Overview of LBAS activities years 2006- 2011

Increase and retaining of the minimum wage

Work done so far:

• The minimum wage from 2006 to 2011 has increased from 90 Ls/monthly up to 200 Ls/monthly •In June 2009 LBAS and LDDK (Employers Confederation of Latvia) did not allow to decrease the minimum wage from 180 to140 Ls/per month • LBAS obtained that subsistence level were taken into account in revising the minimum wage

Proposals for the future:

•The minimum wage has to be increased according to the cost of living level and the development of national economy •It should be a priority to increase untaxed minimum of population income tax up to the level of minimum wage but benefit to dependent-care - up to subsistence level

The fight for decent wage retention

Work done so far:

• LBAS managed that employees’ rights included in collective agreements among them the rights to pay bonuses, gratuities, allowances and to do other material support in years 2010 and 2011 are considered in state and local government joint-stock and limited companies (Ltd) • LBAS has not allowed several attempts to reduce additional payment for overtime work, night work and work on public holidays

Proposals for the future:

• Strongly push for observing the obligations included in collective agreements • Not to permit any attempt to worsen employees’ social security and welfare • To succeed in increasing average wage, approximating its size to the average wage level of the European Union countries

Changes in tax policy

Work done so far:

• In 2007 during the negotiations with the Ministry of Finance were reached agreement on capital and dividends taxes enforcement.

• During the crisis failed to eliminate reducing of untaxed minimum of personal income tax un deductible expenses and increasing personal income tax ,value added tax (VAT) and state mandatory social insurance contributions(SMSIC) rates .

• Thanks to LBAS durable pressure and insistence, real estate tax for living space was not increased 10 times, but only twice.

Proposals for the future:

•Actively protest against unfair decisions made by the government and Saeima (Parliament) by offering alternative proposals to resolve the situation • Government has to be asked immediately to begin reducing tax burden for labour • Untaxed minimum has to be determined for real estate per family member • Do not allow the abolition of reduced VAT rates • Financial transaction tax which is supported by both ETUC and the European Union has to be established

Achievements in social security :

• Law “On state pensions “ - early retirement rights extended to 31.12.2011.; - o increase premium to old-age pensions; - to provide premium to disability pensions.

√ Law “On personal income tax” - to increase untaxed minimum of state pensions to 165Ls; -To increase the size of additional benefits of personal income tax for I,II and III group disabled people ;

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to adapt untaxed minimum of personal income tax for working pensioners

Achievements in social security :

√ Law “On State Social Insurance” -In 2007 retaining mandatory social security contributions rate for employees √ Law on State social benefits - Retaining the rights to family state benefit (8Ls) for all families √ Law „On Maternity and Sickness Insurance” -Since 01.01.2008. paternity allowance of 100 % benefit recipient’s average insurance contribution wage √ Law „On Unemployment Insurance” - compromise version of the order of payment of unemployment benefit to 31.12.2011.

Social security: tasks

• To maintain early retirement rights by December 31, 2015. •To improve the system of pensions indexation anticipating tieback with length of service.

•To achieve maintaining of premium payment of new allotted pensions also after January1,2012 at least for small pensions or anticipate differential amount of premium depending on pension size and total insurance period and to change financing source of premium, i.e. from state’s general budget •To achieve renewing and determination of the rights to long-service pension for employees of several professions.

•To achieve the retaining of the rights of retirement with preferential rules for people who has worked in very harmful and very hard working conditions or in harmful or hard working conditions also after year 2012.

Social security: tasks

• To achieve abolition of personal income tax adaptation for any types of state pension.

•To achieve national social security benefit increase from 45 LVL to 60 LVL •To achieve the observation of social insurance principle regarding disablement remuneration due to accident at work or professional disease providing and unemployment benefit •To achieve state mandatory social insurance contributions reduction for employees at least about 2%.

