Employers' Confederation of Latvia (LDDK)Annual Report of 2008Action Plan for 2009

Contents

A statement by LDDK President Vitālijs Gavrilovs:“Businesspeople are the Driving Engine for the Economy and the Future of Latvia!” ...................... 2

A statement by Elīna Egle, General Director of the LDDK:“Responsible Change Offers a Chance to Become Stronger!” ....................................................... 3

The LDDK Strategy for Operations, 2009-2013 .......................................................................... 4

Stabilising the Economy and Restoring Growth ........................................................................... 5

“Flexicurity”: An Orderly Environment for Labour Relations, anIncrease in Labour Productivity and Increased Output ................................................................ 8

High-Quality and Available Human Capital to Enhance Labour Productivity .................................. 10

An Infrastructure, Energy Resources and Environmental Protection to Facilitate Entrepreneurship ....... 12

Representing Interests: A Prerequisite for Latvia’s Competitiveness ............................................. 14

Corporate Social Responsibility for Sustainability ....................................................................... 16

A Challenge from the LDDK ..................................................................................................... 18

Services for LDDK Members ................................................................................................... 19

The LDDK Council ................................................................................................................. 20

Acknowledgement of Partners Helping toPursue Important Initiatives Related to the Interests of Businesses .............................................. 21

MEMBERS ............................................................................................................................ 22

1LDDK

“Businesspeople arethe Driving Engine forthe Economy and theFuture of Latvia!

For 15 years now, the Employers’Confederation of Latvia (LDDK) hasbeen at the epicentre of important pub-lic events. The confederation hasbrought together increasing numbersof employers in Latvia, along with sec-toral and regional organisations ofemployers, as well as relevant profes-sional associations. Businesspeoplewho have a sense of responsibility knowthat it is necessary to come together inpursuit of common goals, and this is a

philosophy which is most extensively tested at a time of economic change. Consolidationof views and understandings in relation to possible solutions to the existing problems canserve as a foundation for Latvia’s ability to overcome the economic crisis and the socialtensions which accompany it.

Latvia’s economy cannot be surveyed separately from the global economy – an econ-omy which is currently undergoing unprecedented reforms. Competitiveness in interna-tional markets is diminishing, there is a lack of financial resources, and individual coun-tries are engaging in protectionism. Neither can Latvia’s economy be considered with-out the participation of employers and their views.

Among the most important achievements for the LDDK has been state, local govern-ment and public support for the social dialogue that is an important means for commu-nication between representatives of employers and employees and the government so asto deal with timely economic issues such as improving the business environment, deal-ing with job creation, and stabilising the national economy. In 2008, there were discus-sions with the government which showed that the prime minister was interested inspeaking to representatives of business, while the President of Latvia wished to becomemore actively involved in the handling of economic issues. These, however, were just thefirst steps toward a compromise between businesspeople and the state. Heavy work willhave to be done in future years, and everyone will have to stand shoulder-to-shoulder inthis regard.

The LDDK has also ensured that representatives of the National Tripartite Co-opera-tion Council (NTSP) will take part in supervising and monitoring resources that are lentto Latvia, this occurring in terms of the economic crisis and to Latvia’s multi-year obli-gations in relation to the European Commission and the International Monetary Fund.The LDDK does not support the government’s fiscal policy of raising taxes. It has insteadpointed to a series of solutions that have been pursued in other countries – lower taxesamong them. One problem for the national economy has to do with short-term liquidi-ty and the ability to absorb the resources that come from the European Union’s Struc-tural Funds. The LDDK has taken part in discussions about financial support instrumentswhich the state can provide while, at the same time, also reviewing national tax policies,assessing the activities of the Structural Funds under entirely new circumstances, andconducting a thorough audit of the state’s functions. The LDDK has proposed solutionsrelated to state guarantees, risk capital, ways of promoting competition, and provisionof services to companies which export goods and services. It is important to ensure thatmoney that has been borrowed to stabilise the national financial system become avail-able in the national economy so as to promote further economic activity.

Also in 2008, there were extensive consultations with organisations of employersfrom other countries at various forums. One of the most successful was an event thatwas organised jointly by the LDDK, the European Commission’s office in Latvia and theLatvian Foreign Ministry. Leaders of employer organisations from the countries of theBaltic Sea region met together for the first time to draft recommendations as to how eco-nomic growth and entrepreneurship can be facilitated in the region. These recommen-dations emphasised integration of labour markets, the limitation of barriers againsttrade and investment, the development of infrastructure, promoting integration in the

energy sector, a more intensive approach toward environmental issues, including in agri-culture and maritime safety, and greater investments in innovations and their practicalapplication. These recommendations have created a framework for Latvia’s nationalposition, as well as for the position taken by the Business Europe confederation.

There was also the first civil society forum to be organised in the Baltic States. Theevent was organised by the European Committee of Economic and Social Affairs, whichhas as its members not just representatives of employers and employees, but also peoplefrom various interest groups. The discussion at the forum was about how the civil soci-ety can take part in the taking of decisions. Participants focused on the theoretical andpractical aspects of this process in the Baltic States and elsewhere in the European Union.The strategic importance of the Baltic States is on the rise, and discussions with socialpartners at the European level often focus on the need to strengthen co-operation amongEurope’s various regions. Good partnership that is based on mutual respect and under-standing and co-operation with neighbouring countries, particularly Russia, is of keyimportance if the Baltic States and the EU as a whole are to enhance welfare in thefuture.

The capacities of Latvian employers in the international environment will be deter-mined by their own ability to work with others. An even playing field for Latvian com-panies at the regional, European and global level will be the determining factor in termsof the competitiveness of Latvia and its economy, as will the relevant government poli-cies in this area. The international competitiveness of the LDDK and its ability to facili-tate transfrontier trade will be strengthened by networks of co-operation with otherorganisations. There are contracts with CIS countries, and there are plans for co-opera-tion agreements to be concluded by 2012 with organisations of employers in Asian coun-tries. This will serve as a framework for further business partnerships, and it will helpto eliminate obstacles against the ability of Latvian companies to enter internationalmarkets. There must be closer and more effective co-operation among the Foreign Min-istry, the Economics Ministry and the LDDK to ensure that norms which are approved arefavourable to Latvian businesspeople and that there is successful representation of therelevant economic interests. Powerful representation of Latvia’s business interests willbe a key prerequisite for the country’s ability to develop new export markets.

In 2009, the LDDK will continue to represent the interests of employers in relationswith Business Europe, the European Economic and Social Affairs Committee and theEuropean Parliament. The organisation will also work with Latvia’s representatives atthe European Parliament. LDDK operations in the international arena are focused onensuring the implementation of reforms so as to promote growth and employment. Theagency also works to seek greater support and investments in innovations and research,better and lesser regulations in the field of business, improvements in the environmentfor entrepreneurship, as well as finances which promote sustainability and competitive-ness. At the European level, there must be further integration of the common market,effective EU-level governance, adaptation to the process of globalisation, a struggleagainst all manner of protectionism, an energy supply system which is secure, competi-tive and environmentally friendly, as well as reforms in the social systems of Europeancountries.

The era of growth and change is continuing, but we face aspects of globalisation suchas the development of technologies, as well as mobility of capital and labour. Entrepre-neurship is the driving force behind the Latvian economy’s development, and its activi-ty and intensity depend on the extent to which the state understands the interests ofbusiness. This involves more than just approving those decisions which help to improvethe business environment. There must also be a defence of national interests at the EUand in the international arena.

We can be strong and proud of our country only if all relevant groups in society worktogether. Together we can ensure growth, find inspiration for new business hopes,strengthen partnerships, and improve our standard of living at the national and theEuropean level.

Vitālijs Gavrilovs,LDDK President

2 LDDK

A statement by LDDK President Vitālijs Gavrilovs:

“Responsible ChangeOffers a Chance toBecome Stronger!”

Despite the increasing difficultieswhich we are facing – lower demand, lessavailable finances, less stability in the busi-ness environment – the fact is that busi-nesses in Latvia have created jobs for thepeople of Latvia, increased the revenue ofthe state and local government budget,and helped the name of Latvia to becomemore popular throughout the world. Theremust be serious changes in the public andprivate sector, because these make it possi-ble for us to grow stronger and to increaseLatvia’s growth and welfare.

2008 was a year in which politicians and civil servants in Latvia had to face a very harsh les-son. They had to learn not only to write up elegant strategic documents and concepts, but alsoto implement those in real life. Even more, they had to listen to business organisations. Ambi-tious goals can be reached in Latvia, if we move from formal co-operation to a true partnershipamong government institutions, local governments, businesses and non-governmental organisa-tions. That is the approach that is needed in defending national interests at the EU, as well as inoffering kindergartens and senior citizens homes to the people of Latvia.

Thoughtless spending in previous years expanded the size of the apparatus of governance, aswell as Latvia’s external debt. The government failed to communicate with the public when itcame to stabilisation of Latvia’s financial system, and that is going to be reflected in the coun-try’s economy in future years. There will be less economic activity, GDP will decline substantial-ly, resources will become more expensive, and there will be limited availability of finances so asto ensure short-term liquidity.

The LDDK has been actively involved in the working groups which the Ministry of Finance hasset up to deal with these issues. We have insisted on the need to model planned changes in taxpolicy, looking at how taxes affect the business environment and other revenue from taxes. Nounified modelling system was established, alas, but thanks to members of the LDDK and the Eco-nomics Ministry, businesses demonstrated the ability to model changes in the corporate incometax so as to promote modernisation. The government was called upon not to increase the tax bur-den at a time of economic decline. The LDDK also called for stimuli aimed at enhancing compet-itiveness and ensuring the production of products and services with a higher level of added value.During the course of the year, the LDDK helped businesspeople to take an active part in discus-sions about the national budget in Latvia. Sadly, the agreement that was concluded by the Cabi-net of Ministers, the government and the Latvian Association of Free Trade Unions on principlesrelated to the 2009 national budget was not always observed. Our social partners and the gov-ernment agreed to reduce administrative spending in government by 15%, but the governmentfailed to keep that promise once there were problems in the financial sector that were created bythe economic decline.

