CMNT_TITLE

Employment Policy Convention, 1964 (No. 122) - Lithuania (RATIFICATION: 2004)

Other comments on C122

Observation

2011
2009

Direct Request

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Articles 1 and 2 of the Convention. Employment trends. The Committee notes the Government’s report received in September 2010 which includes detailed information in reply to its 2009 observation. The Government indicates that as a result of the global economic crisis in 2008, the country’s economy and financial sector suffered from a slowdown in economic growth. Credit resources in Lithuania became inaccessible and the Lithuanian economy experienced a great overheat in 2004–08, resulting in a greater decline than other EU Member States. On 9 December 2009, the Programme of the fifteenth Government of the Republic of Lithuania was approved and noted that globalization, emigration of the labour force, in particular of high-skilled specialists, has become a threatening holdout for economic development; therefore the Government will put resolute efforts in restructuring the labour market and the related institutions to ensure successful economic development and growth for the benefit and welfare of the country’s population. The Government reports that the employment rate was calculated at 64.3 per cent in 2008, a 0.6 percentage point decline when compared to 2007, and decreased to 60.1 per cent in 2009 and 57.8 per cent in 2010. The Government further reports that the unemployment rate reached 13.7 per cent in 2009, twice as high as the previous year, and the Committee notes the Eurostat unemployment figures calculated this rate at 15.6 per cent in May 2011. The Government indicates that labour market policy was restructured so as to involve as much unemployed persons as possible in active labour market policy measures. The essential objective in 2009 was to stabilize the situation of the labour market and create employment opportunities for dismissed workers. The Law on Employment Support, adopted in 2009, aimed at creating conditions favourable to increase employment possibilities for individuals through active labour market policy measures such as retraining, subsidized employment, support for creating jobs, support for territorial mobility of the unemployed, job rotation, public works and self-employment. In 2009, the territorial labour exchange offices of the country referred over 47,500 persons to active labour market policy measures. Following the enactment of revised provisions of the Law on Employment Support, the Lithuanian Labour Market Training Authority ceased being the institution implementing employment support policy as of October 2010, and was replaced by the Lithuanian Labour Exchange and its 10 territorial labour exchange offices. The Lithuanian Labour Exchange prepares reports on the assessment of the situation of the labour market in Lithuania and labour market forecasts. It also provides statistical information to the Department of Statistics of the Government following surveys carried out by the territorial labour exchange offices. The Committee invites the Government to provide information in its next report on the extent to which active labour market policies are coordinated so as to effectively translate into productive employment creation. It also invites the Government to provide in its next report information and data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein by region, as a basis for deciding on employment policy.

Regional development. The Government reports that provisions of the Law on Employment Support, as of 1 August 2009, created preconditions for the implementation of the measures for supporting territorial mobility and promoting employment with regard to jobs available in remote locations. The Committee notes that unemployed persons who obtain employment in remote areas shall be paid compensation which covers some expenses, such as commuting and accommodation costs, as indicated in the legislation. Following redundancies at the Ignalina Nuclear Power Plant (INPP), the Government indicates that monitoring of the labour market in the INPP region is carried out on a continuous basis, through the organization of individual and group consultations with employers and jobseekers in the region, with the aim of further integration of the redundant INPP employees in the labour market. The Committee invites the Government to include in its next report information on specific measures undertaken to promote employment in remote areas of the country.

Small and medium-sized enterprises. Cooperatives. The Government reports that amendments were introduced to the Law on Small and Medium-sized Business Development in May 2010 aimed at reducing the administrative burden on businesses seeking to obtain state support. The Government further reports that a key priority for developing business at the European and national level remains to support small and medium-sized businesses, not only by encouraging the establishment of new enterprises but also by creating favourable conditions for existing ones. The Committee notes the measures targeting small and medium sized businesses include: the Entrepreneurship Foundation, a measure implemented in the third quarter of 2010 which provides training, loans and/or subsidies to persons starting their own business and enterprises developing their activities; the Open Credit Fund which will facilitate open credit line agreements with selected banks; and the provision of guarantees and subsidizing of interests and loans. The Committee invites the Government to supply further information in its next report on the impact of the law adopted in May 2010 on the promotion of small and medium-sized enterprises as well as on the measures adopted to support cooperatives on employment creation.

