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Description
The objective of the Project was to strengthen social dialogue at the EU level and national level and its effect on reducing undeclared work, as well as improving working conditions in the Latvian construction sector.
Construction industry is one of the largest employers in Latvia, and contributed to about 7% of the Latvia’s GDP in 2018. However, statistics show that the size of the shadow economy in the construction sector was about 35 % in 2017, and the main component is undeclared work, in particular envelope wages.
The Project expected to reach the following outcome: improve social dialogue and stronger cooperation. Activities were organised around three main elements:
- firstly, improving the trust of partner''s organisations in social dialogue activities initiated by the LBP, supported by in-depth surveys and analysis
- secondly, building capacity of the LBP to take part in EU level social dialogue on issues related to undeclared work and decent work.
- thirdly, improving the enforcement of legislation, the Collective agreement on minimum wage in construction sector, as well as influencing the policy decisions to enhance the social dialogue as a tool to reduce undeclared work and improve working conditions.
The project included the following activities:
- 2 annual studies to measure the size of shadow economy and its impact on the competitiveness of the construction industry and the factors affecting it (in particular undeclared work).
- at least 3 experts’ analysis on best practices, self-regulation tools, including collective agreements impact on industry’s competitiveness and potential further developments to promote the use of social dialogue instruments, and social dumping and its impact on strategic public procurement
- exchange of best practices, in particular Nordic countries
- 7 awareness-raising events on enforcement of measures tackling undeclared work and improving working conditions
- guidelines and tools
Summary of project results
The project aimed to address challenges in the Latvian construction sector related to the shadow economy and undeclared work, particularly in the form of envelope wages, which constituted 35.2% of the construction industry. These issues hindered fair competition, socio-economic development, and the overall working conditions for employees. The project sought to strengthen social dialogue at both the EU and national levels to reduce undeclared work, improve working conditions, and enhance the enforcement of legislation and collective agreements.
The project aimed to address significant challenges in the Latvian construction sector related to the shadow economy and undeclared work, particularly in the form of envelope wages, which constituted 35.2% of the industry. These issues hindered fair competition, socio-economic development, and the overall working conditions for employees. The project sought to strengthen social dialogue at both the EU and national levels to reduce undeclared work, improve working conditions, and enhance the enforcement of legislation and collective agreements.
The project achieved several key outcomes, including strengthened trust in social dialogue as an effective tool to improve living conditions for workers, fight the shadow economy, and enhance the competitiveness of the industry. It strengthened Latvian contributions to tripartite cooperation at both national and EU levels, increased bipartite dialogue consultations, and built the capacity of LBP by training its professional staff and acquiring best practices from other member states. The project established a committee to supervise the implementation of the collective agreement, enhanced reliable data on the shadow economy, and provided awareness and knowledge to various stakeholders about project-related issues. The primary beneficiaries were workers in the construction sector, who gained improved working conditions and better enforcement of their rights, and employers, who benefited from fair competition and a more attractive investment environment. Overall, the project contributed to promoting socio-economic development, fair competition, and improved investment environments in Latvia.