Situation in the area of labour protection (LP)

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LP is not a priority in the country

and in many enterprises as a result: • business is built on employee health and life; • In Latvia the average lifespan of population is: men – 66 years, women – 77 years, one of the shortest in the EU. Reasons – most of people work in hard and harmful working conditions ; • During the crisis- the enterprises had fewer resources to maintain safe working environment, •-fewer LP specialists, - LP monitoring is worse at working places; • State Labour inspectorate (SLI) official statistics on accidents (NG) is uncompleted; Real A=20 times more ~ 40 thousand a year, most aren’t investigated, victims don’t receive compensations •

Solution

- employees involvement in LP monitoring, electing trustees(T) • The EU experience – trustees(T)) are in 60 -70% of enterprises, In Latvia – less than 10% of enterprises •

Problem

– the employers’ view of trustee = another controller • To explain both sides of trustees (T)activities: = also in interests of employers’ (E) : employees’ supervision, accidents( A) prevention ,helping young people to start working etc.

Activities of trade unions in improving LP

•Trade unions (TU) and trustees activities in order to prevent rapid decrease in the level of labour protection in the workplace during the crisis •To organise electing the trustees and systematic

informative/instructive, methodological and learning process

; •Public control of observation of state LP normative acts in enterprises •development and realization of the part of the collective agreement “Safe and healthy working conditions”’ ; •

To control the evaluation of risk factors and unhealthy conditions prevention

•Prevent A concealment and failure to investigate; •Regular cooperation and social dialogue with employers and specialists; •- summarize and submit employees’ proposals to employers

for improving the system of LP and work environment of enterprise

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To control their realization

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Development of employment and labour market

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Work done so far

• In 2009 LBAS began to participate in international project BSLN ("Baltic Sea Labour Network”).The main goal of the project was to form sustainable and competitive labour market in The Baltic Sea region. In the frames of the project LBAS in cooperation with LEC in the regions of Latvia organised several social dialogue forums entitled „Development and strengthening of social dialogue – the basis for regional social and economical development ”.

• In March,2010 as the result of collaboration between LBAS and LEC „Sustainability index” of enterprises began operating in Latvia. „ Sustainability index” is strategic management tool, based on internationally recognized methodology to help the enterprises of Latvia to diagnose its sustainability of operation and the level of cooperative responsibility. At the same time it gives objective criteria to society ,state and NGOs in order to praise and support such enterprises which help to strengthen Latvia ‘s economy in long period of time.

• LBAS regularly maintains the discussions and raises the issues on employment issues with political parties, CM (Cabinet of Ministers), ministries, national and foreign partners, its affiliates.

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Proposals for the future

• To achieve the increase of labour productivity the working conditions of employees and technical equipment has to be improved by employers • To continue collaboration with the rest of Baltic Sea region countries, in order to make sustainable and competitive labour market in the region • To take part in the process of improvement of higher and vocational education quality achieving its conformity with labour market requirements • To continue to popularize “Sustainability index “ involving new enterprises all the time

Involvement in educational processes

Vocational education quality and efficiency improvement

LBAS regularly participates in development and evaluation of various laws and regulations, Tripartite Cooperation Councils( NTSP, PINTSA, NEP) and projects 'realization supporting the improvement of the quality and prestige of vocational education.

In 2011LBAS together with its member organizations began participating in ESF project implementation where occupational standards and vocational initial educational content are revised, modular approach is introduced ,information about evaluation of acquired skills gained in the process of non-formal education is disseminated Since the mid of 2011representatives of LBAS member organizations and trade unions act in experts’ councils, where branch educational issues are viewed. .

Proposals for the future

To increase sectoral affiliates’ and trade union involvement and responsibility for the educational and skills issues.

Involvement in educational processes

Recognition of professional skills acquired out of formal educational system

Since the beginning of 2011 in Latvia like in the other countries, it is possible to prove one’s experience and to pass professional qualification exam and obtain the document confirming qualification without learning at school,.

In 2005 LBAS took part in development of the methodology of recognition informal education and evaluating and later – in discussing it. On the basis of this methodology CM (Cabinet of Ministers) regulations were worked out and confirmed on 22 February 2011, this opportunity was given to people

Proposals for the future

Ensure that LBAS branch consultants educate branch trade organizations about assessment capabilities of professional skills gained out of formal educational system To promote trade unions and its member involvement in confirming qualification

European Social Fund project

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Practical application of labour relations and work safety normative acts in branches and enterprises”

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The goal of the project - To improve working conditions and to promote workers’ rights in every working place in accordance with rights at work standards.

