Roundup: Lithuanian PM seeks calm amid protests against new labor code

Lithuania's new highly-debated labor code could be fixed in the event any mistakes are noticed, Prime Minister Algirdas Butkevicius said on Wednesday.

"If we notice the slightest of mistakes or see that certain laws worsen the situation of workers, then this will be corrected and amended," Butkevicius was quoted as saying by ELTA news agency when speaking after a governmental meeting.

In his words, there are no laws which should be considered as written in stone, therefore, every legal act can be amended.

The prime minister was speaking amid protests sparked by the country's new labor legislation adopted by the parliament (the Seimas) last week which, according to protesters and employees' representatives, beefs up employers' rights and significantly diminishes those of workers.

Left-wing students started a protest campaign and were joined by trade unions earlier this week.

Butkevicius promised to meet protesters gathered outside the governmental building in the nation's capital.

"My team has invited people to the government so we can hold round-table discussions," the head of government stated.

Opponents of the law argue that employees and employers are not equal, as proved by statistics of labor dispute commissions.

They criticize severance pay cuts when workers are dismissed on an employer's initiative, and say there are fewer guarantees for pregnant women, making it possible for employers to terminate contracts during an employee's pregnancy. Also, the legal possibility of fixed-term contracts for work of a permanent nature was also disapproved by workers' representatives.

However, employers and investors welcomed the new law, claiming it is an important step forward in terms of Lithuania's labor market liberalization.

Lithuanian business leaders interviewed by local website vz.lt stated the new legislation intends to increase flexibility and to strike a new balance between employer and employee interests.

According to business leaders, the code makes the scheme of annual workers' holidays clearer and liberalizes dismissal procedures.

"Hiring and dismissing workers is one of the main points for employers; in the meantime, we avoid employing a person even if we need him or her as it will be complicated to dismiss the worker in case he or she did not meet the company's expectations," Dalius Trumpa, chief executive of Lithuanian dairy company Rokiskio Suris, said in an interview with vz.lt.

In his words, the new legislation would reduce the number of disputes between employers and employees.

Antanas Emuzis, executive director of furniture manufacturing company Freda, noted employers would never dismiss "good workers who create the added value for the company."

"More liberal dismissal rules will not hurt workers," he stressed.

PUSH FOR VETO

Four Lithuanian trade unions have asked Lithuanian President Dalia Grybauskaite to veto the new code.

In their public address to the president, trade unions indicated that despite long discussions at the Tripartite Council and parliamentary committees, the new legislation only benefits employers and aggravates the situation of workers.

The trade unions said they were looking for a balanced approach, but that parliament had ignored this.

"We strongly believe that the adoption of the labor code will further increase social inequality, worsen (social) security of workers, and will not reduce the migration of the labor force from Lithuania," the unions said.

"After amendments adopted by the parliament, most workers can no longer even think about 8-hour working days, paid overtime, or the possibility of spending more time with their families; these rights will be taken away from them," the unions appealed to the president.

Meanwhile, the Investors' Forum, a business association of the largest and most active investors in the Lithuanian economy, asked the president not to veto the labor code.

Grybauskaite said last week she had seen a few clauses in the code that needed to be amended before she could add her signature. She plans to discuss the issue on Thursday with representatives from the Tripartite Council, which represents both employers and employees.

If signed by the president, the law will come into effect in 2017. Endit