It would be easier to overcome this crisis if those who are in government were to listen tobusiness representatives in a far more timely way. Over the last two years, the LDDK and manyeconomic experts have called repeatedly for members of Parliament to be more far-sighted inreducing administrative spending, shutting down functions that are unnecessary, and establish-ing partnerships which make it possible to outsource those functions that are permitted by lawto the private sector. In late 2008 and early 2009, steps were taken which must be seen as pos-itive ones – the size of the governance apparatus and the expenditures of that apparatus werereduced. Still, this is a process which is occurring too late, in too big of a hurry, and withoutmuch consideration as to the effects. There has been no functional audit, there has been no eval-uation of individual employees. We are very pleased that the government has not decided towaive the acceptance of funds from the European Union’s Structural Funds, because that is moneywhich must be seen as developmental funding for future growth.

In order to receive loans from the European Commission and the IMF, the government andParliament approved an economic stabilisation programme. The LDDK generally supported thatprogramme, but we categorically objected to the aspects of fiscal policy that were included in thatplan. The VAT rate was increased to 21%, the discount VAT rate was increased to 10%, and the

range of goods and services to which the reduced rate is applied was narrowed. This attempt topatch up holes in the national budget not only meant that the tax burden was shifted more ontothe shoulders of businesses, but also that the fiscal plans are in contradiction to the economicrecovery plan which the European Commission prepared for Europe. There must be more workon the effective use of international loans and the mechanism whereby those loans will be repaid.The government must seek synergy between state and local government investments, as well asthe investments which come from the financial sector and the national economy so as to facili-tate economic activity.

Some decisions were taken in 2008 which helped to deal with issues that are important tobusinesses – reducing the gap between the competitiveness of Latvian businesses and the com-petitiveness of businesses in the other Baltic States. The problem here has always been that thereare different legal regulations for the business environment. The LDDK worked hard to reducethe cost of human resources – for instance, to reinstate the ceiling on social security paymentsthat was removed thoughtlessly and made it far more expensive to attract highly qualifiedemployees, to reduce the cost of health care, and to reduce the number of sick days which busi-nesses have to cover.

The LDDK gained the support of the Welfare Ministry in its attempt to facilitate employmentand to develop human capital. Co-financing from the European Social Fund made it possible tobegin consultations on issues related to labour rights and job safety with companies in Latvia’sfive regions. This helps the LDDK to support companies in terms of how work is organised. We’reworking on legal aspects of labour relationships, we seek to improve the environment for busi-ness, to reduce bureaucracy and to eliminate unnecessary costs in company budgets. All yearlong we continued to work on amendments to the labour law. We achieved several compromis-es which helped companies to reduce their human resources expenditures. I might add that theremust be a great deal of effort in ensuring that no new demands are made against employers –ones which create additional administrative obstacles and costs. We need to simplify proceduresand strike a balance between the responsibilities of employers and the responsibilities of employ-ees.

The LDDK and its member organisations made a substantial investment in drafting concep-tual documents related to professional education and other parts of the educational system. Wealso helped to draft the necessary laws and regulations. During the first half of 2009, the LDDKwill continue this work, calling on the legislature to amend the law on public procurement, thelaw on public-private partnership, and the law on the VAT. We are hoping to get the governmentto review the decisions which it has taken in terms of fiscal policy and reach new agreements onfundamental aspects of taxation during the period between 2010 and 2013. This will be an exam-ination of the relationship which business has with political forces and the Civil Service, and itwill also test the relationship between companies on the one side and trade unions and local gov-ernments on the other.

Harmonised work will be facilitated by increased LDDK capacities in terms of the EuropeanSocial Fund (ESF). This is something that is supported by the State Chancery. The plan is toestablish representative offices in all five of Latvia’s regions, doing so in partnership with region-al associations of businesspeople.

2009 will be a period of challenge at all levels. There must be substantial reforms in nation-al governance. Changes are needed in local governments, and the method for managing issuesand thinking about them must change. Professionalism, competence and responsibility mustdominate over the interests of individual politicians or companies. We need a situation in whichan international loan is a long-term solution, one that helps us to stimulate economic activity,overcome the crisis, and introduce the euro in pursuit of stability and competitiveness in thefuture. The national budget deficit must be reduced, and the way in which this is done mustencourage economic activity and self-employment in our country.

The LDDK is prepared to offer its support to companies and to help the government to pur-sue its plans on economic stabilisation, doing so on the basis of proposals that have been madeby members. The LDDK will continue to support employers and businesspeople during this timeof change and challenge. I call on all of you to defend your views more actively. Make use of theplatform which the LDDK offers for representing interests, as well as the instruments which wehave to help you to increase your influence.

Elīna Egle,General Director of the LDDK

3LDDK

A statement by Elīna Egle, General Director of the LDDK:

The LDDK Activity Strategy 2009-2013

The people of Latvia and the country’s economy have encounteredthe risks of globalisation – instability in the financial system, economicrecession, protectionism in many countries, and increased unemploy-ment. The LDDK must be more active in consolidating the businesscommunity in pursuit of structural reforms. The LDDK is aware of thefact that the potential for a democratic society, a market economy and asystem of good governance must be implemented in full in Latvia.Opportunities for synergy must be sought out, and these are provided byLatvia’s membership in the EU and other international organisations. TheLDDK is Latvia’s largest and most influential organisation of employers,and it can offer substantial support to the country’s business community interms of strengthening the competitiveness of companies in the domesticand international market, encouraging local residents to be more active ineconomic terms and to enhance labour productivity, and also improvingstate and local governance in terms of raising levels of welfare and thecountry’s standard of living.

In cognition of the 90th anniversary of the Republic of Latvia, the 15thanniversary of the LDDK, and the approach of the fifth anniversary ofLatvia’s accession to the EU, the members, council members and direc-tors of the LDDK have evaluated that which was accomplished between2004 and 2008, also drafting an LDDK operations strategy for the periodbetween 2009 and 2013. This strategy is based on an evaluation ofLatvia’s business environment that was presented in the World Bank’sDoing Business study, on statistical indicators which describe the Latvianeconomy, and the achievements which the LDDK has ensured in consol-idating and representing business interests at the national, EU and inter-national level. Given the demands and responsibilities that are related tothe rapid changes which are occurring, the LDDK has defined a new mis-sion and vision for itself, characterising the organisation’s values and areasof activity so as to promote the more active participation of the businesscommunity in LDDK operations. We also hope to promote greaterunderstanding and support among our partners and the public at largewhen it comes to the goals which we have identified. In preparing thesegoals, missions and indicators of results for the next phase in our opera-tions, we took into account things which LDDK members and employeeshad told us. We also made use of international practice, as defined bymembers of Business Europe, the experience of the InternationalOrganisation of Employers, and the OECD.

Our missionn To represent the interests of Latvia’s employers so as to enhance busi-ness competitiveness and the quality of work and life.

Our visionn The LDDK is the most influential representative of the interests ofemployers in Latvia.

Areas of operationsn The LDDK has two areas of operations – defending the interests ofbusinesspeople and representing employers in social dialogue.Protection of the interests of LDDK members represents organised activ-ities on the part of members of the business community in pursuit of bet-ter regulations and laws related to business operations. The involvementof the LDDK ensures that the decisions that are taken by the governmentare legitimate insofar as economic and social issues are concerned. Theprotection of interests shapes the foundations for rule of law and a dem-ocratic society in Latvia.

n Representation of the members of the LDDK shows that rights andobligations are being pursued, as stated in the laws which regulate theconfederation’s operations. As the largest organisation of employers inLatvia, the LDDK must represent employers in social dialogue with thestate and local governments, promoting social peace and welfare. TheLDDK is also charged with consolidating the views of employers when itcomes to issues that are of importance to them and to employees, pro-moting social partnership and representing employers in the institutionalframework of tripartite activity.

Goalsn Improving the legal environment for entrepreneurship and the qualityof public governance services that are offered;n Representing employers at the sectoral, regional, national, Europeanand international level;n Attracting new members to expand the level of representation andto bring employers together;n Ensuring the finances that are needed for the organisation’s opera-tions;n Ensuring effective and high-quality processes in the organisation;n Improving the services that are offered.

Indicators of resultsn An increased number of proposals that are taken into account, aswell as qualitative improvements;n Ensured participation in the decision-making institutions which engagein social dialogue;n Increased representation of employees in Latvia;n Increased financing and better financial indicators;n Improved satisfaction among members and employees, better com-munications and a better reputation;n Qualitative and quantitative improvements to seminars, conferences,events for an exchange of experiences, research projects, consultations,and Internet sites.

4 LDDK

Stabilising the Economy andRestoring Growth

The global financial crisis has had an effect on economic activities in theworld’s market. Such activities have dropped significantly, and this hascreated a series of questions about the agenda of national fiscal policy –the availability of financial resources, ways of facilitating competitiveness inexport markets, and ways of facilitating economic activity.

Source: Eurostat

2008 began for the LDDK by developing common views with PrimeMinister Ivars Godmanis when it comes to ways of supporting varioussectors. Because the economic decline was already forecast, there wasonce again a discussion about the need to support priority sectors or todesign specific government assistance programmes for all sectors. Theproblem that was related to this political decision was that there wereunclear statistical indicators about the contributions which various sectorsmake toward the economy and the gross domestic product.

