Working Life Barometer in the Baltic Countries 2002 (pdf) - mol.fi

247 LABOUR POLICY STUDIES
Juha Antila and Pekka Ylöstalo
Working Life Barometer
in the Baltic Countries
2002
KAS TE PEATE VOIMALIKUKS, ET JÄRGMISE
AASTA JOOKSUL…
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-
,
- - -
VAI JUS PIELAUJAT IESPEJU, KA NAKOSAJA
GADA…
AR ATEINANCIAIS METAIS, JUSU NUOMONE,
GALI ATSITIKTI, KAD…
MINISTRY OF LABOUR
FINLAND
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Labour Policy Studies
No. 247
Juha Antila and Pekka Ylöstalo:
Working Life Barometer
in the Baltic Countries
2002
Ministry of Labour ISBN 951-735-742-7
Helsinki 2003, Finland ISSN 0787 - 9458

FOREWORD
The working life barometer describing the change in working conditions
in the Baltic Countries will be published as a volume of Labour
Policy Studies, a series of studies of the Ministry of Labour. It continues
the barometer published in 1999.
The working life barometer was used as a help to compare the change
in working conditions in different countries in 1996. Then the target of
the study was Tallinn, St. Petersburg and Helsinki. The working conditions
in the Baltic Countries change rapidly and therefore it is important
to gain accurate information on the changes now and in the
near future. The survey is a part of Finland´s co-operation with the
neighbouring areas.
The data of this study has been collected with specialists in Baltic
countries. The analysis and the report have been made by researchers
Pekka Ylöstalo and Juha Antila in the University of Helsinki.
Helsinki, March 2003
Harri Skog
Director-General

PREFACE
This research study is the second Working Life Barometer concerning the
Baltic nations. The previous one was published in the latter part of 1999 and
aroused great interest, not only in the countries under study but also elsewhere.
The information in the barometer was utilised in the EU, the OECD and the
World Bank, for example. The need to update the information was obvious,
because in some aspects the barometer has been the only available source of
data. The Finnish Ministry of Labour therefore decided to repeat the project.
The framework of this report is made up of the same themes as the preceding
one, so that it is now possible to compare the developments both within and
between the countries. In addition, the barometer has been further improved
by including new themes. In the case of Estonia, this is the third barometer
already. The first Working Life Barometer to be carried out in Estonia was a
comparative study of three cities (St. Petersburg, Tallinn, Helsinki) in 1997.
In Finland, the Working Life Barometer has been produced every year starting
from 1992. Many of the themes examined and questions used in this Baltic
project derive their origin from the Finnish barometer. We have not, however,
set out to survey the working conditions in the Baltic countries merely from a
Finnish context - rather, the questions have been discussed and modified together
with groups of experts in Estonia, Latvia and Lithuania. These working
groups have been able to put forward their views and their proposals for improving
the questions, as well as introducing completely new research issues.
Furthermore, group members have given important assistance in interpreting
the responses. We are very grateful indeed to all the members of all the working
groups for their expert contributions! We would particularly like to thank
Malle Kindel, Ineta Tare, Imants Lipskis, Aina Kromane, Gintare Buzinskaite
and Ramune Guobaite for acting as contact persons for the working groups,
and for all their help in general. Without the significant part they have played,
the project would not have acquired its present form. The essays on the different
countries, in the first part of the report, were written by Toomas Piliste,
Jevgenija Sviridenkova and Gintare Buzinskaite; a big thank-you goes to
them! We are also grateful to Sointu Häkkinen for her excellent co-operation.
Helsinki, March 2003
Juha Antila and Pekka Ylöstalo

SUMMARY
This research study is the second Working Life Barometer concerning the
Baltic nations. Its purpose is to examine the current state of Estonian, Latvian
and Lithuanian working life and recent changes in it. The results of the barometer
are representative - that is, they reflect the overall working life situation
in each of the countries. Besides monitoring changes within the Baltic
nations and making comparisons between them, it is also possible to compare
the results with those for Finland. The study is part of the co-operation with
neighbouring areas implemented by the Finnish Ministry of Labour.
The subjects of the survey were working people (both wage earners and entrepreneurs)
aged 16-64 years in Estonia, Latvia and Lithuania. It covered 900
working people in Estonia, 904 in Latvia and 909 in Lithuania. They were interviewed
in their own homes for the survey. The questionnaire form used in
the interviews had been prepared in co-operation by the project researchers
together with experts on working life from the countries under study. Local
market research institutes were responsible for selecting the sample and carrying
out the interviews.
The research report is divided into three parts. The first part contains essays
written by local experts with the purpose of giving an overall picture of the
countries to be examined. The second part is the actual Working Life Barometer,
which is based on the research data collected specifically for this
study. It comprises nine themes: unionisation and bargaining, salary and
livelihood, working time and contracts, stress factors, wage earners’ possibilities
of influencing their jobs, job satisfaction, telework and information
technology in working life, job-related training and development of work
organisations. The third part of the book is about current trends and future
expectations.
On the surface, observed from afar, the Baltic countries appear similar, but
there are considerable differences in the practices that they follow in working
life. In Estonia, the development in working life in recent years has been quite
steady and even; and it has, on the whole, been positive. The trend has been
towards ”normalisation”. This means, among other things, a decrease in ex-

cessively long working hours and thus in overtime; a decrease in work done in
return for black income; fewer delays in salary payment; and a narrowing of
the gap between men's and women's salaries. The relatively few possibilities
for wage earners to influence their own jobs constituted a significant problem,
however.
In Latvia, the changes in the last few years have been rather few. Trade union
membership is still more widespread in Latvia than in Estonia and Lithuania,
though the trend is downward. Long working weeks are still common in the
private sector, and the situation has not changed significantly in recent years.
As to employment relationships, the situation gives cause for concern. Only
slightly over half the working people have a permanent employment contract
agreed in writing. Already in the previous survey this proportion was smaller
than in the other countries compared, and now it has diminished still further.
Though various conflicts at the workplace have increased, the level of job satisfaction
is still quite good. Furthermore, the working people consider that
they have good possibilities of influencing their work tasks.
In Lithuania, a lot of changes have taken place in recent years. The developments
have been contradictory. Female private-sector workers experienced
working life as arduous and problematic; the greatest disadvantages affected
this group. In the public sector, on the other hand, satisfaction is considerably
higher - although there also, the men's working pace especially has clearly
intensified. Positive factors of Lithuanian working life include reduced salary
differences between men and women, increased possibilities for wage earners
to influence their jobs, and a decrease in illegitimate work agreements. Among
the problems are long working hours in the private sector, uncompensated
overtime, delays in salary payment, a considerable increase in work intensity,
and a low incidence of work-related training.
Keywords: The Baltic countries, quality of working life, transition of working
life

CONTENTS
INTRODUCTION ....................................................................................1
PART ONE
COUNTRY ESSAYS .................................................................................6
Estonia by Toomas Piliste ................................................................................ 7
Latvia by Jevgenija Sviridenkova .................................................................... 22
Lithuania by Gintare Buzinskaite ...................................................................... 46
PART TWO
QUALITY OF WORKING LIFE 1998 – 2002 .....................................65
Unionisation and bargaining ........................................................................... 66
Salary and livelihood ...................................................................................... 89
Working time and contracts .............................................................................. 131
Stress factors and conflicts .............................................................................. 150
Wage earners’ possibilities of influencing their jobs.......................................... 171
Job satisfaction.................................................................................................. 182
Telework and information technology in working life ....................................... 193
Job-related training............................................................................................ 209
Development of work organisations .................................................................. 214
PART THREE
CURRENT TRENDS AND FUTURE EXPECTATIONS .......................220
In what direction is working life changing? ....................................................... 221
Future expectations............................................................................................ 247
DISCUSSION: DIVERGING DEVELOPMENT TRENDS ...................254
Summary of key findings................................................................................... 265
REFERENCES .................................................................................................... 268
APPENDIX ......................................................................................................... 272
Regional profiles: Estonia, Latvia and Lithuania
Data collection and sample design
Questionnaires in English, Estonian, Latvian, Lithuanian and Russian

INTRODUCTION
1
Working life and the changes in it form a sensitive indicator of development in
a whole society. The economic and social statistics that are often used as indicators,
provide useful information on the macro level, but they seldom help in
observing single, quality-related changes within working life, not to mention
expectations for the future. To meet this need, the Working Life Barometer
was developed in Finland. With the aid of the barometer, working life and the
transitions in it have been observed in Finland since the year 1992.
There are two key words in the Working Life Barometer, quality and transition
of working life. The quality of working life refers to all working conditions,
from the basic safety to the relationships between the persons at work.
By monitoring the transition, descriptive information can be obtained about
the recent development, present state and future expectations of working life.
In present-day working life, personnel matters are emphasised, and therefore
accurate information about transition is needed. This will enable the development
and regulation of working life to be based on reliable data instead of on
general beliefs. Versatile comparisons make it possible to locate problem and
development areas as well as transition trends. The central idea of the Working
Life Barometer is to point out matters that need to be dealt with in depth,
in the form of discussions and seeking further information. In this way, the
Working Life Barometer can promote the development of working life quality.
SHAPING OF THE WORKING LIFE BAROMETER
The Working Life Barometer is influenced by a so-called ‘tradition of social
indicators’ (see Lehto 1996). After the Second World War, a need for describing
the social reality of societies was born in the western industrial countries.
This social reality could seldom be seen in statistics. Various statistical
ways of measuring this welfare - so-called social indicators - were developed.
With the help of these social indicators, descriptions of the reality of life were
produced in many different areas. These descriptions were also called social
reports. The main purpose of these reports was to form a tool for creating state
regulations (Hartikainen 1980, Allardt 1998). The increased regulation policy

2
of the state was part of the development of a welfare state; the science of social
politics was developed to protect people against the negative side-effects
of capitalist growth. The idea was both to decrease social problems and to increase
social cohesion and social capital in the society. Especially in the Nordic
Countries, the social reports had a normative goal: to produce descriptive
information about the real situation so that the decision-makers could act to
improve the conditions.
The measurement of welfare is such a difficult and, in part, a controversial
task. What should be measured and how? The social indicators movement was
divided into two groups, who emphasised different things. On one hand, there
was an objective school, which was strong in the Nordic Countries. It emphasised
the measuring of living standards and conditions (e.g. income, property,
health) using data on the material and economical life of the population. In the
rest of Europe and in the USA, a subjective school was dominant. It emphasised
more the individual’s own experiences and opinions concerning his/her
welfare. Due to these differences, the harmonisation of social reports has not
succeeded (Vogel 1989).
A Finnish sociologist, Erik Allardt, has made a kind of compromise between
objectivity and subjectivity. He emphasised both points of view in his analysis
of welfare (Allardt 1976). He drew up a fourfold table with standard of living
and quality of life on one axis (objective) and welfare and happiness (subjective)
on the other axis. From these combinations, Allardt formed three central
dimensions of welfare: having, loving and being. Having includes matters
connected with the living standard, loving means social relationships, and being
indicates possibilities to express oneself. Allardt’s concept of welfare emphasises
both objective and subjective points of view. It takes into account
material and economic basics, social relationships, and the individual’s possibilities
of giving expression to his/her own ideas and activities (Roos 1998,
25). Allardt’s idea is very versatile, and it can be summarised as follows: ‘A
being needs all things which he/she feels bad without’ (von Wright 1984, 25-
38).
Allardt’s concept of welfare forms the theoretical basis or a sort of a ‘metatheory’
for the Working Life Barometer. The Working Life Barometer studies
matters concerning the standard of living (e.g. salary and livelihood), matters

3
related to social relationships (e.g. unionisation) and matters concerning
possibilities to express oneself (e.g. possibilities to exert influence).
However, many themes of the barometer have been born out of a phenomenon
in working life and have no connection with theories of needs.
WORKING LIFE BAROMETER IN THE BALTIC COUNTRIES
The Working Life Barometer now realised in the Baltic Countries is a part of
Finland’s co-operation with the neighbouring areas. In 1996, the Working Life
Barometer was extended to the neighbouring areas for the first time. At that
time, material was sampled from Finland, Estonia and the St. Petersburg area.
As a final product, a comparative study of three cities (Helsinki-Tallinn-St.
Petersburg) called ”Työelämän muutos Suomessa ja lähialueilla” (Rahikainen
& Ylöstalo 1997) was published in addition to the Working Life Barometer of
Finland. The study attracted plenty of attention both in Finland and in Estonia.
In Finland, it was considered important to know more about working life in its
neighbouring areas. At the end of the 1990’s, it was decided in the Finnish
Ministry of Labour to conduct a study featuring three Baltic countries. The
first Working Life Barometer concerning Estonia, Latvia and Lithuania was
published at the end of 1999. The research report aroused a lot of interest, not
only in the countries studied and in Finland, but also in many institutions like
the EU, the OECD and the World Bank. On many research topics, there was
no other reliable information available except the barometer results. Largely
due to this fact, it was decided to make a new barometer after three years to
gauge what the situation is nowadays in these countries and what kind of development,
if any, there has been.
In this report, Finland is only referred to as an example - it is not actually
studied. The ‘Baltic barometer’ differs from the Finnish barometers in other
ways also. Some themes have been changed; and the levels of generality of the
phenomena are also clarified, in addition to the transition. Barometers often
concentrate on measuring changes. This is because people are very sensitive to
changes in phenomena and conditions. For instance, an increase in possibilities
to exert influence, or in the threat of receiving notice, is seen very easily.
But, for example, the facts of how significant the possibilities to exert influence
are, and at which level, are aspects that people have become accustomed

4
to; and, in fact, it can be very difficult to estimate the degree of possibility to
exert influence. Furthermore, it is almost impossible to interpret mere information
on transitions, if the level of generality and frequency cannot be estimated
even roughly. A very rare phenomenon may increase very quickly and
the changes can be very big. Again, a very general phenomenon cannot multiply,
even theoretically. Therefore, in the Working Life Barometer of the Baltic
Countries, the measurements of levels and changes in many of the aspects
have, for interpretative reasons, been dealt with for the different countries in
parallel.
The change of study themes has, in part, been influenced by the needs of the
countries. In each of the countries, a local team of experts has participated in
the project. These teams have given ‘internal’ professional and currently relevant
comments in the preparation stage of the research. The comments have
been taken into account when formulating the questions.
COLLECTING THE RESEARCH MATERIAL
This is a quantitative research study. The sampling method was a structured
face-to-face interview, carried out at the respondents’ homes between January
and February 2002. Both the sampling and the collecting were carried out by
local market research institutes: Saar Poll (Estonia), Latvijas Fakti (Latvia)
and Baltijos tyrimai (Lithuania). The method was to form a nation-wide sample
created by multistage stratified sampling. The aim of the sampling was to
get at least 900 answers in each country (reached sample). In Estonia, the
number of answers was 900, in Latvia 904 and in Lithuania 909. The results
can be generalised for the whole country in question. A more specific description
of the sampling, non-response and material representativeness is given in
the enclosed technical reports for each country (see the Appendix).
The target group consisted of working wage earners and entrepreneurs between
the ages of 16 and 64. Unemployed people were not interviewed. Since
the question of language is very important in this kind of research, the questionnaire
form was translated into the national languages and into Russian.
The original text was in English. The translations were checked by teams in
each country, and native speakers of each language checked the translations of
the English and Russian versions. Naturally, the Russian version is the same in

5
all three countries. All versions of the questionnaire form are enclosed in the
report.
STRUCTURE OF THE BOOK
The book consists of three parts. In the first part, background information on
the Baltic Countries is provided in essays about each country. The essays are
mainly descriptive texts written for persons who do not know much about
these countries or about their present situation and transition. The essays include
information on economy, labour and income distribution, and their purpose
is to form a basis for the analysis. The second part of the book is the actual
Working Life Barometer, which is divided into nine themes. The third
part is about current trends and future expectations. After these, there is a concluding
discussion chapter. In the Appendix, there are regional profiles, technical
reports, and the questionnaires.

6
PART ONE
COUNTRY ESSAYS

ESTONIA
Toomas Piliste
Reseach fellow, Faculty of Economics and Business Administration
Tallinn Technical University
BASIC FACTS ABOUT ESTONIA
7
Location: Northern Europe
Capital: Tallinn
Area: total: 45,227 sq km
land: 43,432 sq km
Land boundaries: total: 682 km
border countries: Latvia 343 km, Russia 339 km
Natural Forest, arable land, peat, oil shale, limestone, dolomite, clay, sand
resources: and gravel, sea mud, sapropel
Population: 1,361,242 (01.01 2002)
Population
growth rate:
- 0.4% (2002)
Life expectancy female: 76.0 years
at birth: male: 65.1 years
Ethnic groups: Estonians 67.9%, Russians 25.6%, Ukrainians 2.1%, Belarusians
1.3%, Finns 0.9%
Religions: Lutheran, Roman Catholic, Russian Orthodox
Languages: Estonian (official), Russian, Finnish, English
Government
type:
Parliamentary Republic
Independence: 24 of February 1918
Constitution: 28 of June1992
Suffrage: 18 years of age; universal for Estonian citizens
Executive chief of state: President Arnold Rüütel
branch: head of government: Prime Minister Siim Kallas
cabinet: Council of Ministers nominated by the prime minister and
appointed by President
elections: president elected by Parliament for a five-year term
Legislative unicameral Parliament or Riigikogu (101 seats; members are elected
branch: by direct, popular vote to serve four-year terms)
Judicial branch: Supreme Court (judges appointed by Parliament)
Inflation rate
(consumer
prices):
5.8 % (2001)
Labor force: 661 thousands (2001)
Labor force - by
occupation:
agriculture 7%, industry 33%, services 60% (2001)
Unemployment
rate:
12.6% (2001); 9.1% (3.quarter 2002)

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Industries: Food, textile, wearing apparel, wood and paper, chemical,
pharmaceutical, electronics, rubber and plastics, building materials
Agriculture -
products:
Cereals, potatoes, vegetables, pork, beef, poultry, milk, eggs, (fish)
Exports -
partners:
Finland 34%, Sweden 14%, Germany 7%, Latvia 7%, UK 4%
Imports -
partners:
Finland 18%, Germany 11%, Sweden 9%, China 9%, Russia 8%
Currency: Estonian kroon (EEK)
Exchange rates: Fixed , 1 EURO = 15,6466 EEK (01.01.1999)
Fiscal year: calendar year
ECONOMY
Through the whole period of regained independence Estonia has been
continuously pursuing liberal and open economic policy. In addition to the fact
that the Estonian kroon is pegged to euro the characteristic features of this
policy are balanced state budget and proportional income tax. Since 1995 the
Estonian economy has been growing. Both in 1995 and in 1996 GDP
increased by 4% and in 1997 even by 10%. Rapid economic growth (7%)
continued also in the first half of 1998. The Russian economic crisis that
began in summer 1998 brought about important changes in the economic
climate. In the second half of 1998 the growth of GDP was only 1–2% (in the
fourth quarter already minus 1%), and the growth for the total year was 4.6%.
The economic decline continued, and in 1999 GDP fell by 0.6%. This new
economic decline was caused primarily by the Russian economic crisis and its
effect on the enterprises that exported mainly to the Eastern market (especially
the food and chemical industries) and on the financial sector (three more banks
disappeared from the Estonian banking sector). In addition, the toughening of
the general global economic environment resulted in rising interest rates,
which curbed the growth in domestic demand. Economic growth was revived
in 2000, when GDP increased by 7.1%, and continued also in 2001, when the
growth of GDP was according to preliminary estimates 5.4%. The decline in
the growth rate was caused by lower foreign demand. The main driving force
in the growth of domestic demand has been investments.

9
Inflation, which slowed down after its very high level, has been increasing
again in recent years. While the consumer price index increased as compared
to the previous year by 11% in 1997, by 8% in 1998 and by 3% in 1999 then
in the year 2000 its growth was 4% and in 2001, 6%. The price rises of recent
years have been due to the rise in the administratively regulated prices of the
closed sector (electric power, heat, public transport) as well as of free-market
prices.
Privatisation as a political and economic reform has been in essence
completed in Estonia. The basic change in the ownership structure was made
in 1993–96. A lion's share of the state-owned enterprises were privatised in
1994–95. The government participates in business only through infrastructure
firms (power engineering), but also in this sphere privatisation is underway. In
other branches of economy the share of the government is negligible.
At the beginning of 2002 Estonia had a population of 1.361 million. The
proportion of females was somewhat greater (54%) than that of males (46%).
Estonians made up 68% of the population. Russians (26%) were the largest
minority. About 2/3 of the population live in towns and 1/3 in the country.
Rural dwellers are almost all Estonian. The majority of other ethnic groups are
concentrated in towns, mainly in the industrial regions of Northeast and North
Estonia.
DEMOGRAPHY
The population number in Estonia has been decreasing over the whole period
of regained independence. At the beginning of the year 2002 it made up 88%
of the peak level of 1990. In the first half of the 1990s the main role in the
diminishing of the population number was played by migration processes
(negative net migration reached a record high of 34 thousand persons in 1992),
but afterwards the role of migration has fallen notably. The Statistical Office
has not published data on migration since the year 2000 because these data are
incomplete and of low reliability. However, according to the last data made
public the net migration was estimated at -2496 persons in 1997, -1131
persons in 1998 and -616 persons in 1999.

10
Since the beginning of the 1990s also the natural increase of the Estonian
population has been constantly negative. When in 1998 the number of
registered deaths was by 7.2 thousand greater than that of births then
afterwards the negative natural increase has been in the range from 5 thousand
to 6 thousand a year (in 2001 for example 5.9 thousand). However, the
decreasing trend of births observed for more than ten years was replaced by an
increase in 1999 (12.5 thousand births against 12.3 thousand in 1998 ) and
also in 2000 (13.1 thousand births); still, in 2001 the number of births fell
again at the 1999 level.
In the 1990s a drastic change occurred in the distribution of births to legally
married parents and unmarried parents. In 1997 the number of children born
out of wedlock was for the first time greater than that of children born to
married parents. The difference has been increasing from year to year. In 2000
children born to legally married parents made up 45.5% and in 2001 only
43.8% of all births. This does not mean, however, that over half of the children
were born to one-parent families. Rather, this is a reflection of the situation
where common law marriage is preferred to legally registered marriage.
Mortality has been high and rather stable in Estonia. While in 1998 a total of
19.4 thousand persons died and the crude mortality rate was 14.0 then in 2001
the respective figures were 18.5 thousand and 13.6. The main causes of death
are the same as those typical in developed countries. A factor contributing to
the high mortality rate is the ageing of the population – the proportion of 65year-old
and older persons in the total population has been continuously
increasing and that of 14 years old and younger has been falling. A
characteristic feature of Estonia is a large difference between the average life
expectancies of men and women. In the year 2000 life expectancy at birth was
76 years for women and only 65 years for men. While women's life
expectancy at birth in Estonia is about five years less than in Scandinavian
countries then men's life expectancy is more than ten years shorter.
Considering the small number of Estonian population, its constant decrease
and ageing mean a serious demographic crisis. However, as we know Estonia
is far from being an exception in this regard. Although general improvement
of the living standards and more efficient family policy may have some effect

11
on demographic processes, in the longer perspective Estonia has to reckon
with serious problems on the labour market and hard choices.
Still, the number of working age population has been comparatively stable in
Estonia in recent years. According to the Statistical Office, in 1998–2001 it
decreased only by 4 thousand persons. This tendency is influenced also by the
step-by-step increase in (women's) pension age, which by 2016 should be 63
years for both men and women (men have already reached this). There have
been discussions about a further rise in the pension age.
LABOUR MARKET - EMPLOYMENT
The most dramatic changes in the Estonian labour market took place in
1993–99, when major structural changes occurred in employment, and
unemployment emerged and reached a considerable level. A certain
stabilisation followed in 1996–97 when the main indicators of the labour
market changed very little. This meant completion of the transition from the
planned command economy to a market economy in Estonia. The Estonian
economy and employment were seriously affected by the economic crisis in
Russia that started in early summer 1998. The whole manufacturing sector in
Estonia, but especially the food processing industry exporting mainly to the
Eastern market, was seriously hit. While at the beginning of 1998 about 640
thousand persons were still employed in Estonia (by 200 thousand less than in
1989) then the average number of employed persons in 1998 was 606
thousand. In 1999 employment fell to 579 thousand, reaching the absolute
minimum level – 572 thousand – in 2000. As the economic activity of the
population practically did not change (in 1998 the labour force participation
rate was 64% and in 1999–2001, 63%) unemployment increased. In 2001
employment, which had been continuously decreasing, increased for the first
time, reaching 577.7 thousand. However, of economic sectors only the tertiary
sector witnessed an increase (2%) in employment in 2001. In the secondary
sector employment did not change (although there was an increase in
manufacturing) and the primary sector had a 3% decrease. Employment
growth has continued also in 2002 and by autumn it had reached nearly the
pre-Russian crisis level of 600 thousand. Still, the average yearly number of
the employed is below 600 thousand in 2002. According to experts, positive
developments are expected to continue.

12
As the number of working age population has remained largely unchanged,
the trends in the absolute numbers of employed persons and employment rate
(population aged 15-64) have been similar. From as high a level as 78% in
1990 employment rate fell to 65% by 1996 and stayed at this level until 1998.
The Russian financial crisis cut the employment rate in Estonia to 61.6% in
1999 and to 60.7% in 2000. Increased employment in 2001 brought about also
a higher employment rate – 61.1%. It is quite probable that employment rate
will reach again 64–65% in the near future.
The employment rate of men has been notably higher than that of women (in
2001 respectively 65.2% and 57.3%). While in the first half of the 1990s the
difference between the employment rates of men and women decreased (in
1990 men's employment rate was 83% and women's, 72%), then since 1996
the difference has been almost stable.
The distribution of employment between economic sectors is increasingly
approaching the employment structure of developed countries. The proportion
of the primary sector (agriculture) is falling and the proportion of services is
increasing. The role of the primary sector in employment fell from 8.9% in
1998 to 6.9% in 2001 (in 1990, 20%) while that of the tertiary sector increased
from 55% to 60% (in 1990, 42.5%). The proportion of the secondary sector
has stayed around 33% (in 1990, 37.5%).
In 2001 the private sector accounted for 71% of employment. Its importance
has been constantly increasing; for example, in 1992 it employed 39% and in
1998 69% of all those employed. In manufacturing the private sector
accounted for as much as 98% in 2001 (in 1989, 9%). The role of the public
sector has been decreasing also in such areas as education and health care
though of course not at the same rate as in industry. However, in recent years
the growth in the importance of the private sector has slowed down
significantly. Obviously the general decline in employment has played a
certain role here.
Among all those employed in 2001 employees made up 91.7% while 8.3%
were entrepreneurs (including unpaid family members). The largest part of the
entrepreneurs were engaged in agriculture, which is where entrepreneurship

13
started 10 years ago. Of all those employed in the primary sector
entrepreneurs (farmers) account for more than a third (38.7%), at the same
time in the secondary sector they make up only 4% and in the services sector
7%. Over 60% of the entrepreneurs in the primary sector (agriculture) are selfemployed
persons with no hired employees and only a few use hired labour.
The (unpaid) labour of household members is used more often. The proportion
of entrepreneurs in employment has stayed practically unchanged during the
last five years.
LABOUR MARKET - UNEMPLOYMENT
The number of unemployed, the yearly average for which was 5.4 thousand in
1990 (unemployment rate 0.6%), increased by 1996–98 to a stable level of
65–70 thousand (unemployment rate 9–10%). As a consequence of the
Russian financial crisis a new rise in unemployment started in the second half
of 1998. In 1999 an average of 80.5 thousand persons were unemployed
(unemployment rate 12.2%) and in 2000 the number of unemployed was 89.9
thousand (unemployment rate 13.6%). Unemployment reached the peak of the
independence period in the first quarter of 2001, when the number of
unemployed persons exceeded 100 thousand and the unemployment rate was
as high as 14.8%. However, as already mentioned, in 2001 the situation
improved and unemployment decreased. The average yearly number of
unemployed was “only” 83.1 thousand and the unemployment rate was 12.6%.
Unemployment has continued to decrease also in 2002, being 60 thousand in
autumn (unemployment rate 9.1%). The last numbers certainly have a seasonal
character, but it is quite probable that also the average yearly unemployment
rate will fall to 9–10% in the near future.
In Estonia unemployment is somewhat higher among men (their
unemployment rate was 12.9% in 2001) than among women (12.2%). At the
same time women are more active in searching for jobs through labour
exchange than men are. In 2001, 54% of the unemployed women were
searching for jobs through labour exchanges while only 40% of the
unemployed men did. These figures show that searching for a job through
labour exchange is generally unpopular, especially so among unemployed with
better education and higher qualifications. At the same time, the higher the
educational level of labour, the less experience with unemployment it has. In

14
2001 the unemployment rate of the labour force having a higher education
was 6% and with primary education 22% in Estonia. In this respect Estonia
does not differ from the rest of the world.
Another typical feature is that unemployment among the young is about twice
as high as the average. The unemployment rate among the 15–24-year-olds
was 12% in 1994, 16% in 1998 and 22% in 2001 (26% among women). In
many cases young persons are not hired because of lack of skills or
insufficient command of the Estonian language. Often young persons become
unemployed right at entering the labour market since potential employees are
not satisfied with their skill or there is no demand for a given speciality or the
expectations of the job seekers are too high. At the same time, however, the
proportion of employees 30 years old or younger is very high in such highly
paid fields of activity as financial mediation and real estate.
Long-term unemployment has been constantly increasing in Estonia. When in
1994 persons out of job for a long period made up 40%, then in 1998 already
47% and in 2001 48% of all the unemployed. Long-term unemployment is an
especially serious problem in rural areas. It is a more serious problem among
men than among women: in 2001 long-term unemployed men made up 52% of
all unemployed men, the relevant proportion of women was 44%. In parallel
with increasing long-term unemployment also the number of persons who
have given up searching for a job “due to having lost any hope of finding a
job”, i.e. of the so-called discouraged persons has increased. While the number
of discouraged persons was 15.3 thousand in 1997 and 18.9 thousand in 1999
then in 2001 already 22.4 thousand. High long-term unemployment and
hopelessness are becoming the most serious social problems on the Estonian
labour market.
There is an about 2-fold regional difference in unemployment rates in Estonia.
For years unemployment has been the highest in Northeast and Southeast
Estonia where the unemployment rate is up to 20%. In recent years Central
Estonia has had also a relatively high unemployment rate – 14–17%.
Unemployment is the lowest on West Estonian islands where it is below 10%.
With certain allowances we can say that the farther we move from the sea the
higher the unemployment rate. In peripheral areas the problem of
unemployment has been constant. Very few new jobs are created in the areas

15
that lost the greatest number of jobs in the course of economic restructuring.
Agricultural employment is falling and investments are directed into other
fields. There is practically no regional policy.
In parallel with unemployment, which is on the average level of the European
Union, Estonia has shortage of qualified labour. Thus, in Estonia
unemployment is to a large extent structural. There is shortage of both highly
qualified white collar and blue collar workers. One of the reasons for
structural unemployment is that the educational system does not meet the
requirements of the labour market. Reforms of the systems of vocational and
higher education have not yet yielded the expected results. The number of
young people striving for a higher education has been constantly increasing in
recent years. At the same time, however, the number of young persons who
have left school right after finishing primary school or even earlier has also
been increasing. The situation where there are 40 applicants for a post of a
sales manager and 4 applicants for a salesperson's post when a new
supermarket is searching for personnel has becoming ever more typical.
LABOUR MARKET POLICY
About half of the unemployed register themselves officially as job seekers at
employment agencies – in August 2002 for example 44 thousand persons did
so. At the same time the average number of persons receiving unemployment
benefits was 20 thousand. A person can receive an unemployment benefit for
nine months (until 2000 for six months) and since 1999 the amount is 400
kroons per month. The qualifications for receiving even this extremely modest
benefit have been tough in Estonia. From the beginning of 2003 a new system
of unemployment insurance based on unemployment fund will at last be
established. The right to receive an unemployment insurance benefit is
enjoyed by persons registered officially as unemployed and who during the
last 2 years have paid insurance contributions for at least12 months (the
government started collecting unemployment insurance contributions at the
beginning of 2002). Persons who have paid insurance for less than 5 years will
get the benefit for 180 days – during the first 100 days 50% of the average
monthly wage and later 40%. Income tax shall be deducted. It will take 10
years for the system to be entirely launched – persons having paid insurance
for ten years will have the right to get the benefit for 360 days.

16
In addition to unemployment benefits state employment agencies offer job
seekers also certain measures belonging to active employment policy: support
for starting business (a single subsidy of 10 thousand kroons which the
government plans to raise to 20 thousand), training for labour market and
labour market support to employers (support for wages) who hire an
unemployed person whose competitiveness on the labour market is relatively
low (disabled persons; persons in the age group 16–20, mothers of young
children; persons who will be eligible to old-age pension in five years or less;
ex-convicts etc.). Quite a number of employers have found such support the
last means to save the business or an object of unethical manipulation. As the
support is limited to one year attempts have been made to regularly and
unlawfully replace less competitive labour force. The proportion of active
labour market measures in all expenditures made on the labour market (in
2001, 270 million kroons) has stayed around 20% in recent years.
In 2000 the new pension act created a totally new kind of pension in Estonia –
early old-age pension. This pension is meant for persons who have no job and
have less than 3 years to the regular pension age. Early old age pension is
lower than the regular pension by 0.4% for every month that the person retires
earlier and this reduction is permanent. In 2001 the new possibility of leaving
the labour market was actively used – 2400 persons retired early.
WAGE POLICY
The liberal wage policy chosen in Estonia during transition to market
economy has been constantly pursued. The government's interference in the
wage policy of the business sector is very small being limited to the
establishment of the minimum wage and fulfilment of its obligations stated in
the labour legislation. The latter consists mainly in providing internationally
acknowledged guarantees to employees, the weaker party in the labour market.
The state plays a more important role in regulating the pay of the employees of
the government institutions and other public institutions (whose payroll
expenditures are established by the law on the state budget). At the same time,
however, rules concerning their pay have had an ever decreasing role in the
actual formation of their remuneration. In reality the salaries in the public
sector are often formed similarly to the pay in the business sector, which has

17
increased the attractiveness and competitiveness of jobs in the public sector
on the labour market. During the last few years attempts have been made to
apply principles of management according to results? (performance bonuses)
in the public sector. A general reform of the wage system in the public sector
has been planned for the year 2003.
Since the beginning of 2002 the minimum wage for a full-time job established
by the government is 1850 Estonian kroons per month. According to statistics
this is the amount that 7% of the employees receive. Although as compared to
1998, when the minimum wage was 1100 kroons, this means a 1.7-fold
growth, the minimum wage makes up only 33% of the average gross wage in
Estonia in 2001. The income tax free minimum per year has increased from
6000 kroons in 1998 to 12 000 kroons in 2002 (that is to 1000 kroons a month)
or doubled. As earlier there is a flat 26% income tax on all earnings above the
income tax free minimum. This is paid by the employee (deducted from the
wages by the employer). In addition, the employer pays 33% payroll tax to
cover the state pensions (the first pillar of pension insurance) and health
insurance costs. Since the beginning of 2002 all employees pay 1% of their
gross earnings into the unemployment insurance fund, to which employers add
0.5% of the payroll. The percentages of these taxes may change in the future.
However, according to the unemployment insurance act they have to be in the
range from 0.5 to 2% for the employees and from 0.25 to 1% for the
employers.
In 2001 the average wage in Estonia was 5510 kroons a month. In 1998–2001
the average wage increased by 34% while the consumer price index increased
by 21%. As compared to the period 1995–98 the difference between the
growth of the average wage and CPI has decreased more than three times.
Wage increase, which decelerated until recently, has by today practically
stopped. While in 1997 the average wage increased by 18% and in 1998 by
14% as compared to the previous year, then in both 1999 and 2000 the growth
was 10% and in 2001, 12%.
The gap between the wages in Tallinn and Harju County surrounding the
capital and the rest of the country is still great. In 2001 the average wage in
Tallinn and Harju County was 6570 kroons. This is 1.7 times as high as in the
county with the lowest average wage; moreover, this is the only region where

18
the average wage is higher than the average for the whole country. The
average wage is the lowest in the predominantly agricultural region of
Southeast Estonia: 3885 kroons in Põlva County and 3878 kroons in Jõgeva
County. The gap has been more or less stable for years due to the uneven
regional economic development. Investments, especially foreign investments,
tend to concentrate into Tallinn and its surroundings. Among other factors the
absence of a uniform labour market has resulted in the fact that people from
practically all areas of Estonia go to work in Tallinn.
Average wages in different fields of activity differ in Estonia about four times.
The difference between agriculture, where the wage level is the lowest
(average wages in 2001, 3239 kroons), and financial mediation, where the
wage level is the highest (average wage in 2001, 12 249 kroons), has stayed
practically unchanged. The differences in the wages between sectors are
higher than they should be considering the differences between work and
working conditions. Also la perra vita in the sphere of education has not
changed. The average wage is lower than in education (where it was 4770
kroons in 2001) only in hotels and restaurants (3771 kroons) and in agriculture
(2823 kroons) and fishing (3936).
Certain fields of activity (especially construction and services) still pay a
sizeable part of the wages without paying taxes. The Statistical Office
estimates that the proportion of shadow economy is presently about 12–15%
of GDP in Estonia. Thus, the importance of shadow economy has fallen in
recent years to some extent. No doubt, amendments to legislation made in
1998 have played an important role here. The payroll tax collected was
personalised, that is the future pension of the employee depends on the payroll
tax paid on his(her) wages to increase the interest of employees in legal pay.
Still, hidden incomes in Estonia are high. This means that we have to be
critical about the above-presented proportion of employees earning only
minimum wages.
WELFARE
In 2001 the average monthly net income per household member was 2289
kroons in Estonia. Income from wage work was the greatest source of income
making up 63%. Next came transfers from the government – on average 25%.

19
A household member spent on average 2321 kroons per month. A third
(33%) of this amount was spent on food and 15% on housing. Obviously the
main explanation of higher expenditures than incomes is extensive use of
loans and leasing. As compared with 1996 the average income of a household
member had increased 1.6 times by 2001; during the same period the
consumer price index increased 1.37 times. In 2001 a household consisting of
two adults with no children had the highest income per member (almost by
25% higher than the average) while households of one adult and children had
the lowest income per member (77% of the average). The income of a
household member living in the country was 20% lower than in town. The
structure of household incomes has changed little in recent years. However, in
the income structure of a rural household the importance of incomes from
wage work but also transfers has significantly increased. Incomes from selfemployment
(agriculture) have markedly fallen. As to changes in the structure
of expenditures, the reduction of the proportion of expenditures on foodstuffs
from 41% in 1996 to 33% in 2001 is worth mentioning (at the same time 1.2
times more was spent on foodstuffs).
Inequality of incomes can be illustrated by the large difference between the
incomes of the highest income decile (tenth decile) and the lowest decile (first
decile). The difference between the first and tenth decile is 10-fold with
respect to total net incomes but with respect to incomes from wage work as
high as 20-fold. The greater is the proportion of income from wage work, the
higher is the income decile to which the person belongs. Three quarters of the
net income of the 9th and 10th income deciles consists of income form wage
work. Persons belonging to these deciles are typically (a) men below 65 years
of age (especially 25–34 years old); (b) employees of Estonian origin; (c) town
dwellers (mainly living in Tallinn and Harjumaa) and (d) with a higher
education and childless.
Estimates of poverty in Estonia may be quite different depending on the
chosen criteria. Estonian social scientists have estimated that 25% of the
households, 28% of all household members and even 38% of the children live
in poverty. At the same time, if we consider the official poverty line (500
kroons per household member after deduction of expenditures on housing
from net income) only 2% of the households, 3% of the household members
and 4% of the children live in poverty. The state pays social security benefits

20
proceeding from its economic opportunities to persons whose income is
lower than the official poverty line. In recent years the amount of social
security benefits paid has been on average 300 million kroons per year. The
need for social security benefits differs greatly by regions, depending directly
on the level of unemployment and being thus the highest in the regions with
the highest unemployment (Võrumaa, Ida-Virumaa) and the lowest in
Harjumaa. Of all households receiving social security benefits households
with an unemployed member make up 55%. Over half of the households
receiving benefits have children. Thus, unemployment is the most important
poverty risk. However, it seems that the so-called subjective poverty is
generally declining in Estonia. The proportion of those persons who consider
their incomes quite insufficient is decreasing and that of the persons who
consider their incomes sufficient is increasing.
EDUCATION
The structure of the educational system in Estonia was recently modified,
especially at the secondary level, to bring it closer to the educational systems
of developed countries and harmonise it with the Bologna Declaration.
Children start school at the age of 7, and it takes nine years to complete
compulsory primary education. General secondary education is acquired at
gymnasiums in three years. As a consequence of the reform of vocational
education, since the academic year 1999/2000 it is possible to continue studies
to obtain a secondary vocational education after completing primary education
(3 years at vocational schools) or after secondary school (2 years). As to
higher education, professional higher education can be acquired at
professional higher schools in 3 to 4 years and academic higher education at
universities. The first level of academic higher education is bachelor's studies
(3 years), which is followed by master's (2 years) and doctoral studies (4
years). Until 2002 bachelor's programmes in Estonia were meant for 4 years.
Since the academic year 2002/2003 new bachelor and master programmes
were launched based an an integrated 3+2-year system.
Estonia has joined the Bologna and Sorbonne declarations, which create a
uniform educational space in Europe, the Lisbon Convention on the
acknowledgement of higher educational certificates and certificates enabling
access to higher education in the European region and adopted an act on

21
acknowledging professional qualifications obtained in foreign countries. All
this guarantees that inhabitants of Estonia have equal ac
In the 1990s educational stratification in Estonia deepened: the number of
young people who had reached school-leaving age but had not obtained
secondary education (or primary education) increased, simultaneously the
number of those eager to acquire a higher education also increased. A drastic
rise in the number of students at higher educational level could be regarded as
the most important tendency in the second half of the 1990s; partly this was a
consequence of the development of private higher schools and universities.
While in 1995 Estonia had 7 universities with only one of them private then in
2001 the number of universities was 16 of which 10 were private. In 1995 the
total number of students at private higher schools was less than 5000, but in
2001 already over 12 thousand. In addition in 2001 public-legal universities
had over 17 thousand more students than six years ago and nearly 3000 more
than in 2000. The number of students at state universities paying tuition fees
has also been continuously increasing, and presently the total number of
students whose studies are not financed from the state budget makes up nearly
half of the total number of students. Higher education as a whole is
characterised by an increasing tendency towards social sciences, business and
law and deepening gender disproportions in favour of women. The reputation
of vocational education has remained low regardless of the reforms.
Sources
Estonian Economy: 2001 in review. Ministry of Economic Affairs. April 2002
Labour Force 2001. Statistical Office of Estonia 2002
Social Trends 2. Statistical Office of Estonia 2001
Statistical Yearbook of Estonia 2002. Statistical Office of Estonia

LATVIA
Jevg_nija Sviridenkova
Senior Desk Officer of Public Sector Pay Division
Economy Analysis and Fiscal Policy Department, Ministry of Finance
BASIC FACTS ABOUT LATVIA
Location: Eastern Europe, bordering the Baltic Sea, between Estonia and
Lithuania
Capital: Riga
Area: total: 64,589 sq km
water: 1,000 sq km
land: 63,589 sq km
Land boundaries: total: 1,150 km
border countries: Belarus 141 km, Estonia 339 km, Lithuania
453 km, Russia 217 km
Natural resources: peat, limestone, dolomite, hydropower, wood, arable land,
minimal; amber
Population: 2,366,515 (July 2002)
Population growth -0.77% (July 2002)
rate:
Life expectancy at
birth:
22
total population: 69 years
female: 75.17 years (July 2002)
male: 63.13 years
Ethnic groups: Latvian 57.7%, Russian 29.6%, Belarusian 4.1%, Ukrainian
2.7%, Polish 2.5%, Lithuanian 1.4%, other 2%
Religions: Lutheran, Roman Catholic, Russian Orthodox
Languages: Latvian (official), Lithuanian, Russian, other
Government type: Parliamentary democracy
Independence: 21 August 1991
Constitution: the 1991 Constitutional Law which supplements the 1922
constitution, provides for basic rights and freedoms
Legal system: based on civil law system
Suffrage: 18 years of age; universal for Latvian citizens
Executive branch: chief of state: President Vaira VIKE-FREIBERGA (since 8 July
1999)
head of government: Prime Minister Einars REP_E (since 7
November 2002)
cabinet: Council of Ministers nominated by the prime minister
and appointed by the Parliament
elections: president elected by Parliament for a four-year term
Legislative branch: unicameral Parliament or Saeima (100 seats; members are elected
by direct, popular vote to serve four-year terms)

23
Judicial branch: Supreme Court (judges’ appointments are confirmed by
Parliament)
International BIS, CBSS, CCC, CE, EAPC, EBRD, ECE, EU (applicant),
organization FAO, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFC, IFRCS,
participation: ILO, IMF, IMO, Interpol, IOC, IOM, ISO (correspondent), ITU,
NSG, OAS (observer), OPCW, OSCE, PCA, PFP, UN,
UNCTAD, UNESCO, UPU, WEU (associate partner), WHO,
WIPO, WMO, WTO
Inflation rate 2.5% (2001)
(consumer prices):
Labor force: 1.1 million (2001)
Labor force - by agriculture 15%, industry 25%, services 60% (2000)
occupation:
Unemployment rate: 7.6% (2001)
Industries: buses, vans, street and railroad cars, synthetic fibers, agricultural
machinery, fertilizers, washing machines, radios, electronics,
pharmaceuticals, processed foods, textiles; note - dependent on
imports for energy and raw materials
Agriculture - grain, sugar beets, potatoes, vegetables; beef, pork, milk, eggs;
products:
fish
Exports - partners: Germany 17%, UK 16%, Sweden 10%, Lithuania 8% (2001)
Imports - partners: Germany 17%, Russia 9%, Lithuania 8%, Finland 8%, Sweden
7% (2001)
Currency: Latvian lat (LVL)
Exchange rates: lati per US dollar - 0.6384 (January 2002), 0.628 (2001), 0.607
(2000), 0.585 (1999), 0.590 (1998), 0.581 (1997)
Fiscal year: calendar year
Speaking about changes in the working life in Latvia and analysing the
situation in respect to the political, economic and social criteria, as well as
assessing Latvia’s situation and prospects of human development, it is
important to take into account that Latvia continues to harmonize its
legislation and fulfil the requirements for entering the European Union.
Good quality of working life together with promotion of employment and
entrepreneurship are central to the Latvia’s employment strategy and social
policy reforms.
Latvia has made significant progress in the fight against corruption, which
remains a cause for serious concern. The legislative framework has been

24
improved, the institutional set-up has been strengthened and public
awareness and involvement of civil society are rising.
Latvia continues to observe human rights and freedoms. Latvia has
encouraged further integration of non-citizens into Latvian society by
removing language requirements in the election law, and increasing support to
facilitate the naturalisation process, coupled with the activities of the Society
Integration Foundation in this area. As of August 31, 2002 about 514 298
(22.0%) of the Latvian total population were non-citizens. The number of noncitizens
is slowly decreasing (from 24.6% in 2000 to 22.0% in 2002).
By August 2002, more than 56 000 naturalisation applications had been
received and 55 439 persons had obtained Latvian citizenship since the
beginning of naturalisation in 1995. Altogether, 7 540 children had been
granted Latvian citizenship by August 2002.
ECONOMIC DEVELOPMENTS IN THE CONTEXT OF
LATVIA’S INTEGRATION INTO THE EU
The preparation for participation in the EU internal market is well advanced
and Latvia has achieved a good level in this area. As regards free movement of
goods, the legal and institutional framework is generally in place. There has
been sustained development of the standardisation system. The reform of the
market surveillance system and its infrastructure, including on food safety and
in the field of public procurement, however requires further strengthening. The
process of bringing Latvia’s legislation and structures in relation to the free
movement of persons into line with the acquis 1 has developed satisfactorily,
although further efforts are required, especially on mutual recognition of
professional qualifications as well as on strengthening institutional capacity. In
the area of freedom to provide services, legislative alignment has advanced,
notably regarding financial services and banking, but further work remains
necessary regarding insurance and securities. In the area of capital movements,
legislative alignment is well advanced, but the process needs to be completed
as regards capital movements and payments.
1
The word “acquis” means the implementation of the European Union’s legislation, known as the
“Acquis communautaire”.

25
As regards customs, organisational restructuring and implementation needs
to continue, as it does for taxation, where legislation needs to be completed
on direct and indirect taxation. For both areas, Latvia has committed itself to
introducing adequate information technology systems so as to allow the
exchange of electronic data with the European Community and its member
states. Significant further work is required as a priority for these systems to be
operational by the date of accession.
General taxation principles in Latvia are determined in the law “On Taxes and
Dues”. According to the law, the state or the municipality imposes dues. The
state has rights to impose dues on a number of different objects.
The state taxes are:
1. Direct taxes:
Corporate income tax, including withholding taxes;
Personal income tax;
Social insurance;
Real estate tax.
2. Indirect taxes:
Value-added tax;
Excise tax;
Customs duties.
3. Gambling and lottery tax.
4. Natural resources tax.
Taxpayers are entitled to defer payment of the appropriate taxes for a period of
time from three months to one year subject to prior approval by tax authorities.
Duly unpaid taxes are subject to a late-payment fee that is 0.05 % per each day
behind the schedule. In addition, the unpaid amount is increased by the
refinancing rate determined by the Bank of Latvia. Late payment and
refinancing amounts shall be frozen when the total of both above-mentioned
amounts reaches the basic debt amount.
The amount of tax penalties depends on the kind of tax non-compliance. For
example, decrease of the taxable base is subject to a penalty of an amount
equal to that of the unpaid taxes, but a failure to file the tax declaration is
subject to a penalty double the amount of the unpaid taxes. The head of the tax
authorities may decrease the penalty down to 30%.

26
Once a year a taxpayer is allowed to make voluntary corrections in the
appropriate tax declaration. This results in cancellation of any penalties
pending for tax non-compliance.
Decision of the tax authority may be appealed with the Director of the State
Revenue Service within 30 days from the date the decision is received.
The macroeconomic policy mix has been adequate and managed to cope with
external shocks. The monetary framework, defined by the peg of the lat, has
been stable and predictable. Fiscal policy has been responsive to this
framework, by adopting a prudent stance overall, translating into relatively
low deficits on average, and flexibility in times of adverse economic shocks.
This was in particular the case in 1999 in the aftermath of the Russian crisis,
when automatic stabilisers were allowed to play freely and some tax arrears
were extended, leading to a temporary sharp increase in the government deficit
in 1999.
Price liberalisation was completed prior to 1997, and market forces determine
the majority of prices of goods and services. The proportion of items whose
prices are regulated has been the same for several years, at about 20% of
consumer price index, CPI. It is mainly prices for the services of public
utilities that are still regulated; e.g. electricity, gas, water and telephone
services. A cost-recovery mechanism is in place.
The share of the private sector increased rapidly up to 1998 and has continued
to increase since, but at a slower pace. Some 62% of GDP were produced in
the private sector in 1997, which had increased to 69% by 2001. In terms of
employment, the percentage is slightly higher.
The land reform is close to being completed, and about 90% of agricultural
lands are in private hands. A real-estate market exists and a system of
mortgage lending is fully operational. The privatisation of apartments is
ongoing. Of all apartments, some 95% are assigned for privatisation, and of
these about 77% had been privatised by 31 October 2001.
The privatisation process is nearly completed, but some large companies are
still state-owned. Privatisation of small and medium-sized enterprises was by
and large completed in mid-1998. However, the process has been slower since

27
then. Nevertheless, some progress has been achieved, and only a few large
enterprises remain to be privatised. The privatisation of Latvian Gas was
carried out in several stages and successfully completed in February 2002,
with two German and one Russian investors emerging as the major
shareholders. The conditions for the sale of the remaining state-owned shares
in Ventspils Nafta and the Latvian Savings Bank are being worked out. The
sale of Lattelekom is expected to resume as soon as the ongoing arbitration
case, concerning the curtailing of Lattelekom’s monopoly, is settled. An
important step forward was the sale of 83% of the shares in the Latvian
Shipping Company (LASCO) in 2002. The privatisation of LASCO started
more than five years ago, but was interrupted several times. A large stake,
close to 50%, has now been bought by Ventspils Nafta, which is itself partly
(32%) owned by the state. This transaction might have an impact on the scope
for selling the remaining state share in Ventspils Nafta. In mid-2000, it was
decided that the Latvian electricity utility, Latvenergo, should be temporarily
removed from the list of enterprises to be privatised. Latvenergo, as well as
the Latvian railway company, Latvijas Dzelzcels, is currently under
restructuring.
No significant barriers to market entry or exit are present. In 1999, a long-term
co-operation between the authorities and the business community, represented
by the Foreign Investors’ Council In Latvia, began. The aim was to identify
and remove obstacles and administrative barriers in the business environment.
Following the success of this work the co-operation has recently been
broadened to incorporate a wider range of the business community. New firms
have been created every year at the average rate of about 7% of total firms.
The rate is slowly declining, naturally as the total number of firms is steadily
increasing, and in 2001 the rate was about 6%. A new bankruptcy law became
effective in late 1996, and was followed by a peak in liquidations during 1997
and 1998. Almost 10% of the existing companies were liquidated both years.
Since then, about 2% of companies have been liquidated annually on average.
However, the lack of administrative and judicial capacity is still a problem,
and results in lengthy court proceedings and poor supervision of enterprises,
which in turn makes life easy for tax evaders and those who do not obey laws
and regulations.

