Better provisions for non-EU migrant workers

On 12 March 2008, the Estonian parliament accepted legislative changes with regard to the immigration and employment of migrant workers. The amendments simplify the procedures for employing migrant workers, while introducing stricter regulations on the minimum wage of these workers. Despite the changes, Estonia’s policies in relation to non-EU migrant workers are still regarded as relatively conservative.

Legislative changes

The recent amendments to Estonia’s Aliens’ Act seek to simplify and specify in greater detail the procedures related to the employment of non-EU migrant workers. The current procedures for applying for work permits are characterised by lengthy procedures, the lack of a clear basis for short-term employment and a high administrative burden on employers and the state.

The amended legislation will allow for an increased annual immigration quota, doubling from the current 0.05% to 0.1% of Estonia’s permanent population. This translates into the possible legal entry of about 1,340 migrants in 2008, compared with 686 migrants in 2007. At the same time, the amendments abolish completely the government’s right to exclude certain groups of people from the immigration quota. However, according to the Ministry of the Interior (Siseministeerium), the quota was reached for the first time in 2007. Therefore, it is expected that, as the quota is increased, the reduced rights of the government to influence the actual number of migrants will not hinder the employment of migrant workers in Estonia.

Minimum wage requirements

With regard to short-term employment of up to six months, a minimum wage requirement has been established. Accordingly, the minimum wage of migrant workers will have to be at least the same as the sectoral average wage, but not less than the annual national average wage multiplied by a coefficient of 1.24. Thus, in 2008, the minimum wage of migrant workers will be about EEK 13,962 (around €892 as at 1 April 2008). As an exception, the minimum wage requirement is not valid for certain positions defined in the act, which have an important effect on the development of Estonian culture or education.

The Citizenship and Migration Board (Kodakondsus- ja Migratsiooniamet) will have a right to check the fulfilment of the minimum wage requirement through the Estonian Tax and Customs Board (Maksu- ja Tolliamet).

In addition, third-country nationals can also be employed for a longer period of up to two years under a residence permit for working purposes. The minimum wage of such workers will be equal to the annual national average wage multiplied by a coefficient of 1.24. Employers who wish to employ a migrant worker from a thrid country for a longer period are obliged to search first for suitable job applicants through the Labour Market Board (Tööturuamet) for three weeks instead of the previous two months. If suitably qualified workers are not found during that period, either from Estonia or other EU countries, the employer will be allowed to hire a migrant worker from a non-EU country.

Mixed views on migrant worker policies

Discussions in parliament have highlighted concerns over the potential problem of migrant workers’ integration. It is mostly feared that the increased migration quotas may lead to future problems regarding the cultural and socioeconomic integration of new migrants.

Such concerns were also reflected in a 2008 poll conducted by the Klaster Research Centre (Klaster Uuringukeskus) among people aged 18–74 years. The results indicated that about 66% of respondents do not support bringing in migrant workers, while 15% would support it in certain circumstances and only 9% expressed unconditional support. The main argument in favour of migrant workers’ employment was the need for specialists in the labour market. The main arguments against their employment included a wish not to see an influx of foreigners in Estonia, fears that the country’s national identity might fade as a result and the need to use Estonian labour market resources. The latter issue is also highlighted by the political party the Estonian People’s Union (Rahvaliit), which argues that the possibilities for employing Estonians or EU citizens should be more thoroughly explored before turning to non-EU labour markets.

The Estonian Employers’ Confederation (Eesti Tööandjate Keskliit, ETTK) has largely supported the legislative changes, since it has continuously pointed to the lack of highly qualified specialists in certain sectors of the labour market. Research conducted by ETTK among its members in 2007 indicated that 22 enterprises are planning to hire migrant workers. However, as the research was conducted in only a small proportion of Estonian enterprises, the actual demand may be even higher.

For its part, the Confederation of Estonian Trade Unions (Eesti Ametiühingute Keskliit, EAKL) has expressed its opposition to bringing in cheap labour. Therefore, it is particularly supportive of the minimum wage requirement established in the new act. EAKL has also underlined the need to continuously monitor the employment and wage levels of migrant workers.

Commentary

The changes in the Aliens Act seek to support the demand for workers in Estonia’s labour market (EE0612019I). According to Statistics Estonia (Eesti Statistika, ES), an average of 20,000 vacancies – or 3.3% of all jobs – were available throughout 2007. The labour shortage problem was most acute in sectors such as agriculture, manufacturing, and hotels and restaurants.

Kirsti Nurmela, PRAXIS Centre for Policy Studies