Content

Content 1

Mission of LDDK 2

Most significant events in 2005

Council of LDDK 3

President’s message 4

Message of General Director 5

Growing awareness of the significance of social dialogue 6

Socially responsible employer – investment in development 7

Improvement of business environment 8

Facilitating cooperation among scientists and entrepreneursfor the strengthening of innovation process 10

Educated people – the basis of the development of national economy 12

Complex approach for solving employment issues 13

Social security – the basis of the stability of society 14

Shall we establish a high quality and effective health care? 15

Ethical labour relations – the basis for fare competition 16

Requirements for work environment and costs should be proportionate 17

With international experience – towards future perspective 18

For more than a decade Employer’s Confederation of Latvia (LDDK) has been thelargest organization that represents the interests of employers at national and inter-national level. LDDK represents 22 Latvian economic sectors, professional and region-al associations, as well as companies employing more than 50 people. In total, morethan 25% of Latvian employees are employed by LDDK members.

Mission of LDDK Increase effectiveness of entrepreneurship and employment development by

observing interests of the public at large, and strengthening and developmentof Latvian employers and their organizations;

Provide growth for Latvian employers, enhance the development of enterpriseculture and creation of favourable social conditions;

Represent economic, social and professional interests of members according tothe Law on Employer’s Organizations and their Associations;

Represent the interests of its members in relations with trade unisons, publicand municipal authorities as well as employers’ organizations;

Provide LDDK members with an opportunity to participate in negotiations ofissues of their interest at all government levels.

Most significant events in 2005 LDDK, the Cabinet of Ministers and Free Trade Union Confederation of Latvia

sign an agreement on the increase of NTCC (National Tripartite CooperationCouncil) status. Starting from 2006 NTCC will operate under the supervision ofPrime Minister of Latvia and three new subcouncils of NTCC will start their work – Subcouncil of Environmental Protection, Tripartite CooperationSubcouncil of Regional Development and Tripartite Cooperation Subcouncil ofTransport, Communications and Information Technologies.

LDDK and Ministry of Foreign Affairs of the Republic of Latvia sign agreementon cooperation with the aim to enhance the representation of social, economicand business interests of Latvia abroad.

LDDK obtains the status of Observer at the Business and Industry AdvisoryCommittee (BIAC) to the Organisation for Economic Cooperation andDevelopment (OECD). The status of Observer provides the opportunities tocooperate with the business organizations of the most developed countries andto contribute to the development of OECD policy.

Technology and Economy Partnership Council commences its work. It developsa cooperation model for employers of LDDK and researchers, and submits anAppeal to the Government concerning the enhancement the introduction ofinnovations in Latvia.

LDDK becomes a focal point of United Nations Organization’s (UNO) GlobalCompact in Latvia.

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President – Vitålijs Gavrilovs limited company Ladeko

Vice-presidents

Juris Bi˚is Joint stock company Latvijas Finieris

Valdis Jåkobsons Latvian Chemistry and Pharmacy Employers’ Association

Kirovs Lipmans Joint stock company Grindeks

Vasilijs Me–iks Limited liability company Eiroholdings

Teodors Tverijons Association of Latvian Commercial Banks

Aiva Vîksna Limited liability company Lietiß˚ås informåcijas dienests

Andris Zorgevics State joint stock company Latvijas Dzelzce??

Council Members

Jånis Bertrands Limited liability company Baltijas logi

Juris Binde Limited liability company Latvijas Mobilais Telefons

Jånis Dirba Latvian Energy Constructors’ Association

Rolands Gulbis Joint stock company Latvijas Balzams

Jevgéñijs Kaléjs Latvian Hospitals’ Association

Vilmårs Lucåns Latvian Municipality Employers’ Association

Larisa Polosuhina Limited liability company Rîgas Laku un Kråsu Rüpnîca

Viktors Puriñß Latvian Constructors’ Association

Vilnis Rantiñß Association of Mechanical Engineering and Metalworking Industries of Latvia

Ivars Strautiñß LKSCS Turîba

Gundars Strautmanis Limited liability company Lattelekom

Arkådijs Sußkins Césis District Entrepreneurs’ Club

Edgars Íîns Limited liability company Latio

Valérijs Terentjevs LSEZ joint stock company Liepåjas Metalurgs

Council of LDDK

PRESIDENT’S MESSAGEJoin to ensure competitiveness!

Members of Employers’ Confederation of Latvia are constantly facing new challenges, since Latvia as an EU memberstate has become a full-fledged participant of international policy formation process. The ability of entrepreneurs todemonstrate their opinion by the agency of employers’ organizations and their associations becomes crucial in provid-ing a long-term competitiveness of their enterprises.

I can proudly admit that LDDK has taken an important step in becoming a part of family of most developed countries inthe world by obtaining the status of Observer at the Business and Industry Advisory Committee (BIAC) to the Organisationfor Economic Cooperation and Development (OECD). LDDK has increased its participation as an associate member at Unionof Industrial and Employers’ Confederations of Europe (UNICE). Participation in the mentioned organizations provides theopportunity to cooperate with the employers’ of other countries of the world as well as contribute to the increase of impactof the organizations and formation of opinions. LDDK has strengthened its cooperation with Ministry of Foreign Affairs ofthe Republic of Latvia by signing agreement on cooperation with the aim to join European social dialogue and to improveLatvia’s national position in EU as well as to enhance the identification of Latvian entrepreneurs in international market.

A rapid economical growth and entrepreneurship’s activity can be observed in Latvia. The reforms implemented in thecountry and integration in EU at large have positively influenced economic development and business environment,though in many cases legislative acts have been adopted too strictly, thus reducing the competitiveness of Latvian entre-preneurs. We have to do our best to ensure that the implementation of structural reforms in Latvia provides economi-cal development stability, process of convergence and a more complete integration in European and world economy.Latvian entrepreneurs and public authorities will have to proceed with an intensive participation in the formation of EUinternal market and cooperation in introducing favourable Service Directive. It is important to ensure equal conditionsfor competitiveness and to increase the export potentialities of Latvia’s products and services, thus fostering the growthof enterprises, prosperity of people and social peace in the country. Currently the competitiveness of enterprises is stim-ulated by the acquisition of EU structural funds; a better acquisition could be achieved in future by reducing the hold-backs caused by bureaucracy.

In 2005 the joint work of social partners at National Tripartite Cooperation Council has been improved significantly. Thepartners have agreed to cooperate both on traditional issues concerning common interests of employers and employ-ees in social sphere, for instance, supporting fair competition and entrepreneurship, adjusting education system, exter-minating illegal employment and reducing unemployment, and also in such spheres as transport, telecoms and infor-mation technologies, environment protection, regional policy and introduction of single work payment system.

Regions and sectors have experienced development, despite the price increase of oil and energy resources that causedrise in prices of services and goods and wave of inflation affecting each resident of Latvia. Besides, entrepreneurs aremore strongly affected and unfortunately do not find support from public institutions in order to solve problems causedby the economic emigration and to improve coaching of a qualified labour force at vocational schools.

The cooperation of social partners – employers, trade unions and government isextremely important for an effective acquisition of EU funds. Employers create workplaces and maintain them in conditions of tough competition. Socially responsibleemployers, by increasing their investment in national budget, in addition participatein social dialogue with the aim to support entrepreneurship and employment.Changes in legislation are proposed that will unburden the administrative proce-dure and tax burden, especially for small, medium enterprises and beginners inbusiness. LDDK supports the increase of incomes for residents and has appealed toactively involve in exterminating unfair competition caused by shadow economy.

We all together have much to do, and our ideas are supported not only in Latvia,but also in Europe and the rest of the world!

Vitålijs GavrilovsPresident of LDDK

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MESSAGE OF GENERAL DIRECTOREmployers’ organization for the growth of entrepreneurship!