28
The legal framework for enterprises is in place, although enforcement of
relevant legislation still poses problems. Several important steps have
recently been taken to create a comprehensive legal system. In July 2001, the
computerised national Land Book was introduced, strengthening the legal
certainty in the real estate market. In October 2001, a new unified utilities
regulator, the Public Utilities Commission, started its activities. Finally, an
important and long awaited change in company law was the new Commercial
Code that came into force in January 2002. The law simplifies legislation,
makes it more transparent, and brings it into line with EU requirements.
However, the business community still points at the lack of administrative
capacity, which undermines the enforcement of the legislation.
The financial sector is functioning well, although intermediation is still low.
On average, domestic credit to the private sector has increased by some 46%
annually since 1997. However, the increase has taken place from low levels.
Thus it only amounted to 28.6% of GDP at the end of 2001, roughly double
the ratio compared to that in 1997. 22 banks are currently operating in Latvia.
Although some of them are very small and operating in market niches, this
relatively high number of market operators guarantees a sufficient degree of
competition, as witnessed by the downward trend in spreads between interest
rates on loans and deposits. The spread for short-term loans and deposits has
significantly declined from 9.4 percentage points to 5.9 in 2001, and for longterm
loans and deposits from 7.2 to 3.6. Foreign involvement in the banking
sector has been large and stable during the last years. The privatisation of the
banking sector is almost complete and state ownership amounted at the end of
2001 to just 3.7% of total bank capital, whereas foreigners held 67.8%.
The financial sector has reached an adequate degree of stability. As a share of
total loans, non-performing loans have decreased from 10.0% to 2.8%. All
banks fully comply with the capital adequacy requirements. The capital
adequacy ratio was 16.2% on average between 1997 and 2001, but has been
declining and was 14.2% at the end of 2001. Supervision of the capital
markets has improved significantly. In July 2001, the new Financial and
Capital Market Commission started to operate. The commission unifies the
supervision of the financial and capital markets into one body, and has been
given far-reaching independence, similar to that of the central bank.

29
The non-bank financial sector is small, but slowly expanding. Stock market
capitalisation has risen from 8.4% of GDP to 9.3%. A bond market did not
exist in 1997, and its capitalisation only amounted to 5.7% of GDP in 2001.
Part of that rise is due to the issue of government securities aimed at
developing domestic financial markets, exceeding the budget financing needs.
However, the introduction of the second pillar in the pension system in July
2001 is expected to promote the expansion of the capital market in the coming
years.
In assessing the economical environment in Latvia it would be more expedient
to start the analysis with the assessment of GDP. As we have noted above, the
Latvian economy is steadily growing in the recent years. GDP, between 1998
and 2001, has gone up by 5.2% in the average per year.
Only in 1999 did development deviate from this trend, as the economy was hit
by the Russian crisis, but the economy succeeded in recovering rapidly.
However, strong private consumption and investment have lead to a large
current account deficit. It has, nonetheless, been covered by foreign direct
investment (FDI) to a large extent. In 2001, FDI fell considerably, but that was
due to a single transaction by a domestic enterprise and it should not be too
emphasised.
GDP of Latvia in 1996 – 2001 period has increased approximately twice faster
than in the EU member states and one and a half times faster than in the EU
candidate countries. The reforms carried out in the last decade have started to
yield results. However, there is still a lot to be done to reach the level of wellbeing
of western counties. According to the data of Eurostat, GDP per capita
in purchasing power parity in Latvia in 2001 equalled to 33% of average in the
EU (26% in 1996).
The general government deficit has varied somewhat over the years, with a
peak in 1999. Since then, however, it has decreased every year. Recent
economic developments have, by and large, confirmed these trends, although
the weakening of external demand has started to influence exports. The budget
law for 2002 provides for an increase in the budget deficit to 2.75% of GDP.
So far, however, the actual deficit has been much lower, than that and in
agreement with the IMF, the target for the year has been set to 1.8% of GDP.

30
The aim of economic policy of the government is to achieve sustainable,
stable and balanced economic and social development. Current scenario for
macroeconomic development in the medium term is based on the assumption
that the government will continue to implement the policy aimed at
maintaining that stability in the future. The cornerstones of this policy are
strict fiscal and monetary policies. The policy’s scenario envisages stable
growth, which will insure gradual convergence of Latvian economy with the
most developed European economies. In case of favourable conditions
Latvia’s potential for growth is even bigger; however, taking into account the
risk that could imperil faster growth, the scenario envisages average GDP
growth of 5.7% up to the year 2005.
Main economic trends
1998 1999 2000 2001 2002* 2003* 2004* 2005*
Growth rates, % over the previous period
GDP 3.9 1.1 6.6 5.5 5.5 5.8 5.9 5.9
Inflation 4.7 2.4 2.6 2.0 2.9 3.0 3.0 3.0
Employment
Real personal
0.6 -0.5 0.0 0.1 0.1 0.1 0.1 0.1
income 6.1 3.3 3.4 4.8 4.9 5.1 5.2 5.2
% of GDP
Current account
deficit
* - forecast
-10.6 -9.6 -6.8 -6.4 -6.1 -5.8 -5.2 -4.6
Economic growth in Latvia has been achieved in conditions of stable
macroeconomic environment. The exchange rate of the lats (LVL) for many
years remains stable against the SDR currency basket. This eliminates
uncertainty, reduces currency risk and provides businesses a stable base for
planning and price setting. The Bank of Latvia has decided to keep this
currency peg until the accession of Latvia into the European Union.
The average increase of consumer prices has not exceeded 3% for the last
three years, and in 2001 it shrunk to 2.5 percent. Tendencies in changes of
prices of the last years show stabilisation of the overall inflation level, as well
as reflect the structural changes in the relative prices due to the observed EU
convergence processes.

31
The most significant factors that affected inflation in Latvia during the last
years are:
monetary and policy implemented by the Central Bank;
dynamics of prices of imports;
changes in administratively regulated prices;
changes in fuel prices;
dynamics of population incomes.
Since the beginning of last year inflation was mainly affected by changes in
prices of marketable goods, namely, the dynamics of prices of food products.
In 2001 increase in food prices constituted about 80% of the total annual
inflation. At the same time the increase in prices of services and non-food
goods constituted only about 15% of the annual inflation. Rapid increase in
food prices was mainly impacted by the growth of imports prices (sharp
increase in meat and vegetable prices in Europe in last spring), as well as the
reduction of local supply due to unfavourable weather conditions.
Contrary to the tendencies observed during the previous years, the growth of
administratively regulated prices did not seriously affect the total inflation.
Last year increase of administratively regulated prices increased the overall
level of prices only by 0.1 basis points and together with a more significant
decrease in fuel prices it ensured that the level of core inflation was higher
than the level of total inflation (core inflation is estimated by deducting
indirect taxes, changes in administratively regulated prices and fuel prices).
During the last months the core inflation did not exceed the total inflation,
even though it came very close to the level of total inflation. The level of core
inflation was mainly determined by changes in food prices, which also
explains the fluctuations of the variable within the given period of time.
One of the most important factors restricting inflation within the group of
marketable goods is a fixed exchange rate. In order to ensure price stability,
the Bank of Latvia has chosen to peg the Lat to the SDR currency basket.
Selection of a fixed exchange rate policy has several explanations: firstly, high
share of imports in the Latvian economy (imports are approximately half of
GDP). Second, consumer goods account for about 30% of imports and thus,
prices of imports significantly influence the overall price level. Third, imports
account for approximately 50% in the structure of production costs in industry
and agriculture and in the structure of consumption. For that reason the fixed

32
exchange rate ensures stable prices for imports and contributes to the overall
domestic price stability. Thanks to the strong trade relations with the EU
countries, and the fixed exchange rate, it is anticipated that the prices of
internationally traded goods in Latvia will grow at approximately the same
rate as in the EU countries. However, it has to be noted that the impact of price
changes of marketable goods upon the total inflation may change in the
nearest future, when the Latvian consumer prices adjust to the relative price
structure of the EU.
As to the changes in service prices, it has to be noted that lately their impact
on inflation has been much lower than several years ago when the growth of
service prices was the decisive factor determining inflation level. Currently
overall service prices are rather stable, mainly due to slower growth rates of
administratively regulated prices, and it can be expected that this tendency will
prevail until the end of the year. In 2003 it is expected that the role of service
prices in determining inflation will grow and that will be additionally
stimulated by increase of excise duties, as well as introduction of
differentiated VAT rates on certain services. According to the law “On Value-
Added Tax” VAT shall be charged on any supply of goods or services or
import of goods, as well as self-consumption. VAT rates are 18 % or 0 %.
New VAT rate will be enforced from 1 st January 2003. There will be 9% tax
rate for:
supply of medicine and medicine goods;
training and science literature, juvenile literature;
mass media;
supply of hot and cold water, sewerage, garbage disposal;
supply of special products for infants;
burial services.
Administratively regulated prices will increase in line with the changes in the
purchasing power of the population and no significant price increase can be
expected within this group.
In accordance with the macro-economic development scenario, considering all
the above mentioned, the medium term inflation level will not exceed 3%, and
gradual levelling of the Latvian and EU average and relative price levels can
be expected.

33
So far economic development has promoted mainly the growth of the real
wages and productivity and its impact on the growth of employment was
limited. It was to a large extent affected by the difference between demand and
supply in the labour market created in the transition process, as well as
significant regional divergences. As implementation of various reforms
(mainly in the area of labour force training and regional development) requires
a longer period before these reforms will considerably influence labour
market, it is forecasted that in the medium term economic development will be
mainly ensured by the productivity growth rather than employment. However,
it is expected that in a longer term the growth of economic activity will have
an increasing impact on the growth of employment.
It is expected, that thanks to the growth of economic activity and
implementation of various economic policy measures (approximation of
vocational education to demand, stimulation of economic, social and regional
mobility of the labour force, measures to support small and medium
enterprises etc.) unemployment rate will decrease in the medium term. There
are considerable unemployment rate differences in various regions of Latvia,
and therefore, unemployment problems are closely related to the regional
development. Reduction of unemployment will be also promoted by various
regional policy measures of the government.
DEMOGRAPHIC CHANGES, MIGRATION AND
EMPLOYMENT IN LATVIA
The door to the 21 st century has opened, and we have just passed the entrance
of the new century. People will anticipate that future society will be quite
different from the 20 th century. While we certainly hope that tomorrow will be
better than yesterday, many still remain uncertain as to what will happen in
future. For instance, can globalisation contribute to the reduction of poverty in
the developing world? Amidst such uncertainty, some changes seem to be
foreseeable with reasonably accuracy. That is “population changes”.
As a result of low birth rates, comparatively high death rates and negative net
migration, population in Latvia will gradually decrease. The population in
2005, as compared with 2001, will shrink by 48 500 (-2.1%). The persistently
low birth rate is one of the main reasons for the ageing of the population.
Nevertheless, as the retirement age will be gradually increased, the working-

34
age population will not fall that fast and the number of pensioners will
increase only slightly.
Demographic indicators in Latvia are among the worst in Europe. In the last
decade natural growth of population was negative. According to the
Population Census 2000, the population of Latvia as of March 31, 2000 was
10.8% smaller than in 1989. As a result of migration, the number of people
during the period went down by 189 thousand persons.
At the same time the negative natural growth of population has decreased only
by 8.3%. Lately, the negative growth rate again has a tendency to increase.
The number of newly born in 2001 was by 2.9% smaller than in the preceding
year and the number of deceased – by 2.4% more. Thus, the negative balance
of natural growth of population during the year has gone up by 11.4%.
Birth rate in 2001 was the lowest among the EU candidate countries and death
rate – the highest among the EU member states and candidate countries.
There is an on-going trend of reduction of the average size of a family mainly
due to the dramatic decrease of the number of children. Almost half – 47.9%
of all families are families with one child, 36.1% – families with two children.
The number of incomplete (one-parent) families is rather high – 32.5%,
consisting of a mother or a father with children.
To reach positive changes in demographic processes the Ministry of Welfare
developed the action program for improvement of demographic situation. The
main goal of the program is to secure a qualitative and quantitative
reproduction of people. Strategic directions in implementation are
strengthening of families and promotion of birth rate, raising educational and
cultural levels. Feasibility of the objectives is linked with economic growth of
the country, increase of employment, perfection and further growth of the
system of science and education.
The number of employed persons has not practically changed, however
unemployment rate indicators have improved as the number of economically
active population has gone down mainly due to two reasons – decrease of the
number of population and increase of the number of full time students.

35
In general, there is a tendency in nearly all sectors of national economy that
growth does not have a great impact on employment. With the development
and strengthening of the private sector also competition becomes stronger
forcing companies to look for ways of decreasing costs. With the improvement
of management styles, many companies try to cut down labour costs, which
often result in reduction of the number of workers. These processes are
objectively determined for the Latvian economy given its generally low level
of productivity. Therefore, also future growth will be mostly based on increase
of productivity rather than on the number of workforce.
Employment rate is considerably different in different regions and cities. It is
the highest in Riga region and the lowest in Kurzeme and Latgale.
Measures aimed at stimulating employment and growth of economic activity up
to now have not resulted in the expected positive changes in many rural areas.
The most difficult situation remains in Latgale (Latgale include the following
major towns: Balvi, Daugavpils, J_kabpils, Ludza, Kr_slava, Preili and
R_zekne) where unemployment in some regions exceeds 20% of economically
active population. In Latgale GDP per capita is also the lowest. It is twice lower
than in Riga region. This is because of concentration of industry in Riga region
and its surroundings. Therefore the economically stronger regions have more

36
favourable conditions for investment and thus development, as they
generally have better infrastructures, qualified labour, access to manifold
services, etc.
Growth of personal income is very uneven, polarisation of material well-being
is increasing. Average disposable income per household member in 2000
equalled to 69.19 LVL. The lowest disposable income still is in households in
Latgale – by 29% lower than average in Latvia.
Trying to find a long-term solution for poverty elimination the government in
2000 approved the Strategy for Poverty Eradication. The Strategy sets the task
to improve quality of life of poor people and people with low income level and
till 2015 to bring down the share of poor people to 10% of the total Latvian
population. The basic benchmarks for poverty eradication were adopted,
defining tasks and measures in the areas of economy, employment, regional
development and social welfare.
In February 2000 the Cabinet of Ministers approved the concept developed by
the Ministry of Welfare – “On Minimum Income Guarantees for Poor People”
to ensure all people a guaranteed and uniform for the whole state minimum
level of income of 21 LVL (initially). This provision is also included in the
draft law “On Social Services and Social Assistance”, which is being reviewed
by Saeima (Parliament of Latvia). The draft law also outlines principles of
social work, social care and rehabilitation and rules for granting and receiving
social assistance.
REGIONAL POLICY IN LATVIA
Historically Latvia was divided into four regions (Vidzeme, Kurzeme,
Zemgale and Latgale), each characterised by specific ethnic and economic
peculiarities. At the moment the Latvian administration is divided into about
594 local authorities on two levels:
1. 26 districts (rajoni) and 7 republic cities;
2. 70 cities and towns and 491 rural communities (pagasti).
Although Latvia is a relatively small country, there are considerable
differences between regions. These regional disparities are mainly evident in

37
the concentration of industry and unemployment. As a rule, the south-east is
less developed than the central regions. Urban structures mainly exist in the
capital city Riga, which is the biggest city (743 269 inhabitants in June 30,
2002) in the Baltic states.
Regional development policy in Latvia should be paid more attention. During
the fifty years of Soviet occupation in Latvia, certain economic sectors were
developed under the auspices of the centralised planning system without any
economic justification and despite the fact that Latvia had neither necessary
production factors, nor a market for the goods that were produced. This led to
the creation of an artificial and deformed territorial structure for the economy;
the most important consequences of which are the following:
1. an excessive concentration of residents and production processes in the
Riga region;
2. a relatively low population density and poorly developed production
processes and infrastructure elsewhere in Latvia;
3. significant differences in the standard of living in various areas of
Latvia, which can be determined on the basis of per-capita income,
unemployment levels, development of the social and production
infrastructure, and other indicators.
As a result of the territorial deformation mentioned above, about one third of
the entire population (2.36 million inhabitants in July, 2002) lives in the city
of Riga. In addition, an excessive concentration of production, social
infrastructure as well as scientific potential has occurred in the district of Riga.
In June 30, 2002 the capital city accounted for 52 % of the industrial output,
56 % of all capital investments were effected in Riga. The unemployment rate
in this city (3.8 %) is close to half the national average (7.8 %). While
unemployment in the Saldus district is 6.3 %, it is 27.4 % in the Rezekne
district.
Issues of regional development have become especially important in recent
years, with the establishment of the market economy. Market forces have led
to a polarisation of different regions in the country. If regional policy
instruments were not applied, the differences between economically stronger
and weaker regions would not only be preserved, but might in fact increase.
This is because the economically stronger regions have more favourable

38
conditions for investment and thus development, as they generally have
better infrastructures, qualified labour, access to manifold services, etc.
Therefore, since 1996 the government has devoted specific attention to
regional economic development: conceptual documents describing regional
economic development policy, as well as the specification of regions that need
special support, were elaborated.
In economic policy, the important objectives are economic growth, stability
and justice. In terms of regional policy these objectives are achieved by:
1. creating incentives for development in the more backward regions of a
nation. The state creates opportunities for mobilising resources in these
regions, which should promote economic growth for the benefit of the
entire nation. The general aim is the promotion of the development of
specific regions according to their potential abilities and resources,
devoting particular attention to business development in backward
territories to create additional jobs and, by extension, sources for
improved welfare.
2. providing similar (although not equal) living conditions for the
population, irrespective of the region in which they reside; the task of
the state is to reduce the negative effects of those factors that diminish
the opportunities and attractiveness of a certain area, for which the
people who live and work in that region are not responsible. Here the
central aim is the equalisation and improvement of living conditions for
residents throughout the country.
Regional policy is implemented under the “Regional Policy development
guidelines”, ratified by the Cabinet of Ministers in 1995. Also, a new law on
regional development was passed in 1997. Furthermore, identification criteria
for support areas have been developed. The disadvantaged regions identified
shall get financial assistance as of this year. In the Regional Development Act
it is clearly formulated that regional development policy shall be an integral
part of the national development policy. In addition, guidelines on national
land use should be established for the whole country.
Latvia’s regional development initiatives are implemented through sectoral
ministries. While the Ministry of Environment and Regional Development
deals primarily with spatial planning, the Ministry of Finance handles regional

39
policy. The Regional Development Agency, uniting representatives from all
concerned ministries, participates in the drafting, co-ordination and
implementation of regional development initiatives.
However, Latvia’s regional policy expenditure is limited. The state and the
local governments have limited budget resources, which means that the range
of assistance is also restricted.
HEALTH CARE SYSTEM IN LATVIA
Health care reform has been launched in Latvia in 1998 with the support of the
World Bank. The goal of the reform is to create a patient-oriented and rational
health care system that would be available for everybody. The new system
will be based on primary health care and prevention and also on a universal,
effective and uniform system of health insurance. However, the positive
results of the reform are not yet appreciable. Health care system has a wornout
and EU quality standards non-compliant hospital infrastructure. Only 20-
50% of hospitals are equipped with the necessary medical equipment and only
one third correspond to the adopted construction and safety standards for
medical equipment. Placement of this equipment is not rational. In future the
re-profiling of hospitals is planned, creating health and social care centres,
which will perform the social care of patients and treatment of patients with
chronic diseases.
The transition process in Latvia has promoted significant changes when
former economic and social fundamentals were replaced by many new
constructs, above all the re-introduction of democratic accountability, the
development of the practices and institutions of civil society, and the evolution
of openness and transparency in public administration are steadily replacing
them. The dislocations resulting from the transition continue to have a
profound impact, not least on the health of the people; this is only now
recovering to and beyond pre-1991 levels. Until recently, organized efforts to
promote better health have played a small part in Latvian society. Now, as
social recovery and economic development have become more established,
recognition of the potential contribution of public health and health promotion
has grown in parallel.

40
The key elements of health promotion, which the government of Latvia try
to implement, are:
analysis of policies in all sectors of society for their impact on the
health of the population, and the development and implementation of a
range of many different policies, in many spheres of life, which are
designed to improve the health of the population;
action at all levels and in many different spheres of society, to identify
existing “social capital” - in public, private and voluntary organisations
and groups, and in informal networks - which are already contributing
to the health and well-being of the population;
design and implementation of measures to enhance this capacity so as
to enable individuals and communities to increase control over the
determinants of their health and thereby improve it.
Health promotion thus actively engages many sectors of society, stretching
well beyond health care services to all the areas, which impact on health or
which may create opportunities for health promotion. Therefore, there is scope
at all levels of government – nationally and locally – to identify priority areas
for investment for health. There are many opportunities in different sectors.
Action can be taken by social organizations such as schools, workplaces and
voluntary agencies, and by individuals. The greatest impact is achieved by the
synergy of carefully planning, co-ordinating and implementing policy
development, legislation, and appropriate, effective actions in different
organizations in different sectors and at different levels. From its vantage
point, WHO/EURO is well placed and always willing to offer countries advice
and assistance, based on learning from the widespread variety of experience
across Europe.
EDUCATION IN LATVIA
Transformation of the educational system has resulted in positive changes:
democratisation of education, students are provided the opportunity to acquire
education matching interests of the society and the country.
On January 3, 2002 the Cabinet of Ministers adopted the regulations on the
standard of the state academic education. According to these regulations, the
strategic goal of academic education programs is to master theoretic

41
knowledge and research skills, preparing for independent scientific studies in
the chosen science or its sub-branch.
On June 10, 2002 the Ministry of Education adopted the Concept of the
Development of Education for 2001-2005 that foresees improvement of the
quality of education of all types and on all levels to ensure access to education
in the context of lifelong learning to all residents of Latvia and to raise cost
efficiency of education.
WORKING LIFE PERSPECTIVES BY THE LATVIAN PEOPLE
Working life in Latvia in view of job seekers, pensioners and employees of
public and private enterprises has improved significantly in recent years.
Against this backdrop, still much has to be done – high inequality and poverty
put certain pressure on the optimism of the Latvian people. We would match
only some of the key points – the quality and quantity of the working life;
education and job creation; retirement and pension system – that are the mostmentioned
in the opinions.
The first point includes quality of education, legislative framework that
provides protection for workers at all levels (technical, social, judicial). This
point also envisages the quality of life for those people, who temporary or
permanently is unemployed – what kind of social protection are they
guaranteed by the state social protection policy. On the other hand, the
quantity of the working life means existing employment barriers,
unemployment tendencies, government programs on mobilizing workforce
and improve labour market flexibility.
Education – it is very difficult, in our view, for the local higher educational
institutions to compete with the foreign colleges or universities. Over the last
decade, positive changes and further progress has been made towards
providing a relatively qualitative higher education. But, taking into account
lack of professional staff and necessary resources, higher education do not
always provide necessary educational background. However, as some of
Latvian enterprises still use old technology and technique, not always new
professionals with high qualification could realize their knowledge at their
workplace. This problem will probably appear in longer term.

42
Most of the higher educational institutions provide very limited budgetary
places, all the rest study for charges. And the price for education is rising
year by year. It seems rather unrealistic for many families to pay for studies at
the university, so they have to find alternatives – trying in cheaper institutes
rather then university where children could do their best. Some of the
professions already can be obtained only for a very high charge.
Legislation – as far as we are concerned, we think that one of the major
concerns is wages “under the table” or so-called “wages in envelope”, which
comes from enterprises with the purpose to decrease their costs related to the
people employed in their company. Another weakness is the same reason – cut
of the costs related to the workers – some of enterprises tend to ignore rules of
labour protection. Therefore, there are some accidents related to deficient
attention in this area.
One of the most important steps forward taken by the government is the new
Labour Law that gives more rights and freedoms and reduces the abilities of
employer to release from work.
Unemployment – due to historical peculiarities of Latvia, unemployment rate
in different regions is very uneven. It is easier to find a job in a bigger city
rather then elsewhere. Probably, there are two main reasons, why unemployed
people cannot find an adequate job - lack of the Latvian language skills or
high qualification, and lack of adequate job places at the regions. These
problems have a long-term feature and obviously could be resolved in the
context of successful implementation of regional policy and decentralization
of industries.
Minimum wage – The minimum wage is rather low – 60 LVL, comparing to
the average wage in national economy – 159 LVL. Very limited preferences
are granted for unemployed, so many people would not like to loose their job.
Basically the average net wages are higher in the private sector, but it is
varying. In the time of transition many enterprises had not survived, so people
had to find another job or change their qualification. There should be more
support, in our view, for restructuring industries, as well as additional reforms
and implementation of the bankruptcy code in order to protect the job losers.

43
Public sector is more constant. The wages in the public sector are much
lower, but the public sector reform could bring more advantages for public
servants and employees. Also much more preferences are granted for the
employed in the public sector.
Pension reform is underway. Obviously it will be a good opportunity to increase
personal savings by investing in private pension funds. In parallel, it will give
additional impetus for development of domestic financial market.
GDP by kind of activity 2
At current prices At average prices of 2000
2001 2002 2001 2002
I - VI IV -VI I - VI I - VI IV - VI I -VI
Gross domestic
product
of which :
2 280 409 1 257 027 2 440 587 2 326 213 1 246 785 2 427 432
Total value added
of which :
agriculture, hunting and
2 014 034 1 131 376 2 142 371 2 078 976 1 097 009 2 168 860
forestry
of which :
agriculture, hunting and
88 732 50 251 88 502 86 291 51 493 87 984
related service activities
forestry, logging and
51 747 32 038 50 287 50 172 33 022 50 677
related services activities 36 985 18 213 38 215 36 119 18 471 37 307
fishing 8 280 2 486 4 129 8 425 2 515 5 090
mining and quarrying 2 571 2 019 2 865 2 668 1 891 2 766
manufacturing
electricity, gas and water
300 954 169 830 321 758 306 554 161 503 322 968
supply 84 900 32 067 85 582 76 556 32 415 77 115
construction 106 393 67 536 110 161 121 394 74 029 129 758
services
of which :
wholesale and retail
trade; repair of motor
vehicles, motorcycles
and personal and
1 422 204 807 187 1 529 374 1 477 088 773 163 1 543 179
household goods 364 768 219 225 414 101 381 862 205 763 416 846
hotels and restaurants
transport, storage and
25 674 14 356 27 531 25 606 13 176 26 406
communications 321 569 168 475 323 892 337 136 179 478 343 763
2 Indices are presented in thousand lats.

44
financial intermediation 96 015 48 536 96 396 110 457 57 089 115 661
real estate, renting and
business activities 228 356 132 722 245 981 231 282 120 955 242 055
public administration
and defence; compulsory
social security 121 778 71 359 135 071 128 049 69 220 132 055
education 112 084 68 368 122 897 103 033 54 434 103 711
health and social work 62 481 36 347 66 882 64 486 29 309 64 784
other community, social
and personal service
activities 89 479 47 799 96 623 95 177 43 739 97 898
Taxes on products (less
subsidies on products) 266 375 125 651 298 216 247 237 149 776 258 572
General indicators of GDP
GDP, total GDP per capita
thsd LVL as % of (at
constant
LVL USD,
Gads
at current
prices
at average
prices of
2000
prices)
corresponding
period
of previous
year
at current
prices
at average
prices of
2000
at current
prices
2000 4 348 340 4 348 340 106.8 1 832 1 832 3 024
2001 4 758 647 4 682 442 107.7 2 021 1 988 3 218
I - III 1 098 886 1 137 720 108.3 465 482 752
IV - VI
VII -
1 181 523 1 188 493 109.3 501 504 791
IX 1 182 820 1 163 971 106.4 503 495 798
X - XII
2002
1 295 418 1 192 258 106.8 552 508 877
I - III 1 183 560 1 180 647 103.8 505 504 789
IV - VI 1 257 027 1 246 785 104.9 537 533 857
SOURCES:

45
1. 2002 Regular Report on Latvia’s progress towards accession. Commission
of the European Communities. Brussels, 2002.
2. Towards the Enlarged Union. Strategy Paper and Report of the European
Commission on the Progress Towards Accession by Each of the Candidate
Countries. Commission of the European Communities. Brussels, 2002.
3. International financial statistics. Washington, IMF. October, 2002.
4. Annual report 2002. International Monetary Fund. Washington, IMF. 2002.
5. Updated Chapters of Taxation, Accounting, Auditing, Immigration,
Competition and Intellectual Property of OECD Investment Guide for Latvia.
Ernst & Young SIA. Latvia. Updated as of February 1, 1999.
6. The National Budget 2002. Explanations. Ministry of Finance of the Republic
of Latvia. Riga, 2002.
7. Pre-Accession Economic Programme. Republic of Latvia. Riga, 2002.
8. Latvia: Human Development Report 2000/2001. UNDP, Latvia.
9. Macroeconomic indicators of Latvia #2/2002, quarterly bulletin. Riga, 2002.
10. 2001 Statistical Yearbook of Latvia. Central Statistics Bureau of Latvia, Riga,
2001.
11. GDP in the first half of 2002 increased by 4.4%. Press release of Central
Statistics Bureau of Latvia. Riga, 16.09.2002.
12. Statistics on naturalization as at August 31, 2002. The Naturalization Board
Of The Republic Of Latvia.

LITHUANIA
46
Gintare Buzinskaite
Senior specialist of Labour Conditions Division,
Ministry of Social Security and Labour, Lithuania
BASIC FACTS ABOUT LITHUANIA
Location: Eastern Europe, bordering the Baltic Sea, in the South of Latvia
Capital: Vilnius
Area: land: 65.3 sq km
Frontiers: total: 1743 km
border countries: Latvia to the North 610 km, Byelorussia to the
South – East 660 km, Poland to the South – West 103 km and
Kaliningrad region of Russia to the West 295 km
Natural Oil, peat, limestone, dolomite, clay, sand and gravel, water,
resources: wood, arable land.
Population: total: 3.5 million (April 2001)
urban: 2.3 million
Natural increase
rate per 1000
population:
Average life
expectancy at
birth:
rural: 1.2 million
-1.3 (in 2000)
total population: 71.66 years (2001)
female: 77.41 years
male: 65.88 years
Ethnic groups: Lithuanian 83.5%, Polish 6.7%, Russian 6.3%, Belarusian 1.2%,
other 2.3%
Religions: Roman Catholic 79.0%, Orthodox Believers 4.1%, Old Believers
Official
language:
0.8%, Evangelical Lutherans 0.6%
Lithuanian
Independence: Proclaimed on 16 February 1918, restored on 11 March 1990
Constitution: Adopted on 25 October 1992
Legal system: Based on civil law system
Suffrage: 18 years of age; universal for Lithuanian citizens
Highest Seimas (141 member, 4 years; 50% of seats elected directly and
legislative body: 50% of seats elected on proportional basis)
President: Valdas Adamkus (elected on 4 January 1998)
Executive body: Government (prime minister and ministers)
Prime Minister: Algirdas Mykolas Brazauskas (since 4 July 2001)
Ministries: Environment, Finance, National Defence, Culture, Social
Security and Labour, Transport, Health Care, Education and
Science, Justice, Foreign Affairs, National Economy, Interior,
Agriculture

47
Justice: Administered by courts only.
Constitutional Court and Supreme Court judges are appointed by
Inflation rate
(consumer
prices):
the Seimas
1.3% (2001)
Labor force: Total: 1.8 million (2001)
Employed: 1.5 million
Unemployed: 0.3 million
Employment Services 56.1%, industry and construction 27.6%, agriculture
branches 16.3% (2001)
Unemployment 17.0% (2001)
rate:
Main export Latvia 15%, Germany 14%, UK 8%, Russia 7% (2001)
partners:
Main import Russia 27%, Germany 15%, Poland 5%, UK 5% (2001)
partners:
Currency: Litas (LTL) = 100 centas
Exchange rates: 1 euro = 3.4528 litas (fixed with euro since 2 February 2002)
Lithuania is the largest of the three eastern Baltic countries. The number of
population is 3.5 million, of which 2.3 million is urban population and 1.2
million is rural population. Lithuanians form 83.5 percent of the population.
The Independence of the Republic of Lithuania was proclaimed on February
16, 1918, and was restored on March 11, 1990. The Capital of Lithuania is the
city of Vilnius with 542 thousand population. The colours of the State flag are
yellow, green, and red. The State emblem is a white Vytis on a red
background. The official language is Lithuanian. It belongs to the Indo-
European language group and is the oldest of them still in everyday use.
National currency is Litas (LTL) = 100 centas, restored on 25 June 1993, fixed
with euro since 2 February 2002. 1 euro = 3.4528 LTL.
Highest legislative body is Seimas (141 member; 4 years). 50 percent of
Seimas seats are directly elected and 50 percent are elected on proportional
basis. All Lithuanian citizens of the age of 18 and over may vote. President of
Lithuania is Mr. Valdas Adamkus, elected on 4 January 1998. Next legislative
elections will take part in 2004 and the presidential ones – in the end of 2002.

48
The main legal act is the Constitution of the Republic of Lithuania adopted
on 25 October 1992.
GEOGRAPHIC SITUATION
Lithuania forms part of the eastern cost of the Baltic Sea and lies in the South
of Latvia. The surface area of Lithuania is 65.3 thousand km 2 . It has frontiers
with Latvia to the North (610 km), Byelorussia to the South – East (660 km),
Poland to the South – West (103 km) and Kaliningrad region of Russia to the
West (295 km). The total length of frontiers is 1743 km, the length of the
Baltic cost line of which is 99 km.
The countryside of Lithuania’s is lowland plains and hilly uplands. 60.4
percent of the territory is agricultural land, 30.3 percent is land for forestry.
More than 2.8 thousand lakes occupy 1.5 percent of the territory. 722 rivers
run through the region. The climate is midway between maritime and
continental. The Baltic Sea coastline is used for recreation and nature
preservation.
Lithuania’s territory is divided into 10 counties, which are the main
administrative units. There are Alytus, Kaunas, Klaipeda, Marijampole,
Panevezys, Siauliai, Taurage, Telsiai, Utena, and Vilnius counties. They are
divided into smaller units – municipalities, total number of which is 60. The
capital city of Lithuania is Vilnius, founded in 1323. It is located in the South
– East of the country, on the river Neris side, and has a population of 542
thousand. Other cities are smaller and only 4 of them have the population of
more than 100 thousand. These are Kaunas (population 379 thousand),
Klaipeda (population 193 thousand), Siauliai (population 134 thousand), and
Panevezys (population 120 thousand).
The geographical centre of the Europe, Purnuskis, lies in Lithuania 27 km
north of Lithuania’s capital Vilnius. Approximately 100 km North – East from
Vilnius there is Ignalina – the countries own nuclear power station. It is
planned that the first block of the nuclear power station will be stopped in
2005, and the second one in 2009.

49
The road and railway networks are well developed in Lithuania. Lithuania is
a vital link in the “Via Baltica”, the Baltic way running from Poland to
Estonia, and is at the heart of the transit routes between East and West. There
are 4 international airports in Vilnius, Kaunas, Klaipeda and Siauliai counties,
and the harbour in Klaipeda, which is the only ice-free harbour in the Eastern
Baltic. Over 15 million tons of cargos are handled per year in it. Close to
Klaipeda there is an oil terminal of Butinge.
HISTORY
Lithuania was first consolidated into a unified state from a number of
dukedoms by Grand Duke Mindaugas by 1240. By the 15 th century Lithuania
was one of the most powerful states in the Eastern Europe. Its land extended
up to the Black sea. In 1569 with the Lublin Union a Rzeczpospolita –
federation of Lithuania and Poland – was established and lasted until 1795
when Lithuania was incorporated into Russia. After more than hundred years
of Tsarist rule, Lithuania declared its independence in 1918. Independence
lasted for 22 years. In 1940 the Soviet Union occupied the country and for 50
years Lithuania was under Soviet regime. On 11 March 1990 Lithuania
proclaimed the restoration of independence.
Nowadays Lithuania is an independent democratic republic. On 17 September
1991 Lithuania was admitted to the United Nations. On 12 June 1995
Lithuania signed a Europe (Associate) Agreement with EU. The agreement
was ratified by the Seimas on 20 June 1996 and came into force on 1 February
1998 following its ratification by the parliaments of the EU Member States
and the approval of the European Parliament.
DEMOGRAPHY AND ETHNIC ISSUES
In April 2001 Lithuania has conducted the census, answering the United
Nations address to the countries all over the world to conduct Population and
Housing Censuses at the threshold of the third millennium. This was the first
census following the restoration of Lithuania’s independence. Last census was
conducted in 1989.

50
According to the data of the census Lithuania has the population of 3.5
million, of which 2.3 million is urban population and 1.2 million is rural
population. Women account for 53.2 percent of the population. 2.1 million of
the population are of working age and 0.7 million – retired. Most of the
population 2.8 million are Roman Catholics.
Lithuania inherited a multinational society from history and its geographical
position. There were always Poles, Russians, Byelorussians, Jews, Tartars and
Karaims living in Lithuania. According to the data of the census Lithuanians
form 83.5 percent of the population, with Poles forming the second largest
ethnic group at 6.7 percent, Russians amounting up to 6.3 percent, and
Byelorussians - up to 1.2 percent. Other ethnic groups form less than 1 percent
each.
The population density in Lithuania is 56.5 per km 2 . Natural increase is
negative from 1994 already, and its rate was -1.3/per 1000 population in 2000.
The birth rate is currently low: 9.2 births for 1000 inhabitants in 2000, and has
been constantly declining since 1990, when it was 10.7 births for 1000
inhabitants (Statistic Yearbook of Lithuania 2001).
ECONOMY
According to the data of the Department of Statistics Lithuania’s economy is
growing after the decline in 1999. The Gross Domestic Product (GDP) in 2000
increased by 3.8 percent as compared to 1999 and in 2001 it increased by 5.9
percent as compared to 2000. GDP in 2001 at current prices was 48 billion
Litas or 13.8 thousand Litas per capita. The main factor of the growing GDP
was the increased export during the last two years. This was influenced,
without other factors, by the recovering markets of the main Lithuania’s
foreign trade partners – Russia, Latvia and Estonia – and the export of oil
products to the Great Britain. The amount of export to the EU countries after
the changes during the last two years relatively stabilized and constituted a bit
less than half of the whole export. (Lietuvos ekonomikos apzvalga, 2002 No.1,
p.89)
Total sale of industrial production also increased by 13 percent in 2000 as
compared to 1999 and by 11 percent in 2001 as compared with 2000.

51
Adequately export increased by 27 percent and 20 percent each year and
import by 13 percent and 16 percent. As import increased more slowly than
export the negative foreign trade balance decreased. The deposits of the
residents in the banks annually increased since 1998 and reached the sum of
more than 6 billion in 2001. (Data of the Department of Statistics)
Though the State budget income increased in 2001 in comparison with 2000
and was 6.3 billion Litas, it did not cover the expenditures of the State budget.
The budget deficit in comparison to GDP was 1.2 in 2001. (Data of the
Department of Statistics)
Total foreign direct investment in the end of 2001 was 10.7 billion Litas, or 3
thousand Litas per capita. (Data of the Department of Statistics)
PROGNOSIS FOR THE DEVELOPMENT OF ECONOMY IN
2002-2005
According to the prognosis of the Ministry of Finance Lithuania’s real Gross
Domestic Product (GDP) should increase by 4.4 percent in 2002. The export
and import prices should decrease, home inflation should be low in 2002. The
prognosis for the growth of GDP is based on the presumption, that the
economic development in Europe will be slower in the first half of 2002 and
will get speed each time later on. GDP will develop in Lithuania because of
the home market and strengthening outside market. Industry, producing the
export goods, will be the basis of the economic growth. In 2002 the real export
will grow rapidly, consumption and investment will significantly increase. The
prognosis is that in 2002 the expenditures for the home consumption will
increase by 5.6 percent and general internal investment will increase by 9.6
percent. (Lietuvos ekonomikos apzvalga, 2002 No.1, p.90)
Lithuania can keep stable long-term average 5 percent annual growth of
economy. In 2003 the growth of GDP will be 4.9 percent, in 2004 – 5.3
percent, and in 2005 – 5.6 percent. During this period the acceleration of the
growth will be given by the changes due to the foreseen accession to the
European Union. It is foreseen that in 2004 the investments will grow more
rapidly, the expenditure of the Government use will increase. Later on the

52
money transfer from the EU will increase. The export will keep growing.
(Lietuvos ekonomikos apzvalga, 2002 No.1, p.90)
BANKING SYSTEM
Lithuania has a two-tiered banking system consisting of the central bank and
commercial banks. The primary goal of the central bank is to ensure the
stability of the national currency. To achieve this, the Bank of Lithuania issues
and withdraws from circulation banknotes and coins, implements monetary
policy established by Lithuanian laws, administers foreign reserves, supervises
the activities of commercial banks and carries out other functions prescribed
by the Law on the Bank of Lithuania. (Doing Business in Lithuania 1999,
p.40) Nine commercial deposit money banks and branches of four foreign
banks are operating in Lithuania.
The three largest banks –Vilniaus Bankas, Hansa-LTB and Lietuvos Zemes
Ukio Bankas – hold 78 percent of all banks assets. In 2001 total assets of
Lithuanian commercial banks amounted to 15.5 billions Litas. The loan
portfolio totalled 7.3 billion or 15 percent GDP at he end of 2002. (Doing
Business in Lithuania 2002, p.43)
2001 and 2002 marked the end of privatisation of state-owned banks. In April
2001 the state-owned Lithuanian Savings Bank was merged with Lithuania’s
Hansabankas, owned by the largest commercial bank in the Baltic States
Estonia’s Hansapank. In March 2002 the German Norddeutsche Landesbank
Girozentrale acquired a 76 percent stake in the last state-owned bank, Lietuvos
Zemes Ukio Bankas. The share of foreign equity in Lithuanian banks rose
from 16 percent in 1996 to 89 percent in 2002.
PRIVATISATION PROCESS
The initial privatisation programme was launched in Lithuania in September
1991 and since then it has constituted an integral part of Lithuania's economic
reforms.

53
The first phase of privatisation is called a mass privatisation for vouchers
with some elements of cash sales. The Lithuanian citizens were able to
participate in privatisation either directly by acquiring the shares of the
companies included in the privatisation program or indirectly by purchasing
the shares in various investment funds established during this phase. Foreign
investors had a possibility to participate in the privatisation process for cash.
The first phase of privatisation was a very dynamic process compared with
other Central and Eastern European countries. A significant part of the mass
privatisation was completed in the agricultural sector. More than 1 thousand
state companies formerly known as "kolchozes" were privatised and about 97
per cent of the property in the agricultural sector went in to the private hands.
High level of privatisation was achieved in different industries. 98 per cent of
the construction and 97 per cent of household service sectors was privatised.
This phase also comprised the sale of apartments to the tenants, the citizens of
Lithuania.
By the end of the first phase 88 per cent of the total assets offered for sale had
been privatised. Lithuania has become a country with a majority of the Gross
National Product (68 per cent in 1996) generated in the private sector. Some
well-known international companies came to Lithuania during the first stage
of privatisation. It is important to mention Phillip Morris S. A. and Kraft
General Foods International, Inc.
The second phase of privatisation started in July 1995. It differs from the first
stage in two respects: first, state-owned and municipal property is sold for
cash to natural and legal persons under market conditions following valuation
of objects; and second, local and foreign investors as well as legal and natural
persons have equal rights in privatisation of state-owned and municipal
property.
During 1995-1997 the amount of investment into Lithuania was comparatively
small. The key policy changed in November 1997 when a wide range of
privatisation methods was allowed. These are: public subscription for shares;
public auction; public tender; direct negotiations; lease with an option to
purchase; and combination of methods.

54
In 1997 the Government of Lithuania offered for privatisation some of the
state-owned strategic enterprises in the sectors of transport, energy and
telecommunications, such as Lithuanian Airlines, Lithuanian Telecom,
Lithuanian Shipping Company, and others.
Under the major privatisation transactions concluded in 1998-2000, the buyers
assumed obligations to invest more than 1.9 billion Litas into the acquired
companies and to retain or create more than 25 thousand jobs. The most
important transaction was the privatisation of the Lithuanian Telecom.
The sale of land started in 2001.
Currently, the privatisation list comprises more than 3 thousand companies
with a total state (municipally)-owned share amounting to 2.3 billion Litas. It
contains a wide range of companies in different sectors. Up for sale there are a
number of companies in the transport sector (Lithuanian Airlines), hotels and
guesthouses situated conveniently in the centres of major towns or on the
Baltic coast, producers of electro-technical goods, car and drugs
manufacturers and several companies in the chemical and pharmaceutical
industries. The privatisation list also contains a considerable number of real
estate properties of various sizes.
In the future, the privatisation of the remaining state-owned medium
companies, small blocks of shares and real estate properties will be further
carried on. In the short-term, such large enterprises as Lithuanian Gas,
Lithuanian Energy and Lithuanian Railways are scheduled for privatisation.
Before privatisation the aforesaid companies are going to be restructured.
(Lithuanian State Property Fund information, 2002)
STANDARD OF LIVING
The average monthly gross earnings in 2001 was 991.2 Litas. It rose every
year since 1995 and grew twice in 2001 in comparison with 1995, when it was
480.9 Litas. The average monthly gross earnings in public sector in 2001 was
1102.7 Litas and was bigger than in private sector, where it was 899.9 Litas.

55
In 1995-1999 the lowest average monthly gross earnings was in sole
proprietorships and in agricultural partnerships. Calculated by economic
activities the biggest average monthly gross earnings was in monetary
intermediation and financial intermediation through the same period.
Calculating by employee categories non-manual workers had bigger average
monthly gross earnings in 2000, which was 1291.5 Litas, and manual workers
had average monthly gross earnings only 797.6 Litas. Men had bigger average
monthly gross earnings than women in both cases – manual and non-manual
work. Manual workers men had 889.4 Litas average monthly gross earnings,
women – 667.2 Litas. Non-manual workers men had 1589.9 Litas average
monthly gross earnings, and women – 1124.9 Litas.
Natural persons shall pay income tax of 33 % from their income after
subtracting from it the tax-exempt minimum, which is 430 Litas for the
disabled of Group 1; 379 Litas for the disabled of Group 2; 283 Litas for the
disabled of Group 3; 430 Litas for persons with three and more children under
18 years of age; 335 Litas for the mother or father in case of a single parent
family with one child under 18 and is increased by 53 Litas for the second and
each successive child; 325 Litas for employees of enterprises producing
agricultural products whose monthly income generated from activities not
connected with production or processing of agricultural products exceed more
than 50 % of their gross monthly income or employees hired by farmers; 250
Litas for other persons. Persons insured under the social insurance shall pay
contributions of 3% from their income.
The average monthly net earnings (salaries after deduction of taxes and social
contributions payable by employee) in 2001 was 705.2 Litas.
The average monthly pension of State social insurance in 2001 was: old-age
pension – 317.6 Litas, and disability pension –277.7 Litas. Income tax is not
deducted of pensions.
Average size of household in the State in 2001 was 2.6 persons. The average
household disposable income per capita per month was 415.4 Litas in the State
in 2000 and 409.5 Litas in 2001. It increased since 1996 till 1999, when it
became 428.0 Litas and started decreasing in the last two years. In 2001
average household disposable income per capita per month in urban area was
455.4 Litas, and in rural area – 310.9 Litas. Single persons and couples

56
without children had the biggest average disposable income per capita per
month, adequately 542.4 and 520.3 Litas. The purchasing power of average
cash disposable income per capita per month in 2000 and 2001 is presented in
the table 1.
Purchasing Power of Average Cash Disposable Income per Capita per
Month
2000 2001
Boiled sausage, kg 30 30
Beef 1 category, kg 44 33
Butter, kg 37 39
Milk 2.5 percent 223 249
Sugar, kg 114 116
Rye-wheat bred, kg 157 159
Men’s 2 part suit 0.7 0.7
Woman’s high boots, pair 1.4 1.2
Colour TV, diagonal 37 cm, set 0.48 0.51
Electricity kWh 1344 1261
Data of the Department of Statistics by the Government of Lithuania Table 1.
Average household consumption expenditure per capita per month in the State
in 2001 was 411.4 Litas and was lower than in 1998 and 1999, when it was
accordingly 426.8 and 425.4 Litas, and bigger than in 2000, when it was 404.4
Litas. The biggest part of it was composed of food and non-alcoholic
beverages, and was 174.4 Litas or 42.4 percent of total expenditures in 2001.
Other household consumption expenditures are presented in the table 2.
Average household consumption expenditure per capita per month in
2000
In Litas In per cent
Total 411.4 100
Food and non-alcoholic beverages 174.4 42.4
Housing, water, electricity, gas and
other fuel
56.0 13.6
Transport 29.8 7.2
Clothing and footwear 26.9 6.6
Furnishings, household equipment and 20.9 5.0
routine maintenance of the house
Health care 18.6 4.5
Communication 18.4 4.5
Hotels, restaurants, cafes, canteens 17.3 4.2

57
Recreation and culture 16.6 4.1
Alcoholic beverages and tobacco 15.3 3.7
Miscellaneous goods and services 14.3 3.5
Education 2.8 0.7
Data of the Department of Statistics by the Government of Lithuania Table 2.
For most goods and services standard value added tax (VAT) of 18% is
applied. Reduced 9% rate of VAT is applied to supplies of services relating to
construction, renovation, insulation and design of residential houses,
engineering network building and territorial management, which are financed
with state and municipal budget resources as well as with soft credits granted
by the state and resources of state special funds. Reduced 5% rate of VAT is
applied to passenger transport, press, pharmaceuticals and medicinal products,
accommodation at hotels, organic food products, and some meat products.
VAT is not applied to some goods and services related to health care, social
field, education and training, culture and sports, post, radio and television,
insurance, finances, special marks, betting, gambling and lotteries.
EMPLOYMENT AND REMUNERATION SYSTEM
According to the Labour law people in Lithuania can start working at the age
of 16, although there are exceptions for the light work of children under 16.
The minimum hourly wage (MHW) and the minimum monthly wage (MMW)
are set by the State and guaranteed for every employer. In 2002 the MMW is
430 Litas and MMW is 2.53 Litas.
The age for the social insurance old-age pension in 2001 was 57.5 years for
women and 61.5 years for men. The average annual number of persons
entitled to get old-age pension in 2001 was 636.9 thousand. The old-age
pension is made of two components: base pension and supplementary pension.
Base pension is of the same amount for every pensioner and in 2001 it was
138 Litas. The supplementary pension depends on the length of insurance and
income earned. All working pensioners get base pension and those who get
less than 645 Litas also get a part of supplementary pension (up to 100 Litas).
As pensions are not big (according to the data of the State Social Insurance
Fund the average old-age pension in 2001 was 306.47 Litas), part of

58
pensioners work. There were 67.7 thousand working pensioners in 2001
(State Social Insurance Fund’s data).
The Department of Statistics by the Government of Lithuania every year
makes assessment of population employment, which is based on the data
reported by enterprises, institutions and organizations and data provided by
self-proprietorships and persons holding licences to carry out various kinds of
economic activities as well as by farmers, and Labour Survey.
According to the Labour Survey data there were 3692.6 thousand people
living in Lithuania in 2001, 1759.9 thousand of which were labour force (total
number of employed and unemployed). Totally 1460.6 thousand people were
employed, of which 1432.2 thousand were aged 15-64, and 299.3 thousand
people were unemployed (registered with the Labour Exchange). Full-time
workers constituted 90.2 percent of employed people. Inactive population
(working age population who do not belong to neither employed nor
unemployed) were 1225.9 thousand. Total employment rate was 48.9 percent
while employment rate of people aged 15-64 was 57.7 percent. Total
unemployment rate was 17.0 percent and unemployment rate of people aged
15-64 was 17.3 percent.
According to the assessment of population employment data the average
number of employed people in 2001 was 1521.8 thousand, from which 756.3
were males and 765.5 were females. So nearly the same figures of men and
women are working, or in another words men and women participate in the
employment equally. The biggest part of employed population works in the
services field. That is 845.4 thousand or 55.6 percent. Other big fields are
industry (20.4 percent), the biggest part of which is manufacturing (17.9
percent of employed population), and agriculture (16.7 percent).
UNEMPLOYMENT
The number of unemployed persons registered with the labour exchange on 1
September 2002 was 186.6 thousand and was 30.4 thousand or 14.0 percent
less than that on 1 September 2001. Share of female was 52 percent and the
share of male - 48 percent. The percentage of unemployed youth (under the
age of 25) was 13 percent of the total unemployed. Number of long-term

59
unemployed was 57.9 thousand or 31 percent of the total unemployed. It
decreased by 10.6 thousand unemployed or 15 percent in comparison to
2001 figures. Since the beginning of the year 2002 the number of registered
unemployed decreased by 5.6 thousand in comparison to the same period last
year.
During eight months of 2002 the average unemployment rate (the ratio of
unemployed to labour force) was 11.7 percent. In 2001 this indicator was 12.6
percent. On 1 September 2001 the unemployment rate was 12.1 percent. On 1
October 2002 unemployment rate in Lithuania decreased to 10.5.
From autumn 1998 until June 2002 the unemployment rate of men was major
then women. On 1 July 2002 share of women in unemployment rate was by
0.2 percent point higher than that of men, and on 1 September this difference
increased up to 0.9 percent point.
The highest unemployment rate on 1 October 2002 was registered in
Druskininkai (24.6 percent), Mazeikiai (22.8 percent) and Lazdijai (20.7
percent). The lowest unemployment rate was registered in Kretinga (4.4
percent), Trakai (5.1 percent), and Kedainiai (5.8 percent) districts. The
following unemployment rate was in the major cities of Lithuania: Vilnius –
7.0 percent, Kaunas – 7.8 percent, Klaip_da – 8.3 percent, Siauliai – 11.0
percent, Panevezys – 14.5 percent.
The employment rate (ratio of employed population to population of working
age and over) in 2001 was 49.6 percent. (Labour force survey data, May 2001)
In 2002 on average 11.25 thousand vacancies were registered every month and
this is 0.3 thousand more than in 2001. The biggest labour demand was traced
in April – over 13.5 thousand. The largest demand for specialists was in the
fields of information business, business management and administration,
accounting, auditing, commerce, information technologies, automation, civil
transportation, wood product technology engineering. The most demanded
service and skilled workers in 2001 were dressmakers, furniture makers,
cooks, welders and metal cutters, sellers, waiters and barmen, builders, car
drivers and mechanics.

