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Latvia

Background information on industrial relations in Latvia

• 26 Oct 2009
  Latvia: Healthcare sector hit by recessionary cutbacks

  One of the sectors particularly affected by budgetary cutbacks arising from the economic recession is Latvia’s healthcare sector. As well as a reduction in funding, the sector is also undergoing significant reorganisation, with large-scale job losses, reduced services and the merging of institutions. While the government believes that its cuts are justified, experts have accused the state of incompetence and of adopting a linear spending cuts policy.

• 26 Oct 2009
  Latvia: Trade union protests against education cuts and reforms

  In Latvia, the process of reducing the state budget deficit in 2009 concerns the education sector as part of the public sector. Figures from the budget expenditure show that spending on education in 2009 has been cut by 25% compared with 2008. The decrease in spending necessitates essential structural reforms in the education sector, including the implementation of another financing model, a cut in teachers’ wages and the closing of schools.

• 22 Sep 2009
  Latvia: Representativeness of the European social partner organisations: Steel industry – Latvia

  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 steel industry in Latvia. 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
  Latvia: Latvia – Greening the European economy: responses and initiatives by Member States and social partners

  Green issues have neither been widely discussed nor considered significant in Latvia. Although there is a specific ministry (the Ministry of Environment) dealing with environmental protection in Latvia, green issues to a large extent are neglected in both public administration and in the academic area. Green issues are no important topics in the dialog between social partners either. The papers on green issues mostly deal with the following areas of environmental protection: climate control, diminishing of emissions and waste recovery.

• 15 Sep 2009
  Latvia: Latvia: Flexicurity and industrial relations

  Official debate on implementation of the flexicurity approach started in 2005, when Latvian government adopted the National Lisbon program 2005-2008. In May 2006, the government published Informative report on proposals necessary to ensure flexibility and security in legal labour relations. This report set forth nine directions of actions aimed at better implementation of flexicurity approach. It is assumed that main preconditions of flexicurity approach are established in labour legislation, but implementation of this legislation and information of employers and employees must be improved. The role of social partners in implementation of flexicurity principle is strongly emphasized.

• 12 Aug 2009
  Latvia: Wide-scale cuts in salaries and social benefits

  After long discussions between the Latvian government and social partners, a number of new regulations concerning the amount of salaries, pensions and social benefits have come into effect. The tax free allowance has been reduced, together with pensions and expenditure on social benefits. The amendments are expected to lead to significant social consequences, with a decline in purchasing power, poorer working conditions and a slowdown in the national economy.

• 05 Aug 2009
  Latvia: Latvian parliament passes amendments to 2009 state budget

  On 16 June 2009, the Latvian parliament passed emergency amendments to the 2009 state budget. The amendments envisage considerable decreases in expenses in important socioeconomic sectors, including education, health and security. Moreover, the changes affect the social arena, with reductions in pension expenses and social benefits. On 18 June, the Free Trade Union Confederation of Latvia organised a demonstration protesting against these amendments.

• 29 Jul 2009
  Latvia: Representativeness of the European social partner organisations: Tanning and leather sector – Latvia

  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 tanning and leather sector in Latvia. 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.

• 28 Jul 2009
  Latvia: Changes in state support policy for families with children

  Amendments to the Law on Maternity and Sickness Insurance were due to come into force on 1 July 2009. They stipulate that only one parent, who does not work, is entitled to receive parental benefit during the childcare period. They also reduce state family benefit, calculating the amount for each child aged one to 15 years. To receive financial support from international institutions, the budget deficit in Latvia in 2009 should not exceed that defined by the Maastricht criteria.

• 13 Jul 2009
  Latvia: Decline in economic growth and rise in unemployment

  Economic growth has declined significantly during the past two quarters in Latvia. Real gross domestic product fell by 4.6% in 2008; during the first quarter of 2009, it fell by 18% compared with the first quarter of 2008. The decrease in economic growth is accompanied by an increase in unemployment and a risk of deepening social polarisation. In April 2009, the number of people receiving unemployment benefit doubled compared with the previous year. The average unemployment benefit was increased in April 2009.

