Free Trade Union Confederation of Latvia (LBAS) categorically objects to the amendments to the Labour Law suggested by Latvian Employers’ Confederation (LDDK) that provide for lowering employee rights protection standards.
In their proposals LDDK suggests reducing workers’ bonus pay for overtime, cancelling the requirement for the validity of collective agreements until the conclusion of a new collective agreement, as well as cancelling the obligation of the employer to obtain the consent of the trade union in the event of a lay-off of a trade union member, notes the trade union.
LDDK also suggests reducing the number of paid sick-leave days.
This means workers would receive sick-leave benefits only from the fourth day of sick leave, which would significantly undermine their social protection in the event of incapacity for work.
LBAS notes that negotiations regarding the reduction of overtime bonus pay may be possible only if the pay of Latvian workers comes close to the average EU level. At the same time, in Latvia, according to the European Commission’s 2023 report on the country, real wages of employees decreased significantly due to high inflation in the last 12 months. Inflation of the price of energy resources by 48.8% is significantly above the 36.9% in Eurozone.
“Data from Eurostat shows that labour costs in Latvia in the past eight years have grown at a significantly slower pace when compared to its neighbouring countries: while in Latvia they have grown by 28%, in Lithuania they have grown by 37%, in Estonia – by 169% and in Poland – by 118%. If we look back at the last 10 quarters, then starting with 2021 data from Eurostat indicates that labour costs at average wages have gone up by 25.7% in Latvia, 31.8% in Lithuania, 33.2% in Estonia and 40% in Poland. This means by EUR 386 in Latvia, EUR 491 in Lithuania and EUR 625 in Estonia. This means labour costs in Latvia are competitive, and the country should not remain a land of cheap labour,” representatives of LBAS say.
“Considering the high cost of living and Latvia’s lagging behind the EU and other Baltic States,
it is unacceptable to reduce Latvian workers’ wages and their families’ overall income,”
representatives add.
LBAS reminds that overtime work in a company needs to be organised in a way to make sure it does not become a frequent occurrence.
LBAS chairman Egils Baldzēns comments: “Data shows that the talk about us not being competitive when it comes to labour costs is not true. We already have the lowest wages from which the tax base is calculated. And if labour costs fall behind other Baltic States and Poland, to say nothing of other European countries, there will be no need to reduce workers’ pay and social guarantees. We need to use investments and innovations to promote our national economy towards higher added value.”
LBAS is confident that employers and politicians in Latvia have to provide positive signals to local labourers in order to demonstrate to them that the country is moving in a direction of prosperity and that it does not allow the erosion of employees’ rights and social protection, but, on the contrary, – invests in its most valuable resource – the workforce.
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