Latvia: Representativeness of the European social partner organisations in the electricity sector

  • Observatory: EurWORK
  • Topic:
  • Agreements,
  • Collective bargaining,
  • Social partners,
  • Participation at work,
  • Arbejdsmarkedsrelationer,
  • Published on: 22 januar 2014



About
Country:
Latvia
Author:
Institution:

In 2010, the electricity, gas, steam and air conditioning industry accounted for 3.8% of Latvia’s GDP. Electricity production, transmission, distribution and trade provided for 15% of industrial production and 8% of all employment in the industry sector. Since 1990, electricity consumption has fallen by 47%, production by 34%, imports by 44% and exports by 22%. Social dialogue is active in the sector. The trade union Energija has concluded a sector-level collective agreement with the main employers: Latvenergo group, and ABB. Larger employers represent themselves individually or through the Latvian Association of Power Engineers and Energy Constructors.

Sectoral properties

Economic background

Sectoral coverage

This representativeness study covers companies and employees in the electricity sector, as defined by NACE Rev. 2 code 35.1:

35.1 Electric power generation, transmission and distribution

35.11 Production of electricity

35.12 Transmission of electricity

35.13 Distribution of electricity

35.14 Trade of electricity

In 2010, electricity, gas, steam and air conditioning activities accounted for 3.8% of Latvia’s total GDP. Electricity production, transmission, distribution and trade provided for 15% of the industrial production and 8% of all employment in the industry sector.

Since the beginning of the 1990s electricity consumption has fallen by 47%, production by 34%, imports by 44% and exports by 22%. In 2000, consumption started to increase, but the crisis brought it down again to an all time low. Production slightly increased in 2011, however other elements of the sector are in constant decline.

Consumption is met equally by production and imports. Most electricity is produced by hydro-electric stations and wind stations. Part of this is exported in peak production periods, such as spring when there is a lot of rain. Part of this energy is used to produce heat in cogeneration stations that also produce electricity. In the transformation sector the major contributors are cogeneration stations of general use.

Latvenergo group is the main producer of electrical energy. The group includes parent company JSC Latvenergo and six subsidiaries. Latvenergo itself has capital shares in two associated enterprises, of which one is a closed pension fund.

Development of sectoral employment and companies

Table 1: Sectoral properties
 

2005

2011

Number of companies in the sector (including one-person companies and self-employed)

154

258

Comment

-

-

Source of company data

Statistical survey and administrative data from State Revenue Service

Statistical survey and administrative data from State Revenue Service

Aggregate employment

6,769

5,271

Male employment

Not available

Not available

Female employment

Not available

Not available

Share of sectoral employment as a % of total employment in the economy

1%

1%

Source of employment figures

Statistical survey and administrative data from State Revenue Service

Statistical survey and administrative data from State Revenue Service

Comment

Statistical survey and administrative data from State Revenue Service

Statistical survey and administrative data from State Revenue Service

Aggregate employees

6,768

5,251

Male employees

Not available

Not available

Female employees

Not available

Not available

Share of sectoral employees as a % of total employees in the economy

1%

1%

Source of employee figures

Statistical survey and administrative data from State Revenue Service

Statistical survey and administrative data from State Revenue Service

Comment

-

-

2. Overview of the industrial relations landscape in the sector

In social dialogue employees are represented by the trade union Energija (LAB Enerģija). Small companies do not have trade unions.

Employers are represented by four large companies (three constituents of the Latvenergo Group (JSC Latvijas elektriskie tīkli, being members of the national level employers’ organisation Latvian Employers’ Confederation (LDDK), and JSC Sadales tīkli), by independent company JSC Augstsprieguma tīkls; and by the Latvian Association of Power Engineers and Energy Constructors (LEEA).

Small companies are represented by many associations:

  • Latvian wind energy association (VEA);
  • Small hydro energy association (MHEA);
  • Latvian biogas association (LBA);
  • Latvian thermogasification association (Latvijas Termogazifikācijas asociācija);
  • Latvian biomass association LATbio (LATbio);
  • Several other less active organisations include:
  • Latvian National Geothermal association (LNGA);
  • Solar Energy association (SEA).
  • There are two more public organisations, dealing with more general energy issues:
  • National Energy Confederation (Nacionālā enerģētikas konfederācija);
  • International association ENERĢIJA (ENERĢIJA).