60
The biggest number of job vacancies in 2002 was registered in service sector
and in industry. In comparison with 2001 labour demand increased in
construction sector, the same demand was registered in service sector, and
small decrease in industry and agriculture was observed.
According to the level of qualification, labour demand increased for specialists
with higher education and for service and skilled workers. Labour demand for
unskilled workers decreased. (Data of the Lithuanian Labour Board)
According to Lithuanian Labour Exchange’s forecast for 2002 situation in the
labour market will become more optimistic. An average annual unemployment
rate will be 11.3 percent that is 1.2 percent point lower than that in 2001.
Regional differences of unemployment level will remain the same. Average
annual youth unemployment rate will be 19 percent – the highest among other
groups of the unemployed. Female unemployment (11.1 percent) is going to
be less than that of male (11.9 percent). Every third unemployed person will
have no work for more than one year.
Because of the higher turnover of employees and establishment of new job
places number of new job proposals will increase. In 2002 it will reach 130-
150 thousand. It is expected to have more established than liquidated jobs in
all economic sectors except agriculture. Number of job vacancies is going to
increase in textile, wood, and furniture industry, transport vehicles
construction enterprises. The biggest decrease in job vacancies is foreseen in
chemical, ironware industry, electricity, gas and water supply, transportation
and communication firms, enterprises of health care and social work,
educational institutions. The largest registered labour demand will be for
specialists of management and administration, industry and mechanical
engineering, healthcare. (Lithuanian Labour Exchange Labour Supply and
Demand Division)
SOCIAL PARTNESHIP
The process has been going on for the past ten years in Lithuania during which
a transition from a strictly centralized model of regulation of labour relations
to contractual regulation of these relations is made. The conception of social
partners was introduced in the course of that process. It is true; the legal acts

61
that are currently in effect contain no single definition of this conception
because in every specific case of regulated relations the composition of
partners may differ. Speaking about labour relations and relations related to
work, employee’s and employer’s organizations co-ordinating their positions
among themselves on important labour, social and economic issues are
regarded as social partners. (Social Report 2000, p. 67)
Trade unions as social partner is legitimated in the Labour Code. It is set that
the rights and interests of employees in enterprises can be represented by trade
unions that can be established according to the Law on Trade Unions. No
exact data on the number of trade unions currently operating in Lithuania and
the number of employees they unite is available as there is no general register.
Many local trade unions that operate in one municipality or county do not
participate in larger associations, centres or federations of trade unions.
On national level three trade union organizations operate in Lithuania:
Lithuanian Trade Union ‘Solidarity’, which unites 28 territorial unions of
workers and 10 industrial trade union federations, with a membership of about
52 thousand; Lithuanian Workers Federation, which unites 12 branch trade
unions, with a membership of about 20 thousand; and the biggest one –
Lithuanian Trade Union Confederation, uniting 24 branch trade unions.
(Social Report 2000, p. 69; data of trade unions)
No less problematic is the situation of another social partner – employer
organizations. A legal problem of regulation of the activity of employer
organizations is that thus far no valid specific legal act has been drawn up to
define the status of the employer organization as social partner, to establish its
obligations and rights, which reveal themselves through a social dialogue. At
present all functioning employer organizations follow the Law on
Associations in their activity, however this law neither establishes nor defines
those features that are characteristic of those organizations as one of the
participants of the social dialogue. (Social Report 2000, p. 70)
Neither exact data about the number of branch and regional employer
organizations in Lithuania or detailed data about the percentage of
undertakings and their workers represented in the employer organizations are
available. Two large employer organizations function on the national level:

62
Confederation of Lithuanian Industrialists, which unites 41 branch and 8
regional associations of industrial undertakings, over 2.7 thousand various
enterprises in all, and Lithuanian Business Employer’s Confederation, which
unites about 500 undertakings and 55 regional and branch associations, which
employ about 400 thousand workers. (Social Report 2000, p. 70; data of
employer organizations)
EDUCATION
It is set in the Constitution of Lithuania that education is compulsory for
persons under the age of 16, and it is free of charge at State and local
government secondary, vocational, and higher schools. Institutions of higher
learning are granted autonomy. The State supervises the activities of
establishments of teaching and education. Compulsory education, as set by the
Law on Education, is 10 years.
General schools comprises three stages: primary school (1-4 classes) attended
by children from 7 to 11 years old, basic school (5-10 classes) attended by
children from 11 to 16 years old, and secondary school (11-12 classes)
attended by children from 16 to18 years old. New type of schoolsgymnasiums,
which provide extended subject-directed general education and
higher requirements for pupils learning already 9 th –12 th year are under rapid
establishment. There are 4 classes of gymnasium. According to the data from
the Department of Statistics, there were 2.4 thousand general schools, 80 of
which were gymnasiums, in the State in school year 2000-2001 attended by
604 thousand pupils.
General curricula are also taught in vocational and college type education
schools, in which young people acquire profession.
Vocational school gives elementary professional qualification and knowledge
of general school level. Four-stage education is applied, so pupils with
different level of education - incomplete basic education, basic education and
general education - can acquire profession. Usually there study pupils with
basic education. There were 84 vocational schools with 47 thousand pupils
studying in them in school year 2000-2001. In 1995-2000 on average 13.9

63
thousand qualified workers were prepared in vocational schools. (Data of the
Department of Statistics)
Professional college trains specialists of higher professional skills to work in
different economic and social activities. Duration of studies is 3-4 years. There
were 57 vocational schools with 37 thousand pupils studying in them in school
year 2000-2001. In 1995-2000 on average 6.7 thousand students graduated
from professional schools. (Data of the Department of Statistics)
In autumn 2000 a binary higher education system started functioning and
college type schools, which provide higher non-university education, were
established. The studies in college type schools are one stage with 3-4 years
duration. 7 college type schools were established in 2000 and 3 thousand
students were admitted to them in 2000. (Data of the Department of Statistics)
There are 19 universities in Lithuania, providing three stages of university
education. After the graduation students acquire bachelors, masters degrees or
high-level professional qualification. There were 96 thousand students in the
universities in school year 2000-2001. In 2000 17.1 thousand students
graduated from the universities, 10.3 thousand of them passed through
bachelor and professional programmes and 6.4 thousand – masters
programmes and residencies. (Data of the Department of Statistics)
CONCLUSIONS
Lithuania as many other European countries is an aging one. From 3.5 million
population 2.1 million is of working age and 0.7 million is retired. The birth
rate is declining since 1990 and natural increase is negative from 1994. The
average size of household in the Republic is 2.6 persons. The employment rate
is 49.6 percent. Men and women participate in the employment equally. More
than half of the employed population works in the services field. Other big
fields are manufacturing and agriculture. It is expected that the number of job
places will increase in all economic sectors except agriculture. The
unemployment rate has decreased in comparison with 2001 and average
unemployment rate for 2002 is forecasted to be 11.3 percent.

64
Lithuania’s economy is growing since the decline in 1999. According to the
prognosis of the Ministry of Finance it will grow further on because of the
strengthening of home and outside markets. The export will keep growing and
industry producing the export goods will be the basis of the economic growth.
SOURCES
Economic and Social Development in Lithuania, 07/2002 – Department of
Statistics by the Government of Lithuania.
Statistical Yearbook of Lithuania 2001.
Portrait of the Regions volume 8 – European Communities, 2000
Doing Business in Lithuania 1999 – Lithuanian Development Agency,
Lithuanian Free market Institute, Law firm “Lideika, Petrauskas, Valiunas and
Partneriai”.
Doing Business in Lithuania 2002 – Lithuanian Development Agency,
Lithuanian Free market Institute, Law firm “Lideika, Petrauskas, Valiunas and
Partneriai”, Vilnius Municipality.
Lietuvos ekonomikos apzvalga 2002 No.1- Ministry of National Economy,
Statistic Department at the Government, 2002.
Household income and expenditure 2001 - Department of Statistics by the
Government of Lithuania, 2002.
Social Report 2000 – Ministry of Social Security and Labour, 2001.
Lithuanian Labour Board information.
Lithuanian State Property Fund information.

65
PART TWO
QUALITY OF WORKING LIFE
1998 - 2002

66
In this section, we will examine unionisation of workers and the image of the
trade union movement. The movement has had to undergo a complete transformation
because, after the trade union activities of the Soviet period came to
an end, there was a need to create in their place an institution based on the
Western-type principle of promoting the workers' interests. According to the
previous working life barometer for the Baltic countries, the wage earners
would like to have considerably more collective agreements (Antila &
Ylöstalo 1999, 62-65), and these could often be naturally allocated to the social
partners' field of activity. There would be both room and need for organised
promotion of interests. In order to succeed, however, this would require a
strengthened foundation of legitimation for the trade unions. On the basis of
this study, the trade union movement in the Baltic countries is still in great
difficulties.
UNIONISATION AND BARGAINING
In both Latvia and Lithuania, the number of members in the movement has
further decreased. Of the countries compared, membership of a trade union is
still the most typical in Latvia. There, nevertheless, only one in five wage
earners stated that they belonged to a union. In the other two countries,
Lithuania and Estonia, membership is still rarer. Now, only about one in ten
wage earners in Lithuania is a union member. Estonia is the only Baltic country
where trade union activity appears to have reached its lowest level already,
because the rate of unionisation had risen slightly during the three-year period
(1999-2001). Despite the change in the Estonian trend, the number of members
is still a long way from the 1996 level, for example: then, over one-fifth
of the wage earners belonged to a trade union.
An examination according to age groups sheds additional light on the unionisation
issue. In Latvia, the fall in membership has involved all the age groups.
The greatest relative decrease has been among young people, whose rate of
unionisation (8 %) is about half that in the previous survey. It is still true in
Latvia that the older the age group in question, the greater the likelihood of
belonging to a trade union.

67
In Lithuania, no significant changes have taken place in unionisation among
the under-50s in recent years. By contrast, in the case of workers who are 50
years old or older, the change has been really dramatic. In three years, the rate
of unionisation among the oldest age group in Lithuania has dropped from 20
% to 8 %. Ageing workers' mass resignation from Lithuania's trade union
movement is an interesting phenomenon, and the reasons influencing it should
be studied in more detail. It is also possible that there has been no real mass
exodus of ageing employees from the trade unions in Lithuania, but rather that
ageing union members have merely exited from working life - into either retirement
or unemployment. According to the Lithuanian statistics centre
(http://www.std.lt/STATISTIKA), the rate of employment among 16-64 year
olds in 1998 was 62.3 % and three years later (in 2001) 57.7 %, in other words
there has been a clear decrease. In this survey, the data were gathered only
from persons involved in working life. It is thus entirely possible that ageing
trade union members could have exited from working life more generally than
other ageing persons. If this is so, it would be interesting to investigate the
phenomenon further. What cause or causes have led to this? Whatever the reasons
for the change, it is clear that ageing employees do not belong to the trade
union movement as commonly as three years ago.
In Estonia, as in Lithuania, there have been no changes in unionisation of the
under-50s. One detail worthy of especial note is that in the 30 year old and 30-
49 year old age groups, the rates of unionisation were precisely the same as
three years earlier (7 and 15 per cent). On the other hand, the trend among the
ageing workers has been completely opposite to that in Lithuania, because the
unionisation rate for employees aged 50 years and over has risen clearly in
recent years and is now 19 %.
The entirely opposite trend in trade union membership of ageing workers in
Lithuania compared with Estonia has affected the average age of members,
too. Because unionisation amongst the oldest age group in Lithuania has
clearly decreased, also the average age of members has fallen by two years
and is now 40. The increased rate of unionisation in Estonia has been due only
to wage earners in the oldest age group joining the trade unions, and this has
had an ageing effect on the membership profile. The average age of the members
in Estonia is the highest in the Baltic countries: 45 years. In Latvia,
change has not taken place in specific age groups to the same extent as in the

68
other two countries, and so the average age of the members is exactly the same
as in the previous survey (43 years).
50%
40%
30%
20%
10%
0%
THE LEVEL OF TRADE UNION MEMBERSHIP
25%
20%
15%
11%
In 1996 the rate of unionisation in Estonia was 21 % (Rahikainen & Ylöstalo 1997, 75)
12%
Latvia Lithuania Estonia
1998 25% 15% 12%
2002 20% 11% 14%
50%
40%
30%
20%
10%
0%
15%
26%
32%
UNIONISATION ACCORDING TO AGE
8%
25%
23%
Average age of members: Latvia 43 years, Lithuania 40 years, Estonia 45 years
10%
15%
20%
13%
11%
8%
14%
Latvia Lithuania Estonia
15% 15%
12%
7% 7%
1998 2002 1998 2002 1998 2002
Under 30 years 30-49 years 50+ years
19%

69
Of the countries compared, trade union membership is the most typical in Latvia.
This is also the only Baltic country where there are no differences in
membership generality between the national citizens and other nationalities.
Seen from the nationality perspective, the trade union movement represents
the whole of the working population to the same extent, 20 %. One-fifth of
both the Latvians and the Russians living in Latvia belong to a trade union. In
both groups, unionisation has been on the decline in recent years.
In Lithuania, too, the rate of unionisation among both the Lithuanian wage
earners and those of other nationalities has been falling. There, however, it has
been a little greater among the ”other nationalities” (that is, the Russians,
Poles and Belorussians) to belong to a trade union than among the Lithuanians.
The unionisation of ”other nationalities” in Lithuania is nevertheless
clearly less common than in Latvia and Estonia. Regarding the question of
nationality, 1 it must be remembered that other nationalities form a considerably
smaller proportion of the population in Lithuania than in the other two
Baltic countries.
The Estonian situation differs from the rest in that at the beginning of 2002, as
stated above, a greater proportion of the workers belonged to a trade union
than at the end of 1998. The membership increase consisted mainly of ageing
Russian employees. The unionisation rate among the Estonians was only 10
%, and the increase compared with the previous barometer was a mere one per
cent. Of the different nationalities in the Baltic countries, the Russians in Estonia
are the most widely unionised. Almost a quarter of them belong to a
trade union.
There has been a general drop in membership in Latvia and Lithuania, since
the unionisation rates among both the national citizens and the representatives
of ”other nationalities”, and among both the men and the women, have decreased.
Although about one-quarter of the women do still belong to the trade
union movement in Latvia, the proportion has clearly fallen - by eight per cent
in three years. The increased extent of membership in Estonia applies to both
the men and the women.
1 In Lithuania, 791 Lithuanians and 118 representatives of other nationalities were interviewed for the
study. In Latvia, 522 Latvians and 382 workers of other nationalities were interviewed. In Estonia,
595 Estonians and 305 employees of other nationalities responded to the survey.

50%
40%
30%
20%
10%
0%
25%
70
UNIONISATION ACCORDING TO NATIONALITY
22%
20%
20% 20%
National citizen means Latvians in Latvia, Lithuanians in Lithuania and Estonians in Estonia
50%
40%
30%
20%
10%
0%
32%
15%
1998 2002 1998 2002 1998 2002
11%
14%
National citizens Others
Latvia Lithuania Estonia
17%
UNIONISATION ACCORDING TO GENDER
24%
15%
16%
14%
1998 2002 1998 2002 1998 2002
11%
12%
9%
14%
20%
10%
10%
Female Male
Latvia Lithuania Estonia
In all the Baltic countries, trade union membership is clearly more usual
among public-sector employees than those in the private sector. It can be said
that the trade union movement has not been able to legitimate itself in the eyes
of private-sector wage earners. While eight per cent of the private-sector
15%
23%
14%

71
workers in Latvia and Estonia are members, the corresponding percentage in
Lithuania has dropped sharply to five per cent. In Latvia and Lithuania, the
membership decrease has affected both the private and the public sector. In
Estonia, by contrast, no change has taken place in the rate of unionisation in
the private sector; the growth is due solely to increased involvement on the
part of public-sector employees. Thus, the new members in Estonia are typically
ageing workers in the public sector, and they are more frequently of Russian
nationality than Estonian.
The workplaces in the public sector are often quite large in size and, indeed, in
all three countries, union membership is clearly more common at big workplaces
(with over 50 employees) than at small ones. In Lithuania especially,
unionisation is extremely rare at small workplaces with less than 10 employees.
Of the wage earners interviewed in Lithuania, 243 worked in small workplaces
of this type, and only two of these stated that they belonged to the trade
union movement, while one did not want to answer the question. The other
240 did not belong to a union. The unionisation rate among wage earners at
workplaces with less than 10 employees was only 0.8 %. In Estonia, the corresponding
extent of unionisation at small workplaces was six per cent, and in
Latvia eight per cent.
UNIONISATION ACCORDING TO OWNERSHIP OF THE WORKPLACE
50%
40%
30%
20%
10%
0%
42%
Latvia Lithuania Estonia
10%
38%
8%
21%
11%
19%
5%
20%
28%
8% 8%
1998 2002 1998 2002 1998 2002
Public sector Private sector

72
Trade union representation at the workplaces follows the same trend as does
trade union membership. The trade union movement is more frequently represented
at the workplaces in Latvia than those in the other Baltic countries. In
Latvia, however, as in Lithuania, trade union representation is declining. In
Estonia, on the other hand, the trade unions are slightly better represented than
three years ago. In all the Baltic countries, the trade union movement is considerably
more prominent in public-sector than in private-sector workplaces 2 .
The percentages shown in the figure, however, reveal how large a proportion
of the wage earners knew about the existence of a trade union at their workplace.
Such awareness is not necessarily linked to membership on the part of
the respondent.
50%
40%
30%
20%
10%
0%
TRADE UNION IS REPRESENTED IN WORKPLACE
33%
27%
27%
23%
22%
Latvia Lithuania Estonia
1998 33% 27% 22%
2002 27% 23% 25%
2 On the basis of the workers' answers, the trade union movement is represented in Latvia at almost
half (49 %) of the public-sector workplaces. In the private sector, the representation is 12 %. The
situation in Estonia is very similar to that in Latvia. The trade unions are represented at 47 % of Estonia's
public-sector workplaces and 13 % of those in the private sector. In Lithuania, the private-sector
representation is at the same level as in the other two countries (12 %), but in the public sector it is
clear that the trade unions are less commonly represented than in Latvia and Estonia. Only just over
one-third (37 %) of Lithuania's public-sector employees said that the trade union movement was represented
at their workplace.
25%

WAGE EARNERS’OPINIONS OF THE TRADE UNION
MOVEMENT
73
The workers were also asked several questions about the kind of mental pictures
they have of the trade union movement. What is striking in all the Baltic
countries is the wage earners' uncertainty as to what the trade union is doing
nowadays and what influence it has. The shortcomings in the foundation of
legitimation for the movement are connected, at least in part, with the fact that
the citizens are very uninformed. It is generally known that for a long time it
has no longer been a institution for dispensing state social politics, but no new
role has yet taken shape for it in the minds of the public.
The most uninformed of all are in Estonia, where as many as 41 % of the wage
earners stated that they were uncertain about the way the trade union movement
presently operated, and only 14 % said that they were very familiar, or
even quite familiar, with the subject. The rest of the respondents either did not
know how to answer the question at all, or else they were unable to state that
they knew the subject either well or badly.
40%
20%
0%
-20%
-40%
25%
-26%
FAMILIARITY OF TRADE UNIONS
Totally or somewhat agree
Totally or somewhat disagree
Claim: "I know well the way trade unions work"
21%
-21%
14%
-41%
Latvia Lithuania Estonia

74
In any case, the proportion of uninformed persons was considerably greater in
Estonia than in Latvia and Lithuania. From this, it can be concluded that the
trade union movement in Estonia has been able to make a clean break with the
old way of working that was normal during the Soviet period. Present trade
union activity in Estonia is not perceived as being a continuation of old times.
Respondents were unable, however, to say what the trade unions actually do
nowadays and how they work.
The general uncertainty among wage earners as to how the trade union movement
operates can also be seen in the fact that most of them do not know
whether the trade unions have possibilities of controlling or monitoring adherence
with agreements made. In Latvia, one in five employees believed that the
trade unions had at least quite good possibilities of controlling compliance
with agreements; 15 % of the workers in Lithuania and 14 % in Estonia were
of that opinion. Correspondingly, a minority of the wage earners thought that
the possibilities in question were poor. In all three countries, nearly half the
employees could not answer the question at all; and, further, almost one-quarter
were unable to formulate their view one way or the other and chose the
neutral alternative. This being so, the proportion who were uninformed varied
between the high figures of 67-70 %, depending on the country: in a nutshell,
two-thirds of the wage earners could not say whether or not the trade union
movement was able to control adherence to agreements made.
How well or badly are trade unions able to control workplaces' adherence
to agreements, in general? Percentage of all respondents.
LATVIA LITHUANIA ESTONIA
Very well 4 % 1 % 2 %
Quite well 16 % 14 % 12 %
Not well nor badly 22 % 24 % 23 %
Quite badly 6 % 11 % 11 %
Very badly 4 % 7 % 5 %
Do not know 48 % 43 % 47 %
Total 100 %
(N=904)
100 %
(N=909)
100 %
(N=900)

75
Wage earners' overall perception of the trade union movement is very fragmented.
In none of the Baltic countries is there any one general public idea of
the trade unions - rather, the opinions are divided fairly evenly between three
groups: those regarding the unions positively, those regarding them negatively,
and those who are uncertain. Although its unionisation rate has in fact
decreased, Lithuania has the greatest percentage who see the trade unions as
having a good public image. Of the Lithuanian workers, 42 % evaluated them
positively and one-third negatively. A quarter of the respondents could not
formulate an opinion on the matter. In Latvia, the percentage of wage earners
regarding the unions' reputation as good was precisely as great as the proportion
regarding it as bad (39 %), and more than one-fifth of the respondents
were unsure. In Estonia, too, the percentages of positive and negative evaluations
were in practice equally great (37-38 %), and one in four could not answer
the question.
Opinion about the public image of trade unions. Percentage of all respondents.
LATVIA LITHUANIA ESTONIA
Positive 10 % 12 % 7 %
Rather positive than
negative
29 % 30 % 30 %
Rather negative than
positive
29 % 27 % 32 %
Negative 10 % 7 % 6 %
Do not know 22 % 24 % 25 %
Total 100 %
(N=904)
100 %
(N=909)
100 %
(N=900)
Belief in the trade union movement is still stronger in Latvia than in the other
Baltic countries. The unionisation rate is higher, and a larger proportion of the
wage earners (32 %) believe that the trade unions are aware of the workers'
problems. In Latvia, also the trade union leaders are trusted more than those in
Lithuania and Estonia. The great public uncertainty prevailing in Estonia is
reflected in these questions, too. Since the trade union movement is just not
known at all, its aims are not known either, let alone the trustworthiness of its
leaders. Over half of the Estonian workers are uninformed about both these
aspects. In Latvia and Lithuania, too, uncertainty is common, but not quite as
general as in Estonia.

40%
20%
0%
-20%
-40%
32%
-22%
76
OPINIONS OF TRADE UNIONS (I)
Trade unions know problems of One can trust trade union leaders
ordinary employees well
27%
23%
-25% -25%
24%
-27%
20% 19%
-31%
-26%
Latvia Lithuania Estonia Latvia Lithuania Estonia
Totally or somewhat agree Totally or somewhat disagree
The trade union movement does not have great popularity among the public.
One in five Latvian wage earners said that his/her co-workers considered trade
union membership important. In Lithuania and Estonia, this view is held considerably
more seldom. The low rate of unionisation is not due to opposition
from employers. In Latvia and Estonia, only about one-tenth of the workers
reported that their employer took a negative attitude toward membership of the
trade union movement. In both these countries, about one wage earner in three
thought that the employer did not oppose unionisation of the employees, and
over half felt that the question did not matter to the employer or was of no current
interest.
In Lithuania, the situation differs somewhat from that in the other Baltic
countries, because one-fifth of the respondents considered that their employer
regarded membership negatively, and similarly one-fifth felt that he regarded
it positively. The employers' attitude toward the trade union movement is thus
clearly more negative in Lithuania than in the other Baltic countries. This is
probably due to the many problems in Lithuania's working life and business
life, which have resulted in delays in wage payment, for example. This, in
turn, has meant increased disputes between the trade unions and the employ-

77
ers. Employer opposition, however, is not a significant reason for the low rate
of employee unionisation in Lithuania, either. We have seen above that the
small workplaces in Lithuania have very few trade union members, but at
those same workplaces there is less opposition from employers than at the larger
workplaces. On the other hand, those working at the small workplaces
were less informed on the matter than those at the larger ones. This indicates
that the matter was not of current interest. Since employees at the small workplaces
do not usually belong to a union, the employers have not needed to take
any stand on the issue at all. It can nevertheless be concluded that the employers
at Lithuania's small workplaces are not, to any significant extent, opposed
in principle to employees' union membership. 3 The low rate of unionisation is
not, in general, due to this.
40%
20%
0%
-20%
-40%
21%
-29%
OPINIONS OF TRADE UNIONS (II)
My co-workers think it is very My employer is against employees
important to be a member belonging to a trade union
of a trade union
16%
-33%
12% 11%
-37%
-32%
19%
-20%
12%
-34%
Latvia Lithuania Estonia Latvia Lithuania Estonia
Totally or somewhat agree
Totally or somewhat disagree
An important reason for the low unionisation rate is constituted partly at least
by the fact that the employees do not feel they get any benefit from belonging
3 Of the wage earners at workplaces in Lithuania with under 10 employees, 13 % stated that their
employer opposed workers' membership of the trade union movement, and 17 % considered that their
employer regarded such membership positively. A great majority (62 %) of the employees at Lithuania's
small workplaces could not express an opinion on the subject, and 8 % said that their employer
took a neutral attitude towards it. Employers' opposition was greatest at large workplaces with over 50
employees. At these, nearly a quarter (23 %) of the workers stated that the employer held a negative
view of workers' unionisation.

78
to the trade union movement. In all the Baltic countries, over one-third of the
workers were of this opinion, and one-fifth took the opposite standpoint. The
differences between the countries in this respect were marginal. The proportion
who were unsure or regarded the matter neutrally was again great, which
confirms the observation already made that a majority of the wage earners are
not familiar with the trade union movement.
Quite a lot considered that trade union activity as a whole was old-fashioned
and therefore unsuited to the present day. One in four Estonians and Lithuanians
thought this way; and in Latvia, the view was still more common. On the
other hand, in all the countries, slightly more than one in four did not see the
trade union movement as old-fashioned; so the opinions were quite equally
divided for and against.
40%
20%
0%
-20%
-40%
OPINIONS OF TRADE UNIONS (III)
Being a member of a trade union does Trade union activity is
not bring any advantage backward-looking
39% 37% 37%
-20% -18% -19%
30%
25% 25%
-26% -26% -28%
Latvia Lithuania Estonia Latvia Lithuania Estonia
Totally or somewhat agree
Totally or somewhat disagree
In each country, the respondents who could not answer the question at all were
noticeably more numerous than those who were either for or against the unions.
This, too, indicates that in the view of the wage earners the trade union
movement has not succeeded in creating a proper profile for itself, in any of
the Baltic countries. Employees are just not familiar with it, and neither its
opportunities for influence nor its operational principles are very well known.

79
The movement has been unable to find its own place, and it has not been successful
in gaining the confidence of the public at large as a promoter of wage
earners' interests.
INDIVIDUAL AND COLLECTIVE AGREEMENTS
The wage earners were also asked whether any collective agreements existed
at their workplace. As expected, there are considerably more collective agreements
in public-sector workplaces than in the private sector. It is nevertheless
interesting to note that collective agreements do exist in some private-sector
workplaces even though the trade union movement is not represented in them
and neither do they have any employees who belong to a trade union. At some
workplaces, the employer and employees have themselves taken the initiative
in making collective agreements, without the involvement of outsiders. This,
too, points to the fact that the trade union movement has not been able to legitimate
itself to any great extent.
50%
40%
30%
20%
10%
0%
COLLECTIVE AGREEMENTS EXIST IN WORKPLACE
37%
19%
38%
26% 26%
Public sector Private sector All
31%
17% 17%
Latvia Lithuania Estonia
The wage earners were asked what was the main way in which they negotiated
at their workplace about their wages, holidays, the duration of their employment
contracts, work safety, and their working hours. With the exception of
22%

80
working hours, the same things were asked in the same way in the previous
working life barometer for the Baltic countries, so that the comparison between
the two points in time is reliable.
In all the countries, wage negotiations are generally taken care of individually.
Well over half of the respondents said that as a general rule they negotiated
alone about matters concerning their wages. In Lithuania, there has been a
very strong trend towards more individual methods of negotiation. At the end
of 1998, more employees in Lithuania stated that they usually negotiated their
wages collectively, rather than individually. At the beginning of 2002, there
has been a very strong shift in emphasis towards individual agreement on
wages. This trend in Lithuania is probably linked to the increased difficulties
in paying wages, as well as the growing incidence of unregistered work and
other negative phenomena. The shift in the direction of individual wage
agreement is an interesting phenomenon from the research standpoint, because
at the end of 1998 over half the Lithuanians hoped that wages would be negotiated
more collectively than was the case at that time, and only one per cent
hoped for more individuality in the agreement practices 4 . The actual trend in
Lithuania has been quite the opposite of what the employees had, on the
whole, wished for. It can therefore be assumed that the wage earners have
more or less ended up having to agree on their wage matters individually. In
the event that one does not trust in collective bargaining and its currently prevailing
possibilities or procedures, then it may be wisest to rely on one's own
negotiation skills. Perhaps for this reason, the Lithuanian answers reflect a
subtle contradiction: despite the hopes of collective bargaining, about half the
employees nevertheless believe that it is wisest to negotiate wages oneself as a
general rule.
In Estonia, too, there has been a slight increase in individual wage negotiations.
These concern 70 % of the employees, which is a higher percentage than
elsewhere in the Baltic countries. Individuality in the agreement culture is also
esteemed more highly in Estonia than in the others. Of Estonia's wage earners,
4 At the end of 1998, 56 % of Lithuania's wage earners were hoping for more collective bargaining
negotiations on wage issues. In Latvia, 50 % of the wage earners took a similar view; and in Estonia,
46 %. More individual negotiations were desired by 1 % of Lithuania's, 4 % of Latvia's and 4 % of
Estonia's workers. The rest of the respondents were either unable to answer the question, or were
satisfied with the prevailing practice.

81
61 % consider personal agreement negotiations as the best way to resolve
wage issues.
100%
80%
60%
40%
20%
0%
68%
29%
3%
70%
23%
SALARY NEGOTIATIONS
Estonia Latvia Lithuania
67%
26%
7% 7%
62%
28%
10%
45%
42%
1998 2002 1998 2002 1998 2002
Individually Collectively Cannot say
Wage and salary issues should be negotiated predominantly…
13%
61%
29%
10%
ESTONIA LATVIA LITHUANIA
…individually 61 % 52 % 53 %
…at the workplace together with
co-workers
19 % 21 % 23 %
…at the workplace by shop stewards 7 % 7 % 5 %
…at national level by labour market
organisations
8 % 15 % 12 %
No opinion 5 % 5 % 7 %
Total 100 %
(N=900)
100 %
(N=904)
100 %
(N=909)
In Latvia, on the other hand, there has been a slight decrease in individuality,
but almost two-thirds (62 %) of its wage earners still agree on their wage
matters personally as a general rule. There, belief in the efficacy of national
agreements on wage issues is a little more common than it is in Estonia and

82
Lithuania. However, only 15 % of Latvia's wage earners see national agreements
as the best way of deciding with regard to wages.
Holidays are negotiated collectively considerably more often than are wages.
In Estonia and Latvia, the trend has been away from individual holiday
agreements and towards collectively agreed solutions. Nevertheless, in both
countries, where holidays are concerned, individual agreement is still more
common than collective bargaining. In Estonia slightly over half (52 %) and in
Latvia slightly under half (48 %) of the wage earners arrange their holidays by
individual negotiation. A majority of the employees in both countries would
like some level of collective holiday agreements - most often at workplace
level.
In this aspect, Lithuania differs markedly from the other countries under comparison.
In recent years in Lithuania (unlike Estonia and Latvia), individual
agreement on holiday matters has increased and collective bargaining on the
subject has decreased. Individual holiday agreements are also seen as more
desirable in Lithuania than in the other Baltic countries. In none of the countries
is there any significant degree of support for national-level holiday
agreements made by the social partners. Only 7 % of the Latvians and Lithuanians
considered such centralised national solutions to be the best. In Estonia,
still fewer (4 %) thought that way.

100%
80%
60%
40%
20%
0%
62%
37%
1%
83
NEGOTIATING HOLIDAYS
Estonia Latvia Lithuania
52% 52%
48%
43% 42% 43%
5%
6%
1998 2002 1998 2002 1998 2002
9%
Individually Collectively Cannot say
Holidays should be negotiated predominantly…
50%
40%
10%
56%
38%
ESTONIA LATVIA LITHUANIA
…individually 42 % 39 % 49 %
6%

…at the workplace together with
co-workers
84
44 % 42 % 34 %
…at the workplace by shop stewards 5 % 7 % 4 %
…at national level by labour market
organisations
4 % 7 % 7 %
No opinion 5 % 5 % 6 %
Total 100 %
(N=900)
100 %
(N=904)
100 %
(N=909)
Concerning the content and duration of their employment contract, a majority
of the wage earners in all three countries negotiate a personal agreement with
their employer. However, in Estonia and Latvia, individual agreement on the
subject shows a slight decline. In this, too, the Lithuanian trend differs from
that of the other countries under comparison: individual agreement in Lithuania
has clearly increased in recent years.
Clearly, in all the Baltic countries, individual agreement activity regarding
employment contracts takes place more than would be desired. In other words,
a considerable number of workers feel that they end up having to agree themselves
on the contracts, even though they would like to have collective solutions
at some level. The same was also apparent in the case of wages and holiday
arrangements. Lacking or limited opportunities for agreement evidently
force many wage earners to make individual agreements. In Latvia, for example,
out of those who had negotiated the content of their employment contract
individually, 30 % considered some degree of collective negotiations to be a
better solution.
Of the aspects under study, individual agreement is the least frequent of all in
those connected with employees' safety and health at work. In all the Baltic
countries, these matters are agreed on collectively more than individually. This
was the case also during the previous survey in 1998. In Estonia and Latvia in
recent years, collective bargaining on issues of safety and health at work has
increased and individual agreement decreased. However, in this respect again,
individual agreement takes place more than the employees would like. For
example, only one in five wage earners in Estonia sees individual agreement
negotiations on such questions as the best solution. More than one in three
nevertheless agrees individually on matters of safety and health at work.

100%
80%
60%
40%
20%
0%
75%
23%
85
EMPLOYMENT CONTRACT NEGOTIATIONS
Estonia Latvia Lithuania
2%
72%
19%
9%
69%
61%
25% 25%
6%
14%
49%
39%
65%
23%
12% 12%
1998 2002 1998 2002 1998 2002
Individually Collectively Cannot say
Employment contracts should be negotiated predominantly…
ESTONIA LATVIA LITHUANIA
…individually 63 % 47 % 54 %
…at the workplace together with
co-workers
17 % 25 % 22 %
…at the workplace by shop stewards 9 % 13 % 5 %
…at national level by labour market
organisations
5 % 6 % 10 %
No opinion 6 % 9 % 9 %
Total 100 %
(N=900)
100 %
(N=904)
100 %
(N=909)
An interesting change in all the countries is the growing proportion of those
who are uncertain on this question. A noticeable percentage (10-16 % of the
respondents) did not know how or at what level work safety and health questions
are usually agreed on. Does this reveal that, in general, these aspects are
not negotiated as often as before?

86
NEGOTIATIONS ON EMPLOYEES' SAFETY AND HEALTH AT WORK
100%
80%
60%
40%
20%
0%
45%
53%
Estonia Latvia Lithuania
2%
36%
54%
10%
49%
44%
7%
56%
57%
31% 32% 32%
1998 2002 1998 2002 1998 2002
13%
Individually Collectively Cannot say
Employees’ safety and health issues should be negotiated predominantly…
ESTONIA LATVIA LITHUANIA
…individually 20 % 19 % 23 %
…at the workplace together with
co-workers
48 % 43 % 41 %
…at the workplace by shop stewards 14 % 14 % 7 %
…at national level by labour
market organisations
11%
52%
11 % 17 % 20 %
No opinion 7 % 7 % 9 %
Total 100 %
(N=900)
100 %
(N=904)
16%
100 %
(N=909)
The desire for collective bargaining is often related to workplace-level agreement.
In all the countries, a little under half the wage earners would like to
agree on work safety and health issues within the workplace, together with coworkers.
On the other hand, among the issues compared, as far as safety and
health at work is concerned there is in fact some degree of support also for
centralised, national-level agreements - in other words, in the opinion of wage

87
earners, there would clearly be room for more active effort by the trade unions
in this respect.
NEGOTIATIONS ON LENGTH OF DAILY OR WEEKLY WORKING TIME
100%
80%
60%
40%
20%
0%
46%
47% 47% 47%
42%
44%
7%
Estonia Latvia Lithuania
11%
Individually Collectively Cannot say
Length of daily or weekly working time should be negotiated predominantly…
ESTONIA LATVIA LITHUANIA
…individually 31 % 27 % 36 %
…at the workplace together with
co-workers
39 % 37 % 36 %
…at the workplace by shop stewards 12 % 11 % 6 %
…at national level by labour
market organisations
12 % 18 % 15 %
No opinion 6 % 7 % 7 %
Total 100 %
(N=900)
100 %
(N=904)
9%
100 %
(N=909)
The wage earners negotiate their daily and weekly working hours collectively
a little more often than individually. The differences in generality between
these practices are nevertheless small. On the whole, the employees would like

88
more collectivity in negotiation procedures concerning working hours. Somewhat
over one-third (36 %) of the workers in Lithuania, under one-third
(31 %) in Estonia and a little more than one-quarter (27 %) in Latvia saw individual
negotiations as the best solution - in other words, a clear majority
would like some level of collective bargaining. Also in questions of working
hours, many have to negotiate alone, against their will, since in all the Baltic
countries almost half the wage earners negotiate their working hours themselves
as a general rule.

89
SALARY AND LIVELIHOOD
This chapter discusses salary development in Estonia, Latvia and Lithuania
between Autumn 1998 and January 2002. The length of the period under survey
is therefore a little over 3 years. To start with, the forms of salary payment
being used in these countries are examined. After that, the quantitative
changes in net salaries are analysed for each country separately. This is not a
question of studying the salary structure so much as monitoring the changes in
the wage earners' standard of living. The last section of the chapter deals with
problems connected with salary payment, such as black income and payment
delays.
SALARY ARRANGEMENTS
A monthly salary that is fixed, or includes also fixed regular additional payments,
is the most general form of salary payment in all the Baltic countries.
This kind of payment basis has become increasingly common in Estonia and
Lithuania. In the year 2002, more than half of all the workers in the Baltic
countries received a salary of this type. The proportion in Estonia is still
smaller than that in the other two countries. Despite increased use of the fixed
payment method, the percentage receiving variable wages is still high.

SALARY PAYMENT BASIS
90
ESTONIA LATVIA LITHUANIA
1998 2002 1998 2002 1998 2002
a. Fixed monthly salary 46 42 60 46 55 57
b. Fixed monthly salary +regular additional
payment
Fixed salary or fixed salary
+ regular extra (a+b)
c. Only performance pay
(contract fee, sales commission, etc.)
.. 12 .. 15 .. 4
46 54 60 61 55 62
22 21 21 20 22 25
d. Fixed monthly salary + results fee 25 19 14 15 17 8
Variable (irregular) total salary
( c+d)
47 40 35 35 39 33
Other practice 4 4 2 2 2 3
No answer 3 1 3 3 4 2
TOTAL(%) 100 100 100 100 100 100

91
In both of the years under study, the wage payment of a clear majority in
Lithuania has been based simply on a fixed monthly salary; besides the fixed
salary, only just over four per cent of the wage earners get regular additional
payments based on the length of the employment relationship, for instance. In
Latvia and Estonia, regular additions associated with the basic monthly salary
are more common.
For about one-fifth of the workers in the Baltic countries, the size of their salary
depends entirely on result - e.g. sales quantity or the equivalent. The proportion
is slightly greater in Lithuania than in the other two countries. In Estonia
and Latvia, the use of merely result-based pay has decreased a little within
the last three years. Very few in Lithuania receive pay consisting of a fixed
monthly salary plus variable additional payments. In Estonia, too, fewer than
before receive such additions.
In all the Baltic countries, men's salaries are clearly more variable and flexible
than women's. Similarly, work is done on a fixed salary in the public sector to
a much greater extent than in the private sector. The gap between the genders
comes to the fore within the different sectors, too. At older workplaces established
before the regaining of independence, variable salaries are clearly less
common than average in comparison with new workplaces.
FACTORS AFFECTING SALARIES
Traditionally - when work has been done on an hourly wage, for example - the
size of the salary has been directly proportional to the amount of work. In recent
years, quality factors have also been emphasised besides the amount, and
the salary size has been partly related to the quality of the work. At many
workplaces, in addition to the above, it has become increasingly common for
wages to be tied to the workplace result. Various result bonuses, other bonuses
or the equivalent may be paid.
On the whole, factors like these have a very strong link with salary size in Estonia,
Latvia and Lithuania. This is seen when the situation is compared with
that in Finland. Underlying this, obviously, is at least the fact that wages in the

92
Baltic countries are often agreed on individually. In countries like Finland,
they are agreed on through collective agreements.
LATVIA 98
'02
ESTONIA 98
'02
LITHUANIA 98
'02
FINLAND 98
'02
FACTORS INLUENCING SALARY
16%
17%
19%
20%
23%
23%
28%
0% 10% 20% 30% 40% 50% 60%
32%
37%
39%
40%
41%
41%
44%
44%
46%
49%
49%
51%
52%
52%
53%
53%
Work capacity
Work quality
Workplace result
Compared with 1998, the greatest change has taken place in Lithuania, where
the importance of all three factors has grown very clearly. In Latvia and Estonia,
the changes have been smaller. In 2002, in all three countries, the amount
of work had more importance than its quality. The quality of work, in turn,
was still more clearly of greater significance than the workplace result.
In Estonia, the significance of work quality has grown and the link between
work amount and salary has also become a little stronger. Result bonuses, on
the other hand, have clearly been used less than earlier. The changes in Latvia
compared to 1998 are rather small. Work quantity has gained slightly in importance.
However, the work quality and result bear somewhat less connection
with salary than previously. In Lithuania, the significance of all three factors
has increased a great deal. Whereas before, it was clear that factors like these
had a weaker connection with salary payment in Lithuania than in other Baltic
countries, the situation has now been reversed.
57%

WAGE EARNERS' NET INCOME 1998 – 2002 IN
ESTONIA, LATVIA AND LITHUANIA
93
The wage earners' standard of living is substantially affected by changes in the
net income that remains in hand. This study takes a look at these changes for
each of the three countries separately. The idea is not so much to examine
changes in the Baltic countries' salary level or wage structure per se. Rather,
the question is to investigate the wage earners' standard of living and changes
in that.
In this survey, the respondents were asked the amount of the net salary that
remained in hand. Also included in this net salary has been the pay for any
secondary job. In principle, it includes any black income as well. It is nevertheless
clear that only a very small proportion of income like this is brought to
light by the survey method. Secondary jobs and black income are discussed
separately towards the end of this chapter.
It is rather difficult to evaluate differences in living standard between the
countries on the basis of salary alone. The main emphasis here is therefore on
changes within each country. The purchasing power of wages varies according
to the country, because of the difference in price level for instance. The countries'
currency values have been tied to the dollar and, more recently, to the
euro. The external values of the currencies have fluctuated very strongly, particularly
because of variations in value between the dollar and the euro. For
example, if the income level of each country is converted into euro, then, due
to strengthening of the dollar, the income level appears to have improved. In
actual fact, however, looked at from within the countries, that has not been the
case. Internal inflation and weakening of purchasing power have, to a greater
or lesser degree, eaten away the income level improvement resulting from the
external strengthening of the currencies.
One way of describing the change from the consumer's point of view is to call
it a change in purchasing power parity. The World Bank, among others, has
estimated the changes in purchasing power in different countries. The idea of
purchasing power parity is that the different countries are compared with the
United States and with what an American can buy with one dollar, for example.
How many local monetary units – krones, latis or litas – are needed to

94
make the same purchase in Estonia, Latvia or Lithuania? According to the
World Bank, the gross national incomes of the Baltic countries in dollars per
capita, adjusted for purchasing power parity, have developed as follows:
Gross national income/purchasing power
parity per capita ($) 1
1998 1999 2000
Estonia 7 563 8 190 9 340
Latvia 5 777 6 220 7 070
Lithuania 6 283 6 490 6 980
Source World Bank: World Development Report 2002
http//www.stat.fi/tk/tp/maailmanumeroina/
In the year 2000 the gross national income per capita, adjusted for purchasing
power parity, was higher in Estonia than in Latvia and Lithuania. Corresponding
data for 2001 are not available, but we will see below that the income
differences in 2001 had evidently levelled out a little, especially between
Estonia and Latvia.
In the following, in order to by-pass the fluctuations caused by the external
values of currency, we will examine the changes in salary level for each Baltic
country separately. To control the effect of the countries' price level and internal
inflation, the salary data for each country have been deflated to the 1998
level by using consumer price indices.
The yearly changes in the consumer price
index compared with the previous year
1999 2000 2001
Estonia 3.3 % 4.0 % 5.8 %
Latvia 2,4 % 2.6 % 2.5 %
Lithuania 0.8 % 1.0 % 1.3 %
Source: Lithuania, Latvia and Estonia – Key indicators 1999 – 2001.
Statistics Lithuania.
1 Corresponding figures for the year 2000: Finland 24 570 $ and USA 34 100 $

95
The rise in consumer prices has obviously been the greatest in Estonia and the
least in Lithuania. Below, all the country-specific data are presented in terms
of 1998 prices and in the currency of the country in question.
ESTONIA
The salary amount remaining in hand in Estonia has changed very little between
November-December 1998 and January 2002, if the effect of the rise in
consumer prices is taken into account. Nominal salaries have grown, but the
rather steep rise in consumer prices has decreased their purchasing power.
NET MONTHLY SALARY IN ESTONIA, 1998 AND 2002
Deflated to 1998 level using consumer price index (kr/month)
11-12/1998 1/2002
Change
(kr/month)
Change
(%)
Median 2761 kr 2673 kr -88 kr -3.2 %
Mean 3323 kr 3299 kr -24 kr -0.7 %
When the deflated salary development is examined as a whole, it is observed
that - taken on average - the net salary remaining in hand has fallen slightly.
Nominal wages have increased, but consumer prices have risen still more. The
rise in consumer prices was particularly great in Estonia in 2001. It is important
to notice that the concept of the net salary means in this connection ‘the
salary remaining in hand’. For example black income is part of it and in Estonia,
receiving of black income has decreased markedly (see later in this chapter).
Only a rough overall picture is gained on the basis of the average salary development.
Wage development may have been different for different workers. It
is therefore worthwhile to study the change in net salaries a little more differentially
than has been done above. One method is to divide the total number of
wage earners into ten equally sized parts, i.e. deciles. It is then possible to examine
what kind of net wages are received by those belonging to each decile.

96
In this way, the salary distributions for the years 1998 and 2002 can be compared.
7000,0
6000,0
5000,0
4000,0
3000,0
2000,0
1000,0
0,0
NET WAGES AND SALARIES BY DECILES
ESTONIA 1998 AND 2002
At constant (1998) prices, inflation controlled by consumer price index
Net wage or salary (krones/month)
1998
2002
10 % 20% 30% 40% 50% 60% 70% 80% 90%
1998 1236,0 1700,0 2000,0 2300,0 2800,0 3000,0 3800,0 4800,0 6000,0
2002 1408,0 1761,0 2127,0 2465,0 2641,0 3095,0 3592,0 4401,0 5262,0
Change (%) 13,9 3,6 6,4 7,2 -5,7 3,2 -5,5 -8,3 -12,3
The fall in real salary level has not applied in the same way to all the income
groups. The deciles indicate that for 40 per cent, those with the smallest salaries
(the lowest four deciles), the salaries have increased; and for others they
have decreased. The greatest change is seen in the bottom and top deciles. In
the bottom decile, the change has been +13.9 per cent; and in the top decile,
correspondingly, it has been –12.3 per cent. There has also been a clear positive
development for those earning about 2000 – 2500 krones per month. On
the whole, the income differences can be seen to have diminished somewhat
during the period 1998 – 2002.
SALARY DIFFERENCES BETWEEN THE GENDERS
In 1998, the net salaries of Estonian women amounted on average to 63 per
cent of the men's net salaries. The differences in salary between the genders
have decreased during the past three years. In 2002, the women's net salaries
were 69 per cent of the men's measured by the medians, and 71 per cent according
to the mean values.

