)) Activity rate ((27.2)) Youth unemployment is recognized as one of the main issues, given that with their employment, the youth represent a potential which should be a carrier of development of every society. According to the census data from 2011, there are 620,029 inhabitants in Montenegro, out of whom are youth aged or 14,02%. Statistical data on youth in Montenegro
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Youth by the level of education and registered as unemployed In the register of the Employment Agency of Montenegro (EAM), there were 31,232 unemployed persons by the end of 2012, out of whom 6,632 or 21.23% were youth aged The number of long-term unemployed youth was 1,052 or 15.86%. The number of youth without years of service was 4,472 or 67,43%. No. Youth aged 15-24EAM Level of education I and II – primary education III, IV and V – secondary education3,3003,873 3VI-1 and VI-2 – post-secondary education VII-1, VII-2 and VIII – tertiary education 7162,167 5Total:4,8766,632
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Pupils and Students In the 2012/2013 school year, 8,018 pupils enrolled in the 1st year of secondary schools; Total number of pupils in secondary schools (I-IV year) was 31,510; In the 2012/2013 school year, 7,805 students enrolled in the 1st year of studies at universities in Montenegro; Total number of students and post-graduates in Montenegro is 26,054. At the University of Montenegro, 4,670 students study free of charge. There are no data on the number of Montenegrin citizens who study abroad. Around 1,800 requests for recognition of diplomas acquired abroad are submitted per year.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Activities for youth education and employment Centres for information and vocational counselling (CIPS); Vocational guidance; Employment of trainees (traineeship); Project ‘’Working practice for higher education students”; Programme ‘’Professional training of persons who acquired higher education”; Project ‘’A chance for young managers”; Programme for professional training through voluntary work; Project ‘’Preparing students on the labour market’’; Project ‘’Summer Job ’’; Project ‘’Let’s employ our youth in seasonal jobs”; Project ‘’Employing domestic labour force in seasonal jobs 2013’’; Project ‘’Youth employment support”; Project ‘’Summer to earn’’; Programme ‘’Self-employment loans’’; Project ‘’Virtual enterprises’’; Project ‘’Your idea, your business’’; Project ‘’School for farmers’’.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Centres for information and vocational counselling (CIPS) The main purpose of CIPSs is to provide conditions for career development of pupils, school youth, students, employed and unemployed. In CIPSs’ premises, the information can be found on: – Education programmes in secondary and post-secondary schools and universities; – Requests for enrolling in certain education programmes; – Conditions for enrolment in schools and universities; pupils’ and students’ standard in dorms (student hostels); – Financial assistance during schooling; – Occupations and their requirements; – Job opportunities; – Labour market situation and potential employers...
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Centres for information and vocational counselling (CIPS) Programmes for promoting career development: – Programmes for primary school pupils; – Programmes for secondary school pupils: who are entering labour market; who continue their education. – Programmes for students; – Programmes for unemployed. The CIPSs are established in eight Montenegrin towns: Podgorica, Bar, Herceg Novi, Nikšić, Berane, Bijelo Polje, Mojkovac and Pljevlja. Additionally, CIPS within the University of Montenegro is also opened. In these eight municipalities live 72.69% of Montenegrin inhabitants, while 71,65% of unemployed are registered at the EAM.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Vocational Guidance Vocational guidance services build on the services which are provided in CIPSs; Vocational guidance is carried out through individual and group vocational information, individual and group vocational guidance, vocational selection and other activities, for the purpose of occupational choice, change of occupation and making decisions on career development of unemployed; Vocational counselling for career development; Psychological tests for choice of occupation and affinities; Designing information booklets for enrolment in secondary schools and universities; Information on possibilities of education in Montenegro and in the region; Labour market information;
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT A trainee is, according to the Labour Law, a person with secondary, post- secondary or higher education who is establishing an employment relationship for the first time for the purpose of professional training to work independently with the specific degree of education. The Employment Agency financed gross salary of trainees who have finished higher education study programme, post-secondary vocational education, general secondary and four-year vocational education, in the amount of 60% of the initial coefficient defined in the General Collective Agreement, for the job which requires the mentioned level of education; The period of participation in financing the salaries of trainees who have finished higher education is 12 months (with the exception of employees in judiciary – 24 months), for those who have finished post-secondary vocational education is 9 months, and for those with secondary vocational education is 6 months. After completing the traineeship, the EAM financed social insurance benefits for two years for the trainees employed on permanent term, while for the third year EAM financed one quarter of these benefits; In 2012, 1,510 trainees were employed and the EAM financed 455 persons. Employment of Trainees