In order to facilitate entrepreneurship and honest competitionbetween the private and the public sector in the provision of services, thegovernment was urged to review the excessive administrative apparatusof the public governance system, also reviewing functions to determinethose that are not characteristic of a government system and turn themover to the private sector so that it could provide those services on a mar-ket basis. The LDDK also had proposals vis-ą-vis the system of wages inthe public and private sector, focusing on ways of increasing the minimumwage and the untaxed income minimum. There were also requests toreview the way in which employers are expected to pay for employeeswho are away from work for reasons of illness or disability.

Foot-dragging on this situation created a situation in which the financialcrisis that began in the United States found Latvia unprepared when itreached its shores. In the 3rd quarter of 2008, the international financialcrisis created an overall decline in economic activity. Recessions began inmany countries, including Latvia.

Source: IMF, EU and LDDK data about GDP changes now andin future in Latvia

The point is that there has been a rapid increase in unemployment in theworld. In America, it reached its apex in January 2009, when 70,000 workerslost their jobs in a single day. The increase in unemployment in Latvia can beexpected to continue throughout this year. The most pessimistic forecast isthat by year’s end, it will have reached a level of 19%.

Source: IMF, EU and LDDK data on changes in the Latvianunemployment level now and in future

There was also a decline in investment values in the last quarter of 2008,and this can be attributed to unclear policies, as well as insufficient communica-tion about the stabilisation of Latvia’s banking system, not least the nationalisa-tion of the Parex Bank. Substantial finances flowed out of the national econo-my, and overall deposits in commercial banks declined by 10%.

European countries are investing vast resources in their banking sectorsso as to stabilise economies and restore economic activity. They are plan-ning to offer tax relief incentives and support programmes for enterprises.Many European countries have plans to rescue banks, and these involve aninflow of capital, the implementation of guarantee plans, or the purchase ofassets. In the euro zone alone, this process has cost EUR 300 billion, or3.3% of the zone’s GDP. Total guarantees have amounted to nearly EUR1.7 trillion, which is 19% of the zone’s GDP.

Source: ECB, Eurostat (as of December 2008)

5LDDK

The LDDK Council meets with Prime Minister Ivars Godmanis

Source: ECB, Eurostat (as of December 2008)

The process in Latvia has been a different one. Money had to be bor-rowed from foreign institutions in order to save the financial sector and savethe stability of the lats. At the same time, the government dragged its feet inthe provision of direct aid to business so as to maintain consumption, to pre-serve jobs, and to create new jobs. Employers, therefore, have been forcedto act immediately so as to ensure a radical reduction in costs. Nationalbudget income is declining, and losses are caused to the national economy.

Late in 2008, the government promised to implement a series of struc-tural reforms so as to stabilise the economy. The National LisbonProgramme and a special programme to stabilise the macroeconomic situa-tion in 2008 and 2009 were both to be pursued. Government documentsspeak to a series of new steps taken to facilitate the development of newproducts and technologies. This refers to the greater involvement of the pri-vate sector in research and development, greater flexibility in the labour mar-ket, promotion of exports, and other financial instruments and projectswhich are aimed at improving the environment for business.

On December 11, 2008, Parliament approved a programme for eco-nomic stabilisation and restoration of growth in Latvia. The aim of this pro-gramme is to stabilise the Latvian economy, restore sustainable stability, andimprove the international competitiveness of the Latvian economy. Thisrequires strict monetary and fiscal policies, stabilisation of the financial sector,and stabilisation of the overall competitiveness of the economy. The EU andIMF have both said that if these reforms are to be successful, the governmentand legislature will have to win the support of social partners – organisationsof employers, trade unions, and the public at large.

The first thing that is needed in improving the competitiveness of theeconomy is a restoration of the flow of resources in the national econo-my. Under current economic circumstances, businesses are having thegreatest problems in finding financing even for the purposes of short-term liquidity.

The foundation for companies and the country’s competitiveness isexports. There are various plans to stimulate the economy, andemphasis is being placed on the export potential of companies in theprocessing sector and in sectors which export services. Support forexporters will be offered through various programmes, including thespecial investment fund instrument of export credits. Export supportinstruments and an effective export strategy are urgently needed, giventhe rapid changes that are occurring in the global economy and thedecline in international trade. Export support instruments and theirstructural framework must be reviewed.

Fundamental achievements in 2008 in thearea of economics and finances

n Participation in scientific and practical conferences to enhance understandingabout the opportunities and limitations of businesses when it comes to involve-ment in research problems, also addressing the difficulties which companies havein protecting intellectual property rights in the EU.n Proposals on changes to the corporate income tax in terms of tax breaks onprofits and investments in R&D, developed in partnership with the EconomicsMinistry, LDDK members and the Latvian Chamber of Commerce and Industry.n Support for sectors represented in the LDDK to provide resources for prod-uct and service development and a reduction in the scope of administrativeobstacles in this area.n Support for policies related to specific economic sectors which are focused oncreating favourable tax policies and on reducing administrative obstacles. Thisrefers to sectors such as telecommunications, food production, the transporta-tion sector and retail sales.nGood negotiations with the government, the Welfare Ministry and the FinanceMinistry on the untaxed income minimum, the individual income tax, and theneed to increase the minimum wage so as to keep up with increasing costs andto promote people’s purchasing ability.n No progress on amendments to the law on commerce of a law which wouldallow tax relief to be applied to stock options in terms of the financial participationof individual employees. Ridding them of social contributions would encourageemployees to take financial participation in their company and to take a moreactive interest in that company’s development.n Support for the LDDK proposals related to the VAT tax, with work on newlaws concerning the VAT and the individual income tax that are to take force in2010. Amendments to the law on taxes and fees will allow the State RevenueService to divide up tax debts or postpone their repayment.n Statements about the unfavourable consequences in terms of public health,

6 LDDK

LDDK General Director Elīna Egle, Prime Minister Ivars Godmanis and LDDK President VitālijsGavrilovs at an LDDK leadership breakfast

LDDK President Vitālijs Gavrilovs and Finance Minister Atis Slakteris sign a resolution onco-operation and on things that must be done to promote business.

national budget income and honest competition which result from higher taxesin socially sensitive sectors in 2009 – a time when the risk of unemployment ison the rise and the purchasing power of local residents is shrinking.n Active participation in the preparation of policy planning documents and inpublic debates focused on macroeconomic stability and the need to implementthe euro in Latvia as soon as possible.n Support for the availability of monies from the EU’s Structural Funds and themaintenance of state financing in the 2009 budget to enhance the competitive-ness of companies.n Proposals on increasing the effectiveness of public administration so that dupli-cation of efforts is prevented, unnecessary functions are not handled, and out-of-date functions are optimised. The LDDK has also supported attempts to bringgreater order into policies related to wages and to develop E-governance to afurther degree.

Foreign trade

The LDDK has made proposals on financing from the EU’s StructuralFunds so as to ensure the effectiveness of attempts to enter foreign marketsand to study those markets. The agency encouraged Latvia to audit its for-eign economic policies so that economic relations can be strengthened in theregion and with neighbouring countries. Diplomats posted abroad wereinformed about economic issues and the needs of companies.

When it comes to foreign trade, Latvia is in 25th place among EU mem-ber states, whereas in 2008 it was in 18th place. Latvia is far behindDenmark (3rd), Finland (4th) and Norway (7th), and it is close to Lithuania(23rd). The LDDK must help to deal with foreign trade issues by offering itssupport to the Latvian Chamber of Commerce and Industry. The determi-nant factor in terms of Latvia losing its positions has been a 12% increase inexport-related costs, with costs related to imports rising only by 5.88%. Thebattle over international markets can only become more harsh in future, andthe ability to strike a balance in prices and to create the advantages of com-petitiveness will become all the more important.

Source: Doing Business, 2008

According to the Doing Business report about Latvia, export-related costsexceed import-related costs by more than 5.6% in 2009. Preparing exportstakes 7.6% more time than preparing imports. In terms of the index of invest-ment protection, Latvia has a stable indicator of 5.7, and in this it compares toFinland (5.7 and 53rd place in the world) while lagging a bit behind Poland(6.0), Denmark (6.3) and Norway (6.7), but being ahead of Lithuania (5.0).

Source: Doing Business, 2008

While Latvia is comparable to Finland in terms of protection of invest-ments, it is far behind when it comes to foreign trade. According to theDoing Business report, export costs are rising in 2009. What’s more, itis cheaper in Latvia to import things than to export them.

Exports ImportsNo. of necessary documents: 6 No. of necessary documents: 6Amount of time: 13 days Amount of time: 12 daysCosts per cargo: USD 900 Costs per cargo: USD 850

Source: Doing Business, 2008

Goals in 2009

n To improve procedures related to launching and shutting down a busi-ness;n To improve documents related to sectoral policy planning, as well as rel-evant normative regulations;n To establish a sustainable system of tax and fee policies, developing basicpositions vis-ą-vis taxation and encouraging the implementation of plannedtax policies in Latvia;n To review the increased VAT rates, improve the system for VAT repay-ment, draft norms permitting a choice in terms of VAT rates and a procedurefor reverse application of the VAT, and halt advance VAT payments into thenational budget;n To stabilise the financial sector and renew the flow of finances into thenational economy – ensuring financial instruments for entrepreneurshipwhich are worth LVL 1 billion a year, the priority being government supportvia the banks that are owned by the state. In the banking sector, there mustbe favourable conditions for the restoration of loans to businesses, with aneffective separation of debt burdens between banks and those who havetaken out credits;n To improve anti-dumping laws and to strengthen the competitiveness ofcompanies in Latvia;n To simplify procedures related to the use of funds from the EU and tospeed up the circulation of such financing;n To establish a commission for oversight of international loans, involvingsocial partners and representatives of the Latvian Association of LocalGovernments in this process while also ensuring monitoring of fiscal policychanges, wage systems and competitiveness in Latvia;n To take steps to restore economic activity and enhance competitiveness– improve foreign trade and increase companies’ export potential;n To protect company investments in Latvia and abroad.

