Latvia: The representativeness of trade unions and employer associations in the food and drink sector

  • Observatory: EurWORK
  • Topic:
  • Agreements,
  • Collective bargaining,
  • Social partners,
  • Employee representation,
  • Industrial relations,
  • Published on: 08 May 2013



About
Country:
Latvia
Author:
Raita Karnite
Institution:

The Latvian food and drink sector produces more than 15% of manufacture value added (1.7% of total national GDP) and employs around 2.5% of the total number of employed. Collective bargaining exists only at company level. By rough estimation, not more than 15% of employees are covered by company-level collective agreements. Employees are represented by two trade unions, both including workers from outside the food and drink sector. Employers have established more than 20 representing organisations, yet none of them has been involved in sector-level collective bargaining. Representativeness problems are neither raised nor discussed.

Sectoral properties

Economic background

In 2009, the food and drink sector produced 21% of total industrial production value and employed 20% of all employed in manufacturing. It produced 16% of manufacture value added (1.7% of total national GDP) and employed 2.6% of the total number of employed. Seventy-nine per cent of food and drink production was food products and 21% – beverages. In terms of production value, average productivity in the food and drink sector (EUR 54,800 per employee) was higher than average in manufacturing (EUR 52,200). Within the sector, productivity was 3.4 times higher in the manufacture of beverages (EUR 114,700 per employee) than in the manufacture of food (EUR 48,000). There was less difference between sectors in terms of value added per employee (1.9 times).

Compared with 2008, productivity decreased by 5.6% in the food and drink sector (by 6.6% in food and by 0.5% in beverages production), while it decreased by 2.1% in manufacturing. Production in the sector decreased by 21% (by 22% in manufacturing) and value added fell by 26% (by 23% in manufacturing).

Employment in the sector decreased by 28% from 2000 to 2010, while the number of companies increased by 32%.

Table 1: Sectoral properties
 

2000

2010

Number of companies in the sector

557

738

Source of company data

Yearly survey of enterprises and institutions.

Yearly survey of enterprises and institutions.

Aggregate employment

35,858

25,571

Male employment

20,044

10,875

Female employment

15,814

14,996

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

4.53%

3.19%

Source of employment figures

Yearly survey of enterprises and institutions.

Yearly survey of enterprises and institutions.

Aggregate employees

35,792

25,799

Male employees

20,006

10,845

Female employees

15,786

14,954

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

4.55%

3.2%

Source of employee figures

Yearly survey of enterprises and institutions.

Yearly survey of enterprises and institutions.

Note: Data are compiled in breakdown by NACE Rev. 2 starting from 2008, and therefore the information on 2000 is available in breakdown by NACE Rev. 1.1. The data are regrouped by the requested NACE Rev. 2 as follows:

10 (Manufacture of food products) corresponding NACE Rev 1.1 – Production, processing and preserving of meat and meat products (15.1) , Processing and preserving of fish and fish products (15.2), Processing and preserving of fruit and vege s (15.3), Manufacture of vege and animal oils and fats (15.4) , Manufacture of dairy products (15.5) , Manufacture of grain mill products, starches and starch products (15.6), Manufacture of prepared animal feeds (15.7), Manufacture of other food products (15.8)

11 (Manufacture of beverages) corresponding NACE Rev. 1.1 – Manufacture of beverages (15.9)

2. The sector’s trade unions and employer associations

2a Overview of the Industrial relations landscape in the sector

Employees are represented by two trade union organisations – the Latvian Industrial Workers Trade Union (Latvijas industriālo nozaru arodbiedrība, LIA) and the Latvian Agriculture and Food Branch Trade Union (Latvijas Lauksaimniecības un pārtikas nozaru arodu biedrība, LLPNAB), both members of EFFAT. On the employers’ side, the Company Register shows 18 employers’ organisations whose domains include the food and drinks industry. There are also several NGO that are not registered as employers’ organisations, but they represent employers in food and drink sectors. The majority of these organisations are independent, related to a narrow subsector of the food and drink sector. In some sectors (beer production, meat production) there are several NGOs, but their domains are divided (for instance – representing small or large breweries; representing small or large meat production enterprises or small slaughterhouses).

