Flexicurity in the context of social security

Ministry of Welfare of the Republic of Latvia

Riga, 19.03.2008

Flexicurity context Low use of distance work and other flexible work organization forms:

part-time workers 6.5% in 2006 (EU 27 - 18.1%) employees with a contract of limited duration in 2006 - 7.1% (EU -

14.4%) 24% employees were employed without contract and/or with “envelope

wages”, unpaid overtime in 2006 (68% men and 32% women)Reasons: lack of awareness, understanding about labour law and rights; low wages

Increase in minimum wage, increase in non-taxable income minimum, non-taxable level on other persons (2006 – 90/35/22 LVL, 2007 – 120/50/35 LVL, 2008 – 160/80/56 LVL)

Considerable increase in range and volume of ALMM Decrease of registered unemployed by 25% (68 944 in 2006 and 52 321

in 2007).

Initiatives to promote Flexicurity in labour relations (1)

Report on Flexicurity to the Cabinet of Ministers – August 2006

Amendments to the Regulations of the Cabinet of Ministers: Regarding Work in Activity Areas where an

Employment Contract is Normally not Entered into for an Unspecified Period (February 2007)

Regulations regarding Seasonal Work (May 2007)

Initiatives to promote Flexicurity in labour relations (2)

Amendments to the Labour Law (September 2006): Contract of limited duration can be concluded for 3 years (previously 2 years) An employer, when giving a notice of termination of an employment contract, in

case the employee is not able to continue work for health reasons and it is proven by doctor, shall comply with 10 days period (instead of 1month)

Taking into account occupational safety and health protection principles, the collective agreement may specify other procedures for the granting of breaks (in general – not less than 30 minutes after 4 hours worked)

An employer shall determine part-time work if requested by a pregnant woman, a woman for a period following childbirth up to one year, but if the woman is breastfeeding then for the whole period of breastfeeding, as well as by an employee who has a child less than 14 years of age or a disabled child under 18 years of age (previously 16)

A pregnant woman, a woman for a period up to one year after giving birth, and a woman who is breastfeeding for the whole period of breastfeeding may be employed in overtime work if she has given her written consent (previously it was forbidden)

Initiatives to promote Flexicurity in labour relations (3)

Labour Inspectorate strengthened in the context of undeclared work – additional staff, training, seminars to employers and employees

Agreements on cooperation and information exchange on issues related to undeclared work and working conditions with umbrella employers and trade unions organisations

Information from Labour market study on undeclared work (2007) as a base for further actions

Future perspectives: Legislation changes Information campaigns New control mechanisms

Future initiatives to promote Flexicurity in labour relations (4)

Working group with social partners made the amendments to the Labour Law (now in coordination process with the ministries): To struggle undeclared unemployment – term to have

contract at working place Annual paid leave shall be transferred or extended in case if

an employee taking care of an ill child up to the age of 14 Settled more precisely and strictly terms of aggregated

working time Termination of employment contract due to long-term

incapacity (more than 6 consecutive months)

Active Labour Market Policies

Changes in legislation in June 2007: Focus of ALMM on new target groups - inactive persons, persons

who take care of family members, drug / alcohol addicts Raising of qualification and competitiveness - training for

employees and self-employed Promotion of regional mobility - preventive measure supporting

companies and employees More targeted career guidance and job placement - merging State

Employment Agency and Professional Career Counselling State Agency from 01.09.2007.

Individual approach and more responsibility of unemployed person - individual plans fully operational from 2007

Social Security Social security issues (unemployment benefit, sickness benefit) -

focused debate of social partners and government in 2007 and 2008

To encourage the unemployed to enter the labour market as soon as possible, starting from January 2008 duration of unemployment benefit is reduced and depends on standing of insurance (previous - 9 months for all) : 1-9 years standing maximum duration of paying of

unemployment benefit - 4 months 10-20 years – 6 months over 20 years – 9 months

In average unemployment benefit received for 4.5 months in 2006, 30% - for 9 months.

Factors contributing to high job satisfaction among employees in Latvia

(study of the Ministry of Welfare in 2006/2007)Note: Data obtained during survey of employees, basis – employees satisfied with

their current job, n=1841 % 44

4140

38

33

17

1713

9

8

8

82

2

1

1

12

11

Job stability, constant, predictable salaryInteresting, creative, varying job

Social security in placeGood salary

Good relationship with collegues on private levelAbility to balance work and private life

Good and safe working conditions, environmentGood professional cooperation with collegues

Potential for growth, carreer opportunitiesEducation available (courses)

Bonuses, fringe benefitsGood labour agreement conditions

Close to place of residenceBusiness trips abroad

Good managementCan be your own boss, plan own time, plan

Occupation is in line with education, specialityThere are no other choices

OtherHard to say

Factors contributing to low job satisfaction among employees in Latvia

(study of the Ministry of Welfare in 2006/2007)

Note: Data obtained during survey of employees, basis – workers not satisfied

with current job, n=605 %76

30

18

17

12

10

9

6

4

3

3

2

2

1

1

0.4

3

0.4

Low salary

High work load

Poor and dangerous work conditions and environment

No sense of stability, salary payments are delayed

Lack of growth and carreer possibilities

Have to work overtime

No bonuses, fringe benefits

Boring, dull work

No social security

Lack of education (courses)Negative, indifferent attitude from mgmt, poor

relationship with mgmtLack of work agreement, poorly set conditions or theagreement is not followed

Poor professional relationship with collegues

Poor private relationship with collegues

Work is not suited to education, speciality

Far from place of residence

Other

Hard to say

Assessment of trade union activities according to employees’ survey in Latvia

(study of the Ministry of Welfare in 2006/2007)

Note: employees survey data, n=2455 20

16

16

12

10

5

14

11

11

14

14

8

3

19

16

17

21

21

16

11

8

11

11

9

10

10

7

10

14

15

14

11

15

27

28

29

30

26

32

40

48

19

Trade unions are well aware of problemsconcerning regular employees

There is no benefit from being a member of atrade union

The idea of trade unions is outdated

I am well aware of the activities carried out bya trade union

Leaders of trade unions are reliable

My colleagues believe that membership in atrade union is very important

My employer is against membership ofemployees in a trade union

% 5 - Fully agree 4 3 2 1 - Fully disagree Hard to say

ESF projects 2008 – 2013 (LFTUC and LEC)

Improvement of working conditions and decrease of accidents at work, promotion of social responsible enterpreneurship: Establishment of consultative centres Training and awareness activities 100 000 workplace risk assessment Development of preventive action plans Introduction of preventive culture – training/information

of 100 000 employees and employers regarding risks and preventive actions (company specific)

Funding – 10 MEUR

Thank you for your attention!

www.lm.gov.lv

www.darbatirgus.gov.lv