Lithuania: 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:
Lithuania
Author:
Institution:

The production and consumption of electricity, as well as employment in the electricity sector, has decreased in Lithuania because of the financial crisis and the closure of the Ignalina Nuclear Power Plant. Two trade unions operating in the electricity sector represent the employees of almost all leading Lithuanian electricity production and distribution companies. As there is no organisation in the sector assuming the responsibilities of a sectoral employer, collective bargaining does not take place at sectoral level. All collective agreements in the sector are signed at company level. Collective bargaining coverage in the sector may be close to 80%.

Sectoral properties

Economic background

In 2010, electricity production fell to around 5–6 TWh per year, from around 14–15 TWh in 2007–2009. This was caused by the closure of the Ignalina Nuclear Power Plant (IAE) in 2010. As a result, since 2010, exports have decreased while imports have increased.

Domestic electricity consumption has also decreased as a result of the crisis: from 9.6–9.9 TWh in 2007–2008 to 9.2–9.4 TWh in 2009–2011.

According to a report by the Prices and Energy Control Commission (in Lithuanian, 3.81MB PDF) in 2011 there was one market operator in the electricity transmission market, six operators in the electricity distribution market and 33 market operators in the electricity supply market. In the period before the crisis, there were 200 electricity producers and one market operator in Lithuania.

Unfortunately, Lithuanian Statistics (STD) provides no information specifically referring to NACE 35.1 sector.

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

Development of sectoral employment and companies

2008

2011

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

122

238

Comment    
Source of company data

Eurostat, provided by the Eurofound

Eurostat, provided by the Eurofound

Aggregate employment

9,971

5,323

Male employment

n/a

n/a

Female employment

n/a

n/a

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

0.66%

0.42%

Source of employment figures

Eurostat, provided by Eurofound

Eurostat, provided by Eurofound

Comment    
Aggregate employees

9,952

7,884 (2010)

Male employees

n/a

n/a

Female employees

n/a

n/a

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

0.74%

0.66% (2010)

Source of employee figures

Eurostat, provided by Eurofound

Eurostat, provided by Eurofound

Comment    

2. Overview of the industrial relations landscape in the sector

The Lithuanian Industry Trade Unions’ Federation (LPPSF) is the one strong sectoral trade union confederation functioning in the Lithuanian energy sector, also representing workers from the electricity, thermal, and chemical sectors. It has about 5,000 members in total, of which some 2,000 represent the electrical energy sector. Trade unions in all the leading Lithuanian electricity production and distribution companies are members of the LPPSF.

Despite the presence of different employers’ associations in Lithuania, including the National Association of Lithuanian Electricity (NLEA), none of these associations assumes the functions of the employer at sectoral level. If trade unions raise the subject of sectoral collective bargaining, they are told that the associations ‘do not have the power’ to bargain.

Therefore, the main level for social dialogue in the electricity sector is enterprise level. Trade union density is about 30%–40%; collective bargaining and collective agreements are in place in all leading electricity production and distribution companies (LE, LESTO, LITGRID). Collective bargaining coverage might be close to 80% in the sector.

Social dialogue is firmly in place in many leading companies in the fossil and hydro subsectors covered by the electricity sector. However, the wind, biomass and photovoltaic subsectors are comprised of very small power plants, each with few employees. These companies, as a rule, don’t have trade unions in place.

The social partners have little involvement in strategy-building in the energy (or electricity) sectors in Lithuania. This function is generally deemed a prerogative of the Ministry of Energy (EM). Nevertheless, the Committee for Energy was set up under the Tripartite Council of the Republic of Lithuania (LRTT) in 2010 to allow social partners to discuss the most important issues of the energy sector. Although the committee meets once every two or three months, it doesn’t appear to play any greater a role in energy policy (at least so far).

3. The sector’s trade unions and employers associations

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

Lithuanian Industry Trade Unions’ Federation – LPPSF

Yes

Yes

Yes

Yes

Juozas Neverauskas – President of the LPPSF

Trade Unions ‘Solidarumas’ of Lithuanian Energy – LEPS ‘Solidarumas’

Yes

No

Yes

Yes

Rimtautas Ramanauskas – President of the LEPS ‘Solidarumas’

Lithuanian Trade Union Federation of Public Services – LVPPF

No

Yes

No

No

Romualdas Nemanius – President of the LVPPF

Lithuanian Trade Union of State Employees - LVTPS

No

Yes

No

No

Irena Petraitiene – President of the LVTPS

National Association of Lithuanian Electricity - NLEA

Yes

Yes

No

Yes

www.nlea.lt

LTUSE/ LVTPS

?

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?

