The Republic of Latvia is located on the eastern Baltic coast, bordered by Estonia to the north, the Russia to the east, Lithuania to the south and Belarus to the south east. It covers 64 500 km2. The total number of population in Latvia was reported to be 2.31 mlj at the end of year 2005. The total number of employees in Latvia was 1.04 mlj at the same time, and about 5.6% of them were employed in health care and social services. There were 8.3% of employees reported for education and 5.7% for another public services.

A social dialogue among employers’ organisations, state institutions and trade unions at national level is organized and coordinated by the National Tripartite Cooperation Council (NTCC). Within the framework of the NTCC and its sub-councils there are different social issues reviwed in order to reach an agreement on the most appropriate decisions for all parties involved. Basing upon fuctional equality principles, the NTCC is composed of representatives of the government, the Latvian Employers’ Confederation, and the Latvian Free Trade Union Confederation.

Energy

To fulfill the obligations of the European Union directives about partition of production, transmission and distribution of energy, the restructurization of the stock company “Latvenergo” was began in year 2005. As the result of the restructurization, the stock company “Augstsprieguma tikls” was founded. The new-founded company’s business is transmission of electrical energy, thus providing for corporative clients an easy access to producers.

Latvian trade union “Energija” considers positively about foundation of this new independent stock company, because there was not cut-off of employees and clients reported an improved quality of services. The restructurization of distribution network was started in 2005 also, and it is going to be finished in 2007. As result of this restructurization, the establishment of network company responsible for unified distribution has been planned. This company will centralize functions which before the restructurization were at competence of several branches. The functions to be unified and centralized are: finance, accounting, human resources, and transport. An united clients service centre is being made. After the restructurization, seven districts will be founded and managed by centralized distribution network front office. Even if mentioned above centralization will improve services for clients, the union is concerned about potential dismiss of employees. The union constantly informs its members about their rights determined by national legislation and collective agreement.

Public transport

Situation is quite inimical to auto-traffickers in public transport sector (bus, tram, trolleybus) at this moment. Level of salary within the framework of normal working time is low and there is an exceeding overtime work. There is also the great proportion of deteriorate buses ( 47% are 12 years and older). Due to the Europe Councils (June 26, 1969) Regulation No 1191/69 about member states operation accordance their responsibilities that follows concept of conveyance int.al. by motorway, legislation in country has been change. Public Transport service draft plan for the law and Cabinet of Ministers conditions int.al. losses and expenses remuneration 100% to the tune that arose according to transportation. Great debates and so different points of view related to implementation of this regulation have been arisen, that’s why special work group has been developed to work with these normative documents. It is important that implementing this regulation, customer service quality, employment guarantees don’t become worse and level of work salaries increase.

Water

Water service is monitoring by public sector at this moment and these services are not stimulated for privatization. From EU has been invested (aprox. 70%) to set this household in many enterprises, especially to improve quality of water. Employers have been represented by trade union and organize regular collective negotiation about work salary, work safety and other working conditions. Trade union reminds to enterprises, self-governments and state institutions for necessity to sector to pay a special attitude to sector of this household because water is source for human life and health.

Gas

Gas sector has been privatized in Latvia. Two biggest shareholders in joint-stock company “Latvijas gāze” are RUHRGAS and GAZPROM. Regular social dialog and collective negotiations about workers social-economical guarantees are organized. There is planned and realized assemblage of natural gas gear every year that increase usage of natural gas and number of customers that use that product.

Health care

According to official statystics (http://www.csb.gov.lv/), there are 8 100 physicians (stomatologysts included) and 14 700 persons with another level of medical education in Latvia.

Until 1990 primary health care in cities and larger towns was provided in polyclinics. In rural areas, primary health care was provided by the local internist and nurse. The speciality of general practicioner (family doctor) was established in 1991, and was consecutively developed. There are 1230 general practicioners now, and they are managing primary health care associated with gatekeeping role on access to specialist services. This indicates that the first major reform in Latvian health care - the reform of primary health care - has been completed. However, some social anxiety has risen after introduction of this regulation because of experienced delay consulting a specialist. Patients are free to change their family doctor once or twice per year, to any other doctor within the administrative territory. In practice, only the inhabitants of cities have a real choice of practicioner, because there are few to choose from in many rural areas, particularly in Latgale, eastern part of Latvia.

