- Observatory: EMCC
- Published on: 02 March 2008
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The processes of relocation and outsourcing are not very active in Latvia. Some cases of outward relocation appear in textile sector, still social partners and government do not consider this as a major problem. Rapidly changing economics and lack of workforce in country fills empty places shortly afterwards – thus there is no serious effects on employment. Acquisition and merger of enterprises happen from time to time, but again – no serious impact on workforce, and the upper mentioned processes are considered to be useful for overall economic development. Trade unions are actively participating in some cases of privatisation of large state enterprises, and as the result the new owners are not always as it was planned by the government or investors, still these cases should not be considered as the part of globalization process.
Institutional responses to globalisation
Government action to prevent or reduce the extent of off shoring/relocation
Are there any recent examples in your country (i.e. over the past 3-4 years) of the government intervening to prevent particular activities from being relocated abroad or to reduce the scale of this?
Social partner attitudes towards off-shoring/relocation
Have there been cases over the past 3-4 years where the possibility – or threat – of relocation of production has featured as a factor in collective bargaining?
Are there any cases over the past 3-4 years where trade unions have successfully resisted plans to relocate production abroad or have managed to reduce the extent of this?
If so, please indicate the cases concerned and outline their main features Are there any cases where trade unions have accepted the need for the relocation of production – or part of it – abroad as a means of maintaining or improving the viability of companies and so of preserving some jobs and even ultimately expanding them?
Government policy on foreign-owned firms controlling significant sections of the economy
Does the Government in your country have an explicit policy on restricting the acquisition of domestic companies in certain sectors by foreign-owned firms?
Are there any restrictions on foreign-owned companies setting up branches or subsidiaries in your country either generally or in specific sectors?
Are there any sectors of the economy in which the acquisition of a domestic company has not been allowed over the past 3-4 years?
No, not because of globalization policy. There are some cases, when acquisition is being strictly investigated due to competition policy (not to allow one company own too much of the market shares).
Social partner responses to the take-over of domestic firms by foreign-owned ones
Have there been any recent cases (i.e. over the past 3-4 years) where trade unions have resisted foreign acquisition of domestic companies explicitly because of the nationality of the company concerned?
Have there been any recent cases (i.e. over the past 3-4 years) where domestic companies have resisted acquisition by a foreign-owned firm on the grounds of its nationality?
Attitudes to globalisation
Have employers’ associations in your country adopted a stated position as regards the main aspects of globalisation – i.e. outsourcing or the relocation of production abroad and the acquisition of domestic companies by foreign-owned ones?
No. General problem in Latvia is shortage of labour force.
Have trade unions in your country adopted a stated position as regards the main aspects of globalisation – i.e. outsourcing or the relocation of production abroad and the acquisition of domestic companies by foreign-owned ones?
Have there been any surveys of public opinion in your country over the past 3-4 years on attitudes towards globalisation or on the various dimensions of this (as listed above)?
Have these surveys made a distinction between the different dimensions of globalisation (as listed above) or have separate surveys been carried out on these dimensions?
Have these surveys made an explicit distinction between globalisation and the process of European integration, by, for example, distinguishing between relocation of production to other EU Member States and relocation to countries outside the EU or between the take-over of domestic companies by EU-owned firms and take-over by non-EU companies?
Grieta Tentere, Head of the department of Strategic planning and analysis, State Employment agency, Grieta.Tentere@nva.gov.lv, 3717021712
Olegs Baranovs, Ministry of Economics, Republic of Latvia, 3717366857
Egils Baldzens, vice president, Free Trade Union confederation of Latvia, firstname.lastname@example.org, 371 67035925
Marcis Dzelme, adviser on economics and financial affairs, Employers Confederation of Latvia, email@example.com
Kriss Karnitis, Institute of Economics, LAS