A survey of 18 registered employers’ organisations and other NGOs related to the food and drink sector revealed that only one of these organisations meets the criteria of the representativeness study (is registered with an international organisation). Neither of the organisations representing employers in the sector is involved in sector-level collective bargaining. Three of the registered employers’ organisations and three other public organisations are members of the employers’ organisation the Latvian Federation of Food Enterprises (Latvijas pārtikas uzņēmumu federācija, LPUF), which presents itself as the main organisation representing employers in the food and beverage sector in general – this organisation does not believe a sector-level agreement is necessary. One of its members – the Association of Latvian Spirits producers and distributors (Latvijas Alkoholisko dzērienu ražotāju un izplatītāju asociācija, LADRIA) – is a member of FoodDrinkEurope. The LPUF itself is a member of the Latvian Employers’ Confederation (Latvijas Darba Devēju konfederācija, LDDK). Another organisation – Breweries’ Association of Latvia (Latvijas alus darītāju savienība, LADS), has suspended its membership in LDDK, but it plans to restore membership.

This report includes organisations that are members of international organisations, members of LDDK or cooperate with LDDK, and member organisations of LPUF.

Other organisations featured represent only the professional interests of their members; are not involved in collective bargaining, are not members of international organisations and do not recognise themselves as employers’ organisations.

Note: It should be mentioned that the Register of Employers’ organisations is created based on criteria that are established by the Company register. These criteria are not harmonised with the Law on employers’ organisations, which requires involvement in collective bargaining as a mandatory feature for employers’ organisations. The LDDK has started negotiations with the Company Register on a more precise definition of employers’ organisations where this requirement is to be observed, but this will be implemented no earlier than 2014.

2b Data on the trade unions

Table 2: Union fact sheet: LIA (Latvian Industrial Workers Trade Union; Latvijas Industriālo nozaru arodbiedrība)

The union’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector all types of the following subactivities….?  
1. Manufacture of food products.

Yes

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all of the following types of employees: Blue-collar workers and white-collar workers.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies .…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, can you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, can you potentially cover all occupations within the Food and Drink sector?

Yes

According to your organisation's domain, can you potentially cover the Food and Drink sector in all regions?

Yes

According to your organisation's domain, can you potentially cover employees with other than standard employment contracts within the Food and Drink sector? For instance, Self-employed, temporary agency workers, fixed-term contracts, freelancers….?

Yes

According to its domain, does the union potentially cover employees outside the Food and Drink sector?

Yes

General information on the union

Is the union engaged in sector-related collective bargaining?

No

(Explanation: Although the union is eligible for sector-level collective bargaining, a sector-level agreement has not been concluded. The union is in ongoing negotiations with employer representatives in the sector about entering a sector-level agreement.)

If yes, what form of collective bargaining?

Not relevant.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

A sector-level agreement does not exist in the sector. The trade union has concluded one general agreement on cooperation with an employers’ organisation, but this is not a sector-level collective agreement.

The trade union is not eligible to sign company-level collective agreements, but it assists trade union organisations in companies in the signing of such agreements.

Trade union organisations – members of LIA are established in 50 enterprises and cover 10,766 employees. Company-level collective agreements are concluded in 28 enterprises and cover 8,815 workers. The number of workers that are covered in the food and beverage sector is not known.

Type of membership

Voluntary

Is the union consulted by the authorities on sector-related matters?

No

The organisation itself initiates topics for discussion.

How is this consultation carried out?

Within established tripartite structures and unilaterally – depending on issue.

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

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

In 2011: total number of active members 4,410, of which 1,903 were students, two were individual members, 117 were non-working members.

How many active members in employment does the union have in the Food and Drink sector?

Number of members from the food and beverage sector is not known.

Please indicate/ estimate whether the union’s density in terms of members within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Affiliations

To which international organisations is the union affiliated?

