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Modernizing the social security systems: European unemployment re-insurance scheme, mobility and social security

On June 9-11, 2022, the international conference "Modernizing the social security systems: European unemployment re-insurance scheme, mobility and social security" was held in Vilnius / Lithuania. It was organized by LPS „Solidarumas“ (Lietuvos Profesinė Sąjunga „Solidarumas“), with the support of EZA and funded by the European Union.

Welcome speeches were delivered by Janina Švedienė, Vice-President of EZA. and Kristina Krupavičienė, Chairwoman of the Lithuanian trade union Solidarumas.

Mindaugas Lingė, Chairman of the Social Affairs Committee of the Seimas, who participated in the conference remotely, presented the amendments to the laws prepared by the ruling majority of the Seimas, aimed at improving the situation of employees. In particular, he singled out the amendments to the Labor Code adopted by the Seimas, which should help reduce psychological workplace violence.

Martynas Šiurkus, Vice Minister of Social Security and Labour, shed more light on the situation in Lithuania. He stated that compared to the European Union (EU) member states, Lithuania boasts the smallest unemployment gap between men and women in Europe, relatively low youth unemployment, and a much higher number of employees with higher education. Nonetheless, the number of lifelong learners in our country is much lower than in other EU member states. The Vice Minister presented the Ministry's plans to increase employment and accelerate wage growth by implementing programs that would raise the qualifications of workers and the unemployed. He noted that preparations are being made to promote the construction of social housing because there is a marked shortage of such housing compared to the other EU member states.

Ričardas Gaurys, Economic Governance Officer at the European Commission's Representation in Lithuania, shared relevant information about the evaluation of the situation in Lithuania presented by the European Commission that is not so favorable to our country. According to income inequality (GINI index), Lithuania in the European Union is surpassed only by Bulgaria, the risk of poverty and social exclusion is relatively high, especially among risk groups, social benefits are among the lowest in Europe, and their role in reducing poverty and exclusion is insufficient. According to the data of 2018, the coverage of collective agreements in Lithuania was in the second-to-last place among the EU member states and covered only 7.9 percent. of all Lithuanian employees (workers)! In 2019, state and municipal expenditures on social housing in Lithuania were almost six times lower than the EU average, and 2 percent of social housing could be described as emergency accommodation. R. Gaurys also explained what recommendations the European Commission made to Lithuania – reducing social inequality and poverty by increasing social benefits and improving the tax system so that after the removal of various benefits, more taxes would be collected into the state budget, and the rich would contribute more to the general welfare of the country through taxes. The European Commission also recommends improving the work of the Employment Service and ensuring better access to social housing and primary health care.

 On June 10, 2022, a session entitled ‘Changes in the labor market. Changes in the Lithuanian Employment Law. Employment of foreigners in Lithuania – legal and practical aspects. How can social dumping be avoided?’ was held, moderated by Jovita Pretzsch, Deputy Chair of the Lithuanian trade union Solidarumas.

Gytis Darulis, Deputy Director of the Employment Service, announced some good news that more and more foreigners from third countries were coming to fill job vacancies in the labour market, thus helping Lithuania deal with labour shortage. The data of June 1, 2022, show that despite Russia's aggression in Ukraine and entry restrictions from Belarus, about 91 thousand people from third countries have been employed in Lithuania. G. Darulis pointed out that there is a shortage of qualified workers in Lithuania, so the employment of qualified foreigners from third countries, in his opinion, does not create social dumping.

Ieva Piličiauskaitė, Head of the Labor Law Department of the State Labor Inspectorate, and Julija Miliun made a presentation on the legal aspects of employing foreigners in Lithuania and ensuring their rights.

Tadeusz Kucharski, Chairman of the National Section of Transport in the Polish trade union Solidarnošč (NSZZ), shared his experience in defending the rights of foreign truck drivers who were employed by Polish companies.

Karina Reisinge, project manager of the German Nell Breuning Haus, informed about the enormous scale of foreigners working in Germany. She spoke about the requirements for foreigners to get employment, among them the requirement to pass the necessary qualification and state language proficiency exams. The speaker also touched on the psychological and social problems of their integration.

The next session of the conference was dedicated to the situation of the labour market, which is the main concern of the Lithuanian social security system. The session was moderated by Daiva Kvedaraitė, project manager of the Lithuanian trade union Solidarumas.

Professor Boguslav Gruževski's presentation on the future of the labour market in Lithuania and all over the world was received with great interest. He pointed out that digitization and robotization were rapidly destroying jobs and, unless these processes were properly controlled, most people would no longer have a job, which is necessary for the development of a person and at the same time the whole of humanity. Otherwise, human beings would follow the path of degradation. According to prof. Gruževskis, the situation is made even more difficult by the fact that in Lithuania, as in the whole world, the income of the 20 percent of the top income earners has recently been growing three times faster than that of the remaining 80 percent of workers. Therefore, social inequality in the future is only doomed to grow. The professor proposed to implement the so-called inclusive economy (workfare) model which is being discussed in Europe. The said model would encourage human beings to work. |Professor also came up with an idea to change the tax system so that the business pays taxes depending on the number of persons employed. If the investment results in job losses, the company should pay higher taxes. However, he noted that this can only be achieved if an international agreement is reached.