Taking into consideration the significance of aims set in Lisbon Strategy, LDDK along with employers’ organizations ofother new EU member states has commenced the year by signing declaration on the implementation of Lisbon Strategy.LDDK at national level proceeds with the participation at setting up the National Lisbon Action Programme as well assetting up an EU financial planning framework for 2007-2013 that is favourable for Latvia. LDDK has actively involvedin implementation of the mentioned documents in National Development Plan and National framework document ofstructural funds.

LDDK, owing to the contribution of members and support of European Social Fund (ESF), has implemented activities forcapacity building of employers’ organizations and consolidation of employers’ opinions and improvement of represen-tation. LDDK has drawn the attention of public institutions and society upon issues concerned with the fostering ofentrepreneurship and employment, improvement of education system, development of the sectors of economy andstrengthening social partnership at national and regional level. LDDK continues working at evaluation of legal acts inbasic fields of activities of LDDK. Institutional basis of social dialogue – NTSP (National Tripartite Cooperation Council) –is improved and its subcouncils are developed. LDDK has studied the needs of entrepreneurs that will contribute to theenlargement of the representation of employers’ organizations. Normative documents are developed and series of train-ing courses for employers’ organizations are commenced.

The opinion of employers within the scope of LDDK is expressed at public institutions, conferences, seminars and whenanswering questions set by mass media. Field trips are organized for members and mass media representatives in orderto provide them with the opportunity to share the practice in social dialogue and learn about the role of social partnersin other countries. A special emphasis must be put on the participation at the meeting of EU ministers of finance andheads of national banks during the period of Great Britain’s EU presidency and on the Competitiveness Day of UNICE(Union of Industrial and Employers’ Confederations of Europe) „Crossing Frontiers” where the competitiveness of EU inglobal economy was analysed.

Intellectual resources are actively used for representing opinions of employers at national, EU and international level, byparticipating at work of International Organisation of Employers and International Labour Organization. LDDK is provid-ed with a more intensive involvement in the activities of UNICE and BIAC.

LDDK has joined in the improvement of entrepreneurship’s environment with several studies, especially bringing out thestudy of National Bank „Impact of Administrative Procedures for Doing Business in Latvia”. The aim of LDDK was not mere-ly to study the holdbacks caused by bureaucracy, especially for beginners in business and SME, but also to study the opin-ion of employers on the requirements of legislative acts in the field of labour rights and labour protection in order to engagein negotiations with the respective public institutions in future and to express a valid opinion of employers. Besides, atten-tion is drawn upon the fostering of employment and implementation of flexible forms of work in labour market with theaim to duly solve issues on the lack of labour force. Negotiations with Ministry of Welfare of the Republic of Latvia andLatvia Free Trade Union are continued on the amendments in Labour Law. With the support of LDDK Technology andEconomy Partnership Council and members of the forum „Innovations = Profit” sug-gestions for strengthening innovation process are prepared. LDDK annual prize „Forinnovation in entrepreneurship” is introduced – acknowledgement for the most suc-cessful cooperation among Latvian enterprises and research institutions.

I would like to thank LDDK members and their representatives for their participa-tion in solving issues concerning not only their enterprise and respective sector, butalso for jointly responsible participation in fostering national economy and welfareof residents. I would like to thank our cooperation partners – public institutions –for understanding and support! Thank you, Latvian State President, for encourag-ing Latvian entrepreneurs by being present at events important for them.

Elîna Egle,General Director of LDDK

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Growing awareness of the significance of social dialogue20 years of social dialogue on European level weremarked in 2005. On September 29, in Brussels, SocialDialogue Summit convened by EC President José ManuelB a r o s s o took place to look back at the accomplished andto discuss the future of Europe and the role of social part-ners in economic and social modernisation of Europe.During the Summit, the European social partners urgedthe political leaders of Latvia to start active measures tolead Europe out of apathy and expressed support for theLisbon Strategy. They also announced the commence-ment of negotiations on the agenda of the newEuropean social dialogue for the period of 2006 – 2008.Latvia was represented by Mr. Gavrilovs, the President ofthe Employers’ Confederation of Latvia (LDDK) and Ms Egle, General Director of LDDK.

Prime Minister Aigars Kalvîtis, the President of LDDKVitålijs Gavrilovs and the Chairman of the Associationof Free Trade Union Confederation of Latvia PéterisKrîgers signed amendments to regulations of NationalTripartite Cooperation Council (NTCC). The signedamendments foresee that from now on the PrimeMinister will call for and chair the sessions of NTCC,but at the same time each Party of NTCC will remainits right to call for session. Starting from 2006Secretariat of NTCC will work under the jurisdiction ofState Chancellery.

In 2005 LDDK actively organized meetings and discussions with various state and society representatives with theaim to encourage the understanding of awareness of social dialogue and its role in the economic developmentof Latvia.

On February 17 forum organized by LDDK took place „The role of municipalities in fostering entrepreneurship”.At the forum potential candidates to the municipality of Riga City discussed the issues highlighted by Latvianemployers.

On August 26 LDDK Council, the Chairperson of LBAS as well as representatives of Ministry of Finance ofthe Republic of Latvia and NTCC secretariat met Ingr?da ?dre, chairperson of Saeima, in order to discuss thepossible solutions to improve social dialogue among government, employers and trade unions as well as toincrease the role of NTCC.

With the aim to foster the development of social dialogue at municipal level, LDDK together with its cooperationpartners – LFTUC, State Employment Agency and Latvian Association of Local and Regional Governments – par-ticipated at seminars in various towns of Latvia. Local entrepreneurs and representatives of local governmentstook part at the seminars to discuss issues related to the fostering of employment in regions of Latvia as well ason the necessity to launch cooperation on regular basis among employers, employees and executive power ofmunicipality, thus fostering a predictable growth of the business environment.

In 2006 LDDK will proceed with an active cooperation with municipalities of Latvia providing support for devel-opment of social dialogue in municipalities.

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Socially responsible employer – investment in developmentLDDK policy is directed towards providing support to socially responsible enterprises that establish and manage theiractivities following the requirements of state legislative acts as well as participate in organized and structured dialoguefor solving issues at all levels.

Growing competition and outflow of labour force create conditions where employer’s reputation is a key factor whenestablishing relations with employees and cooperation partners both in business environment and public and municipalinstitutions. Reputation of a socially responsible enterprise is especially important when attracting smart and profession-al employers that, in its turn, is a guaranty for the development potentialities of the enterprise.

Corporate social responsibility programmes is one of the most effective tools in establishing and maintaining relationswith target audiences. As far as of year 2000 entrepreneurs in Europe and whole world involve more actively in corpo-rate social development programmes and take advantage of UNO Global Compact platform that allows to increase thecompetitiveness of enterprises; to develop partnership with other enterprises, public institutions and non-governmentalorganizations; to obtain access to UNO knowledge basis and find practical solutions for current issues related to glob-alization. In 2005 LDDK has overtaken the functions of UNO Global Compact cooperation partner due to the termina-tion of UN mission in Latvia, as well as highlights and integrates the issue on socially responsible entrepreneurship byrepresenting employers in spheres of improvement of business environment, education, employment, social security,health care, labour legislation and labour protection.

Activities for the popularization of socially responsible entrepreneurship and UNO Global Compact

In September 2005 in Riga Palace LDDK and entrepreneurs, who have joined in UN Global Compact, participat-ed in discussion with Vaira Vî˚e-Freiberga, President of Latvia, on fostering social responsibility of Latvian entre-preneurs. During the discussion LDDK expressed its opinion on the necessity to expand social dialogue and toenhance the awareness of society on the opportunities for each employer and employee to improve their wel-fare, social security and growth.

At the end of 2005 at the annual reception of LDDK, sociallyresponsible entrepreneurs and social dialogue partners – rep-resentatives of trade unions and public institutions met to lookback at the activities accomplished last year. They talked in aninformal atmosphere about the issues to address in the nextyear. This year the President of Latvia Vaira Vî˚e – Freiberga,the President of LDDK Vitålijs Gavrilovs, LDDK General DirectorElîna Egle, the advisor to the Prime Minister Ilze Stobova, theChairperson of LBAS Péteris Krîgers, the Minister of EconomyArturs Krißjånis Kariñß and the Minister of Welfare DagnijaSta˚e addressed the participants of the reception.

