Estonia

Average gross hourly pay in health and social services is 36.9% higher in the first quarter of 2008 than it was in the first quarter of 2007 according to the latest figures from the Estonian statistics agency. This compares to the 20.5% increase in average hourly pay across the whole economy. Average hourly pay in health and social services is now 76.55 Kroons, just ahead of the 74.74 average for the whole economy. Read more at > Statistics Estonia (EN)

The minimum wage in Estonia is set to rise to 4,350 kroons (€278) in January 2008 following agreement between the EAKL trade union confederation and the employers. This represents an increase of 21% on the current minimum wage of 3,600 kroons a month. Although this is well ahead of inflation (8.5% in the 12 months to October) it is only just in line with increases in average earnings (20%-22%). This means that the minimum wage will remain at just under 40% of average earnings even after this significant increase. Read more at > Baltic Times (EN) And at > Statistics Estonia (EN)

On 12 July the interior minister Jüri Pihk and Kalle Liivamägi, chair of the ROTAL trade unions signed a social partnership agreement, the first in the Estonian state sector. The agreement covers consultations at all levels between the employers and trade union representatives. In the first stage they will meet in a number of different taskforces that will look at changes in working conditions, working time and salaries.

According to the EIRO industrial relations observatory, civil servants in Estonia are getting pay rises of between 20% and 100% with the higher increases going to the higher paid. Most low paid civil servants will get a 20% increase keeping their salaries in line with the national minimum wage. A collective agreement on civil servants’ salary hasn’t been reached since 2001, although lower paid civil servants have had pay increases in the intervening years. The current pay increases were negotiated but in the end the EAKL trade union confederation did not sign a collective agreement as the government implemented the increases before a final agreement was confirmed. Read more at > EIRO (EN)

Workers in homes for the elderly and children’s homes have just seen their monthly pay increase by up to 25%. From 1 January 2007 the minimum monthly salary for an activity instructor in a retirement home rose by €64 (25%) to €320. Meanwhile salaries for workers in children’s homes also went up by €64 with the lowest monthly rate now €288 a month.

A strike planned for 22 January has been postponed while further conciliation talks take place. One of our epsucob@ contacts in Estonia, Iia Täks, provided this report on the dispute over pay.

The main purpose of the strike is to achieve fulfillment of the effective pay agreement and pay demands of health workers’ unions and conclude a new pay agreement for 2007 and 2008. The previous agreement, signed in 2004, expired on 31 December 2006. In early January, in a bid to avert a looming strike, the employers from Estonian Hospitals’ Association offered to raise minimum hourly salaries to 90 kroons (5.7 EUR) for doctors, 46.80 kroons (3.0 EUR) for middle-level staff and 27.60 kroons (1.7 EUR) for care personnel in 2007. These sums would be increased by a further 20% in 2008.

However it falls short of the unions’ demands. The strike committee is demanding minimum hourly salaries of 100 kroons (6.4 EUR) for doctors, 60 kroons (3.5 EUR) for middle-level staff and 32 kroons (2.0 EUR) for care personnel in 2007. In 2008 health care workers want double national average pay based on 2007 data for doctors, 60% of doctors’ minimum pay for middle-level staff, and 58% of middle-level staff minimum pay for care personnel. In addition, health care professionals are requesting that the national budget for health care should be increased from 5,3 % of GDP to 6,3%, and demanding a special subsidy for young doctors and nurses to prevent them leaving the country for better-paid jobs abroad.

The strike committee says in explanation of the decision to take action that despite recent robust economic growth the state has failed to come up with enough resources to provide Estonians with healthcare to European standards. “Estonia has the shortest average lifespan and lowest ratio of health spending to gross domestic product of EU member states,” the committee says in a statement. “A large part of our young doctors and nurses leaves to work abroad.” Also the committee points out that health workers have repeatedly turned to the government with demands to increase investment in health and health care, set cost-based prices for medical services and use health insurance tax receipts for the purpose they are meant for and not amass undistributed profit in the Health Insurance Fund. “The government has so far done nothing to satisfy these demands” the strike committee says.

A planned strike by health workers on 17 January has won support from a wide range of trade unions. The dispute is over pay with unions demanding increases of around 40%. According to one news website the Estonian Hospitals Association has offered a 20% pay increase in 2007 and a further 20% in 2008 in order to avert the strike. Read more at > Baltic Times news site (EN)

The EIRO industrial relations observatory reports that health unions in Estonia are seeking a 30% pay increase. Figures indicate that while doctors earn around 1.5 times the average wage and nurses earnings are about the same as average earnings, care workers earn only 50% of the average wage. Health workers also have to rely on unsocial hours payments to supplement their low basic salaries. The health sector is facing a major challenge to deal with a shortage of workers as many doctors and nurses emigrate to find better paid employment. Read more at > EIRO (EN)

The emergency and related services in Estonia - the police, prisons and fire services - are finding very difficult to recruit staff because of low pay with many workers moving abroad. According to one survey 40% of police officers left the force because of low pay. Better pay for emergency service workers and other state employees is one of a number of demands called for by the ROTAL union and supported by EPSU in a letter to the Estonian Prime Minister. Read more at > EIRO (EN) And at > EPSU (EN)

At the beginning of March the council of ROTAL the main public administration union passed a resolution detailing a wide range of demands on pay, conditions and collective bargaining. It criticised the government for implementing decrees on the pay of state officials and workers in state institutions without taking account of any of the ROTAL’s proposed revisions. The union is also unhappy that public sector pay has failed to keep up with inflation and government proposals to cut income tax will hit the funding of state organisations. The resolution contains a list of specific demands on collective bargaining, social dialogue, minimum wage rates across the state sector, protection against inflation and the right to strike for state workers.

According to the EIRO industrial relations observatory employers in the health sector claim they cannot afford to pay the 2006 salary increases that were agreed as part of the two-year deal signed in 2004. Unions are worried that failure to pay the increases and the action by the employers to undermine the collective bargaining system will lead to increase emigration by healthcare workers. The 2004 agreement allowed for pay increases of 50% doctors, 56% for nurses and 43.7% for medical carers over the two-year period. Read more at > EIRO

Following discussions between the social partners the Estonian government has confirmed that the national minimum wage will rise by 11.5% in 2006 taking it to 3,000 EEK a month from 2,690 EEK. Although a substantial rise this is only in line with the increase in average earnings. The social partners agreed to a target for the minimum wage of 41% of average earnings by 2008 but this remains a challenge as by 2004 it was only 34% of the average and increases in 2005 and 2006 will not have closed the gap. Read more at >EIRO

The state sector union ROTAL and the EAKL union federation are continuing their efforts to achieve a reform of the pay system in the civil service. They highlight the fact that the government has not kept to previous agreements, that it unilaterally increases salaries of different categories of civil servants at different times and that there is a growing gap between the highest and lowest paid civil servants. Read more at > EIRO

State employees’ union ROTAL organised a picket at government buildings this month in protest at the treatment of border guards and particularly at low levels of pay in comparison to the highest paid workers in the service. Read more at > EPSU

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