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Working practice for higher education students ” The project’s objective is to speed up the access of higher education students to the labour market, immediately after finishing their studies, by acquiring work experience through working practice and employment; The project is aimed at unemployed higher education students without years of service, who are registered as unemployed over 6 months; Employment is established for the period of 9 months; The net salary of the employed is 150 EUR (gross EUR) and it is financed by the Employment Agency of Montenegro; Working practice and employment is carried out in private small and medium-sized enterprises; The project is implemented for 500 higher education students.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Programme ‘’Professional training of persons who acquired higher education” In order to address youth unemployment issue, especially the youth who acquired higher education, the Government adopted the Law on professional training of persons who acquired higher education; Professional training is a continuous, program-based and systematic activity for acquiring knowledge, skills and competences to independently perform work-related tasks; Professional training is carried out without establishing employment, in accordance with the programme for professional training in a certain area of activity; Professional training is aimed for persons with higher education and without work experience in a certain level of education, and who are registered as unemployed; Professional training lasts 9 months and is recognised as work experience of 12 months and serves as a condition for passing an adequate professional exam with acquired higher education; During professional training, the users of this programme get remunerated in the net amount of 50% of an average wage in Montenegro in the year proceeding the year in which the agreement on professional training has been signed; The Employment Agency of Montenegro is responsible for monitoring professional training of those employed in private enterprise, while the Human Resources Management Authority is responsible for those employed in public administration; In this year’s programme, 4,211 persons who acquired higher education are involved. The Government allocated 10,000,000 EUR in 2013 for implementation of the programme.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’A chance for young managers” The project’s objective is to ensure high level of knowledge and skills of young managers which they have not acquired during their regular education; Lectures in the field of management basics, project management, marketing, PR and business communication; First part of the training is aimed at applying dynamic and modern types of interactive lectures. The focus is on joint exercises, simulations, workshops and it lasts 30 days; Second part of the training is aimed at practical work which lasts 2-3 months. The participants will get through all levels of the organisation in order to get fully acquainted with the manner of functioning of the enterprise in question; The Employment Agency of Montenegro has provided funds for wages of trainees after completion of practical training; There were 9 seminars attended by 115 young persons; Upon completion of the entire training, 106 participants got a permanent employment by 65 employers.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Programme for professional training through voluntary work According to the Law on Voluntary Work (“Offical Gazette of MNE” no. 26/2010 of 7 May 2010), the voluntary work is voluntary and free of charge investment of time, knowledge and skills used for performing services or activities for other people or for common good of society. The voluntary work is carried out without the right to a salary for the performed work, remuneration or other gain, unless otherwise provided by the law. In 2012, the Employment Agency of Montenegro in cooperation with the Ministry of Health and the Ministry of Labour and Social Welfare implemented a professional training programme for 254 persons through voluntary work. 235 persons from medical professions attended the professional training programme through voluntary work in public health institutions of Montenegro in order to have a right to pass the professional exam as a requirement for getting a work licence. It lasted 6 months for 200 persons with secondary medical school – IV level, and 9 months for 35 persons with higher medical education – VI level. Additionally, the professional training programme through voluntary work is carried out also for 19 persons in socio-humanistic professions and social care professions, in public social institutions of Montenegro, and lasts 9 months.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Preparing students in the labour market’’ The project is implemented in cooperation with the Youth Office within the Ministry of Education, Montenegrin Employers Federation, University of Montenegro and University “Mediterranean”. Target groups are final year university students. To provide system support to the youth in developing knowledge and skills which can be useful in their future professional development; to facilitate transition from studies to the labour market; to complement educational process with practical work; More active and efficient involvement of final year students in the labour market; Carried out through theoretical and practical work with the employer; Education attended by 100 students.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Summer Job ’’ The project’s objective is to support acquisition of practical experience of students who get their university degree in 2011/2012 school year and who have the obligation to continue their education at post- graduate studies; Professional training and scholarships for 33 students from 12 municipalities in the northern region, aiming to prevent drain of young people from the northern, underdeveloped municipalities and strengthen human resources capacities in local self-governments; Practical part of the project is carried out in the period July-September 2011, and the scholarship for 2011/2012 school year was paid out in its full amount up to June The scholarship was 1,350 EUR per student, and it was financed by the Employment Agency of Montenegro. The students had to fulfil their work duties in the period July – September 2011 and to continue their studies after completion of the practical work.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Let’s employ our youth in seasonal jobs” The project is implemented during the summer tourism season; Objectives: engagement of significant potential of youth who are in the education system and ensure their first employment in seasonal hospitality and tourism jobs; increase domestic workforce in seasonal jobs; increase competencies and work experience of youth in order to enhance their overall employability; It is important that young people get their first work experience and develop work culture already during education; In line with this programme, the right on subsidies have those employers who employ youth aged up to 25 years who were not employed in the previous period and who are Montenegrin nationals; The employer who employs an unemployed person aged up to 25 years during this programme, signs a working contract with that person and registers that person with the authorised body, has a right on subsidy in the amount of: – 100 EUR per month for youth without work experience, and – 80 EUR per month for youth with work experience. In 2012, the employers employed 1,568 youth by using the abovementioned benefits.