Flexicurity in the context
of social security
Ministry of Welfare of the Republic of Latvia
Riga, 19.03.2008
Flexicurity context

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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)
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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:
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Legislation changes
Information campaigns
New control mechanisms
Future initiatives to promote Flexicurity
in labour relations (4)
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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
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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
%
Job stability, constant, predictable salary
Interesting, creative, varying job
Social security in place
Good salary
Good relationship with collegues on private level
Ability to balance work and private life
Good and safe working conditions, environment
Good professional cooperation with collegues
Potential for growth, carreer opportunities
Education available (courses)
Bonuses, fringe benefits
Good labour agreement conditions
Close to place of residence
Business trips abroad
Good management
Can be your own boss, plan own time, plan
Occupation is in line with education, speciality
There are no other choices
Other
Hard to say
44
41
40
38
33
17
17
13
9
8
8
8
2
2
1
1
1
2
1
1
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
%
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
Lack of work agreement,
poorly
set mgmt
conditions or the
agreement 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
76
30
18
17
12
10
9
6
4
3
3
2
2
1
1
0.4
3
0.4
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
%
5 - Fully agree
4
3
2
1 - Fully disagree
Trade unions are well aware of problems
concerning regular employees
20
There is no benefit from being a member of a
trade union
19
14
11
The idea of trade unions is outdated
16
11
I am well aware of the activities carried out by
a trade union
16
14
Leaders of trade unions are reliable
12
My colleagues believe that membership in a
trade union is very important
10
My employer is against membership of
5 3 11 7
employees in a trade union
19
16
17
14
8
Hard to say
11
11
21
21
16
8
10
27
10
28
14
29
15
9
10
15
30
14
26
11
32
40
48
ESF projects 2008 – 2013 (LFTUC and LEC)
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Improvement of working conditions and
decrease of accidents at work, promotion of
social responsible enterpreneurship:
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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