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Lithuania: country report

Lithuanian Federation of Energy and Electrical Workers Trade Union, Lithuanian Trade Union of Health Care Workers, Lithuanian Trade Union Federation of Public Sector, Lithuanian Trade Union of State Employees

1. Are there major public service reforms taking place? If yes, in which areas? (e.g., health care, public utilities, public transport, education)?

Recently in the Lithuanian energy sector major changes in production as well as decentralization of production subdivisions and their reorganization into independent ones took place. Reforms were implemented in joint stock companies „Lietuvos Energija“, „Vakarų Skirstomieji Tinklai“, „Rytų Skirstomieji Tinklai“ and in Ignalina Nuclear Power Plant (INPP). First unit of the INPP was closed on 31 December 2004 after had been working for 21 year.

The reform in health care sector is proceeded, but it is conducted not the way patients and doctors would prefer it to be. The process of health care system reconstruction started in 2003, when Lithuanian Government approved the strategy of shake-up of the health care institutions/ establishments. The strategy was planned to be implement by two stages: first - till 2005; second - till 2008. During the first stage 23 hospitals were shaken-up, 50.000 square meters were reconstructed, 600 places of day static hospitals were established, the scope of ambulant and nursing services was increased, the average period of treatment in hospitals was decreased. The economical valuation of all changes is valuated 154 million Lt.

In the Lithuanian public services sector two reforms are and will be proceeded. First - garbage pickup and garbage arrangement works as well as equipment of new and modern garbage storages. Second - modernization of the supply of drinkable water and water treatment systems at the same time joining several water treatment plants.

2. What effects are they having on the financing, organisation and quality of services?

„Lietuvos Energija“ was the first to implement market economy in the Baltic countries electricity sector. Last year openness of the country market has reached 70%. Significant renovation of the electricity system and its development works were accomplished, i.e. implemented and renovated dispatcher‘s information collection system, control means of transmission network in different objects, renovated electricity transmission lines as well as reconstructed communication lines and transformers‘ substations. The readjustment of the Lithuanian electricity system to function in market economy was positively evaluated by the European Commission in its annual report on the implementation of market economy in gas and electricity sectors. Today the most progressive production of combined energy in Lithuania and Europe is the co-generating of heat and electricity energy production. Centralized heat supply systems are installed in all Lithuanian cities and towns as well as in the majority of villages. In cities round 90 % of population use the centralized heat supply system. In future the centralized heat supply system will enable to produce even more electricity and heat energy, will let use local fuel as well as will decrease the polution.

The financing has the major influence upon the reform of health care system. The financing still is behind the rise of GPD. Only in 2006 after the actions of protest of Lithuanian trade unions Government provided 22 per cent to healthcare system compared with year 2005.

In public service sector the growth and modernization of enterprises is financed locally as well as from EU funds.

3. Are any futher reforms planned?

In the nearest future the electricity transmission networks will be expanded and connected to the Polish electricity networks. The Lithuanian-Polish energy connection project is of special importance. i.e. the high-powered electricity line would inpower Lithuania and other Baltic countries to soundly decrease the energy dependence from Russia‘s joint electricity energy system. At the present moment „Lietuvos Energija“ together with the Latvian, Estonian and Finnish energy specialists is proceeding a joint international project the goal of which is to connect the Baltic countries and Scandinavian energy systems.

In health care system from 2006 the second final stage started. The main focus intended to the primal healthcare, to the expansion and decentralization of it. The special focus is concentrated on the increase of the voluntary health insurance, also on the development of the first aid services.

In the public service sector reforms will be further proceeded, while reforms in the public sector in the nearest future are not planned.

4. What are the key policy demands of organisations representing social partners, local government, NGOs, consumer organisations?

The work of energy specialists is very closely connected with the changes in production process, where our influence is very limited, especially in cases when substancial production changes take place, i.e. privatization, production readjustment, etc. The most painful phenomena in this reorganization process is reduction of staff. For this reason the number of Trade Union members is decreasing. On the initiative of our Trade Union a unique law „On the Extra Occupation and Social Guarantees for the Workers of INPP“ was passed. Only on the condition of this law, the workers of INPP, who have lost the employment, will get major redundancy pay.

The migration has made a particular affect on the health care sector. This was one of the reasons why we together with other organizations started active actions against the Government. First time in Lithuanian health system history the vote was open in every health care establishment. 72 per cent of voters said YES to the strike. Our and of course your pressure made results. The Government started negotiations and we made the AGREEMENT FOR A SALARY INCREASE FOR MEDICAL PERSONNEL till 2008. During the year 2005 salaries were increased two times: for doctors - 41 per cent; for nurses - 34 per cent. Average wage for doctors - 580 euro, nurses - 354 euro. It was planned that from May 2006 salaries are increased 30 per cent, and from 2007 - 20 per cent and 2008 - 20 per cent.

The Trade Union requirements in the public services sector are as follows: to say no to the privatization of water supply enterprises, to say yes to the retention of work places as well as the development and modernization of them, also the improvement of the services quality and the prices‘ regulation. The Trade Unions representing state employees and civil servants applied the Lithuanian Government and claimed for the raise of the minimum monthly wage (MMW), which will be increased upto LTL 600 (EUR 173,77) as from 1 July 2006, and will be applied for all employees, working in both state owned and private enterprises, institutions and organizations. MMW for the state employees had been not raised since 2002 and was LTL 430 (EUR 124,54); we also request the validation of the Bilateral Council in order to negotiate directly with the Government.

5. What kind of actions you have plan to organise?

The Trade Union of Energy Workers will do its best to improve collective agreements, emphasizing the solution of social matters as well as the development of social dialogue with employers.

The Trade Union of Health Care Workers will require the implementation of the agreement (as from 3 May 2005) regarding the salary raise for medical workers. If the agreement will not be followed, they do not discount the possibility of using strong measures, i.e. even going on strike.

Lithuanian Trade Union Federation of Public Sector will take all measures in order to stop the privatization of state water supply.

Lithuanian Trade Union of State Employees together with other Trade Unions, representing state employees and civil servants, does not discount the possibility to take part in protest actions in case the MMW will not be raised upto LTL 600 as from 1 July 2006 for all employees except state employees and civil servants.