Discussions between actors and interest groups for alerting the activities of export producers

In the meeting held between the majority of actors who have the same concern, common to the economy, manufacturing and exporting as well as employment, it was emphasized as a comprehensive need to react to the worsening conditions of doing business. The worsening situation of the decline of imports and exports to a significant extent compared to 2022 is influencing with overwhelming effects the decline of sales and the beginning of the declaration of the emergency situation, which is the threshold of the crisis of the vital sector of exporters to date.

Exporting and manufacturing companies, according to their financial indicators, are producing less and will also offer less products for sale. it also means companies need fewer employees and layoffs often result.

Everything that is happening in the export manufacturing economy is affecting the labor market.

The decline in the value of sales from the rapid strengthening of the Lek and the increase in direct costs from the government’s actions related to the increase in the minimum wage and the impact of inflation on daily expenses are rapidly creating an unfavorable environment for further continuation and are forcing the vast majority of exporters close their activities and apply for passive status.

This drastic measure forced by the accumulation of losses and the lack of clarity for the market in the coming year will create an effect in increasing unemployment by at least 2% from the current level, where mainly the greatest unemployment will be felt in employees and young people.

Even the Albanian economy will have a decrease in employment, since the economic closure will also affect suppliers within the country, who have signed contracts with manufacturing businesses, from public enterprises to transportation costs, of raw materials within the country from the agricultural and livestock sector and up to the payments of social contributions and taxes, which are realized by maintaining activities.

Meanwhile, in today’s meeting, the employee unions, various organizations, such as the one for gender equality, and for good governance together with active members of civil society, express solidarity and support over the increased concern to alarming levels regarding the situation of the risk of closing a vital part of the labor market, where young workers and women are the most vulnerable for many reasons.

Union representatives expressed support by appreciating the fact that exporting companies maintain economic and employment balances. Meanwhile, civil society representatives requested that the approach continue on an inclusive basis and that communication and liaison between the parties not be stopped in order to find the necessary solutions. A growing concern is the need to really measure the impacts and effects of this situation in the economy, in social life and in the budget of the state and that of businesses, accurate official statistics are needed in real time and serve as a common basis of social dialogue between the parties.

Consequently, these workers are left alone and the government unfortunately sees this economic problem and the current crisis only through two approaches: that of leaving the market to address the problems, considering it a failure of the business model, as well as the treatment according to the legal framework for unemployment and for the job offer in other sectors if there is a mass closure of production and export activities.

The current crisis has also highlighted an extraordinary weakness in the preparation of institutions to cope with such cases of the pre-closure of an entire sector through the creation of special funds to be used for periods of sector crises or crises caused by lack of coordination between institutions and unfinished tasks for a competitive environment, without informality and with market rules of a free economy.

Now the moment has come, that we are all feeling the crisis. In this extreme situation, an awareness of the competent institutions would be needed to prepare, feeling how difficult it is to deal with such moments. Potentially, each of us needs institutional support in case of loss of business and consequent loss of jobs. Therefore, confronting and exhausting all the arguments through institutional panels is a social and economic necessity for our country.

As a first measure, it will be proposed that the discussion and proposals for dialogue on the situation be placed at the first meeting of the National Labor Council.

Meanwhile, other escalated measures will continue to be discussed and proposed in order not to leave this entire pre-crisis situation to chance and inaction.