1. Flexicurity in the context of social security Ministry of Welfare of the Republic of Latvia Riga, 19.03.2008

2. 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).

3. 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)

4. 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)

5. 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

6. 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)

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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

13. Thank you for your attention! www.lm.gov.lv www.darbatirgus.gov.lv