Lithuanian Businesses Propose Labor Code Changes for Minimum Wage Agreements

Lithuanian businesses are advocating for changes to the Labor Code to better regulate the minimum monthly wage (MMA). The Lithuanian Business Confederation (LVK) supports Social Protection and Labor Minister Inga Ruginienė's view. Ruginienė believes that the agreement reached in the Tripartite Council in June, concerning next year's MMA, should be formalized within collective agreements.

However, business representatives point out a critical issue: the current Labor Code does not provide a mechanism for enshrining the MMA within collective contracts. They argue that this legal gap hinders the implementation of the agreed-upon minimum wage. To address this, the LVK proposes amending the Labor Code to allow for such provisions.

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The Lithuanian Business Confederation (LVK) agrees with the Social Protection and Labor Minister Inga Ruginienė that trade unions and employers should have enshrined the agreement reached in the Tripartite Council in June on the size of the minimum monthly wage (MMA) for next year in the collective agreement.

This push for legislative change reflects a desire among businesses to solidify wage agreements through established labor relations channels. It suggests a move towards more structured negotiations between employers and employees, mediated by collective bargaining. The proposed amendment aims to align the legal framework with the practicalities of wage setting and labor negotiations in Lithuania.

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However, business representatives draw attention to the fact that the current Labor Code does not provide such an opportunity and suggest changing it.