Free Trade Union Confederation of Latvia Egils Baldzēns President of LBAS lbas@lbas.lv (LBAS)

Basic socio-economic facts about Latvia The total population: 1,9 million people GDP per capita (in PPS): ~67% of EU-28 average GDP growth rate in 2017: +4,5%, forecast for 2018: +4% Annual inflation rate: 2.9% Unemployment rate: 7,2% Average wage: EUR 1004 (gross) per month Minimum wage: EUR 430 per month Average pension: EUR 289 per month

Average Salary in Baltic States Country Gross wage 2018. Q II Net Salary, EUR Relief with 1 dependant Price level as % from EU-28 average LV 1004 715 755 72,4% LT 927 712 722 64,6% EE 1321 1105 78,5% Local Purchasin Power Index (NYC = 100) Latvia – 55,7 Lithuania – 60,64 Estonia - 77,37

Tax reform 2018 Starting from 2018 the new Tax reform has taken affect providing some of the biggest changes in tax policy of Latvia since joining the EU The Tax reform affects Labour taxation policy, Corporate taxation policy, as well as several key areas in consumer taxation

Tax Rates Social tax – 11% on employee + 24,09% on employer VAT 21% (reduced rate of 12%)

Free Trade Union Confederation of Latvia (LBAS) LBAS was established in 1990 LBAS is the biggest trade union confederation in Latvia, representing 10% of Latvian workforce LBAS unites 21 independent sectoral trade unions Largest affiliated organizations are: Education and Science Employees Trade Union (LIZDA) Health and Social Care Employees Trade Union (LVSADA) Railway and Transport Workers Trade Union (LDZSA) Public Service and Transport Workers Trade Union (LAKRS) There are 1152 collective agreements and 5 sectoral general agreements in the framework of LBAS

Main objectives of LBAS To protect the interests of trade union members To protect workers’ interests and rights in the socio- economic field To participate in the elaboration of economic and social development programmes, in the evaluation of draft laws, in working groups on improvement of labour conditions, wages, tax policies, compulsory social insurance and social guarantees, healthcare, employment, vocational education and lifelong learning

Strategic goals of LBAS Strengthen the role of LBAS as a social partner for employers, municipalities and state institutions, developing a definition of social partners; Ensure the particiation of LBAS and its member organisations in social dialogue at national level through NTCC and its councils Ensure implementation of NTCC results by all stakeholders; Improvement of rgulation for Trade Union operation and action; Gain the rights for LBAS as a social partner to propose legislative amendments and agenda of Parliament.

Our activities and goals We demand to decrease tax burden on our labour force We ask our government to support enterpreneurship, which is socially responsible and fair We tackle the employment problems, emphasizing problem groups such as youth, people aged 50+, regional labor markets, industries with deficit We demand strategic investment in education to improve skills that match the requirements of labour market We demand stricter implementation of labor law and job safety as well as implementaion of collective agreements We strive to implement sectoral collectiv bargaining and sectoral collective agreements to facilitate self regulation in different industries for fair competition

Structure of social dialogue in Latvia We can identify 4 levels of social dialogue in Latvia: National level Regional level Sectoral level Company’s level At national level social dialogue is realized within National Tripartite Cooperation Council (NTCC), which consists of representatives from government, Employer’s confederation of Latvia (LDDK) and LBAS At regional level we have Tripartite Consultative Councils

Our proposals to improve social dialogue in Latvia Support of Trade Union movement by building capacity and increasing membership To strenghten involvement of social partners in political decision making and development of regulation To strenghten social dialogue on regional, sectoral and company level Support of collective bargaining at local and sectoral level Increase the number of sectoral general agreements Government should make sure that generally binding agreements are executed properly

Thank you!