Observation (CEACR) - adoptée 2010, publiée 100ème session CIT (2011)

The Committee takes note of the Government’s report and the information it contains in relation to the substantial institutional changes which took place in 2007 in the field of professional career services, in particular, the merger of the State Professional Career Choice Agency with the State Employment Agency, the creation of an advisory council at the State Employment Agency to formulate opinions and proposals to the Minister for Welfare regarding the implementation of employment policies and the adoption of amendments to the Act on Support for Unemployed Persons and Persons Seeking Employment which came into force on 19 July 2007 in order to specify the competence of the various ministries involved in the field of unemployment policy (Ministry of Economics, Ministry of Welfare, Ministry of Education and Science).

Articles 6 and 10 of the Convention. Impact of austerity measures on labour administration. The Committee recalls that in its previous comments it had welcomed among other things, the information provided by the Government on the criteria for selecting and remunerating public labour officials and the need to provide them with conditions of service and work which allow them to continue in their posts and improve their skills and qualifications. It had requested the Government to provide information on any change in the functioning of the labour administration system.

The Committee notes that in the context of the current economic crisis and an emergency agreement with the European Commission and the International Monetary Fund (IMF), Latvia has been one of the first European States to introduce austerity measures in 2009. It notes that according to publicly available information, on 9 June 2009 an agreement was reached on the creation of a government-level crisis working group with the involvement of the social partners. On 16 June 2009 the Parliament (Saeisma) adopted amendments to the Law on Insurance in Case of Unemployment which came into force on 1 July 2009 in order to increase state support to the unemployed. However, this measure was accompanied by a reduction in social guarantees: among other things, the Parliament adopted on 16 June 2009 the Act on State Pension and State Allowance Disbursement in the period from 2009 to 2012 which drastically reduced old-age pensions and benefits. This Act was subsequently declared unconstitutional by the Latvia Constitutional Court Decision No. 2009-43-01 of 21 December 2009 on the grounds that the measures in question were disproportionate and did not comply with the principle of protection of legitimate expectations. The Committee also notes that on 1 December 2009 the Saeisma adopted Latvia’s revised budget for 2010, which introduced significant tax increases and reduced government expenditure to 2004 levels. The Committee understands that both the Latvian Free Trade Union Federation (LBAS) and the Employers’ Confederation of Latvia have publicly expressed apprehension about the impact of these measures on the competitiveness of Latvian business and on employment levels in times of recession.

The Committee would be grateful if the Government would provide in its next report an assessment of the impact of the above measures on the application of the Convention, especially Article 6, according to which the competent bodies within the system of labour administration shall be responsible for the preparation, administration and review of a national labour policy, including a national employment policy, by among other things, studying and keeping under review the situation of employed, unemployed and underemployed persons and making services available to employers and workers and their respective organizations.

The Committee would also be grateful if the Government would indicate the impact of the above measures in relation to Article 10 of the Convention according to which the staff of the labour administration shall have the status, material means and financial resources necessary for the effective performance of their duties.

The Committee finally requests the Government to provide any additional legislative text adopted in the framework of the austerity measures with regard to labour market issues along with an evaluation of its expected impact.