The National Energy Confederation unites smaller associations and represents the energy sector in negotiations with the government. None of the small employers associations is a member of LDDK, nor has the status of employers’ organisation as set by law.

Consultation takes place at all levels; national, sector-level, and at the initiative of individual companies.

3. The sector’s trade unions and employers associations

This report includes detailed information on the following trade unions and employer associations:

(i) trade unions (or employees’ interest organisations) and employer organisations (or business associations) which are affiliated to the sector-related European Union Federation(s) or the sector-related European Employer/Business Federation(s) and represent members in the sector

The sector-related European employee organisations are:

  • IndustriAll Europa;
  • European Federation of Public Service Unions (EPSU).

The sector-related European employer organisations are:

  • The union of the electricity industry (EURELECTRIC).

(ii) trade unions and employer organisations which are party to sector-related collective bargaining and represent members in the sector.

This report does not include detailed information on the following organisations, because they fall outside the remit of the study:

iii) Affiliates to EU-level sectoral social partners, but without members in the sector. These are the affiliates of EPSU and IndustriAll Europa that have members in other sectors but not in the electricity sector. Use these weblinks for a full list of the IndustriAll affiliates and EPSU affiliates.

iv) Organisations which are involved in sector-related collective bargaining, but do not represent members in the sector.

v) Organisations which represent members in the sector, but are not involved in sector-related collective bargaining, and are not members of EU-level sectoral social-partner organisations.

3a. Please list all the organisations which can be related to the study in the following overview table

Table 2: Overview of industrial relations landscape

Organisation abbreviation

Sector related (members in the sector)

Member of a sector-related European organisation

Involved in sector related CB

Fact-sheet included

Source of information

LAB Enerģija

Yes

Yes

Yes

Yes

Contact made with Chair of LAB Enerģija Jevgenija Stalidzane

Internet source: http://www.energija.lv

LAKRS

No

Yes

No

Yes

Contact made with Chair of LAKRS Juris Kalniņš

Internet source: http://www.lakrs.lv

LIA

No

Yes

No

Yes

Contact made with secretary of LIA

Internet source: http://www.lbas.lv

LLTUE

?

Yes

?

?

 

The annex at the end of this questionnaire provides the list of all the organisations which are members of the sector-related European organisations, broken down by country.

4. Collective bargaining in the electricity sector

4.1. Are employees in the sector as defined in Section 1 above and in Table 1 covered by collective bargaining?

Employees in the sector are not covered by collective bargaining in the sense that a trade union concludes a general agreement with an employers’ organisation. However, LAB Enerģija has concluded a united collective agreement with companies of the Latvenergo group (one agreement signed by each company of the Latvenergo group) and some other larger companies (for instance, ABB).

Collective agreements are established at company level (parties to the agreement are employer and company-level trade union organisations). LAB Enerģija seeks opportunities to include small electricity companies in the company, but these do not have trade unions.

4.2. If yes, please consider the five main relevant* collective agreements (single-employer and multi-employer agreements) valid in 2012 in the electricity sector and indicate their levels, the name of the agreements, respective coverage in terms of sectors/activities, the bargaining parties to the agreement and the numbers of employees covered within the electricity sector (also estimate):

Table 3: The five main relevant* collective agreements (single-employer and multi-employer agreements) valid in 2012

Level

Common name

Sectoral coverage

No. of employees covered within the electricity sector

Bargaining parties

Employer(s)

(in case of single-employer agreements) or

Employer organisation(s)

(in case of multi-employer agreements)

Trade union(s)

Multi-employer agreements:

Sectoral

General agreement in the electricity sector

Energy production, transmission, distribution and trade, production of electricity equipment

4434

Companies of Latvenergo group:

JSC Latvenergo, JSC Sadales tīkls, JSC Latvijas elektriskie tīkli; and outside concern: JSC Augstsprieguma tīkli, JSC ABB

Trade Union Energija,

LAB Enerģija

* Relevance is measured in terms of employees covered.