Ken Hirose, a representative of the International Labor Organization (ILO) gave a remote presentation on the ILO Convention no. 102 on Minimum Social Standards, which was adopted back in 1952. and should be updated, although the importance of the convention remains.

Mariana Žiukienė, senior advisor at the Strategic Decisions Support and International Cooperation Group, Ministry of Social Security and Labour, made her comments regarding this matter.

Liina Carr, Secretary of the European Trade Union Confederation (ETUC), explained how the provisions of Chapter III entitled "Social Protection and Inclusion" of the European Pillar of Social Rights are implemented in Europe. She announced the good news that the Minimum Wages Directive, defining a framework for adequate statutory minimum wages where they exist and pushing member states to strengthen collective bargaining, had almost been agreed upon. The final text of the directive on adequate minimum wages states that statutory minimum wages could be considered sufficient if they are set at a level of at least 60% of a country’s median salary or 50% of the average. beneficial to trade unions and workers. This is why the directive requires all EU member states to aim for collective bargaining coverage of at least 80%. It also requires setting decent minimum wages to prevent poverty. Trade unions and workers will be the biggest winners once the Directive is transposed by EU member states.

In the afternoon, the session entitled: ‘Where should we look for security? Do social security systems guarantee human security?’ took place. It was moderated by Kristina Krupavièienė.

Eglė Laumenskaitė, Associate Professor at Vilnius University, revealed that every person is a part of a community and that a single person cannot solve all the problems he or she has to face. Only by working together with other members of the community does he/she improve, learn and seek new achievements. However, in recent times, communities have been increasingly replaced by the state, which cannot help a person in the same way that a community could. Therefore, according to the speaker, it is necessary to empower communities so that they build their capabilities and become stronger and at the same time could provide greater security to the entire society. Trade unions are communities, therefore its members should understand that a stronger trade union also strengthens them on an individual level.

Vilma Vorienė, a representative of the Palanga charity organization Caritas, spoke about her activities and assistance to war refugees from Ukraine. She expressed heartfelt thanks to members of the Lithuanian trade union
Solidarumas for the opportunity given to these refugees – they were accommodated in the holiday home of Solidarumas in Palanga and received all kinds of support to help them settle in Lithuania.

The last session of the 2nd day of the conference was dedicated to issues of social support systems (financial support and services) and long-term care. The session was moderated by Alma Neverienė, Chair of the National Section of Social Workers in the Trade Union Solidarumas. She introduced the challenges faced by social workers while providing social support and long care services.

Junior research associate Ingrida Grinevičiūtė presented a study aimed at determining the reasons why and how many persons who were entitled to social support refused it.

During the surveys, it became clear that some of these individuals simply were not aware of such an opportunity, others found it difficult to fill out the necessary documents, and the remaining ones were simply embarrassed to ask for it, even though social support is funded from the taxes paid by everyone who receives it.

According to the speaker, despite the researchers‘ original intention, it was not possible to determine the exact number of persons who were entitled to social support but did not receive it. However, the conclusions reached during the investigation are expected to help identify appropriate measures aimed at reducing the number of such persons, so there are as few as possible of them.

Svetlana Kulpina, Head of the Financial Assistance Department of the Ministry of Social Security and Labour, presented the issues of social support for low-income residents and ways to solve them, whereas Violeta Toleikienė, Head of the Social ServicesDepartment of the Ministry of Social Security and Labor, shed light on the reform of long-term social care.

Summary

Social security systems play a crucial role in the well-being of workers and their families. The rights of workers and their families are regulated by international documents and conventions. For example, the Charter of Fundamental Rights of the European Union, the European Pillar of Social Rights, ILO Convention No. 102 "On social security for all, including the self-employed", medical care, sickness compensation, unemployment benefit, retirement pension, cash payment in case of an accident at work, family allowance, maternity allowance, disability pension, survivor's pension.

Article 31 "Fair and just working conditions" of the Charter of Fundamental Rights of the European Union, p. 1. it is written that "Every worker has the right to working conditions which respect his or her health, safety and dignity." Article 33 of the same Charter, "Family and professional life" states that "the family shall enjoy legal, economic and social protection“, and that reconciliation between family obligations and professional life shall be sought. These provisions are also mentioned in Article 28 of the Labor Code of the Republic of Lithuania (hereinafter - DK). In 1952, the ILO adopted Convention No. 102 "On social security (Minimum Social Standards)", which Lithuania has not yet ratified. For several years, the ILO has shared the initiative for establishing the "floor" of social security on an international scale. The Lithuanian trade union Solidarumas believes that more should be done in Lithuania to disseminate information on advanced, socially responsible the policy of international organizations.

It is important to pay attention to the financing of the social system, the redistribution of the Community's domestic product, and the active participation of people in the labor market to ensure decent working conditions, remuneration, and social insurance.