“Collective agreements help employees and employers not only to agree on better working conditions but also to build greater trust in the workplace. The more decisions are made through dialogue and by finding options suitable for both parties, the stronger and fairer the work culture becomes. Therefore, it is important that the number of collective agreements in Lithuania increases. I encourage employers and employee representatives to actively utilize the opportunities provided by the Labor Code, to more boldly initiate social dialogue, and to seek agreements that create greater value for both employees and organizations,” says the Minister of Social Security and Labour, Inga Ruginienė.
Read more The Kremlin’s move has puzzled: why is Crimea no longer on the new rubles?
According to the data from the Ministry of Social Security and Labour (MSSL) Collective Agreements Register, at the beginning of this year, there were 376 employer-level, 15 sector-level, 5 territorial-level, and 1 national-level collective agreements valid in Lithuania, as stated in the press release from the Ministry of Social Security and Labour.
Currently, collective agreements apply to 327 thousand employees, or, in other words, about a quarter of the country’s employees. Since 2015, the coverage of collective agreements has been increasing: from 14.8% in 2019, 21.03% in 2020, to 26% in 2026. The average in European Union countries is 56%.
The EU directive stipulates that member states where the coverage of collective bargaining does not reach 80% of employees must prepare and implement a national action plan aimed at steadily increasing the coverage of collective bargaining.
The majority of collective agreements in Lithuania are concluded in the public sector – about 69%, and in the private sector – about 30%.
This is especially popular in educational and training institutions, social service providers, as well as in culture, environmental protection, healthcare, transport, police, and other institutions, companies, or organizations.
Why is it important to increase the number of collective agreements?
Collective agreements provide the participants in labor relations – employees and employers – with broad opportunities to agree on working conditions relevant to them and satisfying the interests of both parties. The most important thing is that a collective agreement achieves a balance of interests between both parties. Social dialogue and cooperation undoubtedly increase labor productivity and competitiveness.
Read more Robertas Dargis. In search of a life without stress: how to find the magical Grail?
In collective agreements, the parties agree on various provisions, such as flexible and individual working time arrangements, study leave, social partnership support measures, overtime exceeding that established by the Labor Code, application of agreed guarantees and benefits when the company’s financial situation is favorable, and more.
The Labor Code provides for many cases where collective agreements can agree differently than regulated by the Labor Code, for example, regarding reimbursement of training costs, notice period for terminating fixed-term employment contracts, approval of work (shift) schedules, longer overtime duration, work on holidays and rest days, full compensation for damages.
Laws also provide opportunities for employers with collective agreements to apply certain tax benefits in some cases. For example, expenses incurred by the employer in providing benefits to their employees may be deductible from income if such benefits are provided for in the employer’s collective agreement and all employees of that employer have the right to use these benefits.
In collective agreements concluded at the national, sectoral, or territorial level, labor law norms may deviate from the rules established in the Labor Code or other labor law norms, except for rules related to maximum working and minimum rest time, conclusion or termination of employment contracts, minimum wage, employee safety and health, gender equality, and non-discrimination on other grounds, if the collective agreement achieves a balance of interests between the employer and employees.
Thus, in collective agreements, both parties to the labor relations have the opportunity to agree on conditions that are most acceptable to them.
Read more The elite of Lithuanian athletics will shake Palanga