5. The system of collective bargaining

5.1. Estimate the sector’s rate of collective bargaining coverage (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector).

45%

5.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered.

No data supplied.

5.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer association/s?

The extension of sectoral (general) agreements is regulated by the Labour Law (Section 18, Part 3 – 4):

A general agreement entered into by an organisation of employers or an association of organisations of employers shall be binding on members of the organisation or the association of organisations. If members of an organisation of employers or an association of organisations of employers employ more than 50% of the employees or provide more than 60% of the turnover in a sector, a general agreement shall be binding on all employers of the relevant sector and shall apply to all employees employed by the employers. With respect to such employers and employees, the general agreement shall come into effect on the day of its publication in the newspaper Latvijas Vēstnesis [the official Gazette of the Government of Latvia] unless the agreement specifies another time for coming into effect. The parties shall publish the general agreement in the newspaper Latvijas Vēstnesis on the basis of a joint application.

In the electricity sector the general agreement is not concluded with the employers’ organisation and therefore the current agreement is binding on enterprises that have signed the agreement. However, LAB Enerģija has started negotiations with the employers’ organisation and, potentially, the described norm may be applied.

5.2.2. If there is a practice of extending collective agreements targeting employers, is this practice pervasive or rather limited and exceptional?

Extending collective agreements targeting employers is envisaged by law and therefore should be pervasive.

Section 20 of the Latvian Labour Law, on the effect of a collective agreement on workers, establishes that

a collective agreement shall be binding on the parties and its provisions shall apply to all employees who are employed by the relevant employer or in a relevant undertaking of the employer, unless provided for otherwise in the collective agreement. It shall be of no consequence whether employment legal relationships with the employee were established prior to, or after, the coming into effect of the collective agreement. An employee and an employer may derogate from the provisions of a collective agreement only if the relevant provisions of the employment contract are more favourable to the employee.

6. Formulation and implementation of sector-specific public policies

6.1. Do tripartite bodies dealing with sector-specific issues exist? If yes, please indicate their domain of activity (for instance, health and safety, equal opportunities, labour market, social security and pensions etc.), their origin (agreement/statutory) and the interest organisations having representatives in them:

Table 4: Sector-specific public policies*

Name of the body and scope of activity

Bipartite/tripartite

Origin: agreement/statutory

Trade unions having representatives (reps)

Employer associations having reps

National level body for consultations on economic development and energy policy issues – the Energetic Committee with the Council of National Economy of the Ministry of Economics.

Multipartite (the Committee is formed from representatives from different parties (trade unions, business, education, science, local governments)

Statutory

The Free Trade Union Confederation of Latvia (LBAS), LAB Enerģija

LDDK, the Latvian Chamber of Commerce and Industry (LTRK)

National Tripartite Cooperation Council (NTSP)

The sector is represented by LBAS and LDDK

Tripartite

Statutory

LBAS

LDDK, LTRK

* Sector-specific policies specifically target and affect the sector under consideration.

7. Data on the trade unions

LAB Enerģija
Trade Union ‘Enerģija’
Latvijas arodbiedrība ‘Enerģija’

The union’s domain

 

According to its domain, does the union potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above?

Yes

According to its domain, does the union potentially cover all occupations within the electricity sector among both blue-collar workers and white-collar workers?

Yes

According to its domain, does the union potentially cover, within the electricity sector, all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc. – of course, only insofar as they exist in the sector)?

Yes

According to its domain, does the union potentially cover all regions of your country?

Yes

According to its domain, does the union potentially cover employees outside the electricity sector?

Yes

General information on the union

 

Is the union engaged in sector-related collective bargaining?

Yes

If yes, what form of collective bargaining?

Multi-employer bargaining (sector, regional bargaining)

How many employees are covered by the collective agreement/s signed by the union within the electricity sector (including those covered via extension mechanisms)?

4,434 (2013)

Please indicate the type of membership

Voluntary

Is the union being consulted by the authorities in sector-related matters?

Yes

How often do sector-related consultations involve the union?

On a regular basis

Members

 

How many active members in employment does the union have in total (i.e. within the electricity sector and beyond)?

