Partnerships for Employment to Employability

Transcription

1 Partnerships for Employment to Employability Dr.pol.cand. El na Egle General Director of Employers Confederation of Latvia Presidency Conference: Anticipating and managing restructuring in a socially responsible way, New partnerships to preserve employment Brussels, 18/19 October 2010 Rapporteur E.Egle Representing social and economical interests of Latvia s employers on national and international level (IOE, BIAC, BusinessEurope) in negotiations with parliament, government and trade unions in the framework of social dialogue. On national level: Member of National Tripartite Cooperation Council, Member of Economical Council, Advisor of Science Council of Latvia, Advisor of Steering Committee of Structural Funds of European Union, Chairwoman of Advisory Council of State Employment Agency, etc. Main social activities: Member of State President s Commission of Strategic Analysis Member of Latvian Political Science s Association

2 Content GDP data of Baltic Countries Status Quo Latvia s Background Paper Lessons Learned Future Steps Seasonal data of GDP q GDP changes Vs previous year 4

3 Demand for labour is low in Employment raise forcasted in export industries in Latvia s s Labour Market Going Mainly Fiscal Latvia has met requirements of EC, WB and IMF Budget deficit is under control (VAT and personal income tax raised, untaxed minimum decreased) Main criteria of structural reform in public sector reached (30% salary cuts, 50% of state agencies merged) Financial sector stabilized - September 2010 Fitch upgraded future flow from negative to stable Sufficiently filled foreign currency reserves and reached monetary targets Social security net implemented Main negative impacts: emigration, shadow economy and down scaled internal market

4 The Active Employment Policy Measures in Latvia 1) VAT, requalification and qualification improvement; 2) paid temporary work; 3) measures for enhancing the competitive capacity: activities for improvement of the social and functional skills and the psychological support; measures for acquiring the basic skills, learning the methods of job seeking, for informal education, including the state language classes and the choice of the further education; employment opportunities during the summer vacations for the students; other activities that enhance the competitive capacity of the unemployed persons and job seekers. 4) activities targeted to the specific groups of persons: youth, prepension aged and other vulnerable groups incl long term unemployed; 5) measures to facilitate a start of a business or a self-employment; 6) work practice at the possible working place that provide the opportunity to assess the professional suitability; 7) training with the employer; 8) complex measures of support. Preventive Measures for Reducing the Unemployment 1) career counselling, including the help in career planning, professional suitability tests, and acquiring the skills of job seeking and job maintaining. Both individual and groups advices; 2) increasing the qualification of the persons employed by commercial bodies and of the self-employed persons, their requalification and further education; 3) facilitating the regional mobility of the persons employed by the commercial bodies; 4) encouraging the state language learning; 5) training programmes for involving adult people into LLL; 6) training programmes for employed persons at risk of becoming unemployed (with reduced working hours).

5 ESF Projects s of Social Partners Practical Implementation of Legal Acts in Labour Relations and Safety at Work in Industries and Companies supporting enterprises to improve work organisation and work safety or employees to solve labour conflicts Strengthening of social partners capacity in regions to support regional employers organisations or trade unions developing social dialog with municipalities and process of social economical planning and coordination Supporting SMEs NGos supporting SMEs (leaded particularly by women) without any or with a little state aid: NGO Ldere /mentoring program/ Latvian rural women association /microfinance and nonfinancial support for micro-business/ LDDK established SMEs cooperation platform uniting over 26 NGOs creating a think tank 4 better legislation and support instruments based on Small Business Act principles. The Concept approved in government to support microenterprises micro tax, patent fees, reduced needed capital for setting up business and registration costs introduced. The number of registered enterprises increased by 20%.

6 Initiative of State President Experience for Future to support freelance volunteering and achieving the 1st work experience at enterprises, public institutions and NGOs. Ministry of Education and Science and its institutions signed an agreement with social partners on restructuring of VAT, development of Industry Expertise Councils and development of qualification system Initiatives for Youth Manufacturing Growing Exports in Timber, Machinery, Pharmacy Dynamics of manufacturing industries December 2005 = 100 New orders and capacity

7 Productivity and labour costs 2006 IV q = 100 Competetiveness Real exchange rate of Lats December 2006 = 100, accounted by PCI Business Environment Unfavourable for Employment Latvia DB 2010 DB 2009 Changes (183 countries) (181 countries) Total place Start up of business Building permitions Regulation of labour relations Protection of investors Tax administration Foreign trade Enforcement of agreements Closing down business Source: World Bank, Doing Business 13

8 Latvia s s Inhabitants Age Structure Vrieši Sievietes (2007) Source: Central Statistics Bureau of Latvia Employment and Employability Employment and Employability Support needed to flexible work organisation time and distance work, temporary work less unemployment and more people involved in the labor market Strengthening of internal demand minimum wage and untaxed minimum wage in accordance with consumption basket and consultations with social partners Review of Labor legislation more flexibility for employers during recession, state support to part time work and fiscal initiatives for investments in rise of employees qualification, and understanding from trade unions during collective bargaining Migration policy needed today to manage future needs of labor market Government initiatives to support CSR and action to fight shadow economy, support to social partners to develop collective bargaining mechanisms Requalification of unemployed can t be put on shoulders of employers, still requalification should be done in accordance with employers demand analytical capacity of social partners should be supported.

9 Facing State Budget Consolidation 2011 Mid-term perspective - Latvia continues with reforms and budget consolidation in 2011 and keeps target adopt euro in 2014 Promotion of fair competition & combating shadow economy (42%) Structural changes in tax system tax burden from labour force Budget consolidation and structural reforms function & administrative burden audit, one stop agency concept development, public companies audit, social budget sustainability review EU Structural funds are essential to develop infrastructure and attract investments Latvia is clean & green and has potential for green enonomy Future Steps: Strengthening Partnerships for Employment Strengthening preconditions 4 employability: Effective use of resources available for employers Change in attitudes, skills and knowledge of employee Ability of employee to prove the potential to employer Personal preconditions of employee and labor market Dialogue and communication - be active and even more active during crisis: Social partners with government and municipalities Support social partners guidance on company level Negotiate exit strategy between social partners and other NGOs Support of international organisations and practice sharing of member states

10 Thank you for the kind attention! Let s s unite our efforts and knowledge For growth and prosperity! Consultations with members: Public information: