Trade Union Warns of Alarming Situation in Serbia’s Automotive Industry

Yura factory (BETAPHOTO/Sasa Djordjevic)

The Independent Union of Metalworkers of Serbia on Feb. 10 said that South Korean company Yura’s plant in Leskovac was planning to offer its employees termination of their contracts by mutual agreement, while at the same time a request had been submitted to send about 300 workers on paid leave for the whole of 2026, on 60 percent of their salaries.

These measures were triggered by a serious decline in Europe’s automotive market, the union said, describing the situation in Serbia’s automotive industry as alarming. According to union data, during 2025, a total of 12,640 workers in Serbia’s automotive industry were sent on paid leave longer than 45 working days as legally allowed, resulting in more than 6,000 layoffs.

The union added that the trend continued at the beginning of 2026, warning that Yura would not be the only case, as similar measures had been also announced in other automotive industry plants throughout Serbia, especially in its underdeveloped parts. Although these measures are formally in accordance with current laws, the union points out that an additional problem is that most employees have less than ten years of service, so their severance pay is generally lower than RSD200,000, which is not enough to ensure existential security.

Representatives of the Independent Union of Metalworkers also presented this information at a meeting with Prime Minister Djuro Macut in January 2026. The union requested an immediate reaction from the state and social partners, warning that any further delay in taking action could lead to mass layoffs and further deterioration of the social position of workers, especially in Serbia’s south. The union demanded from the state to take an active role in protecting workers, rather than only ensuring formal compliance with the legal minimum.