Lithuania’s leading business representative body has said that the proposed new labour code is so dysfunctional and unsatisfactory it would be better if it was not be enacted at all.
“All the issues had been agreed on at the Tripartite Council – about 80% – but practically everything that was agreed has been ruined by the Parlimentary Social Security and Labour Committee,” said Jonas Guzavičius, vice-president of the Lithuanian Confederation of Industrialists (LPK), and the Tripartite Council chairman.
The Tripartite Council brings together representatives of government, unions and businesses in Lithuania’s institution for social partnership and dialogue.
Guzavičius said when the agreed Labour Code measures entered Lithuania’s parliament they suddenly took a different form. Prime Minister Algirdas Butkevičius has said the new Labour Code is scheduled to be enacted on July 1,
“If we do not have a good and acceptable model to all interested sides: business, politics, trade unions, it is better not to enact it at all. It is only worth enacting it if it is in line with the competitiveness of Lithuania and Lithuanian goals in the future. The new Labour Code and all the social model has an effect on companies that invest in Lithuania. If they see it is not worth investing here, all of us will lose out,” said LPK President Robertas Dargis.
The new Labour Code will come into force in 2017.