3,394 (2011, members who have paid membership fees, considered as ‘active members’)

How many active members in employment does the union have within the electricity sector only?

Data on members in electricity sector only is not available

Does the union have members in the largest electricity companies?

Yes

Affiliations

 

To which international organisations is the union affiliated?

PSI (Public Services International),

To which European-level organisations is the union affiliated?

EPSU (European Federation of Public Services Union)

EMCEF (European Mine, Chemical and Energy Workers` Federation)

Is not a member of IndustriAll

To which national-level organisations is the union affiliated?

LBAS

Source of information

Jevgenija Stalidzane, Chair of trade union, contacted on 4 march 2013.

Website: http://www.energija.lv

EIRO national correspondent: Raita Karnite

LAKRS
Latvian Trade Union of Public Service and Transport Workers LAKRS
Latvijas Sabiedrisko pakalpojumu un transporta darbinieku arodbiedrība LAKRS

The union’s domain

 

According to its domain, does the union potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above?

No

LAKRS does not have members in the electricity sector

According to its domain, does the union potentially cover all occupations within the electricity sector among both blue-collar workers and white-collar workers?

Info not available

According to its domain, does the union potentially cover, within the electricity sector, all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc. – of course, only insofar as they exist in the sector)?

Info not available

According to its domain, does the union potentially cover all regions of your country?

Info not available

According to its domain, does the union potentially cover employees outside the electricity sector?

Info not available

General information on the union

 

Is the union engaged in sector-related collective bargaining?

Info not available

If yes, what form of collective bargaining?

Info not available

How many employees are covered by the collective agreement/s signed by the union within the electricity sector (including those covered via extension mechanisms)?

 

Please indicate the type of membership

Info not available

Is the union being consulted by the authorities in sector-related matters?

Info not available

How often do sector-related consultations involve the union?

Info not available

Members

 

How many active members in employment does the union have in total (i.e. within the electricity sector and beyond)?

Info not available

How many active members in employment does the union have within the electricity sector only?

Info not available

Does the union have members in the largest electricity companies?

Info not available

Affiliations

 

To which international organisations is the union affiliated?

Info not available

To which European-level organisations is the union affiliated?

Info not available

To which national-level organisations is the union affiliated?

Info not available

Source of information

Chair Juris Kalniņš, contacted 5 March 2013.

Website: http://www.lakrs.lv

EIRO national correspondent: Raita Karnite

LIA

Latvian Industrial workers trade union

Latvijas Industriālo Nozaru arodbiedrība

The union’s domain

 

According to its domain, does the union potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above?

No

LIA does not have members in the electricity sector

According to its domain, does the union potentially cover all occupations within the electricity sector among both blue-collar workers and white-collar workers?

 

According to its domain, does the union potentially cover, within the electricity sector, all forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc. – of course, only insofar as they exist in the sector)?

 

According to its domain, does the union potentially cover all regions of your country?

 

According to its domain, does the union potentially cover employees outside the electricity sector?

 

General information on the union

 

Is the union engaged in sector-related collective bargaining?

Info not available

If yes, what form of collective bargaining?

Info not available

How many employees are covered by the collective agreement/s signed by the union within the electricity sector (including those covered via extension mechanisms)?

 

Please indicate the type of membership

Info not available

Is the union being consulted by the authorities in sector-related matters?

Info not available

How often do sector-related consultations involve the union?

Info not available

Members

 

How many active members in employment does the union have in total (i.e. within the electricity sector and beyond)?

 

How many active members in employment does the union have within the electricity sector only?

 

Does the union have members in the largest electricity companies?

 

Affiliations

 

To which international organisations is the union affiliated?

 

To which European-level organisations is the union affiliated?

 

To which national-level organisations is the union affiliated?

 

Source of information

Trade union: secretary of LIA, phone 67272185

Web-site: http://www.lbas.lv

EIRO national correspondent: Raita Karnite

8. Data on the employer associations

LEEA
Latvian Association of Power Engineers and Energy Constructors
Latvijas Elektroenerģētiķu un Energobūvnieku Asociācija

The employer organisation’s domain

 

According to its domain, does the employer organisation potentially cover the entire electricity sector, including all of the sub-activities as a whole, as listed above?