International Federation of Chemical, Energy, Mine and General Workers' Union (ICEM), International Textile, Garment and Leather Workers' Federation (ITGLWF)

IUF

To which European-level organisations is the union affiliated?

EFFAT

To which national-level organisations is the union affiliated?

Free Trade Union Confederation of Latvia (Latvijas Brīvo Arodbiedrību savienība, LBAS)

Source of information

Phone, email and short meeting.

EIRO national correspondent: Raita Karnīte

Table 3: Union fact sheet: LLPNAB (Latvian Agriculture and food branch Trade Union; Latvijas Lauksaimniecības un pārtikas nozaru arodu biedrība)
The union’s domain
According to your organisation's domain, do you potentially cover within the Food and Drink sector all types of the following subactivities….?  
1. Manufacture of food products.

Yes

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all of the following types of employees: Blue-collar workers and white-collar workers.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies .…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, can you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, can you potentially cover all occupations within the Food and Drink sector?

Yes

According to your organisation's domain, can you potentially cover the Food and Drink sector in all regions?

Yes

According to your organisation's domain, can you potentially cover employees with other than standard employment contracts within the Food and Drink sector? For instance, Self-employed, temporary agency workers, fixed-term contracts, freelancers….?

Yes

According to its domain, does the union potentially cover employees outside the Food and Drink sector?

Yes

General information on the union

Is the union engaged in sector-related collective bargaining?

Yes

(Explanation: the trade union is eligible for sector-level collective bargaining, but a sector-level agreement has not yet been concluded. The union has ongoing negotiations with employer representatives in the sector on entering a sector-level agreement.)

If yes, what form of collective bargaining?

Not relevant

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

Sector-level agreement does not exist in sector.

Trade union is not eligible to sign company-level collective agreement, but it assists trade union organisations in companies in signing of such agreements.

Members of the trade union are established in 26 enterprises and cover 3,391 employees. Company-level collective agreements are concluded in 17 enterprises and cover 2,590 workers, of whom about 2000 are in the food and beverage sector.

Type of membership

Voluntary

Is the union consulted by the authorities on sector-related matters?

No

Members

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

In 2011, the total number of active members was 1,540.

How many active members in employment does the union have in the Food and Drink sector?

Around 600.

Please indicate/ estimate whether the union’s density in terms of members within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Affiliations

To which international organisations is the union affiliated?

None

To which European-level organisations is the union affiliated?

Has been member of EFFAT, but ended its membership. Still cooperates with EFFAT.

To which national-level organisations is the union affiliated?

LBAS

Source of information

Phone, fax and email

EIRO national correspondent: Raita Karnīte

2c Data on the employer associations

Table 4: Employer organisation fact sheet: LPUF (The Latvian Federation of Food Enterprises; Latvijas Pārtikas uzņēmumu federācija)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?

Yes

1. Manufacture of food products.

Yes

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's, do you potentially cover companies outside the Food and Drink sector?

Yes

Of member enterprises five are drink producers (of which one produces also food products), and the others produce food products. Of seven public organisations two represent producers of beverages, two represent producers of food products and one is a vocational education institution in food production.

According to its domain, does the employer organisation potentially cover companies outside the Food and Drink sector?

Yes

Education institutions in the field may be included.

General information on the organisation

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

No

The organisation has concluded several agreements with state institutions on cooperation in professional spheres.

However, it is eligible for sector-related collective bargaining by law.

If yes, what form of collective bargaining?

Not relevant

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Federation is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Federation is not eligible to sign company-level collective agreements.

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Within established tripartite structures, special consultation organisations, as well as unilaterally.

How often do sector-related consultations occur?

On a regular basis (at least once a year).

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

31 companies and seven public organisations (six sector associations plus one education institution).

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

Around 6,000 in member companies, and some more in members of public organisations (associations) that are not simultaneously members of LPUF, as well as in education institutions (number is not known).

How many members companies does the organisation have in the Food and Drink sector?

31 companies and six public organisations (sector associations).

How many employees work in these member companies in the Food and Drink sector?

