Lithuania: government and social partners about to sign a far-flung national agreement

Drastic cost-cutting program. Initially, the text was mostly a plan to financially save the State and the social security from 2009 to 2012. it provided for layoffs and new wage cuts (8-10% in average, depending on categories) in the public sector, a VAT increase, from 19 to 21%, social contributions brought from 6 to 9% of gross earnings, pension cuts and reduced paternity and maternity allowances (90% of salary the first year and 75% the second as opposed to 100% and 85% before), pushing retirement age to 65 for men and women, as opposed to 62.5 for men and 60 for women…. At the same time, the government reasserted its will to soften regulations on industrial relations.
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ntributions brought from 6 to 9% of gross earnings, pension cuts and reduced paternity and maternity allowances (90% of salary the first year and 75% the second as opposed to 100% and 85% before), pushing retirement age to 65 for men and women, as opposed to 62.5 for men and 60 for women…. At the same time, the government reasserted its will to soften regulations on industrial relations.

“We would all be affected.” However, neither unions (Confederation of Lithuanian Unions, Solidarumas) nor emp

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