Yes

According to its domain, does the employer organisation potentially cover, within the electricity sector, all (legal) forms and size classes of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies, SMEs, etc.) (of course, only insofar as they exist in the sector)?

Yes

According to its domain, does the employer organisation potentially cover companies, within the electricity sector, in all regions of your country?

Yes

According to its domain, does the employer organisation potentially cover companies and/or business activities outside the electricity sector?

Yes

Includes producers of electric equipment (ARCUS ELEKTRONIKA, JSC Jauda), companies from construction sector (Skonto būve), education.

General information on the organisation

 

Is the employer organisation engaged in sector-related collective bargaining?

No

If yes, what form of collective bargaining?

Not relevant.

How many companies are covered by the collective agreement/s signed by the employer organisation within the electricity sector (including those covered via extension mechanisms)?

Sector level agreement does not exist; data on company level coverage is not available.

How many employees are covered by the sector-related collective agreement/s signed by the employer organisation within the electricity sector (including those covered via extension mechanisms)?

Sector level agreement does not exist; data on company level coverage is not available.

Please indicate the type of membership

Voluntary

.

Is the employer organisation being consulted by the authorities in sector-related matters?

Yes

How often do sector-related consultations involve the employer organisation?

On a regular basis

Members

 

How many member companies does the employer organisation have in total (i.e. within the electricity sector and beyond)?

50 (2013)

How many employees work in these member companies in total (i.e. within the electricity sector and beyond)?

Data is not available (estimate: fewer than 10,000 people)

How many member companies does the employer organisation have within the electricity sector only?

Latvenergo group and several small enterprises

(2013)

How many employees work in these member companies within the electricity sector only?

Data is not available

Are the largest electricity companies affiliated to this employer organisation?

Yes

Affiliations

 

To which international organisations is the employer organisation affiliated?

World Energy Council Latvian National committee

To which European-level organisations is the employer organisation affiliated?

EURELECTRIC

To which national-level organisations is the employer organisation affiliated?

LDDK

Source of information

Kārlis Briņķis, Executive Director

Website: http://www.bleea.lv

EIRO national correspondent: Raita Karnite

9. Inter-associational relationships

9.1 Inter-union relationships

9.1.1 Please list all trade unions covered by this study whose domains overlap within the sector.

None.

9.1.2 Do rivalries and competition exist among the trade unions within the sector, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

No.

9.1.3 If yes, are certain trade unions excluded from these rights?

Not relevant.

9.2 Inter-employer association relationships

9.2.1 Please list all employer associations covered by this study whose domains overlap within the sector.

None.

9.2.2 Do rivalries and competition exist among the employer associations within the sector, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

No.

9.2.3 If yes, are certain employer associations excluded from these rights?

Not relevant.

9.2.4 Are there large companies or employer associations within the sector which refuse to recognise the trade unions and refuse to enter collective bargaining?

Not known.

9. Commentary

Enterprises that have been established on the basis of former state enterprise Latvenergo (currently constituents of Latvenergo group or independent electricity sector enterprises) are sufficiently represented by trade unions and have strong trade union traditions. LAB Enerģija conducts its core negotiations with Latvenergo, but also expands its activities to sectors that are connected with electricity production, such as producers of energy equipment, or construction. It tried unsuccessfully to negotiate with employers’ organisation LEEA. This failed mainly because smaller members of this organisation as a rule do not have trade unions, while large enterprises from electricity sectors and related sectors have a unified collective agreement with trade union. Small electricity enterprises usually have few employees, do not have trade unions and are not represented in the social dialogue.

Raita Karnite, EPC, Ltd.