Corporate social responsibility. The Government indicates that it aims to promote the principles of corporate social responsibility among businesses operating within the country. The aim is to balance competitiveness with a safe and ecologically clean environment, strong social cohesion, transparent and ethical business practices. The Promotion of corporate social responsibility project in Lithuania was implemented following measures adopted under the 2007–13 Action Programme on developing human resources. Furthermore, on 12 January 2010, the Government approved the 2009–13 National Programme on Corporate Social Responsibility and its 2009–11 Plan of measures for its implementation. The Committee invites the Government to provide in its next report further information on the impact on employment generation of the abovementioned corporate social responsibility project and the 2009–13 National Programme on Corporate Social Responsibility.

Youth employment. The Committee notes that, in 2009, the labour exchange offices registered 79,600 young unemployed persons under the age of 25 which represented twice the number of persons registered in 2008. The unemployment rate for young persons reached 29.3 per cent in 2009. In January 2010, the number of registered young unemployed persons amounted to 39,000, three times more than in January 2009. The Committee also notes the increase in long-term unemployment among the youth (young persons unemployed for over six months) with 24.7 per cent of all unemployed young persons (9,500 persons) as of 1 January 2010, when the figures for January 2009 were as low as 3 per cent. The Government indicates that mismatches between the needs of the labour market and the available pool of skills or lack thereof are the essential causes of unemployment among young persons. The Committee invites the Government to continue providing information on the impact of the measures aimed at finding lasting employment for young workers.

Other vulnerable categories of workers. The Government reports that, in 2008, close to 50,000 unemployed persons over the age of 50 were registered with the labour exchange offices, and that this number increased to 71,900 in 2009. The Committee notes that 19,500 older workers were placed into jobs in 2009 and 10,600 older persons were referred to active employment policy measures, such as public works, subsidized employment and vocational training. The Committee invites the Government to continue providing in its next report information on the impact of the measures aimed at finding lasting employment for vulnerable categories of workers, such as the long-term unemployed and older workers.

Article 3. Consultation and cooperation with the social partners. The Government indicates that the social partners implementing the employment policy measures represent their interests by participating in the activities of the Republic of Lithuania Tripartite Council at the Ministry of Social Security and Labour. Cooperation arrangements are also signed between the institutions implementing employment support policy and separate sectors of the economy, associations, organizations and research institutions representing interests of various groups of residents. Moreover, the Lithuanian Labour Exchange cooperates on the basis of agreements with eleven employers’ organizations with the largest memberships in the country. In organizing vocational training of unemployed persons, the Labour Exchange coordinates the list of available training and retraining programmes with employers’ organizations. The Committee also notes with interest that tripartite commissions were established at the Lithuanian Labour Exchange and territorial labour exchange offices and consist of an equal number of employer, worker and state/municipal representatives. The Government states that the objective of the tripartite commissions is to submit proposals on defining the priority guidelines for the Lithuanian Labour Exchange on the expediency of drafting employment support programmes, on the implementation of employment support measures and provision of labour market services, as well as on the issues of increasing the efficiency of activities. Furthermore, the Government approved on 24 March 2010 the proposals concerning the reduction of unemployment submitted by the Work Group which include: the creation of privileges to employers hiring young persons for their first job; the simplification of the procedure for organising public works by municipalities; and the compensation of partial costs for the unemployed getting business licences through the mediation of the Labour Exchange. The Committee invites the Government to continue providing information on consultation and cooperation with employers’ and workers’ organizations in the formulation and implementation of employment policies in the meaning of the Convention.