97
WOMEN'S SALARIES AS A PERCENTAGE OF MEN'S IN 1998 AND
2002, CALCULATED FROM THE MEDIAN AND MEAN SALARIES 2
Ratio of women's salaries to men's (%)
1998 2002
Change
(%)
All wage earners
Median wages/salaries
Mean wages/salaries
63 %
63 %
69 %
71 %
+6
+8
Private sector
Public sector
Median wages/salaries 61 % 63 % +2
Mean wages/salaries 66 % 70 % +4
Median wages/salaries 63 % 73 % +10
Mean wages/salaries 63 % 73 % +10
Median wages/salaries 56 % 63 % +7
New workplaces Mean wages/salaries 61 % 71 % +10
Reorganised Median wages/salaries 71 % 70 % -1
workplaces Mean wages/salaries 64 % 64 % 0
Old workplaces
Median wages/salaries
Mean wages/salaries
70 %
73 %
77 %
77 %
+7
+4
The salary gap between men and women has clearly diminished more in the
public than in the private sector. In median terms, it was 10 per cent smaller in
the public sector. The percentage ratio of women's salaries to men's salaries is
definitely the smallest at new workplaces established after the regaining of
independence, and clearly the greatest at the old workplaces.
The reduction in the salary gaps results from the fact that the women's salaries
have improved more than the men's. On the basis of deflated salaries, it can be
seen that - unlike the women's - the men's real salaries according to the median
have decreased slightly, and the mean values have decreased more. At the beginning
of 2002, the monthly salary that the women were receiving in hand
was on average about 1100 krones less compared with the men. Three years
earlier the gap was about 1300 – 1500 krones.
2 The percentages have been calculated from the net salaries, which have not been
adjusted to account for the change in consumer prices.

WOMEN'S AND MEN'S NET SALARIES, 1998 AND 2002
Deflated to 1998 price level using consumer price index (kr/month)
MEN
WOMEN
7000,0
6000,0
5000,0
4000,0
3000,0
2000,0
1000,0
98
1998 2002
Change
(krones)
Change
(%)
Median 3525 kr 3470 kr -55 kr -1.6 %
Mean 4122 kr 3915 kr -207 kr -5.0 %
Median 2206 kr 2412 kr +206kr +9.3 %
Mean 2589 kr 2776 kr +187 kr +7.2 %
0,0
NET WAGES AND SALARIES BY DECILES
MEN AND WOMEN IN ESTONIA 1998 AND 2002
At constant (1998) prices, inflation controlled by consumer price index
Net wage or salary (krones/month)
1998women
2002women
1998men
2002men
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change women(%) 14,0 3,0 3,6 5,7 9,6 5,6 2,7 6,7 2,0
Change men(%) 14,5 10,1 5,6 -0,2 0,6 -4,1 -12,0 -10,8 -6,1
A study of the deciles shows that the higher the decile to which a person belongs,
the greater the salary difference between the women and the men. This
difference has nevertheless diminished slightly during the period 1998 – 2002,
because the men's salaries have grown only in the three lowest and the fifth
deciles while in the women's case there has been growth in all the deciles. For
both men and women, the percentage growth has been the greatest in the bottom
decile. In the women's case, unlike the men's, growth has taken place in
the middle-income category, too. Men's deflated net salaries have become
lower both in the middle-income bracket and also, especially, in the top three

99
deciles. The percentage changes in the top income classes have been so great
that also the undeflated nominal salaries have stayed the same or even fallen.
PRIVATE AND PUBLIC SECTOR
During 1998 - 2002, the net salaries in the private sector rose by 5.6 per cent
measured by the median method and 14.4 per cent using the mean value. In
the public sector, the change has been in the opposite direction. The median
salary dropped by 9 per cent, and the average salary by 20.3 per cent. This
signifies above all a decrease in high salaries in the public sector.
SALARY CHANGE IN THE PUBLIC AND PRIVATE SECTORS
Net salary, deflated to 1998 price level using consumer price index (kr/month)
1998 2002
Change
(krones)
Change
(%)
PRIVATE Median 2500 kr 2641 kr +141 kr +5.6 %
SECTOR Mean 2965 kr 3391 kr +426 kr +14,4 %
PUBLIC Median 3000 kr 2729 kr -271 kr -9.0 %
SECTOR Mean 3932 kr 3134 kr -798 kr -20.3 %
NET WAGES AND SALARIES BY DECILES
PRIVATE AND PUBLIC SECTOR IN ESTONIA 1998 AND 2002
7000,0
6000,0
5000,0
4000,0
3000,0
2000,0
1000,0
At constant (1998) prices, inflation controlled by consumer price index
Net wage or salary (krones/month)
1998 private
2002 private
1998 public
2002 public
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change private(%) 8,3 3,6 10,1 9,6 5,6 2,7 5,3 10,0 11,9
Change public(%) 10,0 6,1 5,0 -8,1 -9,0 -19,5 -26,1 -24,6 -29,5

100
The net salaries in the private sector have risen in all the deciles. In the public
sector, there has been growth in only the bottom three deciles. In the top deciles
the net salaries have fallen considerably, at the most by nearly 30 per cent.
OLD, REORGANISED AND NEW WORKPLACES
The background history of a workplace has significance also for salary payment.
In 2002, measured according to the median, reorganised workplaces
have paid a better salary than old or new ones. In 1998, the highest mean salary
was paid at the new workplaces; and according to the mean value, they
still pay better than the others. This reflects the fact that the biggest salaries
are higher at the new workplaces than at the reorganised or the old ones.
SALARY CHANGE AT OLD, REORGANISED AND NEW WORK-
PLACES Net salary, deflated to 1998 price levels using consumer price index
(kr/month)
1998 2002 Change
(krones)
Change
(%)
OLD
Median 2400 kr 2641 kr +241 kr +10.0 %
WORKPLACE Mean 2728 kr 3081 kr +353 kr +12.9 %
REORGANISED Median 2965 kr 2819 kr -146 kr -4.9 %
WORKPLACE Mean 3515 kr 3319 kr -196 kr -5.6 %
NEW
Median 3200 kr 2640 kr -560 kr -17.5 %
WORKPLACE Mean 4060 kr 3537 kr -523 kr -12.9 %
The changes taking place between 1998 and 2002 have been clear. At old
workplaces, the salary level has improved. This improvement has been relatively
uniform in the different income groups, and the increase varies between
8 and 17 per cent. Only in the highest-income decile of all has the median salary
stayed more or less the same as before. At reorganised workplaces, the
salary level has fallen by about 5 per cent. The decrease is unevenly distributed
between the different income groups, but it has most clearly affected the
highest groups.

101
NET WAGES AND SALARIES BY DECILES OLD, REORGANISED AND
NEW WORKPLACES IN ESTONIA 1998 AND 2002
7000,0
6000,0
5000,0
4000,0
3000,0
2000,0
1000,0
At constant (1998) prices, inflation controlled by consumer price index
Net salary (krones/month)
1998 Old
2002 Old
1998 Reorganised
2002 Reorganised
1998 New
2002 New
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
CHANGES: Old(%) 8,3 10,1 11,2 17,4 10,0 12,9 17,4 13,9 1,3
Reorganised(%) 6,1 -6,9 6,6 5,6 -5,0 2,3 -5,4 -15,2 -3,1
New(%) 10,0 -9,6 -12,0 -20,5 -17,5 -22,3 -20,8 -26,7 -17,8
At new workplaces, there has been a very definite drop in the salary level on
average. Only for the lowest-income decile have incomes increased. In all the
other deciles, the average salary has fallen by 10-27 per cent. At this kind of
workplace, too, the salary reductions have affected those with good incomes
more than the others. One explanation for such a big decrease in average salary
level is that in Estonia new workplaces have been established in sectors
where the salary level is low. The change is connected especially with expansion
of the service sector.
SUMMARY: Estonia
Taken as a whole, when net salary changes are examined, a relatively clear
picture is formed of changes in the living standard of Estonian wage earners
during the years 1998 – 2002. The rise in consumer prices has eaten away the
nominal salary increases completely. The decrease in net salaries has not,
however, been the same for all. The clearest drop in net salaries deflated according
to consumer prices has been in the upper income classes. The differences
in income, therefore, have also been reduced to some extent. Similarly,
the salary differences between women and men have become smaller. The

102
women's salaries have improved in all the income classes, while the men's
have risen in the lowest income groups only. In 2002, the women's net salaries
amounted to about 70 per cent of the men's.
The salary development in the private sector has been positive in all the income
groups. In the public sector, net salary growth has taken place only in
the lowest income classes. The average salary level of highly paid workers in
the public sector has dropped markedly. The salary level has risen at old
workplaces established before 1988, though the salaries there are still lower
than the average. At new workplaces, where the salary level has clearly been
higher than average, there has been a definite decrease in net salaries, particularly
among those earning a high income. On the whole, the reduced purchasing
power of well-paid private-sector workers has evened out the income differences
between the different groups. The change has been due only slightly
to improvement in the purchasing power of those with a small income. The
reason lies rather in the weakened purchasing power of the highly paid, and
therefore the overall salary development appears negative.
LATVIA
In Latvia, the salary development has been positive. When the effect of the
rise in consumer prices is eliminated by deflating the salaries to the 1998 price
level, there is a 17.5 per cent increase on average measured by the median
method. In terms of mean value, the change has been a little smaller, +13 %.
The salary level has thus very definitely improved. The salary growth in Latvia
has indeed been clearly greater than in Lithuania and Estonia.
NET MONTHLY SALARY IN LATVIA, 1998 AND 2002
Deflated to 1998 price level using consumer price index (lat/month)
1998 2002 Change (latis) Change (%)
Median 80 lat 94 lat +14 +17.5%
Mean 101 lat 114 lat +13 +12.9 %
Examined on the basis of deciles, net salaries are observed to have risen in all
the income classes. In Latvia, the rise in consumer prices has not eaten away
the purchasing power of the nominal salaries as has happened in Estonia.

200,0
180,0
160,0
140,0
120,0
100,0
80,0
60,0
40,0
20,0
0,0
103
NET WAGES AND SALARIES BY DECILES 1998 AND 2002
IN LATVIA
At constant (1998) prices, inflation controlled by consumer price index
Latis/month
1998
2002
10% 20% 30% 40% 50% 60% 70% 80% 90%
1998 40,0 50,0 60,0 70,0 80,0 100,0 110,0 140,0 181,0
2002 45,0 57,0 66,0 75,0 94,0 108,0 122,0 151,0 202,0
Change (%) 12,5 14,0 10,0 7,1 17,5 8,0 10,9 7,9 11,6
The improvement in salary has been uniform in the different deciles. In terms
of percentages, the lowest salaries have risen slightly more than the average.
The smallest increase has been in the fourth decile; and in the fifth decile, on
the other hand, the growth has been exceptionally great. The relatively uniform
percentage increases mean that, in terms of latis, the salaries have risen
more in the upper income classes than in the low ones. This signifies that salary
differences in Latvia have grown somewhat during the period between
1998 and 2002.
The positive salary development reflects an improvement in the living standard
of wage earners as the purchasing power of the salary has grown. Has
this development applied to some particular segment of the wage earners, or
has it been positive for all?
WOMEN AND MEN
In Latvia, the median salaries of women in 1998 were 70 per cent of the men's.
In terms of mean values, the figure was 65 per cent. The corresponding pro-

104
portion in 2002 measured by the median was, taken as a whole, 67 per cent;
and according to the mean value, 71 per cent. The salary differences between
the genders in Latvia, examined on average, have changed very little in three
years. In terms of the medians, the salary gaps have grown a little; and expressed
as mean values, they have decreased somewhat. The difference between
these two key figures is due mainly to an evening out of differences
particularly in the case of the highest salaries, but also for the lowest.
WOMEN'S NET SALARIES AS A PERCENTAGE OF MEN'S IN 1998
AND 2002 (Calculated from the median and mean salaries)
Ratio of women's salaries to men's (%) 1998 2002
Change
(%)
Median wages/salaries
All wage earners
Mean wages/salaries
70 %
65 %
67 %
71 %
-3
+6
Private sector
Public sector
New workplaces
Reorganised
Old workplaces
Median
wages/salaries
73 % 64 % -9
Mean wages/salaries 64 % 63 % -1
Median
wages/salaries
67 % 86 % +9
Mean wages/salaries 67 % 87 % +20
Median
wages/salaries
70 % 73 % +3
Mean wages/salaries 69 % 65 % -4
Median
wages/salaries
79 % 67 % -12
Mean wages/salaries 74 % 65 % -9
Median
wages/salaries
68 % 82 % -14
Mean wages/salaries 62 % 82 % -20
The difference between the public and private sectors in Latvia is very great.
In 2002, the ratio of men's to women's salaries was over 20 per cent higher in
the private compared with the public sector. This difference has grown consid-

105
erably during the three-year period, since the salary gap between the genders
has narrowed in the public and widened in the private sector. Also the new, the
reorganised and the old workplaces differ clearly from each other. Only at the
old and the reorganised workplaces has the trend been favourable.
There is still a clear gap between men's and women's real salaries in Latvia. In
January 2002, expressed in terms of 1998 prices, the women's net salaries
were 37 latis lower than the men's measured by the medians, and 40 latis
lower according to the mean value. The corresponding differences three years
earlier were 30 latis (median) and 44 latis (mean).
WOMEN'S AND MEN'S NET SALARIES 1998 AND 2002
Deflated to 1998 price level using consumer price index (lat/month)
MEN
WOMEN
1998 2002
Change
(latis)
Change
(%)
Median 100 lat 112 +12 lat +12.0
Mean 126 lat 135 lat +9 lat +7.1
Median 70 lat 75 lat +5 lat +7.1
Mean 82 lat 95 lat +13 lat +15.9
In Latvia, the salary differences between the genders have changed in a
somewhat different way in various income groups. The differences have become
smaller in the second and especially in the third and fourth deciles. In
the fifth decile, by contrast, the difference has definitely grown. However, the
salaries of women more highly paid than this have very clearly increased more
than those of the men. This evens out the salary differences between the genders.
Roughly speaking, the gaps in salary between men and women in Latvia
have become narrower for both the low-paid and the highly paid. In the middle-income
group, the situation has been the opposite. If, instead of percentages,
one speaks of amounts of money, then it can be said that the rise in the
average salary of well-paid Latvian women has been very marked. The low
inflation has preserved also the purchasing power of the nominal pay rises.

106
NET WAGES AND SALARIES BY DECILES 1998 AND 2002 IN LATVIA
MEN AND WOMEN
250,0
200,0
150,0
100,0
50,0
0,0
At constant (1998) prices, inflation controlled by consumer price index
Latis/month
1998women
2002women
1998men
2002men
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change women(%) 13,2 13,6 14,0 10,0 7,1 17,5 24,4 29,4 23,4
Change men(%) 11,9 3,3 -6,3 -9,2 12,0 1,7 0,7 5,6 6,3
PUBLIC AND PRIVATE SECTOR
A comparison of the public and the private sector also brings out the manyfaceted
nature of the changes in Latvia. Taken overall, the average net salaries
have improved only in the public sector. In terms of the median, the change in
the private sector has been negative. The mean values give a slightly different
picture, because they are influenced by the marked changes at both extremes.
SALARY CHANGE IN THE PUBLIC AND PRIVATE SECTORS
Net salary, deflated to 1998 price level using consumer price index (lat/month)
1998 2002
Change
(latis)
Change
(%)
PRIVATE Median 90 lat 85 lat -5 -5.6
SECTOR Mean 109 lat 120 lat +11 +10.1
PUBLIC Median 80 lat 94 lat +14 +17.5
SECTOR Mean 96 lat 104 lat +8 +8.3

107
In Latvia, salaries in the private and the public sector are relatively close to
each other in the lowest income classes. Only in the most highly paid groups
does the difference increase and become clear. In the public sector, there has
been fairly uniform improvement in average incomes for all income groups. In
percentage terms, the rises can be seen as slightly more accentuated in the case
of the small salaries. In latis, the difference disappears or even takes an opposite
turn.
NET WAGES AND SALARIES BY DECILES 1998 AND 2002 IN LATVIA
PUBLIC AND PRIVATE SECTORS
250,0
200,0
150,0
100,0
50,0
At constant (1998) prices, inflation controlled by consumer price index
Latis/month
1998private
2002private
1998public
2002public
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change private(%) 7,5 4,0 -1,6 -1,3 -5,6 -4,0 1,7 12,0 17,5
Change public(%) 11,9 18,0 16,7 21,4 17,5 13,0 10,9 5,2 5,6
In the private sector, the net salary of those with middle income has decreased
a little. In the top two deciles, on the other hand, the salaries have grown a
great deal on average. The best-paid 20 per cent in the private sector have received
pay increases that are clearly more than average, and, at the same time,
the gap between the public and the private sector in the most highly paid income
groups has increased markedly.
OLD WORKPLACES (ESTABLISHED BEFORE REGAINING OF IN-
DEPENDENCE), REORGANISED AND NEW WORKPLACES
At old and reorganised workplaces, there has been a growth of 17.5 per cent in
salaries according to the median. Correspondingly, at new workplaces the av-

108
erage salaries have fallen by 15 per cent. It is evident that in Latvia, as in Estonia,
the new workplaces set up have a relatively low salary level. This is
particularly true of workplaces in the service sector. The very marked growth
in the net salaries at reorganised workplaces, measured by the mean value,
indicates that the salaries of most workers at workplaces of this kind have increased
considerably.
SALARY CHANGE AT OLD, REORGANISED AND NEW WORK-
PLACES
Net salary, deflated to 1998 price level using consumer price index (lat/month)
1998 2002
Change
(latis)
Change
(%)
OLD
Median 80 lat 94 lat +14 lat +17.5
WORKPLACE Mean 95 lat 104 lat +9 lat +9.5
REORGANISED Median 80 lat 94 lat +14 lat +17.5
WORKPLACE Mean 94 lat 122 lat +28 lat +29.8
NEW
Median 100 lat 85 lat -15 lat -15.0
WORKPLACE Mean 116 lat 122 lat +6 lat +5.2
NET WAGES AND SALARIES BY DECILES OLD, REORGANISED AND
NEW WORKPLACES IN LATVIA 1998 AND 2002
250,0
200,0
150,0
100,0
50,0
At constant (1998) prices, inflation controlled by consumer price index
Latis /month
1998 Old
2002 Old
1998 Reorganised
2002 Reorganised
1998 New
2002 New
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
CHANGES: Old(%) 17,5 14,0 10,0 14,3 17,5 15,5 14,3 13,7 22,7
Reorganised(%) 4,8 14,0 20,0 14,5 17,5 20,9 22,0 30,8 33,1
New(%) 7,5 14,0 -4,6 -6,3 -15,0 9,0 4,4 6,7 15,2

109
In Latvia, the salary level at old workplaces established before the regaining of
independence has risen in all the income groups. A sharper increase than average
has occurred only in the first and ninth deciles. In reorganised companies,
the rise in salaries has clearly been more prevalent among those with middle
and high income. In the top two salary groups, the salary growth has been very
great - over 30 per cent on average. At the new workplaces, the salaries of the
middle-income group have definitely fallen. However, as at the other workplaces,
also at the new workplaces the top salary group has increased its income
a great deal. The changes have been very great, and in 2002 the median
salary level at both the old and the reorganised workplaces was higher than at
the new ones. The income level has clearly improved more slowly at the new
workplaces than at the reorganised and old ones.
SUMMARY: Latvia
The net salaries in Latvia have increased very markedly during the period
between Autumn 1998 and January 2002. The rise in prices has eaten away
only a small part of the salary level improvement, and the wage earners' purchasing
power is now better. This has produced a definite narrowing of the
gap between Estonia and Latvia. In Latvia, the salary differences between men
and women are great, and during the last three years the gap between the genders
has grown slightly. However, in the case of those with a higher-than-average
income, the women's salaries especially have improved and, for them,
the salary differences in comparison with the men have decreased. The difference
in salaries between the public and private sectors in Latvia is very small.
The private-sector income groups receiving the highest salary have nevertheless
caused this difference to grow. Taken as a whole, income differences in
Latvia have increased somewhat. Underlying this - in contrast to Estonia - is a
strong positive salary development, particularly in the highest salary groups.

LITHUANIA
110
The rise in consumer prices in Lithuania has been the smallest in the Baltic
countries. On the other hand, also the average salary level has increased rather
slowly, especially in comparison with Latvia. Unlike Estonia, Lithuania has
experienced only a small rise in consumer prices and therefore also the small
nominal salary increases have somewhat improved the Lithuanian wage-earners'
purchasing power. Between 1998 and 2002, net salaries have risen 5 per
cent on average in Lithuania, if changes in consumer price during that same
time are taken into account.
NET SALARY PER MONTH IN LITHUANIA 1998 AND 2002
Deflated to 1998 price level using consumer price index (lit/month)
1998 2002 Change (litas) Change (%)
Median 555 lit 582 lit +27 +4.9%
Mean 662 lit 696 lit +34 +5.1 %
1400,0
1200,0
1000,0
NET WAGES AND SALARIES BY DECILES 1998 AND 2002
IN LITHUANIA
800,0
600,0
400,0
200,0
0,0
At constant (1998) prices, inflation controlled by consumer price index
Litas/month
1998
2002
10% 20% 30% 40% 50% 60% 70% 80% 90%
1998 326,0 400,0 430,0 500,0 555,0 647,0 756,0 858,0 1024,0
2002 339,0 388,0 466,0 524,0 582,0 679,0 776,0 883,0 1184,0
Change (%) 4,0 -3,0 8,4 4,8 4,9 4,9 2,6 2,9 15,6
Expressed in litas, the increases remain relatively small, and therefore the living
standard of the Lithuanian wage-earners can be estimated to have stayed

111
almost the same as before, on average. The changes have been very evenly
distributed between all the income groups - with the exception of the top decile,
which, in percentage terms, has had a rise many times as great as the others.
Expressed in litas, the gap in relation to the rest is still greater. It can indeed
be estimated that income differences in Lithuania have grown, but only
in the case of those receiving the highest income of all.
MEN AND WOMEN
On the whole, the income gaps between women and men have narrowed in
Lithuania, because the women's average salaries have grown markedly and the
men's, on the other hand, have stayed the same or even fallen slightly. The
salary differences between the genders have been, and still are, definitely
smaller in Lithuania than in Latvia and Estonia.
WOMEN'S NET SALARIES AS A PERCENTAGE OF MEN'S IN 1998
AND 2002, CALCULATED FROM THE MEDIAN AND MEAN SALA-
RIES 3
Ratio of women's salaries to men's (%) 1998 2002 Change
(%)
All wage earners
Median
wages/salaries
77 % 91 % +14
Private sector
Public sector
Mean wages/salaries 76 % 83 % +7
Median
wages/salaries
79 % 83 % +4
Mean wages/salaries 69 % 81 % +12
Median
wages/salaries
79 % 93 % +14
Mean wages/salaries 84 % 84 % 0
3 The percentages have been calculated from the net salaries, which have not been
adjusted to account for the change in consumer prices.

New workplaces
Reorganised
Old workplaces
Median
wages/salaries
112
71 % 84 % +13
Mean wages/salaries 62 % 85 % +23
Median
wages/salaries
83 % 86 % +3
Mean wages/salaries 86 % 87 % +1
Median
wages/salaries
84 % 88 % +4
Mean wages/salaries 85 % 81 % -4
In Lithuania, the net salary gaps between men and women have narrowed in
both the public and the private sector. In 2002, however, the private sector was
still lagging behind the public sector. The differences at the new and old
workplaces, too, are fairly small - smaller than in the other Baltic countries.
The women's median salaries in 1998 amounted to 77 per cent of the men's. In
2002, the proportion had grown to 91 per cent. In terms of the mean values,
the result followed the same trend. In 1998, the ratio of the women's mean salary
to the men's was 76 per cent, and the corresponding proportion in 2002
was 83 per cent. What is referred to here is the total net salary remaining in
hand, which may consist of wages from several workplaces.
On the whole, the income gaps between women and men in Lithuania have
diminished, because the average salaries of women have grown considerably
and the men's, on the other hand, have stayed the same or even fallen slightly.
The salary differences between men and women in Lithuania have definitely
been smaller than in Latvia and Estonia.
WOMEN'S AND MEN'S NET SALARIES 1998 AND 2002
Deflated to 1998 price level using consumer price index (lit/month)
1998 2002 Change Change
(litas) (%)
MEN Median 650 640 -10 -1.5
Mean 766 761 -5 -0.7
WOMEN Median 500 582 +82 +16.4
Mean 580 635 +55 +9.5

113
In terms of 1998 prices, the difference between men's and women's real salaries
was 150 litas, and three years later it had diminished to 126 litas expressed
by the medians. When the mean value is used as a measure, the gap has shrunk
from 168 litas to 126 litas. In these comparisons, the increase in living costs is
taken into account using the consumer price index.
NET WAGES AND SALARIES BY DECILES 1998 AND 2002
IN LITHUANIA MEN AND WOMEN
1400,0
1200,0
1000,0
800,0
600,0
400,0
200,0
0,0
At constant (1998) price, inflation controlled by consumer price index
Litas/month
1998women
2002women
1998men
2002men
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change women(%) 5,9 3,3 4,3 6,6 16,4 10,0 8,5 3,0 5,1
Change men(%) 2,6 2,8 1,0 4,7 -1,5 -3,2 2,7 -3,0 13,2
Women's salaries in Lithuania have risen for those with middle income more
than for the rest. In the men's case, there is no clear trend associated with income
rise or fall. Small changes in different directions are observable in various
income groups. There is one clear exception here: in the top decile, the
men's average income level has increased noticeably. It can in fact be said that
although the income gaps between the genders have definitely been diminishing
in Lithuania, those with the highest earnings form an exception. In their
case, the men's lead over the women has increased.
PUBLIC AND PRIVATE SECTOR
In Lithuania, the average salaries in the public sector have clearly increased
more than those in the private sector. Even if the change in consumer prices is

114
taken into account, Lithuania's public-sector salaries in terms of the median
have grown by 13 per cent. The average rise in the private sector is only less
than half of this.
SALARY CHANGE IN THE PUBLIC AND PRIVATE SECTORS
Net salary, deflated to 1998 price level using consumer price index (lit/month)
1998 2002
Change
(litas)
Change
(%)
PRIVATE Median 550 582 +32 +5.8
SECTOR Mean 695 689 -6 -0.9
PUBLIC Median 600 679 +79 +13.2
SECTOR Mean 639 707 +68 +10.6
NET WAGES AND SALARIES BY DECILES 1998 AND 2002
IN LITHUANIA PUBLIC AND PRIVATE SECTORS
1400,0
1200,0
1000,0
800,0
600,0
400,0
200,0
At constant (1998) price, inflation controlled by consumer price index
Litas/month
1998private
2002private
1998public
2002public
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change private(%) 5,3 -3,0 3,8 -3,0 5,8 2,9 -3,0 -3,0 5,1
Change public(%) 1,5 1,8 9,5 16,4 13,2 8,5 3,5 8,3 6,6
An examination of the deciles reveals that in the public sector, the salaries of
the middle-income workers have risen rather sharply. The changes in different
salary groups in the private sector have been relatively small, and they vary in

115
an irregular way. In Lithuania, unlike the other Baltic countries 4 , a better salary
is paid in the public sector than in the private sector, measured by both
median and mean value.
OLD, REORGANISED AND NEW WORKPLACES
Both at the old workplaces established before independence was regained, and
at the reorganised ones, salaries have improved considerably more than at the
new ones. The salary level at the new workplaces has even dropped a little on
average.
SALARY CHANGE AT OLD, REORGANISED AND NEW WORK-
PLACES
Net salary, deflated to 1998 price level using consumer price index (lit/month)
1998 2002 Change
(litas)
Change
(%)
OLD
Median 560 647 +87 +15.5
WORKPLACE Mean 625 682 +57 +9.1
REORGANISED Median 550 626 +76 +13.8
WORKPLACE Mean 623 726 +103 +16.5
NEW
Median 600 582 -18 -3.0
WORKPLACE Mean 776 715 -61 -7.9
The highest average salary level is at the old workplaces, if the median incomes are
used as the measure. The lowest salaries are paid at the new workplaces. This is not
the whole truth, however. When the best-paid deciles are examined, it can be seen
that in these, the salaries at the new workplaces are higher than average
4 In both Estonia and Latvia, the median salary is greater in the public than in the
private sector. On the other hand, measured in terms of the mean, the situation is the
opposite - that is, the mean salary in the private sector is greater than that in the public
sector. This is because the top-level salaries are higher in the private than in the public sector.

116
NET WAGES AND SALARIES BY DECILES OLD, REORGANISED
AND NEW WORKPLACES IN LITHUANIA 1998 AND 2002
1600,0
1400,0
1200,0
1000,0
800,0
600,0
400,0
200,0
At constant (1998) prices, inflation controlled by consumer price index
Litas /month
1998OLD
2002OLD
1998REORG
1998REORG
1998NEW
2002NEW
0,0
10 % 20% 30% 40% 50% 60% 70% 80% 90%
Change OLD(%) -0,6 1,8 12,8 16,4 11,6 5,6 3,5 2,7 6,7
Change REORG(%) 2,9 3,2 5,9 16,4 13,8 8,5 24,7 21,3 35,8
Change NEW(%) 11,0 -3,0 -2,9 -3,0 -3,0 -5,7 -3,0 -3,0 2,5
Between 1998 and 2002, the most highly paid workers at the reorganised
workplaces have risen to keep them company. For these, the increase in salary
level has been exceptionally rapid - at best, about 36 per cent in three years.
SUMMARY: Lithuania
In Lithuania, the salary level has changed less than in the other Baltic countries.
The development has, on the whole, been on the positive side. The gaps
between men's and women's salaries have diminished slightly. However, in the
highest-paid groups of all, the income gaps between the genders have definitely
grown due to the sharp rise in the men's salary level. Salaries in the
public sector have increased and, particularly at the reorganised workplaces,
those of the most highly paid workers have soared. At the new workplaces, on
the other hand, the average salaries have dropped a little.
Taken overall, the salary level in Lithuania has been characterised by the
smallness of the change in the lowest and middle-income groups. In the top
income groups, the salary level has risen considerably, especially at the reorganised
workplaces and among the men. The income gaps as such have not

117
grown; but in the case of the highest-paid, the development has not been uniform
and has clearly had the effect of increasing income differences.
ARE THE OLD WORKPLACES EXPANDING OR
ARE NEW ONES BEING BORN?
In all the Baltic countries, a smaller proportion of the wage earners than previously
work at old workplaces established before the regaining of independence;
and, correspondingly, the proportion working at new workplaces is
growing. This means that jobs have not come into being at the old companies
as they grow, but rather that employment has improved through the establishment
or expansion of new workplaces. It has been a question of jobs being
born in the service sector above all.
PROPORTION OF WORKERS WORKING AT OLD WORKPLACES
ESTABLISHED BEFORE REGAINING OF INDEPENDENCE, AT
REORGANISED AND AT NEW WORKPLACES, 1998 AND 2002
Estonia Latvia Lithuania
%-units
%-units
Change
%-units
Change
Change
1998 2002 1998 2002 1998 2002
Old workplace
43 36 -7 48 38 -10 50 43 -7
Reorganised
18 20 +2 12 15 +3 15 11 -4
New workplace
36 41 +5 36 42 +6 29 42 +13
DK 3 3 0 4 6 +2 6 4 -2
Total (%) 100 100 100 100 100 100
N
911 900 921 904 901 909
The proportion working at old workplaces is still quite high. It is greatest in
Lithuania (43 %), and the smallest proportion is in Estonia (36 %). In all three
countries, the proportion working at the old workplaces established before the
regained independence is decreasing considerably.

118
In Estonia and Latvia the reorganised workplaces have, for their part, increased
their relative share of the workers. In Lithuania, the development has
clearly been the opposite. In 1998 – 2002, the share of the new workplaces has
clearly grown the most in Lithuania, where earlier they were far fewer in
number than in the other two countries. In consequence, the proportion working
at new companies in all three countries is now almost the same, a little
over 40 per cent.
It was seen above that in all three countries, the average salary level at new
workplaces had definitely dropped. The new workplaces have evidently been
established more in the low-paid sectors. Still in 1998, the salary level at the
new workplaces was higher than at the reorganised and old workplaces. In
three years, the situation has taken an opposite turn.
CONNECTION BETWEEN UNIONISATION AND
SALARY LEVEL
Below, the connection between unionisation and salary level in Estonia, Latvia
and Lithuania is examined. Is the average salary level higher for those workers
who belong to a trade union? And does the making of collective agreements
bear any relation to the salary level?
Still in 1998, the median salary of the unionised workers (i.e. those belonging
to a trade union) was smaller than that of the non-unionised in Estonia, and
even in Latvia it was only equally as great as the non-unionised workers' salary.
The change during the three years has been fairly great. In 2002 in Latvia
and Lithuania, those who belonged to trade unions received a clearly better
salary than those who did not. Even in Estonia, the gap between the non-unionised
and the unionised has disappeared.
With the aid of standard deviation, an approximate picture of the salary variation
can be obtained. In Estonia and Lithuania, the salaries of workers who are
not union members definitely vary more than those of the union members. In
Latvia in 2002, the situation has changed so that the variation is greater for the
unionised. Salary differences in Latvia have grown as a general rule, as seen
above.

119
MEDIAN SALARY IN 1998 AND 2002 ACCORDING TO TRADE
UNION MEMBERSHIP (Salaries in the currency of the country concerned,
deflated to 1998 price level)
Trade union mem- ESTONIA LATVIA LITHUANIA
bership 1998 2002 1998 2002 1998 2002
-member
Median
St. deviation
-non-
Median
member St. deviation
2500
kr
1730
kr
2800
kr
2391
kr
2641
kr
2078
kr
2641
kr
2603
kr
80
lat
68
lat
80
lat
78
lat
108
lat
100
lat
85
lat
94
lat
600
lit
299
lit
550
lit
462
it
702
lit
273
lit
582
lit
452
lit
Membership of trade unions appears, therefore, to bear a relation to salary
size. The result is clearest in Latvia and Lithuania, and the trend has been
similar in Estonia also. Salary differences, too, are clearly smaller for the unionised
than for the non-unionised - with the exception, however, of Latvia.
From the standpoint of pay, an even more important factor than trade union
membership is the making of collective agreements. Such agreements bear a
direct relationship to salaries. Furthermore, they apply also to some of those
wage-earners who do not themselves belong to trade unions. Collective
agreements have been made at about one-quarter of the workplaces. The proportion
of workers who are trade union members is clearly lower than this (see
the chapter on Unionisation and Bargaining).
When workplaces where a collective agreement has been made are compared
with those where none has been made, a similar result to that above is obtained.
In 2002, the median salaries were definitely at a higher level at workplaces
that had made a collective agreement.

120
MEDIAN SALARY IN 1998 AND 2002 AT WORKPLACES WHERE A
COLLECTIVE AGREEMENT HAS BEEN MADE, AND WHERE
NONE HAS BEEN MADE (Salaries in the currency of the country concerned,
deflated to 1998 price level)
Existence of collective
agreement
Yes
No
ESTONIA LATVIA LITHUANIA
1998 2002 1998 2002 1998 2002
Median 2500kr 3081kr 89 lat 104 lat 643 lit 679 lit
St. deviation
1912kr 1916kr 80 lat 104 lat 408 lit 431 lit
Median 2800kr 2641kr 80 lat 91 lat 540 lit 582 lit
St. deviation
2405kr 2884kr 77 lat 88 lat 460 lit 493 lit
It is evident from the above that, measured using standard deviation, differences
in salary are smaller for organised than for non-organised workers, with
the exception of Latvia. The following table shows the salary differences according
to deciles. As we have seen, there are two factors that reflect the degree
of organisation. The first is whether the person belongs to a trade union
or not. The second factor - the existence of a collective agreement at the
workplace - has a still more direct influence on salary.
The table below shows, in percentage terms, the difference in median net salary
between wage earners at workplaces which have made a collective agreement,
and the others. The existence of a collective agreement at the workplace
bears a clear relation to a better salary level for those with middle and low incomes.
In the top decile, on the other hand, existence of a collective agreement
at the workplace has even reduced the highest salaries slightly. The link between
a collective agreement and decreased income differences is very clear.

121
DIFFERENCE IN MEDIAN SALARIES BETWEEN WORKERS AT
WORKPLACES THAT HAVE MADE A COLLECTIVE AGREEMENT
AND OTHER WAGE EARNERS IN 2002, BY DECILES (%)
DIFFERENCE BETWEEN WORKPLACES WITH A COLLECTIVE
AGREEMENT AND OTHER WORKPLACES (% units)
ESTONIA +10.7 +16.7 +9.2 +6.6 +14.3 +12.5 +3.7 0.0 -8.3
LATVIA +12.0 +16.4 +28.2 +22.3 +21.3 +21.3 +13.2 +1.9 -5.7
LITHUANIA +1.7 +7.0 +16.3 +17.8 +14.3 +12.6 +5.8 +5.1 -6.7
DECILES 10 20 30 40 50 60 70 80 90
Taken as a whole, the results indicate a relation between salary payment and
the method of agreement. However, it is difficult to say for sure whether trade
union membership influences salary size or whether better-paid workers than
before have joined trade unions in 2002. A scrutiny of the salary deciles shows
that at workplaces which have made a collective agreement, the lowest salaries
- and especially the salaries of those with middle incomes - are higher than the
average.
In Estonia, Latvia and also Lithuania, the majority of the salaries are agreed on
individually. The rate of unionisation is quite low, and both unionisation and
collective agreements are definitely more frequent in the public sector (see the
chapter on Unionisation and Bargaining.) From the standpoint of the wage
earners in total, it is thus clear that the significance of trade union membership
as described above is still relatively small. It can, however, be reckoned that in
the public sector, the connection between unionisation and salary size has importance
also for the wage earners as a whole. In the private sector, however,
the significance remains very small. The results also indicate that where pay is
concerned, the making of collective agreements is definitely a more important
factor than whether or not the workers at the workplace belong to a trade union.
These two aspects are of course connected with each other, but mere union
membership does not automatically change the procedures by which salaries
are agreed on.

122
WAGE EARNERS' OWN ESTIMATE OF
CHANGE IN THE PURCHASING POWER OF
SALARIES IN THE COMING YEAR
The above sections dealt with changes in average salaries during the period
between Autumn 1998 and January 2002. It was possible to assess the development
on the basis of data that gave a picture of the net salaries. As there is
no corresponding information about such changes in the near future, working
people were asked to estimate how the purchasing power of their salary would
develop during the following year. These responses reflect their subjective
expectations for the future.
It is important to note that we are now speaking of working people's expectations
concerning their own salaries. The average changes in pay level described
above may be due to variation in individual salaries on the one hand;
but on the other, a greater part of the average salary changes are because new
workplaces are being established, and their average level of pay differs from
that of earlier workplaces.
PROPORTION OF PEOPLE WHO BELIEVE THEY WILL BE ABLE TO
BUY MORE PRODUCTS OR SERVICES WITH THEIR SALARIES
AFTER A YEAR
ALL (%)
Men
Women
Private sector
Public Sector
Old workplaces
Reorganised
New workplaces
Manual worker
Lower white collar
Specialists
!
!
!
!
!
!
!
!
!
!
Managers !
0% 5% 10% 15% 20% 25% 30%
!
!
Lithuania Estonia Latvia

123
In all three countries an overwhelming majority, 80 – 90 % of the working
population, were sceptical as to development in the purchasing power of their
salary. Those who definitely believed the most (17 %) in an improvement in
purchasing power after one year were the Latvians. The Estonians and Lithuanians
were clearly more sceptical. Despite the low proportion (10 %) believing
in purchasing power improvement in Lithuania, the percentage has risen compared
with 1998; in Estonia, by contrast, it has dropped slightly 5 .
On the whole, the working people of Latvia - whether in the public or the private
sector, men or women - are clearly more optimistic than those of Estonia
and Lithuania. In Lithuania, belief in improvement of purchasing power is a
little weaker still than in Estonia. The differences between the countries reflect
very accurately the changes of the last few years. The real salary level in Latvia
has risen. In Estonia, the increase in consumer prices has eaten away the
raises in salary. In Lithuania, on the other hand, very few are receiving an increased
salary and the changes have been small.
From the profiles of those believing that the purchasing power of their salary
would improve in the coming year, it can be seen that - in all the Baltic countries
- the men are definitely more optimistic about this than the women. Many
Latvian men in particular believe in such an improvement. Private-sector
workers regard the future more positively than those in the public sector.
Improvement in purchasing power is believed in more at new workplaces than
at the reorganised and the old ones. Working people at reorganised workplaces
in Lithuania have been exceptionally sceptical. It was seen above that in the
past, salary development at new workplaces was poorer than at old ones, on
average. The fact that the purchasing power of salaries is nevertheless believed
in at new workplaces, indicates that the decrease in average salaries is a result
of the birth of new workplaces with lower pay than before, rather than reduction
of existing workers' salaries.
In Latvia, manual workers reckon nearly as often as the others that the purchasing
power of their salaries will grow. In Lithuania, on the other hand, the
corresponding proportion is very low. Among the various categories of work-
5 In 1998 in Estonia, 12.5 % of the working people believed that their purchasing power would improve
during the coming year; in 2002, 11.2 % thought that way.

124
ing people, the managers trust the most that their salaries will retain their value
- and in this case the belief has increased in Lithuania especially.
WORKING IN SECONDARY JOBS
Very many wage earners in the Baltic countries end up doing two jobs and
sometimes even more. In 2002, in all three nations, the proportion having a
secondary job was 15 per cent. The changes during the three years under study
have varied a little between the different countries.
25%
20%
15%
10%
5%
0%
WORKING IN SECONDARY JOBS 1998 AND 2002
MEN AND WOMEN
ESTONIA LATVIA LITHUANIA
17%
17%
16%
15%
15% 15% 15%
14%
14%
14%
13% 13%
8%
8%
8%
15% 15%
14%
1998 2002 1998 2002 1998 2002
Women Men All wage earners
In Estonia, secondary jobs have become slightly more common among
women. Women have two workplaces more often than men do. In Latvia,
men's secondary jobs have definitely become less usual; and the women's, for
their part, have increased. The changes in Lithuania have been great: for both
the men and the women, working in a secondary job is now almost twice as
common as it was three years earlier. The proportion of secondary jobs in
Lithuania has at the same time risen to the Latvian and Estonian level.

25%
20%
15%
10%
5%
0%
20%
125
WORKING IN SECONDARY JOBS 1998 AND 2002
12%
17%
PUBLIC AND PRIVATE SECTORS
ESTONIA LATVIA LITHUANIA
14%
18%
19%
13% 13%
1998 2002 1998 2002 1998 2002
Public sector Private sector
Among public-sector workers, secondary jobs have definitely decreased in
Estonia, though they are still at more or less the same level as in Latvia and
Lithuania. In the private sector in Estonia, working in secondary jobs is - despite
an increase in its percentage - still clearly less common than it is in the
public sector. In the Latvian public sector, the proportion doing two or more
jobs in 2002 was the highest in the Baltic countries - nearly one-fifth, and it
has been growing. The exceptionally great increase in Lithuania is concentrated
above all in the public sector, where working in secondary jobs has become
almost two and a half times as common as it was three years ago. In the
private sector, too, the rise has been considerable.
There have been quite a lot of changes with regard to secondary jobs during
the past three years. They are connected in many ways also to wider changes
in the quality of working life. Salaries, dealt with above, are an example of
this. The wages for secondary jobs are, in principle, included in the net salaries
discussed above. Therefore, the growth in the average salary remaining in
hand in Lithuania, for instance, may be largely due to the increase in secondary
jobs. On the whole, in 2002, the median net salary of those doing secondary
jobs was about 15-20 per cent higher than for those with no secondary
job. The changes in Latvia and Estonia during the three years have been rela-
7%
9%
18%
12%

126
tively small, and so their significance in the salary level comparisons is relatively
slight in contrast to Lithuania.
BLACK INCOME
The black economy has been a problem in all the Baltic countries. An attempt
is made below to analyse how usual black income is among wage earners. Due
to the limitations of the survey method used, the only aspect examined is how
commonly black income is received. The magnitude of the income was not
asked.
It is clear that not all those receiving black income will tell about it in surveys
like this. At a rough estimate, the real number of persons receiving black income
can be said to be two or three times greater than is apparent from the
survey. On the other hand, on the basis of the information gathered in the same
way at two points in time, it can be reliably estimated whether the receiving of
black income has decreased or increased during the last three years.
25%
20%
15%
10%
5%
0%
19%
BLACK INCOME 1998 AND 2002
ESTONIA LATVIA LITHUANIA
10%
16%
1998 2002 1998 2002 1998 2002
22%
7%
Every month
Sometimes
12%

127
In Estonia, receiving of black income has decreased markedly. The decrease
applies to both regular and occasional black income. In Lithuania, and especially
in Latvia, the development has been the opposite. The proportion getting
regular and occasional black income has grown considerably in both countries.
In 2002, receiving of black income was by far the most common in Latvia,
where more than one in five wage earners had done so. In Lithuania, the proportion
that had received black income was only 12 per cent - though it has
overtaken Estonia in this respect. In 1998, the greatest percentage of workers
receiving black income in the Baltic countries was still in Estonia. In three
years, however, the situation has changed so that now its proportion is the
smallest among the three countries.
The decrease in black income in Estonia has been definitely more marked
among women than among men. The proportion of women who have received
such income has dropped in three years by more than half, and in 2002 it was
a mere 6 per cent. The direction of change among men in Estonia has been
similar.
40%
30%
20%
10%
0%
21%
1998
Men
BLACK INCOME 1998 AND 2002 BY GENDER
ESTONIA LATVIA LITHUANIA
14%
18%
2002 1998
Women
6%
21%
2002 1998
Men
29%
13%
2002 1998
Women
17%
9%
2002 1998
Men
Every month
Sometimes
12%
6%
2002 1998
Women
In Latvia, almost the opposite trend to that of Estonia can be seen. The percentage
of men receiving black income has grown considerably and is now
11%
2002

128
clearly higher than in the other two countries under comparison. Also for Latvian
women, the proportion of black income has definitely grown. In Lithuania,
especially the percentage of those getting occasional black income has
risen, and for women in particular. Lithuanian men receive such income seldom
compared with Estonian and Latvian men.
Black income is primarily a problem of the private sector in all three countries.
In the public sector, such wages are paid very rarely in comparison with the
private sector. The percentage is significant only in Latvia. Not a single one of
the Estonian public-sector workers said that they received black income
monthly, and only two per cent stated that they received it even sometimes.
40%
30%
20%
10%
26%
BLACK INCOME 1998 AND 2002 BY SECTOR
ESTONIA LATVIA LITHUANIA
14%
8%
2%
26%
32%
0%
1998 2002 1998 2002 1998 2002 1998 2002 1998 2002 1998 2002
Private sector Public sector Private sector Public sector Private sector Public sector
5%
9%
11%
Every month
Sometimes
In the private sector in Latvia, about one-third said that they had received
black income, and even in Lithuania the proportion is nearly one-fifth. The
increase in Lithuania has been marked. The trend in Estonia, though, differs in
direction from that of the other two countries. There, also in the private sector,
black income has diminished very noticeably during the three years. In particular
the percentage of regular black income, paid monthly, has fallen.
18%
3%
4%

129
DIFFICULTIES IN SALARY PAYMENTS
In all the Baltic countries, salary payment difficulties have been a very great
problem. Many wage earners have experienced delays of various lengths in
salary payment; and for some, it has been possible that in the rapidly changing
circumstances they are even left entirely without a salary. In Estonia, salary
payment delays have decreased considerably during the three-year period. By
contrast, they have become more frequent in Latvia and especially in Lithuania.
DELAYS IN RECEIVING SALARY DURING THE LAST 12 MONTHS
IN 1998 AND 2002
40%
30%
20%
10%
0%
ESTONIA LATVIA LITHUANIA
Over 1 month
Up to 1 month
Up to 2 weeks
Up to 1 week
Do not know
ESTONIA
1998 2002
LATVIA
1998 2002
LITHUANIA
1998 2002
In Estonia, long salary delays of more than two weeks, in particular, have almost
ceased. Delays of one week at most are still approximately as frequent as
three years earlier. Taken as a whole, the situation has improved substantially
in the past three years.
In Latvia, one in five workers has suffered salary delays and the trend has
been on the increase. Long payment delays, however, have not increased during
the three years. The growth in frequency of delays has applied only to ones
of less than two weeks' duration, and the longest delays of all have even decreased
a little.

130
The most problematic situation is in Lithuania, where salary payment delays
have increased noticeably. Already in 1998, there were more delays in Lithuania
than in the other two countries. Now, the gap has grown still further. The
incidence of the longest salary delays of all has not grown any more, even in
Lithuania. However, delays of one month or shorter have clearly increased in
frequency.
DELAYS IN RECEIVING SALARY DURING THE LAST 12 MONTHS
IN 1998 AND 2002 BY SECTOR
50%
40%
30%
20%
10%
0%
1998
Private
ESTONIA LATVIA LITHUANIA
Over 1 month
Up to 1 month
Up to 2 weeks
Up to 1 week
Do not know
2002 1998
Public
2002 1998
Private
2002 1998
Public
2002 1998
Private
2002 1998
Public
In both Estonia and Latvia, salary payment delays have occurred above all in
the private sector. In Lithuania on the other hand, there have been the most
delays in the public sector, especially ones under a month in length. In the
public sector particularly, the differences between the countries have grown
large. Only a few per cent of the wage earners are concerned in Estonia, while
the proportion experiencing delays in Lithuania has reached over 40 per cent.
In Latvia and Lithuania in 2002, long salary delays lasting over a month were
more common in the private sector. This is also true of Estonia, but there they
have happened quite seldom. Long delays in salary payment have still been
numerous: one in ten Lithuanian wage earners, and more than one in twenty of
the Latvians, has had to experience them during the last year.
2002

131
WORKING TIME AND CONTRACTS
In this chapter, we will look at weekly working hours and changes in these.
Some general observations can be made regarding the Baltic countries: in all
of them, the amount of part-time work is fairly small. Men's working weeks
are longer than women's, and a clearly longer day is worked in the private
sector than in the public sector. Particularly in Latvia and Lithuania, there is a
great difference between the numbers of hours worked in the private and the
public sector. A comparison between different lines of business shows that in
all the Baltic countries, the longest working weeks are in farming. In trade,
too, the weeks worked are typically very long.
The chapter also examines overtime work and practices concerning overtime
pay. In all the countries, working overtime is fairly usual, especially in the
private sector. A considerable proportion of the wage earners do overtime
without receiving any overtime pay. This is the most common in Lithuania,
where as many as 24 % of the workers said that unpaid overtime is part of the
typical working week. It happens the most rarely in Estonia (10 %). In Latvia,
one in five workers (19 %) stated that they worked overtime without being
paid for it. Even though women's working weeks are shorter than men's on
average, women are in a weaker position than men as regards overtime remuneration
practices. Women more rarely receive pay for overtime than do men.
Finally, the chapter deals with wage earners' employment contracts. In all the
Baltic countries, a noticeable proportion of the employees work under fixedterm
employment contracts. The proportion of fixed-term contracts increased
in all the countries between 1999 and 2001. The greatest change has been in
Lithuania. The wage earners were also asked whether, at the suggestion of the
employer, they had signed any extra agreement besides the employment contract
proper. In Latvia and Lithuania, about one in ten employees had put their
name to some additional agreement; in Estonia, six per cent had done so. The
reliability of the figures, however, must be subjected to a large question mark,
because a considerable number of the respondents declined to answer this
question. In all the countries, the real proportion who had signed an extra
agreement is probably much greater than indicated in this study.

