Business representatives have expressed concerns regarding the current structure of the labor code, arguing that it does not permit social partners to determine the Minimum Wage Adjustment (MMA). According to these sources, the current process for establishing the MMA is treated as a political decision by the government, limiting social partners to merely providing recommendations on the wage level. Addressing the concerns from the business sector regarding wage increases, Andrius Romanovskis, president of LVK, stated that if low wages were the primary driver of economic success, regional economic difficulties would not persist.
Consequently, LVK advocates for granting social partners the authority to negotiate and agree upon the size of the MMA directly within collective labor agreements. To facilitate this change, LVK proposes adopting a mechanism similar to that utilized in Estonia. This model involves establishing a national, bilateral agreement between employer organizations and employee organizations concerning the MMA.
Such an agreement would then be formally enshrined within a national collective agreement, thereby shifting the determination process from a purely governmental function to one involving direct negotiation between key stakeholders. These proposed revisions aim to give the labor market a more collaborative framework for setting minimum wage standards.
Topics: #business #mma #labor