7LDDK

Kristaps Klauss, Executive Director of the Latvian Timber Industry Federation, Finance MinisterAtis Slakteris, LDDK vice President Aiva Vīksna, and LDDK President Vitālijs Gavrilovs in discus-

sions with representatives of the International Monetary Fund

Flexicurity: An Orderly Environment for Labour Relations,an Increase in Labour Productivity and Increased Output

Relations between employers and employees must be improved onthe basis of so-called “flexicurity” principles if sustainable business and effi-cient organisation of work are to be ensured. These principles speak toa balance between flexibility and security in employment, also focusing onactive employment policies. The goal of flexicurity is to merge social jus-tice with excellent economic indicators.

Source: Doing BusinessThe results of this study show that the indicator related to the

hiring and sacking of employees in Latvia has worsened in com-parison to what other countries have done to implement the prin-

ciples of flexicurity.

All employers, including the government as an employer, areresponsible for improving the quality of working life so as to promotemore substantial welfare for local residents, as well as competitivenessfor employers. The effectiveness and quality of work do increasewhen the working environment is orderly, safe and healthy. This, inturn, enhances the competitiveness and productivity of entrepreneur-ship. When reforms are being implemented, it is particularly difficult tomaintain harmonious and equally responsible relations betweenemployers and employees. The principles of flexicurity are meant topromote flexibility in the labour market, better legal relations betweenemployers and employees, and the provision of sufficient social protec-tions at the same time. If this is to happen, there must be agreementon concrete steps which social partners will take at the sectoral andnational level.

Properly structured partnerships are aprerequisite for management of responsiblechanges.

The cornerstone for social dialogue at the national level right nowis a general agreement that was concluded in 2007 by the LDDK andthe Latvian Association of Free Trade unions (LBAS). It was reviewedin 2008. The emphasis in this agreement is on the sustainable devel-opment of Latvia’s economy, the culture of labour relations, improve-ments to working environments, and the emergence of a strong andorganised civil society. In 2008, the LDDK and the GermanConfederation of Employers completed work on a project that wascalled “Social Dialogue at the European and National Level.” The proj-ect allowed experts to stress the fact that the national model for socialdialogue in Latvia is one of the most successful practical approaches to

this issue in all of Europe when it comes to representing the interestsof employers. Experts also insisted that there must be stronger socialdialogue at the sectoral level. Agreements must be reached on oper-ating principles that are of importance to the various sectors – oneswhich improve relations among representatives in the relevant sectorand help to improve honest competition.

The number of collective labour agreements that are being concludedby companies is gradually increasing, and that shows that there is high-quality dialogue between employees and employers. During this periodof change, however, there is also a new trend – employers can no longerfulfil all of the obligations that are indicated in collective labour agreements,and so it is necessary to amend those contracts.

Employees who understand the economic situation, know howimportant it is to support employers, and agree to sensible amendmentsto collective labour agreements are to be commended. In those caseswhen there is no such understanding, employers become hostages to therelevant situation. They’re forced to violate the terms of collective agree-ments and reduce the benefits that are addressed therein without theagreement of employees. This can lead to labour disputes and causeharm to the public reputation of companies and Latvian employers.

Because employers are forced to optimise costs, there are cases inwhich costs related to job safety are reduced, and in the long term thiscan increase health-related expenditures for employees. In planningexpenditures in this regard, it is important to remember that resourcesthat are devoted to job safety are recouped indirectly, and benefitsaccrue both to employers and employees. In 2008, the LDDK begana new ESF project, “Practical Application of Labour Relations andNormative Acts Related to Job Safety in Sectors and Companies,” withthe aim of providing support to employers in the application of the lawand the relevant legal acts. The aim here was to reduce the numberof violations of rules, as well as the number of work-related accidents.The LDDK also sought to ensure that employers and employees are asfully informed as possible about requirements related to legal relation-ships, job safety and job-related health. The result of this should bethat the number of complaints filed with the State Labour Inspectoratewith respect to job relations and violations of relevant norms declinesby 15% in comparison to the situation in 2004. Between 2009 and2013, employers can reduce costs and receive free consultations onlabour laws and job safety issues in the five largest cities in Latvia’s ter-ritorial regions – Rīga, Valmiera, Daugavpils, Jelgava and Ventspils.Companies from dangerous sectors can receive a free evaluation ofrisks in their labour environment.

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The LDDK concludes an agreement with the Latvian Personnel Management Association.

Results in 2008 which will make itpossible for companies to reduce costs

n The law on maternity and sickness insurance was amended to statethat as of January 1, 2009, the number of sickness days which employershave to finance is reduced from 13 to 9.n Agreement has been reached on the frequency of obligatory healthchecks, the examinations that must be conducted by specialists, and theoptimisation of the number of such examinations. In those areas in whichthere are no significant risks against the health and safety of employees,mandatory health checks are to be less common – once every threeyears instead of once a year, as is the case now.n Agreement was reached on suspending planned amendments to thelabour law that would have limited registration of the working hours ofemployees or to extend leave that must be offered when a child is sick.n Agreement was reached on a series of contracts with social partners inEurope which are aimed at increasing the understanding of employers,employees and their representatives about harassment and violence onthe job and the comprehension of such activities. Employees, employersand their representatives will be provided with new procedures in termsof discovering, preventing and dealing with these problems, also workingwith non-governmental organisations and state and local governmentinstitutions to prevent harassment and violence and to promote goodgovernance at all places of employment.n In co-operation with Fontes, the LDDK conducted annual researchabout wages, finding that the increase in wages was more rapid than anyincrease in productivity. This led to recommendations to employers, aswell as state and local government institutions. The study allows compa-nies to forecast trends in wage-related policies.n A partnership agreement was concluded with the Latvian Associationof Personnel Management so as to ensure more effective support forcompanies which want to implement accountable and effective wage-related policies.n The LDDK presented its views on a number of draft laws and regula-tions on issues such as wages in the public sector, the aim being to reducethe incommensurate increase in public sector wages, as opposed to pri-vate sector wages.

Goals in 2009

n To continue work on amendments to the labour law to simplify theway in which employees can be hired and sacked and to reduce labour-related costs. One example is the possibility of agreeing on the repay-ment of costs related to professional training and similar costs when atrained employee leaves the job. Another is to grant unpaid study leavefor employees who need to take state examinations.n To draft new Cabinet of Ministers regulations on how accidents areinvestigated and registered, the aim being to make it easier for employersto investigate and register such events. This will reduce the administrativeburden by simplifying the relevant documents and issuing instructions tosay that an accident must be investigated only if the relevant employee isunable to work for 72 hours (as opposed to 24 hours, as is the case atthis time).n To continue work on other issues related to improvements to theworking environment at jobs and to a reduction in the administrative bur-den which employers face.n To support employers in dealing with labour disputes at the individual,sectoral, regional and national level.n To represent the views of Latvian employers in discussions aboutamending the EU directive on working hours to ensure that inactive mon-itoring periods are enshrined in the directive so that there is no addition-al encumbrance for employers – encumbrance which would mean addi-tional costs and limitations for companies in Latvia.

n To promote the sustainability of the special social security budget andthe more effective management of financial resources. This requiressocial dialogue at the national level.

An ESF project:“Practical Application of Normative ActsRelated to Labour Relations and Job Safety inSectors and Companies”, 2009

In the context of this project, the LDDK will ensure:n Free consultations on labour rights and job safety for employ-ers in Rīga, Jelgava, Daugavpils, Valmiera and Ventspils;n The opportunity for companies in dangerous sectors toreceive free risk evaluation of their working environment so thatemployees can be informed about risks which exist at their placeof employment, techniques which will help to ensure job safety,and a preventive culture at all places of employment;n Training for employees on job safety issues;n Distribution of information about labour rights and job safetyissues when commercial operations are begun;n More information for employers through supplements to the“Employer Handbook.”

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High-Quality and Available Human Capital to Enhance Labour Productivity

EU forecasts indicate that by 2020, the number of highly qualifiedemployees in the labour market will have to increase by 30%, the num-ber of people with medium-level qualifications will have to increase by50%, and the number of poorly qualified employees will have to rise byonly 20%. Latvia has traditionally been a country in which substantialnumbers of people pursue and earn a higher education. In 2008, thenumber of people with newly earned doctoral degrees in engineering andthe social sciences increased substantially. The LDDK insists that theremust be more careful evaluations of the extent to which study pro-grammes in the area of higher education are in line with the needs of thelabour market.

Source: CEDEFOP, 2008

In 2008, the LDDK organised a competition on master’s theses fromstudents who were studying business management, and the results of thiscompetition allowed the agency to make judgments about the potential ofnew specialists. The LDDK is sure that recommendations and proposalsthat were given in the master’s theses would promote development andcompetitiveness in economic sectors and in individual companies.Toward the end of 2008, a conceptual document was drafted – “A Modelon Higher Education Study Programmes and Distribution of Study Slotsby Sector Which is in Line with the Country’s Development.” The aimhere is to introduce new principles in the financing of professional andhigher education, also increasing the level of responsibility of educationalinstitutions for the spending of money from the national budget.

