Collective labour relations

Trilateral cooperation
As far as labour relations are concerned, both individual and collective labour relations play an important role. Although, individual labour relations are more common in Lithuania, an interest in collective labour relations is increasing. This is in part due to the new Labour Code, which directly encourages social partnership in Lithuania. Social partnership is developed through social dialogue, which can be defined as the process of negotiations and consultations between major social partners – state institutions, employers’ organisations, and trade unions. Dialogue between the Government, employers’ organisations, and trade unions is one of the most common forms of social dialogue. Trilateral cooperation is based on negotiations during which the parties assume obligations to respect agreements or hold consultations with the Government. Trilateral cooperation can be maintained at the national, sectoral or territorial level. The key objective of taking part in trilateral cooperation is to exchange information, reach a balance between different interests, achieve the approval of social partners regarding the governmental policy and develop social-economic policy, which would reflect the interests and attitudes of social partners.
The main interaction between public authorities and social partners is done through the main tripartite institution – the Tripartite Council of the Republic of Lithuania (hereinafter – the Lithuanian Tripartite Council; Council) as well as specialised tripartite councils and tripartite councils under local municipalities. 
The Lithuanian Tripartite Council was established in 1995 by the tripartite agreement concluded between trade unions, employers’ organisations and the Government. Currently the legal framework of the Lithuanian Tripartite Council is set forth in the Labour Code of the Republic of Lithuania (hereinafter – the LC), newly adopted in 2016 (before it was in the former Labour Code, adopted in 2002). Article 185 of the LC stipulates: the term of the  Lithuanian Tripartite Council, i.e. it is formed for a term of four years; the composition – the representatives of national-level trade unions, the representatives of employers’ organisations, and the representatives of the Government (21 members in total – 7 representatives of each party); the representativeness criteria for trade unions and employers’ organisations seeking to be members of the Council; term of office - individuals may be members of the Council for no more than two consecutive terms;  legal grounds for termination of the term of office of its member; the appointment of its chairperson. 
The Tripartite Council is currently comprised of the representatives of trade unions, employers, and the Government (21 members in total – 7 representatives of each party):
1.    public authorities: the Ministry of Social Security and Labour (2 members); the Ministry of Economy (2 members), the Ministry of economy and innovation (2 members) and the Office of the Government of the Republic of Lithuania (1 member);
2.    three central (republican) organisations of trade unions: the Lithuanian Trade Union Confederation (3 members), the Lithuanian Trade Union “Solidarumas” (2 members), General Trade Union of the Republic of Lithuania (2 members); 
3.    six employers’ organisations: the Lithuanian Confederation of Industrialists (2 members), the Lithuanian Business Employers’ Confederation (2 members), the Chamber of Agriculture of the Republic of Lithuania (1 member); the Association of Lithuanian Chambers of Commerce, Industry and Crafts (1 member), the Association “Investors’ Forum” and the Lithuanian Business Confederation(1 member) .

The Tripartite Council currently consist of 7 committees and commissions, the members of which also include the representatives of non-governmental organisations (the Labour Disputes Commission; the Bipartite Commission of Civil Servants; the Social Partners’ Capacity Building Commission; the Committee for Culture, the Wage Policy Commission, the Working Group on Systemic Changes in the Field of Social Guarantees, the Working Group on Solving the Problems of Road Transport Workers on International Routes).

The provisions of the Labour Code of the Republic of Lithuania regulating collective labour relations

Collective agreements and their registration
Under Article 195 (5) of the Labour Code, all valid collective agreements shall be registered and publicly announced in accordance with the procedure established by the Minister of Social Security and Labour of the Republic of Lithuania. All registered collective agreements are announced in the official website of the Ministry.  
The signing of a collective agreement means the successful completion of the collective bargaining process and a compromise reached by the parties. Collective agreements help to solve many industrial-social issues, to avoid disputes and remove work impediments, to ensure a better security of employees, to guarantee the payment of employees’ wages, entitlement to leave, etc.
Under the above mentioned register, there are valid 406 collective agreements to date (11 January  2024), more particularly: 
•    1 national collective agreement (cross-sectoral). The 2023-2025 National Collective Agreement was signed by Monika Navickienė, Minister of Social Security and Labour, and 3 national trade unions on 10 October 2022. It stipulates wage increases and additional guarantees for nearly 200 000 employees, state servants and internal system officials in the public sector. 
•    6 territorial collective agreements.
•    16 sectoral (industry, services, professional) collective agreements. They are concluded in culture, education and science, health, social service, environmental protection, state border protection, prosecutors, wood processing, social insurance, carriers, railways   sectors. 
•    382 employer-level collective agreements.
According to the data of the Collective Agreements Register, 70 per cent of all collective agreements are concluded in the public sector and collective bargaining coverage the is 22,5 per cent.           
Collective labour relations are regulated by transposing EU directives
When Lithuania joined the European Union, a number of Europe-based international companies opened their subsidiaries in Lithuania, and some Lithuanian companies established their offices abroad. This gave rise to social partnership which involves the information and consultation of employees, when decisions on corporate governance are not taken unilaterally by the employer but with the participation of the representative of employees. The latter must be provided with information and given the opportunity to express their opinion on key developments or decision-making taking place in the company/group that may affect the interests of employees. The involvement of the representatives of employees in the decision-making process by informing and consulting them makes this process more democratic and transparent, with decisions more acceptable and effective. The following laws implementing the EU directives and regulating the participation of employees in corporate governance are now applicable in Lithuania: the Law on European Works Councils of the Republic of Lithuania, the Law on the Involvement of Employees in Decision-Making in European companies of the Republic of Lithuania, the Law on the Involvement of Employees in Decision-Making in European Cooperative Societies of the Republic of Lithuania, the Law on the Involvement of Employees in the Company Resulting from the Cross-Border Merger of Limited Liability Companies of the Republic of Lithuania.
•    Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees was transposed in the national law by the Law on European Works Councils of the Republic of Lithuania.
•    The Law on the Involvement of Employees in Decision-Making in European companies of the Republic of Lithuania was adopted to implement Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with regard to the involvement of employees.
•    The Law on the Involvement of Employees in Decision-Making in European Cooperative Societies of the Republic of Lithuania was drafted to implement Council Directive 2003/72/EC of 22 July 2003 supplementing the Statute for a European Cooperative Society with regard to the involvement of employees.
•    Directive 2005/56/EC of the European Parliament and of the Council on cross-border mergers of limited liability companies was adopted on 26 October 2005 (OJ L 310, 2005, p.1). The Law on the Involvement of Employees in the Company Resulting from the Cross-Border Merger of Limited Liability Companies of the Republic of Lithuania was adopted to ensure the full implementation of the provisions of the Directive.