Around 6,000 in member companies, and some more in members of public organisations (associations) that are not simultaneously members of LPUF.

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Higher than overall density.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Higher than overall density.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LDDK

Source of information

Phone, email, and interview

Website: http://www.lpuf.lv/lv/par-lpuf/office

EIRO national correspondent: Raita Karnīte

Table 5: Employer association fact sheet: LADRIA (Association of Latvian Spirits Producers and Distributors; Latvijas Alkoholisko dzērienu ražotāju un izplatītāju asociācija)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?  
1. Manufacture of food products.

No

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's, do you potentially cover companies outside the Food and Drink sector?

Yes

According to its domain, does the employer organisation potentially cover companies outside the Food and Drink sector?

Yes

General information on the organisation

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

No

However, it is eligible for sector-related collective bargaining by law.

If yes, what form of collective bargaining?

Not relevant

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Unilaterally.

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

Three

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

1,223

How many members companies does the organisation have in the Food and Drink sector?

Three companies representing >50% local alcoholic beverages market by volume (JSC ‘Latvijas balzams’ (production of alcoholic beverages), ‘AV & D’ (trade), ‘Jaunpagasts plus’ (production of spirits).

How many employees work in these member companies in the Food and Drink sector?

1,223

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

Confédération Européenne des Producteurs de Spiritueux (CEPS).

To which national-level organisations is the organisation affiliated?

The Latvian Federation of Food Enterprises (LPUF)

LDDK

Source of information

Phone, e-mail

Website: www.dzeratbildigi.lv

EIRO national correspondent: Raita Karnite

Table 6: Employer organisation fact sheet: LZS (ULFPI) (Union of Latvian Fish Processing Industry; Latvijas Zivrūpnieku savienība)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?

No

Only production of fish products is covered.

1. Manufacture of food products.

Yes

2. Manufacture of beverages.

No

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's domain, do you potentially cover companies outside the Food and Drink sector?

No

Only production of fish products is covered.

Some companies operate their own fleet in addition to producing of food products (for instance Licis 93, Unda).

General information on the organisation

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

No

However, it is eligible for sector-related collective bargaining by law.

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Within established tripartite structures and unilaterally.

How often do sector-related consultations occur?

On a regular basis (at least once a year).

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

8

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

Approximately 2,930 workers.

How many members companies does the organisation have in the Food and Drink sector?

8

How many employees work in these member companies in the Food and Drink sector?

Approximately 2,930 workers.

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LDDK

LPUF

Represented on the advisory board of the Latvia Fishing Industry

Several work groups of mediating institutions

Source of information

Phone, email

Website: http://www.cannedfish.lv/lat/

EIRO national correspondent: Raita Karnite

Table 7: Employer organisation fact sheet: LGRPA (Latvian association of producers and processors of meat; Latvijas Gaļas ražotāju un gaļas pārstrādātāju asociācija)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?  
1. Manufacture of food products.

Yes (meat products only)

2. Manufacture of beverages.

No

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation’s domain, do you potentially cover companies outside the Food and Drink sector?

Yes

General information on the organisation

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

No

However, it is eligible for sector-related collective bargaining by law.

If yes, what form of collective bargaining?

Not relevant

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Union is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Union is not eligible to sign company-level collective agreements.

Type of membership

Voluntary.

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

Yes

How is this consultation carried out?

Within established tripartite structures and unilaterally.

How often do sector-related consultations occur?

On a regular basis (at least once a year).

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

Information not available.

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

Information not available.

How many members companies does the organisation have in the Food and Drink sector?

Information not available.

How many employees work in these member companies in the Food and Drink sector?

Information not available.

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LPUF

LDDK

Source of information

Phone, email

EIRO national correspondent: Raita Karnīte

Table 8: Employer organisation fact sheet: LADS (The Breweries’ association of Latvia; Latvijas Alus darītāju savienība)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?  
1. Manufacture of food products.

No

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

No.

Represents small breweries only.

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's, do you potentially cover companies outside the Food and Drink sector?

No

Represents small breweries only.