Yes

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)

Trade union(s)

LESTO, AB

Single-employer agreements:

Company

Collective agreement of LESTO

Employees of LESTO

2,578

LESTO management

LESTO

IAE

Single-employer agreements:

Company

Collective agreement of IAE

Employees of IAE

2,061

IAE management

IAE

Kauno energija (KE)

Single-employer agreements:

Company

Collective agreement of KE

Employees of KE

542

KE management

KE

Lietuvos energija, AB (LE)

Single-employer agreements:

Group

Collective agreement of LE

Employees of LE

512

LE management

LE

TETAS, UAB

Single-employer agreements:

Company

Collective agreement of TETAS

Employees of TETAS

476

TETAS management

TETAS

* 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).

Approximately 80%–90% of employees in the sector are covered by company-level collective agreements.

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.

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

No.

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

Not applicable

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.

Energy Committee under the Tripartite Council of the Republic of Lithuania (LRTT)

Tripartite

Agreement

Lithuanian Trade Union Confederation (LPSK)

Lithuanian Confederation of Industrialists (LPK)

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

7. Data on the trade unions

LPPSF

Lithuanian Industry Trade Unions’ Federation

Lietuvos pramonės profsinių sąjungų federacija

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 – thermal sector, chemistry, other.

General information on the union

 

Is the union engaged in sector-related collective bargaining?

Yes

If yes, what form of collective bargaining?

Single-employer bargaining (plant/company agreements)

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

Up to 5,000

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 an ad-hoc basis

Members

 

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

5,000

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

2,000

Does the union have members in the largest electricity companies?

Yes

Affiliations

 

To which international organisations is the union affiliated?

Public Service International (PSI)

To which European-level organisations is the union affiliated?

European Federation of Public Service Unions (EPSU)

IndustriAll

To which national-level organisations is the union affiliated?

LPSK

Source of information

Juozas Nevarauskas, President of the LPPSF, phoned 12 March 2013.

Website: www.pramprof.lt

EIRO national correspondent: Inga Blaziene

LEPS ‘Solidarumas’

Trade Union ‘Solidarumas’ of Lithuanian Energetics

Lietuvos energetikų profsinė sąjunga ‘Solidarumas’

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 – thermal sector

General information on the union

 

Is the union engaged in sector-related collective bargaining?

Yes

If yes, what form of collective bargaining?

Single-employer bargaining (plant/company agreements)

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

Up to 3,000

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 an ad-hoc basis

Members

 

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

500

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

400

Does the union have members in the largest electricity companies?

Yes

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?

Lithuanian Trade Union ‘Solidarumas’ (LPS ‘Solidarumas’)

Source of information

Rimtautas Ramanauskas, President of the LEPS ‘Solidarumas’, phoned 13 March 2013).

EIRO national correspondent: Inga Blaziene

8. Data on the employer associations

NLEA

National Association of Lithuanian Electricity

Nacionalinė Lietuvos elektros asociacija

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?

No.

General information on the organisation

 

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

No

If yes, what form of collective bargaining?

n/a

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)?

n/a

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)?

n/a

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 an ad-hoc basis

Members

 

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

4 (2012)

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

~3,500 (2012)

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

4 (2012)

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

About 3,500 (2012)

Are the largest electricity companies affiliated to this Employers organisation?

Yes

Affiliations

 

To which international organisations is the employer organisation affiliated?

 

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

EURELECTRIC

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

 

Source of information

Website www.nlea.lt

EIRO national correspondent: Inga Blaziene

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.

LPPSF, LEPS ‘Solidarumas’.

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 applicable

9.2 Inter-employer association relationships

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

NLEA

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?

Not applicable

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

Not applicable

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?

None of the existing employer organisations acting in the electricity sector (the NLEA, the Lithuanian Electricity Association (LEEA), nor the Association of Lithuanian Electricity Producers (LEEGA) will assume the functions of a sectoral employer and enter into collective bargaining.

9. Commentary

The electricity sector has been recently exposed to many changes, including restructuring and mergers. Decommissioning of the IAE, which shut down on 31 December 2009, took a long time. This was followed by the reorganisation of main electricity production and distribution companies, and the emergence of power plants using renewable energy supplies. Yet, these quite fundamental restructuring processes didn’t appear to have any major impact on industrial relations: long-established trade unions in the sector, operating in the large electricity production and distribution companies, although they formed certain joint representation bodies, nevertheless remained unchanged. Large Lithuanian enterprises continue collective bargaining and have collective agreements in place.

It should be noted that, since 1 January 2010, over 2,000 employees of IAE are excluded from being counted as sectoral employees in the national statistics, although trade unions still count them as sectoral members. This accounts for the discrepancy in coverage figures.

Inga Blaziene, Institute of Labour and Social Research of the Lithuanian Social Research Centre

Annex: 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

GMB,

UNITE (ex-TGWU),

UNITE the UNION

ENA, Energy UK, ERA

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