Co-ordination of Workers’ Education and Consultation about

the Labour Market Regulations and Organising with a Special Focus on

Nordic Companies inEstonia, Latvia and Lithuania

Project PartnersMain partner organisations: ICFTU – International Confederation of Free TU; LO/TCO Bistånsnämnd (Sweden); LPSK – Lithuanian TU Confederation; LBAS – Latvian TU Confederation; EAKL – Estonian TU Confederation; TALO – Estonian TU for Professional Employees.

Other possible partner organisations:ETUC, GUF, Norwegian, Finnish, Danish TUs, other labour movement NGOs.

Project Co-ordination Office

ICFTU Vilnius Bureau

Jasinskio 9

Vilnius, Lithuania

E-mail: icftu.vilnius@takas.lt

Tel.: +370 699 05263

Fax: +370 52124788

Target SectorsCommerce;

Finances;

Services;

Printing;

Media;

Telecommunication;

And other interested areas having Nordic investments.

Expected Results• Trade unions have better skills in reaching out to the

unorganised workforce in the targeted sectors;• The workforce in the targeted sectors have a better

knowledge and understanding of their rights in working life;• Informational network for economical migrants / potential

migrants developed;• Better co-ordination in the Nordic-Baltic trade union family;• Trade unions have better skills in assisting in forming EWCs;• EWC information co-ordination network for employees from

the Baltic states.

Indicators• Increasing trade union membership;• Better interrelations in organising;• Better EWC participation in target sectors;• Many unions from targeted sectors openly sharing

information (update of the data base);• Further development of www.balticTU.net;• Number of EWCs being established, rising

interest/request from local (company) trade unions for information on EWCs.

Project Activities – Work planPhases Dates Venues Events

Preparatory Sept 5 Stockholm, SE Baltic Co-ordination meeting for Swedish TUs

Sept 15-16 Riga, LV Project Working Group meeting

Nov 10-11 Tallinn, EST Introduction conference for Nordic-Baltic partners

Main event Oct 27-29 Vilnius, LT “Workers’ Information” – seminar for trainers

Jan 20 Jurmala (?), LV TU leadership meeting with EWC representatives

April 14 Palanga, LT Seminar for TU activists in TransBaltic companies

Follow-up In June 3 meetings – Vilnius, Riga, Tallinn

Evaluation meetings of national working groups

Aug 24-25 Druskininkai, LT General evaluation conference for Nordic-Baltic partners

Aug 26 “ Project Working Group meeting

Background Information (LT)

• Total population of Lithuania - 3.5 million;

• Lithuanian labour force - 1.6 million;

• over two-thirds employed in the private sector;

• Lithuanian employee skills - 42% with higher education, 24% with specialised education

•Lithuania's labour costs are among the lowest in the European Union;

•Since July 1, 2005, the minimum monthly salary is 550 LTL (€ 160);

• the minimum hourly salary is 3,28 LTL (~ € 1);

• the average gross monthly wage in the 4th quarter of 2004 was 1,331 LTL (€ 385).

Background Information (LV)

• GDP growth (2003) 7.5%

• Inflation (2003) 2.9%

• Inflation annual average over 5 years 2.46%

• Accumulated FDI (2003) 2.8 billion

2004 2005

• Gross wages (LV) 207.56 241.54

• In the public sector 239.99 279.75

• Private sector 188.75 219.24

• Minimum wages - 80 lats (115 euros)

Background Information (EST)

• Total labour force (thous., 2004) 659.1

• Employment rate (%) 56.8

• Unemployment rate (%) 9.7

• Minimum wages EUR 172• Average monthly wage (gross) EUR 462

• The highest gross wage is in financial intermediation and the lowest in agriculture and hunting sector.

Countries having investments in the Baltic States (LT)

Top 10 Foreign Investors in Lithuania, 2004

• Telia/Sonera (SE/FI)

• SEB (SE)

• TDC(Tele Danmark A/S) (DK)

• Yukos (RU)

• Statoil ASA (NO)

• Phillip Morris (USA)

• Baltic Beverages Holding (FI//DK/SE)

• Hansapank/Foreningsparbanken (EST/SE)

• Vattenfall (SE)

• DFDS Tor Line (DK)

Lithuania's Top Five Investors (%), 01.07.2004

•Denmark 15,8

•Sweden 14

•Germany 9,3

•Finland 8,6

•Estonia 8,4

Most popular sectors: manufacturing, trade,

communications, finance.

