Representatives of the Lithuanian Trade Union Confederation (LPSK) met with experts from the Organisation for Economic Co-operation and Development (OECD) Economic Survey Mission at the Ministry of Finance to discuss key challenges facing workers and the labour market in Lithuania. The meeting formed part of the preparation of the OECD’s upcoming Economic Survey of Lithuania.
The LPSK delegation included Irena Petraitienė, Chair of the Lithuanian Trade Union of Civil Servants and Public Sector Employees, Birutė Daškevičienė, Chairwoman of the Achema Employees’ Trade Union and LPSK representative at the European Trade Union Confederation (ETUC) Just Transition Committee, and Bernardas Šatkovskis, Member of the LPSK Board.
This year, the OECD mission is focusing on three main areas: public finances and public sector efficiency, energy transition and climate adaptation, and preparedness for future technologies and artificial intelligence. During the meeting, LPSK representatives presented trade union proposals aimed at ensuring greater social justice, worker protection and sustainable economic development in these fields.
Public sector efficiency should not be measured by cost reduction alone
LPSK stressed that public sector efficiency should not be assessed solely through spending cuts or administrative productivity. According to the trade unions, the quality of public services, working conditions, wage competitiveness and staff shortages should also be taken into account.
The Confederation called for the establishment of a long-term and predictable public sector wage financing mechanism linked to average wage growth, inflation, qualification requirements and labour shortages in critical sectors. LPSK also argued that sustainable financing of public services requires a fairer tax system that relies less heavily on labour taxation and better reflects taxpayers’ actual ability to contribute.
Collective bargaining strengthens economic resilience
The discussion highlighted the role of collective agreements and social dialogue in improving labour market resilience, productivity, social cohesion and fair wages.
LPSK encouraged the OECD to recognise collective bargaining as an essential policy tool and called on Lithuania to expand collective bargaining coverage, particularly in the private sector. The Confederation also proposed creating stronger incentives for employers to participate in sectoral and national-level social dialogue. The National Collective Agreement was presented as a successful example that could inspire broader application of collective bargaining mechanisms.
Climate policies must follow the principle of a just transition
Significant attention was devoted to climate and energy policies. LPSK emphasised that all major climate and energy reforms should include an assessment of their impact on workers, including changes in employment, future skills needs, retraining requirements and income protection during the transition.
The Confederation proposed establishing a permanent social dialogue mechanism on just transition under the Government or the Tripartite Council, involving trade unions, employers, municipalities and relevant ministries.
LPSK also argued that public investment, subsidies and state aid should be linked to quality jobs. Public support should be directed to companies where genuine social dialogue takes place, collective agreements are in force, workers’ rights are respected and decent wages and working conditions are ensured.
Artificial intelligence must be introduced meeting workers needs
Regarding artificial intelligence, LPSK stressed that workers’ representatives should be consulted before AI systems are introduced in workplaces, especially when they affect work organisation, working time, recruitment, performance evaluation, monitoring, pay or dismissal risks.
Trade unions also called for the implementation of the EU AI Act to include a strong labour rights dimension, addressing issues such as algorithmic management, discrimination in recruitment, employee surveillance, automated decision-making and data protection at work.
Quality jobs are key to addressing labour shortages
LPSK underlined that labour shortages cannot be solved solely through labour migration. Labour market policy should focus on improving job quality through decent wages, occupational health and safety, working time regulation, collective agreements, employee participation and lifelong learning opportunities.
The Confederation also stressed the importance of ensuring equal working conditions for Lithuanian and foreign workers, strengthening the capacity of the State Labour Inspectorate and preventing abuses in subcontracting chains, particularly in sectors such as construction, transport, services, platform work and temporary agency work.
According to LPSK representatives, economic modernisation, the green transition and digitalisation can only be successful if people remain at the centre of these processes and workers are treated as active participants rather than passive observers of change.