EU labour market forecasts which were published in 2008 focus onthe period until the year 2020, and the central thought is that if the num-ber of workers needed to ensure economic development and theprogress of the labour market is to be provided for under the currentdemographic situation in Europe, more attention will have to be devotedto the quality of professional education, as well as the number of studentswho pursue professions which require medium-level qualifications.

Source: Eurostat, May 2008

The LDDK believes that the quality of professional education mustbe improved, and the number of people who take part in professionaleducational programmes must be increased. Fewer than 30% ofyoung people in Latvia choose to attend professional educational insti-tutions at this time. According to the Education Ministry, 75% of highschool graduates go on to higher education institutions. The labourmarket in Latvia is joined each year by substantial numbers of youngpeople who do not have professional qualifications or working skills,which means that employers have to spend money on the training ofsuch individuals.

Goals in 2009

n To propose tax relief for companies which invest in innovations,as well as the education, ongoing education and training of peoplewho are involved in the creation of such innovations;n To study various sectors in terms of the development of humanresources and their competence and skills so as to create qualificationassessment structures for the various sectors;n To promote the development of a system of ongoing educationand improvement of qualifications in the various economic sectors,ensuring that this becomes part of action plans related to lifelong edu-cation;n To ensure the involvement of employers in evaluating the appro-priateness of higher education programmes, increasing the numberof people who represent employers on accreditation and qualityassessment committees;n To make proposals on new higher education study programmesand the financing of study slots in such programmes;n To promote optimisation and greater effectiveness among institu-tions of professional education, bringing ESF and ERDF finances intothe process so as to develop infrastructure and educational contentn To develop a system for the ongoing education of instructors atprofessional education institutions, helping them to work more close-ly with employers and businesspeople.n To increase the competitiveness of higher education in Latvia andto ensure its international recognisability by attracting students andinstructors while relaxing rules related to visas and residency permits.

Innovations

It has often been said that innovations must be the main driving forcebehind Latvia’s economy. In 2008, Latvia was one of the last places in theEU in terms of increases in innovations. According to the methodologyof a progress report on innovations in Latvia, the most important indica-tors in this area are:q The development of human resources (their involvement in education-al processes);q Government support and financing, as well as company investments inR&D;q Registration of patents and intellectual property rights;q The emergence of new and innovative companies;q Employment in the areas of progressive technologies and knowledge-intensive sectors and services.

The LDDK believes that if the system of innovations is to be improved,there must be harmonised national policies – simultaneous support forand development of all areas of innovation. This refers to financing, riskmanagement, public-private partnerships, and the availability and devel-opment of a relevant labour force.

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Source: European Innovation Scoreboard, 2008

Support for research and development (R&D)

The LDDK would like to point out that other indicators related to thedevelopment of innovations remain unacceptable in Latvia. Governmentsupport for science and corporate investments in R&D have increased,but uninterrupted annual increases in such financing must be ensured soas to provide for a higher number of inventions and patents. Only theimplementation of market-oriented research in manufacturing processeswill ensure a higher number of innovative companies, higher productivi-ty, and higher employment in the area of progressive technologies andknowledge-intensive sectors of the economy.

Goals in 2009

n Annual increases in government financing for R&D, which cannot fallbelow 0.15% of GDP so as to promote market-oriented research;n Support for new products and technologies, offering ways of increas-ing financing and support from the European Union’s Structural Funds forthis purpose;n Ensuring the availability of Structural Fund monies for new science andtechnology parks and competence centres, as well as a cluster supportprogramme which facilitates the activities of co-operation networks;n Submitting proposals from businesspeople on national priorities in sci-ence so as to finance fundamental and applied research;n Promoting greater co-operation between business and science, withinvestments in research and modernisation, as well as the establishmentof the relevant systemic, institutional and financial mechanisms.

Employment

Unemployment increased and the number of jobs decreased in Latvia in2008. The current decline in economic activity has had a deleterious effect onbusiness development, but worsening opportunities in the labour market mayencourage some people to start up their own businesses. The LDDK insiststhat economically active residents must be given a chance to develop their busi-ness skills so that they can become professionally active and find new opportu-nities in life. The country’s economic development will be dictated by the abil-ity of the country’s residents to adapt to new circumstances, increasing andexpanding their skills and professional competences.

In terms of indicators related to the development of innovations, Latvia hasthe lowest achievements of any EU member state when it comes to the estab-lishment and development of new and innovative companies and in theemployment of local residents in sectors and services related to progressivetechnologies and knowledge-intensive processes. One indicator related tobusiness operations is the ability of the state to attract highly qualified specialistsfrom other countries. Foreign workers in Latvia, however, are largelyemployed in sectors which do not offer much in the way of added value, andthe number of qualified specialists will decline now that ceilings on social secu-rity contributions are being lifted. The free movement of labour in the EU hasmeant that Latvia has become a source of labour for Western European coun-tries. The people who have left Latvia have often been economically active

residents who now work in professions which require little in the way of qual-ifications and sectors with a low level of added value.

In 2008, the LDDK was involved in a survey of employers which was con-ducted by the State Employment Agency to determine the true situation in thelabour market. The LDDK believes that if there is to be proper monitoring ofthe labour market so as to make short-term predictions about its development,then analysis of labour market trends and the forecast system which applies tovarious sectors will have to be developed further, and organisations of employ-ers will have to be involved in this process.

Goals in 2009

n To draft proposals on reducing unemployment and taking active stepstoward increasing employment so as to facilitate the preservation of exist-ing jobs, to enhance productivity and to create new jobs;n To support a programme on attracting workers and developing humanresources in those sectors which have potential in terms of exports andinnovations;n To make proposals and offer support for the development of a strate-gy on employment and the professional and geographic mobility of theworkforce in Latvia, the aim being to ensure the availability of workers andthe development of resources;n To work with the State Employment Agency to develop new projectsaimed at enhancing employment among job seekers with a higher educa-tion, helping them to develop entrepreneurial and business competence;n To help in the design of training programmes for unemployed peopleand job seekers, with an eye toward the development of competenceand skills so as to expand the ability of individuals to find jobs, to providefor the professional mobility of the workforce, and to prevent peoplefrom pursuing professions that are too narrow and not at all promising;n To develop the system via which competence learned through profes-sional activities and informal education processes is developed further andenshrined in the country’s normative acts;n To promote the availability of ESF financing for labour market forecasts,projects aimed at active development of employment opportunities, adulteducation centres, educational companies which provide professionaleducation and training for working and non-working adults, as well asqualification and examination centres for the various sectors of the nation-al economy.

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LDDK President Vitālijs Gavrilovs presents the Annual EffectiveManagement Award to Baiba Paševica, director of the State

Employment Agency.

An Infrastructure, Energy Resources and Environmental Protection toFacilitate EntrepreneurshipRegional policy in Latvia

In 2008, the Latvian government approved a law on developmental plan-ning which was aimed at promoting the country’s sustainable and stabledevelopment via a new planning system. Since then, a legal framework hasbeen created for the drafting and implementation of policy planning docu-ments. The LDDK has taken part in forums and working groups as an activeparticipant in the preparation of a national development plan for 2007-2013,as well as a sustainable development strategy for Latvia. This latter documentsets out long term development priorities and prospects for spatial develop-ment in Latvia. Once approved by Parliament, the strategy will become thecountry’s main planning instrument, and it will have the force of law. Allstrategic planning and development documents in the nearer and furtherfuture will be prepared in accordance with the directions and priorities thatare defined in this strategy. For that reason, the document will be particular-ly important for businesspeople who are planning their business prospects.

The most important achievement in 2008: The LDDK continued towork with the State Land Service to change the way in which the cadas-tral value of properties is determined. This helped to ensure lower realestate tax rates for companies. These changes allow businesses to investin modernisation and development, as well as to create new jobs.

Goals in 2009

n Administrative and territorial reforms were completed in Latvia, and109 administrative district councils and nine city councils in the country’smain cities will go to work in June. The LDDK will have to continue towork on social dialogue in Latvia’s regions, focusing particular attention oninfrastructure development, education and the environment.n In order to promote territorial development, businesses have to becomeinvolved in territorial planning at the local government level so as to facilitatethe development of entrepreneurship in Latvia’s various regions.n EU funds must be used for the development of the regional infrastruc-ture so as to stimulate economic activity and the establishment of newcompanies with products and services that can be exported.n Work must continue on basic areas of development in the Latviantourism industry, doing so in co-operation with the Latvian Association ofHotels and Restaurants. A plan for 2009-2015 which is being developedat this time is to promote the development of this service sector and the

contributions which it makes to the Latvian economy. Support is alsoneeded for small and medium-sized companies in Latvia’s various regions.n There must be support for home insulation and energy efficiency projects.n Local governments must be supported in terms of their right to receivelong term loans and to undertake long term obligations.

Social dialogue in Latvia’s regions

In order to promote social dialogue in Latvia’s regions, the LDDK will, in2009, launch an ESF-financed project aimed at increasing the confederation’sadministrative capacity in Latvia’s regions. The aim is to promote the greaterdevelopment of regional social dialogue, increasing the level of participationamong social partners when it comes to the development and implementa-tion of policies. The target group for this project consists of institutions whichensure that the interests of employee and employer organisations are rep-resented when policy-related decisions are taken at the local government,national and EU level, as well as employers, employees and their organisa-tions. The LDDK will set up five regional institutions to implement the proj-ect. This will be open to all local employers, helping them to come togeth-er into organisations and offering practical assistance to those employers whowish to become involved in regional social dialogue.