WEEKLY WORKING HOURS
Estonia
132
There have been no decisive changes in the numbers of hours worked per
week in Estonia. A little surprisingly perhaps, some degree of 'normalisation'
in weekly working hours has taken place - that is, more wage earners in Estonia
than before do a 40-hour working week. A 40-hour working week was in
fact the norm in Soviet times, and it obviously still influences people's conceptions
of desirable or normal working hours. Almost half of the wage earners
interviewed (47 %) stated that they had indeed worked that very number of
hours, 40, during the week preceding the interview. Extremely long weeks
(over 50 hours) have been worked a little more seldom than earlier. Now,
around one in ten respondents worked over 50 hours per week. No significant
change has occurred in the generality of part-time jobs. About one in ten wage
earners can be counted as a part-time worker. This proportion is practically the
same as in 1998.
60%
50%
40%
30%
20%
10%
0%
12%
WEEKLY WORKING HOURS IN ESTONIA
14%
11% 11%
39%
1-29h 30-39h 40h 41-50h 51h+
47%
22%
22%
1998 2002
13%
9%

133
Weekly working hours in Estonia by gender 2002
Men Women All
Less than 30h 9.2 % 13.2 % 11.3 %
30-40h 53.1 % 62.0 % 57.8 %
41h or more 37.7 % 24.7 % 30.9 %
Total 100 %
(N=422)
100 %
(N=469)
100 %
(N=891)
Also in Estonia, practices regarding working hours are linked to gender to
some extent. Part-time employment is more common for women than for men,
and the men do long working weeks more commonly than do women. However,
a majority of both men and women work 30-40 hours a week. Among
the men taking part in the survey, the average number of hours worked per
week was 41.5; and among the women, three hours less (38.5h). Long working
weeks are becoming more rare for both genders. In the previous study, nearly
half the men (45 %) and 29 % of the women worked over 40 hours per week.
Now, the corresponding proportions were 38 % of the men and 25 % of the
women. As the above figure shows, a decrease has occurred particularly in the
percentage working the longest working week of all. The most typical Estonian
who works a long week is a man under 50 years of age in a management
position.
There are differences in working week length between the public and the private
sector. The average length for those working in the public sector was 38.5
hours; and in the private sector, 40.7 hours. The differences between sectors
are about the same magnitude for both men and women. The men in the private
sector do a working week 2.2 hours longer on average than the men in the
public sector. For the women, the corresponding difference between these
sectors was 1.6 hours.
Latvia
The longest weekly working hours in the Baltic countries are still done in Latvia.
As many as 43 % of the working people in Latvia had worked more than
40 hours in the week preceding the survey, and almost one-fifth worked over
51 hours per week. The traditional ’40-hour norm’ does not represent the

134
mainstream in Latvia, since the proportion of employees working more than
40 hours a week is greater than that working only 40 hours a week. The situation
was the same in 1998, too. The Latvian situation with respect to working
hours has in fact been surprisingly stable: in a period of three years (1999-
2001), there has been practically no change in the length of the working
weeks.
50%
40%
30%
20%
10%
0%
WEEKLY WORKING HOURS IN LATVIA
10% 10%
8%
10%
39%
1-29h 30-39h 40h 41-50h 51h+
39%
Weekly working hours in Latvia by gender 2002
Men Women All
Less than 30h 6.4 % 9.6 % 8.1 %
30-40h 44.4 % 54.1 % 49.6 %
41h or more 49.1 % 36.3 % 42.3 %
Total 100 %
(N=405)
22%
100 %
(N=468)
25%
1998 2002
19%
100 %
(N=873)
The average hours worked per week by men in Latvia was 45.9, and by
women 42.5 hours; in other words, the averages are clearly greater than in
Estonia and Lithuania. In Latvia, long working weeks are very usual - especially
for men, since half of these work more than 40 hours a week. Latvia can
18%

135
therefore be considered a country of long working weeks, and this interpretation
is affirmed by the rarity of part-time work.
In Latvia, the situation regarding length of working weeks is greatly polarised
between the public and the private sector. In the public sector, the average
weekly working hours are very close to 40 for both men and women (the
men's average was 41.8 and the women's 39.8). Those working in the private
sector, on the other hand, often work a long day. The average weekly working
hours for men in the private sector were 47.8 and for women 44.9. In other
words, the private sector employees work about 5-6 more hours per week, on
average, than those in the public sector. The difference is significant but not
unique, because the situation is similar in Lithuania, too.
Lithuania
In Lithuania, a clear lengthening in working weeks can be seen. The proportion
working more than 40 hours per week has grown significantly. In 1998,
just over a quarter (28 %) of the wage earners did a working week of over 40
hours; in 2002, the corresponding proportion was 39 %.
60%
50%
40%
30%
20%
10%
0%
12%
WEEKLY WORKING HOURS IN LITHUANIA
9%
11%
11%
49%
1-29h 30-39h 40h 41-50h 51h+
41%
18%
26%
1998 2002
10%
13%

136
Weekly working hours in Lithuania by gender 2002
Men Women All
Less than 30h 6.3 % 10.6 % 8.5 %
30-40h 50.6 % 54.1 % 52.3 %
41h or more 43.1 % 35.4 % 39.2 %
Total
100 %
(N=441)
100 %
(N=444)
100 %
(N=885)
The increasingly common occurrence of long working weeks has lengthened
the average weekly working hours also. The trend has been reinforced by corresponding
changes in the number of short working weeks - that is, fewer than
before do part-time work. For men, the average number of hours worked per
week was 43.9; and for women, 41.7 hours. In 1998, the corresponding figures
were 42.4 and 39.3 respectively, so both men's and women's average working
hours have lengthened.
In Lithuania, as in Latvia, those working in the private and in the public sector
have very different working weeks. It is noticeable that the lengthening in
Lithuania's working weeks is due to longer weekly hours for private sector
employees. Wage earners in the public sector do a working week that is practically
the same length as three years earlier. The average weekly hours
worked by the men in the public sector were still very close to the traditional
40-hour week - that is, 40.8 hours. The men in the private sector worked 45.4
hours a week on average. The difference between the sectors was thus 4.6
hours. During the three-year period, the working week of men in the private
sector has lengthened by about 1-1.5 hours.
The real news, however, comes to light in the corresponding figures for the
women. Women in the private sector did an average working week of as many
as 46.8 hours, which is greater than the corresponding figure for men in
Lithuania and greater than for any other women's group under comparison in
the Baltic countries! The difference compared with the public-sector women is
in fact astonishingly great. The women working in the public sector worked an
average of 37.3 hours per week - as many as 9.5 hours less than those in the
private sector! For the women in the public sector, there have been practically
no changes in working week length, but in the private sector the changes have

137
been very significant in the women's case. In 1998, women working in the private
sector in Lithuania were working on average about five hours less per
week than in 2002! This change that has taken place is difficult to explain. It is
not due to working in two jobs, for example - because, of the private-sector
women working long weekly hours, only one in ten works in another job besides
her main one.
The longest working weeks of all among the women in Lithuania are in the
hotel and restaurant business (an average of 51.6 hours) and in trade (average
50.4 hours). These fields headed the list of working week lengths also in the
previous survey in 1998. This lengthening in women's working weeks cannot,
nevertheless, be explained conclusively by the long - longer than before -
working weeks in these fields. The number of hours worked per week by
women in Lithuania has lengthened in all branches of business in the private
sector.
WORKING OVERTIME
The clearly longer working weeks in Latvia and Lithuania compared with Estonia
could be seen also when about overtime work was enquired about. Of the
working people in Latvia and Lithuania, as many as 39 % said that working
overtime was part of the normal working week; in Estonia, just over onequarter
(28 %) felt similarly. It can be concluded that although - especially in
the private sector - long working weeks are very common in Latvia and
Lithuania, employees do not consider the large numbers of hours to be ’normal’,
i.e. to be in conformity to the contracts and thus acceptable. Long
working days are seen as overtime. If this is the case, then the working hours
stipulated in the employment contracts are not adhered to very well.
The fact that the men work longer weekly hours than women can be seen
clearly from the amount of overtime. In Latvia and Lithuania, 43 % of all the
male wage earners stated that overtime was part of the typical working week.
The similarity between the countries as regards the generality of overtime
work is confirmed by the women's data. Of the women in Latvia and Lithuania,
over one-third did overtime during a normal working week. The proportions
of both men and women working overtime are clearly greater than in
Estonia.

138
WORKING OVERTIME DURING A NORMAL WORKING WEEK
50%
40%
30%
20%
10%
0%
43% 43%
36%
39% 39%
Question 63: Do you work overtime during a normal working week (i.e. working time which lasts over legitimately
and/or by the employment contract fixed working time)?
35%
Men Women All
34%
23%
LATVIA LITHUANIA ESTONIA
In all the Baltic countries, overtime is clearly more common in the private than
the public sector. This was reflected already above in the discussion on lengths
of the working week. Also in the number of hours' overtime worked, there are
differences of the same magnitude between the private and public sector - that
is, the generality and quantity of overtime are greater in the private than the
public sector.
How many hours of overtime per week on average?
(only those who work overtime, means)
Men Women All
Latvia 11.7 9.7 10.7
Lithuania 10.6 7.7 9.2
Estonia 10.8 7.8 9.5
When looking only at those employees who work overtime, a rather uniform
picture emerges. Generally speaking, those working overtime do it to a considerable
extent. According to their own statement, men who do overtime exceed
their agreed working hours by more than ten hours per week on average
in all the Baltic countries (in Latvia, by almost 12 hours). In Estonia and
28%

139
Lithuania, women who do overtime lengthen their agreed working hours by
the equivalent of approximately one working day per week. In Latvia, the average
overtime worked by women is nearly 10 hours a week.
Overtime pay
LATVIA LITHUANIA
Unpaid overtime only 19 % 24 %
Unpaid overtime plus overtime
compensated in both money and time off
0 % 0 %
Unpaid overtime plus overtime
compensated in money
0 % 0 %
Unpaid overtime plus overtime
compensated in time off
0 % 0 %
Overtime compensated in money
and time off
3 % 0 %
Overtime compensated only in time off 5 % 6 %
Overtime compensated only in money 12 % 9 %
No overtime at all 61 % 61 %
In both Latvia and Lithuania, it is fairly common for overtime to be done entirely
without pay. One in five Latvian and as many as one in four Lithuanian
working people work unpaid overtime in their typical working week - and, as
seen above, the number of overtime hours is considerable. Of those doing
overtime in Latvia, half receive compensation for the overtime in money
or/and time off, and half do not receive any compensation for it. In Lithuania,
the situation is still less favourable as regards overtime pay, since a clear majority
of those working overtime receive no compensation for it. In Lithuania
unpaid overtime work is not related to a workplace size. In Latvia unpaid
overtime work is particularly a problem of small firms 1 . In both countries unpaid
overtime work is done more in private than in public sector 2 .
1
At workplaces with 10 or less employees, 28 % of staff work unpaid overtime during a normal
working week.
2
In Lithuania 25 % of private sector working people work unpaid overtime. In public sector the corresponding
share is 22 %. In Latvia 21 % of private sector and 17 % of public sector working people
work unpaid overtime during a normal working week.

140
Unpaid overtime is more typical for women than for men: in Latvia, 58 % of
the women doing overtime and 41 % of the men received no compensation for
it. In Lithuania, the situation of the women is still less advantageous, because
as many as 73 % of the women who worked overtime did not receive any
overtime compensation. Also a majority (54 %) of the men doing overtime did
it without compensation. It is surprising that different overtime pay combinations,
or overtime that was partly compensated and partly uncompensated,
were actually non-existent in both countries. In other words, the practices concerning
overtime compensation are very polarised: overtime is either compensated
in a certain way, or else not compensated at all. In practice, there are no
’mixed methods’ or partly compensated and partly uncompensated overtime.
The questionnaire form for Estonia 3 differed in this question from that for the
other Baltic countries, so that the Estonians cannot quite be compared directly
with the Latvians and Lithuanians in this respect. Also in Estonia, however, a
considerable number (10 %) of the working people said that unpaid overtime
was part of the normal working week. The percentage is exactly the same as in
1998. As in Latvia, it is most typical in Estonia to do unpaid overtime in small
private sector workplaces. 15 % of people working in small private sector
firms (less than 10 employees) work unpaid overtime during a normal working
week.
Of those working overtime, more than a third (35 %) did it without compensation.
This percentage has risen a little because, while the proportion of wage
earners doing overtime has fallen slightly, the working of unpaid overtime (as
well as that compensated in the form of time off) is just as common as before.
Overtime work compensated only in money has decreased in Estonia.
3 On the form for Estonia, it was only possible to select one alternative from the following: overtime
compensated in money, compensated in time off, or not compensated at all. There was therefore no
opportunity to examine different combinations of these three alternatives.

1998
2002
141
OVERTIME WORK AND COMPENSATION IN ESTONIA
0% 20% 40% 60% 80% 100%
No compensation Free days Money compensation No overtime
The difference between women and men regarding unpaid overtime is of the
same magnitude in Estonia as elsewhere in the Baltic countries: women's
overtime is left unpaid more often than men's. Of those women who do overtime,
40 % receive no pay for it; the corresponding proportion of men is 32 %.
Both percentages, however, are clearly smaller than in Latvia and Lithuania.
Unpaid overtime is related to the occupation. On higher levels of the workplace
hierarchy people work overtime without pay more often than on lower
levels. In each Baltic country a considerable proportion of managers and specialists
work overtime without any compensation. However, especially in Latvia
and Lithuania also ordinary blue-collar workers are many times working
overtime without any pay. Furthermore, the actual unpaid overtime hours are
long. In Latvia nearly every fifth service sector worker (18 %) work overtime
without any compensation and on the average they work 17 hours per week
like that. Obviously this is alarming in many sense. In Lithuania nearly every
fourth of them (24 %) work unpaid overtime during a normal working week
but the number of these hours is clearly lower than in Latvia (8 hours per week
on the average). In each Baltic country it is essential to do more research concerning
overtime work. Why are people doing that in the first place that much

142
and why do they accept the prevailing situation? This research cannot answer
either of the questions.

UNPAID OVERTIME WORK BY OCCUPATION
Unpaid overtime
work during a
normal working
week
143
LATVIA LITHUANIA ESTONIA
Number of unpaid
overtime
hours per week
(mean)
Unpaid overtime
work during a
normal working
week
Number of unpaid
overtime
hours per week
(mean)
Unpaid overtime
work during a
normal working
week
Number of unpaid
overtime
hours per week
(mean)
Managers 26 % 12 34 % 12 22 % 13
Specialists 20 % 10 27 % 8 13 % 7
Clerks, administrative
servants
16 % 8 24 % 6 4 % 4
Service workmen 18 % 17 24 % 8 6 % 11
Manual Workers 18 % 11 19 % 10 8 % 12
Total 19 % 12 24 % 9 10 % 10

EMPLOYMENT CONTRACTS
144
The trends in employment relationships in the Baltic countries are going in
different directions. In Estonia, the situation as to working hours and employment
relationships is following a steady trend. The proportion of permanent
jobs out of the total has increased during the three years from 64 to 69 per
cent. Permanent working relationships under a written contract are more typical
in the public than the private sector, but also in the private sector their proportion
(66 %) is noticeably greater than in the other two Baltic countries. No
significant change has occurred in the frequency of written fixed-term employment
contracts. Their percentage (23 %) is very high by international
comparison, but nevertheless considerably lower than in Latvia and Lithuania.
A positive development is that the number of illegitimate (orally agreed)
working relationships has clearly decreased. During three years (1999-2001),
their proportion has dropped by half and now forms five per cent of the total
employment relationships of wage earners.
ESTONIA LATVIA LITHUANIA
1998 2002 1998 2002 1998 2002
A written permanent
employment
contract
A written fixed-
64 % 69 % 60 % 56 % 63 % 63 %
term employment
contract
A written contract
22 % 23 % 28 % 30 % 23 % 29 %
for doing specific
work
3 % 3 % 3 % 4 % 1 % 2 %
No written labour
agreement
11 % 5 % 8 % 10 % 13 % 5 %
No answer 0 % 0 % 1 % 0 % 0 % 1 %
Total
Wage earners only
100 % 100 % 100 % 100 % 100 % 100 %
In Latvia, there has been an increasing trend of instability in employment relationships.
Only just over half (56 %) of the wage earners in Latvia are in
permanent jobs under a written employment contract. Already before, the pro-

145
portion of permanent working relationships in Latvia was lower than in Estonia
and Lithuania, and the development in recent years has increased this gulf
still further. More wage earners than before are either in a fixed-term employment
relationship, or else under an orally agreed employment contract -
this procedure is against the law in Latvia also. On the basis of the research
data, one out of ten employees in Latvia does not have a written employment
contract. This proportion is double that of Estonia and Lithuania. In the aspect
of working hours and employment relationships, working life in Latvia appears
to be somewhat problematic - especially in the private sector, where
only half (51 %) of the wage earners have a permanent job with a written contract.
Long working hours, however, do not have any connection with the type
of employment contract, since a long day is worked in the private sector irrespective
of the form of the contract.
Lithuania is positioned between Estonia and Latvia as regards trends in employment
relationships. The percentage of permanent working relationships
under written contract has not changed: it is still 63 %. The proportion of
fixed-term jobs under written contract has grown to reach that of Latvia, but at
the same time the percentage of illegitimate, orally agreed employment relationships
has similarly decreased and, in fact, still more clearly than in Estonia.
In Lithuania, as in Latvia, permanent jobs under written contract are much
less common in the private than in the public sector. Of the private-sector employees
in Lithuania, only just over half (53 %) have a permanent job under
written contract. The corresponding percentage among the public sector wage
earners is 74 %.
When fixed-term working relationships are examined, it becomes apparent
that Finland differs considerably from the Baltic countries. Finland is a good
point of comparison, because it has the third largest number of fixed-term jobs
in the EU, after Spain and Portugal. It must be noted, however, that the percentage
of fixed-term working relationships in Finland (17 %) is clearly
smaller than in any of the Baltic countries. In Finland, the proportion of fixedterm
jobs grew for a long time, but in the last few years it has no longer increased,
but remained steady. In all the Baltic countries, the trend has been the
opposite, since the percentage of fixed-term employment relationships there
has increased between 1999 and 2001. In Finland, fixed-term jobs are more
usual in the public than the private sector. In Estonia and Latvia, the sector is

146
of no significance: in practice, fixed-term working relationships are just as
frequent in both sectors. In Lithuania 4 , however, fixed-term jobs are nearly
twice as common in the private as in the public sector.
In Finland, fixed-term employment relationships bear a strong link to gender
and age. They are clearly more common among women than among men, and
are more usual for the younger age groups than the older ones. In Estonia and
Latvia, gender has no practical significance in the question of fixed-term jobs:
they are just as common for men as for women. In Lithuania, on the other
hand, they are somewhat more usual for men than for women. The proportion
of both men's and women's fixed-term jobs has clearly increased in Lithuania
in recent years, but the growth has been a little more marked in the case of the
men.
WRITTEN FIXED-TERM EMPLOYMENT CONTRACTS BY GENDER
50%
40%
30%
20%
10%
0%
23%
21%
ESTONIA
1998
24%
22%
ESTONIA
2002
Wage earners only
29%
27%
LATVIA
1998
29%
30%
LATVIA
2002
24%
21%
LITHUANIA
1998
Men Women
31%
26%
LITHUANIA
2002
In Estonia, fixed-term employment relationships are linked to age: the younger
the age group examined, the greater the proportion of fixed-term jobs, and vice
versa. Of the employees under 30 years of age, 31 % were fixed-term ones,
4 Of the private-sector employees in Lithuania, 37 % are in a fixed-term job with a contract agreed in
writing. The corresponding percentage for the public sector is 20 %.

147
whereas for the over-50s the proportion was ’only’ 18 %. In Lithuania, too, the
younger wage earners were more often working a fixed term than the rest. In
Lithuania, 38 % of wage earners under 30 were in fixed-term jobs. An interesting
phenomenon was that the percentages of fixed-term relationships for the
older age groups were practically the same - in other words, ageing did not
affect the proportion after the age of 30. In all the other age groups apart from
the under-30s, one in four wage earners in Lithuania was working in a fixedterm
job.
Latvia differs from Estonia and Lithuania in that age in Latvia has no significance
in connection with generality of fixed-term employment relationships.
Almost one-third of the wage earners of all ages are in fixed-term jobs. A
comparison of different areas of business in Latvia reveals that the highest
proportions of fixed-term jobs are in the hotel and restaurant business (43 %)
and in trade (40 %). The lowest percentage is in the construction sector (13 %)
- but in the particular field of business in question, illegitimate, oral work
contracts are in the most common use of all. Of the construction workers in
Latvia included in the study data, more than a quarter (28 %) had no written
employment contract.
EXTRA AGREEMENTS
Since it is laid down by law that employment contracts have to be made in
writing, it is possible that the employee has been made to sign an extra agreement
by the employer, the idea of which is to make the employee surrender
some of his/her rights or benefits for the employer's benefit; in other words, to
water down the security offered by the agreement. An example of such an extra
document could be, for example, a notice of dismissal signed by the employee
and left with the employer with the date field open. This document
could then be used by the employer. We surveyed the existence of such activity
through a separate question.

148
PROPORTION OF EMPLOYEES WHO HAVE SIGNED SOME EXTRA AGREEMENT
30%
25%
20%
15%
10%
5%
0%
10%
6%
6%
1998 2002
9% 9%
ESTONIA LATVIA LITHUANIA
Question 3: Besides the employment contract, have you, through the initiative of the employer, signed any other extra
agreement (such as a shorter paid leave, large volume of work to be covered, an agreement on your enrolment and
dismissal with no specification of the date etc.)?
The making of extra agreements has increased in Latvia and Lithuania and
decreased in Estonia. In Latvia and Lithuania, about one in ten wage earners
said that they had signed some extra agreement. An interesting phenomenon
was that one-tenth of the employees in Latvia and Estonia and as many as 15
% of the Lithuanian wage earners declined to answer this question. It can
therefore be assumed that the matter is too sensitive to be dealt with in a survey.
We are presumably moving here in the same sensitive area as when asking
about unreported income, for instance. Declining to answer probably signifies
some degree of activity which the respondent does not wish to discuss. If
those who have declined to answer can be assumed to have made an extra
agreement of some kind, e.g. about unreported wages to be paid, then the proportion
who have made some sort of extra agreement will be significantly
greater than indicated in the diagram above. Lending support to this interpretation
is the fact that a greater part of those in Estonia and Latvia who had
made an extra agreement and answered the question were satisfied with the
content of the agreement. Only in Lithuania was there more dissatisfaction
with the content of the extra agreement than there was satisfaction. There, well
on the way to half of those who had made an extra agreement were unable to
estimate their satisfaction with the agreement content. The answers of men and
women were quite similar in each country.
4%

149
SATISFACTION WITH CONTENT OF EXTRA AGREEMENT
(Only wage earners who have signed an extra agreement)
ESTONIA LATVIA LITHUANIA
Completely satisfied 37 % 21 % 12 %
Fairly satisfied 45 % 50 % 12 %
Neither satisfied nor dissatisfied
7 % 15 % 17 %
Rather dissatisfied 7 % 6 % 14 %
Completely dissatisfied 2 % 5 % 12 %
Do not know 2 % 3 % 33 %
Total 100 % 100 % 100 %

150
STRESS FACTORS AND CONFLICTS
In this chapter, we will find out how working people have assessed changes in
stress at work in recent years. To begin with, we will take a look at the change
in intensity of work in the respondents' own jobs. We will then investigate,
too, whether the working tempo has changed more generally at the workplaces.
After that, we will examine the change in mental and physical stressfulness
in the respondents' own jobs. The chapter also makes a short excursion
into occupational safety matters - that is, we will study changes in work safety
at the respondents' workplaces. To finish with, conflicts that respondents have
experienced at their workplaces are examined.
WORK INTENSITY
In the previous working life barometer for the Baltic countries, the work intensity
in Lithuania was strikingly different compared with Latvia and Estonia. In
1998, the Lithuanians could be divided into three approximately equal-sized
groups: those whose work was too intensive; those whose work intensity was
suitable; and those for whom it was too low. In Estonia and Latvia the intensity
of work, taken as a whole, was much greater than in Lithuania.
A little over three years later, the matter was enquired about in the same way.
The differences between the countries had now become much smaller. At the
beginning of 2002, more than one-fifth (22-24 %) of the working people in all
the Baltic nations said that there was still definitely room for the work intensity
to be stepped up - in other words the intensity of these respondents' work
was, in their own opinion, too low.
In Lithuania, the intensity of working life has clearly increased during the last
few years. As has been mentioned, in the previous survey about one-third (34
%) of the workers had felt that the work intensity was too low; but in the present
study, only fewer than one-quarter (23 %) thought that way. At the same
time, the proportion who felt that the work intensity was too high had risen
from 34 to 43 per cent. The change has indeed been the greatest in Lithuania.

151
The situation in Latvia has, on the whole, remained more or less as before; and
in Estonia there has been a slight decrease in work intensity.
60%
40%
20%
0%
-20%
-40%
-60%
45% 43%
WORK INTENSITY
37%
33%
-23% -22% -24% -24%
34%
-34%
43%
-23%
LATVIA ESTONIA LITHUANIA
1998 2002 1998 2002 1998 2002
is too high
is too low
When the issue is examined in the case of men and women separately, it
comes to light that in Latvia, where the work intensity is the highest among
the Baltic countries, the women's situation has stayed exactly the same during
recent years. For the men, a slight reduction in intensity is observable, even
though 41 % of Latvia's working men still felt the work to be too intensive. In
Estonia, too high a work intensity was now experienced less commonly than
in the other two countries. For both the men and the women, the proportion
feeling that the intensity was too great had decreased a little. There, for both
genders, one in three working people thought that the work was too intensive.
The changes in Lithuania, therefore, have been the greatest. In the previous
survey, it was noticed that Lithuanian men definitely had the most relaxed
working life in the Baltic countries. This has changed considerably in the last
few years. In this study, at the beginning of 2002, 44 % of the Lithuanian men
felt the work intensity to be too great; just over three years before, only just
over one-quarter (27 %) thought so. Work has become more intensive for the
women, too, in recent years. According to this survey, working life in Lithua-

152
nia has become much more demanding and stressful than before. The change
has been the greatest in the life of men working for the state. At the end of
1998, only just over one-fifth (22 %) of the men in state jobs thought that the
intensity of the work was too high, and as many as 44 % saw it as too low. In
2002, the figures were as if from another world. Now, 41 % of the men at the
old state workplaces experienced the work intensity as too great, and only one
in four (25 %) still considered it too low. The possibilities for men in state jobs
in Lithuania to avoid the hard challenges of present-day working life have decreased
markedly. Nevertheless, though the intensity has definitely increased,
men in the public sector still experience the least stressful working life compared
with other working people in Lithuania.
LATVIA
women '98
women '02
men '98
men '02
ESTONIA
women '98
women '02
men '98
men '02
TOO HIGH WORK INTENSITY BY GENDER
38%
33%
35%
33%
45%
45%
44%
41%
LITHUANIA
women '98
39%
women '02
43%
men '98
27%
men '02
44%
0% 10% 20% 30% 40% 50% 60%

153
TOO HIGH WORK INTENSITY BY ENTERPRISE TYPE
LATVIA
old, not reorganised
old, but reorganised
new, established
after re-independence
ESTONIA
old, not reorganised
old, but reorganised
new, established
after re-independence
32%
29%
31%
35%
39%
39%
40%
45%
43%
43%
48%
47%
1998
2002
LITHUANIA
old, not reorganised
30%
41%
old, but reorganised
new, established
after re-independence
33%
43%
44%
49%
0% 10% 20% 30% 40% 50% 60%
More detailed analyses reveal that the hardest, most intensive working life of
all in the Baltic countries is experienced by those women in the Lithuanian
public sector who work in another job besides their principal one. More than
half of these (52 %) said that the work intensity was too great. It can be concluded
that the issue here is that of human ability to cope. Doing two jobs,
combined with the general increase in working tempo, puts demands on a
worker's strength. At the other extreme are the men working in the Estonian
public sector who do not do another job in addition to their main one. Of
these, only just over one-fifth (22 %) felt the work intensity was too high and
about one in three (34 %) considered it too low.
In the following mean value table, work intensity is examined simultaneously
both according to gender and to sector (public-private). The scale of variation
is 1-5, where value 1 signifies an opinion that the work intensity is absolutely
too great. Value 5 is the other extreme, at which completely the opposite view
is held. Value 3, therefore, is the neutral midpoint at which the work intensity
is seen as being at a suitable level.

154
Mean work intensity values
(Scale of variation: 1= work intensity absolutely too high – 5 = work intensity
absolutely too low)
LATVIA ESTONIA LITHUANIA
Private sector
-male 2.8 2.8 2.6
-female 2.6 2.9 2.6
-total 2.7 2.9 2.6
Public sector
-male 2.7 3.1 2.8
-female 2.7 2.8 2.7
-total 2.7 2.9 2.8
All
-male 2.7 2.9 2.7
-female 2.6 2.9 2.7
-total 2.7 2.9 2.7
CHANGE IN WORK TEMPO AT THE WORKPLACE
Working people were also asked, besides evaluating the intensity of their own
work, to give a more general assessment of how the working tempo at the respondent's
workplace has changed during the year preceding the survey. The
responses were very uniform: in all the Baltic countries, slightly under half of
the workers were of the opinion that some increase in the work tempo had
been noticeable at their workplace. However, only a few more than one in ten
respondents (11-13 %) had experienced a very great tightening of the working
pace. In general, therefore, there has been a gradual acceleration in the tempo
of work at the workplace, or else there has been no change at all. Only a fairly
small proportion (6-9 %) of the working people in the Baltic nations said that
the working pace at their workplace had become more relaxed than before.
For ten years now, the change in work tempo at the workplace has been enquired
about annually in the Finnish Work Life Barometer. The results for
Finland, too, tell the same story as above: the working pace at the workplaces
has typically accelerated a little, or else there has not been any change at all.
Relaxation of the working tempo has been rare. Compared with the Baltic
countries, the pace of work at Finnish workplaces has tightened a little more.

155
Change in tempo of work at one’s workplace
(During the last 12 months)
Tempo of work at one’s
workplace has
FINLAND LITHUANIA LATVIA ESTONIA
…considerably increased 18 % 11 % 13 % 11 %
…somewhat increased 30 % 34 % 31 % 31 %
…remained the same 48 % 43 % 47 % 48 %
…somewhat decreased 3 % 8 % 6 % 5 %
…considerably decreased 0 % 1 % 1 % 1 %
Do not know 1 % 3 % 2 % 4 %
Total 100 % 100 % 100 % 100 %
(N=1297) (N=909) (N=904) (N=900)
Considering only those respondents who reported that the tempo of work had
considerably increased at their workplace, the following comes to light: in
Estonia and Latvia, about two-thirds of them work in the private sector and
around one-third in the public sector. In Lithuania the situation is different,
since half of those concerned work in the private and half in the public sector.
This result, too, indicates that work in the Lithuanian public sector has intensified
significantly during recent years. In all the countries, the women felt more
commonly than the men that the tempo at the workplace had changed to become
definitely more hectic than earlier.
The change in work tempo at the workplace was asked about in the previous
working life barometer for the Baltic countries, in the same way as now. This
makes possible a comparison of the change at these two different points in
time. In all these countries, the acceleration in working pace has continued.
However, in Latvia and especially in Estonia, the degree of acceleration has
decreased somewhat. In Lithuania, by contrast, the general trend has been
completely the opposite.

60%
40%
20%
0%
-20%
-40%
-60%
During the last 12 months
156
TEMPO OF WORK AT ONE'S WORKPLACE
47%
-10%
44%
49%
42%
34%
-7% -7% -6% -8% -9%
LATVIA ESTONIA LITHUANIA
1998 2002 1998 2002 1998 2002
has increased
has decreased
CHANGES IN MENTAL AND PHYSICAL STRESS AT WORK
The changes in mental stress at work are naturally linked to experiences of
busyness. A feeling that the intensity of work is too high often means that the
work is too burdensome. It is therefore not surprising that, of all the Baltic
countries, mental stress at work has clearly increased the most in Lithuania. In
Estonia and Latvia, the mental stressfulness of jobs is also on the increase, but
not quite as generally as in Lithuania. Although the degree of mental stress is
indeed growing, the change should not be exaggerated. It should be noted that
in all the countries, a little over half of the working people said that no change
had taken place in mental stress at work during the last year. In Lithuania, the
increase in mental stress has been slightly more marked than in the other
countries. On the other hand, in Lithuania there has been more ’room’ than in
other countries for stepping up operations and increasing the pace, since the
’starting level’ there has been lower.
45%

60%
40%
20%
0%
-20%
-40%
-60%
During the last 12 months
157
MENTAL STRESS AT WORK
40% 38%
-3% -4% -3% -3%
LATVIA ESTONIA LITHUANIA FINLAND
48%
has considerably increased has somewhat increased has decreased
An interesting phenomenon is that women clearly felt more commonly than
men that mental stress in working life had increased, in all the Baltic countries
as also in Finland. In addition to its prevalence, the women also saw the increase
in mental stress as being more marked than the men did. The differences
in experiences between the genders were similar in 1998, too (see Antila
& Ylöstalo 1999, 108). It can be concluded that the women find working life
more burdensome than the men. Increased mental stress had been experienced
the most of all by the Lithuanian women. Over half (52 %) of these mentioned
some degree of increase in mental stress at work during the past year.
39%

LATVIA
women
men
ESTONIA
women
men
LITHUANIA
women
men
During the last 12 months
158
MENTAL STRESS HAS INCREASED
34%
36%
42%
42%
FINLAND
women
43%
men
34%
0% 20% 40% 60% 80% 100%
44%
52%
considerably increased
somewhat increased
When recent changes in mental stressfulness of work among different age
groups are examined, it appears that in Lithuania the general increase in mental
stress at work has affected workers of all ages - in other words, the trend
has been universal. In Latvia, the oldest age group (i.e. the over-50s) have
been spared from the growth in work stress more frequently than the younger
ones have. One in three of Latvia's ageing workers said that their work was
more stressful than before, whereas nearly half (45 %) of the under-30s felt
that way. In Estonia and Finland, on the other hand, it is the youngest respondents
(those under 30) who have experienced a growth in work stress less frequently
than the older ones.

Mental stress
has…
considerably
increased
somewhat
increased
remained
the same
Change in mental stress at work by age
(during the last 12 months)
159
LITHUANIA LATVIA ESTONIA FINLAND
-30 y. 30-49 y. 50+ y. All -30 y. 30-49 y. 50+ y. All - 30 y. 30-49 y. 50+ y. All -30 y. 30-49 y. 50+ y. All
9 % 12 % 11 % 11 % 10 % 9 % 7 % 9 % 6 % 11 % 6 % 9 % 2 % 11 % 11 % 9 %
34 % 39 % 35 % 37 % 35 % 31 % 26 % 31 % 25 % 30 % 32 % 29 % 24 % 31 % 31 % 30 %
48 % 44 % 48 % 46 % 47 % 55 % 63 % 55 % 63 % 51 % 55 % 55 % 70 % 54 % 55 % 57 %
decreased 4 % 2 % 4 % 3 % 4 % 3 % 2 % 3 % 3 % 5 % 4 % 4 % 3 % 3 % 3 % 3 %
Do not know 5 % 3 % 2 % 3 % 4 % 2 % 2 % 2 % 3 % 3 % 3 % 3 % 1 % 1 % 0 % 1 %
Total 100 %
(N=174)
100 %
(N=526)
100 %
(N=209)
100 %
(N=909)
100 %
(N=209)
100 %
(N=487)
100 %
(N=208)
100 %
(N=904)
100 %
(N=175)
100 %
(N=465)
100 %
(N=260)
100 %
(N=900)
100 %
(N=252)
100 %
(N=674)
100 %
(N=371)
100 %
(N=129

160
In 2002 in Latvia and Estonia, a smaller proportion of working people than in
the 1998 survey felt that mental stress at work had increased within the space
of a year. The downward trend in Latvia and Estonia can be considered pretty
clear. In Lithuania, however, the situation is the complete opposite. The increase
in mental stress that has taken place there can be said to be almost dramatic.
60%
40%
20%
0%
-20%
-40%
-60%
47%
During the last 12 months
40%
MENTAL STRESS AT WORK
43%
-4% -3% -5% -4% -4% -3%
LATVIA ESTONIA LITHUANIA
1998 2002 1998 2002 1998 2002
has increased
has decreased
As to trends in physical stress at work, Finland differs clearly from the Baltic
countries. In Finland, only just over one-fifth (22 %) of the working people
felt that their work was more physically stressful than earlier. In the Baltic
countries, the corresponding proportion varied from Latvia's 37 per cent to
Lithuania's 40 per cent. On the whole, it can be seen that work in all three
countries is becoming not only mentally but also physically more burdensome,
since only very few workers told of an easing in work stress.
38%
31%
48%

60%
40%
20%
0%
-20%
-40%
-60%
During the last 12 months
161
PHYSICAL STRESS AT WORK
37% 38% 40%
-4% -6% -4% -3%
has considerably increased has somewhat increased has decreased
LATVIA ESTONIA LITHUANIA FINLAND
Physical work stress - or, more precisely, its increase - is not linked to gender
in the same way as mental stress. In Estonia, there were in fact no differences
between men and women as regards prevalence of increased physical stress.
The men in Latvia experienced added physical stress a little more commonly
than did the women. In Finland, as also in Lithuania, the women felt that both
the physical and the mental stress at work had grown more commonly, and to
a greater degree, than did the men. Physical stress had increased the most of
all among the women in Lithuania - that is, the same group which had also
most commonly experienced an increase in mental stress. Altogether 43 % of
the Lithuanian women felt that their work had become more physically burdensome
than before.
22%

LATVIA
women
men
ESTONIA
women
men
LITHUANIA
women
men
During the last 12 months
162
PHYSICAL STRESS HAS INCREASED
36%
38%
38%
39%
43%
39%
considerably increased
somewhat increased
FINLAND
women
26%
men
18%
0% 20% 40% 60% 80% 100%
When the Baltic nations are compared with each other as regards trends in the
physical stressfulness of work, the result is the same as for mental stress. In all
the countries, the number who have experienced increased stress is many
times greater than those feeling that it has decreased. Taken generally, therefore,
work is becoming more burdensome than before. The speed or intensity
of the increase, however, has become lower in both Latvia and Estonia. In
1998, a greater percentage of working people in these countries than in 2002
felt that both the physical and the mental stress at work had grown. In Lithuania,
the trend has been entirely the opposite. There, an increase in both physical
and mental work stress was experienced by a definitely greater proportion
of working people in 2002 than in the 1998 survey.

60%
40%
20%
0%
-20%
-40%
-60%
42%
-6%
During the last 12 months
163
PHYSICAL STRESS AT WORK
37%
-4%
44%
-7%
LATVIA ESTONIA LITHUANIA
1998 2002 1998 2002 1998 2002
CHANGES IN SAFETY AT WORK
has increased
has decreased
In all the Baltic nations, the greater part of the working people had not experienced
any change in work safety during the previous year. Considered on the
whole, the fairly slight changes that had been observed were positive ones -
since in all the countries, out of those who reported changes, a clear majority
considered their occupational safety to have improved.
LATVIA
During the last 12 months safety at work Men Women All
has…
(%) (%) (%)
…considerably increased 3.8 3.5 3.7
…somewhat increased 20.2 9.8 14.7
…remained the same 68.5 79.5 74.3
…somewhat decreased 3.5 2.1 2.8
…considerably decreased 0.7 0.6 0.7
Do not know 3.3 4.4 3.9
Total
p = .000
100 % 100 % 100 %
38%
-6%
34%
-8%
40%
-4%

164
Work safety in Latvia is seen as having improved the most. The Latvian men
in particular evaluated as very positive the development that had taken place.
Almost one in four Latvian men (24 %) felt that their occupational safety had
become better during the year preceding the survey.
ESTONIA
During the last 12 months safety at work Men Women All
has…
(%) (%) (%)
…considerably increased 2.3 1.9 2.1
…somewhat increased 15.4 9.1 12.1
…remained the same 72.0 79.8 76.1
…somewhat decreased 4.4 2.8 3.6
…considerably decreased 0.2 0.4 0.3
Do not know 5.6 5.9 5.8
Total
p = .046
100 % 100 % 100 %
Also in Estonia, more men than women evaluated occupational safety as having
developed positively, though the gender differences were not as great as in
Latvia. Both the men's and the women's experiences of improved work safety
were a little less prevalent in Estonia than in Latvia. Nevertheless, in Estonia
too, those experiencing the change as positive were several times as numerous
as the ones who saw it as negative. There, as also in the other Baltic countries,
the great majority of the working people did not think that safety at work had
changed during the year prior to the survey.
LITHUANIA
During the last 12 months safety at work Men Women All
has…
(%) (%) (%)
…considerably increased 1.3 1.3 1.3
…somewhat increased 11.3 8.3 9.8
…remained the same 78.5 81.9 80.2
…somewhat decreased 5.1 3.9 4.5
…considerably decreased 0.7 1.3 1.0
Do not know 3.1 3.3 3.2
Total
p = .536
100 % 100 % 100 %

165
The development in occupational safety in Lithuania has been somewhat
weaker than in the other two countries. As many as four out of five workers
had not noticed any change in this respect. Only about one-tenth (11.1 %) of
the Lithuanian working people saw work safety as having improved. The corresponding
proportion in Latvia was 18.4 % and in Estonia 14.2 %. There are
thus fewer positive experiences in Lithuania compared with the other countries
under comparison; and the negative experiences are correspondingly more
numerous. In Lithuania, too, the men see the development as positive a little
more commonly than do the women. However, the differences in views between
the genders as regards changes in work safety are clearly smaller than
those in Latvia and Estonia.
40%
20%
0%
-20%
SAFETY AT WORK HAS INCREASED/DECREASED
Within the last 12 months
LATVIA ESTONIA LITHUANIA
-40%
1998 2002 1998 2002 1998 2002
Increased 20% 18% 17% 14% 15% 11%
Decreased -5% -4% -7% -4% -3% -6%
Decreased Increased
Fewer changes have taken place in work safety in Latvia and Estonia now than
in the late 1990s. Fewer have experienced either positive or negative changes
than in 1998. The situation in Lithuania is different. There, fewer than before
have noticed positive changes and more have observed negative ones. Although
those experiencing positive changes are nevertheless twice as many as
those suffering negative ones, the Lithuanian trend is not a favourable one.

CONFLICTS
166
To finish this chapter, we will take a look at working people's experiences of
conflicts at the workplace. In the previous survey in the latter part of 1998, it
was striking how the incidence of conflict situations was much more widespread
in Lithuania relative to the other countries. In 2002, the position is very
different as regards the comparison between the countries. The situation in
Lithuania has, on the whole, improved slightly; but in Latvia, workplace conflicts
have increased considerably. This being so, Latvia and Lithuania are
now fairly close to each other with respect to conflicts. In Estonia, practically
no change has taken place: the figures are in fact astonishingly similar to those
of three years earlier. It is indeed clear that all the types of conflict enquired
about in the survey are less common at the Estonian workplaces than at the
Latvian and Lithuanian ones.
50%
40%
30%
20%
10%
0%
27%
18%
22%
Between superiors
and employees
A lot or quite a lot
CONFLICTS WITHIN A WORKPLACE
25%
13%
29%
Rivalry,
internal
competition
19%
10%
15%
20%
11%
16%
With clients Between
employees
LATVIA ESTONIA LITHUANIA
10%
6%
11%
Between
groups of
employees
6%
3%
7%
Threat of physical
or mental violence
The Latvian trend has been very disturbing. All the conflict types surveyed
happen there more commonly now than according to the previous survey. Not
only have the conflicts become more widespread, affecting more of the working
people than earlier - but they have also increased in frequency, occurring
more often than before. In other words, the conflicts have increased in both an

167
extensive and an intensive sense. In this respect, Latvia's working life has developed
in a negative direction. The trend has been the same in both the private
and the public sector. There are no significant differences between the
genders, either, as regards conflict experiences.
50%
40%
30%
20%
10%
0%
13%
CONFLICTS WITHIN A WORKPLACE IN LATVIA
15%
11%
1998 and 2002
19%
9%
20%
5%
10%
Quite a lot
Between superiors Rivalry, internal With clients Between Between groups Threat of
and employees competition
27%
25%
employees of employees physical or
mental
violence
5% 6%
'98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02
Especially problems in relations between superiors and employees have become
very much more common. About six per cent of the working people
stated that there were a lot of conflicts between superiors and those under
them, and more than one in five (21 %) said that there were quite a lot. The
total of these two groups added together (27 %) is more than twice that arrived
at in the previous study. The greater part of the Latvians experience such
problems at least to some extent, since only 28 % of the respondents reported
that there were no conflicts at all between superiors and employees at their
workplace. In 1998, however, as many as 40 % of the working people had answered
that way. Conflicts between employees, too, have doubled in three
years. What is apparent here, therefore, is a rather significant trend for the
worse.
A lot

168
In the question of conflicts, Estonia is astonishingly stable. The proportion
experiencing conflicts between superiors and employees either a lot or quite a
lot has increased since the last survey by a mere one per cent, which could be
explained as due to random variation. For all the other conflict types, the percentages
are the same as in the preceding study. This plays a part in confirming
the reliability of the results. If the question were misunderstood or if the
research were unreliable, the same percentages could not in practice recur in a
survey of such wide extent.
50%
40%
30%
20%
10%
0%
CONFLICTS WITHIN A WORKPLACE IN ESTONIA
19% 18%
13% 13%
1998 and 2002
9% 9%
11% 11%
6% 6%
Quite a lot
Between superiors Rivalry, internal With clients Between Between groups Threat of
and employees competition employees of employees physical or
mental
violence
3% 3%
'98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02
As seen above, conflicts definitely occur less in Estonia than in Latvia and
Lithuania. The situation there in this respect is thus good. Estonia's constant
result, however, does not signify a positive development, but rather a stabilisation
in the situation. Its relative position among the other Baltic countries
has improved in this case owing to the increased proportions of conflicts in
Latvia and the already considerable ones in Lithuania.
When conflicts are examined according to gender and sector in Estonia, it becomes
apparent that gender is of no practical significance to the conflict issue.
The sector, however, is significant: all the conflicts under study are more
common in the public than the private sector.
A lot

169
In Lithuania, the trend has been rather uneven; but, considered as a whole, the
interpretation is perhaps possible that positive development has taken place in
the question of conflicts. Those between superiors and employees have decreased,
as have those between individual employees. Conflicts with clients
have also become fewer. The commonest cause of conflicts at the workplaces
is rivalry between workers. These conflicts due to a competitive spirit within
the workplace have increased markedly. In the 1998 study, over half (52 %) of
the Lithuanians had not at all experienced any conflicts arising from internal
competition at the workplace. Three years later, this proportion had fallen to
somewhat over one-third (37 %).
50%
40%
30%
20%
10%
0%
CONFLICTS WITHIN A WORKPLACE IN LITHUANIA
21%
24%
21%
1998 and 2002
15%
20%
16%
10% 11%
Quite a lot
Between superiors Rivalry, internal With clients Between Between groups Threat of
and employees competition employees of employees physical or
mental
29%
27%
violence
6% 7%
'98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02
The significant changes in the public sector (increased work pressure and new
efficiency requirements) are reflected also in conflict experiences. Almost all
the conflict types are more common in the public than in the private sector.
For instance, conflicts arising from internal competition within the workplaces,
mentioned above, are a considerable problem in the public sector.
More than one in three public-sector workers (37 %) had experienced such
conflicts either a lot or quite a lot. Fewer than one in four (24 %) of the private-sector
personnel had similar experiences. Making staff compete internally
A lot

170
may be a sign of efficiency; but, taken too far, it wears away the workers'
mutual trust in one another and their feeling of belonging together. 1 Many
studies have viewed these factors as having significance for smooth and innovative
operations and, in the long run, even for the success of companies. (See
e.g. Fukuyama 1995, Antila & Ylöstalo 2002, Cully & Woodland & O’Reilly
& Dix 1999, Appelbaum & Bailey & Berg & Kalleberg 2000, Flexibility
Matters 1999).
1 The increased internal competition apparent from the Lithuanian data signifies a weakening in the
work atmosphere and a decreased solidarity among workers. The Pearson correlation between the
phenomena is .32 (p=.000). The explanatory part played by internal competition in a working atmosphere
experienced as poor, was examined by linear regression analysis. The explanatory part played
(R square) was 10 %.

171
WAGE EARNERS' POSSIBILITIES OF
INFLUENCING THEIR JOBS
POSSIBILITIES OF INFLUENCING JOB TASKS
The most recent empirical studies of the Nordic countries emphasise the significance
of task autonomy, assumed responsibility and commitment as factors
of increased productivity and, even wider, success of the company (Antila &
Ylöstalo 2002, NUTEK 1999). The idea of transferring responsibility, at least
partly, to the workers 1 is by no means new. It is related to the discussion of
work humanisation, which has been a much-discussed topic in work sociology
for decades now.
The great transition period the Baltic countries underwent in the 90's presumably
required also a change of task organisation at the same time as the entire
concept of work had to be re-evaluated. In the free market economy, the enterprises
cannot ignore the quality of work, times of delivery etc., which was still
possible in the time of the Soviet Union. To be successful, even to survive,
requires investments in either quality or price – more and more often in both.
According to several western studies, the outdated and hierarchical, so-called
Taylorist organisation of manufacturing, can only seldom respond to the stepping-up
competition and the hectically changing operating environment that
the enterprises have. The enterprise is more often dependent on the involvement
and commitment of its personnel and on extensive utilisation of their
competence. We shall not study here the chances of survival of the companies
from that point of view directly, but the answers given by individual employees
convey indirect information to us about how general it is among the Baltic
companies, in the spirit of the times, to be functionally flexible.
1 There are several books available on worker participation and its effects. See e.g. Guest & Knight
1979, Julkunen 1987, Womack & Jones & Roos 1990, EPOC 1995 and 1999, Flexibility Matters
1999, Gallie & White & Cheng & Tomlinson 1998, Kevätsalo 1999, OECD 1999, Appelbaum &
Bailey & Berg & Kalleberg 2000.

172
The workers' possibilities of influencing their jobs will be separately charted
in relation to job tasks and work tempo. Moreover, the workers' autonomy in
the following aspects will be measured: daily and weekly planning of work,
and follow-up of work quality. These three indicators are combined in a socalled
responsibility index used to compare the Baltic countries not only with
each other but the situation in 1998.
100%
50%
0%
-50%
DEGREE OF INFLUENCE ON JOB TASKS
Wage earners only
Rather a lot Totally
Very little Not at all
LATVIA ESTONIA LITHUANIA FINLAND
-100%
'98 '02 '98 '02 '98 '02 '02
Totally 27% 21% 12% 9% 12% 25% 16%
Rather a lot 30% 31% 29% 30% 18% 26% 22%
Not at all -16% -18% -24% -23% -39% -21% -19%
Very little -26% -29% -33% -37% -26% -27% -44%
As to Lithuanian wage earners' possibilities for influencing their tasks at work,
great changes have taken place. In the previous survey in the latter part of
1998, they had the least powers of decision as to their job tasks. The change
occurring in three years has been tremendous, since Lithuania has now
climbed up into the lead among the Baltic countries in this aspect. As many as
one-quarter of the Lithuanian wage earners reported that they could decide
totally about the content of their work; just over three years earlier, only 12 %
had responded that way. Furthermore, practically just as many said that they
could influence their work content rather a lot. This proportion, too, has grown
considerably. Altogether, about half (51 %) of Lithuania's wage earners stated
that they could decide about the content of their work rather a lot or totally. In
the previous survey, such an answer was given by fewer than one-third (30
%).