LDDK as a coorganizer participated at the conference „Public Relations: Quality, Achievements and Risks”organized on June 3, 2005 for School of Business Administration „Turîba” and Association of PR professionals.

LDDK educated media representatives on social responsibility issues in Latvia and Europe both by collectingand providing information on topicalities and organizing field trips during which media representatives hadan opportunity to meet the employers’ organizations of other countries.

LDDK calls on employers to actively use all the available resources both possibilities provided by social dia-logue in Latvia and EU and programmes of cooperatively social responsibility by involving in UNO GlobalCompact movement aimed to establish an environment of adjusted and fair competition in Latvia and to pro-

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mote the development of their enterprises.

Improvement of business environment LDDK, being a socially responsible employers’ organization, works in favour of growth of the economics of Latviaand increase employers’ competition in conditions of global economics. LDDK participates in creating policy plan-ning documents and regulatory enactments in collaboration with Ministry of Economics of Republic of Latvia, theMinistry of Finance of Republic of Latvia, as well as ministries of other sectors and public administration institu-tions, associations of employers and employees and social partners and Union of Industrial and Employers’Confederations of Europe (UNICE) with the aim to represent the interests of employers and foster long-termdevelopment of Latvian economics.

Year 2005 has been a year of dynamic economic growth for national economy. Economic indices have improvednot only in service sector, but also in manufacturing enterprises. Manufacturing proportion in national economyhas increased. One of the main challenges for entrepreneurs in previous year has been the rapid increase in prices.Thus, LDDK highlighted as one of the main tasks in 2005 support to enterprises to conform to the new marketconditions in the situation when cost difference with the other European countries has significantly decreased andLatvia has lost its image of a country with low-cost resources. Equally important was also the task to lessen bar-riers that make the development of entrepreneurship difficult. LDDK participated at discussions on issues ofimportance to employers and provided suggestions on the improvement of present situation by collaborating withministries of the branch, working at National economic council and National economic council of single strategyand UNICE during the whole year.

At national level LDDK actively worked at the National Tripartite Cooperation Council providing comments and propos-als on draft legislative acts regulating sectors of national economy.

In 2005 LDDK carried out the following activities participated at prioritizing coming programming period and preparing National development plan and

finance perspective for 2007-2013, highlighting and strengthening the role of social partners and broaden-ing the concept „creative industries” so that it would refer also to the traditional sectors.

developed proposals for the Activity plan on the improvement of business environment for the years 2005-2006,also achieving that a paragraph is included in the plan that envisages improvement of labour legislation.

made proposals about law amendments of VAT and EIT, stimulating the development of manufacturing andpromoting entrepreneurship at large.

promoted idea on VAT and EIT equalization by 15% for all business sectors, including merchants and pro-prietors by rising discussion on the balancing of social security tax rate allocation between employer andemployee.

evaluated the application of invoices and offered proposals to improve the system. Developed proposal oncanceling the requirement for entrepreneurs to obtain invoices.

offered proposals for the sphere of administrating taxes for improving the penalty system that was basedon the principle of presumption of innocence and SRS (State Revenue Service) and the enterprises mutualcooperation.

enhanced the development of unified public data bases and sooner introduction of e-signature that wouldas a result significantly reduce the time necessary for administrative procedures and formalities.

raised issue on administrative barriers reduction or cancellation in the context of the EU initiative „The BestLegislation”. Prepared proposals for the new order of the satisfaction of the demands of the insolvent enter-prise’s employees. As a result, the entrepreneurship risk state tax was reduced.

implemented activities on simplifying accounting procedures and encouraging entrepreneurship, which isespecially important for the development of small and medium size organizations.

provides European Commission with resolutions on positions of Latvia on current economic issues. Preparedposition on Service Directive must be highlighted as the most significant, where LDDK supported the retain-ing of the principle of the country of origin in the directive.

as of June LDDK was actively involved in the work of the economic policy commission of the Union ofIndustrial and Employers’ Confederations of Europe (UNICE) as well as at work groups of various sectors ofeconomy related to such important issues as transport, energy, public purchase a.o.

LDDK actively supported the interests of employers during the meetings of work groups formed by the ministries. LDDK participated in the Structural Funds managing committee, in the Ministry of Finance working group con-cerning tax issues and in the Advisory Council of the Ministry of Justice state agency „Insolvency Administration”.

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As a result, another of solutions were offered for the consideration of the Ministry of Finance about small-scaleentrepreneurs and the introduction of the fixed income tax, and it was achieved that in May 2005 the debitingand administration system of entrepreneurs risk state tax was reviewed and improved. LDDK participated at the Baltic Economic forum in Riga, where politicians and managers of enterprises of the Balticstates discussed future priorities of EU and the role of Baltic region in Europe, competitiveness of enterprises in EU andworld market.

To defend the interests of Latvian enterprises on theEuropean level, LDDK, in cooperation with the branchassociations and separate enterprises, declared its posi-tion to the ministries on Lisbon Strategy reviewing andintroduction of a better legislation, as well as activelyworked in committees and working groups of UNICE. In2005 Cooperation Agreements were signed with theCroatian Employers’ Association and Polish Employers’Confederation. Cooperation Agreements foresee infor-mation Exchange between the respective organizationswith the aim to represent the interests of their members– enterprises and associations during negotiations withpublic institutions and trade unions. The signed agree-ments also foresee the promotion of the developmentof cooperation among entrepreneurs by providing cur-rent information about changes in legislation of eachrespective country as well as about concerned enterpris-es and business organizations.

Priorities of LDDK of the year 2006 for adjusting business environment

The guiding priority of LDDK is the improvement of cooperation between employers and tax administrationauthorities. It plans to sign a mutual cooperation memorandum with State Revenue Service. In 2006 LDDK alsoplans to continue working to improve legislative acts in order to facilitate the development of entrepreneurship,to increase the Latvian enterprise competitiveness and work at perfecting the investment environment.

Activities planned for year 2006 to continue working on defining the priorities of the coming programming year, prepare the National devel-

opment plan and financial perspectives for years 2007-2013, defining the content of the operational pro-grammes, the recipients of financing and initiation institutions

to promote the improvement of tax administration in order to reduce the time necessary for payment ofemployers’ taxes, as well as to reduce the human resources and administrative costs

to promote introduction of an effective taxation system, so that employers would be imposed a penalty thatis commensurate with the breach, thus avoiding situations when a penalty is imposed for unintentionalbreaches equal with that imposed on malignant tax non-payers

to attain the cancellation of unique numbering of invoices issued by the State Revenue Service to encourage entrepreneurs to invest in the development of manufacturing by reinvested profit’s tax-

deductibility to support the application of entrepreneurs risk state tax according to its purpose by canceling its redirect-

ing for maintaining state agency „Insolvency Administration” to forward the development of territorial planning to improve the legal environment of business to restrict the number of deals with employers who have restrictions for realization of business activities,

thus improving business environment to continue working to introduce e-signature and electronic reports for tax administration authorities. As a

result, it would help to save time on carrying out administrative procedures and formalities and economizefinancial resources

to involve actively in the implementation of the principles of public and private partnership in Latvia to prepare resolutions on Latvia’s position for European Commission, fully using this channel in order to pro-

tect employers’ interests. to continue work at the Domestic Market Committee of the Union of Industrial and Employers’

Confederations of Europe (UNICE) and national economy working groups of this organization using thischannel to defend actively the interests of entrepreneurs on important issues concerning national economy.

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Facilitating cooperation among scientists and entrepreneurs for the strengthening of innovation processLDDK highlights the support of innovation policy development as a significant priority. The ability of people to cre-ate and implement innovations in their work is one of the most important source of economic development thatcan improve the development of the country and separate regions, as well as welfare of people. When viewinginnovations in regional framework, it is important to provide conditions where not only Riga would be able tocompete among the most powerful cities of the Baltics, but to provide successful development of other cities ofregions as well, by using the experience of the most advanced cities.

European Commission drew the attention of Latvian government to the fact that Latvia should pay more atten-tion to facilitating partnership among research and educational institutions and business, as well as to promotethe integration of research and innovations strategies. Therefore LDDK highlights as the main tasks in support ofinnovation policy development the following:

facilitating awareness in society about the concept and significance of innovations; facilitating information and mutual unity among entrepreneurs and scientists; improving education system and increasing education quality; retaining research capacity (increase of financial recourses, academic staff renewal, improvement of

payment system for staff working in sectors of education and research).

In May 2005 LDDK formed the Council ofTechnology and Economy that united all partiesinvolved in the development of innovation policy andimplementation – government, scientists, teachersand entrepreneurs. The members of the counciltogether with LDDK evaluated the development andimplementation of innovation policy, detected prob-lems, offered proposals. As a result, a scheme ofcooperation among entrepreneurs and scientists wasdeveloped and later on September 2005 discussedby Latvia’s scientists, entrepreneurs and top staff ofthe most influential institutions during Business andscience forum „Innovations = profit” organized by

LDDK. The aim of the forum was to draw the attention of government and society on the significance of inno-vations as well as to promote the unity of scientists and entrepreneurs, interest in the development of innova-tion policy. During the forum participants looked for possible solutions on the implementation of innovation pol-icy in Latvia, by uniting ideas, knowledge and experience of experts from various sectors. After summarizing andevaluating propositions offered by the participants of the forum, as well as advantages of innovation policy ofLatvia, weak points and experience of foreign cooperation partners, an Appeal was prepared and submitted tothe government of Latvia.

The Appeal highlighted the necessity to implement activities to make the innovation policy planning and imple-mentation a priority of the Government and President of Ministers. LDDK and the Council of Technology andEconomy Partnership appealed to the President of Ministers to involve in the work of the Board of the NationalInnovation Programme, to involve in it social partners, to undertake the management of the Programme and toinclude issues on innovations in such policy planning documents as the National Development Plan and LatviaNational Lisbon Programme for years 2005-2006, as well as to draw particular attention to their implementation.

The exchange of know-how, production skills and know-how practice among entrepreneurs and scientists withthe aim to create new products and services is called technology transfer. This is one of the solutions for a moresuccessful cooperation among entrepreneurs and scientists in the process of the implementation of innovations.

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The Appeal highlighted as a significant aspect in the implementation of innovations in entrepreneurship thenecessity to draw particular attention also to the issues concerned with education, noting that education shouldbe the priority of the Government with respective financing. Latvia is experiencing lack of experts in technologysectors and students who could begin their studies in technology sectors after the completion of secondaryschool. Therefore LDDK and the Council of Technology and Economy Partnership appealed to the Government ofLatvia to incorporate mathematics into the centralized examinations subject list and to renew physics, chemistryand biology as compulsory subjects in secondary educational establishments in Latvia.

In the Appeal it is noted that the resolution of professional associations on the compliance of the programme withthe requirements of labour market must be one of the preconditions for the accreditation of curriculum. LDDKpointed out that coordination among state administration institutions and social partners should be improved,and it was ready to undertake the role of intermediary in this process. LDDK appealed to promote the opportu-nities of training and lifetime education for entrepreneurs and employees in technology sectors.

In 2005 LDDK announced an annual prize in innova-tions in order to promote innovations in nationaleconomy. The prize is established with the aim tohonour the achievements of outstanding Latvianentrepreneurs and their contribution in the develop-ment of the national economy of Latvia. In 2005 theprize was presented to enterprises and scientists whowere the best in implementing innovative solutions intheir work in 2004/2005. Everyone had an opportu-nity to submit proposals to the jury, consisting ofprominent experts, to honour the cooperation of anenterprise and scientist in the field of innovations.

Among the candidates for the prize there were bothsmall and large enterprises from different regions.Close to the winning was the innovative cooperationwith scientists of two enterprises leading in the sec-tor of wood industry: Latvijas Finieris for the cooper-ation with the Forest Faculty Wood ProcessingDepartment under Latvia University of Agricultureand Latvijas Valsts MeΩi for cooperation with LatviaState Forestry Science Institute Silava and Institute ofBiology under Latvia University. The representativesof the competent jury – ministers, scientists, entre-preneurs – after three rounds of the competitionacknowledged the stock company Grindeks andLatvian Institute of Organic Synthesis as the most suc-cessful cooperation in the field of innovations. Theyproduce and develop new products, among themalso Mildronåts – medicine for treating heart and vas-cular diseases.

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Educated people – the basis of the development of national economyLDDK pays great attention to the development of education policy, since quality human resources are the basis of thedevelopment of economics in Latvia. Latvia is not rich in raw materials and energy resources, therefore transition fromlow added value production towards knowledge-based economics should be fostered in order to ensure further eco-nomic growth. LDDK provides changes in education system that foster the improvement of the quality of education andincrease of competitiveness, availability of lifetime education for all residents of Latvia, as well as increase of effective-ness of disbursement of financing for education and research.

In 2005 LDDK was involved in working group of strategy development for lifetime education, as well as actively defends theinterests of employers in the developing process of the most significant educational system legislation acts. In 2005 LDDK par-ticipated in thematic fairs and conferences related to education („Career Fair 2005”, „Reform of higher education within theBologna process”, „The creative and rational in the practice of vocational education programmes – the beginning of success-ful career”, „Education and work 2006”) with the aim to promote the identification of the image of Latvian entrepreneur –member of LDDK – in Latvian society. In 2005 LDDK commenced intensive cooperation with the Higher Education Counciland the Vocational Education Center by expressing and defending the interests of employers and searching the most appro-priate solutions for improving the system of vocational and higher education in order employers would be satisfied with thestudy curricula offered by educational establishments of Latvia, quality of education, and knowledge and skills of graduates.

At the beginning of 2006 after having evaluated National Lisbon Programme of Latvia for 2005 – 2008 developed byLatvia, European Commission pointed out that Latvia should pay greater attention to the elaboration of specific activi-ties that would ensure the conformity of education and training with labour market requirements, implementation oflifetime education strategy. Particular attention should be paid to the reduction of dropouts during the study process.The task of LDDK in the field of education is similar: to promote the ensuring of education offer accordant with themarket requirements and development perspective, as well as to develop the ability of education system to fall dynam-ically into step with the current market requirements, to facilitate the attraction of qualified and competitive labour forceto its member enterprises by the collaboration of Ministry of Education and Science of the Republic of Latvia.

Tasks of LDDK in the field of education in 2006 to ensure such allocation of structural funds for the planning period 2007 – 2013 that would foster the

improvement and quality of education system in Latvia by participating in the development and implementation of lifetime education strategy, to ensure lifelong

educational and professional self-realization and self-development opportunities for all residents, to ensureavailability of education, meaning coordinate infrastructure, available tuition fee, good education warranties and

combining opportunities with work and family life improvement of the elaboration system of profession standards by promoting involvement of employers in

elaborating profession standards and involve in education processes (to participate in elaboration of studycurricula and accreditation, accreditation of educational establishments, to organize places of field practice)

promotion of vocational education reform: increasing financing and optimization of efficiency, improvement ofcrediting system, improvement of the image of vocational education, improvement of material and technical basisand study curriculum quality, improvement of the requirements for organizing field practice, increase of 0entre-preneurs’ interest in them, anticipation of the necessary number of specialists in each sector of national economy

promotion of the improvement of vocational guidance, ensuring services of vocational guidance, starting with thelevel of primary education, improvement of their quality. Stimulation of employers and associations of respectivefields to involve in vocational guidance activities with the aim to provide versatile and qualitative information onthe sectors of Latvian national economy, their development, on the opportunities in labour market

to facilitate the renewal of the status of compulsory subjects of physics, chemistry and biology in secondary education study curricula in Latvia in order to facilitate the acquiring of professions of technology

to promote the renewal of the intellectual potential of science – increase of availability and attraction of study curriculain master studies and doctoral programmes. To support equal development of both fundamental and applicable science,since fundamental research studies is the basis of applied research studies which, in their turn, are the driving force ofinnovative manufacturing. Persons, who are able to work and develop both levels of research, are doctors

to improve legislative acts with the aim to facilitate the cooperation among LDDK members and educationalestablishments in neighboring countries to promote the exchange process of students and lecturers in the educational establishments of Latvia

to involve in the improvement of normative base with the aim to facilitate the improvement of mutual recognition system of qualification attesting documents, as well as to make the cooperation of LDDK memberswith national level employers’ organiations in the neighbouring countries more active.