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Summer to earn” Employing secondary school graduates and students in hospitality and tourism jobs; The project has developed gradually – in the first year only secondary school graduates were involved, while pupils aged 15 and students got involved in the next years; A survey was conducted in all secondary schools and universities in Montenegro on the interest of pupils and students in employment in seasonal jobs; Database on 5,000 pupils and students; Over 500 secondary school graduates and students get employed during the season; The project is implemented by the Employment Agency of Montenegro and NGO “Tvrdjava” in cooperation with the Ministry of Education, Ministry of Sustainable Development and Tourism and Montenegrin Tourism Association.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project “Employing domestic labour force in seasonal jobs 2013’’ The project aims at youth – pupils and students, unemployed and employers; The project’s objectives is to enhance the employment of domestic workforce in seasonal jobs instead of non-residents as in previous years; Two-day seminars will be organised for pupils and students in order to motivate them to work in seasonal jobs and provide information on employment during the season; Unemployed will be involved in various programmes for seasonal jobs preparations, as well as in additional training and re-training programmes; Mobile teams will be established and they will visit employers who employ seasonal workforce the most, and based on their needs, the youth and unemployed will be trained and prepared.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Supporting youth employment” EC funded project CEE YOUTH (Youth Employment Support) started its implementation on 24 January The project leader is the Confederation of Hungarian Employers and Industrialists. The project is implemented in Montenegro by the Montenegrin Employers Federation. Other partners in the project are employers associations (and their trade union partners) of Austria, Slovakia, Slovenia, Croatia and Bulgaria. The project’s objectives are: – raise awareness, knowledge and understanding among employers, employees and their representatives on the advantages of employing young people; – provide employees, employers and their representatives at all levels with Best Practices to locate obstacles to the gainful employment of youth and to create solutions to overcome them; – encourage employers to help inspire young people and to offer more work experience, internships and apprenticeship opportunities to young people; – achieve better synergy between world of education and world of labour; – improve the quality of internships and apprenticeship and all other types of professional training with employers.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Programme ‘’Self-employment loans’’ Target groups of this programme are unemployed, small-sized enterprises and entrepreneurs, while specific incentives are meant for women entrepreneurs, as well as for development of entrepreneurship in underdeveloped local self-governments. Loan requirements: The amount of the granted loan per newly employed is up to € 5,000; The loans are granted for opening of maximum 3 jobs (maximum amount of the loan is € 15,000); The grace period is one year; The loans are repaid in semi-annual instalments, with the repayment term of: » Three years for unemployed, » Two years for small-sized enterprises and entrepreneurs; The interest rate on an annual basis: » 3% for projects which women are responsible for, » 3% for projects implemented in underdeveloped municipalities, » 4% for projects implemented in developed municipalities. In , 18 youth projects were granted, 21 persons were employed, in the value of EUR.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Virtual enterprises’’ Virtual enterprises, with faithful simulation, represent a model of business life and entrepreneurial world, ensuring fast and quality acquisition of practical knowledge and skills needed for business. The project’s objective is to prepare participants for all what a job requires; Providing knowledge which enables participants to independently manage their business, as well as meeting the needs of employers for fully trained workforce; Training within the virtual enterprise is designed as a very efficient model of learning by doing, where participants and their mentors simulate working process – from establishing an enterprise, designing business plan, employment, to establishing necessary services within the enterprise, such as: sales department, supply dept, personnel dept, finance and accounting, marketing, etc. The users are unemployed youth who want to independently start their business; In 2012, 3 seminars were organised and 47 persons were trained.
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project ‘’Your idea, your business’’ The project is implemented by the Employment Agency of Montenegro, Investment and Development Fund and Directorate for development of small and medium enterprises; Call for selection of 10 best business ideas was announced; Valuable compensation was provided for the best projects; The Employment Agency of Montenegro ensured training through “Virtual enterprises”; The Investment and Development Fund provided € 100,000 for loans for 5 best business ideas, under favourable conditions (interest rate 4-5%, grace period months, loan-repayment period up to 5 years).
Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Project “School for farmers” The project is implemented within the Cross-border Programme Montenegro -Serbia financed under IPA. The Employment Agency of Montenegro (EAM) and Centre for Development of Agriculture are involved in the project from the Montenegrin side, while the Employment Service from Prijepolje and Agriculture Centre from Priboj are involved from the Serbian side. The project’s objective is to strengthen agriculture, improve agricultural production and employment of youth in the field of agriculture; The project was educational and target groups were unemployed youth from rural areas who have conditions to apply innovative knowledge and expand their agricultural capacities; 30 participants were trained. The project envisaged the employment of 15 participants through loan support of EAM in the field of agriculture; Loans are provided for participants in the programme; 15 participants who were registered as agricultural producers used loans.
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