Project implementation “pros”

Increases employees’ and potential employees awareness and knowledge about rights at work and labour protection issues • legal relations standards, work safety and professional health requirements in a workplace Promotes reducing of the number of violation of work legal relations and accidents Promotes development of socially responsible business environment, growth of labour market quality improvement Promotes collaboration between state and private sectors Enhances authority and image of Free Trade Union Confederation of Latvia in society

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European Social Fund Project

Strenghtening administrative capacity of FreeTrade Union Confederation ”

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The goal of the project - Promote the development of social dialogue at the regional level, as well as strengthen the possibilities of Free Trade Union Confederation of Latvia (LBAS) as a social partner to take part in developing and carrying out action- politicy at the state and regional level

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Project implementation “pros”

Development of regional social dialogue and trade union members understanding and awareness of the levels of social dialogue, its forming at the enterprise, national and regional level Improvement of trade union members ‘ knowledge and awareness of actualities and socio- economic issues Increased trade union members’ knowledge about existing normative legislation and policy documents in Latvia and the EU Studied , positively evaluated and made known collaboration partners of LBAS and its member organizations Improved society’s awareness of advantages of trade unions and collective agreement , as well as employees are motivated to defend their rights by joining professional organizations Enhances authority and image of Free Trade Union Confederation of Latvia in society

International activity

• Active participation in European social partners’ working programmes and framework agreements implementation, International Trade Union Confederation (ITUC), European Trade Union Confederation (ETUC) and Pan -European regional Council (PERC) working groups and committees.

•To expand international cooperation by strengthening already existing collaboration models with the Baltic and Nordic trade unions (e.g.LO Sweden), by making friendly and useful relationships with new partners (e.g.LO-Norway) and EU eastern neighbours (FNPR, Russia and CNSM, Moldova).

• Efficient collaboration with LO-Norway, whose solidarity fund has given a chance to trade unions activists and specialists to apply for grants repeatedly used for acquiring foreign languages • Experience in two ETUC congresses (in 2007 and 2011), in ITUC 2nd word trade union congress in 2010 and in PERC foundation assembly and ETUC Mid-term conference in 2009.

Problems in implementing effective international activity

• Insufficient information from member organizations about their international activities. •LBAS international commission is not established, where representatives of member organizations could summarize branch current events about trade union position regarding application of EU legislation and its normative acts, expressing European and world trade union opinions at national level, as well as providing translation of international documents • in member organizations there is a lack of specialists with good knowledge of foreign languages in order to prepare fast answers and opinions about various important issues. • lack of financial and human resources to take part in important international conferences and seminars. • lack of member organisations’ vigorous action to organize protest campaigns and other kinds of campaigns to support activities of international trade unions both at the national and international level.

Further activities

• To continue and strengthen cooperation with EU Member states, especially with the Nordic and the Baltic States trade unions, regular exchange of current information in order to better manage situation and agree on common goals and actions to defend working people interests and rights •Develop new models of cooperation and strengthen existing ones with Russia and other EU Eastern partnership member organizations.

•Strengthen international solidarity, actively engaging in trade union events (solidarity campaigns, petitions, actions , euro-demonstrations etc.).

•Active use of given possibilities by LO-Norway Solidarity fund as well as taking part in proposed projects by trade unions.

•Regularly participate in ITUC Human and trade union rights network, informing leading international institutions about situation in Latvia in order to effectively prepare for sessions of International Labour Organization, as well as to gain practical experience in preparing documents according to specified procedures.

Challenges • • • • • • • membership decreases, poor youth involvement in activities of organization lack of uniformity of organizational structure lack of solidarity financial discipline disregard lack of leaders and ageing problem lack of serious teaching and scientific basis fragile link among LBAS, branches, regions and professional organisations

What to do?

• work out common strategy of recruiting new members for all member organizations • enable activity among youth using more given possibilities of new technology • restore the work on the new version of the law “On the Trade Union”, submit proposals for democratization of “Law on strikes” , to achieve the public benefit status to trade unions.

• Activate the expressing of trade unions view in mass media, greater use of positive working experience of affiliated trade unions • Promote social dialogue and strengthen conclusion of collective agreements in enterprises and institutions.

• More active participation in social-political processes in order to extend the cooperation with non-governmental organizations and political parties. • Promote the consolidation of the activity of member organizations – common point of view, common campaigns, effective requirements and thought-out strategy to realize them