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Complex approach for solving employment issuesYear by year issues on labour market attract a growing attention both at national and EU level, since challenges andproblems in EU economy require active preventive measures to be taken by EU member states and EC as well as effec-tive measures for preventing the problems.

Considering the close relation of education system and labour market and in order to facilitate positive developmentof the labour market of Latvia in 2005 LDDK participated and defended the interests of employers at several work-ing groups. Their task was to promote the harmonization of education system with labour market. The participantsdiscussed issues related to the improvement of vocational guidance system and labour market forecasting develop-ment, elaboration of the structure of higher education study curriculum breakdown by sectors accordant with coun-try development. LDDK together with respective ministries participated in discussions with European Commission onthe involvement of employers in employment policy implementation. During the discussions issues were consideredon the promotion of bilateral social dialogue, cooperation of employers at regional level, the role of employers insolving issues on lifetime education, improvement of labour safety.

In year 2005 LDDK actively worked at advisory councils of State Employment Agency and participated in evaluating proj-ects with employers as target-groups. LDDK actively worked and defended the interests of employers of Latvia in fieldof employment during the elaboration of such programme documents as Latvia National Lisbon Programme (growthand employment being stated as main challenges in the document) and National Development Plan that presents ahuman oriented future development model of Latvia. With the aim to facilitate the recognition of a socially responsibleimage of Latvia’s employer – LDDK member – in society, LDDK participated in 2005 in several fairs, conferences andcompetitions related to employment issues („Labour market 2005”, „Career Fair 2005”, „Education and Work 2006”,„Latvia personnel management congress 2005”, competition „Mentor of the Year 2005 Award for entrepreneurs –advisors” organized by non-governmental organization „Lîdere”, seminar „Broad active ageing strategies” a.o.).

Year 2006 has been proclaimed a „European Year of Mobility for Workers” in EU aimed to promote the development ofEU labour market. In 2006 12 EU member states which introduced in 2004 restrictions for labour force movement afterEU enlargement, will have to review these restrictions and decide until May 1 whether they are going to retain them. LDDKparticipates in activities of both geographical and professional mobility promotion in order to ensure availability of high qual-ity labour force for employers of Latvia both in Riga and in regions. Effective use of labour force resources and increase ofmanufacturing productivity is an important precondition for ensuring future development. LDDK is actively involved in facil-itating creation of new enterprises and, thus, also new working places by providing propositions on improving requirementsfor starting business and effective implementation of support mechanism for both existing and new enterprises. After hav-ing evaluated Latvia National Lisbon Programme for years 2005-2008, the European Commission suggested ourGovernment to develop specific measures for reducing differences in rural areas and cities, for the implementation ofmeasures for employment of economically passive residents, as well as to thoroughly evaluate the influence of the risein minimum wage upon creation of underpaid working places. By creating basis for the development of member enter-prises and increase of their competitiveness in EU common market, LDDK has highlighted as its main tasks in the fieldof employment facilitating geographic and professional labour force mobility and creation of favourable conditions forrendering services and temporary work abroad in EU member country.

The main task of LDDK at national level is ensuring the availability of labour force. In order to reach this, the quality ofemployment development planning and forecasting, favourable environment for employment and labour force qualifi-cation and training opportunities, i.e. complex approach for solving employment issues, should be provided.

Tasks of LDDK in the field of employment in 2006 to facilitate the conformity of legislative acts regulating work conditions with the existing labour market situation,

as well as promote their effective implementation. to foster such allocation of structural funds of planning period 2007-2013 that would facilitate positive develop-

ment of Latvia labour market. to facilitate reduction of illegal employment (including working at increasing advisory functions of State Labour

I n s p e c t i o n ) . to take measures for reducing the outflow of qualified labour force abroad and to lessen the negative conse-

quences of the process by facilitating improvement of work conditions. to support SME as employers’ development by facilitating tax policy improvement, lessening administrative barri-

ers, optimizing the efficiency of SME support measures (free consultations in project elaboration for attractingfinancing of EU structural funds, ensuring more favourable crediting conditions, promoting individual approach inconsidering breaches related to taxes).

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Social security – the basis of the stability of societyLDDK involves in establishing such social security policy that is directed towards available, qualitative and effec-tive public social support in increase of the welfare of residents at national, EU and international level with theaim to ensure social harmony in the country and guarantee active involvement of people in labor market. LDDKsupports providing of social security services that create preconditions for a dynamic development of economyand fair competition in Latvia.

Being aware of the unfavorable demographic situation and the impact of migration, LDDK involves in improve-ment of social security system with the aim to implement long-term interests of employers. LDDK pays attentionto the availability of human resources, effective system of benefits and fair allocation of the load of social guar-antees among employers and employees.

The above mentioned issues are considered byappealing to the Government to implement the„Concept on minimum wage” and to increase morerapidly tax-sheltered minimal income in order toimprove the inner consumption of the residents ofLatvia at least in proportion with the level of otherBaltic states. Such legislative acts as „Regulations onminimum monthly salary and minimum salary perhour”, „Concept on the improvement of incomecontrol of individuals” have been improved, the workof State Revenue Service related to the administrationof the state social insurance mandatory paymentsand collection of debts have been analysed.

LDDK promotes the contribution of employers in the process of social alignment and appeals to the state admin-istration to support socially responsible employers who are able to create additional possibilities to abate povertyand social rejection by means of fiscal policy and other support mechanisms, as well as facilitate full-fledged inte-gration of residents into society and labour market. LDDK has supported regulations issued by the Cabinet ofMinisters „On the amount of child care allowance, its revision order and the order of the allocation and paymentof the allowance” a.o. increase of state social allowance payments, as well as basic statements for the politics ofdisability and the abatement of its consequences.

With the aim to promote fair competition in the market of social security services between public and private sec-tor, the issue on further work of State Treasury on administration of the funds of state funded pension schemeis successfully solved, „Concept on state social security financial resources reserve fund” was analysed. LDDK hascommenced work on the preparation of proposals on renewing pension rights on preferential conditions for workunder risk factors for separate categories of workers („Regulations on professions where special pension plans inprivate pension funds can be provided for those working in these professions”) and highlighting issues on the sys-tem of state social insurance against accidents at work and work related illness.

LDDK cooperates in the framework of NTCC Social security sub-council with Ministry of Welfare of the Republicof Latvia, Ministry of Health of the Republic of Latvia, Ministry of Finance of the Republic of Latvia and theirdepartments. LDDK has been involved in the work of Saeima Committee, working groups formed by public insti-tutions, as well as participated in international seminars, conferences. Particular attention has been paid to theissue reviewed by NTCC on the improvement of the control mechanism of temporary disability, and proposalshave been offered on further solving of the problem. Unfortunately, Ministry of Health of the Republic of Latviahas not yet ensured the implementation of the mentioned proposals, and the work on the reduction of misuseof state and employers’ financial resources has to be continued.