According to its domain, does the employer organisation potentially cover companies outside the Food and Drink 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?

Not relevant.

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Unilaterally.

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

12

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

~ 200

How many members companies does the organisation have in the Food and Drink sector?

12

How many employees work in these member companies in the Food and Drink sector?

~200

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LDDK (membership currently lapsed but will be renewed)

Source of information

Phone, email

Website: http://www.lads.lv

EIRO national correspondent: Raita Karnite

Table 9: Employer association fact sheet: LADA (The Breweries’ association of Latvia;* Latvijas alus darītāju asociācija)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?

No

Breweries enterprises only.

1. Manufacture of food products.

No

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

No

Covers private ownership and multinationals

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

No

Covers large breweries

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

No

Covered enterprises are registered in Riga and Cesis

According to your organisation's domain, do you potentially cover companies outside the Food and Drink sector?

No

Only breweries

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 agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

Not relevant

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

Not relevant

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Unilaterally.

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

3

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

~900

How many members companies does the organisation have in the Food and Drink sector?

3

How many employees work in these member companies in the Food and Drink sector?

~900

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LDDK

LPUF

the Latvian Chamber of Commerce and Industry (Latvijas tirdzniecības un rūpniecības kamera, LTRK) (through member companies)

Source of information

Phone, email

EIRO national correspondent:

Raita Karnite

* Both LADS and LADA gave identical English translations of their names

Table 10: Employer association fact sheet: LBDUA (Latvian Soft Drinks Manufacturers Association; Latvijas Bezalkoholisko dzērienu uzņēmēju asociācija)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?  
1. Manufacture of food products.

No

2. Manufacture of beverages.

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's, do you potentially cover companies outside the Food and Drink sector?

No

Soft drink enterprises only.

According to its domain, does the employer organisation potentially cover companies outside the Food and Drink sector?

No

General information on the organisation

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

No

However, it is eligible for sector-related collective bargaining by law.

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

None

A sector-level collective agreement has not been concluded. The Association is not eligible to sign company-level collective agreements.

Type of membership

Voluntary.

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

Yes

How is this consultation carried out?

Unilaterally

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

Information not available.

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

Information not available.

How many members companies does the organisation have in the Food and Drink sector?

Information not available.

How many employees work in these member companies in the Food and Drink sector?

Information not available.

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Information not available according to union.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LDDK

Source of information

Email

EIRO national correspondent: Raita Karnite

Table 11: Employer organisation fact sheet: LMB (Latvian Bakers Association; Latvijas Maiznieku biedrība)

The organisation’s domain

According to your organisation's domain, do you potentially cover within the Food and Drink sector companies pursuing all types of the following subactivities….?

No

Only bakeries are covered.

1. Manufacture of food products.

Yes

2. Manufacture of beverages.

No

According to your organisation's domain, do you potentially cover within the Food and Drink sector all (legal) forms of enterprises (for instance: public ownership, private ownership, multinationals, domestic companies.…) (of course, only insofar as they exist in the sector?)

Yes

According to your organisation's domain, do you potentially cover within the Food and Drink sector all size classes of enterprises?

Yes

According to your organisation's domain, do you potentially cover companies in the Food and Drink sector in all regions?

Yes

According to your organisation's, do you potentially cover companies outside the Food and Drink sector?

No

Only bakeries are covered.

According to its domain, does the employer organisation potentially cover companies outside the Food and Drink sector?

No

General information on the organisation

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

No

However, it is eligible for sector-related collective bargaining by law.

If yes, what form of collective bargaining?

Not relevant.

How many companies are covered by the collective agreements you sign within the Food and Drink sector? (including those through extension mechanisms).

A sector-level collective agreement is not concluded. The Association is not eligible to sign company-level collective agreements.

How many employees are covered by the sector-related collective agreements you sign within the Food and Drink sector? (including those covered via extension mechanisms).

A sector-level collective agreement is not concluded. The Association is not eligible to sign company-level collective agreements.

Type of membership

Voluntary

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

Yes

How is this consultation carried out?

