Roughly ten years ago Latvia’s construction sector was under the spotlight with a high profile court case that pitted Latvian construction company Laval un Partneri Ltd against the Swedish construction trade union Byggnadsarbetareförbundet. In a sign that times have changed, industrial relations have matured, and that the construction sector needs to alter its image, the sector’s major employers have, after two years of negotiations, just signed a collective agreement that in particular sets minimum salary levels. The agreement will be officially signed on 10 May and, if it is approved by companies representing more than 50% of the sector’s total business turnover, could be extended across the whole sector.
Construction – a strategic sector in Latvia. The construction industry is key for Latvia because:
- It contributes more than €1 billion in business revenues
- It is the sector with the greatest level of international competition
- There is a great deal of potential for growth and thus the need to intend for reforms that will benefit companies and workers.
The goals of the agreement are to rehabilitate a sector whose image is tarnished with illegal labor and tax fraud practices, bring about self-re
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