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According to Vinkele, the social budget is stabilizing and pension indexing seems possible, however, the company's problems may interfere with these plans.

If Liepajas metalurgs shareholders stand by and do nothing to prevent the company from collapsing, the state will also experience serious consequences, including worse budget deficit figures. Thus the state may not be able to resume pension indexing, said the minister. Liepajas metalurgs shareholders Sergejs Zaharjins, Ilja Segals and Kirovs Lipmans should be aware that the hopes of thousands of pensioners depend on their choices, emphasized Vinkele.

The Welfare Ministry and its institutions are preparing for the worst case scenario at Liepajas metalurgs since the company's shareholders have not displayed much sense or decency regarding the company's rescue so far, said the minister.

Vinkele estimates that around 50% of the company's 2,300 workers could lose jobs even if the company is rescued and restructured. Therefore the State Employment Agency is drafting plans to aid them.