Countries having investments in the Baltic States (LV)

Latvia's Top Five Investors(in mln. LVL)

1. Sweden - 243,5

2. Germany – 203,2

3. Denmark – 158,9

4. Finland – 156,3

5. USA – 123,2

Countries having investments in the Baltic States (EST)

FDI by country in 2005 (%) • Sweden 54,5 • Finland 19.9• United States 4,2• The Netherlands 2,8• Norway 2,4

Companies• Eesti Telecom (SE/USA);• Eesti Uhispanka/SEB (SE);• Hansapank (SE);• Kinda Nordic Tsement (SE/NL)• Sampo Pank (FI)

Nordic Enterprises in Estonia by sectors

42,1

19,2

14,5

8,1

4,3

11,8FinanceReal etateIndustryTradeTransportOther

Sectors & Biggest Companies

SERVICE SECTORSSERVICE SECTORS• Finances:

SEB – Vilniaus Bankas (LT; ~1600), Eesti Uhispank, Latvijas Unibanka;Föreningssparbanken/Swedbank – Hansa Banks in LT (~2500 employees), LV (~1200), EST (~2300).Nordea - LT (100 employees), LV (117), EST (142).

• Commerce:ICA RIMI – one of the leading retailers in the Baltics;Kesko (FI) – in Latvia and Estonia; JYSK – all 3 countries; Narvesen (NO).

• Hotels:Radisson SAS, Scandic, Reval Baltics;

Sectors & Biggest CompaniesSERVICE SECTORS (cont.)SERVICE SECTORS (cont.)

• Security:Group4 Falck, Securitas – 50 % of the market in the Baltic states.

• Telecommunications:Tele2, Ericsson, TDS Mobile International (DK) – all 3 countries;Telia/Sonera – Lithuanian/Estonian/Latvian Telecom; Omnitel GSM (LT) - 100 % of GSM companies are owned by Nordic.

MANUFACTURING SECTORSMANUFACTURING SECTORS• Building:

NCC; Constructus.• Textile & Wood:

Many small enterprises producing for Nordic companies (e.g. IKEA).

General TU membership in the Baltic countries

• LV - ~15 %

• ES - ~12 %

• LT - ~12%

TU membership in the Nordic companies

• ~ 15.000 members in the Baltic states:

–ES - ~8.000;

–LV - ~4.500;

–LT - ~2.500.

25 % of these members are in the

telecommunications sector.

Main sectors and membership in 3 Baltic countriesSector Country No. of

employees Members 05.2004

Members 11.2005

Finance all countries ~12.000 200 230

Security (Falck) all countries ~6.500 50 550

Commerce (RIMI & KESKO)

all countries ~10.000 150 250

Telecom all countries ~7.500 4.000

Brewery LT/LV ~1.200 500

Petrol (Statoil) all countries ~2000 400 500

Web Page - www.baltictu.net

Project ResultsWeb Page - www.baltictu.net

Information on:• Nordic-Baltic co-operation - links to trade unions,

commont projects (including ), etc.;• Data base on Nordic companies in the Baltic countries

and trade unions; • Migration - information for migrant workers prepared

by Nordic unions and governments;• Events in the framework of the project - calendar and

reports/photos from activities.

Project Results -Local Activities

There were different activities organised in:

Estonia• meetings with employees in Falck Security;• meeting with the employer in Falck Security;• meetings with employees in Kesko Food AS;• meetings with employees in Rimi;• Skanska shop steward took part at Skanska EWC as an

observer;• information material prepared and printed.

Project Results - Local Activities (2)There were different activities organised in:

Latvia• meetings with employees in Rimi;• meetings with the management of Rimi Latvia and ICA

Baltic; • meetings with employees in Kesko Food AS;• meetings with employers and employees in Nordea Bank• protest campaign against outsourcing in the telecom sector;• information material prepared and printed;• Meetings planned in the building, industry and food sectors.

Project Results - Local Activities (3)Lithuania

• meetings at workplaces organised by Lithuanian TU of Textile Workers and TU of Forestry Workers;

• distribution of organising leaflets in Rimi;

• meetings with employees in Falck Security;

• meetings with employers and employees in Nordea Bank;

• representative from Lietuvos Draudimas (Danish Codan) took part in EWC;

• collective agreement signed for subcontracting companies in the building sector (in co-operation with Danish SID).

Trade unions established in:• Falck Security Lithuania (DK)• Texdana; textile enterprise (DK)• Hansa bank Lithuania (SE)• Hair and Beauty sector (in co-operation with Danish DFKF)

Challenges (1)• sectoral competition;• not clear which union should organise new sectors;• different regional division to GUFs (Baltic countries

are in different sub-regions);• necessity of structural changes (strengthening of

regional structures, individual membership, flexible membership schemes);

• necessity to have closer co-ordination with Nordic TU secretariats;

• campaigning should be organised both in Nordic and Baltic countries at the same time;

Challenges (2)• necessity of sub-regional (Nordic-Baltic)

framework agreement;• 90 % of membership in Nordic companies are

from past times;• little/no membership in new sectors;• outsourcing;• subcontracting;• call centres;• migration.

Sources• http://www.investinestonia.com• http://www.lsd.lt• http://www.liaa.gov.lv• http://www.csb.lv/