During the 2009 ESF-funded project, theLDDK will ensure the following:

n Consultations for employers in Rīga, Cēsis, Liepāja, Jēkabpils and Rēzekneon social dialogue and opportunities for partnership with local governments;n The preparation of three training programmes for leaders and special-ists from organisations of employers, teaching them about bilateral and tri-lateral social dialogue issues, as well as matters related to the develop-ment of local governments and business;n Expert analysis of international, EU and Latvian norms related to issuesthat are of importance to employers;n Preparation of materials on how to plan and evaluate humanresources.

Energy supplies and climate change

In 2008, the LDDK was an active participant in the development ofpolicies related to renewable energy resources at the EU and nationallevel. The LDDK brought companies into the discussion about reducingemission quotas for Latvian companies. The confederation also wasactive in the area of environmental protection so as to ensure the com-petitiveness of Latvian companies in this context. There were discussionsabout how to reduce the levels of pollution and of the production ofproducts which harm the environment.

Source: Environmental Ministry, December 2008

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Source: Ministry for Regional Development and LocalGovernance, December 2008

The suggestion of the LDDK was to re-evaluate the way in which theenergy market is regulated in Latvia, ensuring that independent expertsare brought in to assess tariffs, as is done in other countries of theEuropean Economic Zone. The rapid increase in energy prices has hada deleterious effect on the competitiveness of industries. Together withthe British Embassy in Latvia and the British Industrial Confederation, theLDDK organised an international conference to discuss why climatechanges are important to business. The aim was to learn about best prac-tice in terms of increasing energy efficiency while also encouraging com-panies to manufacture environmentally friendly products in Latvia.

Late in 2008, the European Parliament gave first reading approval to apacket of rules on climate and energy resources, providing for a 20%reduction in emissions in all member states by 2020. An importantachievement for Latvia was ensuring that the point of reference is a com-parison to 1990, not 2005. In Latvia’s case, that means a 14% reductionin emissions.

Also in 2008, there was a discussion about the EU’s Green Book onthe subject of territorial cohesion. The aim here is to ensure balanceddevelopment at all territorial levels, to strengthen territorial potential, andto improve overall territorial development. It is particularly important forLatvia to ensure that financial support from the EU’s cohesion policy willremain available after 2014. Latvia is one of the more poorly developedcountries in the EU, and substantial finance have been received from theEU’s Structural Funds and Cohesion Fund. In accordance with the financ-ing framework for 2007-2013, Latvia is receiving EUR 4.53 billion (LVL3.2 billion) in pursuit of cohesion-related goals, but the country has notdone too well in absorbing these funds, and the effect on the competitive-ness of companies and the standard of living of the people of Latvia hasnot been assessed.

As the aforementioned national development plan was being puttogether, experts declared that energy is not used efficiently in Latvia, andthere is substantial potential in the country for energy savings. That wouldlead to lower manufacturing costs and help to ensure the competitivenessof manufactured products. LDDK experts have been actively involved inworking groups set up by the Economics Ministry, the EnvironmentalMinistry and the Rīga City Council, always calling for more spending onthe area of energy efficiency.

Goals in 2009

n To work with the Environmental Ministry and the Economics Ministryon improving laws even further, ensuring that the application of tax reliefand the refusal to tax resources that have been reinvested provides sup-port for companies which are pursuing greater energy efficiency;n To improve policies related to energy resources so as to enhance thecompetitiveness of companies in Latvia;n To prevent the implementation of any regulations which are not effec-tive in terms of packaging management while also promoting dialoguewith businesspeople on the establishment of a deposit system;n To promote social dialogue in the spatial planning of Latvia’s regionsand the development of their infrastructure so as to strike a balancebetween the interests of society and business, as well as to keep environ-mental protection requirements in mind.

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Valmiera City Council chairman Inesis Boķis receives an annual award as the head of the mosteffective local government in Latvia.

Representing Interests: A Prerequisite for Latvia’s Competitiveness

The role of Latvian employers and companies in the international envi-ronment will be dictated by their own ability to define operational priorities,find partners, and make operations more effective. Equal rules of the gamefor Latvian companies at the regional, European and global level will be thedetermining factor in the competitiveness of Latvia and its economy, partic-ularly if support is received from the government. In 2008, the LDDK calledfor a conceptual review of Latvia’s national position vis-ą-vis various aspectsof European Union operations – the way in which agenda items are pre-pared and handled, the way in which information is circulated, and the wayin which social partners are brought into the process.

In future, there must be closer and more effective co-operation amongthe Foreign Ministry, the Economics Ministry and the LDDK so as to ensurethat norms which are adopted are favourable to Latvian companies and thattheir economic interests are represented successfully. There is a lack of co-ordination in terms of lobbying at the EU, and there is also a shortage of pro-fessionally trained people at those institutions where decisions that are ofimportance to employers are taken. Hoping to make it easier for employ-ers to achieve their goals, the LDDK called for a more co-ordinatedapproach among Latvian government institutions, as well as the establish-ment of a broad framework of analysis and research in pursuit of the defenceof Latvian manufacturers and their interests.

Co-operation in the EU

Throughout the course of 2008, the LDDK engaged in intensive consulta-tions with European partners, bringing together representatives of employerorganisations to talk about items on the European business agenda. For thefirst time, representatives of the European Economic and Social AffairsCommittee came to Latvia. The LDDK supported the first civil society forum

in the Baltic States, where people talked about how members of the civil soci-ety can take part in the taking of decisions. The focus was on theoretical andpractical aspects of this issue in the three Baltic States and in other EU memberstates. The LDDK will continue to represent the interests of Latvian employ-ers in relations with the EU’s various consulting institutions.

In May 2008, the LDDK worked with the European Commission office inLatvia and the Foreign Ministry to bring together directors from employerorganisations in the various countries of the Baltic Sea region. They and rep-resentatives of other employer and business organisations in the region draft-ed recommendations on how to promote economic growth and entrepre-neurship in the region. The recommendations served as a basis for the Latviangovernment’s position and that of Business Europe vis-ą-vis the EU’s strategyin relation to the Baltic Sea region. The European Commission has promisedto release that strategy by June 2009.

The LDDK offered well-argued views and estab-lished a unified operating strategy with BusinessEurope with respect to the following issues:

n Proposals concerning the European Parliament and Council directiveon industrial emissions (integrated prevention and control over pollution,COM/2007/0844);n Amendments to the directive on working hours (2003/88/EC);n A proposal on the Council directive about the entry and residence ofpeople from third countries who have the skills necessary for highly qual-ified jobs (COM/2007/637);

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LDDK General Director Elīna Egle, Latvian Prime Minister Ivars Godmanis, Business Europe Presi-dent Ernest-Antoine SeilliŹre, LDDK President Vitālijs Gavrilovs, and Business Europe General

Director Phillipe de Buck.

A meeting of directors from Baltic Sea region employer organisations

Representatives of the LDDK meet with Foreign Minister Māris Riekstiņš, and the chairman of theCouncil of Baltic Sea States, Valdis Krastiņš

The speaker of the Latvian Parliament, Gundars Daudze (3rd from R), meeting with representa-tives of the European Economic and Social Affairs Committee

n A proposal from the Commission related to the Council directive onensuring equal treatment irrespective of religion, faith, disability, age orsexual orientation (COM/2008/426).

International co-operation and co-operationwith CIS countries

Over the course of 2008, the LDDK substantially expanded its rangeof international partners, forming closer co-operation at the level ofnational governments in neighbouring countries such as Russia, Belarusand Ukraine. Such opportunities were not pursued very extensivelybefore in terms of markets for Latvian goods and services, as well aspotential for business opportunities. The priorities in this area for theLDDK include protection of intellectual property rights, liberalisation ofinvestments, promotion of trade, and repeal of double tariffs.

The LDDK has concluded an economic partnership agreement withthe Ukrainian Federation of Employers. The agreement provides for theestablishment of an oversight council which, on the basis of parity, willinclude representatives of employer organisations in both countries.

Another economic partnership council has been established with theBelarusian Confederation of Employers. Agreement has been reachedon its programme for 2009. The Latvian chairman of the council is KirovsLipmans. The LDDK also signed an agreement with the BelarusianAssociation of Scientists and Manufacturers to develop co-operationamong manufacturers, businesspeople and scientists, thus promoting thefurther development of economic relations between Latvia and Belarus.

In order to strengthen economic co-operation between the EU andRussia, the LDDK attended a meeting in Brussels in 2008 which broughttogether Business Europe, the Russian Union of Industrialists andEntrepreneurs, and an organisation of small and medium businesses inRussia, “Opora Rossiyi.” The meeting was devoted to the need for govern-ments to create a new strategic and economic dialogue between Russia andthe EU, complete Russia’s accession to the WTO, and begin bilateral tradeand investment negotiations on the establishment of new economic partner-ships. The Latvian-Russian Economic Co-operation Council, which wasestablished by the LDDK and the Latvian Chamber of Commerce andIndustry, continued its work in 2008. The council met in Moscow onNovember 10. Latvia’s delegation was chaired by the businessman VasilijsMeļņiks.

The LDDK also dealt with the Foreign Ministry’s partnership policies vis-ą-vis priority countries such as Ukraine, Belarus, Moldova, Georgia andAfghanistan. The confederation called on the ministry to make use of theexperience of Latvian companies and organisations of employers in promot-ing such concepts as good governance, stronger social dialogue, corporatesocial responsibility, regulation of specific types of business, improved qualityin the field of education insofar as the market requires, etc.