173
Even though in Latvia a slight reduction has occurred in wage earners' influence
in decisions affecting job tasks, there also half of them still have at least
quite good possibilities of exerting influence in this aspect. In Estonia, perhaps
surprisingly, the workers clearly have less power of decision about their job
content than in Latvia and Lithuania. Only 9 % of Estonia's wage earners saw
the possibilities as extremely good. The proportion in the earlier survey was
12 %, and so the fairly low percentage has diminished still further. Unlike
Latvia and Lithuania, Estonia has more wage earners who (calculated as a
combined total) consider their powers of decision as poor, than those who
reckon them as good. The same situation prevails in Finland also.
Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
DEGREE OF INFLUENCE ON JOB TASKS
Lithuanian employees
41%
45%
48%
55%
51%
52%
51%
61%
totally rather a lot
0% 20% 40% 60% 80% 100%
Wage earners in the Lithuanian public sector definitely have more power of
decision in matters relating to their work than the private-sector personnel do.
A little surprisingly perhaps, women have more chance of influence than do
men. Because the public-sector workers have more such possibilities than
those in the private sector, and because a majority of the women work in the
public sector 2 and a majority of the men in the private sector, it could be as-
2 Of the female wage earners surveyed, 58 % worked in the public sector and 41 % in the private
sector. For one per cent, the sector was unknown. As to the men, their proportions were almost the
opposite: 39 % were in the public and 60 % in the private sector. The sector was unknown also for one
per cent of the men.

174
sumed that the question of sector would explain the above gender gap. This is
not so, however, because a study of only the public-sector wage earners reveals
that even within that sector the women's possibilities for influence are
clearly greater than the men's 3 . Where private-sector employees are concerned,
the corresponding differences between the women and the men are much
smaller 4 . In comparison with the earlier study, both the men's and the women's
power of decision has increased; but in the women's case, the increase has
been much greater and more widespread.
When the responses from wage earners of different ages are examined, it is
seen that the possibilities of influencing job tasks increase with age in Lithuania.
Nevertheless, even in the youngest age group, nearly half thought that
they could influence their work content rather a lot or totally.
In Latvia, the changes in such powers of decision in recent years have been
very few. The proportion who feel able to influence their own job tasks totally
has decreased slightly; and correspondingly, the percentage having this possibility
only a little or none at all has grown. However, as has been said, the
changes are quite small.
In regard to this issue, working life in Latvia appears very equitable and democratic.
About half of the men and also of the women can influence their
work content rather a lot or totally. Neither are there any great differences
between the public- and private-sector employees in this respect. Half of the
wage earners of all ages have possibilities of influencing their tasks rather a lot
or totally. Age, however, brings with it a little more autonomy, since the oldest
age group contained the greatest proportion of those with total influence over
the content of their work.
3 Of the women in the public sector, 32 % felt that their possibilities for influence on their job tasks
were extremely good, and just as many (32 %) rather good. The corresponding proportions for the
public-sector men were 26 % and 28 %, so that the differences were noticeable.
4 Among the female private-sector wage earners, 21 % considered their influence opportunities
extremely good, and 20 % rather good. The corresponding figures for the men were 17 % and 23 %.

Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
175
DEGREE OF INFLUENCE ON JOB TASKS
Latvian employees
52%
52%
52%
52%
51%
53%
50%
52%
totally rather a lot
0% 20% 40% 60% 80% 100%
DEGREE OF INFLUENCE ON JOB TASKS
Estonian employees
40%
39%
37%
42%
40%
39%
38%
39%
totally rather a lot
0% 20% 40% 60% 80% 100%
Estonia, like Latvia, has remained fairly constant in recent years as far as
changes in job-related powers of decision are concerned. The possibilities for
influencing job tasks in Estonia, though, are clearly fewer than in the other

176
two Baltic countries. This should be studied in greater detail. On the other
hand Estonia, as also Latvia, seems to be very democratic in this matter. There
is practically no difference between the public and private sectors. Similarly,
the possibilities of different age groups are at more or less the same level. The
only gaps are between the genders: in contrast to Lithuania, the men in Estonia
have more chances of influencing their work content than the women have.
During the last few years, the men's autonomy in this respect has grown
slightly and the women's decreased. 5
POSSIBILITIES OF INFLUENCING WORK TEMPO
The Lithuanian wage earners' increased possibilities of influence can also be
seen when these are asked about in relation to the tempo of work. In the previous
study, 15 % of Lithuania's workers considered the possibilities extremely
good in this connection; now, the percentage has doubled. Almost one-third
(30 %) of the employees in Lithuania claimed to have total ability to influence
the working pace, and even slightly more than that felt they could influence it
rather a lot. The changes which have taken place in the degree of wage earners'
job autonomy in Lithuania are very significant.
Although Lithuanian wage earners' powers of decision have increased considerably,
Latvia still leads the Baltic countries as far as autonomy in one's job is
concerned. More than two out of three wage earners in Latvia (68 %) felt able
to influence their work tempo rather a lot or totally. The changes in job autonomy
there in recent years have been rather insignificant ones: the country has
been very stable in this respect.
Estonia has shown similar stability; but there, the wage earners' possibilities of
influencing either the content or the tempo of their work are definitely fewer
than in Latvia and Lithuania. In Estonia, only 16 % of the employees considered
their potential to influence the work tempo as extremely good. This figure
is a little less than half of that of Latvia and of Lithuania, being even smaller
than that of Finland.
5 In the previous survey, 12 % of the female wage earners felt they could exert influence their work
content totally and 28 % rather a lot. Now, the corresponding proportions were 9 % and 28 %.
Previously, 11 % of the men considered their possibilities of influencing their work content as total,
and 29 % as rather a lot. The figures in the present study were 10 % and 32 %.

100%
50%
0%
-50%
177
DEGREE OF INFLUENCE ON WORK TEMPO
Wage earners only
Rather a lot Totally
Very little Not at all
LATVIA ESTONIA LITHUANIA FINLAND
-100%
'98 '02 '98 '02 '98 '02 '02
Totally 35% 30% 16% 16% 15% 30% 21%
Rather a lot 29% 38% 37% 36% 19% 33% 23%
Not at all -12% -10% -19% -16% -35% -14% -17%
Very little -21% -21% -27% -30% -23% -21% -38%
Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
DEGREE OF INFLUENCE ON WORK TEMPO
Latvian employees
64%
71%
70%
66%
66%
64%
68%
74%
0% 20% 40% 60% 80% 100%
totally rather a lot
Latvia's wage earners in the private sector have more possibility to influence
their working pace than do the public-sector workers. There are somewhat
more chances for the men than for the women. This is true in both the public

178
and the private sectors, though in the public sector the gap between the genders
is much bigger 6 . The youngest wage earners experience their power of
decision in this regard as better than that of the older age groups.
In Lithuania, the differences between the sectors were opposite to those seen
in Latvia. The wage earners in the Lithuanian public sector saw their possibilities
of influencing work tempo as clearly better than those of the privatesector
employees. The gender gaps, too, contrasted with those in Latvia. The
Lithuanian women had more autonomy than the men, in this issue as well. The
experiences of different-aged workers did not differ greatly from each other,
though the youngest age group considered their autonomy in work tempo to be
slightly better than that of the other age groups.
Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
DEGREE OF INFLUENCE ON WORK TEMPO
Lithuanian employees
59%
58%
67%
67%
65%
63%
61%
63%
0% 20% 40% 60% 80% 100%
totally rather a lot
6 Of the male private-sector wage-earners, 75 % saw their possibilities of influencing the work tempo
as rather good at least. Among the women in the private sector, 73 % answered accordingly. As to the
male wage earners in the public sector, 70 % thought their possibilities of influencing the work pace
were at least rather good. Of the public-sector women, 61 % answered that way.

Private sector
Public sector
Men
Women
under 30 years
30-49 years
50+ years
All
179
DEGREE OF INFLUENCE ON WORK TEMPO
Estonian employees
54%
51%
54%
52%
55%
54%
49%
52%
0% 20% 40% 60% 80% 100%
totally rather a lot
In Estonia, the differences between the sectors are not as great as in the other
two Baltic countries. The private-sector wage earners considered that they had
slightly better chances of influencing their work pace than did the public-sector
personnel. The gaps between the men and women in this case were also
small. What is more conspicuous is that an examination according to age
groups reveals a somewhat weaker position for the ageing workers compared
with the rest. Wage earners over 50 viewed their potential for influencing their
work tempo less favourably than the under-50s.
SHARING RESPONSIBILITY AT THE WORKPLACE
A separate index 7 was used to measure the (de)centralisation of power of decision.
The reason for this aspect of the survey was the idea that not only the
workers' productivity but also their competence and job satisfaction increase if
7 In this study, the responsibility index is formed rather simply through three questions: Who normally
executes the following work tasks at your workplace? 1) daily planning of own work, 2) weekly
planning of own work, 3) quality control. The answering options and their rating were: employee
him/herself (2 points), employees together (1 point), foreman (-1 point) and management or someone
else (-2 points). If the person interviewed could not answer, he/she was recorded as 'data missing'. The
points were added up to give the index, the maximum being 6 and the minimum –6. The figure in the
table is the arithmetic mean of the index.

180
the individuals are allowed to participate in the decision-making concerning
themselves. They understand and feel the responsibility related to these decisions
and commit themselves more to the activities. Then the 'waste' or underutilisation
of human resources decreases and the enterprise grows more competitive
(see Kevätsalo 1999). In the private sector, delegation of responsibility
to the executive level is important also because it gives the enterprise more
speed and flexibility in the market to turn in whatever direction is needed
(NUTEK 1996). Our studies showed, too, that it is vital - especially in the private
sector - to share responsibility and give independence to the workers in
order to enable the company to meet the ever-changing challenges. In fact,
even such a simple indicator as the responsibility index gives a fairly good
forecast of the company's success in the long run. This applies at least to
Finland (see Antila & Ylöstalo 1999, 2002).
Responsibility index, mean
(employees only)
LATVIA ESTONIA LITHUANIA
1998 -0.71 -1.03 -2.74
2002 0.25 -0.75 -0.78
The mean value figures for the responsibility index show that in all the Baltic
countries, the wage earners' possibilities of exerting influence in the planning
and quality control of their own work have increased during recent years. In
this survey, as also in the previous one, it was Latvia where employees had
these possibilities the most. The situation has changed the most in Lithuania;
but, on average, such powers of decision are still less prevalent there than
elsewhere. It is indeed true that the gap between Lithuania and Estonia as regards
the responsibility index is nowadays very small.
An examination of the percentages at the extreme ends of the variation scale
(values –6 and +6) revealed that in Latvia, only 6 % of the wage earners said
that all three of the aspects connected with the employee's work were decided
on by the management alone (i.e. that the employee him/herself had no say in
the matter and the decision-making power had been removed as far from the
worker as possible). In Estonia, over twice as great a proportion of wage earners
(13 %) responded that way, and in Lithuania as many as one in five (20
%). The differences between the countries here are thus considerable. At the
other end of the responsibility index scale - that is, full empowerment of the

181
wage earners - it is seen that in Latvia, 15 % of the workers reported that they
decided entirely by themselves concerning the daily and weekly planning of
their tasks, as well as personally controlling the quality of their own work. In
Lithuania, one in ten employees (10 %) worked under corresponding conditions;
and in Estonia, only seven per cent.
When the mean index values are examined according to gender, some interesting
information comes to light. In all the Baltic countries, the women have
more powers of decision, on average, than the men do in matters regarding the
planning and quality control of their own work. This maybe surprising gap
between the genders is not explained by the fact that the women's educational
background is better than the men's. Even after the education factor has been
standardised, the difference between the female and male employees still runs
along the same lines. Neither does standardisation for the sectors bring any
change. In all the Baltic countries, for all levels of education, in both the public
and the private sector, the women workers have better possibilities than the
men of influencing the planning and quality control of their own job tasks.
Responsibility index by gender, mean
(employees only)
LATVIA ESTONIA LITHUANIA
Men -0.09 -1.13 -1.68
Women 0.53 -0.44 0.04
All 0.25 -0.75 -0.78

JOB SATISFACTION
182
When working people in the Baltic countries have been asked how satisfied
they are with their job, it is evident that the great majority are quite satisfied.
The situation has not changed significantly in the last few years. Estonia has
the most who regard their work positively and the least who regard it negatively;
there has been hardly any change there. In Latvia, job satisfaction has
decreased slightly on the whole; and in Lithuania it has increased a little. The
proportion of Lithuania's working people who are very satisfied with their jobs
has grown to 22 %. In all three countries, there are very few (3-4 %) who are
very dissatisfied with their job.
100%
50%
0%
-50%
83%
-16%
-22%
JOB SATISFACTION
LATVIA ESTONIA LITHUANIA
78% 81% 83%
-17% -17%
75% 76%
-100%
'98 '02 '98 '02 '98 '02
Very satisfied 24% 18% 20% 19% 13% 22%
-25%
Quite satisfied Very satisfied
-21%
Very dissatisfied Rather dissatisfied
Quite satisfied 59% 60% 61% 64% 62% 54%
Rather dissatisfied -13% -19% -13% -14% -22% -17%
Very dissatisfied -3% -3% -4% -3% -3% -4%
In Estonia and Latvia, there are no significant differences between men and
women as far as job satisfaction is concerned. The situation was the same in
the preceding survey in the latter part of 1998: then, too, the men's and
women's responses were very similar to each other. In Lithuania, on the other
hand, there are differences: on the whole, the women there are more satisfied
with their jobs than the men are. Again, the previous study had given the same

183
result. The Lithuanian women's greater degree of satisfaction compared with
the men is linked largely to the fact that the women work mostly in the public
and the men mostly in the private sector. There are great differences in job
satisfaction between the sectors in Lithuania: working people in the public
sector are considerably more satisfied than those in the private sector. Those
who are the most dissatisfied of all among the Baltic countries are Lithuanian
private-sector workers. In Latvia and Estonia the sectoral differences, though
along the same lines as in Lithuania, are rather small.
JOB SATISFACTION IN PRIVATE AND PUBLIC SECTOR
100%
50%
0%
-50%
76%
-23%
LATVIA ESTONIA LITHUANIA
80% 81% 84%
-19% -18% -16%
-100%
Private Public Private Public Private Public
Very satisfied 18% 18% 18% 19% 18% 28%
70%
-27%
Quite satisfied Very satisfied
85%
-13%
Very dissatisfied Rather dissatisfied
Quite satisfied 58% 62% 63% 65% 52% 57%
Rather dissatisfied -20% -17% -15% -14% -21% -11%
Very dissatisfied -3% -2% -3% -2% -6% -2%
A detailed comparison of men's and women's opinions in the different sectors
shows that female private-sector workers in Lithuania are somewhat more dissatisfied
than the men. The gaps between the genders in the private sector are
nevertheless fairly small. In the public sector, by contrast, the women's greater
satisfaction compared with the men is striking.

100%
50%
0%
-50%
-100%
78% 78%
-22%
184
JOB SATISFACTION BY GENDER
-21%
83% 82%
-17% -17%
74%
-23%
78%
-20%
LATVIA ESTONIA LITHUANIA
Satisfied
Dissatisfied
Men Women Men Women Men Women
Job satisfaction of men and women in different sectors in Lithuania
JOB SATISFACTION Men Women All
Private sector
Very satisfied 17 % 18 % 18 %
Somewhat satisfied 53 % 49 % 52 %
Not very satisfied 22 % 21 % 21 %
Not at all satisfied 4 % 9 % 6 %
Do not know 4 % 3 % 3 %
Total 100 % (N=302) 100 % (N=216) 100 % (N=518)
Public sector
Very satisfied 25 % 30 % 28 %
Somewhat satisfied 56 % 57 % 57 %
Not very satisfied 12 % 11 % 11 %
Not at all satisfied 5 % 0 % 2 %
Do not know 2 % 2 % 2 %
Total 100 % (N=147) 100 % (N=240) 100 % (N=387)
When job satisfaction in different age groups is examined, it becomes apparent
that Lithuania's youngest working people (under 30) are a little more dissatisfied
than their elders, and the oldest age group of all (50 and over) are the

185
most satisfied of all. The gaps between the age groups are small, however. In
Estonia and Latvia, age bears no relation to job satisfaction.
In what follows, job satisfaction is studied in somewhat more detail. The simple
question, "How satisfied are you with your present job?" has proved surprisingly
difficult to interpret - or, rather, the responses are too imprecise due
to the general nature of the question. In Finland, for instance, respondents
commonly answer that they are quite satisfied, but a closer scrutiny of the
matter reveals that it is typically a case of accepting the prevailing state of affairs,
maybe even becoming passive and resigning oneself to the circumstances.
Often, the same persons who state that they are quite satisfied, experience
their work as excessively stressful and the workplace atmosphere as
problematic, and are rather dissatisfied with many other aspects furthermore.
On one questionnaire form, the respondent had in fact written beside the question
whether one was satisfied with one's job the enlightening comment ”I
have to be”.
ATMOSPHERE AT THE WORKPLACE
An enquiry concerning the workplace atmosphere and changes in it in recent
years showed that in Estonia, there had been progress in a positive direction.
There were more satisfied persons, and fewer dissatisfied, than in the preceding
study. Nearly two-thirds (64 %) of the working people were at least
somewhat satisfied with the atmosphere at their workplace. Almost one-third
(30 %) of the respondents were even very satisfied. Those who were dissatisfied
totalled 10 %. The percentages missing from the graph represent those
respondents who did not consider the atmosphere to be good anymore than
bad, or were unable to answer the question at all. The graph shows only the
proportions of those who evaluated the work atmosphere as either good or
bad.
In Estonia, as in the case of job satisfaction, there are no significant differences
between male and female workers regarding experiences of workplace
atmosphere. In all the age groups, a clear majority consider the work atmosphere
to be good. The youngest age group (the under-30s) has the most (71 %)
who are satisfied with the atmosphere. About one in ten respondents in each
age group consider it poor. Neither are there any significant gaps in work at-

186
mosphere assessment between the public and private sectors. In both sectors,
64 % of the respondents think that the atmosphere is good. Those deeming it
poor constitute 12 % of the public-sector and 9 % of the private-sector personnel.
THERE IS A PLEASANT ATMOSPHERE AND A SPIRIT OF SOLIDARITY
100%
50%
0%
-50%
67%
-9%
LATVIA ESTONIA LITHUANIA
58%
60%
64%
56%
-15% -12% -10% -11%
Somewhat agree Totally agree
-100%
'98 '02 '98 '02 '98 '02
Totally agree 40% 31% 29% 30% 17% 19%
48%
-21%
Totally disagree Somewhat disagree
Somewhat agree 27% 27% 31% 34% 39% 29%
Somewhat disagree -5% -10% -8% -7% -9% -14%
Totally disagree -4% -5% -4% -3% -2% -7%
In Latvia, the general trend in work atmosphere has been negative. A majority
of the working people (58 %) still experience the atmosphere at their place of
work as positive; but the percentage who consider it extremely good has fallen
clearly since the last survey. At the same time, the dissatisfied proportion has
grown to 15 %.
Latvia's public-sector personnel evaluate the workplace atmosphere more
positively than those in the private sector. Close to two-thirds (63 %) regard it
as good, whereas only just over half (56 %) in the private sector think that
way. There are no differences between the sectors in the percentages of dissatisfied
persons - which means that the private sector clearly has more who
do not see the atmosphere as good any more than bad. Because the women
work in the public sector more commonly than the men, it is no surprise that

187
more female workers than males state the atmosphere to be good 1 . At the other
extreme, on the other hand, the percentages who are dissatisfied show no differences
between the genders. An examination by age group reveals that the
young people have a more critical attitude toward the work atmosphere than
the older ones. Somewhat over half (54 %) of the under-30s considered the
atmosphere good, a smaller proportion than for the older age groups. The most
dissatisfied, correspondingly, were found among the young people. One in
five young people (20 %) saw the working atmosphere as poor, while 13-15 %
of the respondents in the other age groups were of this view.
As in Latvia, also in Lithuania the atmosphere at the workplaces has, generally
speaking, definitely deteriorated. Slightly less than half (48 %) of the Lithuanian
working people assess it as good, while at the same time about one-fifth
(21 %) feel that it is poor. These proportions for Lithuania differ clearly from
those for the other two Baltic countries. In particular, the fact that the percentage
who are dissatisfied has almost doubled in three years is rather alarming.
It has already been seen that job satisfaction is considerably more prevalent in
Lithuania's public sector than in its private sector. In the case of workplace
atmosphere, however, no such gap is observable: in both sectors, slightly less
than half the personnel state it to be either very good or quite good. The percentages
of dissatisfied persons, too, hardly differ according to sector. It was
also stated above that the women in Lithuania were more satisfied with their
jobs than the men were. In regard to atmosphere at the workplace, though,
there are no significant differences between the genders. An examination by
age group indicates that the oldest working people (those 50 and over) are
more satisfied with their jobs and also with the work atmosphere than the
younger ones are. Rather more than half (55 %) of the oldest group considered
the atmosphere at the workplace as good.
RELATIONS BETWEEN WORK COLLEAGUES
Relations between workers constitute one important factor associated with job
satisfaction. They have already been touched upon above in the discussion of
workplace atmosphere, but here the subject is dealt with in greater detail. Two
1 Of the women, 35 % felt the work atmosphere to be very good and 26 % quite good. Among the
men, 27 % regarded it as very good and 29 % as quite good.

188
aspects are enquired about: 1) mutual trust between employees and 2) selfishness
or self-centredness among them. Both these topics are aimed at finding
out the extent to which trust and solidarity exists between colleagues at workplaces
in the countries under study.
The modern sociopolitical debate concerning social capital is often based on
the concept of trust (cf. Ilmonen 2000). Trust often develops gradually, and it
cannot be purchased like a commodity. This being so, the ”trust situation” at
workplaces often tells a lot about their culture. Development of trust-based
relations facilitates cooperation (Mishra 1996) - which, in its turn, tends to
increase trust. In this sense, trust means reciprocity of expectations (Ilmonen
et al. 1998). In today's network-type operating environment, well-functioning
relationships of cooperation are even more important than before.
In all the Baltic nations, a majority of the working people considered that they
could trust their work colleagues at least to some extent. In this regard, Estonia
and Latvia were very close to each other and their situation would appear to be
considerably better than that of Lithuania. In both Estonia and Latvia, about
two-thirds felt trust toward their colleagues; while in Lithuania, half thought
that way. At the same time in Lithuania, about one out of five working people
felt distrust; the rest (29%) were unable to answer the question or did not feel
trust any more than distrust.
The same topic was investigated in the previous working life barometer, too. It
is interesting to note that the situation has not improved in any of the countries
in the last few years. In Latvia, and particularly in Lithuania, trust relations at
the workplaces have definitely weakened; and in Estonia, the situation has not
changed one way or the other.

100%
50%
0%
-50%
72%
189
I CAN TRUST MY COLLEAGUES
LATVIA ESTONIA LITHUANIA
65% 67% 66%
62%
-7% -10% -9% -8% -6%
Somewhat agree Totally agree
-100%
'98 '02 '98 '02 '98 '02
Totally agree 44% 36% 32% 31% 21% 23%
52%
-19%
Totally disagree Somewhat disagree
Somewhat agree 28% 29% 35% 35% 41% 29%
Somewhat disagree -4% -6% -6% -5% -5% -14%
Totally disagree -3% -4% -3% -3% -1% -5%
More detailed country-specific analyses show that gender and sector have no
bearing on the trust situation in Estonia. Both the men and the women, in the
public as well as the private sector, have trust in their work colleagues to an
equal extent. Age has some degree of significance here. The youngest respondents
are more trusting than the others. As many as 72 % of the under-30s
trust their work colleagues, whilst the corresponding proportion in the age
groups older than this is 65 %.
In Latvia, the connection between age and trust is completely the opposite to
that in Estonia. Representatives of the oldest Latvian age group feel the most
trust and the least distrust toward their colleagues at work. At the same time,
the youngest respondents trust their colleagues the least. Of the over-50s, close
to half (45 %) have complete trust in their work colleagues, whereas only 29
% of the youngest believe correspondingly. At least some degree of trust is
experienced by 68 % of the ageing and 61 % of the young workers. The differences
between the groups are highlighted when the percentages feeling distrust
are investigated. Of the young people, 8 % distrust their colleagues to
some extent and a further 8 % distrust them completely. Only half as many of
the ageing workers have distrust. An analysis according to sector reveals that

190
public-sector workers are a little more trusting than private-sector personnel.
Gender has no significance in this case.
In Lithuania, there is the most trust of work colleagues among ageing publicsector
workers. It exists the least among young female private-sector workers
under 30 years of age. The gap between these groups is great. Of the ageing
workers in the public sector, two-thirds trust their colleagues and 13 % feel
distrust. Of the young women in the private sector, half have trust but as many
as 27 % do not trust their colleagues.
Linked to trust, or the lack of it, is solidarity or selfishness among those at the
workplace. Working people were presented with the following statement: "My
colleagues think only about themselves and their job, not considering the others."
The following graph shows their responses to the statement in both the
previous and the present survey.
100%
50%
0%
-50%
MY COLLEAGUES ARE SELF-CENTERED
26%
-46%
20%
16%
18%
-56% -55% -54%
Somewhat agree Totally agree
Totally disagree Somewhat disagree
22%
28%
-44% -43%
-100%
LATVIA ESTONIA LITHUANIA
'98 '02 '98 '02 '98 '02
Totally agree 14% 8% 6% 6% 7% 13%
Somewhat agree 12% 12% 10% 12% 15% 15%
Somewhat disagree -19% -26% -28% -29% -35% -23%
Totally disagree -27% -30% -27% -25% -9% -20%
It could be seen above how working people in Lithuania experienced a good
atmosphere and a feeling of solidarity at their workplaces clearly more seldom
than the others. The same phenomenon is apparent with regard to self-centredness,
too. It is clear that respondents there agree with the above-mentioned

191
provocative statement more often than in Estonia and Latvia. The work atmosphere
in Lithuania has deteriorated in recent years, relations of trust between
colleagues have weakened, and selfishness has increased. It can be concluded
from these facts that the problems in working life have increased, in
some measure at least. However, there is reason to bear in mind that what is
involved here is the direction of change. In other words, the situation is not
particularly bad in an absolute sense. Although 28 % of the Lithuanian working
people consider that relationships at the workplaces are marked by selfishness,
a noticeably greater percentage (43 %) hold the opposite view; and a significantly
large proportion (29 %) are unable to form an opinion on the matter.
In Latvia, self-centredness at the workplace has decreased in the last few
years; while in Estonia, no significant change has taken place in this aspect,
either. The women in Latvia experienced self-centredness at the workplace a
little more frequently than the men. In Estonia, however, it is not connected
with sector, gender or age.
WAGE EARNERS’ POSSIBILITIES OF EXPRESSING DISSAT-
ISFACTION WITH WORKING CONDITIONS
To conclude the chapter, we will take a look at wage earners' possibilities of
making suggestions on improvement of working conditions at their workplaces.
This subject was not enquired about in the previous barometer, so that
there is no data concerning any change in it. The possibility of influencing the
working conditions, or even of safely expressing any dissatisfaction with
them, plays its part in reflecting the state of the working environment. In a
good environment, if the need arises, a worker has a chance of talking about
problems connected with the working conditions without fear of awkward
consequences.
In all the Baltic countries, a majority of the wage earners felt that it was possible
to make complaints about working conditions at the workplace. There are,
nevertheless, significant differences between the countries. In this respect also,
the situation is substantially better in Estonia and Latvia than in Lithuania.
There would appear to be an especially positive situation in Estonia's private

192
sector, where nearly three-quarters of the wage earners consider it possible to
make complaints about their working conditions. The percentage who feel it
possible is in practice equally great in the Estonian and the Latvian public
sectors. In Latvia's private sector, it is a little smaller. The Lithuanian situation
in both the public and the private sector is, in this regard, clearly less favourable
than in the other two countries. In particular, the situation in Lithuania's
private sector can be seen as problematic, because only about half (52 %) of
the wage earners in the sector feel that complaints about working conditions
are possible. In none of the Baltic nations does this possibility depend on gender,
but rather it is at the same level for both men and women.
POSSIBILITIES TO MAKE STATEMENTS ABOUT DISSATISFACTION
CONCERNING WORKING CONDITIONS
100%
80%
60%
40%
20%
0%
73%
Private
sector
Wage earners only
ESTONIA LATVIA LITHUANIA
69%
Public
sector
72%
67%
All Private
sector
70%
Public
sector
68%
52%
All Private
sector
63%
Public
sector
58%
All

193
TELEWORK AND INFORMATION
TECHNOLOGY IN WORKING LIFE
This chapter will examine telework and the use of modern information technology
as part of one's job. In all the Baltic countries, a relatively clear division
into three groups is noticeable as regards the use of information technology
devices at work. A great majority do not, in practice, participate at all in
the use of data technology. A completely opposite group, consisting of 20 %
of the working population in Latvia and Estonia and 15 % in Lithuania, use
information technology devices almost constantly in their work. A third, relatively
small proportion fall into a group located in between the above-mentioned
extremes.
TELEWORK AND DOING ONE’S PRINCIPAL JOB AT HOME
The Baltic country where telework was most prevalent was Latvia, where it
was done by 15 % of the working population. In Lithuania, 12 % were teleworkers;
and in Estonia, 8 %. These percentages can be considered reasonably
high on the international scale (cf. e.g. Telework 2001, SIBIS 2002). There is,
however, reason to doubt whether there is such a large proportion of teleworkers
in Latvia, because as many as 16 % of those workers there who did not use
a computer or a mobile phone in their work, stated that they did telework. To
do telework, however, one or the other of these tools is most often required.
The percentage figure here for Latvia's teleworkers, therefore, can probably be
reckoned as an exaggeration. Some degree of misunderstanding may have
happened in the Latvian case 1 .
1 In Estonia, under 3 % of those working people who did not use a computer or a mobile phone
reported that they did telework. In Lithuania, only one such person answered this way. The fact that
Latvia's proportion is many times as great would therefore indicate a misunderstanding.

20%
15%
10%
5%
0%
15%
16%
194
THE PROPORTIONS OF TELEWORKERS
15%
14%
Question 908: Telework is work which is done away from the actual workplace. The essential characteristics of
teleworking are working arrangements which are independent of time and place. In principle, one can do telework
whenever and wherever one likes. Do you do telework in your main job?
9%
LATVIA LITHUANIA ESTONIA
12%
Men Women All
In Latvia and Estonia, there were no significant differences between men and
women in the prevalence of telework; in Lithuania, the men's proportion was
clearly higher than the women's. In none of the Baltic countries is the doing of
telework age-related, in other words roughly the same proportion of teleworkers
is to be found in each age group. Neither are there any significant differences
between the public and the private sector 2 in the incidence of telework
in any of the Baltic countries under study. In this respect, telework is the least
common in Estonia's public sector, and it is the most widespread in the Latvian
public sector. The noticeable differences between these neighbouring
countries as regards telework among public-sector wage earners is surprising.
In all three Baltic countries, a longer day is worked in the private sector than
in the public sector (see the chapter on Working Hours). This difference in
working hours between the sectors is seen also in the numbers of hours spent
doing telework. In all these countries, more hours of telework are done in the
private than the public sector. Although in Latvia telework is a little more
widespread among public-sector workers than in the private sector, the pri-
2 In Estonia, 9 % of the private-sector and 7 % of the public-sector personnel stated that they did
telework. In Latvia, 14 % in the private and 17 % in the public sector engaged in telework. In
Lithuania, 13 % of the private-sector workers and 11 % in the public sector were involved in it.
9%
7%
8%

195
vate-sector teleworkers clearly do a greater quantity of telework measured in
hours. In Latvia, a teleworker in the private sector does as many as 43 hours of
telework per month on average. In the public sector, the corresponding amount
is 20 hours. In Estonia and Lithuania, private-sector personnel do more telework,
both more commonly and in terms of hours, than the public-sector wage
earners.
Comparison of the countries reveals that in Lithuania the hours of telework
done are definitely fewer than in the other two Baltic countries. Teleworkers
in Latvia and Estonia do an average of 31 hours' telework per month; and in
Lithuania, 14 hours. The numbers of hours must be regarded with great reservation,
due to the small numbers of respondents.
Hours of telework per month (mean values among workers
doing telework)
LATVIA LITHUANIA ESTONIA
Private sector 43h 15h 34h
Public sector 20h 12h 24h
Total 31h
(N=62) 3
14h
(N=107)
DOING ONE’S PRINCIPAL JOB AT HOME
31h
(N=73)
The measuring of telework is awkward because the formulation of the questions
has a considerable effect on the response percentages. Partly for this reason,
the working people were also asked whether they did tasks at home in
connection with their principal job. A noticeably larger proportion stated that
they did work at home related to their main job than those who said that they
did telework. This was expected, as a main job done at home did not involve
the same kind of conditions linked with working arrangements as did telework.
The question for gauging such work done at home was as follows: Do
you sometimes do work at home which is connected with your principal job?
The responses of the Latvians, Estonians and Finns were very similar to each
other. In all these countries, over one-quarter of the working people do work at
3 The low total of respondents in Latvia is due to the large number of those who were unsure. Over
half (N=78) of the Latvians doing telework were unable to estimate how many hours of telework they
did. Naturally, therefore, they have been omitted from the table of working hours.

196
home in connection with their main job. Working solely at home, however, is
extremely rare. The Lithuanian data on this aspect are lacking due to a technical
error concerning the interviews. In Latvia and Estonia - as in Finland - of
those doing their job at least partly at home, slightly over half 4 were working
in the private sector.
LATVIA ESTONIA FINLAND
Works occasionally or partially at home 28 % 28 % 26 %
Works at home only 1 % 2 % 1 %
Does not work at home at all 68 % 70 % 73 %
Does not know 3 % 0 % 0 %
Total 100 %
(N=904)
100 %
(N=900)
100 %
(N=1297)
Doing paid work at home, whether it is telework by definition or not, has a
strong link with the person's position in the work organisation (cf. Pekkola
2002). In Latvia, over half of those in a managerial post and a little under half
of the specialists did at home some tasks connected with their main job.
Among the other personnel categories, the proportions were noticeably
smaller. The situation in Estonia is otherwise the same, but as many as twothirds
of the managers did work at home in connection with their principal job.
Those in the upper ranks of the personnel hierarchy have more autonomy in
choosing the place and time of doing their tasks than other workers have. The
work of managers and specialists is often of such a nature that it is possible to
do part of it outside the workplace. On the other hand it is also true, at least to
a certain extent, that tight schedules impose a rather large quantity of work,
and thus overtime. In this case, it remains for the worker to choose exactly
when and where the work is done. It can be assumed that the work carried
home is fairly often the uncompensated type of overtime work. In Latvia for
example, 29 % of those doing their main job partly at home said that they did
overtime without any compensation. Of those Latvians who did not work at
home, 16 % did uncompensated overtime. In all, uncompensated overtime was
done by 19 % of Latvia's working population.
4
In Latvia 55 %, in Estonia 57 % and in Finland 54 % of those doing their job at least partly at home
were working in the private sector.

197
MODERN SOCIETY – INFORMATION SOCIETY
Working at home is often linked to the utilisation of modern office technology,
computers and mobile phones. These tools enable the work to be done
elsewhere than at the workplace. Information and computer technologies have
led to profound changes in the organisation of work at micro level as well as
in labour markets at macro level over the last decades. The ability of individuals,
companies and government to adapt to these changes appears to largely
determine their success in the information society. This is being reflected by
EU policy making such as the eEurope initiative and the European Employment
Strategy, and has led to increasing demand for timely data on information
society related issues such as ICT-enabled new ways of working, telework,
work-related IT skills, employment in IT sectors and occupations, and
many more. (SIBIS 2002, 5).
This transition in progress world-wide is characterised by the information
technology ‘revolution’ and - by way of this - the spread of a new economy,
globalisation, and the rise of the so-called network society. (See e.g. Castells
1996). The boundaries of nation-states may remain as they are for the most
part, but their ability to confine within them - or prevent the access of - various
ideas, cultural influences, international competition, movements of capital etc.,
has become substantially weakened. (Beck 1999). The present day signifies in
many senses a ’death of distance’, an opening up of borders, and an ever
greater mutual separation of the concepts of time and place (see e.g. Bauman
2002, Giddens & Pierson 1998). These aspects have a strong impact on working
life, too. The transnationalisation of companies, the alteration of their
strategies to cover the world as widely as possible, and the change in their organisations
to be more network-oriented, mean a rather different operating
environment - to which people have become accustomed in recent decades in
the Baltic countries as elsewhere. It was not until the advent of modern information
technology, headed by the Internet and mobile phone technology, that
the change became possible. The ’death of distance’ mentioned above means
that back-and-forth communication between actors can take place at the same
time, independently of their physical distance from one another.
This societal upheaval is not treating all citizens in the same way. Some are
better placed than others in the ever-growing transition to a life that is organ-

198
ised by way of information networks. Information flowing via the Internet, for
example, excludes a greater part of the population. Digital literacy is becoming
increasingly important in order for an individual to be a fully competent
member of the modern information society. At the moment, the differences
between countries as regards utilisation of information networks are huge, but
the trend is the same everywhere: the importance of the networks is growing.
For instance Manuel Castells, who has done research on the development of
the information society, divides citizens into three groups: networkers, who
clearly benefit from the change; flextimers, who struggle under the pressures
of the change; and the jobless, who will often become eliminated from the societal
'competition'. Numerous other social scientists have also presented
similar assessments of the intensifying polarisation among citizens that is concomitant
with the spread of the information society. (See e.g. Lash 1995, Beck
1999, Blom, Melin & Pyöriä 2001).
”Society became divided, as it was for most of human history, between winners
and losers of the endless process of individualized, unequal bargaining.
But this time there were few rules about how to win and how to lose. Skills
were not enough, since the process of technological change accelerated its
pace, constantly superseding the definition of appropriate skills. Membership
of corporations, or even countries, ceased to have its privileges, because
stepped-up global competition kept redesigned the variable geometry of work
and markets. Never was labour more central to the process of value-making.
But never were the workers (regardless of their skills) more vulnerable to the
organisation, since they had become lean individuals, farmed out in a flexible
network whose whereabouts were unknown to the network itself.
Thus, on the surface, societies were/are becoming dualized, with a substantial
top and a substantial bottom growing at both ends of the occupational structure,
so shrinking the middle, at a pace and in a proportion that depend on
each country’s position in the international division of labour and on its political
climate. But down in the deep of the nascent social structure, a more
fundamental process has been triggered by informational work: the disaggregation
of labour, ushering in the network society.” (Castells 1996, 278-279).

199
USE OF INFORMATION TECHNOLOGY DEVICES
ON THE JOB
In connection with the discussion on the information society, working people
were asked about their use of different information technology devices in their
job and at the workplace. There were clear differences between the Baltic
countries regarding utilisation of information technology. Information technology
devices and the possibilities they opened up were used the most commonly
in Estonia, and the least in Lithuania.
In all the Baltic countries, a definite majority of the workplaces have computers
at their disposal. This does not, however, mean that the jobs of a majority
of the working people are changing into information work which uses information
technology. A little over one-third (35 %) of Estonia's working
population used a computer in their own job. In Latvia, somewhat fewer (31
%) used a computer in their work, but in Lithuania only less than one in four.
In Finland, the most representative data gauging the prevalence of information
technology are from 1997 5 . According to that, 60 % of Finnish wage earners
used a microcomputer in their own job. The difference between Finland and
the Baltic countries in this respect is therefore great.
5 Quality of Work Life Survey, Statistics Finland.

100%
80%
60%
40%
20%
0%
200
PERSONAL COMPUTER
35% 31% 23%
ESTONIA LATVIA LITHUANIA
Is personally used in one's own job
Exists at one's workplace (but not used personally)
Does not exist at one's workplace
One does not know about PC
It is noticeable in all the Baltic countries that over-50s get left out, or stay out,
when it comes to the utilisation of information technology. In Latvia and
Lithuania, only 17 % of the ageing workers (those over 50 years old) used a
computer in their job. The corresponding proportion in Estonia was 25 % - in
other words, clearly greater. Furthermore, in all the Baltic countries, there is a
considerable difference between the ageing workers and the younger age
groups. The use of a computer on the job in Lithuania decreases linearly as
age increases.
Another feature that the Baltic countries have in common relates to the difference
in microcomputer use between the genders. In all these nations, women
use a personal computer in their job considerably more often than men do. The
same phenomenon is observable in Finland, too, even though the percentages
using a computer in their work there are double those of the Baltic countries.

201
USE OF PERSONAL COMPUTER IN ONE'S OWN JOB BY AGE
100%
80%
60%
40%
20%
0%
41%
35%
25%
35%
Under 30 years 30-49 years 50+ years All
36%
34%
31%
30%
24% 23%
17% 17%
ESTONIA LATVIA LITHUANIA
USE OF PERSONAL COMPUTER IN ONE'S OWN JOB BY GENDER
100%
80%
60%
40%
20%
0%
39%
35%
32%
*Quality of Work Life Survey 1997, Statistics Finland
35%
31%
26%
27%
23%
20%
Men Women All
63%
60%
58%
ESTONIA LATVIA LITHUANIA FINLAND*
In addition to computer use, working people were also asked whether e-mail
was in use at the respondent's workplace and whether the respondent had the
possibility of browsing on the Internet. The order of the countries in these re-

202
spects is (naturally) the same as for the prevalence of computer use. Of the
Baltic nations, it is the Estonians who use both e-mail and the Internet in their
job the most. These tools are the least prevalent and used on the job the least
in Lithuania.
100%
80%
60%
40%
20%
0%
E-MAIL
24% 19% 14%
ESTONIA LATVIA LITHUANIA
Is personally used in one's own job
Exists at one's workplace (but not used personally)
Does not exist at one's workplace
One does not know about e-mail
In Estonia, about two out of three workplaces have e-mail and an Internet connection
at their disposal. However, only less than half the personnel at these
workplaces use either of these tools in their own job. In Latvia and Lithuania,
about half of the workplaces have e-mail and an Internet connection, but only
a minority of the staff at the workplaces in question use these in their job.

100%
80%
60%
40%
20%
0%
100%
80%
60%
40%
20%
0%
203
INTERNET / INTRANET
28% 19% 16%
ESTONIA LATVIA LITHUANIA
Is personally used in one's own job
Exists at one's workplace (but not used personally)
Does not exist at one's workplace
One does not know about internet
CELLULAR (MOBILE) TELEPHONE
43% 35% 31%
ESTONIA LATVIA LITHUANIA
Is personally used in one's own job
Exists at one's workplace (but not used personally)
Does not exist at one's workplace
One does not know about cellular telephone
The use of a mobile telephone on the job is considerably more common than
the use of a computer. Around two-thirds of the workplaces have mobile
phones at their disposal. The percentage is roughly the same in all three coun-

204
tries. Under half (43 %) of all the working people in Estonia used a mobile
phone in their work. In Latvia a little over one-third (35 %) did so; and in
Lithuania slightly fewer than one-third (31 %).
The profile of the mobile phone users differs from that of the computer users.
The mobile phones are specifically men's tools, whereas the women use computers
more commonly than men do. This phenomenon is the same in all the
Baltic countries. In Estonia, more than half of the men said they used a mobile
phone in their work; one-third of the women answered the same. In Latvia and
Lithuania, the men used mobile phones a little more seldom than in Estonia,
but the differences between the men and the women in this respect were just as
clear. For instance, in Lithuania 41 % of the men used a mobile phone in their
job, while the corresponding proportion for the women was only half as great
(21 %).
USE OF CELLULAR TELEPHONE IN ONE'S OWN JOB BY GENDER
100%
80%
60%
40%
20%
0%
54%
33%
43%
44%
27%
ESTONIA LATVIA LITHUANIA
35%
Men Women All
The use of a mobile phone as a tool on the job is, like the use of a computer,
definitely less common among ageing workers (over 50s) than in the younger
age groups. The older workers may face great difficulties in adapting and
problems in staying in the labour markets, if the fact that they clearly utilise
modern information technology less than other age groups is linked to a re-
41%
21%
31%

205
luctance to learn the use of new machines and new ways of working. On the
other hand, it is also possible that aged workers are not even offered an opportunity
to learn about and use new technical devices as often as the under-
50s are. More detailed research is called for on this subject. The scope of this
study does not allow a thorough examination of the reasons why the ageing
workers use information technology less than the others.
USE OF CELLULAR TELEPHONE IN ONE'S OWN JOB BY AGE
100%
80%
60%
40%
20%
0%
48%
44%
34%
43%
Under 30 years 30-49 years 50+ years All
38% 39%
21%
35%
35%
31% 31%
27%
ESTONIA LATVIA LITHUANIA
A majority of the ageing workers (over 50 years old) in all the Baltic countries
do not use either a computer or a mobile phone in their job. Among the over-
50s in Latvia, a total of more than two-thirds (69 %) used neither of these in
their work. The corresponding proportion of ageing workers in Lithuania was
65 %, and in Estonia 57 %. These percentages are markedly higher than for
the younger age groups. In Estonia and Latvia, the greater part of the working
people under 50 have some kind of competence in information technology, in
other words a majority use a computer or/and a mobile phone on the job. In
Lithuania - where there is less use of information technology devices as tools
than in other Baltic countries - a majority in the younger age groups, too,
number among those who do not use either a computer or a mobile phone in
their work, the proportions being 55 % of the under-30s and 59 % of the 30-49
year olds.

206
The ageing workers, therefore, use information technology devices less commonly
than the younger ones, but also less in terms of time. A survey including
only those working people who utilise a computer or/and a mobile phone
in their job, shows that the ageing workers spend less time using these devices
than the younger ones do. In other words, the ageing ones make altogether less
use of information technology than do the younger, in both an extensive and
an intensive sense. In all the Baltic countries the percentage who use information
technology practically all the time in their work is tied to age. The
younger the age group 6 in question, the greater the percentage who work all
the time using modern information technology, and vice versa.
In Latvia and Estonia, a slight majority of those who use a computer or mobile
phone on the job (54 % and 53 %) use them during at least half of their working
hours. The corresponding proportion in Lithuania is a little under half (47
%). Those using these devices continually in their work constitute in Latvia
almost one-third (30 %), and in Estonia and Lithuania about one-quarter (26 %
and 27 %), of those working people whose job involves making some use of
either or both devices.
6 A survey of only those working people who use a computer or/and a mobile phone in their work
reveals the following. In Estonia, 28 % of the under-30s, 26 % of the 30-49 year olds, and 24 % of
those aged 50 years and over said that they used information technology devices in their job
practically all the time. In Latvia, the proportions were 36 % of the under-30s, 29 % of the 30-49 year
olds and 22 % of those 50 years and over. In Lithuania, the proportions were as follows: 33 % of the
under-30s, 27 % of the 30-49 year olds and 19 % of those aged 50 and over.

207
WORKING TIME SPENT USING COMPUTER / CELLULAR PHONE BY AGE
100%
80%
60%
40%
20%
0%
Under
30y.
Only respondents who use computer and/or cellular phone in job
ESTONIA LATVIA LITHUANIA
30-49y. 50+y. All Under
30y.
30-49y. 50+y. All Under
30y.
All the time 3/4 Half of the time Less Do not know
DIVISION INTO THREE GROUPS
30-49y. 50+y. All
Working people in all the Baltic countries can be divided into three groups
according to utilisation of information technology devices: 1) Those who use
information technology almost continually, i.e. the so-called information
workers. One-fifth of the Estonians and Latvians, and 15 % of the Lithuanians,
belong to this group. These are typically youngish people, and for them the
computers and mobile phones are primary working tools. 2) Those who use
information technology actively as an aid. These persons use it during a quarter
to a half of their working hours - that is, when necessary, they are always
able to make use of information technology devices and the possibilities they
offer. This group comprises 15 % of the Estonians, 12 % of the Latvians and
11 % of the Lithuanians. 3) Those who remain outside the realm of information
technology or who use it only a little. A clear majority of the working
population in all the Baltic nations belong to this group (65 % in Estonia, 68 %
in Latvia and 74 % in Lithuania). The members of this group are typically
older than those of the two previous groups. An easy future in the labour markets
cannot be predicted for them, since the pressures toward utilisation of

208
information technology are growing continually. The average (median) ages of
the three groups are shown in the following table.
Use of information technology on the job, and
median ages of the groups
Those using information technology
during all - or a greater part -
of their working hours
Those using information technology
actively as an aid (during half
to a quarter of their working
hours)
Those using information technology
either a little or not at all
100%
80%
60%
40%
20%
ESTONIA LATVIA LITHUANIA
38 y. 35 y. 37 y.
38 y. 36 y. 39 y.
42 y. 41 y. 41 y.
USE OF INFORMATION TECHNOLOGY IN ONE'S OWN JOB
0%
ESTONIA LATVIA LITHUANIA
All or most of the time Half or quarter of the time Less than quarter of the time
(including non-users)

209
JOB-RELATED TRAINING
Raising the qualification level of the labour force is generally considered to be
important. It has been said that flexible production and innovation presuppose
not only a mastery of particular working steps, but also an ability of companies
and thus working people to master the requirements brought by changes
in one's operating environment (see Kasvio 1994, Julkunen 2000, Antila &
Ylöstalo 2002). Job-related training is believed to improve competence in
these aspects and to yield benefit to the employer in the form of increased or
updated know-how of individual employees.
The application of knowledge is regarded as increasingly important in the production
of contemporary and increasingly specialised goods and services. It is
seen as being vital for the maintenance of competitive advantage in manufacturing
industries, since goods and products acquire a higher design and technology
content and since processes demand continuous improvement
(Womack & Jones & Roos 1990, Schnabel & Webster 1999). In service sectors,
a growing emphasis on innovation and on improved responsiveness to
customer demand is equally creating pressure for processes and products with
a greater ‘knowledge-content’ (Hauknes & Miles 1996). Training is aimed at
augmenting a worker's explicit knowledge.
In all the Baltic countries, a minority of the working people had participated in
a job-related training session or course during the year prior to the survey.
About one in four (26 %) of the working people in Estonia and over one-fifth
(22 %) in Latvia and Lithuania had attended training paid for either fully or
partly by the employer. The difference compared with Finland is great, because
nearly half (46 %) of that country's working people had participated in
such training. In all four countries, more women than men attend employerpaid
training. The length of the training, on the other hand, has no link with
gender. In all the countries, training paid by the employer is typically quite
short in duration - that is, a few days per year.

210
PARTICIPATED IN TRAINING PAID BY EMPLOYER
ESTONIA
Men
Women
All
LATVIA
Men
Women
All
LITHUANIA
Men
Women
All
Within the last 12 months
20%
32%
26%
19%
25%
22%
17%
28%
22%
FINLAND
Men
43%
Women
50%
All
46%
0% 20% 40% 60% 80% 100%
Average length of training
(days, median)
ESTONIA LATVIA LITHUANIA FINLAND
Men 5 6 7 5
Women 5 7 7 4
Total 5 7 7 4
The training is cumulative in nature - in other words, those already more educated
receive additional training more frequently than those with less education.
In all the Baltic countries, as also in Finland, the women are better educated
on average than the men; and partly for that very reason, employer-paid
further training is given to them more often than to male workers. Educational
background does not, however, entirely explain the differences between men
and women as regards participation in such training, since there are similar
differences also within the category of highly educated persons - that is, the
well-educated women participate in training more generally than the well-educated
men.
The public-sector wage earners in all the Baltic countries have been in employer-paid
training more frequently than private-sector personnel. This is due
at least partly to the cumulative nature of the training. The workers in the pub-

211
lic sector are, on average, better educated than those in the private sector. Indeed,
those who have received further training most commonly of all are
highly educated female workers in the public sector 1 . The duration of the
training does not vary significantly according to the sector: in both the public
and the private sector, the additional training offered is typically quite short in
length.
PARTICIPATED IN TRAINING PAID BY EMPLOYER
ESTONIA
Private sector
Public sector
LATVIA
Private sector
Public sector
LITHUANIA
Private sector
Public sector
Within the last 12 months
11%
15%
20%
Private and public sector
33%
38%
37%
FINLAND
Private sector
41%
Public sector
59%
0% 20% 40% 60% 80% 100%
Average length of training, by sector
(days, median)
ESTONIA LATVIA LITHUANIA FINLAND
Private sector 4 8 7 4
Public sector 6 7 7 4
Total 5 7 7 4
A study of employer-paid training in relation to age shows that in Estonia and
Latvia the ageing workers, i.e. those of 50 years and over, have remained
without training considerably more often than those who are younger. Some
degree of age discrimination may be involved. In Lithuania, by contrast, age
has no significant connection with the training offered by the workplace. The
1 Of highly educated female public-sector workers, 54 % in Lithuania, 51 % in Latvia and 50 % in
Estonia had participated in training during the year previous to the survey.

