Latvia

Latvia already had some experiences in what concerns to the application of the financial participation schemes, namely, in a situation common to many other countries, on the occasion of the privatisation of the companies of the state owned companies. In the privatisation process shares have been distributed to the workers of the companies. However, most of the workers sold their shares, once concluded the privatisation. Depending on the conditions, the workers were complied to sell the shares within the company or they were able to sell them freely in the market.

In what concerns the profit sharing schemes there are not many cases. The partners add that the profit sharing will have to be foreseen in the statutes of the companies, besides that the companies prefer to invest the profit instead of distributing it to their collaborators.

For the partners, the financial participation can be something important and interesting to apply. It could be beneficial for the increase of the productivity and it could be also positive as an instrument to guaranty that the qualified workers stay in the companies. This in a moment where Latvia is facing a problem of lack of qualified labour in the job market.

Adding to that, the union partner supports the development of financial participation; therefore the workers are always searching of more income. They stress, however, the difficulty to apply this to the real life. Despite agreeing with the application of financial participation schemes should be something to develop, they do not exclude the wage negotiation. The wages are the priority.

Another obstacle to focus concerns the workers' fear that the employer will not publish the data, avoiding demonstrating the profit in order to not distribute it.

In the trade union partner’s opinion the introduction of financial participation schemes should be foreseen by law, while the employers defend that the application, or not, of financial participation schemes should be on a voluntary basis, this is, according with the entrepreneur's will.

The trade union partner assumes this position because, frequently, the collective bargaining is unfeasible. Actually in Latvia, both the workers and the employers should change their attitude.

The employers’ support that the financial participation should be applied on an individual basis, the employer should be able to compensate a worker's productivity, and such not meaning discrimination.

Facing the possibility of replacing the wages’ increases by the application of systems of financial participation, both partners, and since it would be the best way to assure the work places and the eventual production dislocations, agreed, with the remark that they should, first, analyse the situation case by case.

For the employers everything begins with information, good wages and good examples. If there is information on the different forms and options, the employer will, then, be able to choose, with knowledge of the theme, which is the option that better combines with its objective.