Goals in 2009

The EUn In order to define the interests of businesspeople in relation to posi-tions taken by the EU as soon as possible, social partners should beinvolved in the drafting of national positions vis-ą-vis such issues from thevery beginning with the involvement of the secretariat of the NationalTripartite Co-operation Council;n If issues that are critical for businesses and for economic growth are tobe presented adequately in the EU’s strategy for the Baltic Sea region andare to be acceptable to all EU member states, the LDDK will have to con-tinue to monitor the way in which this strategy is debated in the EuropeanParliament and the European Council;n The LDDK will represent the interests of Latvian employers atBusiness Europe as an associate member, as well as at the EuropeanParliament, working with members of the institution from Latvia and bytaking part in the work of the European Economic and Social AffairsCommittee.

Internationallyn In order to develop co-operation between the LDDK and theUkrainian Federation of Employers, a Latvian-Ukrainian Economic Co-operation Council is to be set up;n In order to facilitate better economic relations between Russia andLatvia, the Latvian-Russian Economic Co-operation Council will draft pro-posals and recommendations as to how this can be achieved;n In order to promote a better business and investment environment inthose markets that are of priority interest to Latvia, the LDDK will contin-ue to work on issues related to foreign economic policy and developmen-tal co-operation, seeking to establish co-ordinated activities on the part ofLatvian government institutions, to ensure a broad framework of analysisand research aimed at defending the interests of Latvian companies, aswell as to promote good governance, social dialogue, social responsibili-ty, and new regulations related to specific aspects of the business environ-ment insofar as relations with third countries are concerned.

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The LDDK meets with representatives of Business Europe, the Ukrainian Federation of Employers,and the Belarusian Confederation of Employers.

Corporate Social Responsibilityfor Sustainability

Corporate social responsibility (CSR) seeks to introduce accountablechange and is one of the most powerful instruments in serving the inter-ests of a company. Over the last decade, in areas such as human rights,labour rights, environmental concerns and the struggle against corruption,the ten principles that have been integrated into company strategies haveindicated a long term and strategic approach to business. From seeming-ly generalised guidelines which indicate good will, CSR has turned into apersonnel management instrument when changes are implemented at anorganisation. When CSR is taken into account during company reorgan-isation, that makes it possible to avoid risks to the firm’s reputation.

In international markets, of equal importance is the position which thecompany takes in regard to quality management. That policy must beorderly and recognisable, and one way to ensure this is to become partof the UN Global Charter. Involvement in this movement allows a com-pany to position itself as a responsible player which is familiar with globaloperating principles.

The LDDK pursues CSR initiatives so as to help companies to under-stand what CSR is and to achieve public support for it. This helps us topopularise best practice among companies.

The Effective Governanceand Partnership Forumand its annual awards

For the second year in a row, theLDDK and the State Chancellery organisedan Effective Governance and PartnershipForum, with some 300 participants fromlocal governments, government institutionsand businesses. The primary aim of theforum was to reach agreement on steps tobe taken in order to reduce administrativeobstacles and to implement the principlesof good governance. Because of long-timetraditions in the area of governance, the firstday of the forum was devoted to the experience of Latvia and other countries.A key event for participants from Latvia was an appearance by the Presidentand General Director of Business Europe, Ernest-Antoine SeilliŹre and Phillipede Buck. In his opening address, SeilliŹre said that “public-private partnershipimproves the quality of services, ensures that adaptation to economic process-es is quicker, and ensures greater control over public expenditures.” TheBusiness Europe President called for the breaking down of barriers which hin-der the application of public-private partnership principles in attempts toimprove public governance.

The second day of the forum was devoted to public-private partnershipas a stimulus for the economy, outsourced services and procurementprocesses as elements of effectiveness and accessibility, transformation ofpublic services, the issue of whether E-governance is more of a promise orreality, the use of co-operation and partnership in local governments, aswell as the way in which local governments can attract new businesses.Participants included 40 experts from the public governance and privatesectors. In interactive discussions, forum participants analysed opportunitiesfor co-operation between the public and the private sector. Participantsagreed that public sector functions must be audited so as to reduce admin-istrative obstacles and to encourage bureaucrats to think harder about waysin which work can be done in collaboration with the private sector.

Also during the forum, the Effective Governance Awards were distrib-uted. In the corporate category, Latvian Railways received an award forrestructuring of the rail sector and the development of a new manage-ment model for the company. Among government institutions, the prizewent to the State Employment Agency for the provision of career-relatedservices to unemployed people and to those who are facing the risk ofunemployment. In the local government sector, the award was given tothe Valmiera City Council and its visitor centre.

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Inese Šmitiņa, Director of the State Social Insurance Agency, Latvijas Mobilais Telefons PresidentJuris Binde, and a representative of the Jēkabpils City Council discuss the effectiveness of gover-

nance.

Gunta Veismane, Director of the StateChancellery, at the opening of the

Effective Governance and PartnershipForum

For the first time, Business Europe representatives visited Latvia to attend the Effective Gover-nance and Partnership Forum.

Nominees and award recipients in the Effective Governance Awards

LDDK – 15 Years of Work

In 2008, the LDDK celebrated its 15th anniversary. In honour of thisevent, the confederation published a new book, “Social Partnership andthe Market Economy in Latvia: Conversations With LatvianBusinesspeople.” The LDDK also awarded prizes to the authors of thefive best master’s degree theses in the area of business and personneladministration (38 theses were submitted to a competent jury). On thewww.latvijaspatrioti.lv Internet page, the LDDK called on people to votefor Latvia’s most patriotic businesspeople. At a ceremony, the winners ofthat title were congratulated – Jānis Vilnītis from a paper company inLiepāja, the baker Normunds Skauģis, and Gunārs Ķirsons from the LIDOchain of restaurants.

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The LDDK published “Social Partnership and the Market Economy in Latvia: Conversations WithLatvian Businesspeople”.

Latvijas Mobilais Telefons President Juris Binde congratulates the authors of the best appliedresearch.

The board chairman of the newspaper Dienas Bizness congratulates businessman Gunārs Ķirsonson being named one of Latvia’s most patriotic businesspeople.

Jānis Vilnītis from AS Liepājas Papīrs – one of Latvia’s most patriotic businesspeople

Normunds Skauģis from SIA Lāči – one of Latvia’s most patriotic businesspeople

The LDDK turned on the lights for Latvia by holding a competition to find the most patrioticemployers in Latvia via a vote on the Internet – Aigars Rostovskis, BAT Turība, Elīna Egle, LDDK,

Dace Andersone and Gastons Neimanis, Dienas Bizness

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The Republic of Latvia’s 90th anniversary

The LDDK was actively involved in celebrations related to the 90thanniversary of the declaration of Latvia’s independence. Together withthe Defence Ministry, the confederation set up a support committee tocall on people to support the celebration and to light up in support ofLatvia. Financial support was received from more than 30 businesses.

The Finance Ministry, State Revenue Service, LDDK and representa-tives of a number of local governments got together in honour of thecountry’s 90th anniversary to organise financial forums and conferences infive of Latvia’s regions, as well as to present awards to the best employ-ers in each region. The aim of this award was to emphasise the impor-tance of employers in terms of investments in regional development. In2008, the awards were distributed as follows: AS AirBaltic Corporation(Rīga), AS Brīvais Vilnis (Vidzeme), SIA Vika Wood (Kurzeme), AS DobelesDzirnavnieks (Zemgale), AS Daugavpils Locomotive Repair Factory(Latgale).

CorporateSocial Responsibilityinitiatives for 2009Establishing an energy platform for business leaders

Working with relevant sectoral associations, the LDDK has called onmanagers from leading companies and experts from the sectors to help indeveloping a sustainable energy policy so as to ensure the competitive-ness of Latvian companies and to improve energy efficiency. This willinvolve discussions and forums on energy issues, consolidation of views,and preparation of recommendations for policymakers in relation to thegoals which the EU has set out.

A platform for Corporate Social Responsibility

Corporate Social Responsibility (CSR) is an instrument for implement-ing changes in a responsible way. The LDDK wishes to promote under-standing among businesspeople and support in the public at large for CSRand its fundamentally important role in business development and in theenhancement of public welfare (through integration into company strate-gy). The business world and non-governmental organisations are calledupon to agree on a common vision about CSR in Latvia. Proposals willbe drafted as to how CSR can be implemented and supported, and a CSRIndex will be established so as to encourage companies to improve theirreputation.

Awards for the best employers in Latvia’s regions

In order to honour the most ambitious and socially responsibleemployers in Latvia, the LDDK will once again present awards to one ineach of Latvia’s five planning regions. The aim is to emphasise the roleand investment of the employer in dynamic and balanced regional devel-opment.

The Effective Governance and Partnership Forum

The forum will be held to discuss the way in which recommendationsthat have been made in the past have been implemented. Delegates willlook at examples of companies and organisations which have proven theirability to work successfully even under conditions of a global financial cri-sis. There will be discussions among experts, businesspeople and seniorgovernment officials.

The annual Effective Governance Award

For the third year, the LDDK and the State Chancellery will evaluatethe best examples of effective governance at the national and local gov-ernment level, as well as among companies. Juries have considered thefollowing aspects in this regard: The effectiveness of the governancestructure, effective innovations and creativity, and the sustainability andresults of effective governance efforts. This year we will evaluate theeffectiveness of state and local government institutions, as well as compa-nies, from the perspective of change and risk management.

President Valdis Zatlers and First Lady Lilita Zatlere meet with businesspeople who, together withthe LDDK and the Latvian Defence Ministry, helped to organise the celebration of the 90th

anniversary of Latvia’s independence.

LDDK Vice President Aiva Vīksna presents an award to the best employer in the Latgale region –the Daugavpils Locomotive Repair Factory.

