Estonia
Background information on industrial relations in Estonia
- 17 Dec 2009
Estonia: Healthcare workers protest against cuts in spendingIn October 2009, two trade unions representing healthcare workers held a small demonstration in protest against government plans to cut healthcare spending. The cuts will prolong hospital waiting lists and reduce the salaries of doctors and healthcare workers. The trade unions argue that this will cause another wave of migration of healthcare workers to other countries; however, the employers have approved of the proposal.
- 02 Dec 2009
Estonia: Unions fear new regulations may lead to redundancy cover-upsSince July 2009, the new labour law has introduced changes in the regulation of redundancies. The Estonian Trade Union Confederation fears that problems may emerge as the new regulation could lead to redundancy cover-ups, while the Estonian Unemployment Insurance Fund does not believe that this is a major issue within the framework of the new act. However, problems may arise regarding whether employees and employers are well informed of their rights and obligations.
- 10 Nov 2009
Estonia: New national action plan to tackle economic crisisThe Ministry of Social Affairs in cooperation with the Estonian Unemployment Insurance Fund has introduced a new national action plan for 2009–2010 to tackle the economic crisis. The aims of the plan are to reduce unemployment and support the creation of new jobs. About €45 million will be directed to the employment programme, which should help to create over 5,000 jobs and boost the economy. Employers have welcomed the plan but trade unions have expressed some concerns.
- 25 Sep 2009
Estonia: Unemployment insurance premiums to rise againOn 1 August 2009, unemployment insurance premiums in Estonia increased from 2% to 2.8% of wages for employees and from 1% to 1.4% of the payroll for employers. The increase was explained as being necessary for the Unemployment Insurance Fund to cover the growing expenses caused by the continuing economic recession and by new redundancy regulation that has raised unemployment levels and the number of benefit recipients.
- 22 Sep 2009
Estonia: Representativeness of the European social partner organisations: Steel industry – EstoniaThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the steel industry in Estonia. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 18 Sep 2009
Estonia: Estonia – Greening the European economy: responses and initiatives by Member States and social partnersSome policy initiatives could be pointed out to contribute to the greening of the economy in Estonia. Still, these actions are divided across different strategies and between different ministries and so a coherent approach is lacking. The issues of the green economy are not the primer concern on the social partners' agenda. The social partners have expressed their opinions on the matter to a limited extent and in many cases this has been explicit rather than directly referring to the issues of the green agenda. There have been no initiatives or targeted actions of social partners on these matters.
- 15 Sep 2009
Estonia: Estonia: Flexicurity and industrial relationsThe concept of flexicurity has gained ground recently with the modernisation of labour law in Estonia. However, there is no comprehensive approach by the social partners or the government addressing all four aspects of flexicurity at the same time. The issues of flexicurity are not included in collective bargaining; however some social partner initiatives to support implementation of the flexicurity approach may be pointed out.
- 10 Aug 2009
Estonia: New labour law enacted despite strike initiativeIn June 2009, Estonian trade unions held a strike involving about 1,800 people to protest against the new Employment Contracts Act, which took effect on 1 July 2009. The trade unions were opposing the last-minute changes that were introduced to the act just before it took effect, which they claim will reduce the balance between employment security and labour market flexibility. For the unions, this balance was the essential purpose of the new act.
- 29 Jul 2009
Estonia: Representativeness of the European social partner organisations: Tanning and leather sector – EstoniaThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the tanning and leather sector in Estonia. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 27 Jul 2009
Estonia: Recession leads to increase in individual labour dispute claimsAccording to the Labour Inspectorate, the number of labour dispute applications has doubled in Estonia compared with the first quarter in 2008. Most of the disputes are related to unpaid wages or benefits. From 1 July 2009, the number of disputes may increase even further as the financial limit of claims in the labour dispute committees will be increased, therefore making higher-paid workers more motivated to register individual labour dispute applications.
- 02 Jul 2009
Estonia: Estonia: Multinational companies and collective bargainingThe activities of multinational companies are not well recorded in Estonia. There is no statistical data on the number of such companies and their characteristics and also there is no information collected on the pay and working conditions in such companies. Some estimations and conclusion may be derived from other research and social partner standpoints which are reflected in the current national contribution.
- 15 Jun 2009
Estonia: Report reveals problems with extending collective agreementsA study on the practices of extending collective agreements, published in January 2009, highlights the problems arising from the national legislation and makes proposals to build a new bargaining system suitable for Estonia. The authors conclude that while the social partners should retain the main role in the collective agreements’ extension procedure, the criteria of representativeness, state control and legal protection of third parties should be introduced.
- 21 May 2009
Estonia: Tripartite agreement on measures to maintain jobsIn March 2009, representatives of several Estonian ministries, trade unions and employer organisations reached an agreement on principles for maintaining employment levels and helping more effectively people who are registered as unemployed. Several measures in the areas of lifelong learning, social security and flexible employment possibilities were proposed.