212
problem category in Finland are the youngest wage earners. Their chances of
access to training are substantially poorer than those of their elders. It is possible,
moreover, that the younger workers do not have as much need for further
training as older ones do. Whatever the reasons, it is clear that Finland differs
markedly from the Baltic countries in respect of workplace training.
PARTICIPATED IN TRAINING (BY AGE)
Within the last 12 months
ESTONIA
under 30 y.
28%
30-49 years
29%
50+ years
LATVIA
20%
under 30 y.
23%
30-49 years
25%
50+ years
LITHUANIA
16%
under 30 y.
24%
30-49 years
22%
50+ years
FINLAND
21%
under 30 y.
33%
30-49 years
51%
50+ years
47%
0% 20% 40% 60% 80% 100%
Average length of training, by age
(days, median)
ESTONIA LATVIA LITHUANIA FINLAND
Under 30 years 5 7 7 5
30-49 years 5 7 7 4
50+ years 5 7 7 4
Total 5 7 7 4
When those who have participated in training are analysed according to age
group, it is evident that age has no bearing on the length of the training in any
of the countries. If training is attended, its duration is typically a few days per
year.
Since all the nations under study have a lot of wage earners in fixed-term employment
relationships, the possibilities for fixed-term workers to attend

213
training paid for by the employer were examined in comparison with those for
permanent employees. The graph shows clearly how the fixed-term employees
remain without employer-paid training considerably more often than the permanent
ones. This phenomenon is the same in all the countries. As can be expected,
workers on temporary assignments have the least training opportunities
of all. They are often hired to help with occasional needs, so that the employers
are not willing to invest in them any more than necessary. Some employees
of this type are even in illegal job relationships; in all the Baltic countries,
the law requires a written employment contract.
PARTICIPATED IN TRAINING (BY EMPLOYMENT RELATIONSHIP)
Within the last 12 months
ESTONIA
permanent
29%
fixed-term
26%
other*
LATVIA
12%
permanent
26%
fixed-term
20%
other*
LITHUANIA
16%
permanent
28%
fixed-term
20%
other*
FINLAND
10%
permanent
50%
fixed-term
28%
0% 20% 40% 60% 80% 100%
*other means a written contract for doing a specific work or no written labour agreement

214
DEVELOPMENT OF WORK ORGANISATIONS
This chapter will discuss work organisation activities and changes occurring in
them. Working people were asked, among other things, about teamwork and
changes in workplace organisation. They were also asked about different development
projects at the workplace. The motivation for this topic arises because
so many studies emphasise that the ways of working and choices made
within the workplaces are very important for their competitiveness. (Cf. Antila
& Ylöstalo 2002, Womack et al. 1990, Appelbaum et al. 2000, Arnal et al.
2001, Flexibility Matters 1999).
Companies, or more generally workplaces, are not ’black boxes’ whose operational
efficiency or quality are defined mechanically according to quantitative
or qualitative investments that they make in various production factors
(e.g. purchase of new machines or equipment, or personnel training). The
process by which the investments are transformed into a yield such as products
or services, can be implemented in many alternative ways. Factors like process
control mechanisms, forms of working, management methods, or interactive
relationships within and between companies, have key significance in determining
how the companies are able to make use of the production factors at
their disposal (Alasoini 2000).
The following graph examines the incidence of several aspects connected with
the everyday activities of work organisations in the Baltic countries and in
Finland. The graph shows that group work or teamwork has gained very great
popularity. Of the Finnish working people, as many as three-quarters said that
at their workplace, work was done in teams. This proportion is larger than in
any of the Baltic countries. Also in these, however, teamwork is usual nowadays.
In Latvia, two out of three working people stated that work was done in
teams at their workplace. Slightly more than half in Lithuania, and half in Estonia,
answered that way.
In Lithuania, teamwork takes place considerably more often in the public than
in the private sector. In Latvia and Estonia, the situation is the opposite - that
is, teamwork is more common in the private sector; in actual fact, the differ-

215
ences between the sectors in both these countries (Latvia and Estonia) in the
generality of teamwork are small. 1
Work is done in teams
Smaller work units
have been established
(within 12 months)
ORGANISATIONAL CHANGES AT WORKPLACES
Work units have
been enlarged
(within 12 months)
Outsourcing has
been increased
7%
13%
13%
13%
12%
13%
10%
10%
11%
11%
17%
22%
*In Finland the question of teamworking is divided into two parts: 33.5% of employees said work was usually done in
teams and 41.7% said it was partly done in teams.
49%
0% 20% 40% 60% 80% 100%
54%
65%
75%
Estonia
Latvia
Lithuania
Finland
Working people were also asked about organisational changes. In all the Baltic
countries, and in Finland, too, a minority of the workers had seen work units at
their workplace being chopped up into smaller work units or enlarged into
bigger ones during the year preceding the survey. Also the increase in outsourcing
- the selling to an outside company of tasks previously done by a
company's own personnel - has been rather limited within the one-year period.
Outsourcing has been more typical of Finland than the Baltic countries.
DEVELOPMENT ACTIVITY
The dynamism and reflectivity of work organisations can be measured appropriately
by how much initiative is taken by the personnel. The doer of a job
often sees the problems and possible points for improvement in his/her own
work, but the possibility of drawing attention to them and making proposals
for improvement is not self-evident. In order for people's views to be made use
1 In Latvia, 65 % of the working people in the private sector and 64 % in the public sector said that
teamwork was done at their workplace. In Estonia, the corresponding proportions were 50 % (private)
and 46 % (public); and in Lithuania, 49 % (private) and 60 % (public sector).

216
of, room and opportunities should be created at the workplace for making improvement
suggestions. This is often tied up with the organisational culture.
Even small suggestions for improvement can be understood as innovations.
Because the innovation process is always a social process, the attitude of the
management toward the suggestions of its personnel plays a very important
role (Forssen 2002).
In Latvia, Estonia and Finland, a little over half of the working people had
made one or more suggestions during the year prior to the survey, with the aim
of improving working conditions, working methods or the quality of services.
In Lithuania, the corresponding proportion was definitely smaller (42 %). In
all the countries, a majority of those who had made suggestions had made
more than one during that one-year period.
INITIATIVES CONCERNING IMPROVEMENT OF WORKING
CONDITIONS, WORKING METHODS OR THE QUALITY OF SERVICES
100%
80%
60%
40%
20%
0%
56%
Within the last 12 months
54%
42%
Several times
Once
55%
LATVIA ESTONIA LITHUANIA FINLAND
When initiative is examined according to sector, it comes to light that in Estonia
and Latvia, suggestions for improvement have, in practice, been made just
as commonly in the public and private sectors. The Lithuanian situation in this
respect is very different. There, such initiatives have been considerably more
numerous and widespread in the public than in the private sector. Lithuania's
private sector is problematic according to measurement by many different in-

217
dicators. Also the low level of initiative among personnel in this sector 2 tells
of special problems in it. The fact that there are few development suggestions
does not always mean that there is no need for improvement.
Lithuania also differs from the other two Baltic countries as regards the activity
of different-aged personnel in the above-mentioned development initiatives.
The older the age-group studied, the fewer suggestions for improvement
have been made in Lithuania. The activity in this regard has not been at a peak
level even among the youngest, but it decreases still further with age. In Estonia
and Latvia, no corresponding linear relationship between age and development
initiative activity is discernible.
The making of improvement suggestions, in all the countries, is strongly
linked to the educational background of those concerned. The higher the level
of education, the more actively suggestions are made aimed at improving the
working conditions or the quality of a product/service; and vice versa. In all
the Baltic nations, a minority (43 % in Latvia, 40 % in Estonia and 23 % in
Lithuania) of those working people who had only a basic education had shown
initiative; whereas a clear majority (67 % in Estonia, 66 % in Latvia and 63 %
in Lithuania) of those with higher education had made one or more suggestions
during the year preceding the survey. Only in the case of higher education
did Lithuania not differ significantly from the other Baltic countries. At
lower educational levels, by contrast, it is conspicuous how working people in
Lithuania clearly made fewer improvement-aimed suggestions than those in
Latvia and Estonia. It can be concluded that the ”bottom-up” type of thinking
and information flow does not work properly in Lithuania.
There has clearly been more of a tendency in Lithuania than in the other Baltic
countries to take a ”top-down” approach to development activities, and evidently
it is done fairly often without consulting the workers. Noticeably often,
a consultant has been hired for the workplace or some other similar project has
2 Of those working in the Lithuanian private sector, 11 % had made one and 25 % more than one suggestion
during the past year. Of those in the public sector, 17 % had made one and 33 % more than
one suggestion during the same time span. In the Latvian private sector, 19 % had made one and 36 %
more than one suggestion; the corresponding figures in the public sector were 17 % and 40 %. Of
Estonia's private-sector workers, 15 % had made one suggestion and 39 % more than one during the
previous year. The corresponding proportions for Estonia's public sector were 17 % and 36 %.

218
been set up, with the aim of planning the proposals for improving products,
services or productivity.
CONSULTANT-DRIVEN PROGRAMMES OR PROJECTS AIMED AT
IMPROVING PRODUCTIVITY OR THE QUALITY OF SERVICES/PRODUCTS
100%
80%
60%
40%
20%
0%
32%
Within the last 12 months
29%
38%
42%
LATVIA ESTONIA LITHUANIA FINLAND
By combining the information from the above two graphs, we can find out
how commonly workplace development measures have been carried out in the
Baltic nations on the initiative of the staff or/and the management. In all the
countries, over half of the working people stated that something of that sort
had been done during the year previous to the survey. In Latvia and Estonia,
nearly two-thirds (63 % in Latvia and 62 % in Estonia) said either that they
had made suggestions themselves or else that the management had established
some kind of development project at their workplace. In Lithuania, 57 % responded
similarly.
The working people were also asked in a little more detail about the aspects
being developed. Most often, the development activities have been connected
with the introduction of technical equipment. Also new ways of working have
often been a reason for engaging in development activities. Slightly more seldom
than these, the measures have been concerned with the launching of
completely new products.

219
DEVELOPMENT ACTIVITIES AT WORKPLACES CONCERNING...
...new products
...new ways of working
New technical equipment
has been taken into use
Within the last 12 months
31%
31%
33%
37%
37%
41%
42%
46%
46%
Estonia
Latvia
Lithuania
0% 20% 40% 60% 80% 100%

220
PART THREE
CURRENT TRENDS
AND
FUTURE EXPECTATIONS

221
This chapter will first discuss working people's assessments of trends in several
dimensions of working life in January-February 2002. The workers are
aware of their working conditions through their own experiences, and changes
in particular are noticed very easily. Is the direction of change good or bad, or
is the situation staying the same as before? Subjective estimates of the trends
have proved especially sensitive 'barometers' for forecasting changes imminent
in the near future. The directions of change were also evaluated in the
barometer study of three years ago, and so now the situations prevailing at the
different times can be compared.
In addition to current changes, the Estonians, Latvians and Lithuanians have
assessed how the economic situation at their own workplace, as well as the
employment situation in the whole country, will develop during the next 12
months. These expectations can be compared with those of three years ago,
and then it will be possible to compare whether the atmosphere at the workplaces
has changed and in what direction.
IN WHAT DIRECTION IS WORKING LIFE
CHANGING?
It is very usual to discuss changes in working life. One often hears opinions
being expressed on how working is becoming more - or less - meaningful than
before. Various viewpoints are put forward about ease of obtaining information
at the workplaces. It is asked: what has happened to empowerment? The
following chapter presents evaluations of the trends in altogether seven aspects
connected with everyday life at the workplace at the time of the interview.
Things can be changing for the better or for the worse. The third possible alternative
– that things have stayed the same as before – has been left out of the
graphs below, because they show the so-called balance values. These have
been obtained by taking the percentage who assess the trend as being for the
better, and subtracting from it the percentage who hold the opposite view. If
everyone were of the opinion that the changes were going in a better direction
than earlier, then the balance value would be +100. If all assessed the trend as
being for the worse, the balance value would be –100.

222
WORKING LIFE TRENDS IN ESTONIA, LATVIA, LITHUANIA,
ST. PETERSBURG (1996) AND FINLAND
Balances*
Meaningfulness
of working
Self-development
Management method
Environmental issues
Empowerment
in own job
Information
on work aims
Gender equality
-30%
*
St. Petersburg 1996
-20%
-10%
Lithuania 2002
Estonia 2002
Latvia 2002
0% 10% 20% 30% 40% 50% 60% 70%
Balance = better direction (%-units) minus worse direction (%-units)
Finland 2002
For comparison, this graph includes data for St. Petersburg from 1996 and for
Finland from autumn 2002. These show that the differences between countries
can be really large. All the trend assessments for the Baltic nations clearly
come closer to those for Finland than to those for St. Petersburg, which differ
very greatly from the other countries under comparison. Only where meaningfulness
of working was concerned were the views of the Finnish wage earners
close to the views of those from St. Petersburg. In this aspect, there is a big
gap between them and all three Baltic countries.
The greatest difference between Finland and the Baltic countries concerns the
evaluation of changes in environmental issues and, on the other hand, in the
meaningfulness of working. Views on the way environmental questions are
handled at the workplace are considerably more positive in Finland than in
Lithuania, Latvia or also Estonia. A third difference that emerges between
Finland and the Baltic countries is that more wage earners in Finland regard
the change in gender equality as positive.
When the Baltic countries are compared with each other, it is seen that the
Lithuanian wage earners take a somewhat more negative view of current
changes in working life than do the Estonians and Latvians. The differences
are large in the case of self-development, management methods, environ-

223
mental issues and empowerment. The difference as regards getting information
on workplace aims, also tends clearly in the same direction. By contrast,
the gap between the countries in the evaluation of gender equality trends is
small.
50%
0%
-50%
CHANGE IN MEANINGFULNESS OF WORKING
IN FINLAND, ESTONIA, LATVIA AND LITHUANIA 2002
19%
-30%
53%
-15%
54%
-9%
49%
-13%
Working has become more meaningful
Working has become less meaningful
FINLAND ESTONIA LATVIA LITHUANIA
There is no very great difference in trend assessment between Estonia and
Latvia. The weight falls on somewhat different aspects in Estonia than in Latvia.
The trend in meanfulness of working has been evaluated more positively
in Latvia than in Estonia and Lithuania. In the opinion of Estonia's wage earners,
the changes in environmental issues there have been more favourable than
in Latvia. The development in empowerment, on the other hand, has been
slower in Estonia than in Latvia.
Although there are definite differences in emphasis between the Baltic countries,
they all share in common the fact that developments in the meaningfulness
of working have been regarded the most favourably, and those in gender
equality with the most misgiving. Although the trend in gender equality is
viewed the most critically of all, it has been positive compared with 1998 in
all three nations, as the following graph illustrates.

224
HOW HAVE ASSESSMENTS OF WORKING LIFE TRENDS CHANGED
BETWEEN 1998 AND 2002?
Meaningfulness
of working
Selfdevelopment
Management
method
Environmental
issues
Empowerment
in own job
Information
on work aims
Gender
equality
Estonia
Latvia
Lithuania
-15% -10% -5% 0% 5% 10% 15% 20%
Meaningfulness Self- Management Environmental Empowerment Information Gender
Difference in 2002 compared of working development method issues in own job on work aims equality
with 1998 Estonia 1% 6% 5% 11% 7% 8% 13%
Latvia -1% -2% -2% 6% -2% 2% 6%
Lithuania -10% -6% -4% -5% -5% -1% 19%
When we look only at how the wage earners' opinions have changed over the
three-year period, rather large differences can be observed between Estonia,
Latvia and Lithuania. In Estonia, there has clearly been a greater increase in
the proportion of positive trend expectations during the three years than in the
other two nations: the attitude towards all the aspects under evaluation has
been more favourable than before. The situation in Lithuania has been the opposite:
with the exception of gender equality, all the assessments in 2002 were
more negative than three years earlier. Latvia comes in between these two
countries.
COMPARISON OF TREND ASSESSMENTS IN
1998 AND 2002 BY COUNTRIES
ESTONIA
The Estonian evaluations of working life trends are clearly more favourable
now in comparison with 1998. It is interesting to note that at both times, the
same aspects are weighted positively and negatively; and, despite the change,
the ranking order of the aspects assessed has remained the same.

225
TRENDS IN ESTONIAN WORKING LIFE 1998 AND 2002
Meaningfulness
of working
Selfdevelopment
Management
method
Environmental
issues
Empowerment
in own job
Information
on work aims
Estonia 1998
Estonia 2002
Gender
equality-10% 0% 10% 20% 30% 40%
Balance = better direction - worse direction (%-units)
The factor that has, in the workers' view, been changing the most definitely in
a positive direction in both 1998 and 2002 is the meaningfulness of working,
the desire to work. In second place in both years has been self-development.
On the other hand, the most doubt has been expressed regarding development
of gender equality and empowerment. The trend assessments tell what those at
a workplace feel about the changes at the time of the interview. Although an
indicator of this kind has proved a very sensitive predictor of imminent
changes, it is important to note that what is involved here is indeed an evaluation
of changes. It is not possible to say, on the basis of the question asked,
whether the situation in 2002 as regards management methods, for instance, is
better than for equality issues.
When the assessments made three years apart are compared, the aspects that
have changed the most in a positive direction are gender equality and environmental
issues at the workplace. The evaluation of the trend in meaningfulness
of working has changed the least in three years; but that, too, has been a
little more favourable than before, as have all the other trend assessments. On
the whole, the Estonians took a definitely more optimistic view of working life
trends in 2002 than three years earlier.

MEN AND WOMEN
226
The changes taking place between 1998 and 2002 have been a little different
for men and for women. In 1998, the men's and women's opinions on the
changes in working life were pretty similar. The differences in views between
the genders had grown slightly by 2002, however. The following is a summary
of the most significant changes.
MEN
Greatest changes 1998 – 2002: equality between the genders (+20), environmental
issues at the workplace (+16) and getting information on workplace aims (+8)
Most positive in 2002: meaningfulness of working and environmental issues.
Most negative in 2002: equality and empowerment.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN ESTONIAN WORKING LIFE
MEN 1998 AND 2002
Men 1998
Men 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/men 2% 20% 16% 8% 4% 0% 4%
Balance = better direction - worse direction (%-units)
WOMEN
Greatest changes
1998 – 2002: empowerment (+11), opportunities for self-development (+11) and
getting information on workplace aims (+9) Most positive in 2002: meaningfulness
of working and self-development
Most negative in 2002: equality and empowerment .

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
227
TRENDS IN ESTONIAN WORKING LIFE
WOMEN 1998 AND 2002
Women 1998
Women 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/men 2% 20% 16% 8% 4% 0% 4%
Balance = better direction - worse direction (%-units)
DIFFERENT AGE GROUPS
The gaps between the different age groups are great: on the whole, the
younger the respondent, the more positive the response. The attitude of the
oldest age group to the trends in working life has changed a great deal in three
years.
UNDER 30 YEARS
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN ESTONIAN WORKING LIFE
AGE UNDER 30 YEARS 1998 AND 2002
Age
Under 30 1998
Under 30 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change under 30 7% -9% 10% 0% 7% -4% -6%
Balance=to better direction - to worse direction (%-units)

228
Greatest changes 1998 – 2002:
Environmental issues at the workplace (+10), gender equality (-9), meaningfulness
of working (+7) and management method (+7)
Most positive in 2002:
meaningfulness and environmental issues.
Most negative in 2002: equality and empowerment.
30-49 YEARS
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN ESTONIAN WORKING LIFE
AGE 30-49 YEARS 1998 AND 2002
30-49years1998
30-49 years 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change 30-49 -4% 12% 6% 9% 6% -6% 18%
Balance=better direction - worse direction (%)
Greatest changes 1998 – 2002: empowerment (+18), equality (+12), getting information
on workplace aims (+9) and self-development opportunities(-6).
Most positive in 2002: meaningfulness of working and getting information on aims.
Most negative in 2002: equality and empowerment.
50 YEARS AND OVER
Greatest changes
1998 – 2002. self-development opportunities (-20), equality (+18), empowerment
(+18) and getting information on workplace aims (+17).
Most positive in 2002: meaningfulness of working and environmental issues.
Most negative in 2002: self-development.

Meaningfulness
of working
Gender
equality
Environmental
issues
Information
on work aims
Management
method
Selfdevelopment
Empowerment
229
TRENDS IN ESTONIAN WORKING LIFE
AGE 50 YEARS AND OVER 1998 AND 2002
50 + 1998
50+ 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaningfulness Gender Environmental Information Management Self- Empowerment
of working equality issueson
work aims method development
Change 50+ 9% 18% 13% 17% 15% -20% 18%
Balance=better direction - worse direction (%-units)
ESTONIAN NATIONALS AND OTHERS
It is clear that those of Estonian nationality currently regard the changes in
working life more positively than the others. The gap has definitely increased
during the three years.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN ESTONIAN WORKING LIFE
ESTONIAN NATIONALS 1998 AND 2002
Estonian 1998
Estonian 2002
-10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Estonian -1% 19% 10% 11% 9% 5% 9%
Balance=better direction - worse direction (%-units)

230
TRENDS IN ESTONIAN WORKING LIFE
NATIONALITIES OTHER THAN ESTONIAN 1998 AND 2002
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Other 6% 1% 8% 2% -3% 8% 2%
Balance= better direction - worse direction (%-units)
Nationalities other than Estonian 1998
Nationalities other than Estonian 2002
In the opinion of Estonian nationals, the aspects that have changed the most in
a positive direction are as follows: gender equality, getting information on
workplace aims, and handling of environmental issues. The trend evaluations
of those having a nationality other than Estonian have changed very little in
three years.
PRIVATE AND PUBLIC SECTOR
In 1998, the private-sector workers clearly viewed the trends in working life
more favourably than did those in the public sector. In three years the situation
has evened out, since the positive assessments have increased more commonly
in the public than in the private sector.

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
231
TRENDS IN ESTONIAN WORKING LIFE
PRIVATE SECTOR 1998 AND 2002
Private 1998
Private 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Private 4% 14% 11% 13% 10% 8% 15%
Balance=better direction - worse direction (%-units)
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN ESTONIAN WORKING LIFE
PUBLIC SECTOR 1998 AND 2002
Public1998
Public 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Public -2% 11% 10% 2% -1% 1% -6%
Balance=better direction - worse direction (%-units)

LATVIA
232
The attitudes of the Latvians in 1998 towards the current trends in working life
were clearly more positive than those of the Estonians and Lithuanians.
TRENDS IN LATVIAN WORKING LIFE 1998 AND 2002
Meaningfulness
of working
Selfdevelopment
Management
method
Environmental
issues
Empowerment
in own job
Information
on work aims
Latvia 1998
Gender
Latvia 2002
equality-10% 0% 10% 20% 30% 40% 50%
Balance=better direction - worse direction (%-units)
In 2002, the gap between Estonia and Latvia had narrowed. This is because
the Estonian wage earners' evaluations are more favourable than before, while
those of the Latvians have stayed almost the same. It is characteristic of Latvia
that the assessments of working life trends have remained surprisingly similar
to those of three years ago.
The only definite change in Latvia compared with 1998 is in the handling of
environmental issues, whose evaluation has now clearly been positive more
often than before. In other aspects, the changes are small. Though the changes
in Latvia between 1998 and 2001 have not been very great, the summaries
compiled below show - as for Estonia - how the changes apply in the case of
various wage earner segments.

MEN AND WOMEN
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
233
TRENDS IN LATVIAN WORKING LIFE
MEN 1998 AND 2002
Men 1998
Men 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/men 3% 4% 2% -5% -4% -4% -4%
Balance=better direction - worse direction (%-units)
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
WOMEN 1998 AND 2002
Women 1998
Women 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/women -5% 7% 9% 9% 3% 0% -2%
Balance = better direction - worse direction (%-units)
In Latvia, both men's and women's attitudes toward working life trends have
changed very little in three years. According to the men's responses, few of the
aspects have seen any greater change for the better, though this has indeed
occurred in meaningfulness of working and in equality. In many respects, the

234
men have taken a somewhat more negative attitude than in 1998. The differences
between the responses at the two times are nevertheless quite small.
For the women, the changes occurring during the three years are slightly
greater than for the men. In general, the female workers have regarded the
changes more positively than earlier. The greatest changes can be noticed with
respect to environmental questions at the workplace and obtaining of information.
In 1998, those women who saw gender equality as developing for the
worse rather than for the better, outnumbered those of the opposite view.
During the three years, the balance has taken a slight positive turn. Nevertheless,
the trend in equality is still regarded more sceptically than in the other
factors being assessed.
DIFFERENT AGE GROUPS
The changes in Latvia are hardly weighted at all toward any particular age
group. It is generally true in Latvia, too, that pessimism about the trends increases
with age.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
AGE UNDER 30 YEARS 1998 AND 2002
Age under 30 1998
Age under 30 2002
-20% -10% 0% 10% 20% 30% 40% 5
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change under 30 -8% 15% -1% 3% -6% -5% 0%
Balance = better direction - worse direction (%-units)
The under-30s displayed a considerably more favourable attitude to changes in
gender equality than they did three years earlier. However, they viewed the

235
trends in management methods and in self-development opportunities with
slightly more misgivings than before.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
AGE 30-49 YEARS 1998 AND 2002
Age 30-49 1998
Age 30-49 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change 30-49 5% 5% 10% 2% 3% 2% -3%
Balance = better direction - worse direction (%-units)
The trend evaluations made by those at the prime working age, the 30 –49
year olds, are somewhat more positive throughout than before. The biggest
change is seen in relation to environmental questions.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
AGE 50 YEARS AND OVER 1998 AND 2002
Age 50+ 1998
Age 50+ 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change 50+ -6% 3% 2% 1% -6% -8% -6%
Balance = better direction - worse direction (%-units)

236
In the oldest age group, there is more emphasis on negative changes than three
years back. The trends in self-development opportunities, empowerment,
management methods and meaningfulness of working have been viewed more
negatively than earlier.
LATVIAN NATIONALS AND OTHERS
Those who are Latvian by nationality take a considerably more favourable attitude
toward working life trends than do the rest. Over the three-year period
the gap has widened somewhat, since the Latvian nationals' assessments are
now a little more positive than before, whereas the views of the other nationalities
have become more negative.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
LATVIAN NATIONALS 1998 AND 2002
Latvian 1998
2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Other -3% -2% 5% -3% -1% -9% 1%
Balance = better direction - worse direction (%-units)
With the exception of empowerment and management methods, the trend
evaluations made by the Latvian nationals are a little more positive than earlier.
The greatest change can be seen in the case of equality between men and
women. Still, however, it is clear that the change in equality has less often
been assessed favourably than have the other aspects. The conceptions of other
nationalities than Latvian regarding working life trends have turned in a negative
direction during the three years. This applies particularly to opportunities
for self-development.

237
TRENDS IN LATVIAN WORKING LIFE
NATIONALITIES OTHER THAN LATVIAN 1998 AND 2002
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
Other 1998
Other 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Other -3% -2% 5% -3% -1% -9% 1%
Balance = better direction - worse direction (%-units)
PRIVATE AND PUBLIC SECTOR
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LATVIAN WORKING LIFE
PRIVATE SECTOR 1998 AND 2002
Private sector 1998
Private sector 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Private 2% 5% 4% 6% 6% 2% 1%
Balance = better direction - worse direction (%-units)
In the Latvian view the changes in the public sector have, on the whole, been
more positive than three years ago. The favourable development has been
clearest in management methods and obtaining of information.

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
238
TRENDS IN LATVIAN WORKING LIFE
PUBLIC SECTOR 1998 AND 2002
Public sector 1998
Public sector 2002
-10%
0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Public -4% 8% 7% -2% -8% -7% -7%
Balance = better direction - worse direction (%-units)
In the private sector, there have been both positive changes and negative ones.
The trends in gender equality and environmental issues were seen as more favourable
than before. The opposite view was expressed concerning changes in
management methods, self-development opportunities, empowerment and
meaningfulness of working.

LITHUANIA
239
Lithuania differs from Estonia and Latvia in that its proportion of negative
assessments has grown during the last three years. There is only one exception
to this. The trend in gender equality has been evaluated positively much more
often than before. Despite this, the balance for gender equality still remains
lower in 2002 than for the other factors being evaluated. Another aspect regarded
more negatively than the average is empowerment, the possibility of
influencing one's own job. By contrast, the most positive assessment of all has
been given to trends in the meaningfulness of working and in self-development
opportunities.
Lithuanian wage earners' sceptical attitude as to current trends in working life
is also seen when considering whom the changes have affected. The differences
between the various categories of wage earners are rather large when the
changes between 1998 and 2002 are examined.
TRENDS IN LITHUANIAN WORKING LIFE
1998 AND 2002
Meaningfulness of working
Self-development
Management method
Environmental issues
Empowerment in own job
Information on work aims
Lithuania 1998
Lithuania 2002
Gender equality
-20% -10% 0% 10% 20% 30% 40% 50%
Balance = better direction - worse direction (%-units)

MEN AND WOMEN
240
The increased negativity of Lithuania's trend assessments is due almost entirely
to a growth in scepticism on the part of the men. For nearly all the factors
under evaluation, fewer men than before consider the trend positive. The
women's views on the changes, on the other hand, are close to those of three
years ago in most respects.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LITHUANIAN WORKING LIFE
MEN 1998 AND 2002
Men 1998
Men 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/men -10% 9% -10% -3% -7% -8% -5%
Balance = better direction - worse direction (%-units)
MEN
Greatest changes 1998 – 2002: meaningfulness of working (-10), environmental
issues at the workplace (-10) and equality between the genders (+9).
Most positive in 2002: meaningfulness of working and getting information on workplace
aims.
Most negative in 2002: equality and empowerment.
WOMEN
Greatest changes 1998 – 2002: equality between the genders (+25) and meaningfulness
of working (-10)
Most positive in 2002: meaningfulness of working and getting information on
workplace aims.
Most negarive in 2002:equalityand empowerment.

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
241
TRENDS IN LITHUANIAN WORKING LIFE
WOMEN 1998 AND 2002
Women 1998
Women 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/women -10% 25% -1% -1% -1% -4% -5%
Balance = better direction - worse direction (%-units)
The only aspect which, according to the men, is changing for the better more
emphatically than earlier is equality between the genders. And in the case of
the women, by far the greatest change in attitude has been in that aspect. In
1998, they regarded it very sceptically, the greater part of Lithuania's female
workers seeing the trend as negative. Currently, the situation is the opposite:
the majority of the women consider the trend positive. Now, the men's and the
women's opinions on this are nearly the same.
The difference in balance value between the women's gender equality trend
evaluations in the two different years is as much as 25 per cent. By contrast,
the women view the development in meaningfulness of working more negatively
than before.
DIFFERENT AGE GROUPS
There are quite big differences between the various age groups in Lithuania.
The under-30s stand out the most clearly from the rest by virtue of their positive
opinions. However, it is true of Lithuania, too, that scepticism toward
changes increases with age.

242
UNDER 30 YEARS
Greatest changes in 1998 – 2002: equality (+17), environmental issues (-11) and
management method (+10)
Most positive in 2002: meaningfulness of working and self-development opportunities.
Most negative in 2002: environmental issues, equality and empowerment.
Meaningfulness
Equality
TRENDS IN LITHUANIAN WORKING LIFE
AGE UNDER 30 YEARS 1998 AND 2002
Environment
Information
on aims
ManagementSelf-develop.Empowerment
Under 30 1998
Under 30 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change -29 -3% 17% -11% -2% 10% 1% -3%
Balance = better direction - worse direction (%-units)
30 – 49 YEARS
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LITHUANIAN WORKING LIFE
AGE 30-49 YEARS 1998 AND 2002
30-49 1998
30-49 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change 30-49 -17% 20% -8% 0% -10% -12% -9%
Balance = better direction - worse direction (%-units)

243
Greatest chances 1998 – 2002: equality (+20), meaningfulness of working (-17),
self-development opportunities (-12) and management methods (-10).
Most positive in 2002: meaningfulness of working and getting information on aims.
Most negative in 2002: empowerment and equality.
50 YEARS AND OVER
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LITHUANIAN WORKING LIFE
AGE 50 YEARS AND OVER 1998 AND 2002
50+ 1998
50+ 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change 50+ 2% 16% 6% -5% 3% 4% 3%
Balance = better direction - worse direction (%-units)
Greatest chances 1998 – 2002: equality (+16), environmental issues (+6) and getting
information on workplace aims (-5).
Most positive in 2002: meaningfulness of working and environmental issues.
Most negative in 2002: equality and empowerment.
Compared with the situation of three years ago, the under-30s conceive the
changes in working life as partly more negative and partly more positive than
before. Gender equality and management methods have been evaluated more
positively. As to the handling of environmental issues at the workplace, the
trend has been regarded more sceptically now than in 1998.
The attitude of those aged 30-49 has changed a great deal, and the direction
has been strongly negative. Only the development in equality between men
and women is held to be considerably more favourable than earlier. The getting
of information on the aims of working life has remained at the same level
of assessment, and the trends in all the other factors being evaluated have
definitely more often been seen as unfavourable. The negativity of Lithuania's

244
trend expectations can indeed be traced to this very group, of prime working
age.
The views of the oldest age group regarding changes in working life are close
to those of three years back. The most crucial difference is that the trend in
gender equality is clearly seen as more positive than before.
LITHUANIAN NATIONALS AND OTHERS
There is a very definite gap in attitude to working life trends between the
Lithuanian nationals and those of other nationalities. The Lithuanian nationals
take a noticeably more favourable view than the rest. With the exception of
gender equality issues, their attitude has become a little more negative compared
with the situation of three years ago. This change has been relatively
small, however.
TRENDS IN LITHUANIAN WORKING LIFE
NATIONALITIES OTHER THAN LITHUANIAN 1998 AND 2002
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
Other 1998
Other 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Other -10% 22% -6% -5% -10% -18% -5%
Balance = better direction - worse direction (%-units)
The gap between those of Lithuanian nationality and the others has clearly
grown during the three-year period. Apart from the equality trends, the others
regarded all the changes in a considerably more negative way than three years
ago. The scepticism has increased the most in the case of self-development opportunities.

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
245
TRENDS IN LITHUANIAN WORKING LIFE
LITHUANIAN NATIONALS 1998 AND 2002
Lithuanian 1998
Lithuanian 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Lithuania -11% 18% -5% -1% -3% -5% -5%
Balance = better direction - worse direction (%-units)
PUBLIC AND PRIVATE SECTOR
Those working in Lithuania's public sector regard the changes in working life
more positively than the private-sector workers. However, in both the public
and the private sectors, the assessments are more negative compared with the
situation of three years ago.
Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
TRENDS IN LITHUANIAN WORKING LIFE
PRIVATE SECTOR 1998 AND 2002
Private 1998
Private 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Private -14% 15% -5% 2% -6% -2% 0%
Balance = better direction - worse direction (%-units)

Meaningfulness
Equality
Environment
Information
on aims
ManagementSelf-develop.Empowerment
246
TRENDS IN LITHUANIAN WORKING LIFE
PUBLIC SECTOR 1998 AND 2002
Public1998
Public 2002
-20% -10% 0% 10% 20% 30% 40% 50%
Meaning- Equality Envi- Information ManageSelf-deEmpowfulnessronment on aims mentvelop.erment Change/Public -5% 23% -4% -6% -2% -9% -10%
Balance = better direction - worse direction (%-units)
The trend evaluations in the public sector - though still more favourable than
in the private sector - have undergone a rather powerful swing in the negative
direction relative to 1998. Only the trend in equality has been clearly positive.
In the private sector, the changes in meaningfulness of working, management
methods and environmental issues were viewed less favourably than before.
Besides equality between men and women, also getting of information on
workplace aims was given a slightly better assessment than previously.

247
FUTURE EXPECTATIONS
EXPECTATIONS CONCERNING OVERALL
EMPLOYMENT AND THE ECONOMY OF ONE'S OWN
WORKPLACE
Besides the trend assessments, working people's attitudes toward the future
were evaluated according to two themes. Firstly, they were asked for an estimate
of the general development in the employment situation during the
coming year. In addition, they were to assess how the economy of their own
workplace would develop during that next year. Data on both these topics
were collected in 1998 also.
EXPECTATIONS OF CHANGE: OVERALL EMPLOYMENT
AND ECONOMY OF ONE´S OWN WORKPLACE
60%
40%
20%
0%
-20%
-40%
-60%
EMPLOYMENT ECONOMY OF
WORKPLACE
ESTONIA LATVIA LITHUANIA ESTONIA LATVIA LITHUANIA
1998 2002 1998 2002 1998 2002 1998 2002 1998 2002 1998 2002
Much worse -18% -14% -11% -7% -35% -20% -6% -3% -3% -2% -7% -8%
Slightly worse -39% -36% -24% -25% -24% -28% -18% -17% -11% -13% -13% -26%
Much better 2% 1% 4% 3% 1% 1% 5% 5% 7% 5% 4% 1%
Slightly better 11% 14% 20% 23% 8% 20% 23% 29% 28% 38% 19% 21%
The expectations as to employment development in the following 12 months
were more favourable than before in all three nations. The Latvians were definitely
more positive in this respect than the Estonians and Lithuanians. However,
despite the fact that the estimates have - taken generally - been more favourable
than they were earlier, negative expectations continue to be more
common than positive ones. The proportion of strongly negative expectations

248
is particularly great. In the view of many, the employment situation in a year's
time may be much worse. There are very few who think that it will be much
better.
In Lithuania in 1998, there was a lot of scepticism as regards development in
employment. Now, though, the situation has evened out. In 2002, the expectations
in Estonia concerning employment turned out to be more negative than
in the other two countries. Only 15 per cent of the Estonians expect that employment
will improve during the coming year, and 50 per cent believe that it
will deteriorate. Only one per cent expect the situation to be much better in a
year's time. By contrast, many times that number - 14 per cent - reckon that it
will be much worse.
The development in the economy of one's own workplace during the coming
year is viewed considerably more optimistically than the general employment
development. For the workplace economy also, the expectations are the most
positive in Latvia. Future trends in this aspect are clearly regarded the most
unfavourably in Lithuania.
In both Estonia and Latvia, positive expectations have increased during the
three years. The development in Lithuania has been the opposite. There, in
1998, one-fifth reckoned that the economy at their own workplace was getting
worse. Now, the corresponding proportion has grown to over one-third, 34 per
cent. The percentage of favourable expectations, however, has stayed more or
less the same. The Lithuanians' expectations are somewhat contradictory, because
they believe more than before that employment in general will improve,
but at the same time their belief in the economy of their own workplace has
weakened. In Estonia and Latvia, the evaluation goes in the same direction for
both aspects.
Men's and women's expectations as regards employment differ only a little
from each other. In all three countries, both the male and the female workers
have estimated less often than before that the general employment situation is
getting worse. Among the men, the change has been slightly greater than for
the women. With the exception of Lithuania, the changes in positive assessments
have been small for both males and females.

40%
20%
0%
-20%
-40%
-60%
249
EXPECTATIONS: EMPLOYMENT
BY GENDER 1998 AND 2002
Somewhat better Much better
Somewhat worse Much worse
ESTONIA LATVIA LITHUANIA
-80%
Men Women
Men Women
Men Women
1998 2002 1998 2002
1998 2002 1998 2002
1998 2002 1998 2002
Much worse -18% -12% -22% -15% -11% -8% -15% -5% -36% -21% -41% -20%
Somewhat worse -41% -33% -41% -38% -24% -21% -26% -29% -29% -24% -28% -32%
Much better 2% 1% 2% 1% 4% 3% 4% 3% 1% 1% 1% 1%
Somewhat better 12% 15% 12% 13% 25% 23% 21% 22% 10% 20% 6% 20%
When speaking of development in the economy of one's own workplace, the
men in all three nations have been somewhat more optimistic than the women.
In Estonia, the percentage of negative expectations has decreased for both.
Favourable estimates of the workplace economy, on the other hand, have increased
only in the men's case. In Latvia, positive attitudes have increased a
little more among the men than among the women. The Lithuanian situation
differs from those above, because the proportion of pessimistic expectations
has grown for both genders and, correspondingly, the percentage of optimistic
ones has decreased. The change has been clearer in the men's case than the
women's.

250
EXPECTATIONS: ECONOMY OF OWN WORKPLACE
BY GENDER 1998 AND 2002
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
Somewhat better
Somewhat worse
Much better
Much worse
-50%
ESTONIA LATVIA LITHUANIA
Men Women
Men Women
Men Women
1998 2002 1998 2002
1998 2002 1998 2002
1998 2002 1998 2002
Much worse -8% -2% -6% -4% -3% -1% -4% -2% -10% -7% -11% -8%
Somewhat worse -19% -16% -22% -17% -14% -12% -12% -13% -18% -24% -19% -28%
Much better 6% 7% 5% 3% 7% 5% 7% 4% 6% 1% 3% 1%
Somewhat better 30% 31% 28% 28% 38% 42% 30% 34% 31% 24% 27% 18%
Age bears a definite correlation with the nature of the assessments. The percentage
of negative expectations in Estonia concerning employment has become
smaller in all the age groups.
40%
20%
0%
-20%
-40%
-60%
-80%
EXPECTATIONS: EMPLOYMENT BY AGE 1998 AND 2002
Somewhat better Much better Somewhat worse Much worse
ESTONIA LATVIA LITHUANIA
-100%
16-29 30-39 40-49 50+ 16-29 30-39 40-49 50+ 16-29 30-39 40-49 50+
'98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02 '98 '02
Balance -30%-13%-41%-34%-58%-39%-59%-44% 3% 11% -17% 0% -16% -5% -15%-33% -36% -6% -65%-24%-68%-34%-62%-40%

251
The situation in Latvia is otherwise the same, but the expectations of those
there who are 50 and over are clearly more unfavourable than they were before.
In Lithuania, the younger the respondent, the more strongly positive the response
becomes.
60%
40%
20%
0%
-20%
-40%
-60%
EXPECTATIONS: ECONOMY OF OWN WORKPLACE
BY AGE 1998 AND 2002
16-29 1998
2002
30-39 1998
2002
40-49 1998
2002
50+ 1998
2002
1998 16-29
2002
1998 30-39
2002
1998 40-49
2002
1998 50+
2002
1998 16-29
2002
1998 30-39
2002
Somewhat better
Much better
Somewhat worse
Much worse
ESTONIA LATVIA LITHUANIA
1998 40-49
2002
Balance 26% 38% 17% 15% -2% 9% -24% 3% 47% 40% 22% 33% 18% 37% 11% -2% 35% 13% 5% -10% -6% -18% -16% -28%
Expectations as regards development in the economy of one's own workplace
during the coming year clearly change with age in a negative direction. The
link between age and the nature of the assessment is very definite in all three
countries. Whereas nearly half of the under-30s expect the economy of their
workplace to improve, the corresponding proportion of those 50 and over is
only about one-fifth.
In Estonia, the greatest positive changes have been in the youngest age group
and the oldest. In Latvia, the changes have taken different directions in different
age-groups. The economy expectations of the youngest and oldest are
more negative than earlier; and those of the middle age group, at the ’best
working age’, have changed in a positive direction. In Lithuania, negativity
has definitely grown in all the age-groups. The change has been somewhat
greater for the young workers than for the ageing ones.
1998 50+
2002

252
At the new workplaces established after the regaining of independence, the
expectations concerning general employment and especially the economy of
one's own workplace are considerably more favourable than at the old or reorganised
workplaces. The new workplaces differ the most from the old in this
respect in Latvia, but the difference is along similar lines in all three countries.
SUMMARY
It is clear that the Estonians and Latvians believe more commonly nowadays
than three years ago that working life is changing in a positive direction. The
situation in Lithuania is the opposite. The most evident change has been in
Estonia. Although the gap between Latvia and Estonia has narrowed, the
trends in working life are still regarded the most favourably in Latvia.
The evaluations have most clearly changed along positive lines when it comes
to handling of environmental issues and gender equality at the workplaces. In
Lithuania, the trend in matters of equality has definitely been better than three
years ago. On the other hand, more negative evaluations than before have been
made there as regards changes in the meaningfulness of working. In both
Lithuania and Latvia, the attitude toward trends in empowerment, management
methods and self-development opportunities has been somewhat more
negative than before.
Common to all three nations is the fact that the younger workers take a favourable
view of changes in working life more commonly than do the ageing
ones. The older people are, the more rarely do they regard the trends in working
life as good. Taken as a whole, the attitude to the changes is more positive
in the public than the private sector. Similarly, those of Estonian/Latvian/Lithuanian
nationality see working life as changing for the better
more often than do the other nationalities in each country.
In Estonia, it is clearly more common than before for the current trends in
working life to be considered as good. There are no big differences in the
women's and the men's assessments. The young people lay a little more emphasis
than the rest do on environmental issues, the meaningfulness of working,
and management methods. The ageing workers evaluate empowerment

253
and acquiring of information as changing for the better. Opportunities for selfdevelopment,
on the other hand, are regarded sceptically.
Characteristic of Latvia has been the similarity in trend evaluations between
the two times under study. In 1998, the Latvian assessments of the trends were
clearly more favourable than those in the other two countries. Their positive
nature has remained, but those of the Estonians now come very close.
Due to the smallness of the changes in Latvia, it is hardly possible to trace
them to any given segment of working life. A slight change in the negative
direction is discernible in the private sector, however. It concerns, among others,
the evaluations regarding the meaningfulness of working, management
methods, and empowerment.
Lithuania differs clearly from the other two countries, because there, only the
assessments of the trend in gender equality are more positive than before. The
negative change in evaluations can be traced in particular to the men and to
those at the best working age, 30-49 years old. Those of nationality other than
Lithuanian have also seen the changes as negative.
On the whole, the employment expectations in all the countries are unfavourable.
That was also the situation three years before. The current trends in
working life are regarded quite critically in Lithuania. There, nevertheless, the
belief that the general employment situation will improve is definitely more
common than three years earlier. In Latvia, the expectations in this regard
have been, and still are, more positive than in the other two nations. The Estonians'
expectations concerning employment are the most sceptical of all.
In Estonia and Latvia, improvement in the economy of one's own workplace is
believed in more than it was before. The Lithuanians have been more pessimistic
about this than have the other two countries. In general, it can be said
that the Estonians trust in the economy of their own workplace but are sceptical
as far as the general trend in employment is concerned; and that the
Lithuanians, for their part, appear not to have confidence in their own workplace,
but believe nevertheless that the general employment situation will improve.

254
DISCUSSION: DIVERGING
DEVELOPMENT TRENDS
From afar, Estonia, Latvia and Lithuania appear to be so alike: three quite
small countries as far as their area, population and GDP per capita are concerned.
All of them are former Soviet states. They have eagerly striven to cut
the bonds with Russia and tried to develop their own policy. This process,
however, has proven not to be very easy.
All the Baltic countries apply a proportional taxation system that does not
contribute to a more even distribution of income as does the progressive income
taxation system widely used in the EU countries. In none of the countries
in question has there been an attempt - at least, not a clear, deliberate one
- to build a Western-type welfare state in which income is redistributed. This
has contributed towards people's experiences of uncertainty. To be outside the
sphere of paid work, to be unemployed or retired for instance, often means
harsh economic circumstances. This has contributed largely to the feelings of
uncertainty that are very commonly experienced among those countries' wage
earners. There is an ever-present fear of losing one's job and therefore one's
livelihood. Perhaps we can even speak of a prevailing atmosphere of uncertainty,
which is reflected in many ways. Its roots lie in the regaining of the
nations' independence, and thus in the ending of the socialist era. During Soviet
times, unemployment did not (officially) exist - in other words, for the
Baltic countries, the whole phenomenon of unemployment is only about
twelve years old. During this rather short time, there have been great hopes for
a better tomorrow; but in many respects, these hopes have for the moment remained
unfulfilled. In general, nevertheless, there is no desire to return to the
past; and so the remaining alternative has been alliance with an increasingly
powerful West, in the hope of security and a better standard of living.
All the Baltic nations will be joining NATO and the European Union at the
same time; that is, they are aiming to integrate politically and economically
with the West as closely as possible. In the light of the above-mentioned factors,
therefore, it is evident that the starting situation, outward aspect and foreign
policy goals of those countries are rather similar.

255
Beneath the surface of this similarity, however, there are significant differences
between them. This study concentrated on the quality of working life, its
present state, and changes taking place in it. Undeniable differences could be
found between the countries. Their similar backgrounds and starting-points
have given rise to rather different sociopolitical solutions, which have been
reflected either directly or indirectly in economic and working life. In this research
study, the Baltic countries have been purposefully compared among
each other; and in many aspects, Finland has been used as a benchmark or
reference point. Nevertheless, the primary intention has not been to create an
apparent ranking order between the countries through some kind of
competitive scenario; nor has the aim been to give them suggestions or
programmes of action. The task of this study is to stimulate discussion on the
state of working life in the countries concerned and on the changes that have
taken place in it in recent years, as well as to serve as a data bank on working
life topics.
The present and future challenges faced by the Baltic nations, like those for
other countries in transition, are quite similar. The advantage of low prices
which the Baltic countries now enjoy, and which is mainly due to low salaries,
is likely to grow smaller year by year. When this happens, then - as in any
other developed industrial country - both the enterprises and the employees
will have to give more and more priority to quality, reliability of delivery etc.
in order to keep the production inside the country.
This study examined the changes from within working life and from the viewpoint
of ordinary working people. The comparison of three different countries
and three different strategies of change made this study interesting. It is obvious
that the different choices toward progress can accordingly be seen in clear
differences of quality and trends in working life. In what follows, a short
summary of the research results is given for each of the Baltic countries.
ESTONIA
The overall picture of Estonian working life reveals a development toward
”normalisation”. In many of its single aspects, progress has been made in a

256
favourable direction and the development has, on the whole, been very evenly
distributed.
Estonia is the only Baltic country where the membership drain from the trade
unions has halted and the trend has taken a slight turn for the better. Nevertheless,
the proportion of working people who belong to trade unions is still
only fairly small (14 %). In Estonia, as in the other Baltic nations, the trade
union members are mainly public-sector workers. The new members, too, are
public sector workers; the degree of unionisation in the private sector is at exactly
the same level as in the previous study just over three years ago (8 %).
Moreover, the membership is weighted not only according to sector, but also
according to age and nationality. Ageing workers more frequently belong to
trade unions than young ones do. Similarly, it is more common for Russians to
be union members than it is for Estonian nationals. Gender, on the other hand,
has no significant bearing on union membership. A considerable problem for
trade unions in Estonia is that only quite a small percentage of Estonia's
working personnel (14 %) know what the unions do nowadays.
One development that can be reckoned as positive is the narrowing of the salary
gap between the genders. On average, however, it is clear that the women
still earn much less than the men; and so, even though the trend has been positive,
the situation can by no means be regarded as particularly good. Taken as
a whole, the difference in salary between the genders is at present about 30 %.
At new workplaces, the salary differences between men and women are at
their greatest - although there, too, some evening out has taken place. In the
earlier survey (in the latter part of 1998), the women's salaries at the new
workplaces averaged only 56 % of the men's; in this study, the corresponding
figure was 63 %. Thus, despite the positive trend, the gender gap in salaries is
still great. The smallest differences between them are at the old state workplaces.
The overall development in earnings, however, is problematic, since
only about one-tenth of the working people believed that their real purchasing
power would improve during the following year. The men were clearly more
optimistic than the women in this respect. Estonia's workers took a pessimistic
view not only of their own economic development, but also of the employment
development in the country as a whole.