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Shall we establish a high quality and effective health care? LDDK is involved at national, EU and international level in establishment of such health care policy that is direct-ed towards available, qualitative and effective providing of health care services for each resident, as well as con-formity of these services with the principles of free market economy and fair competitiveness. LDDK involves in drawing up favorable legislation to provide enterprises with healthy employees and to fosterdevelopment of the sector. By means of fostering the processes of innovation and quality improvement and pub-lic private partnership, LDDK lays down foundations for competitiveness of health care sector and creation of highadded value in economics. LDDK supports a healthy life and work environment by studying best examples amongemployers.

Enterprises find an effective functioning of health care system very essential, since the health of their employees is adecisive factor in the competitiveness of enterprises and economy. Demographic changes, the unsatisfactory state ofhealth of society, economic migration, especially lack of labor force, insufficient financing make it difficult to meet thegrowing demand for service and products that discontent employers with the implementation of structural plan as wellas with the observance of contractual obligations signed by VOAVA and medical establishments. Ministry of Health ofthe Republic of Latvia and employers have come to agreement on „The Plan of the development programme imple-mentation on ambulatory and stationary health care service providers for years 2005-2010”. The opinion of employersis not yet considered on „the order of health care organization and financing”.

Being aware of the potential of the health care sector as a competitive sector of national economy, LDDK sup-ports the development of database of favourable regulatory enactments that would encourage pharmacy andhealth insurance companies to develop new and innovative products and services with high added value. LDDKsees to the fact that state administration would introduce effective reforms that would comply with the interestsof society, i.e. entrepreneurs of the respective sector, employees and employers of Latvia. Fair competition is afoundation of an effective application of resources and availability of high quality services.

Regulations issued by the Cabinet of Ministers „Principles for the formation of the pricing of medicinal products”and „Amendments to the Pharmacy Law” are the evidence of the lack of understanding on the principles of freemarket operation. Besides, it is necessary to facilitate the productivity of manufacturers and service providers bybroadening the positive influence of resource availability and reacting to new requirements, as well as by improv-ing the quality of services and reducing costs, improving health care efficiency and increasing the satisfaction levelof patients.

Employers have made themselves sure of the significance of preventive health care in reducing labour force costs.Enterprises involve themselves in measures of early diagnostics that reduce direct or indirect costs of treatment.Therefore socially responsible employers need to be supported on informative and other campaigns on properdiet, physical activities, moderate use of alcohol and dangers of smoking. Proposals have been offered on„National Programme of Tobacco Control for 2005-2010”, „Regulations on the order of placing notices with rel-evant informative phrase or symbol referring to restriction or permission to smoke as well as on the patterns ofinformative phrases and symbols”, „Order of providing training on giving first aid, and the necessary minimumof medical materials for giving first aid”. LDDK is sure that public and private financial resources that are provid-ed for such purposes will pay off after the reduction of illnesses and increase of the productivity of enterprises.

LDDK promotes the development of labour protection legislative base that conforms to the interests of employ-ers, at national, EU and international level fostering the improvement of work environment and creation of workconditions harmless to the security and health of employees. At international level LDDK involves in the work ofIOE and BIAC, whereas at the national level it works at the Subcouncil of health care sector (VANA). LDDK par-ticipates in drawing up policy planning documents and regulatory enactments, provides members with informa-tion and consultations as to their application, provides employers with information and advice on topical issuesand develops informative materials on effective application of labor safety requirements.

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Ethical labour relations – the basis of fair competitionLDDK encourages the establishment of a flexible regulatory frame of labor relations at national, international andEU level, by providing employers with opportunities to respond effectively to constant changes in labor market.LDDK works on continuous improvement of Labor Law, other regulatory enactments and drawing up policyplanning documents and provides members with information and consultancy services as to their application, aswell as provides employers with updated information and draws up informative materials on improvement oflabor relations.

Considering the growing ageing of labour force and outflow of labour force abroad, it became necessary to findsolutions for retaining human resources and for attracting them to ensure successful operation of enterprises. In2005 a complex of measures was implemented in order to solve these problems. An intensive work was contin-ued on the improvement of Labour Law according to the new labour market situation and proposals submittedby employers.

As a result, conceptual agreements were reached on the following issues: simplification of employee dismissal order reduction of employment restrictions order of time-out allocation prolongation of the maximum term of fixed-term contracts.

On November 30 a seminar was organized whereLDDK presented to the employers the preparedinformative materials on defining flexible forms ofwork at enterprises. The introduction of flexible formsof work allows to organize work according to therequirements of customers and allows the employeesof the enterprise to combine work and family life. Therepresentatives of enterprises and associations,Saeima of Republic of Latvia, Ministry of Welfare, theState Labor Inspection and the Free Trade UnionConfederation of Latvia discussed various models ofbuilding and managing labour relations.

By preparing informative materials on the preconditions of implementing telework or remote work and harmo-nizing them with trade unions, the expedition of agreement of Europe’s social partners on telework overtakingwas facilitated. The social partners proved to the Government and society at large that particular issues and prob-lems can be solved not only by means of legislative acts, but also by means of cooperation among social partners.

LDDK proved to the Government that the proposal offered by public institutions to lay down additional holidaysafter public holiday that falls on Saturday or Sunday is not in line with the current situation of national economy,and this proposal was rejected.

In 2006 work on the improvement of Labour Law will be continued by implementing the development of flexiblework conditions in enterprises. Measures will be taken to introduce the agreement of Europe’s social partners ontelework, stress at work and fostering gender equality in Latvia.

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Requirements for work environment and costs shouldbe proportionateLDDK enhances the establishment of regulatory frame of labor safety that should comply with the interests ofemployers at national, EU and international level, fostering the improvement of work conditions and establishingwork environment that is harmless to the health and safety of employees.

LDDK participates in drawing up policy planning documents and regulatory enactments, provides members withinformation and consultations as to their application, provides employers with information and advice on topicalissues and develops informative materials on effective application of labour safety requirements.

In 2005 LDDK continued to educateand inform employers and worksafety specialists on effective possi-bilities of safe work environmentdevelopment. It offered informativematerials on the introduction possi-bilities of labour protection legisla-tive acts. This was the third yearwhen the fair „For the safety ofwork” was organized also in collab-oration with LDDK that was present-ed at the fair with its own booth.LDDK participated also at organizingthe conference „Effective manage-ment of labour protection system”.

In collaboration with Ministry of Justice of the Republic of Latvia significant changes were made in the order ofaccident investigation at work. From now on the special costs of accident investigations implemented by the StateLabour Inspection will be covered by the State Labour Inspection and not by employer. Thus, employer is no longerobliged to cover the costs of the means of transportation, communications, document multiplying as well as costsof external experts and specialists, technical calculations and laboratorial measurements.

LDDK launched a lengthy discussion when disagreeing with the overtaking of the EU directive on the require-ments for labour protection when coming into contact with chemical substances, with mandatory application ofnational standard. As a result, the order of overtaking EU directives in Latvia was reviewed. It was stated thatdirectives can not be overtaken with standards that are available to employers only for charge, but with publiclegislative acts. Owing to that, employers were prevented from ungrounded costs, and effective application oflegislative acts was facilitated.

Owing to the cooperation with the labour protection experts of LDDK members, standards complying with theinterests of employers are incorporated into many labour protection legislative acts.

In 2006 LDDK is planning to continue to work at elaboration of national and EU labour protection policy, as wellas initiate amendments in many legislative acts with the aim to ensure that they are applied more effectively, forinstance, in regulations on the order of mandatory health examinations and application of work equipment.

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With international experience – towards future perspectiveIn year 2005 LDDK involved in various international activities with the aim to implement its foreign policy strategic goal –to facilitate the improvement of the competitiveness of Latvia’s enterprises and convergence of Latvia welfare with vet-eran EU member states. Since the competitiveness of the national economy and successful development of export poten-tial of Latvia largely depend from political stability, LDDK signed a Cooperation Protocol with Foreign Ministry of theRepublic of Latvia on mutual cooperation in representing socio-economic and business interests of Latvia abroad.