Annex 1. Organisations which are members of the sector-related European organisations

  EPSU IndustriAll EURELECTRIC
AT

GDG, VERDI

PRO-GE

Österreichs E-Wirtschaft 

BE

CSC, CSC - Services Publics, SLFP,

CGSP ACOD,

CGSP-P, CGSP-G

GAZELCO Distrigas,

CG-FGTB,

CGSP-ACOD Gazelco,

CGSP Admi

ACV/CSC BIE,

LBC-NVK,

SETCA-BBTK

FEBEG,

SYNERGRID asbl

BG

NSFEB,

FEW-Podkrepa,

PK Services,

FCIW-PODK,

NDWU, VODOSNABDITEL,

FITUGO,

FCIW-PODKREPA

NF Energy - CL Podkrepa,

NFE,

NEWF Podkrepa

 Bulgarian Electric Power Association

CY

FSGEC, PASYDY

FPUEAE

Electricity Authority of Cyprus

CZ

OS UNIOS,

Public Services International,

OS ECHO,

OS DLV, RWE

OS ECHO

CSZE

DE

VERDI

IG BCE

BDEW

DK

3F workers union,

DM, PEU, FOA,

DK Funktionærforbund,

DEF,

CO Industri

 Dansk Energi

EE

AEEWTU

AEEWTU - EEAÜL

The Union of Electricity Industry of Estonia

ES

FITAG-UGT,

AGBAR,

FSAP-CCOO,

FSP UGT

FITAG-UGT,

FITEQA-CC.OO,

ELA-HAINBAT,

FI CC.OO,

UNESA

FI

JYTY, JHL, UNION of SALARIED EMPLOYEES,

PARDIA,

SÄHKÖLIITTO,

UIL (INSINÖÖRILIITTO),

Energiateollisuus ry

FR

CGT – FNME, FPSPSS-FO, CGT-SP, Public Services International, PSI,

INTERCO CFDT,

FNEM-FO, CFTC,

UNSA, FNME-CGT,

FCE-CFDT,

FNEM FO

UFE

GR

-

PFEPPRCI,

GENOP-DEI

HELAS

HU

VKDSZ, EVDSZ, HVDSZ 2000

V.D.Sz.Sz. (EVDSZ),

BDSZ

EMT

IE

ESBOA, IMPACT,

SIPTU, Electricity Supply Board Officers Association

SIPTU

EAI

IT

FEMCA, UILCEM,

FP-CGIL, FLAEI-CISL, FILCTEM-CGIL,

UILCEM

UNEI

LT

LITUF, LVPF,

LTUSE

 

Nacionaline Lietuvos Elektros Asociacija 

LU

CGT-L,

Confédération Luxembourgeoise des Syndicats Chrétiens - Secteur Public, LCGB,

LCGB

Organisation des Entreprises d’Electricité du Luxembourg

LV

LTUE, LAKRS

ENERGIJA, LINA

LEEA

MT

GWU

 

ENEMALTA Corporation

NL

ABVAKABO FNV, CNV

FNV Bondgenoten,

ABVAKABO FNV, EON

FNV,

CNV Vakmensen

Energie-Nederland,

Netbeheer Nederland

PL

SKEE Solidarnosc,

PSS Solidarnosc

SGiE Solidarnosc,

PKEE

PT

Sindicato dos Trabalhadores da AdministraçãoPública,

STAL, SINTAP,

SINDEL, STE

SINDEL

ELECPROR

RO

GAZ ROM,

UNIVERS,

Public Services International,

ENERGETICA,

APA NOVA,

GAZ MEDIAS,

FS Gaz Romania

UFS ATLAS, FSLCP,

FNME, Hidrosind,

FS Hidrosind,

IRE,

SE

SEKO, NOFS,

VISION,

HK Kommunal,

KOMMUNAL, TRANSPORT, FACKFORBUNDET

UNIONEN, SEF,

SVERIGES INGENJORER,

SEKO

 Svensk Energi Swedenergy AB

SI

SDE SLOVENIJE

SDE

Slovenian Chamber of Commerce, Energy Association, EURELECTRIC Section

SK

SOZE, TUWIFWS,

POZ,

Slovak Gas Industry Trade Union,

Slovak Trade Union of Health and Social Services,

ECHOZ, SOZPS,

SPP

ZOJES

ZZES

UK

Prospect, UNISON,

NIPSA, FDA,

Unite the Union,

GMB, T&G (?)

GMB,

UNITE (ex-TGWU),

UNITE the UNION

ENA, Energy UK, ERA

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