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Services for LDDK MembersOne of the services that is provided by the LDDK is a database for

monitoring normative acts and a portal for consultations,www.lobijs.lv. Data show that 47% of registered users made use ofthis service in 2008. The goal in 2009 is to get 65% of registered usersto become involved in this attempt to consolidate views.

Source: Statistics from www.lobijs.lv

Another service involves training and seminars for LDDK members,and 120 experts took part in five training sessions on such issues as labournorms, Corporate Social Responsibility, the role of job safety in social pol-icy, etc.

q In 2009, the LDDK will take part in the “Transfer of Innovation” proj-ect, which will allow members to receive training. This will involve theUniversity of Latvia and the Institute of Professional Financial Managers(UK), and subjects will include international financial reporting standards,managerial accounting, strategic planning, strategic management, applyinginternal control and internal audit in enterprises, methods for evaluatingthe financial condition of enterprises, as well as financial management..

q Given that the LDDK will have two major ESF projects in 2009, thetotal number of training sessions will be 39, and the total number of par-ticipants therein is anticipated to be around 600. The LDDK will also offertraining programmes to members on subjects such as Corporate SocialResponsibility, lobbying, and the EU.

q In 2008, the LDDK organised conferences on aspects of social dialogueat the European and national level, as well as on social dialogue in theBaltic States. The conferences were supported by the GermanConfederation of Employers and the German government.

Another service provided by the LDDK in 2008 was opportunities formembers to exchange experiences with others. This was part of theBOSMIPII project and its lead partner, Business Europe. The LDDK alsohad a partnership project with the Romanian Confederation ofEmployers. The goal was to promote partnership and experienceexchange initiatives, focusing on job safety and health protection in partic-ular. The LDDK informed people about its experience with managementof businesspeople and organisations of employers, also sharing knowledgeand methods for representing interests in pursuit of greater job safety andsecurity. In 2009, there will be projects related to exchanges of experi-ence with specialists in Turkey.

Also in 2008, the LDDK continued to publish a monthly information-al report on business in Europe. The number of recipients of this reportwill be increased in 2009.

Another service, support for market research, allowed the LDDK andthe State Employment Agency to research short-term labour demand in

various sectors. LDDK members were surveyed to determine howimportant EU and international issues are to organisations and associationsof employers. Toward the end of the year, the LDDK organised a sur-vey of member companies on the subject of foreign trade priorities andexports. Also in 2008, the LDDK continued work with Fontes Latvija ona study of wages and other compensation.

A service related to support for project preparation and managementwas also offered in 2008, and the LDDK became involved as a partner inseveral international projects, and that has offered valuable information forLDDK experts and members.

q The LDDK was a partner in a project focused on co-operation withemployees during times of change at companies, also looking at how thewelfare of employees can be ensured during such times. This project alsoinvolved the British Confederacy of Employers and the UKWON organ-isation.

q The LDDK participated in a project that was organised by the CzechConfederation of Industries, “Promotion of Flexible Forms of WorkThrough Social Dialogue from the Perspective of Employers.” Thisinvolved organisations of employers from Slovakia, Slovenia, Belarus,Poland, Austria, Bulgaria and Estonia, as well. Project participants studiedflexible forms of work in all of the participating countries. The reportsfocused on conclusions and recommendations vis-ą-vis such forms ofwork.

q The “Social Dialogue” project was implemented in partnership with theGerman Confederation of Employers, with financial support from theGerman government. Here the aim was to develop social dialogue at theregional, sectoral and company level, to offer exchanges of experience,and to popularise best practice.

q The LDDK took part in a programme called “Actions Concerning theModernisation of Public Employment Services,” which was co-financed bythe European Commission.

q The LDDK and the www.brivpratigais.lv organisation pursued a proj-ect called “Every Job is Honourable.”

q The LDDK took part in a project that was organised by the LatvianAssociation of Local Government Employers, “Educating Local Residentsand Institutions on Legal Aspects of Work in the Strengthening of the CivilSociety and the Development of Balanced Economic Development inLatvia’s Regions.”

In 2009, the LDDK will continue partnership in the followingprojects:

q The INTERREG IVB, Baltic Sea Region, 2008-2011 project “Baltic SeaLabour Network,” which has led to the establishment of partnershipsamong 27 organisations in 10 Baltic Sea countries. The aim of the proj-ect is to promote the establishment of a sustainable labour market. TheLDDK is a project partner.

q The “Transformation of Innovation” project in terms of training part-nerships with the University of Latvia and the Institute of ProfessionalFinancial Managers (UK).

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The LDDK CouncilThe LDDK President

Vitālijs Gavrilovs, SIA Ladeko

The LDDK Vice Presidents

Juris Biķis, AS Latvijas Finieris

Ivars Strautiņš, Turība School of Business

Kirovs Lipmans, AS Grindex

Vasilijs Meļņiks, SIA Eiroholdings

LDDK Council members

Juris Binde, SIA Latvijas Mobilais Telefons

Vilnis Krēsliņš, Latvian Association of ElectricalEngineers and Builders

Vilmārs Lucāns, Latvian Association of LocalGovernment Employers

Jevgēņijs Kalējs, Latvian Hospital Association

Arkādijs Suškins, Cēsis District Business Club

Gundars Strautmanis, SIA Lattelecom

Vilnis Rantiņš, Association of Machinery and MetalProcessing Companies

Teodors Tverijons, Latvian Association of CommercialBanks

Uģis Magonis, AS Latvian Railways

Aiva Vīksna, SIA Business Information Service

Valērijs Terentjevs, AS Liepājas Metalurgs

Andris Zorgevis, Latvian Association of Railroad SectorEmployers

Jānis Naglis, Latvian association of Hotels andRestaurants

Jānis Bertrands, SIA Baltijas Logi

Laris Polosuhina, SIA Rīga Lacquer and Paint Factory

Kārlis Andersons, AS Latvijas Balzāms

Viktors Puriņš, Latvian Association of Builders

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AcknowledgementsWe thank our member, AS Seversteļlat, for organising a meeting of

directors of employer organisations from the Baltic Sea region;

The Effective Governance and Partnership Forum could not haveoccurred without our partners – the State Chancellery, Swedbank, SIALattelecom, Nokia Latvija, Komerccentrs DATI Grupa, and our informa-tional supporters – the Latvian Association of Local Governments, thenewspaper Dienas Bizness, the portal Db.lv, and the LETA news agency;

We thank the “Business Diena” publication for its support for the annu-al effective governance awards;

The LDDK could not have published its book, “Social Partnership andthe Market Economy in Latvia: Conversations With LatvianBusinesspeople,” without the active support of SIA Business InformationService, with personal thanks to Aiva Vīksna, Rita Baroniņa, and editorAndris Vanadziņš. We thank AS Latvijas Finieris for support, and the BergsHotel for hospitality;

Our thanks to Latvian State Forests for participation in the implemen-tation of our Corporate Social Responsibility Programmes and to LatvijasMobilais Telefons for the stipends which it provided for the authors of thebest master’s theses;

Success in the vote for Latvia’s most patriotic businesspeople can beattributed to the Turība School of Business, Dienas Bizness board chair-man Gastons Neimanis and editor Dace Andersone, AS AirBalticCorporation, the Draugiem.lv portal, and the LETA news agency.

The LDDK also would like to thank everyone whotook part in the work of National Tripartite Co-operation Council panels for their investment oftime and the way in which they represented theinterests of employers!

The Professional Education and Employment Sub-Council v JS Grindex – Dace Šaiterev Latvian Association of Local Government Employers – Gaida Lācev Association of Machinery and Metal Processing Companies – Andis Lejiņšv JS Latvijas Finieris – Anda Būmanev Ltd. BUTS – Pēteris Zaļmežs

The Labour Affairs Sub-Councilv Ltd. GRIF – Aleksandrs Grigorjevsv JS Latvenergo – Inga Kolav Association of Machinery and Metal Processing Companies – Jānis Sproģisv JS Inspecta Latvija – Pēteris Druķis

The Social Security Sub-Councilv LDDK General Director – Elīna Eglev Cēsis District Business Club – Arkādijs Suškinsv Ltd. REATON Ltd – Laura Kalniņav Latvian Postal Service – Aivars Kalniņšv Ltd. Patnis – Zane Ozolav Latvian Hospital Association – Jevgēņijs Kalējs

The Health Care Sub-Councilv Latvian Hospital Association – Jevgēņijs Kalējsv Ltd. Mēness Aptieka – Marģers Zeitmanisv Association of Health Care Employers – Māris Rēvalds

The Transport, Communications and Informatics Sub-Councilv SIA Baltijas Logi – Jānis Bertrandsv JS Ventspils Nafta – Andris Uzuleņsv Latvijas Mobilais Telefons, Ltd. – Mārtiņš Pujātsv Ltd. airBaltic Corporation – Laila Odiņav Latvian Railways – Uldis Pētersonsv Latvian Passenger Transportation Association – Pēteris Salkazanovsv Latvian Association of Cargo Forwarders and Logistics – Vladimirs Žerebcovs

The Environmental Protection Sub-Councilv Latvian Association of Waste Management Companies – Vladimirs Cudeckisv Latvian Association of Road Builders – Kārlis Kadiķisv Latvian Association of Wood Processing Companies and Exporters –

Jānis Mārciņšv LDDK regional development expert – Andrejs Šnepsts

The Regional Development Sub-Councilv Latvian State Forests – Artūrs Jansonsv Latvian Association of Local Government Employers – Vilmārs Lucānsv Adult and Professional Education Association – Guntis Tomsonsv Latvian Farm Federation – Ārija Jerumanev LDDK regional development expert – Andrejs Šnepsts

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LDDK Members – Sectoral Associations

LDDK Members – Companies

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