Unilaterally

How often do sector-related consultations occur?

On an ad-hoc basis.

Members

How many member companies does the organisation have in total (i.e. in the Food and Drink sector and beyond)?

23

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

Around 1,830

How many members companies does the organisation have in the Food and Drink sector?

23

How many employees work in these member companies in the Food and Drink sector?

Around 1,830

Please indicate/ estimate whether the employer organisation’s density in terms of companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Please indicate/ estimate whether the employer organisation’s density in terms of employees employed by member companies within the Food and Drink sector is higher than/ lower than/ (nearly) equal to its overall density. Please provide sources, if possible.

Lower than overall density.

Affiliations

To which international organisations is the organisation affiliated?

None

To which European-level organisations is the organisation affiliated?

None

To which national-level organisations is the organisation affiliated?

LPUF

LDDK

Source of information

Phone, email

Information obtained from LPUF and internet. Website/other secondary sources: http://www.maizniekubiedriba.lv/

EIRO national correspondent: Raita Karnite

3. Inter-associational relationships

3a Inter-union relationships

3a.1 Please list all trade unions covered by this study whose domains overlap with each other.

There are two trade unions in the sector: the Latvian Industrial workers trade union and the Latvian agriculture and food branch trade union.

3a.2 Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

No.

3a.3 If yes, are certain trade unions excluded from these rights?

3b Inter-employer association relationships

3b.1 Please list all employer associations covered by this study whose domains overlap with each other.

Domains of employers’ organisations do not overlap.

3b.2 Do rivalries and competition exist among the employer associations, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

No.

3b.3 If yes, are certain employer associations excluded from these rights?3b.4 Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?

None of the more than 20 organisations representing employers has entered collective bargaining.

4. The system of collective bargaining

4.1. 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).

Less than 10% (authors’ estimation). This coverage is provided by company-level collective agreements.

4.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered. (Multi-employer bargaining is defined as being conducted by an employer association on behalf of the employer side. In the case of single-employer bargaining, it is the company or its subunit(s) which is the party to the agreement. This includes the cases where two or more companies jointly negotiate an agreement.)

Not important; do not exist.

4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?

Envisaged by law, but there are no sector-level collective agreements in the food and drinks sector.

Extension of sectoral (general) agreements is regulated by the Labour Law (Section 18, Part 3 – 4) in the following order.

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 per cent 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.

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

Envisaged by law, but there are no sector-level collective agreements in the food and drinks sector.

Section 20 on ‘Effect of a collective agreement with respect to persons of the Latvian Labour Law’ establishes that 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 legal employment 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.

4.3. List all sector-related multi-employer wage agreements* valid in 2011 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered.

Do not exist.

4.4. List the sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2011 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. Importance is measured in terms of employees covered.

None.

5. Formulation and implementation of sector-specific public policies

5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters? If yes, which associations?

Trade unions report that they are not consulted by the authorities on sector-specific matters. The situation became worse during the crisis period and has not improved. The majority of consultation institutions (councils, working groups) have been closed.

LPUF reports that it has intensive cooperation with the Ministry of Agriculture and other relevant organisations on professional issues. The Federation has concluded cooperation agreements with the Ministry of Agriculture and the Food and Veterinary Service (Pārtikas un veterinārais dienests, PVD). It participates in the Working Group with the Ministry of Economics dealing with food production and trade issues, as well as working group preparing for the Worlds’ exhibition in Milan. Member of the Board of LPUF Ināra Sure is a member of the National Economy Council with the Ministry of Economics. The Federation is a member of a Food Sector Consultative Council that prepares position of minister on relevant issues. The Ministry of Agriculture holds also Consultants councils in agriculture and fishing with similar mission, where members of LPUF are represented. All mentioned organisations deal exclusively with professional issues in the relevant sector – requirements regarding quality of food and beverages, taxes, trade conditions, export, import conditions.

Other employers’ organisations initiate discussion by themselves, but exclusively on their professional issues. Social issues such as employment pay, working time and working conditions are not discussed at sector level.

