Analytics, Labour-market, Law and Regulations, Lithuania
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 00:52
Lithuania may lose competitiveness if it abandons new labor code
"Policies under the 'New Social Model' would benefit
from adjustments. Abandoning the passed labor code following the presidential
veto would be a missed opportunity to achieve needed reforms," Christoph
Klingen, the IMF mission chief for Lithuania, said in a statement at the
conclusion of the visit.
"Given the procedural constraints, adopting a new code and expeditiously addressing remaining legitimate concerns of social partners through amendments appears preferable," he said.
Lithuanian Prime Minister Algirdas Butkevicius welcomed the
IMF team's recommendation and reiterated his opinion that the Labor Code should
be adopted, with additional issues to be discussed with social partners at a
later stage.
Lawmakers are expected to make a final decision this week on
the Labor Code, which has provoked a lot of discussions in the country.
President Dalia Grybauskaite and trade unions are calling
for more concessions to employees, while employers want the adopted Labor Code
to be enacted, saying that it would liberalize the labor market and lead to the
creation of more jobs.