Social dialogue and conflict resolution

Kranj, 31 March - 2 April 2004 Kokra Hotel (Brdo Estate) Kranj, Slovenia

National development project - Lithuania

by Gražina Gruzdiene

Development of a national mediation system

Recognizing the fact, that after becoming a member of the EU, there would be a necessity of increasing the strength and importance of the social dialog and the use of it as an instrument for the efficient resolution of national labour disputes, and seeking to create social peace and welfare in the whole country, the tripartite working group of the Lithuanian representatives tried to evaluate the strengths and weaknesses of today’s conflict resolution mechanism and it’s future challenges. Using this evaluation the working group agreed to prepare the development project for the conflict resolution mechanism in Lithuania and to present it to the institutions, capable of adopting the necessary political decisions.

I. Today’s situation

The conflict resolution mechanism in Lithuania was analyzed in consideration of economic, political and industrial relations and reviewed in the national report. Participants accepted the national report and discussed in order to find the common approach to the weaknesses and strengths of the present situation.

The Lithuanian Labour code (which came into force on the 1st of January, 2003) allows social partners to solve collective labour disputes with enlisting the services of the mediation officer or refering the dispute for the hearing of the Conciliation Commission, and then later, if the Conciliation Commission fails to reach an agreement on all or part of the demands, the hearing of the dispute might be refered for the hearing of the Labour Arbitration or third party court .

Weaknesses:

• Low organization of the society if compared to the “old” members of the European Union.

• Free trade union movement was started and the first employers’ organizations were established only 13 years ago.

• Disunity of trade unions creates problems in finding common demands.

• Different historical background (50 year-long habit of waiting for everything from the “good government”, “good new Parliament elections”).

• Usually people have no confidence in the new system.

• The representatives of social partners are insufficiently qualified in bargaining and reaching compromises in the case of conflicts.

• The procedure of solving conflicts is too complicated, bureaucratic and long.

• Weak mechanism for consultation and information with the representatives of the employees.

• Financial difficulties prevent people from initiating collective disputes – trade unions do not have enough financial means in their strike funds to compensate workers for the loss of wages during strikes or other losses.

The above mentioned problems stipulate the fact that the number of conflicts is very small in Lithuania. People do not make up their minds to start collective disputes in order to protect their interests.

Though the state strives for the decrease of social separation, the nowadays tendency shows, that the difference of wages is very big, and that is why the number of collective disputes should increase.

Strengths:

• The new Labour code has created a permanent system for resolving collective labour disputes.

• Social partners have intentions of improving this system and making it more effective.

II. Tomorrow’s situation

Future vision of social dialog was tested as an instrument in EU member states and can play very important role for social welfare of the state of Lithuania. Effectiveness of conflict resolution is one of the most important elements in this process. Working group discussed joint vision of the future challenges.

Future challenges:

• To find the optimal mechanism for quick and effective conflicts resolutions in the context of the competitiveness of the global market, using withstanding the test of time practice from other countries;

• The necessity of taking the political decision about what is more acceptable for Lithuania – conciliation or mediation system.

• The creation of mediation system as more effective measure compared to conciliation (because it can propose the possible solutions) – to define the status of mediators (independent, state or appointed by social partners), to prepare such mediators, to announce a list of mediators, to find the sponsorship.

• To organize a public campaign about the possibilities of effective conflicts resolution.

III. Development project

When comparing today’s and tomorrow’s situations based on the previous workshops, it was agreed that the main topic for the national development project - development of the mediation system in Lithuania.

Guidelines were created taking in consideration comparison of weaknesses, strengths and future challenges, discussed before. Though it is clear for the members of the group that it would be difficult to improve the system, which has been tested so little in practice. After learning about the practice of the quick and effective resolution of collective labour disputes in the old member states of the EU, the national group decided, that the most expedient way of preparing national development project would be - improving the mediation system in Lithuania.

Guidelines for national action plan of the development project as it was recommended were summarized into following six “thumb rules”:

WHAT? Development of the mediation system in Lithuania.

WHY? Development of mediation system is the most effective way to reach social peace in the shortest period of time and the one of the best measure for social dialog and the cheaper way for the state.

WHEN? To start after the political decision is taken on the National tripartite council.

WHO? Working group consisting of:

• Labour code preparatory group.

• Or Labour relation commission of The National Tripartite body.

• Or Specially created working group.

WHERE? Labour code amendment or separate law.

WHICH RESOURCES?
Financial resources can be used

• from the National budget according to the Government decision

• the EU founds and ILO projects

• Others special projects

Human resources:

• Social partners experts

• Civil servants of the Ministry of social security and labour and it’s institutions.