5.2. 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 12: 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.

NTSP (general framework, including sector-specific policies)

Tripartite

Statutory

LBAS

LDDK

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

6. Statutory regulations of representativeness

6a Statutory regulations of representativeness for trade unions

6a.1 In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements? If yes, please briefly illustrate these rules and list the organisations which meet them.

Labour Law (Section 18) sets forth the following:

A collective agreement in a sector or territory (hereinafter – general agreement) shall be entered into by an employer, (….) and an employee trade union or an association (union) of employee trade unions if the parties to the general agreement have relevant authorisation or if the right to enter into a general agreement is provided for by the articles of association of such associations (unions).

6a.2 In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If yes, please briefly illustrate these rules and list the organisations which meet them.

Chapter II of the Latvian Labour law on Trade Union Relations with the State Authorities and Administrative Bodies sets forth trade union’s rights as follows.

Right of legislative initiative. Trade unions have the right of legislative initiative in the person of the republic bodies thereof.

Right to participate in the elaboration of economic and social development programmes and legislation. Trade unions have the right to participate in the elaboration of such economic and social development programmes, laws and other regulatory enactments, which concern labour conditions and payment, price formation, social insurance and social security, health protection and other matters of labour and social development. Trade unions shall implement such right in the Supreme Council of the Republic of Latvia and the Council of Ministers of the Republic of Latvia through their republic bodies. The submitted proposals shall be examined, and in case of rejection a justified reason shall be provided.

Right to participate in the determination of the criteria for national living standard. Trade unions shall participate in the determination of the criteria for the national living standard. Trade unions have the right to receive from the State authorities information regarding the social and economic situation of the population and the changes therein free of charge, to request that the government of the Republic determines a justified subsistence minimum, not less than once a year balances wages, pensions, stipends and allowances in conformity with the increase of the price index.

It is established by Conception of social dialogue and the Law on employers’ organisations, that LBAS will represent employees and LDDK will represent employers at national-level social dialogue. Consequently LBAS members and LDDK members are representatives in sector dialogue, but this is not drastic norm.

6a.3 Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness? If yes, please report the most recent electoral outcome for the sector.

No.

6b Statutory regulations of representativeness for employer organisations

6b.1 In the case of the employer organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to conclude collective agreements? If yes, please briefly illustrate these rules and list the organisations which meet them.

Labour Law (Section 18) sets forth the following:

A collective agreement in a sector or territory (hereinafter – general agreement) shall be entered into by an employer, a group of employers, an organisation of employers or an association of organisations of employers, and an employee trade union (…) if the parties to the general agreement have relevant authorisation or if the right to enter into a general agreement is provided for by the articles of association of such associations (unions).

The concluding of collective agreements is one of the functions of the employers’ organisation (the Law on employers’ organisations and their associations, Article 8).

The was established in cooperation with the national-level employers’ organisation in compliance with the Law on employers’ organisations.

6b.2 In the case of the employer organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If yes, please briefly illustrate these rules and list the organisations which meet them.

It is established by Conception of social dialogue and the Law on employers’ organisations, that LBAS will represent employees and LDDK will represent employers at national-level social dialogue. Consequently LBAS members and LDDK members are representatives in sector dialogue, but this is not the norm in Latvia.

6b.3 Are elections for a certain representational body established as criteria for the representativeness of employer associations? If yes, please report the most recent outcome for the sector.

No.

7. Commentary

Collective bargaining exists only at company level in the food and drink sector. The main reason for this is disharmony between representativeness of employees and employers. While employees are represented by two trade unions with overlapping domains, employers are represented by more than 20 organisations, none of which has the intention of entering into sector-level collective bargaining. The majority of them are convinced that company-level collective bargaining is sufficient and sector-level bargaining is not needed. This is why problems relating to representativeness in the food and drink sector are neither raised nor discussed.

The identification of the sector is other obstacle. Some sectors are represented by several organisations, representing employers, and sector may be divided also between trade unions.

Raita Karnite, EPC Ltd

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