Blaziene, Inga

The global economic and financial crisis, which took effect in Lithuania at the end of 2008, has hit the labour market severely.

The national agreement was signed on 28 October 2009 (*LT0911019I* [1]) between the Government of the Republic of Lithuania (LRV [2]) and the following social partners: [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/national-agreement-to-combat-economic-downturn-finally-signed [2] http://www.lrv.lt/

On 29 September, in solidarity with European trade unions, the country’s trade unions – the Lithuania Trade Union Confederation (LPSK [1]), the Lithuanian Labour Federation (LDF [2]) and the Lithuanian Trade Union ‘Solidarumas’ (LPS ‘Solidarumas’ [3]), together with the Lithuanian Journalists’ Union (LŽS [4]) and the Lithuanian Association for the Elderly (LPZA (74Kb PDF) [5]) – planned to hold a meeting near the headquarters of the Government of the Republic of Lithuania (LRV [6]) in Vilnius. [1] http://www.lpsk.lt/ [2] http://www.ldf.lt/index.php?cid=26 [3] http://www.lps.lt/ [4] http://www.lzs.lt/ [5] http://www.monitoringris.org/documents/ngos_nat/Bociai-LPZA-EN.pdf [6] http://www.lrv.lt

In 2009, the Ministry of Social Security and Labour (SADM [1]) asked the Institute of Labour and Social Research (DSTI [2]) in Vilnius to carry out a comparative analysis of the systems of remuneration for public sector employees in Lithuania. (The full version of the report is available in Lithuanian from SADM only on special request. A summary of the report, /Lietuvos valstybinio sektoriaus darbuotojų darbo apmokėjimo sistemų palyginamoji analizė/, in Lithuanian is available from the SADM website [3].) The research involved: [1] http://www.socmin.lt [2] http://www.dsti.lt [3] http://www.socmin.lt/index.php?1606775163

The continuing economic crisis in Lithuania and the resulting problems in the public sector (including cutting of funding to the sector, wage cuts and job losses) have hit the country’s educational system hard. The education sector’s share in the overall public budget continues to decrease, along with the share of funds for education in the country’s gross domestic product (GDP). The situation in the sector has been made worse by an ongoing education reform programme that has lasted several years, and by demographic changes in the country.

The Tripartite Council of the Republic of Lithuania (Lietuvos Respublikos Trišalė taryba, LRTT [1]) – the main national-level tripartite social dialogue institution in the country – has been constantly expanding during recent years. As far back as 2006, the social partners considered extending the scope of activities of the LRTT by including more representatives of non-governmental organisations (NGOs) (*LT0607039I* [2]). This idea was partially implemented in 2009 when, by decision of the social partners, the number of LRTT members was increased from 15 to 21 persons by including new representatives of employer and employee organisations and of the ministries (*LT0909019I* [3]). In 2008, in order to strengthen the role of the LRTT in making important social and economic policy decisions in the country, the social partners initiated discussions to address these issues at the Parliament (Lietuvos Respublikos Seimas, LRS [4]) and Government of the Republic of Lithuania (Lietuvos Respublikos Vyriausybė, LRV [5]) (*LT0809029I* [6]). [1] http://www.lrtt.lt/ [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/call-for-representation-of-civil-society-in-tripartite-discussions [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/membership-of-national-tripartite-council-boosted [4] http://www.lrs.lt/ [5] http://www.lrv.lt [6] www.eurofound.europa.eu/ef/observatories/eurwork/articles/social-partners-in-favour-of-enhanced-role-for-social-dialogue

In Lithuania, sectoral social dialogue [1] has been traditionally underdeveloped: instead, national-level tripartite and company-level social dialogue has been prevailing, as is the case in many other of the new Member States that joined the European Union in 2004 and 2007. However, the situation seems to be gradually changing in recent years, with initiatives being taken to set up bilateral councils or commissions in various sectors of economic activity. [1] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/social-dialogue

After three months of negotiations, on 28 October 2009, Lithuania’s Prime Minister, Andrius Kubilius, and some of the peak social partner organisations signed a new national agreement. The accord confirms the commitment of its signatories to reduce social benefits, increase social insurance contributions, reduce profit tax and not to amend laws regulating labour relations without the consent of the Tripartite Council of the Republic of Lithuania (Lietuvos Respublikos trišalė taryba, LRTT [1]). The national agreement was signed by 12 business and public organisations, including trade unions, employer organisations and business associations (*LT0911019I* [2]). However, organisations representing disabled people, along with six trade unions, the Lithuanian Association of Older People and the National Assembly of Active Mothers refused to sign the agreement. [1] http://www.lrtt.lt/ [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/national-agreement-to-combat-economic-downturn-finally-signed

After several months of negotiations, the government of the Republic of Lithuania (Lietuvos Respublikos Vyriausybė, LRV [1]) and the social partners – the national peak trade union and employer organisations – finally signed a national agreement providing for measures to combat the recession on 28 October 2009. [1] http://www.lrv.lt

In response to the current economic situation in Lithuania, which is continuing to worsen, the government of the Republic of Lithuania (Lietuvos Respublikos Vyriausybė, LRV [1]) with a view to realigning the national budget is to impose public sector wage cuts, as well as to reduce the amount of old-age pensions and other social welfare benefits. [1] http://www.lrv.lt/