Trade unions: minister of economic affairs holds back collective agreements

May 5, 2025

Trade unions: minister of economic affairs holds back collective agreements

05.05.2025

Trade unions accuse the Minister for Economic Affairs and Industry of holding back collective agreements and diminishing the role of the social partners. Minister Erkki Keldo (RE) acknowledges the differences of outlook, but says he fails to understand the accusations of lack of involvement.

Trade unions are unhappy with what they see as the government's move to diminish the role of the social partners. For example, the Trade Union of State and Local Government Employees (ROTAL) and the Federation of Estonian Energy Employees' Trade Unions (EEAÜL) cite an example where their proposals in the draft amendment to the Employment Contracts Act are being ignored and the head of government no longer considers regular meetings between the government, employers and trade unions to be necessary, arguing that the ministerial level is sufficient.

Also, according to ROTAL chairman Kalle Liivamägi, Minister of Economy and Industry Erkki Keldo has started to put the brakes on collective agreements.

"On three occasions, the minister has said that in the public sector, and I understand in state-owned enterprises, collective agreements will not be concluded under his rule."

Estonia has one of the lowest rates of collective agreements in the European Union. The EU's minimum directive stipulates that the conclusion of collective labour relations should rather be encouraged.

"There is a tendency in public administrations not to want to write in a salary number. On the other side of the coin, employers are starting to renounce collective agreements. This possibility exists on both sides. So 80 percent coverage by collective agreements, that target is now moving away."

Liivamägi gives examples of areas where collective agreements have not been renewed.

"For example, AS Welfare Services was the first to be taken over, then came the meteorological services, which were under the Environment Agency, and there too the collective agreement was terminated. Similarly, the collective agreement between the Rescue Agency and the Rescue Workers Union has now been terminated. There are more examples of these terminations than of new collective agreements," Liivamägi said.

Erkki Keldo, Minister of Economic Affairs and Industry, rejects accusations that the social partners have not been sufficiently consulted. On collective bargaining in the public sector, Keldo acknowledged that there are differences of opinion.

"The fact that we don't all see eye to eye is understandable. Asked about collective agreements, I was asked whether the government plans to go ahead with additional collective agreements in the public sector. I said frankly and honestly that with this government we will certainly not be entering into additional collective agreements in the public sector. But these collective agreements, such as the teachers' collective agreement and the doctors' and nurses' collective agreements, they are functioning systems and there are no changes coming to them."

Keldo also finds the accusations that the government is ignoring the proposals made by the social partners in the draft Employment Contracts Amendment Act puzzling, as the draft has been prepared for a long time and has gone through several rounds of coordination.

"Again, it is very strange to hear this accusation or accusation. Let me remind you that the process of making the Employment Contracts Act more flexible has been a very long process. It started already in 2021. It has been repeatedly discussed with the social partners in public," said Keldo.

Liivamägi, however, sticks to his guns, saying that they had no idea about the latest amendments to the Employment Contracts Act. While the changes were initially aimed at specific target groups, the new form of employment contract now applies to all workers.

"This last project, it was not presented to the trade unions. The trade unions read about it in the press. This is in no way appropriate for a democratic state," said Liivamägi.

Source: ERR

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