- 06 May 2009
Estonia: Estonia: Representativeness of the European social partner organisations – Personal services sector.The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the personal services sector in Estonia. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 30 Apr 2009
Estonia: Employers reject proposed work accidents and illness insurance schemeThe Ministry of Social Affairs and the Ministry of Finance have devised a plan for introducing an occupational accident and illness insurance system which would be based on private insurance and be obligatory for all employers. Trade unions have long highlighted the need to create such an insurance provision; however, employers have rejected the plan due to the increasing expenses that they would incur as a result of the new obligation.
- 28 Apr 2009
Estonia: Estonia: Wage flexibility and collective bargainingResearch results have indicated that in general different VPS are widespread in Estonia. However, there is not much evidence on manufacturing companies or retail banks in particular. Therefore, the following report concentrates on a number of case studies from both sectors. Also the VPS trends in the economy in general are briefly outlined.
- 28 Apr 2009
Estonia: Representativeness of the European social partner organisations: Hospitals – EstoniaThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the hospital sector in Estonia. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 14 Apr 2009
Estonia: Impact of global crisis on labour market and industrial relationsEstonia’s most recent economic and labour market indicators have revealed the impact of the global financial crisis. While the decline in gross domestic product has been the highest since 1995, the number of unemployed persons increased by 90% during 2008. The average wage increase has fallen to the 6.9% level of 2004, with pay cuts already apparent in the fishing and construction sectors. Such developments have affected trade union membership and collective bargaining.
- 14 Apr 2009
Estonia: Economic crisis halts increase in national minimum wageThe current economic downturn has led to the postponement of the national minimum wage agreement in Estonia. Trade unions argue that the minimum wage should be increased to be in line with inflation. However, employers emphasise that the difficult economic situation makes further increases in minimum wages problematic. The minimum wage increase poses a real challenge for some sectors of the economy and for certain occupational groups.
- 14 Apr 2009
Estonia: Debate over further cuts in state budget for 2009On 20 February 2009, the Estonian parliament approved an EEK 8 billion (about €511 million) cut in the state budget. Cuts of 7% in government operational expenditure – including public sector wages – and changes in the system of sickness cash benefits have received a critical response from the social partners. While trade unions are not satisfied with the cuts in public sector wages, employers oppose the large burden of sickness benefits put on them.
- 31 Mar 2009
Estonia: Estonia: Wage formationIn general, the situation in Estonia is characterised by rapid wage increases in the past years, with an average increase of 16% in 2006. Wage formation takes place mostly at company level with the exception of some sectors where sectoral level minimum wage agreements are valid (i.e. health care and transport). There is also a statutory national level minimum wage which is agreed by the social partners and established by the governmental decree. In 2007 the minimum wage stood at 32% of the national average wage.
- 24 Mar 2009
Estonia: Teachers to get minimum wage increase in 2009In December 2008, the Estonian Ministry of Education and Research and the Estonian Education Personnel Union signed a wage agreement for teachers, increasing teachers’ minimum wage by 8% in all qualification levels in 2009. The government plans to raise teachers’ wages to the level of the national average by 2011, although it still remains much lower for most teachers. However, the steady increase in wages to achieve this goal is questionable given the current economic downturn.
- 24 Mar 2009
Estonia: New law to change working conditions and institutional frameworkUnder the new Employment Contracts Act, several changes have been introduced to Estonia’s labour market, taking effect from 1 July 2009. These changes will mainly affect working conditions and the country’s institutional framework – in particular, working time, proprietary liability, lifelong learning, the administrative burden and labour market institutions. The new act is based on a tripartite agreement concluded in 2008.
- 09 Mar 2009
Estonia: The impact of the information and consultation directive on industrial relations — EstoniaThe information and consultation directive was transposed into Estonian legislation recently, therefore the subject has been high on the agenda lately. The Directive was transposed by adopting new legislation, the Employee Trustee Act which has caused severe disputes and long discussions between the social partners. At present it is too early to assess the impact of the new Act on industrial relations practice, however the social partners have expressed doubts whether the Act will have any real impact on the industrial relations on company level.
- 06 Feb 2009
Estonia: Estonia: Collective bargaining and continuous vocational trainingThe continuous vocational training (CVT) has become an increasingly relevant subject for the government and social partners with regard to the rapid economic growth and the implementation of the flexicurity approach. However, the framework of CVT is mostly defined by the respective legislation as the issue is usually not regulated in collective agreements. Still, the social partners have been active in devising and governance of the continuous vocational training system on national level.
- 04 Feb 2009
Estonia: New labour law to increase flexibilityEstonia’s new Employment Contracts Act will take effect from 1 July 2009, bringing about a number of significant changes in the country’s labour market. The legislation primarily aims to make the labour market more flexible and to increase the social security provisions of workers. Although the new act is based on a tripartite agreement, the consultation process has been subject to severe criticisms by the trade unions as well as several political parties.
- 13 Jan 2009
Estonia: Unemployment insurance premiums to riseFrom 1 July 2009, unemployment insurance premiums in Estonia will increase from 0.6% to 1% of wages for employees and from 0.3% to 0.5% of the payroll for employers. The increase is necessary due to two main reasons: firstly, to manage the current economic downturn and expected further increase in unemployment; and secondly, to manage the adoption of the new Employment Contracts Act, which will lead to increased social security expenses.