The second major reform - the reform of hospital services - has been promoted as so-called “Masterplan” and is still ongoing. It is aimed to shorten the high number of hospital beds in the country (774 per 100 000 inhabitants), to concentrate modern medical facilities, and to reconstruct buildings of hospitals selected for leading role in the field.

All mentioned above was intented to improve the quality of health care services. However, this can not be reached without appropriate human resources. Reforming of health care in Latvia was started about 10 years ago and resulted in remarkable lack of skilled personell now, mainly because of persistent ignoring on human needs of employees. The average monthly wage of physician was only 291 LVL (1 EUR = 0.7 LVL) in 2004, and this was 1.4 times the average wage in national economy. For nurses, the corresponding figures were 169 LVL and 0.8, respectively.

Thanks to the Trade Union of Health and Social Care Employees of Latvia (LVSADA) call for strike and continuous negotiation with the Ministry of Health, the situation was improved in two steps. The first one was the governmental regulation of minimum wages depending on qualification in health care issued in 28.09.2004 (in fact, equivalent to general agreement) and upgraded in 2005. According to the last upgrade, the average wage of physician have to reach 440 LVL (630 EUR) at 01.07.2007, and this is 2.0 times the estimated average wage in national economy; for nurses, the corresponding figures are 264 LVL (377 EUR) and 1.2, respectively. As the second step, the governmental plan of action “On Development of Human Resources in Health Care” was adopted in 2005 and is going to be upgraded in 2006. The plan comprises following main tasks to be completed at year 2010:
 to meet the requirements for human resources in quantity, location and qualification necessary according to evidence-based forecast,
 to modify the national system of medical education according to demands of labour market,
 to develop an appropriate system of remuneration and social guarantees.

If the plan will not be upgraded and followed successfully, there will be a deficit of 1000 physicians and 2000 nurses in Latvian health care services in 2010 (according to optimistic scenario).

Social services

Since 2001 once in two years Latvia worked out a national action plans for combating poverty and exclusion. On 2003 Latvia worked out the Joint Memorandum on Social Inclusion and this document was adopted by the government. According to the Social Development Plan and the Law on Social Services and Social Assistance, the number of social workers with an appropriate education should be increased up to 1 worker per 3000 inhabitants in 2008.

Improving and developing the state policy within employment, social services (social care and social rehabilitation), social assistance, social insurance, and gender equality fields, as a result of welfare reform it is planned to improve:
 balance of social insurance budget,
 administration of social insurance fund,
 servicing of social insurance clients,
 quality of social services,
 information degree of the Parlament, the government and the population on the proceedings of social policy in Latvia.

Social policy issues apply to the whole society and therefore a cooperation between various institutions and resident groups has a substantial role. The LVSADA is negotiating with the Ministry of Welfare on working time, working conditions, and salaries for social care workers. There was the General Agreement concluded in 2004, and thanks to continuous collective bargaining it has been upgraded in 2005 and 2006.

The period of economical transition together with process of accession to the European Union have caused deep and lasting changes in life of Latvian people, especially challenging those socially underprotected and living in rural areas. When communities are “in poor health”, apathy, despair, mistrust and insecurity prevail, and sustainable development can not take place. In order to meet the goals of modernization of social care services, a special attention was paid to the aspect of added value in service quality and accessability at local level.

At present, there is growing number of successfully operating departments of social services, day-care centres, homes for homeless people and very young single mothers, and municipalities take part in providing services of institutions mentioned above. The reforms in social services will be continued, and all long-term state social care and social rehabilitation institutions will be reorganized in municipality institutions till end of 2007.

The LVSADA is going to express a certain concern in this regard because the regional reform is still not finished, and because the remuneration system for social workers to be applicated after the reorganization is still not established.