257
There have been no significant changes in the incidence of secondary jobs.
Altogether, 15 % of the wage earners do another job in addition to their main
one. It is also possible to speak of the aforementioned normalisation trend in
the sense that the black economy would appear to have diminished considerably.
On the basis of this study, less unreported income is earned in Estonia
than in Latvia and Lithuania. Delays in salary payment are also clearly less
frequent in Estonia than in the other two Baltic countries. However, they have
not been completely eliminated from Estonia, either, because more than onetenth
of the working people (12 %) stated that a delay in their salary payment
had occurred during the year preceding the survey. In practice, however, long
delays have ceased: the salaries have been only a few weeks late at the most.
A normalisation trend can also be spoken of with regard to the number of
hours worked. Almost half of the working people (47 %) had worked 40 hours
in the week before the survey. This percentage is greater than in the previous
survey. At the same time, the proportion who had worked a very long week
(over 50 hours) had diminished. Also, relatively fewer were working less than
40 hours a week. More working people than before came within the sphere of
normal working hours. This is connected with a decrease both in black income
and in overtime, as the study took account of all the hours worked by the respondents
during the previous week. Although less overtime had been done, it
is important to note that only overtime paid in money had decreased. Overtime
that was not compensated at all, or was compensated by days off, was just as
common as earlier. In this regard, the trend is not unambiguously positive.
The percentage of permanent employment relationships agreed on in writing
has grown in relation to the total. There has been no change in the proportion
of fixed-term working relationships - it is still high (23 %), but lower than in
Latvia and Lithuania. The increased proportion of permanent employment under
written contract is due to the fact that illegitimate (orally agreed) working
relationships are rarer nowadays than earlier. Extra written agreements between
the employer and employee in addition to the work contract proper,
which allude to some irregularity, also occur less frequently now. These extra
agreements may stipulate fringe conditions that are either negative or positive
from the worker's point of view (for example, a ready-signed, undated notice
of dismissal, black income, etc.). In Estonia, in contrast to the other countries
under comparison, agreements of this kind have become rarer than before.

258
A trend toward normalisation can also be observed in connection with work
stress and workplace conflicts. The working pace in Estonia is intensifying in
general; but despite that, two-thirds of the working people did not regard the
intensity of their own work as too great. This percentage has grown a little.
Although one-third still feel that their work is too intense, this proportion is
definitely smaller than in the other Baltic countries. In that sense, the situation
can be considered good. Also as regards the incidence of conflicts arising at
the workplace, the Estonian situation is good and stabilised in comparison
with Latvia and Lithuania. There are clearly fewer conflicts at Estonian workplaces
than in the other countries compared, and no change has taken place in
their frequency in recent years. It is therefore not surprising that more working
people in Estonia are satisfied with their job and the atmosphere at their workplace,
than in Latvia and Lithuania.
The spread of modern information technology is a universal phenomenon.
Computers and mobile phones are typical features of Estonia's workplaces,
too. It must nevertheless be noted that even though Estonia has more workers
using IC technology than do Latvia and Lithuania, the percentage of such
equipment users is still fairly low. Only just over one-third of the Estonian
working people used a computer in their own work. The utilisation of modern
information technology often presupposes some kind of induction course. It is
indeed significant that although employers in Estonia offer their personnel
more training or courses than those in Latvia or Lithuania, only one in four
working people had been on a course paid for by the employer during the year
preceding the survey. Employer-paid training is fairly infrequent, particularly
in the private sector.
In many respects, working life is currently faring better in Estonia than in Latvia
and Lithuania. However, as to wage earners' possibilities of influencing
their own work tasks, the situation is the opposite. In Estonia, as also in
Finland, over half of them felt that their possibilities for such influence were
poor. This is a problem for wage earners in both the public and the private
sector. Attention should be given to this in the future, because - at least according
to the study concerning Finland - wage earners' possibilities to influence
their job tasks have an impact on both the quality of working life and the
success of work organisations. (Antila & Ylöstalo 2002).

LATVIA
259
In many aspects of working life, Latvia has made progress in a good direction,
and earlier than in the other two Baltic countries. Taken as a whole, the
changes during the last few years have been very few. In a nutshell, one can
perhaps even speak of an unchanged situation. This is an interesting phenomenon,
since Latvia has otherwise been going through a period of rather great
(political) changes and uncertainty, and so one cannot speak of stabilisation as
such. An example of this in the political field is that at the time of writing,
Latvia has its tenth government in 11 years.
In Latvia, organisation into trade unions is commoner than elsewhere in the
Baltic countries. The degree of unionisation has nevertheless fallen during
recent years. There, in contrast to Estonia and Lithuania, the membership profile
of the trade unions is not weighted according to nationality, but rather the
unionisation is at the same level among Latvian nationals and among Russians.
One in five working persons is a trade union member. In Latvia, however,
as also in the other two Baltic nations, trade unions are definitely more
typical of the public than the private sector.
It can be assumed that the trade union movement has some kind of influence
over its members' affairs. The net earnings of the average trade union member
are better than those of a non-member. In general, considered as a whole, the
salary development in Latvia has been favourable. Another positive phenomenon
is the narrowing of the difference between men's and women's salaries in
the last few years. The gender gap in Latvian salaries is nowadays the same as
in Estonia (30 %).
Long days are worked in the private sector in Latvia. In the public sector,
where 38 % of the wage earners belong to trade unions, the actual working
hours average very close to the norm of 40 hours. In the private sector, on the
other hand, trade union membership is not usual, nor are the actual working
hours anywhere near the traditional 40-hour norm. On average, male privatesector
workers work almost 48 hours and the women 45 hours per week. The
gaps between the public and the private sector in this respect are noticeably
large. Thus, a lot of overtime is done in the private sector, but it often remains
uncompensated. This practice is the most general in the case of the manage-

260
ment staff. It is, in a way, natural, and is very usual in other countries too. In
the case of the management, it is often a case of overall responsibility, and
long working days are taken into account in the salary. The problem is mainly
with the low- and middle-income wage earners, i.e. the ordinary working personnel,
who end up stretching their working hours without any separate compensation.
Of the group just mentioned, about one in five does unpaid overtime
during a normal working week.
As to employment contracts, the Latvian labour market situation looks disturbing.
As many as 30 % of the working people said that they were in a fixedterm
working relationship agreed in writing. Already in the earlier survey, the
percentage of fixed-term employees was greater than in Estonia and Lithuania,
and it has continued to grow. The proportion of various untypical work contracts
relative to the employment contracts in total is remarkably great. For
approaching half of Latvia's working people (44 %), their employment relationship
is something other than a traditional, permanent one agreed in writing.
This percentage is clearly greater than in Estonia and Lithuania. There are
many irregularities and even illegalities connected with it. On the basis of the
responses, one out of ten working people has not even made any written employment
contract, though this must be done by law. This proportion, too, has
been on the increase.
Also linked to illegitimate and irregular practices is the black economy, i.e. tax
evasion. It is impossible to reliably determine how widespread a phenomenon
this is. More than one-fifth of the working people in the survey confessed that
they received black income. This proportion is approximately double that of
Estonia and Lithuania, and it has increased since the last survey. The relative
prevalence of such 'moonlighting' is most likely to be considerably greater
than that. Financial malpractice has been prominent in the media as well; and
the government, too, has attempted to do something about it. There has been
an endeavour to curb corruption, for instance, both by legislative action and by
establishing a separate Corruption Prevention Bureau. It could be said that
economic malpractice is a kind of ”local custom” and a significant problem
(cf. also Monitoring the EU Accession Process: Corruption and Anti-corruption
Policy 2002).

261
Entrepreneurs in the Baltic countries have not, generally speaking, been overly
eager to invest in developing the know-how of their personnel. On the whole,
in all the Baltic nations, work-related training concerns quite a small proportion
of the wage earners. In Latvia during the past year, one-quarter of all
working women and one-fifth of the men had attended training or courses either
partly or completely paid for by the employer. Of the private-sector wage
earners, only 15 % had attended training. The average duration of such training
is typically 6-7 days.
In general, Latvian workers see their possibilities for influencing their work
tasks as rather good. Half of all the working people felt that such possibilities
for them were either extremely good or rather good. Furthermore, in this aspect,
working life is quite democratic, as no differences of any kind were noticeable
between public- and private-sector wage earners, or men and women,
or workers of different ages. As regards possibilities of influencing one's job
tasks, therefore, Latvian working life is in good shape and the situation has
developed in a positive direction.
Job satisfaction has dropped a little since the last study. A majority still consider
the workplace atmosphere and solidarity between colleagues to be good,
but the percentages are no longer as favourable as before. This is linked to the
fact that all types of disagreements and conflicts at the workplaces have become
more widespread and their frequency has increased in the last few years.
One-quarter of the working people said that there were either a lot or quite a
lot of conflicts at their workplace between superiors and those under them.
Competition between employees has also intensified, and this has led to a
definite increase in disagreements between them. The more frequent disagreements
and somewhat diminished job satisfaction have not, however,
meant that going to work has lost any of its meaningfulness. Over half of the
working people feel that having a job is becoming more meaningful than before.
The Latvian nationals are clearly more positive in their evaluations than
are the Russians.
LITHUANIA
Working life in Lithuania is problematic in many respects. In the previous
Working Life Barometer for the Baltic countries, we predicted that there were

262
still some big changes ahead for Lithuania in that sphere. Many changes have
indeed taken place in the country during recent years - more than in the others
under comparison - but the trends have been contradictory.
Membership of the trade union movement is rarer in Lithuania than in Latvia
and Estonia. It has fallen during the last few years. This drain in membership
has happened among both men and women, and among both Lithuanian nationals
and others (Russians, Poles, Belorussians). In the public sector, the
drop in membership has been small; but in the private sector, very few (5 %)
belong to the unions anymore. The degree of unionisation in the Lithuanian
private sector is the lowest in the whole Baltic area, and the greatest problems
in the country's working life are in that very sector. The loss of trade union
membership is seen also in the increase in individual agreements and the decrease
in collective agreements. More and more working people have agreed
on the contents of their employment contract personally together with their
employer.
Individual agreement takes place more than the wage earners would like. In
Lithuania's current labour market situation, their powers of negotiation are not
very great. Among private-sector wage earners, feelings of uncertainty and
fear are common. In the private sector particularly, the status of female workers
is, in general, poor. Wage earners' confidence in the economy of their
workplace is low overall; and similarly, there are only fairly few who believe
that the employment situation in general will improve in the near future. In
consequence, even poor working conditions are tolerated for fear of losing
one's job. Some companies are in real financial difficulties, and the unfairness
or problems experienced by wage earners are due first and foremost to the
companies' economic realities rather than to lack of good will. On the other
hand, there are also companies that mercilessly exploit the subordinate labour
market status of wage earners.
Long working weeks have become more widespread in Lithuania. There, as in
Latvia, those working in the private and in the public sector have very different
working weeks. It is noticeable that the lengthening in Lithuania's working
weeks is due to longer weekly hours for private-sector employees. Wage earners
in the public sector work practically the same weekly hours as three years
earlier. In the private sector, the average number of hours worked per week by

263
the men has grown only a little; but for the women, there has been a dramatic
rise in working hours. Women in the private sector did an average working
week of as many as 46.8 hours, which is greater than the corresponding figure
for men in Lithuania and greater than for any other women's group under
comparison in the Baltic countries.
In Lithuania, as in Latvia, 39 % of the working people stated that overtime
was part of their normal working week. Overtime is done quite commonly, but
often no separate compensation is received for it, in money any more than in
days off. Almost three-quarters of the women who work overtime do not receive
compensation of any kind for it. The men's situation is better, but not
good. Of those men who do overtime, slightly over half receive no separate
compensation for it. Around one-quarter of all working people in Lithuania do
unpaid overtime during a normal working week; this proportion is greater than
in the other countries compared.
Taken as a whole, the living standard of Lithuania's working people can be
estimated to have remained more or less the same during the last few years.
Emerging as a positive feature is the salary difference between the genders,
which is the smallest in the Baltic countries. When including the total of all
the net earnings received from one or more jobs, the gap between men's and
women's salaries has definitely narrowed in recent years, being 17 % at present.
In the preceding survey, the difference was 24 %. This reduced salary
difference is largely because the average salaries in the public sector have
clearly grown more than in the private sector. Since a majority of the female
workers are in the public sector, this positive salary development in the sector
has contributed directly to the narrowing of the gap between the salaries of
male and female workers.
The black economy has become more widespread in recent years, among both
men and women. This may be linked to the increased incidence of secondary
jobs. In Lithuania, as also in Estonia and Latvia, 15 % of the wage earners said
that they had another job in addition to their main one. The proportion doing a
second job in Lithuania is now almost double that observed in the previous
study. The change has concerned men as much as women. One explanatory
factor is that delays in salary payment have become more common. It is probable
that for many, doing a secondary job is essential to their livelihood when

264
the salary due from their main occupation does not come on time. In fact, the
salary of more than one-third of Lithuania's working people had come late
during the year preceding the survey. This proportion is three times as great as
in Estonia, and nearly twice as great as in Latvia.
An increased incidence of fixed-term employment contracts has been noticeable.
Their relative proportion (29 %) is already beginning to be on the same
level as in Latvia. At the same time, though, the percentage of (illegitimate)
orally agreed work contracts has fallen significantly. There has indeed been a
transition from orally agreed working relationships to fixed-term employment
contracts agreed in writing. In this regard, the development can be considered
positive. On the other hand, at the same time, the number of extra agreements
drawn up in addition to the employment contract proper has clearly grown. In
several cases, the content of the extra agreements may be such that it is disadvantageous
to the worker. In the worst instance, the extra agreement may even
water down the juridical security provided for in the employment contract.
Lithuanian wage earners who have signed an extra agreement are clearly less
satisfied with the content of the agreement than those who have signed one in
Latvia and Estonia.
Satisfaction with one's job and working conditions has become polarised in
Lithuania. Public-sector workers are satisfied in this respect, but the private
sector has the lowest degree of satisfaction in all the Baltic countries. It is
worthy of note that only half of the private-sector wage earners felt it was possible
to make a complaint that they were dissatisfied with their working conditions.
This proportion is definitely smaller than in the Lithuanian public
sector, or elsewhere in the Baltic nations. Fear of losing one's job is what most
probably accounts for the silence. In addition, work has become more intensive
and stressful than before. This change has been a general one: it has affected
wage earners in both the public and the private sector.
In Lithuania, too, the amount of employer-paid training has been quite small,
particularly in the private sector. Only about one in ten private-sector workers
had attended a course paid for partly or completely by the employer during the
preceding year. Of the wage earners in the public sector, however, more than
one in three had received training. This training is often connected with utilisation
of information technology at work. Both computers and mobile phones

265
are clearly used more seldom as working tools in Lithuania than in Estonia
and Latvia.
The wage earners' increased possibilities of influencing their job tasks and
their working pace constitute a positive factor. Around half of all the wage
earners felt that for them the possibilities in question were either extremely
good or rather good. These proportions have definitely grown in recent years.
In this aspect as well, there are great differences between those in the public
and the private sector. The public-sector wage earners clearly have greater
possibilities for such influence.
SUMMARY OF KEY FINDINGS
Unionisation The rate of unionisation
has slightly
increased.
Contracts - The proportion of
fixed-term contracts
is high but stable.
- The proportion of
illegal oral contracts
ESTONIA LATVIA LITHUANIA
has decreased.
Working hours ‘Normalisation’
trend in weekly
working hours.
Pay - The differences in
net income between
the genders have
decreased. The gap
is now 30 %.
- Delays in payment
are becoming rather
rare.
The rate of unionisation
has decreased,
but it is
still the highest in
the Baltic coun-
tries.
The proportion of
fixed-term contracts
and illegal
oral contracts is
the highest in the
Baltic countries.
The weekly working
hours are the
longest in the
Baltic countries.
- The net income
growth has been
clearly greater
than in the other
Baltic countries.
- The black economy
is a severe
problem and has
The rate of unionisation
has decreased
and it is lower than
in Estonia and Latvia.
- The proportion of
fixed-term contracts
has increased.
- The proportion of
illegal oral contracts
has decreased.
Private sector (female)
employees’
working hours have
lengthened a lot.
- The differences in
net income between
the genders are
smaller than in Estonia
and Latvia.
- The problem of
delayed payments
has considerably in-

266
Job satisfaction Job satisfaction has
increased, being the
highest in the Baltic
countries.
Employees’ possibilities
for influence
Employees have
clearly fewer possibilities
of influencing
their job tasks
and work tempo
than employees in
Latvia and Lithua-
nia.
Stress at work - There is a trend
towards ‘normalisation’
in work intensity.
- Women suffer
mental stress more
often than men.
Conflicts - All types of workplace
conflicts occur
less than in Latvia
and Lithuania.
- There have been
no changes in the
Job-related
training
Use of information
technology at
work
last three years.
During a period of
one year, 26 % of
working people participated
in training.
Average length: 5
days.
- One-fifth of working
people use ICT
(almost) continually
at work.
- ICT devices are
the most generally
used in the Baltic
countries.
increased. creased.
There is a declining
trend in job
satisfaction, relations
between
colleagues, and in
atmosphere at
workplaces.
Half of the employees
have at
least rather good
possibilities of
influencing their
jobs.
- The work intensity
is still the
highest in the
Baltic countries.
- Women suffer
mental stress more
often than men.
A worrying trend:
all types of workplace
conflicts
have become
more widespread.
During a period of
one year, 22 % of
working people
participated in
training. Average
length: 7 days.
One-fifth of working
people use
ICT (almost) continually
at work.
Female privatesector
employees
are the most dissatisfied
with their
jobs.
A great disparity:
public-sector employees
have clearly
more autonomy
than private-sector
people, and women
have more than
men.
- There has been a
significant increase
in work intensity.
- Women suffer
mental stress more
often than men.
- Rivalry within
workplaces has become
a big problem.
- The trend in conflicts
is contradic-
tory.
During a period of
one year, 22 % of
working people participated
in training.
Average length: 7
days.
As many as _ of
working people are
practically outside
the realm of ICT at
work. The proportion
is the greatest
in the Baltic countries.

Development activities
in work
organisations
Direction of
change 1998-2002
Expectations concerning
the employmentsituation
and economy
During a one-year
period, approximately
half of the
working people
have made devel-
opment initiatives.
There has been
steady improvement.
267
Expectations concerning
the general
employment situation
are negative.
A great majority
of workplaces use
teamwork.
There have been
no great changes.
The most positive
expectations in the
Baltic countries.
More consultantdriven
development
projects than in
Estonia and Latvia.
Only equality between
the genders
and possibilities for
influence have improved,
otherwise
the trend is nega-
tive.
Negative expectations.

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World Bank: World Development Report 2002

DATA COLLECTION AND SAMPLE DESIGN
Company
ESTONIA LATVIA LITHUANIA
Saar Poll Ltd
Veetorni 4
EE00001Tallinn
Latvian Facts
Brividas iela
106-2 Riga
Baltijos Tyrimai
Sermuksniu 6A
2001 Vilnius
Date 1. - 18. 02. 2002 18. – 28. 02. 2002 26. 01. – 4. 02. 2002
Sampling method Proportional
probability sample
+ random route
method
Sampling population Working people age
Reached sample
-completed interviews
-total number of
households contacted:
-number of refusals
-other non-responses
18 - 64
900
3143
520
1723
Sample match Representative
nation wide
Interview method Face-to-face
interview at
respondent’s home
Language Questionnaires,
show-cards and
interviews in
Estonian and
Russian
Multistage random
route method
Working people age
18 - 64
904
2750
490
1356
Multistage random
route method
Working people age
18 - 64
909
2337
453
975
Representative Representative
nation wide nation wide .
Face-to-face Face-to-face
interview at interview at
respondent’s home respondent’s home
Questionnaires, Questionnaires,
show-cards and show-cards and
interviews in interviews in
Latvian and Russian Lithuanian and
Russian

TYÖPOLIITTINEN TUTKIMUS
1. Tuohinen, Riitta: Työlle viileä sukupolvi?
Nuorten työlle antamista merkityksistä, niiden
tutkimisesta ja tulkinnasta
2. Yli-Pietilä, Päivi, Alasoini, Tuomo, Kauppinen,
Timo, Mikola-Lahnalammi, Tuula: Työelämän
suhteet, Aikasarjoja 1907 - 88
3. Räsänen, Leila (toim.): Vammalan naisyrittäjäkurssi.
Kvinnoföretagar-kursen i Vammala. Pohjoismainen
AVAA-projekti. Det nordiska BRYTprojektet
4. Alasoini, Tuomo, Järviniemi, Päivi, Pekkola,
Juhani: Organisaatiomuutokset PTL-Telessä.
Henkilöstön käsityksiä muutoksesta ja työnsä
ehdoista
5. Alasoini,Tuomo: Tuotannolliset rationalisoinnit
ja teollisuuden työvoiman käyttötapojen muutos.
Tutkimus viidestä modernista suomalaisesta konepajateolllisuuden,
kevyen sähköteknisen
teollisuuden ja paperiteollisuuden yksiköstä
6. Lilja, Reija, Santamäki-Vuori,Tuire, Standing,
Guy: Työttömyys ja työmarkkinoiden joustavuus
Suomessa
7. Hietala, Kari: Kantvikin satamahankkeen yhteiskunnalliset
vaikutukset
8. Työelämän tutkimusohjelma 1991 - 1993
9. Kauppinen, Timo, Köykkä, Virpi: Palkansaajien
järjestäytyminen 1989
10. Kauppinen, Timo, Köykkä, Virpi: Union membership
and density in Finland 1989
11. Korkiasaari, Jouni: Liikkuvuus ja rakennemuutos.
Maassamuutto ja työvoiman liikkuvuus
osana yhteiskunnan rakennemuutosta
12. Toivonen, Marja: Työvoimapula yhteiskunnallisena
ongelmana - Uudenmaan työvoimapulan
laajuudesta 1980-luvulla
13. Arnkil, Robert: Massapalvelusta yhtiöittämiseen
- tapausesimerkkinä Tampereen työvoimatoimisto
14. Järviniemi, Päivi: Työelämän tutkimus Suomessa
1989 - 1991: luettelo työelämän suhteiden
näkökulmasta
15. Jaakkola, Magdalena: Suomen ulkomaalaiset -
Perhe, työ ja toimeentulo
16. Haddas, Katarina: Utvärdering av återvandringsprojektet
i Västra Nyland
17. Kauppinen, Timo, Köykkä, Virpi (toim.): Työmarkkinajärjestelmä
ja poliittinen järjestelmä
2000 - tulevaisuutta ja historiaa Suomessa ja
Ruotsissa.
Arbetsmarknadssystem och det politiska systemet
2000 - framtid och historia i Finland och
Sverige
18. Madsen, Per: Pohjoismaiden ministerineuvoston
nuorisoprojekti - kokemuksia tammikuusta
1986 joulukuuhun 1988
19. Turtiainen, Juhani: Työnvälityksen asiakaspalvelun
käytäntö
20. Vähätalo, Kari: Pitkäaikaistyöttömyyden mosaiikki
ja työllisyyslaki
21. Seppälä, Ullamaija: Askel aikuisuuten vai ajankulua?
Työllisyyslaki nuoren elämässä
22. Lahti, Raimo, Pettersson, Marita: Yksilölliset intentiot
- ammattiin suuntautumisen voima.
Ammatinvalinnanohjauksen asiakkaiden tilanteiden
kuvaus ja kartoitus
23. Alasoini, Tuomo: Organisaatioinnovaatiot Suomen
kevyessä sähköteknisessä teollisuudessa
24. Hietala Kari: Työttömyyden kustannukset
25. Soini, Sinikka, Laine Marjukka, Tamminen-
Peter, Leena, Pentti, Jaana, Saarni, Heikki:
Työn kuormittavuus lastialuksella. Työanalyysija
kyselytutkimus lastialuksella
26. Mannila,Simo, Tynkkynen, Auli, Eronen, Marja:
Vajaakuntoiset työnhakijoina
27. Mattila, Aarne: Työriitojen sovittelun historia
28. Repo, Paula: Verkostomalli ja joustava tuotantomalli
työvoiman käytössä
29. Hämäläinen, Heikki: Aikuiset ammatinvalinnanohjauksessa
30. Kauppinen, Timo: Suomen työmarkkinamallin
muutos
31. Nummenmaa, Anna Raija: Toisen sukupuolen
ammatti nuoren koulutusvalintana
32. Järviniemi, Päivi: Etätyötä koskevat ennakkokäsitykset
työhallinnossa

33. Korkiasaari, Jouni: Siirtolaisia ja ulkosuomalaisia
34. Ahlskog, Marina: Koncernfackligt samarbete
inom Abb Strömberg
35. Työelämän tutkimuspolitiikan neuvottelukunnan
toimintakertomus vuosilta 1990 - 1992
36. Hietala, Kari: Maahanmuuton vaikutukset
37. Sääski, Niilo: Työttömien seuranta 1989 - 91
38. Ylöstalo, Pekka, Alasoini, Tuomo, Kauppinen,
Timo, Pekkola, Juhani: Työolobarometri
39. Juuti, Pauli, Varjoranta, Tomi: Johtaminen,
organisaatio ja yhteistoiminta metalliteollisuudessa
40. Pitkäaikaistyöttömien profiili- ja seurantatutkimus
41. Työelämän laatu -ryhmän raportti
42. Suikkanen, Asko, Viinamäki, Leena: Jatkuvan
opiskelun välttämättömyys?
43. Myrskylä, Pekka: Keistä tuli työttömiä?
44. Nummenmaa, Anna Raija, Tarkiainen, Ari: Koulutuksen
ulkopuolella oleva nuori
45. Santamäki-Vuori, Tuire, Sauramo, Pekka:
Lama ja nuorisotyöttömyys
46. Niskanen, Toivo: Accident risks and preventive
measures in material handling at construction
sites
47. Pekkola, Juhani: Etätyön soveltaminen henkilökohtaisella,
tuotanto-organisaation ja työmarkkinajärjestelmän
tasolla
48. Heikkinen, Pekka: Työelämän sopimusjärjestelmä
ja ammattitaitokysymykset Suomessa ja viidessä
muussa OECD-maassa
49. Saarinen, Mikael, Huuhtanen, Pekka, Lindström,
Kari: Tulosjohtaminen ja henkinen hyvinvointi
työhallinnossa
50. Backberg, Kristiina: Palkansaajien järjestäytyminen
Suomessa 1990
51. Sumelahti, Juha: Työympäristömääräysten ja
työsuojeluhallinnon hankkeiden taloudellisten
vaikutusten arvioiminen
52. Haataja, Lauri: Suomen malli 1940 - 1956
53. Koivisto, Tapio: Työsuojelu ja osallistuva työorganisaatio
54. Paananen, Seppo: Työvoimaa rajan takaa
55. Eronen, Marja, Ravaja Niklas: Psyykkisesti vajaakuntoiset
työnhakijoina
56. Timonen, Sakari: Paikallinen sopiminen yrityksissä
57. Heikkilä, Petri: Palkkaturvan rajoittaminen ja takaisinperinnän
kohtuullistaminen
58. Mannila, Simo: Työhistoria ja syrjäytyminen.
Vaikeasti työllistyvien terveysongelmaisten elämänkulusta
59. Työelämän tutkimusohjelma 1994 - 1996
60. Jaakkola, Magdalena: Suomalaisten ulkomaalaisasenteet
1980- ja 1990-luvulla. Ennakkotietoja
tutkimuksesta
61. Viinamäki, Leena: Vielä sitä vanhanakin voi
opiskella. Tutkimus työvoimapoliittisen intervention
mahdollisuuksista
62. Räisänen, Heikki: Työmarkkinakoulutus OECDmaiden
työvoimapolitiikassa. Tutkimusraportti
työmarkkinakoulutuksen tavoitteista, voimavarojen
käytöstä ja tuloksista OECD-maiden
työvoimapolitiikassa
63. Tallberg, Tuija, Tammi, Matti, Mattila Markku::
Turvallisuus laatujärjestelmissä
64. Naschold, Frieder: The Politics and Economics
of Workplace Development. A Review of
National Programmes
65. Repo, Paula: Henkilöstörahastot Suomessa
66. Hakonen, Marko: Palkitsemisen ongelmat tutkimus-
ja kehitysryhmissä
67. Turtiainen, Juhani: Työnhakijat ja työnvälitys.
Työnvälitystoiminnan laadun, tehokkuuden ja
tuloksellisuuden arviointiin liittyviä ongelmia
työnhakija-asiakaspalautteen näkökulmasta
68. Mikkola, Tuija: Kuka maksaa palkkaturvan?
69. Työympäristötutkimus Suomessa ja sen painoalueet
70. Kojo, Ilpo, Liinasuo, Marja: Sisäiset mallit ja
kvalifikaation arviointi etätyöympäristössä
71. Sääski, Niilo: Starttirahayritysten selviytyminen.
1988 - 1992 aloittaneet yritykset
72. Ylöstalo, Pekka, Kauppinen Timo: Työolobarometri
marraskuu 1993

73. Niskanen, Toivo: Työllistämisen uusia keinoja
korjausrakentamiseen
74. Jari Mielonen: Akateemisen työttömyyden
omaehtoinen hoitaminen. Seurantatutkimus
Kymen läänin Keino-projektista
75. Köykkä, Virpi: Työnantajien muuttuvat strategiat
76. Ailo Uhinki, Carl-Erik Mattlar, Camilla
Forsander, Erkki Alanen: Ammatinvalintapsykologin
Z-käsikirja Zulligerin ryhmätekniikan
käyttöä varten
77. Maija Polus (toim.): Työvoimatoimistojen
palvelut tutkimuksen kohteena - yhteenveto
tuloksista
78. Pekka Myrskylä, Kaija Ruotsalainen: Työttömät
1993. Selvitys työttömien taustoista
79. Markku Talonen, Mika Tuomaala: Työvoimatoimistojen
tuloksellisuus
80. Seppo Paananen, Pekka Ylöstalo: Rakenne ja
muutos. Palkansaajaväestön rakenne 1989 -
1991
81. Timo Kauppinen: Transformation of Labour
Relations in Finland
82. Action Research in Finland
83. Risto Harisalo: Työn luominen; Askel kohti toista
teollista vallankumousta Suomessa
84. Jussi Vahtera, Sinikka Soini: Psykososiaaliset
voimavarat ja tasa-arvo työssä
85. Eija Kupi: Työympäristön ja tuottavuuden vuorovaikutus
yritystason näkökulmasta
86. T. Kauppinen, M. Lehtonen: National Action Research
Programmes in the 1990's
87. Pauli Juuti: Työvoimakoulutuksen vaikuttavuus
yrityksen näkökulmasta
88. Heikki Räisänen: What kind of Policy Instrument
is Labour Market Training?
89. Jukka Kohtanen, Vesa Rantahalvari:
Palveluiden laatu työvoimatoimistoissa. Valtakunnallinen
raportti eri asiakasryhmien palvelupalautteesta
maaliskuussa 1994
90. Jorma Vilhunen: Työttömien omaehtoisen toiminnan
suuntautuminen Suomessa
91. Jukka Vuori & Tiina Tervahartiala: Työttömien
työnhakuaktiivisuus ja koettu terveys
92. Tuula Mikola-Lahnalammi & Tuomo Alasoini:
Suora osallistuminen metalliteollisuudessa ja
pankkitoiminnassa. Työmarkkinajärjestöjen näkemyksiä
93. Frieder Naschold: The Modernization of the
Public Sector in Europe
94. Heikki Räisänen: Työvoimakoulutuksen tuloksellisuus
95. Iiris Mikkonen: Työvoimapoliittiseen aikuiskoulutukseen
hakeutuminen ja koulutuksen kokeminen
96. Petri Virtanen: "Jos huominen tuo jotain uutta..."
Tutkimus pitkäaikaistyöttömien nuorten työllistämisestä
ja nuoria koskevan syrjäytymisproblematiikan
luonteesta
97. Markku Hakuli, Hannu Katajamäki, Pirkko
Vartiainen: Mistä on hyvä tulos tehty?
Työllistämistukien tuloksellisuuden monitahoarviointi
98. Leena Viinamäki: Pitkospuita työ- ja koulutusmarkkinoista
99. Robert Arnkil:Työhallinnon uudelleenrakenteistuminen
alueellis-paikallisesta näkökulmasta
100. Juhani Pekkola: Euroopan Unionin etätyöpolitiikka
ja alueiden kehittäminen
101. Magdalena Jaakkola: Suomalaisten kiristyvät
ulkomaalaisasenteet
102. Mika Rihtilä, Heikki Rouhesmaa: Henkilöstötaloudelliset
laskentakäytännöt suomalaisissa
metsäteollisuusyrityksissä
103. Ritva Lindroos: Yrittäjien työelämäkerrat ja
ammatissa selviytyminen
104. Raija Julkunen, Jouko Nätti: Muuttuvat työajat ja
työsuhteet
105. Martti Kairinen, Anja Rantanen-Lahti, Heikki
Uhmavaara: Yhteistoiminta työelämässä
106. Simo Aho - Pasi Koski: Yrittäjyyden rakennemuutos
ja kasvualat
107. Tuire Santamäki-Vuori, Pekka Sauramo:
Nuorten työttömyys Suomessa vuosina 1993-94
108. Pauli Juuti, Iiris Mikkonen & Heikki Räisänen:
Three Essays on Labour Market Training.
Company, Individual and Policy Perspectives.
109. Pekka Salo, Raimo Sten: Organisaation
johtaminen menestykseen.

110. Aarne Mattila: Cooperation and participation at
Finnish workplaces.
111. Nygård C-H, Virtanen P, Saloniemi A, Koivisto
T, Systä M, Kaukiainen A: Työkyvyn ylläpito ja
terveydenhuolto työttömyyden aikana
112. Ylöstalo P, Kauppinen T.:
Työolobarometri marraskuu 1994
113. Sakari Timonen: Paperiteollisuuden tervehdyttämisohjelmat
114. Pirkko Jukka: Yrittäjyys Suomessa - keskeisiä
tilastoja ja aikasarjoja yrittäjyydestä
115. Kari Stachon: Conseptualizing Work and
Chances in Organisational Paradigm
116. Leena Lahti-Kotilainen & Teija Mankkinen: Työpaikan
arvot ja ihmiskäsitykset tuloksentekijöinä
117. Johanna Kuusela & Kari Luonteri: Työympäristön
ja tuottavuuden välinen yhteys -
Kokemuksia mekaanisen puunjalostuksen toimialalta
118. Simo Aho, Riikka Kivimäki, Pasi Koski: Uusi,
kestävä yrittäjyys
119. Pasi Vainio & Erkki Hirsimäki: Itseohjautuvat
työryhmät ja turvallisuus
120. Työvoimatoimistojen palvelujen laatu ja nykytila
(toim. Jukka Kohtanen)
121. Kari Viinisalo: Tekmannien kehityshanke 1992 -
1995. Yrittäjyyden ja valtuuttavan johtamistavan
maastouttaminen talotekniikka-alan yrityksessä
122. Evaluating Labour Market Training - Outcome
and effectiveness (toim. Heikki Räisänen, Iiris
Mikkonen)
123. Jaakko Virkkunen: Työpaikkatarkastuksen
ristiriidat ja niiden ylittämisen mahdollisuudet.
Tutkimus keskusteluun perustuvan työn
välineistä ja tuloksellisuudesta
124. Paula Kyrö, Jouko H. Nissinen: Yritä itse.
Murroksen kautta jälleenyrittäjyyteen
125. Pertti Linkola: Liiketoiminnan kehittäminen ja
verkostot
126. Asko Heikkilä: Työlainsäädäntö ja sosiaaliturva
etätyössä
127. Pekka Alajääskö, Seija Parviainen: EMU ja
työllisyyspolitiikka
128. Paula Repo: Työlait ja työehtosopimukset
Suomessa, Ruotsissa, Saksassa, Ranskassa ja
Britanniassa
129. Iiris Mikkonen: Työvoimakoulutus ja työmarkkinapolun
käänteet
130. Työvoima 2010. Integroituva Eurooppa ja
Suomen työllisyysnäkymät
131. Tuire Santamäki-Vuori:Pitkäaikaistyöttömien
työmarkkinakokemukset lamavuosina 1993-94
132. Kari Vähätalo: Pitkäaikaistyöttömät ja lamasta
selviytyminen - tutkimus pitkäaikaistyöttömien
työmarkkina-aseman ja sosiaalisen huonoosaisuuden
muotoutumisesta vuosina 1993-
1994
133. Paula Repo: Ylityö ja työaikojen monipuolistaminen
pienissä ja keskisuurissa yrityksissä
134. Turo Bergman: PK-yritykset työllistäjinä rakennemuutoksessa.
EU:n rakennerahastot muutoksen
välineenä
135. Heikki Räisänen: Työvoimakoulutuksen talous ja
vaikuttavuus. Työvoimakoulutuksen makrotasoisen
vaikuttavuustutkimuksen loppuraportti
136. Arvioita EU:n sisämarkkinoiden ja EMU:n
kolmannen vaiheen vaikutuksista Suomen
työmarkkinoihin. Työryhmäraportti
137 Timo Kauppinen - Jyrki Laaksonen: Verkostoavusteinen
työelämän kehittämisohjelma
138 Linda Sandqvist: Palkansaajien järjestäytyminen
Suomessa 1994
139. Erkki Saari: Joustoilla työtä?
140. Päivi Naumanen - Heikki Silvennoinen: Työn ja
koulutuksen vuoropuheluun. Työelämän
koulutustarpeet osa 1.
141. Päivi Naumanen - Heikki Silvennoinen: Löytyykö
työtä? Työelämän koulutustarpeet osa 2.
142. Pasi Holm - Marjo Pyy - Juha Rantala:
Kotitalouden tulot ja työllistyminen vuosina
1987-1992.
143. Maija Polus - Elisabet Heinonen - Anja Lyra:
Asiakasryhmien laatuselvitys.
144. Simo Aho - Jouko Nätti - Asko Suikkanen:
Työvoimakoulutuksen ja tukityöllistämisen
vaikuttavuus 1988-1992.
145. Työolobarometri 1995.

146. Simo Aho, Riitta Lavikka, Toomas Piliste, Juhan
Teder, Merle Varendi: Making the way in to the
market economy
147. Ilkka Haavisto: CAP och det finlandssvenska
jordbruket
148. Maarit Lahtonen: Demokraattinen dialogi
metalliteollisuudessa. Työpaikkojen
kehittämisohjelman arviointitutkimus
149. Anna Raija Nummenmaa: Koulutus, sukupuoli ja
elämänkulku. Nuoruudesta aikuisuuteen
yhteiskunnallisessa muutoksessa
150. Petri Virtanen: The making of a new underclass
among the unemployed youth? Emerging social
exclusion, the mechanisms of integration and
the need for active and network-based
employment strategies
151. Tuija Johansson: Muutoksen välttämättömyys.
Lapin työhallinnon kehittämistoiminta vuosina
1991-1995
152. Juha Kettunen: Työvoimapolitiikan aktivointi
Pohjoismaissa
153. Anne Andersson: Hela Svenskfinland - din
arbetsmarknad
154. Jari Karjalainen:Työosuustoiminta työllistymisen
välineenä
155. Marianne Johnson - Pekka Myrskylä:
Työttömäksi - takaisin töihin
156. Mika Stepanoff: Työpaikkojen metsästäjät
157. Timo Tohmo: Työllisyyspoliittisen rakennetuen
vaikutukset
158. Juhani Pekkola - Pekka Ylöstalo: Tietotyö ja
työmarkkina-asema. Tietotyön yhteyksiä
työmarkkina-asemaan Suomessa vuoden 1993
työolobarometrin perusteella
159. Taija Härkki: Työllistyminen mikroyrittäjäksi
kotipalvelualalle
160. Veikko Hakanen - Timo Kauppinen - Paula
Repo - Arto Tähtinen: Työlakien ja
työehtosopimusten soveltaminen Suomessa,
Ruotsissa, Saksassa, Ranskassa ja
Britanniassa
161. Veikko Hakanen - Timo Kauppinen - Paula
Repo - Arto Tähtinen: Implementation of Labour
Laws and Collective Agreements in Finland,
Sweden, Germany, France and Great Britain
162. Kaija Sepponen: Koulutus - portti
työmarkkinoille? Tutkimus työttömän arjesta ja
ammatinvaihtoon ohjaavasta kurssista
163. Hannu Katajamäki: Paikallisen kumppanuuden
yhteisö
164. Ritva Lindroos: Kiusaamisen kurjuus yhteisöissä
ja työyhteisöissä
165. Jukka Kohtanen: Asiakaspalaute 1996.
Valtakunnallisen kyselytutkimuksen tulokset ja
vertailu vuosiin 1994-95. 1997.
166. Tapio Bergholm: Ammattiliiton nousu ja tuho.
1997.
167. Valtion talousarvion työllisyysvaikutukset. 1997.
168. Marya Zamindar: Forecasting flexibility. The
impact of flexibility on workers in Finland. 1997.
169. Työolobarometri 1996. 1997.
170. Hanna Liikanen: Strategisia selviytymissopimuksia?
Tutkimus neljän yrityksen työaikajärjestelyistä
1990-luvun puolivälissä. 1997.
171. Timo Anttila: Työajan lyhentäminen ja
uudelleenorganisointi. 6+6 tuntia työaikamallin
toteutus suomalaisyrityksissä. 1997.
172. Jouko Nätti, Sauli Ruuskanen, Ilkka Virmasalo:
Vuorotteluvapaan liikkeellelähtö. Vuorotteluvapaakokeilun
seurantatutkimuksen väliraportti.
1997.
173. Sirpa Kolehmainen-Linden: Occupational and
career opportunities of women in femaledominated
occupations. 1997.
174. Iiris Mikkonen: Työvoimakoulutus osana
työmarkkinapolkua. Koulutuksen vaikuttavuus
yksilötasolla. 1997.
175. Pasi Koski, Petri Räsänen, Gerd Schienstock:
Kohti verkostomaisia toimintatapoja:
tapaustutkimukset konetehtaasta ja
mekatroniikkatehtaasta. Tuotantojärjestelmien
organisatoriset ja sosiaaliset innovaatiot -
tutkimusprojektin väliraportti. 1997.
176. Kari Hietala: Kolmas sektori potentiaalisena
työllistäjänä. 1997.
177. Marya Zamindar: Enterprise Flexibility and
Personnel Training. Statistical analysis of in-firm
training in Finland. 1997.
178. Maija Polus: Työnantajien kokemukset
työvoimatoimiston palveluista 1996 ja 1995.
1997.

179. Osmo Rahikainen, Pekka Ylöstalo: Työelämän
muutos Suomessa ja lähialueilla. Tutkimus
Helsingistä, Pietarista ja Tallinnasta. 1997.
180. Jouko Nätti, Sauli Ruuskanen, Ilkka Virmasalo:
Vähän mutta hyvää. Vuorotteluvapaakokeilun
seurantatutkimuksen loppuraportti. 1997.
181. Aila Mustonen: Pitkäaikaistyöttömäksi
valikoituminen. 1998.
182. Tuomo Tohmo: Työllisyyspoliittisen
rakennetuen vaikutukset. 1998.
183. Jyrki Y. J. Laaksonen: Joustavampi työ,
vaativampi johtaminen. Esitutkimus erityisesti
palvelualan yritysjohdon suhtautumisesta
epätyypillisiin työsuhteisiin ja niihin liittyviin
lainmuutoksiin. 1998.
184. Työvoima 2017. Paranevaan työllisyyteen ja
hyvinvointiin uuden vuosisadan alkaessa.
Väliraportti. 1998.
185. Toim. Kai Niinimäki: Networking in Business
- Interaction in Working Life. Seminaarijulkaisu.
1998.
186. Pekka Ylöstalo, Osmo Rahikainen:
Työolobarometri. Lokakuu 1997. 1998.
187. Juha Antila: Muuttuva yritys - muuttuvat työajat.
1998.
188. Ilse Julkunen, Ira Malmberg-Heimonen: The
encouter of high unemployment among youth.
A Nordic perspective. 1998.
189. Janne Vesalainen, Jukka Vuori: Työhönryhmämenetelmän
vaikutus työllistymiseen ja
työllistymisen laatuun. 1998.
190. Leena Jokimäki: Pitkäaikaistyöttömyyden
vähentämiseksi suunnatut erityistoimenpiteet ja
niiden vaikuttavuus pääkaupunkiseudulla
vuonna 1996. 1998.
191. Markku Talonen: Työvoimatoimistojen
kokonaistuloksellisuus. 1998.
192. Kari Hämäläinen: Aktiivinen työvoimapolitiikka
Suomen työmarkkinoilla - Taloustieteen
näkökulmia ja tutkimustuloksia. 1998.
193. Kari Hämäläinen: Työvoimapolitiikan
vaikutukset Suomen työmarkkinoilla
- katsaus tutkimustuloksiin. 1998.
194. Kari Alho: Tulospalkkaus - EMU-ajan
palkkausmuoto. 1998.
195. Kivimäki Eero: Tutkimus vuosina 1994 ja 1995
Espooon, Kauniaisten, Kirkkonummen ja
Siuntion alueella perustettujen uusien yritysten
synnystä, kasvusta ja työllisyysvaikutuksista.
1998.
196. Autio Minna: Työn ja opiskelun risteysasemalla.
Tutkimus nuorten työstä ja työorientaatioista
hampurilaisravintolassa. 1998.
197. Kohtanen Jukka: Työvoimatoimistojen
asiakaspalaute 1998. 1998
198. Kemppainen Tarja: Herätys työttömyyden
aiheuttamasta koomasta! Uusi mahdollisuus -
projektin arviointitutkimus. 1998.
199. Tiainen Pekka et al.: Työvoima 2017. Aikasarjaanalyysiosaprojekti.
Bruttokansantuote,
huoltotase, työllisyys, tehdyt työtunnit,
palkkasumma ja työnantajan
sosiaaliturvamaksut Suomessa vuosina 1860 -
2030. 1999.
200. Tiainen Pekka: Työllisyys ja hyvinvointi
vuosituhannen alkaessa. Työvoima 2017.
Loppuraportti. 1999.
201. Nikitin Merja, Rostila Ilmari, Manninen Kari,
Lohiniemi Susanna: Työllisyys ja
elämänhallinta.Työllisyyspolkuprojektin
evaluointia Espoossa. 1998.
202. Anttila Timo, Tyrväinen Paula: Kuntasektorin
työaikakokeilut. Tavoitteet, toteutus ja tulokset.
1999.
203. Kouvonen Anne: Ikäsyrjintäkokemukset työssä
ja työhönotossa. 1999.
204. Ylöstalo Pekka: Työolobarometri 1998. 1999.
205. Antila Juha, Ylöstalo Pekka: Enterprises as
Employers in Finland. Flexible Enterprise
Project. 1999.
206. Antila Juha, Ylöstalo Pekka: Functional
Flexibility and Workplace Success in Finland.
Flexible Enterprise Project. 1999.
207. Aho Simo, Halme Jukka, Nätti Jouko:
Tukityöllistämisen ja työvoimakoulutuksen
kohdentuminen ja vaikuttavuus 1990-1996.
1999.
208. Rantala Juha: Toimipaikkojen
rekrytointikäyttäytyminen. Analyysi
toimipaikkojen rekrytoinneista Suomessa 1997-
1999. 1999

209. Ilmakunnas Pekka ja Maliranta Mika:
Työpaikkojen syntyminen ja häviäminen ja
työvoiman vaihtuvuus. 2000.
210. Laaksonen Jyrki: Palvelualan palkansaajien
kokemukset määräaikaisten työntekijöiden
johtamisesta ja työloista. 1999.
211. Tiainen Pekka: Employment and Welfare in
Finland in the Years of 1860-2030. 1999.
212. Työaikapolitiikka. Työaikapoliittisen työryhmän
loppuraportti. 1999.
213. Jaakkola Magdalena: Maahanmuutto ja etniset
asenteet. 1999.
214. Antila Juha, Ylöstalo Pekka: Working Life
Barometer in the Baltic Countries. 1999.
215. Kouvonen Anne: Lapset ja nuoret palkkatyössä.
2000.
216. Hohti Satu: Toimipaikan koko ja työpaikat
Suomen teollisuudessa. 2000.
217. Ylöstalo Pekka: Työolobarometri 1999. 2000.
218. Jaakkola Timo: Maahanmuuttajat ja etniset
vähemmistöt työhönotossa ja työelämässä.
2000.
219. Arnkil Robert, Spangar Timo, Nieminen Jarmo:
Suomen työvoimapoliittisen uudistuksen
arviointi palveluprosessin ja paikallistoimistojen
näkökulmasta. Evaluoinnin loppuraportti. 2000.
220. Valtakari Mikko: Työvoimapoliittisen
järjestelmän uudistuksen rekrytointia edistävät
vaikutukset. 2000.
221, Ira Malmberg-Heimonen, Jukka Vuori:
Työnhakuryhmätoiminnan vaikutukset
työmarkkina-asemaan ja koettuun terveyteen.
2000.
222. Juha Tuomala: Työnhakukoulutuksen
vaikutusten arviointi. 2000.
223. Mari Kira: The Compensation Systems of
Developing German Organizations. 2000.
224. Simo Aho, Jari Holttinen, Jukka Vehviläinen,
Ilkka Virjo: Vuoden 1998 työvoimapoliittisen
uudistuksen arviointia. 2000.
225. Heikki Mäki-Kulmala: Työttömänä
työyhteiskunnassa - työttömän oikeuksien ja
velvollisuuksien eettistä ja yhteiskuntafilosofista
tarkastelua. 2000.
226. Anne Kouvonen: Koululaisten työssäkäynti ja
ongelmakäyttäytyminen. 2001.
227. Raimo Lahti: Ammatinvalintapsykologien
vastauksia asiakkaiden tiedostamattomiin
odotuksiin. Transferenssi-ilmiöiden merkitys
ohjauksen vuorovaikutuksen ja tulosten
näkökulmasta. 2001
228. Pekka Ylöstalo: Työolobarometri. Lokakuu
2000. 2001
229. Juha Antila: Työajat moderneissa ja
perinteisissä toimipaikoissa. 2001
230. Kari Vähätalo: Lama ja kaupunkien
pitkäaikaistyöttömät. 2001
231. Reima Suomi: Proceedings of t-world 2001,
Helsinki 13.9.2001
232. Merja Hutri: Yksilön ammatillisen kriisiytymisen
tunnistaminen stressitekijöiden, työhön liittyvien
selitystapojen ja tunteiden perusteella. 2001
233. Simo Aho, Susanna Kunttu: Työvoimapoliittisten
toimien vaikuttavuuden tutkiminen
rekisteriaineistojen avulla. 2001
234. Työvoima 2020. Työllisyys uuden
vuosituhannen alussa. Väliraportti. 2002
235. Hanna Pesola: Kohtaamisfunktio Suomessa.
2002
236. Pekka Ilmakunnas and Mika Maliranta: The
Turnover of Jobs and Workers in Finland. 2002
237. Kiuru Pertti, Pulkkinen Matti, Tiilikka Jussi:
Sisältötuotannon työllisyysvaikutukset.
Esitutkimus. LTT-tutkimus Oy. 2002
238. Pasi Huovinen, Hannu Piekkola: The time is
right? Early retirements and use of time by older
Finns. ETLA. 2002
239. Juha Antila, Pekka Ylöstalo: Proaktiivinen
toimintatapa. Yritysten ja palkansaajien
yhteinen etu? 2002
240. Jyrki Y. J. Laaksonen: Kuntatyönantajan
edustajien näkemyksiä määräaikaisesta työstä
kunnissa. Esitutkimus. 2002
241. Pekka Ylöstalo: Työolobarometri, lokakuu 2001.
2002
242. Ilkka Virjo, Simo Aho: Ikääntyvien työllisyys
1990-luvulla. Rekisteritutkimus yli 50-vuotiaiden
erityisongelmista työmarkkinoilla. 2002

243. Matti Vartiainen, Christina Sweins:
Henkilöstörahastot Suomessa – toimivuus ja
kannustevaikutukset. 2002
244. Eeva-Leena Vaahtio: Rekrytointi, ikä ja ageismi.
2002
245. Työvoima 2020. Osaamisen ja täystyöllisyyden
Suomi. Loppuraportti. 2003
246. Lasse Ahtiainen: Palkansaajien järjestäytyminen
Suomessa vuonna 2001. 2003
247. Juha Antila and Pekka Ylöstalo: Working Life
Barometer in the Baltic Countries 2002. 2003

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