In June 2005 Member Committee of the Union of Industrial and Employers’ Confederation of Europe (UNICE) decidedto support the submission of LDDK on granting the status of associate member. Thus, in July 1, 2005 LDDK became afull-fledged member of UNICE. The status provides the possibility to more actively participate in the work of the organi-zation and to express the opinion of Latvia’s employers. LDDK has delegated representatives of both its Directorate andmembers to work at the policy committees and working groups of UNICE. In 2005 LDDK participated in elaborating thefollowing new initiatives of EC on policy and legislation – Service Directive, Working Time Directive, Development ofREACH system, Renewal of Lisbon Strategy, Modernization of EU social pattern

In November 7, 2005 General Director of LDDK E. Egle signed a Contract with Business andIndustrial Advisory Committee (BIAC) in Paris. According to the Contract, LDDK obtained the sta-tus of Observer at the BIAC. BIAC is an independent organization that operates under OECD andwhich unites the most influential employers’ organizations of OECD countries. The status of BIACObserver provides the possibility to cooperate with the most powerful employers’ organizations ofthe world and to gain experience, as well as to contribute to the formation of OECD policy forma-

tion. Participation at BIAC will provide also the possibility for LDDK to use the obtained experience to influence the intro-duction of free market principles in Latvia in such sectors of national economy as education and health care, for instance.

LDDK continued with active cooperation with employers’ organizations of both EU member states and other neighbour-ing countries with the aim to ensure the representation of the interests of its members abroad. In 2005 cooperationagreements were signed with Polish Employers’ Confederation and Croatian Employers’ Association. The contracts envis-age information exchange between the organizations in order to effectively represent the interests of their members –enterprises and associations – during the negotiations with public institutions and trade unions. The contracts envisagealso to facilitate the development of cooperation of entrepreneurs and entrepreneurs’ organizations and current infor-mation exchange on changes in respective legislations.

During 2005 the representatives and members of LDDK participated at various international events and conferences inorder to facilitate the recognition of the Confederation at international level and broadening of partnership.

Most important events in 2005 February 24 – an international conference in Vilnius was held „Halfway of the Lisbon Strategy Process: aims and

perspectives for the Governments, employers’ and entrepreneurs’ organizations of the new EU member states”. Inconclusion of the conference the representatives of 8 new EU member states signed a Declaration defining priori-ties for the 5 coming years both at European and national level.

June – 93. session of the annual International labour conference took place in Geneva. Representatives of LDDKparticipated at the work of the conference.

LDDK joined the state visits to Finland and France organized by LIIA with the aim to strengthen the cooperationwith employers’ organizations of other countries.

September 21-24 – Meeting of the European members of the International Organization of Employers (IOE) tookplace in Madrid. During the meeting the impact of globalization upon labour relations as well as priorities ofEuropean members at most significant issues of cooperation between International Labour Organization (ILO) andIOE were discussed.

October 20 – Third conference „Crossing Frontiers” of „Competitiveness Days” was organized by UNICE inBrussels. Latvia was presented at the conference by General Director of LDDK Elîna Egle, two experts of LDDK, 12enterprises representing various sectors, associations and representatives of public administration, as well as 10 massmedia representatives.

In 2005 LDDK launched the process of creating monthly online edition „News from Europe”, providing a concise reviewof current news from Europe, discussions and initiatives that are of concern to employers and entrepreneurs.

In 2006 LDDK is planning to expand its field of activities, paying greater attention to the cooperation with the employ-ers’ organizations of our neighbouring countries – Russia, Ukraine, Byelorussia. In the framework of UNICE Internationalcooperation programme LDDK will participate in developing economic relations with Russia and the USA.

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Training and services for members of LDDKRepresentations of interestsLDDK keeps itself informed on latest amendments of policy planning documents and regulatory enactments, andon a regular basis sends its members regulatory enactments for harmonization already in draft version.

LDDK has rights to initiate amendments in legislation and regulations issued by the Cabinet of Ministers in orderto prevent administrative barriers and obstacles for the development of economics and business.

LDDK organizes meetings with experts from companies and respective sectors, inviting also the responsible rep-resentatives from public institutions with the aim to ensure the conformity of regulatory enactments or policyplanning documents with the interests of employers.

Analysis of draft legislationLDDK evaluates draft national and EU policy planning documents and draft regulatory enactments. It analyses andforesees their impact on expenses of companies for introduction of the requirements of respective regulatoryenactments, companies’ product quality and competitiveness, regional development, employment situation andforce labor availability and quality, as well as on business at large.

LDDK provides regulatory enactment developing institutions with resolutions in order to ensure legislative adjust-ments that comply with the interests of employers.

Database for authorized membersA database has been developed in 2006 to improve an effective communication and information exchangeamong LDDK members and experts in respective fields.

You can enter questions there that are important for your organization or company, as well as comments andopinions on regulatory enactments that are important to your organization or company. The database unites theinterests of the LDDK members on improving legislation and reveals the progress of the process of topical issueson employment. This service is available only by entering password sent to LDDK members.

ConsultationsLDDK provides its members with consultations on issues of improving business environment, as well as on edu-cation, employment, social security, health care, employment rights and labor safety. LDDK members receive con-sultations on:

adjustment of regulatory enactments (interpretation of regulations, evaluation of their impact) draft policy planning documents and draft regulatory enactments, as well as their impact upon entrepre-

neurship opportunities to initiate amendments in regulatory enactments

LDDK cooperates both with experts from Latvian and international organizations and employers’ organizations ofother counties, with the aim to provide its members with in-depth analysis on issues of concern. LDDK develops and distributes informative materials on topical issues of employers and entrepreneurs’ concern.Informative materials are available to members free of charge at LDDK Directorate.

Events, conferences, seminarsLDDK offers its members conferences, debates, forums and other events on topical issues of entrepreneurs andsector experts’ concern. When organizing events, LDDK invites the representatives of the Government and munici-palities, field experts, scientists from Latvia and from abroad.

LDDK provides its members with information about international events focusing on topical issues of employers’concern. LDDK members attend international conferences and seminars, and receive an opportunity to share theexperience of companies and organizations from other countries and use it to improve work oforganizations/associations.

Since 2004 LDDK has established the tradition to invite at the end of year its members and partners of social dia-logue for a business luncheon in order to look back at common accomplishments and discuss in informal atmos-phere socioeconomic issues of the coming year. The State President V. Vî˚e-Freiberga vouchsafed LDDK businessluncheon with her presence in 2005

National Programme Project of ESF„Capacity building of Latvian Employers’ Confederation”

In year 2005 Latvian Employers’ Confederation continued with the implemen-tation of ESF project „Capacity building of Latvian Employers’ Confederation”aiming at encouraging employers’ organization to actively participate inaddressing economic, social and employment related issues at Latvian and EU-level, as well as coordinate resolution of industry-specific and employmentissues in professional and industrial associations.

Activities implemented in 2005 provides a significant contribution in strength-ening the capacity of LDDK and its member employers’ organizations byimproving the qualification of the representatives of the organizations, provid-ing possibilities for development and improvement of the operation of organi-zations, improving the ability of employers’ organizations to represent the inter-ests of their members during the elaboration of national and draft sector plan-ning documentation and draft legislation.

Project activities in 2005 Methodology accordant to the requirements of Latvia and procedures for defining the interests of employ-

ers was elaborated. These documents describe the order, in which propositions and objections expressed byemployers are summarized and harmonized in the framework of employers’ organization and how a singleposition of employers is formulated. Methodology helps in the work of employers’ organizations, in estab-lishing successful cooperation with members and representing their interests at public institutions.