• 02 Jul 2009
  Latvia: Latvia: Multinational companies and collective bargaining

  MNCs are important employers in manufacturing and service sectors. There is no evidence that MNCs consider collective bargaining in their Latvian undertakings important or have implications for collective bargaining in Latvia. MNCs do not press for changes in national collective bargaining systems. Also the agenda and outcomes of local negotiations are not influenced by cross-border comparisons of costs and performance. Impacts on these two issues are not topical for MNCs because conditions set forth by collective agreements in Latvia are more favourable for employers than in their home countries. Cross-national restructuring has not become an increasingly prominent focus for negotiations.

• 29 Jun 2009
  Latvia: Healthcare workers reject recessionary cutbacks

  The Latvian Health and Social Care Workers’ Trade Union has remained active through the economic downturn. It arranged a one-day strike among healthcare workers on 26 September 2008, a two-day strike on 30–31 October 2008 and warned the government in January 2009 of the health risks of further budget cuts. Although the industrial action did not lead to direct results, the National Tripartite Cooperation Council has endorsed the trade union’s position.

• 28 Apr 2009
  Latvia: Latvia: Wage flexibility and collective bargaining

  In 2004-2007, average net monthly wages and salaries have almost doubled. Real wages have grown by 9.7% in 2005, by 15.6% in 2006 and by more that 20% in 2007. Wages are an important issue in collective bargaining. However, the fastest growth of wages and salaries is to be found in sectors, where collective bargaining is weak (construction) or does not exist (banking, real estate). It is expected that wage growth will slow down in coming years. The importance of flexible wage systems increases. Variable pay is applied at individual, team and organisations’ levels. VPS change towards more focus on results and individualisation.

• 28 Apr 2009
  Latvia: Representativeness of the European social partner organisations: Hospitals – Latvia

  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 hospital sector in Latvia. 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.

• 31 Mar 2009
  Latvia: Latvia: Wage formation

  General principles of wage formation and wage systems are underpinned by labour legislation. The main actors in wage formation are employers and employees. Wage formation principles and pay in particular are described in the employment contract. Collective bargaining plays role at company level in undertakings where trade unions are established. Only some sector level collective agreements are concluded. National minimum wages are decided by the Cabinet of Ministers. The level of the national minimum wage is the main issue of the national level social dialogue. Labour market plays an important role in wage formation. Currently the wage trends are changing from fast growth to moderate growth.

• 24 Mar 2009
  Latvia: Social partners agree state budget for 2009

  At the National Tripartite Cooperation Council meeting in August 2008, the social partners began discussions on the state budget 2009. The government presented a draft budget and its economic justification. At subsequent meetings, debate continued on the budget. Employers demanded increased effectiveness of the state budget expenses, pointing out unnecessary spending. Trade unions strongly rejected a public sector wage freeze and organised several protests.

• 09 Mar 2009
  Latvia: Latvia: The impact of the information and consultation Directive

  The main principles of the EU information and consultation Directive were implemented in general terms in labour legislation adopted in Latvia in 2001, with additional rules adopted through amendments in 2004. Implementation caused little debate or controversy among the social partners. In practice, however, information and consultation often does not occur as stipulated by the law, because of low levels of employee representation through trade unions or other channels, and a widespread failure to observe labour legislation.

• 06 Feb 2009
  Latvia: Latvia: Collective bargaining and continuous vocational training

  National and sector level social dialogue has important role in development of continuous vocational training (CVT). Social partners participate in elaboration of development strategies of vocational education (planning of study directions, establishing of profession standards and study programs) and life-long learning. Legal rights of social partners regarding CVT are established in the law On vocational education and Concept of life-long learning. Collective bargaining is active mostly at sector and company level. It does not have impact on CVT at the policy making and legislation levels. However, CVT related items are usually included in collective agreements thus contributing to its implementation.