LDDK Representatives Visit Brussels to Strengthen Employer Advocacy and Learn Best Practices in Social Dialogue

Last week, representatives of the Employers’ Confederation of Latvia (LDDK) visited Brussels, where they met with representatives of Scandinavian employers’ organizations and Latvian Members of the European Parliament (MEPs), as well as participated in an event organized by BusinessEurope.

The main goals of the visit were to learn about good practices in social dialogue and to promote the involvement of Latvian MEPs in defending employers’ positions.

Reaction to the European Court of Justice (ECJ) Advocate General’s Opinion on the Minimum Wage Directive

In response to the European Court of Justice’s (ECJ) Advocate General’s opinion on the minimum wage directive in Case No. C-19/23 “Kingdom of Denmark v. European Parliament and the Council of the European Union”, LDDK visited Brussels and held discussions with the employers’ confederations of Denmark, Sweden, and Norway, as well as with MEPs Roberts Zīle and Rihards Kols, and representatives of Valdis Dombrovskis’ office.

From the perspective of LDDK and other employers’ organizations, the implementation timeline of the minimum wage directive regarding changes to national-level legislation should be reviewed, as the directive’s objectives may be amended or even repealed. The Advocate General’s arguments are based on how to interpret the minimum wage directive, given that the competence to set wages is not specified in Article 153(5) of the Treaty on the Functioning of the European Union (TFEU). The ECJ’s ruling in this case is expected in May this year.

Experience Exchange with Scandinavian Employers’ Organizations

The relationships between the Scandinavian employers’ confederations and trade unions are based on mutual understanding and the ability to agree on common goals that enhance competitiveness. Employers involve trade unions in matters concerning the development of the business environment, thereby creating benefits for both sides.

If companies are competitive and have strong growth potential, employees also benefit significantly, which improves their working conditions. Interestingly, in Denmark, it is the employers and trade unions who are responsible for shaping employment policy and the conditions set in the regulatory framework. This mutual responsibility is likely the key to their successful cooperation model.

Scandinavian employers emphasized the importance of strengthening relations with Baltic country representatives, particularly regarding security issues and how the current geopolitical situation affects the business environment, as well as the new opportunities it may create for entrepreneurs who have had to reorient their businesses to Western markets.

It is worth noting that former NATO Secretary General Jens Stoltenberg is preparing an independent report with policy recommendations to promote Baltic-Nordic cooperation in security and defense.

BusinessEurope Event: “Reboot Europe: European Economic Success – Every Business Counts”

On 15 January, LDDK participated in an event organized by BusinessEurope with MEPs to present its priorities for the next EU cycle by publishing “Reboot Europe: European Economic Success – Every Business Counts”.

BusinessEurope outlined what MEPs must achieve in their first 100 days and beyond. The action points include reducing bureaucracy, lowering energy costs, diversifying export and import markets, promoting the digital economy, and fostering innovation.

LDDK invited MEP and Vice-President Roberts Zīle to join the event. He noted that the listed priorities and action items are essential and achievable. However, he highlighted that the comprehensive report does not mention the demographic situation and its impact on businesses, nor possible solutions. He also pointed out that the defense industry is not mentioned at all and questioned whether European employers are ready to push politicians to make this sector business-friendly and whether employers are prepared to restructure part of their business toward the military industry.

Representing Latvian Employers’ Positions at the EU Level

During the meeting with MEP Rihards Kols, important EU-level initiatives for employers were discussed, as well as how to communicate them effectively to MEPs in the future. Regarding international trade developments, R. Kols outlined the current situation regarding the EU–Mercosur agreement, stressing that in his view, this agreement is an important step to help entrepreneurs enter new markets or strengthen their positions in existing ones.

LDDK also considers this an important international agreement whose opportunities should be used while paying attention to risks that could affect certain sectors. Therefore, a national-level dialogue is needed on support and compensation mechanisms for implementing such an agreement.

During the meeting with Valdis Dombrovskis’ office, LDDK emphasized the importance for employers of implementing V. Dombrovskis’ plan to reduce bureaucracy by at least 25% (and by at least 35% for small businesses). Mechanisms must be created to avoid introducing new administrative burdens and significantly reduce the existing ones.

Regarding reducing the existing administrative burden, BusinessEurope and LDDK will submit 68 proposals to the responsible commissioners for changes to EU-level political and legislative initiatives. The European Commission’s report on the future plan for reducing bureaucracy is expected to be published at the end of February this year.

Active Employer Involvement in Policy-Making

EU policy initiatives are crucial and decisive for the development of Member States. However, it should be remembered that these initiatives often result in new legislation that can impose additional obligations on businesses. Frequently, these new obligations can lead to more bureaucracy for companies trying to ensure a supportive business environment and growth.

One of LDDK’s priorities this year is to become even more actively involved in drafting EU and national-level policy documents and legislation to make business and the single market easier, promote the economy, reduce energy costs, encourage investment in research and innovation, enhance productivity and digitalization, and address skills and labor shortages.