Report „On innovations in Latvia” was drawn up and „the pattern for the cooperation between LDDK and researchand educational establishments in promotion of innovations in business” was elaborated. In the framework of theactivity the current cooperation of employers with research institutions was studied in the field of innovation inLatvia and other countries of the world. Analysis of innovation policy in Latvia, statistics and experience of othercountries was carried out. Basing on the analysis, a document of cooperation pattern between LDDK and researchinstitutions was elaborated. It was presented at the business and science forum „innovations = profit”, where annu-al award was presented in the field of innovations. The aim of the cooperation pattern is to promote the process-es of innovations and economic growth of Latvia at large. The fostering of innovation processes is the basis for amore rapid and effective re-orientation from manpowered economy to knowledge based economy. The documentof cooperation pattern is submitted to the Cabinet of Ministers along with the appeal to implement it in practice.

Experts continued working in the following fields: social security and health protection; education and employment;labour rights and labour protection; national economy and finance; EU-related issues; corporate governance. Owingto the expert work, the ability of LDDK, its members - employers’ organizations and enterprises to represent theirinterests in elaboration of national and EU policy planning documents and legislative acts, and cooperation withpublic institutions. At the same time, LDDK has improved its image as a stable and constructive partner ofGovernment.

3 seminar courses were organized: two in Belgium and one inGreat Britain. Participants – LDDK and mass media representa-tives – gained an insight into the experience of EU employers’organizations in lobbying employers’ interests at EU institu-tions, met with European commissioner Mr. Andris Piebalgs,received information on the structure and operation of socialdialogue in Great Britain, participated at the meeting of the EUCouncil of Economy and Finance Affairs and competitivenessday organized by UNICE.

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Elaborated and distributed in electronic form two informativematerials on the possibilities of introducing flexible forms of workat enterprises: „Working time” and „Work place (telework)”. Theintroduction of flexible forms of work allows to organize workaccording to the requirements of customers and allows the employ-ees of the enterprise to combine work and family life. The agree-ment signed among social partners at EU-level on the regulationsof the adjustment of telework obliges the social partners at nation-al level to implement measures for overtaking the agreement. Theelaboration of informative materials is one of the measures promot-ing awareness of the society on the advantages of the new workorganization model.

In order to develop new services for LDDK members, the market potential of the services developed by LDDKwas evaluated. A research has been carried out on the attitude of employers towards services currently pro-vided by LDDK, their wishes for new services and readiness to pay for the services. The result of the researchindicates that employers see LDDK as the defender of their interests and lobby, source of information on thetopicalities in legislation, advisor in business matters. Employers pointed out as the possible new services thatthey would like to receive from LDDK assistance in establishing business relations aboard and in establishinginternational partnership, expert training and certification. They would also like to receive advice for legalprocedures.

English and French language courses were organized for the employees of employers’ organizations thatallowed to improve the foreign language skills of the representatives of employers’ organisations involved inthe discussion of EU policy planning documents and legislative acts, representing the organization at inter-national seminars and conferences.

Three day seminar courses were organ-ized: „Salesmanship”, „Effective pres-entation skills”, and twice „Secrets ofNegotiating”. Representatives of theemployers’ organizations participated inthe seminars. The scope of the trainingwas to develop and improve the skills ofparticipants necessary on everyday basisworking with representatives of publicinstitutions and trade unions andattracting new members to the organi-zations.

The studies of ten LDDK labour protection experts at the Riga Technical University vocational higher educa-tion master course „Labour protection” . By means of these studies the qualification is raised for those LDDKlabour protection experts who are involved in the elaboration of planning document and legislative acts inthe field of labour protection.

In 2006 training for the representatives of employers’ orgnizations will be continued in the framework of the proj-ect, informative materials will be elaborated, experts will continue their work, four training courses will be organ-ized abroad for the representatives of LDDK and mass media. A significant part of activities will be devoted to theattraction of new members by organizing seminars in the regions of Latvia and by appealing to the employersthat are not yet the members of LDDK, as well as by informing future employers – students, on the movement ofemployers. In order to develop the most appropriate scheme of uniting employers in Latvia, a research will be car-ried out on the practice of employers’ organizations of respective sectors in attracting new members.

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Members of LDDK

Latvijas Maßînbüves un metålapstrådesRüpniecîbas uzñéméju asociåcija

Latvijas Profesionålås izglîtîbas måcîbuieståΩu asociåcija

Veselîbas aprüpes darba devéju asociåcija

Pieaugußo un profesionålåsizglîtîbas asociåcija

Latvijas Paßvaldîbu darba devéju asociåcija

Tehnisko ekspertu asociåcija

Latvijas Ce¬inieku asociåcija Latvijas Energobüvniecîbas asociåcija

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Maija Ambréna (Latvian Energy Construction Association)

Lilija Babre (Association of Latvian Commercial Banks)

Linda Baltiña (JSC „PasaΩieru vilciens”)

Aldis Baumanis (School of Business Administration „Turîba”)

Aivars Bauze (JSC „Grindeks”)

Jånis Bertrands (Limited liability company „Baltijas Logi”)

Indulis Bérziñß (Limited liability company „Daugavas

Energoceltnieks”)

Juris Bi˚is (JSC „Latvijas Finieris”)

Juris Borzovs (JSC „Dati”)

Anda Bümane (JSC „Latvijas Finieris”)

Måris Dambis (Limited liability company „Latvijas Mobilais

Telefons”)

Jånis Davidoviçs (Limited liability company „EiroHoldings”)

Jånis Dirba (Latvian Energy Construction Association)

Péteris Dru˚is (Association of Technical Experts)

Aleksandrs Grigorjevs (Limited liability company „Grif”)

Valdis Jåkobsons (Latvian Chemistry and Pharmacy Employers’

Association)

Kårlis Kadi˚is (Latvian Road Builders Association)

Juris Kaksîtis (Limited liability company „EiroHoldings”)

Jevgéñijs Kaléjs (Latvian Hospitals’ Association)

Laura Kalniña (JSC „Latvijas Balzams”)

Gunårs Kalniñß (Limited liability company „Latholding Grupa”)

Juris Kanels (JSC „State information network agency”)

Inga Kola (state JSC „Latvenergo”)

Margarita Krauça (Health Care Employers’ Association)

Uldis Kupßs (JSC „IBNA”)

Gaida Låce (Latvian Municipal Employers’ Association)

Guntis Liepiñß (Latvian Municipal Employers’ Association)

Kirovs Lipmans (JSC „Grindeks”)

Dainis Markus (Latvian Vocational Education Association)

Linda Matisåne (JSC „IBNA”)

Jånis Mårciñß (Latvian Association of Wood Processing

Companies and Exporters)

Dzintars Mozgis (University Children’s Hospital)

Vasilijs Me¬ñiks (Limited liability company „EiroHoldings”)

Jånis Nipåns (Limited liability company „Lattelekom”)

Laila Odiña (JSC „airBaltic Corporation”)

Normunds Orleåns (Latvian Municipal Employers’

Association)

Uldis Pétersons (JSC „Latvijas Dzelzce¬ß”)

Gundars Prolis (Latvian Hospitals’ Association)

Viktors Puriñß (Latvian Constructors’ Association)

Måris Révalds (Health Care Employers’ Association)

Ieva Rozenberga (state JSC „Latvijas Pasts”)

Arlita Sedmale (Latvian Federation of Food Enterprises)

Vladislavs Siñavskis (JSC „REBIR”)

Arnolds Spir©is (Limited liability company „Tukuma

Energoceltnieks”)

Arkådijs Sußkins (Césis District Entrepreneurs’ Club)

Guntis Tomsons (Adult and Vocational Education Association)

Teodors Tverijons (Association of Latvian Commercial Banks)

Iréna Upzare (state JSC „Latvenergo”)

Andris Uzuleñß (JSC „Ventspils nafta”)

Aiva Vîksna (Limited liability company „Lietiß˚ås informåcijas

dienests”)

Andris Zorgevics (state JSC „Latvijas Dzelzce¬ß)

Directorate of LDDKexpresses its gratitude toits members for active work on the representationof employers’ opinion andinterests: