Social REPORT

MINISTRY OF SOCIAL SECURITY AND LABOUR social REPORT

2006–2007

Vilnius 2007

Dear Readers of the Social Report,

This year, as in previous years, we present an overview of our activities in the last year, and the first part of this year, for your evaluation. For a number of years we have been trying to work so that you – the people of our country – feel more socially secure, and are able to make a fruitful contribution to the job that suits you, while feeling sure about your future. Last year was a year of thorough and consistent work. It led to the strengthening of the social security system, and continuing economic growth enabled it to be more beneficial for you – better and more generously responding to your needs, eliminating poverty and strengthening social cohesion. The situation in the labour market improved – the employment level increased, unemployment was reduced, workplaces became safer, and the relationship between employers and employees became more transparent. All this is analysed in detail in the report, and here I would like to draw your attention to some activity priorities of growing importance. The rapidly changing life of the country makes us constantly revise our activity priorities, and better adapt social and labour policies to the newly arising needs of the population. A decreased birth rate, a more and more noticeable lack of labour force, and the emerging population ageing draw our attention to the family, and urge us to modify the family policy so that parents raising children are provided with more favourable opportunities for reconciling family and professional life. Only in this way will we be able to achieve a position where our country does not feel the shortage of labour

Social Report 2006–2007 force and young people who will replace the older generation. We plan to intensively pursue our work of creating a family-friendly environment. Another fairly new priority activity is the control of economic migration. The drafted Strategy on Regulation of Economic Migration should help the country keep the necessary labour force, and make our citizens return home and apply their gained working experience. We have made considerable input in this field, enabling us to expect success in the future. The shortage of labour force is not only a current problem – it will also arise in the future due to unfavourable demographic changes and migration. It is therefore important to return as many people as possible who have withdrawn from the labour market, but who are still able to work, by promoting the creation of qualitative workplaces and the occurrence of favourable employment conditions and relations. We have been doing a lot in this direction; still, we will have to do more. Here, I have mentioned only some of the most important aspects and priorities of our activities. More detailed and specific information on our activities is provided in the report, and I invite you to read it, give your opinion, and evaluate our activities. I would like to express my appreciation to the working group of report drafters, and everybody who assisted in its drafting.

Minister of Social Security and Labour Vilija Blinkevičiūtė

Social Report 2006–2007 CO–AUTHORS OF THE SOCIAL REPORT 2006–2007

INTRODUCTION Dalia Milkevičienė Ramunė Tarasevičiūtė Stanislovas Valickas

LABOUR MARKET Gintarė Bužinskaitė Rimantas Garbštas Asta Kraujalytė Rasa Malaiškienė Auksė Rėklaitytė Jurga Šimkutė Raimonda Sneigienė Jurgita Vitkauskienė

SOCIAL INSURANCE AND PENSIONS Vaidotas Kalinauskas Aušra Kanclerienė Vidija Paštukienė

SOCIAL SUPPORT Danutė Akulavičienė Almira Gecevičiūtė Gražina Jalinskienė Tatjana Knyzienė Andrius Tekorius Kristina Vaitkevičienė

EQUAL OPPORTUNITIES AND SOCIAL INTEGRATION Daiva Junevičienė Vanda Juršėnienė Daiva Zabarauskienė

MEMBERSHIP INTO THE EU AND INTERNATIONAL COOPERATION Milda Petrokaitė Karolina Anda Juodpusytė

Head of Working Group – dr. Povilas Vytautas Žiūkas Scientific editor – dr. Romas Lazutka Coordinators – Vaida Budzevičienė, Kristina Vaitkevičienė

The Administration of the Ministry of Social Security and Labour pays heartfelt thanks to the team of editors and to the leaders of the departments of the Ministry for their work preparing this edition

Social Report 2006–2007 Content

1. INTRODUCTION ...... 7 1.1 Mission and strategic goals of the Ministry ...... 9 1.2 Public relations and counseling of individuals on social security matters ...... 15 2. LABOUR MARKET ...... 19 2.1 Promotion of employment and investments into human capital ...... 19 2.2 Regulation of labour relations ...... 54 3. Social insurance and pensions ...... 75 3.1 Finances of the state social insurance fund in 2006 ...... 75 3.2 Improvement of the state social insurance system ...... 76 3.3 Changes in the pension system ...... 84 3.4 Accumulation of pensions ...... 94 3.5 Conclusions and summary ...... 98 4. SOCIAL SUPPORT ...... 99 4.1 Social assistance for families and children ...... 99 4.2 Child care ...... 113 4.3 Youth policy ...... 124 4.4 Social services and social work ...... 125 4.5 Social protection of aggrieved persons and its implementation ...... 132 4.6 Implementation of measures of the Strategy for Reduction of Poverty and Social Exclusion and of the National Strategy of Overcoming the Consequences of Ageing ...... 137 5. EQUAL OPPORTUNITIES AND SOCIAL INTEGRATION ...... 151 5.1 Equal opportunities and non-discrimination ...... 151 5.2 Social integration of the disabled ...... 152 5.3 Gender mainstreaming ...... 159 5.4 Social integration of foreigners granted asylum ...... 165 5.5 2004–2007 programme for social adaptation of convicts and persons released from places of imprisonment ...... 166 5.6. Conclusions ...... 167 6. MEMBERSHIP INTO THE European Union ...... 169 6.1 Activity related to membership of Lithuania in the European Union ...... 169 6.2 Economic migration ...... 182 7. INTERNATIONAL COOPERATION ...... 191 7.1 Taking part in the activities of international organizations ...... 193 7.2 International agreements ...... 198 7.3 International agreements and projects ...... 200 8. ANNEXES ...... 202

Social Report 2006–2007 INTRO1DUCTION

The year 2006 and the first half of 2007 covered by this Social Report will go down in history of the Lithuanian social development as a period of a fairly smooth work. A stable political situation, regardless of the prime minister’s change, ongoing economic growth, improving public finances, and the positive impact of Euro integration preconditioned the continuity of social security programmes, and the improvement thereof taking into consideration the gaps that are emerging or have been noticed previously, the filling of which has been so far postponed due to insufficient funds. The imperfections which occurred in the country during the reviewed period were rather the problems caused by the growth. Unemployment was more often replaced by the lack of labour force, although emigration notably decreased. Increasing personal income and state fund revenue and expenditure drew attention to a possible inflation growth. Basically, the period 2006–2007 was very favourable to the Lithuanian social and economic development. This Social Report consists of seven main parts. The first, introductory, part presents the mission and the strategic goals of the Ministry of Social Security and Labour. The latter determine the structure of the activities presented in the report because the following goals are pursued: to ensure smooth operation of the labour market, insurance of the employed against losing of income due to social risk, social assistance of the unemployed, equal opportunities for groups of socially vulnerable persons and their social integration. These fields are analysed in individual parts of the Social Report. Such a structure was chosen according to the principle that the straightest way to the welfare of citizens is through the labour market. Persons who experience failure in the labour market due to illness, age or any other specified reasons are protected by the state social insurance system. The unemployed and families of the employed, who incur additional expenses concerning dependent family members, are supported by the social assistance system both by cash benefits and reimbursements. Weaker groups of persons who face more difficulties in adapting to the labour market and other activities (the disabled, refugees, ex-prisoners, etc.) are integrated by applying special programmes. The last two parts of the report focus on the issues of integration into the EU, and international cooperation. Each of the mentioned parts consists of several chapters. These are divided into sections depending on the respective social security administration structure. Some main aspects of each part of the Social Report are presented below.

Social Report 2006–2007 1 C h a p t e r

In 2006–2007, the Lithuanian labour market underwent great changes. The employment level kept growing, whereas unemployment was reduced. Surplus of labour force supply was replaced by the lack of labour force. However, there remained a problem of involving economically inactive, elderly persons, and persons of restricted working capacity in the labour market. In fulfilling the objectives of human resources development, the Ministry of Social Security and Labour implemented the national labour market vocational training policy, ensured the functioning and improvement of the labour market vocational training system, and coordinated the acknowledgement of the regulated professional qualifications. Some measures of the Lithuanian Single Programming Document 2004–2006 (hereinafter – SPD) are directly related to the labour market. The Ministry of Social Security and Labour is responsible for them as an intermediary authority. The report presents the data on the implementation of these measures and the use of the EU structural funds, as well as planning of the funds of co-financing, implementation of measures, and supervision. Furthermore, in recent years the Ministry actively participated in drafting of the Lithuanian Strategy for the Use of European Union Structural Assistance for 2007–2013, which is granted from the European Social Fund, the European Regional Development Fund, and the Cohesion Fund, and individual operational programmes for the implementation of the strategy. In 2006–2007, the Ministry and its supervised institutions consolidated the activities with the view of basically improving the situation in the labour market as regards the aspects of combating illegal employment, and occupational safety. The number of illegal employees significantly decreased in construction, agriculture, wholesale and retail trade. In 2006, labour inspectors detected over 50,000 violations of occupational safety and health legislation. The legal framework of occupational safety and health was further improved by transposing the provisions of the European Union directives into the national legislation. In 2007, the National Strategy of Occupational Safety and Health was drafted. As in previous years, this Social Report pays a lot of attention to the changes in social insurance. A favourable situation in the economy and the labour market, as well as decrease in the black employment relations positively affect the State Social Insurance Fund budget. With its revenues increasing, not only pensions and other benefits grow, but also the procedure of granting them and benefit calculation formulas are improved. All this strengthens social security of workers. The sector of social services in Lithuania also undergoes great changes. After the Law on So- cial Services became effective, the basics of organisation and management of social services changed. Drafted secondary legislation regulates the new basics of organisation and management of social services, and the principles of providing, granting, and receiving social services. This report gives an overview of the changes of social services in recent years. With the network of non-stationary social services expanding, more and more people have an opportunity to receive the necessary services in a community. Communities and non-governmental organisations are encouraged to take more active participation in the organisation and provision of social services with the view of expanding the network of the providers of social services and developing the attitude of community members to the significance of social services. Unfavourable demographic changes and difficulties of families raising children result in a permanent attention of the Government to the provision of assistance for families. In 2006, the

Social Report 2006–2007 I ntroduction conditions of rendering social support were further specified, and support amounts increased, with a view to ensuring financial state support and social security to all families raising children. The development of this system and changes which occurred in 2006–2007 are also reflected in the report. Statistical data on social benefits and reimbursements for needy families are presented and the factors which determined support changes are substantiated. The year 2007 has been designated the Year of Equal Opportunities for All by the European Commission. Elimination of discrimination forms is an essential prerequisite which ensures the rights and personal wellbeing of every individual. The Constitution and other legislation of the Re- public of Lithuania prohibit discrimination. The success of the legal framework in the sphere of non- discrimination depends on the extent of social support rendered to socially vulnerable persons. Last year, the Ministry pursued the activities of social integration of the disabled. This is also reflected in the report. The report presents quite a lot of material about the Programme for the Provision of Technical Assistance, and the Programme of Housing Adaptation for People with Disabilities for 2007–2013. This Social Report, unlike in previous years, focuses more on the issue of economic migration. In recent years, the problem of economic migration of population has become very relevant for Lithuania. Free movement of workers is one of the fundamental freedoms guaranteed to the EU citizens by European Union founding treaties and acquis. However, Lithuania loses the population of working age mostly due to emigration. Reducing number of population and the extent of emigration cause great concern. The working group headed by R. Kairelis, the State Secretary of the Ministry of Social Security and Labour, drafted the Strategy on Regulation of Economic Migration, approved together with the Plan of Implementing Measures for 2007–2008 by the Government of the Republic of Lithuania. It seeks that, under the circumstances of rapid economic growth, Lithuania does not fall short of labour force and that negative consequences of the migration process are avoided. The Ministry of Social Security and Labour will coordinate the implementation of the strategy. The abovementioned and other aspects, which are not mentioned in this brief introduction, concerning the development of the labour market, its supervision, social insurance, social support, and international relations in the sphere of social policy were the focus of the Ministry of Social Security and Labour in 2006–2007. The activities in the above spheres certainly do not stop with the publishing of the Social Report. Those who are interested in the changes in the sphere of social security may find relevant information on the website of the Ministry: http://www.socmin.lt.

1.1. MISSION AND STRATEGIC GOALS OF THE MINISTRY

The Ministry of Social Security and Labour acts in accordance with the Strategic Action Plan. The Strategic Action Plan is a document where the mission, goals and programmes of the institution

The Strategic Action Plan of the Ministry for 2007 was drafted in accordance with Resolution No. 193 of the Govern- ment of the Republic of Lithuania of 24 February 2006 On Approval of Project Drafting Plan for Financial Indicators of the State and Municipal Budgets of the Republic of Lithuania for 2007 (Official Gazette, 2006, No. 25-847).

Social Report 2006–2007 1 C h a p t e r are defined taking into consideration the analysis of the current situation. It describes how the institution pursues the strategic goals (priorities) of the Government by implementing the programmes with the available budget appropriations. The mission of the Ministry of Social Security and Labour is to implement effective social security and labour policies seeking to create the opportunities for qualitative employment and to ensure social safety and social cohesion within the general public. In accordance with the Strategic Action Plan, the Ministry fulfils its mission in 2007 seeking to attain the following strategic goals: 1. To attract more people into the labour market, to ensure fair labour relations and appropriate working conditions, as well as invest into human resources more efficiently. 2. To seek effective social security and to ensure social integration of socially vulnerable groups of the population.

Appropriations allocated for the Ministry for 2007 were approved by the law, whereas the appropriations for the programmes implemented by the Ministry were approved by the resolution of the Government of the Republic of Lithuania. In 2007, LTL 190,691,000 is planned to be allocated for the implementation of the first strategic goal, and LTL 1,413,867,000 – for the implementation of the second strategic goal (see Table P.2-1).

The expenditure of the Ministry of Social Security and Labour on programmes in 2007 (thousand LTL)

PROGRAMMES FUNDS The goal of the manager of the appropriations: To attract more people into the labour market, to ensure fair labour relations and appropriate working conditions, as well as invest into human resources more efficiently 1.2. Employment promotion programme 45305 1.3. Scientific research programme regarding the standard of living, the employment 488 of the population, the social insurance and social assistance in Lithuania 1.4. Programme for the prevention of occupational diseases and accidents and 575 improvement of safety at work 60.2. Special Programme of the European Regional Development Fund (for the 17525 implementation of the SPD) 60.3. Special Programme of the European Social Fund (for the implementation of the 70094 SPD) 60.7. Special Programme of the European Social Fund (for the implementation of the 10000 Community initiative EQUAL)

Law No. X-963 of the Republic of Lithuania of 7 December 2006 on Approval of the Financial Indicators of the State and Municipal Budgets for 2007 (Official Gazette, 2006, No. 138-5267). Resolution No. 91 of the Government of the Republic of Lithuania of 29 January 2007 On Allocation of Approved Appropriations from the State Budget of the Republic of Lithuania According to the Programmes for 2007 (Official Gazette, 2007, 15-535).

10 Social Report 2006–2007 I ntroduction

PROGRAMMES FUNDS

64.1. Special Programme of European Union structural support for 2007–2013 46704

The goal of the manager of the appropriations: To seek effective social security and to ensure social integration of socially vulnerable groups of the population 2.1. Programme for the social integration of the disabled 47340 2.2. Programme for the development of social services in the institutions subordinate 18668 to the Ministry of Social Security and Labour 2.3. Programme for the support to the socially vulnerable groups of the population 23263 and other activities of the Ministry 2.4. The Programme for the Development of Social Services Infrastructure 5000 2.6. Programme for the implementation of the child’s rights to protection, 10619 maintenance and participation in the public life 2.8. Programme of the state pensions, social assistance pensions and other social 836920 assistance benefits 2.9. Programme for the implementation of the youth policy 3470 2.10. Programme of children allowances 465536 60.9. Special European Refugee Fund programme 3051 Total allocated for programmes implemented by the Ministry of Social Security 1604558 and Labour

Data from the Ministry of Social Security and Labour Table 1.1-1

In 2007, the Ministry implements its strategic goals by carrying out 16 programmes. Seeking the strategic goal “To attract more people into the labour market, to ensure fair labour relations and appropriate working conditions, as well as invest into human resources more efficiently”, the following programmes have been implemented: 1.2. Employment promotion programme The funds allocated for the implementation of the programme: implementation of local employment initiative projects; support of social enterprises; vocational training of the unemployed using active labour market policy measures; participation of the Lithuanian Labour Exchange in the activities of the network of European Employment Services (EURES); maintenance of the European Social Fund Agency; provision of psychological consulting and vocational guidance, training, social rehabilitation and integration of the convicts and persons released from the imprisonment institutions; promotion of social responsibility of enterprises; support for the establishment of coordination centres of trade unions in regions. 1.3. Scientific research programme regarding the standard of living, the employment of the population, the social insurance and social assistance in Lithuania The programme funds are distributed for financing of competitive scientific researches in specific fields of social security and labour.

Social Report 2006–2007 11 1 C h a p t e r

1.4. Programme for the prevention of occupational diseases and accidents, and improvement of safety at work The programme funds are allocated for: strengthening of prevention of accidents at work; assessment of the conformity of work equipment to mandatory safety requirements in conformity assessment institutions by strengthening their material-technical base and expanding their accreditation scope, etc. 60.2. Special Programme of the European Regional Development Fund (for the implementation of the SPD) The funds allocated for this programme are used for the implementation of the part of the measure “Development of the Labour Market, Education, Vocational Training, Science and Study Institutions and Social Services Infrastructure” specified in the Lithuanian Single Programming Document for 2004–2006 and falling within the competence of the Ministry: the development of the labour market and social services infrastructure. 60.3. Special Programme of the European Social Fund (for the implementation of the SPD) The funds allocated for this programme are used for the implementation of measures specified in the Lithuanian Single Programming Document for 2004–2006: “Development of Employment Capacities”, “Development of Competencies of the Labour Force and Their Capacities to Adapt to Changes”, and “Prevention of Social Exclusion and Social Integration”. 60.7. Special Programme of the European Social Fund (for the implementation of the Community initiative EQUAL) The programme funds are allocated for the implementation of the European Community initiative EQUAL: to support such target groups which suffer specific discrimination on the labour market in order to promote their employment, to develop the opportunities of reconciling family and professional life responsibilities, to support employment opportunities of asylum seekers. 64.1. Special programme of European Union structural support for 2007–2013 The programme funds are allocated for the implementation of Priority I “Qualitative Em- ployment and Social Inclusion” of the Operational Programme for the Development of Human Resources for 2007–2013, and measure “Vocational Training Institutions Pursuing the State Em- ployment Promotion Policy and Providing Social Services and Services for the Disabled” of Priority III “Quality and Accessibility of Public Services” of the Operational Programme for the Promotion of Cohesion for 2007–2013. Seeking the strategic goal “To seek effective social security and to ensure social integration of socially vulnerable groups of the population”, the following programmes have been implemented: 2.1. Programme for the social integration of the disabled The programme funds are allocated for the provision of the disabled with technical assistance; provision of professional rehabilitation services; implementation of the measures under the National Programme for Social Integration of People with Disabilities for 2003–2012 and the Programme of Housing Adaptation for People with Disabilities for 2007–2013. 2.2. Programme for the development of social services in the institutions subordinate to the Ministry of Social Security and Labour The programme funds are distributed among the following institutions acting under the Min- istry: the Refugees Reception Centre, the Disability and Working Capacity Assessment Authority, the

12 Social Report 2006–2007 I ntroduction

State Centre of Compensatory Technique for the Disabled, the Department of Supervision of Social Institutions, the Lithuanian Secretariat of the Tripartite Board, the State Child Rights Protection and Adoption Service, the Dispute Commission, the Department for the Affairs of the Disabled, and the Department of Youth Affairs. 2.3. The funds for the programme for the support to the socially vulnerable groups of the population and other activities of the Ministry are intended for the following purposes: • for housing allowance for exiles, covering of expenses related to moving to another place, Lithuanian language courses, re-training and re-qualification courses, recruitment programmes; • for integrating foreigners who have received asylum into society: providing with temporary accommodation, organising employment, education, ensuring social and health protection, informing the public about foreigners who have been granted asylum; training of the employees who work with foreigners who have been granted asylum; • for payment of bills for calls received from residents calling the psychological help services, and for partial reimbursement of administration costs incurred by the psychological help services; • for implementing projects prepared by various organisations to address social assistance to the victims of forced prostitution and their re-integration into society; for upgrading the qualifications of the employees working with victims of trafficking in people and prostitution; • for creating equal opportunities for men and women to participate in all spheres of public life by implementing the measures specified in the National Gender Equality Pro- gramme; • for assessing social workers; • for shaping and implementing social security and labour policy; • for informing the general public about the social security and labour policy; • for maintaining and updating of hardware and software in the Ministry; for maintaining of the information system for the strategic partnership; • for harmonising national legislation with the EU law, and developing administrative capacities; • for organising seminars, conferences, and pursuing other activities; • for promoting the activities of non-governmental organisations representing elderly persons; • for providing current participants in the pension accumulation schemes with information about an opportunity to switch a pension accumulation institution; • for allocating funds for the rental of premises for the Institute for Gender Equality; • for promoting the establishment of and support to at least one body or organisation in the territory of each county, which provides social services for victims of violence in the family and ensures cooperation of the concerned institutions; for promoting the establishment of men’s crisis centres in the territory of each county, for promoting self-aid groups of abusers; for organising seminars of legal education for women; for organising information campaigns against violence in the family, for raising public awareness about

Social Report 2006–2007 13 1 C h a p t e r

assistance for victims of violence in the family and possibilities to use it, about punish- ment for abusers; for partial financing of projects of non-governmental organisations acting in the sphere of violence against women in the family at the procedure prescribed by legislation; for implementing other measures for 2007 of the Action Plan for Measures Implementing the National Strategy to Reduce Violence against Women 2007–2009; • for organising training for the employees of the labour market institutions about forms of discrimination and equal opportunities to acquire profession and obtain employment; for organising training for members of trade unions and non-governmental organisations about equal rights and remedies; for implementing other measures of the National Antidiscrimination Programme for 2006–2008; • for supporting participation of governmental and non-governmental organisations in the Community Programme PROGRESS. 2.4. The Programme for the Development of Social Services Infrastructure The programme funds are used for partial financing of projects submitted by municipalities and non-governmental organisations. The projects are aimed at the development of network of institutions providing social services to various groups of the population. 2.6. Programme for the implementation of the child’s rights to protection, maintenance and participation in the public life The programme funds are allocated for: • supporting projects submitted by children’s day care centres and focusing on solving social problems of children living in social risk families; • supporting projects providing services to abused children; different preventive measures: building public awareness, organising campaigns against violence against children, etc.; • improvement of professional skills of the employees of child’s rights protection services; • development and application of child care organisation requirements; improvement of professional skills of the employees of child care institutions; organisation of education of persons deprived of parental care; provision of complex services to persons deprived of parental care, etc.; • organising public awareness raising campaigns, information events, specialized training, with a view to increasing parents’ responsibility for ensuring the implementation of a child’s rights; preparing a draft resolution of the Government concerning a target programme for the development of alternative forms of social services of child care home of county governors; conducting research aimed at defining a concept of economic exploitation of a child; organising training for specialists (social workers, public health specialists at schools, social pedagogues, police officers, judges, etc.) working in the sphere of child rights protection, etc. 2.8. Programme of the state pensions, social assistance pensions and other social assistance benefits The funds for the programme are used for paying state annuities of the President of the Republic; special pensions, first and second degree state pensions; state pensions for victims; researchers’ pensions. The funds allocated for this programme are also used for insuring the following for a basic pension: mothers (fathers) raising children until they reach the age of 3; the clergy;

14 Social Report 2006–2007 I ntroduction nurses taking care of persons with total disability; for paying lump sum benefits to the participants of armed resistance and to the families of those who died during the resistance against the occupation of 1940–1990; for paying social assistance benefits; for reimbursing transport costs for persons with mobility impairment (25 percent of the minimum standard of living) and reimbursement of expenses incurred when obtaining special motor vehicles and technically adjusting them to the needs of the disabled; paying compensations for damages for victims who have suffered from an accident at work or have contracted an occupational disease should this obligation pass to the State; professional rehabilitation benefits; compensations paid to persons injured while serving in the Soviet Army and for families of those who died while serving in this army; also, funds are allocated for the administration of social assistance benefits; and special payment is paid to meet permanent nursing or permanent assistance needs. 2.9. Programme for the implementation of the youth policy Programme funds are used for measures promoting the participation of the youth, building their awareness and entrepreneurship, the development of socialisation opportunities; for the support of programmes and projects of the youth and organisations working with the youth; for building the potential of youth organisations; for the representation of the youth policy in international working groups, institutions and organisations; for the administration of the programmes “Youth in Action”, “Eurodesk”, etc. 2.10. Programme of children allowances Programme funds are allocated for the transfer of money for a lump sum child allowance, a child allowance, an allowance to a child of a serviceman of the mandatory military service, a lump sum allowance for a pregnant woman, a guardianship (care) allowance, a lump sum allowance for housing, and for administrating children allowances. 60.9. Special European Refugee Fund programme Programme funds are used for the establishment or improvement of the infrastructure of receiving refugees or displaced persons, for the provision of social services, for the promotion of the employment of such persons and for the organisation of their voluntary return, etc.

1.2. public relations and counselling of individuals on social security matters

1.2.1. public relations activities of the ministry

In 2006, the public relations activities of the Ministry of Social Security and Labour covered a number of social campaigns, a lot of information publications, and organisation of other related measures. One of the largest events of the year was the campaign “May – a Month without Violence against Children” which was organised for the third consecutive year. The campaign focused on the

Social Report 2006–2007 15 1 C h a p t e r problem of children’s violence against children. The campaign was started with the seeing off of a special bus which, together with a company of actors and a psychologist, visited 45 schools of the country. Schoolchildren took part in the spectacular concert-performance “A Trip of Good”. Actors Vaidutis Lengvinas, who performs together with “Teatriukas”, and Loreta Gasiūnaitė, head of the children’s drama studio at Biržai Culture Centre, took a trip together with children who sang, drew, performed, wrote wishes to their friends, parents, teachers, and talked to a psychologist who told them about the causes and consequences of bad behaviour, and discussed good behaviour issues with children. During the events, children were distributed campaign stickers, pinwheels, and booklets with the information where a child could ask for help if he knew or felt violence against him. Adults were invited to sign a manifesto created by children, which urged not to harm children, to help them and advise them where to address for help. During the campaign, outdoor advertising stands against violence were placed across Lithuania (in bus stops, filling stations). The campaign was crowned with the concert “For a Beautiful Child’s World. I Want to Dream” organised in Siemens Arena, Vilnius, on 1 June, the International Children’s Day. 54 most talented children from child care home and schools selected by a professional commission participated in the concert. Famous composers, producers, and choreographers helped the selected children to prepare for the show, and popular Lithuanian artists performed together with them. One more social campaign which received considerable attention was the campaign “We Want to Be Together” organised by the Ministry of Social Security and Labour together with the Ministry of Education and Science. The ministries invited schoolchildren of all Lithuanian secondary schools to write essays and reveal their relation to disabled children, understanding of the world of disabled children, to tell how they play and learn together with the disabled, what they can do that the disabled feel well among the healthy, and what adults should do in order to help disabled children. Organisers of the competition received over 300 essays, and selected 30 best ones. The assessment commission was surprised by sincerity present in essays, a simple child’s word full of love to the disabled friend. Another aspect of the activities of public relations in 2006 was publication of the photo album of the best works of the campaign “Smile to the Youth” started in 2005 in cooperation with Vilnius Academy of Fine Arts. The purpose of the campaign was to join two different generations in pho- tography. The Ministry of Social Security and Labour, together with the Lithuanian Journalist Union and the State Social Insurance Fund Board, organised a creative competition for journalists “Social Insurance – A Future Guarantee” with the view of encouraging journalists to familiarise the public with social insurance news, arising problems and their solutions, and to look at an individual. On 19 November, the International Day for the Prevention of Child Abuse, upon the initiative of the Ministry, 4,000 children from child care home and day centres from the entire Lithuania were provided with the opportunity to watch the animated film “Open Season” free of charge in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, and Marijampolė cinema theatres. In 2006, a representative opinion poll of Lithuanian residents was conducted, which helped to ascertain the most relevant social problems; a cycle of documentary programmes “Emigrants” was supported, which was oriented to raising public awareness and highlighting consequences of emigration.

16 Social Report 2006–2007 I ntroduction

The Social Report was published in Lithuanian and English, as well as in CD format. Informa- tive-representative brochures about the Ministry, its aims and activities, in Lithuanian and English, and in CD format, were also published. The following publications were prepared and published: “New Information for Families Raising Children in Brief”, “New Information Concerning Com- pensation for Heating and Support for Families”, other information publications; moreover, press releases were prepared and other educational activities organised.

1.2.2. counselling of individuals on social security matters

In 2006, the Reception Office of the Ministry received 1,086 letters from residents of Lithua- nia containing statements, proposals and complaints, and provided nearly 1,100 oral consultations to visitors of the Reception Office. As the telephone number of the Reception Office is accessible via 118 information, the number of inquiries submitted by phone is also significant. Responses are given to inquiries received by e-mail, the number of which is also growing. Inquiries by e-mail are mostly submitted by younger applicants, and they usually relate to children allowances, and maternity (paternity) benefits. Electronic inquiries are usually not detailed enough; therefore, the answers are sometimes not specific. The Reception Office regularly organises the reception of residents by high-level officials of the Ministry. In 2006, the biggest number of letters was received from Vilnius (186), Kaunas (113), Klaipėda (38), and Panevėžys (32) cities, and from Jonava (21), Telšiai (21), Radviliškis (19), Panevėžys (16), Utena (16), Vilnius (16), Ukmergė (15) and other districts. It can therefore be stated that the flow of inquiries, with rare exceptions, is directly proportional to the number of residents of the city or district. The number of inquiries from the so-called “problem regions” was not significantly higher. In 2006, the residents were mostly interested in issues such as pensions and social insurance, social assistance benefits, and the unemployment insurance benefits, employment opportunities, compensation for damages, lump sum financial support, etc. (see Table 1.2.1-1).

Main issues of inquiries submitted to the Ministry by residents in 2006

Inquiries concerning Number of residents Pensions, social insurance 453 Social and unemployment insurance benefits 252 Issues related to the compensation for damages, revision of the 171 disability and working capacity levels, and other legal issues Lump sum financial support 106 Other issues 104 Total 1086

Data from the Ministry of Social Security and Labour Table 1.2.1-1

Social Report 2006–2007 17 1 C h a p t e r

The data presented in the table show that approximately half of the individuals submitted inquiries about social insurance. Most residents inquired about repayment of the share of pension to working pensioners who were not paid the full amount of pensions, the reform of the widow’s/widower’s pensions (proposals submitted by single and divorced individuals), the envisaged increase of state social insurance pensions, correctly calculated length of service, the possibilities of proving the length of service, the entitlement to sickness and maternity benefits, etc. The general public positively evaluated almost the largest increase of pensions in February 2007. Individuals also submitted a number of inquiries and proposals regarding the ways of increasing the basic pension and the insured income. The decisions on the influence of the length of service on the increase of pensions for individuals with short length of service were considered to be insufficient. The number of inquiries received allows us to assume that individual groups of society try to defend their interests regardless of the general situation, and the most acute problems of the general public. The Ministry also received a considerable number of letters from the retired, the disabled, and other social groups with requests for various financial support, claiming that social benefits were too small and prices of goods or services were too high.

18 Social Report 2006–2007 LABOUR2 MARKET

2.1. PROMOTION OF EMPLOYMENT AND INVESTMENTS INTO HUMAN CAPITAL

2.1.1. labour market and implementation of employment support policy

2.1.1.1. Employment

Data of the Department of Statistics to the Government of the Republic of Lithuania (Sta- tistics Lithuania) reveal that in early 2006, the number of the Lithuanian population was 3,406,200, i.e. 22,100 less than in early 2005. As a result of a negative natural change in population, the number of population dropped by 13,300 people (60.2 per cent), and due to the negative net migration, it decreased by 8,800 people (39.8 per cent). Data of the Labour Force Survey showed that in 2006, the number of the working population was 1,499,000 or 25,100 people more (1.7 per cent) than during the previous year. The number of the labour force dropped by 18,500 people (1,2 per cent) reaching the total of 1,588,000 residents. The labour force activity rate (aged 15-64) declined from 68.3 per cent in 2005 to 67.4 per cent in 2006. The growing economy during the recent years in Lithuania created favourable conditions for employment. With the number of employed population increasing, the employment rate of population aged 15–64 grew from 62.3 per cent in 2005 to 63.6 per cent in 2006. The level of employment among men was higher than that of women, 66.3 and 61 per cent accordingly. The European Union Employment Strategy provides for the increase of employment of population, senior people in particular. The Lisbon strategy sets the following objectives to be reached by 2010 (see Table 2.1.1.1-1):

Social Report 2006–2007 19 2 C h a p t e r

Key Employment Objectives of the EU and Lithuania to be reached by 2010, Achievements (%)

Lithuania’s Lithuania’s 2006 EU objective Employment rate objective objective for Lithuanian for 2010 for 2010 2006 data Population aged 15-64 70 68.8 64.0 63.6 Women aged 15-64 60 61.0 58.8 61.0 Population aged 55-64 50 50.0 47.5 49.6

Labour Force Survey Data Table 2.1.1.1-1

Lithuania has already implemented one part of the Lisbon strategy; it has reached the employment rate of 61 per cent among women. Lithuania has been successfully pursuing the strategy, increasing the employment of senior people up to 50 per cent. The employment rate of senior people in Lithuania has been rising rather rapidly (from 44.5 per cent in 2003 to 49.2 per cent in 2005). In 2006, the employment rate among people aged 55–64 accounted for 49.6 per cent and thus exceeded the Lisbon strategy indicator (47.5 per cent). It was one of the highest indicators in the European Union. The goal for 2010 is to raise the employment rate aged 15–64 to 68.8 per cent. Data of the Labour Force Survey (see table 2.1.1.1-2) reveals that in 2006, the majority of people worked in the service sector (613,000 people or 40.9 per cent of all the employed) and industry (296,000 people or 19.8 per cent of the employed population). During the recent years, the number of people involved in agriculture, hunting and forestry has been shrinking. In 2006, these economic sectors attracted 186,600 people or 12.4 per cent of all the employed. As compared to 2005, the number of employed in these areas dropped by 1.6 percentage point. The majority of people (18 per cent) were working in these areas in 2000 and 2003. In 2006, as compared to 2005, the number of the employed in the construction sector increased by 0.9 percentage point reaching 16,200 people, whereas in industry it grew by 1.2 percentage point amounting to 21,300 people.

Employed population by economic activities

2005 2006 2005 2006 Thous. % Total 1473.9 1499.0 100.0 100.0 Agriculture, hunting, forestry and 207.0 186.6 fisheries 14.0 12.4 Industry 296.2 296.0 20.1 19.8 Construction 132.5 148.7 9.0 9.9 Trade 233.3 254.6 15.8 17.0 Services 604.9 613.0 41.1 40.9

Labour Force Survey Data Table 2.1.1.1-2

20 Social Report 2006–2007 labour market

The share of contracted employees has also gone up. In 2006, they accounted for 84.3 per cent of all the employed (as compared to 83 per cent in 2005) (see table 2.1.1.1-3). Moreover, the number of people having additional work has grown. In 2006, their number was 90,200 people (6 per cent) of all the employed. In 2005, their number was 84,400 people (5.7 per cent).

Employed population according to the status of employment

2005 2006 2005 2006 thous. % Total 1473.9 1499.0 100.0 100.0 Employers and self-employed 206.3 199.8 14.0 13.3 Employers 1224.1 1263.7 83.1 84.3 Contributing family workers 43.5 35.5 2.9 2.4

Labour Force Survey Data Table 2.1.1.1-3

The demand for the labour force remains to be huge, particularly for the non-fixed labour. In 2006, the Lithuanian Labour Exchange registered 109,600 vacancies for permanent work, i.e. 7.6 per cent more than in 2005. 15,300 job offers were registered for fixed work. More than half of the vacancies were registered in the service-providing enterprises. In 2006, the service sector had 66,100 vacancies, the construction sector and agricultural sector had 17,400 and 5,400 vacancies respectively. As compared to 2005, the number of job offers in the service sector increased by 6 per cent, in the constructor sector, by 2 per cent, whereas in the agricultural sector their share decreased by around 22 per cent. In the service sector, the biggest demand was for shop assistants, truck and cargo truck drivers, car and taxi drivers, cooks, security staff; in the industrial sector, mostly demanded were welders, tailors, machine operators, assemblers, toolmakers; in the construction sector, the biggest need was for painters, carpenters, cladders, bricklayers. The most demanded specialists in the year 2006 included the following: sales and business service managers, accountants, insurance agents, project managers, general education teachers, line managers of finance and management, product manufacturing and service divisions..

2.1.1.2. Unemployment

According to the data of the Labour Force Survey, carried by Statistics Lithunia, in 2006, the unemployment rate in Lithuania was 5.6 per cent (Fig. 2.1.1.2-1) and hence was smaller than the average level of unemployment in the EU (8 per cent). In one year, the unemployment level dropped by 2.7 percentage point, from 8.3 per cent in 2005 to 5.6 per cent in 2006. The unemployment rate among women was smaller than that of men in 2006, making up 5.4 per cent. As compared to the previous year, it dropped by 2.9 percentage points. The unemployment rate of men made up 5.8 per

Social Report 2006–2007 21 2 C h a p t e r cent in 2006 and as compared to 2005, it shrunk by 2.4 percentage points. The youth unemployment rate in 2006, similarly to the situation in 2005, was higher than the national average and accounted for 9.8 per cent. In comparison to 2005, it went down by 5.9 percentage points.

Unemployment rate (%)

Labour Force Survey Data Fig. 2.1.1.2-1

The average number of the unemployed in 2006 was 73,200 people, i.e. 27,500 people less than in 2005. During the year 2006, 160,800 unemployed persons applied to territorial labour exchange offices. Since early 2003, when the share of unemployed men and women was almost equal, the number of unemployed women has been steadily growing. Among the applicants to the labour exchange offices, women accounted for 54.4 per cent. In 2006, the number of long-term unemployed dropped by 10,300 people or 44 per cent. The structure of the unemployed by education has not changed much in 2006 as compared to the previous year. The share of unemployed persons with higher education went up from 7.2 to 8.3 per cent and the number of the unemployed with college education dropped from 18.4 per cent to 17.6 per cent. The unemployed with secondary education accounted for 53.1 per cent (in 2005, they made up 53.5 per cent), those with basic education were 16.6 per cent (as compared to 16.4 per cent in 2005) and those with elementary education made up 4.3 per cent (this share has not changed since 2005) of all the unemployed. Around 37.3 per cent of all the registered unemployed did not have any vocational training. Prior to registering with the labour exchange, the lion’s share of all the registered unemployed (more than 36 per cent) carried out unqualified work. More than 16 per cent of the registered unemployed had experience of working as qualified workers and craftsmen, almost 13 per cent of the unemployed worked in the services sector.

22 Social Report 2006–2007 labour market

In 2006, the Lithuanian Labour Exchange registered 42 notices about dismissal of groups of staff and warnings about the dismissal were given to 6,700 employees. As compared to 2005, the number of such warnings doubled, although the number of notices dropped by one third. The main reason for such dismissals was the same like in the previous year: bankruptcy proceedings initiated against companies (in 55 per cent of cases).

2.1.1.3. Employment and Active Labour Market Policy Measures

In 2006, the Lithuanian Labour Exchange provided employment assistance to 99,700 job- seekers, including 84,600 persons who received permanent work and 15,100 who got fixed-term contracts. Some of the vacancies could not be filled as a result of rather sluggish mobility of internal labour force. Vacancies were easier filled in towns and cities than in regional areas. Offices of EURES (European Employment Services) in Lithuania have been further developing their operations, providing 22, 500 pieces of advice about the free movement of persons. 63 private companies having the licence issued by the Ministry of Social Security and Labour to provide intermediary services of employment abroad helped find employment in foreign countries for 2,300 Lithuanians. Seeking to bridge the gap between territorial unemployment rates, projects of local employment initiatives have been successfully implemented. Using the funds of the national budget and the Employment Fund, 43 projects were carried out, unemployed persons filled out 278 vacancies. Measures adopted by the Lithuanian Government addressing social and economic problems faced by the territories struck by the highest unemployment (Pasvalys, Akmenė, Mažeikiai, Druskininkai and Lazdijai) were subject to further implementation. By the type of economic activities, 23 projects were carried out in manufacturing (timber processing, food products, furniture, furniture fittings, plastic windows), 22 projects were implemented in the service sector (car maintenance, organisation of entertainment and leisure activities, catering services), 1 project was conducted in the construction sector. Most of the projects were carried out in Pasvalys (5) and Akmenė (4) regions. The status of the social enterprise providing support for the most vulnerable was granted to 13 enterprises. In late 2006, there were 49 social enterprises which employed 2,245 persons, including 1,329 disabled people. Since 1 August 2006, when the Law on the Promotion of Employment came into effect, the following new labour market policy measures have been applied: subsidised employment, support for the acquisition of professional skills, job rotation. During 2006, the Lithuanian Labour Exchange provided new employment opportunities (training, work experience, supported employment) to 99,800 job-seekers, i.e. about 62 per cent of the registered unemployed during that period. In 2006, 19,300 unemployed persons and employees given a notice of dismissal were sent to the programmes of vocational training to acquire a new profession or sharpen their professional skills. 8,300 long-term unemployed took part in long-term initiatives of refreshing professional knowledge and practical skills. Subsidised job creation helped persons who find it difficult to integrate, find their place on the labour market. Upon coming into effect of the Law on Support for Employment (1 August 2006) new jobs

Social Report 2006–2007 23 2 C h a p t e r were created only to disabled persons and those who finished programmes of professional rehabilitation. During that period 51 jobs were created for persons with 20-55 per cent of employment capacity. Job rotation is a new employment support measure which has helped employers receive workers with the required qualifications to replace permanent staff when they take vacation or in other cases provided for in collective agreements. The job rotation enables to employ persons who are out of the labour market and who have the necessary qualification or work experience. 60 employers have been applying the job rotation action, employing 77 persons. The majority of job-seekers were employed as tailors, salespersons, cooks and managers. Participants of the supported employment initiative were socially vulnerable persons (their number was more than 42,400 people) including more than 34,000 persons involved in public works, more than 4,000 persons taking part in the programme supported by the Employment Fund, more than 2,700 people participating in subsidised employment and 1,300 people taking part in the action of professional skills acquisition. Public works created more than 34,000 temporary jobs. 4,000 projects were implemented, including 67 per cent of the projects developed by municipalities. Such projects provided temporary employment to 25,000 job-seekers. The majority of the chosen projects are related to small repair works, assistance with regard to historical and cultural heritage, protected objects and those having enduring value, book funds and archive management. Repair works were performed in 1,400 schools, foster homes, kindergartens and hospitals; cleaning works were done in 600 objects of historical and cultural heritage and more than 3.1 ha of parks. Programme of Supported Works by the Employment Fund provided an opportunity to the unemployed to acquire and sharpen their professional skills hands-on and speed-up their integration into the labour market. Pursuant to the programme, employment was offered to more than 4,000 unemployed, including 55 per cent of people who finished vocational training of the labour market. By the end of the programme, 77 per cent of the unemployed stayed for permanent work. The initiative of subsidised employment involved more than 2,700 unemployed who received additional support. That number included 500 disabled persons (with 20-55 per cent of employment capacity). 70 per cent of the unemployed who received additional support obtained permanent jobs. Support for the acquisition of professional skills is an employment support initiative which was first launched on 1 August 2006 when the new Law on Promotion of Employment came into effect. This initiative helped persons who started working according to their speciality and who finished programmes of professional rehabilitation to acquire the skills necessary for their work. Helped by this initiative, 1,300 persons acquired hands-on professional skills, including 400 college graduates and 900 persons who finished vocational studies sent by the labour exchange.

2.1.1.4. Social Insurance Unemployment Benefits

In the end 2006, unemployment benefits were given to 17,800 (22.4 per cent) unemployed. In the end 2005, their number accounted to 17.3 per cent. In 2006, the Employment Fund allocated LTL 74,743.3 for these benefits. Out of that number, LTL 29,800 was used for unemployment benefits for EU countries. In 2006, as compared to 2005, the amount allocated for unemployment benefits was LTL 16,335.8 (or 27.9 per cent) bigger.

24 Social Report 2006–2007 labour market

The average unemployment benefit in 2006 was LTL 399.7. In comparison to 2005, it grew by LTL 70.9 (or 21.6 per cent) The amount allocated for pre-retirement allowances in 2006 was LTL 4,388,000 (or 1.6 per cent) of all the funds used. As compared to 2005, the overall amount of pre-retirement benefits was LTL 8,515,000 (or 66.2 per cent) smaller. Upon coming into effect of the Law on Social Insurance of the Unemployed on 1 January 2005, pre-retirement pensions are paid only to those unemployed which were granted prior to 1 January 2005.

2.1.1.5. Employment of Foreigners in Lithuania

Favourable economic conditions and huge demand for the labour force created an employment opportunity for a bigger number of foreigners. With a small number of registered unemployed and huge demand for the labour force, the shortage of qualified labour was particularly apparent. As a result, it became a problem to respond quickly in filling in vacancies. In 2006, the biggest need was for fitters, metalworkers, carpenters and concrete-layers. The biggest increase in the demand has been of international route drivers (19 per cent) and highly qualified bricklayers (2 per cent) (see Fig. 2.1.1.5-1).

Foreigners having a permit to work in the Republic of Lithuania by profession

Data from the Lithuanian Labour Exchange Fig. 2.1.1.5-1

With a view to satisfying the demand for qualified labour force, the Lithuanian Labour Ex- change issued about 3,000 work permits for foreigners to work in the Republic of Lithuania. Out of that number, 24 per cent of foreigners were posted workers. Work permits were issued to 2,927 men

Social Report 2006–2007 25 2 C h a p t e r and 55 women. Foreigners granted work permits worked in the following sectors: manufacturing (36 per cent), transport (34 per cent), construction (20 per cent) and services (9 per cent). The lion’s share of work permits were given to international route drivers from Ukraine, Belarus, Moldova, Kazakhstan, Georgia and Bulgaria (34 per cent); ship body assemblers and welders from Ukraine, Belarus, Bulgaria and Russia (20 per cent); bricklayers from Ukraine, Belarus, Georgia, Uzbekistan (8 per cent); electric welders from Belarus, Romania (5 per cent); ship fitters from Romania (5 per cent); cooks from China, Turkey and Armenia (4 per cent). In 2006, the Lithuanian labour market experienced major changes. The employment rate was growing and the number of the unemployed was shrinking. The demand for labour out- weighed its supply. The number of officially registered unemployed with the labour exchange has been steadily going down. As a result of diminishing labour force, primarily qualified labour, its demand has been growing. The problem of involvement of economically passive, senior people and those, having limited employment capacity remained pending. Vacancies could not be filled as a result of inefficiency of workplaces or inadequate internal mobility of the labour force.

2.1.1.6. Improvement of the Legal Framework of Employment and Employment Support

In 2006–2007, the legal framework of employment and employment support was subject to further changes. Amendments were made to the Law on Support for Employment and the Law on Social Enterprises. Seeking to reduce limitations on the development of social enterprises, the Seimas of the Republic of Lithuania adopted the Law Amending the Law on Social Enterprises which waives the limitation with regard to social enterprises. Now they do not have to comply with the requirements for small and medium enterprises set forth in the Law on Small and Medium Businesses. On 18 January 2007, the Seimas of the Republic of Lithuania adopted another Law Amending the Law on Social Enterprises which enables to: • expand the opportunity for the most vulnerable persons to get employment in social enterprises by broadening the target group with a new category: the disabled with severe disability and those with huge and medium special needs; • respond in a more flexible manner, on the part of social enterprises, to the orders received and perform them concluding an open-ended contract with employees working with the target groups for a shorter period, 6 months, rather than 12 months; • solve the issue of social skill development and social integration of the target group in a more rapid way, waiving the requirement of coordinating activities with the other labour market participants.

Law No.X-872 Amending Article 3 of the Law on Social Enterprises (Official Gazette, 2006, No. 116-4405). Law No. X-1040 Amending Articles 3, 4, 5, 8, 14, 18, 19 of the Law on Social Enterprises (Official Gazette, 2007, No. 17-629).

26 Social Report 2006–2007 labour market

Seeking to ensure better support to employment, the Seimas of the Republic of Lithuania adopted the Law Amending the Law on Promotion of Employment on 10 May 2007. The new law stipulates the following: • expand the group of persons that are additionally supported in the labour market by including the disabled with severe disability, children place under guardianship in a family, child care establishment until they are 25 years old; • improve the conditions of integration into the labour market of unemployed warned about their dismissal, general education pupils and students who work during their summer vacation and provide them an opportunity to earn some income necessary for their existence. While organising public works, compensation for employers will be paid by the territorial labour exchange (50 per cent) and municipality (50 per cent); transportation costs for commuters in accordance with the monthly rates of travelling by bus or train. In the end 2006, bearing in mind the situation in the Lithuanian labour market, the Descrip- tion of the Procedure and Conditions of Issuing Work Permits to Foreigners was reviewed and amended. Law on the Legal Status of Aliens stipulates that a work permit shall be issued to an alien for a period of up to two years which shall be received prior to coming to the Republic of Lithuania. Upon the expiry of the work permit, the alien must leave the Republic of Lithuania. However, there are certain economic sectors in Lithuania which lack labour force and where qualified workers from foreign countries are performing rather successfully. Difficulties related to issuing work permits to such workers would limit the economic capacities of such companies. The new Procedure includes the following provisions: – a work permit may be issued to a foreigner living in the Republic of Lithuania in exceptional cases, i.e. when he or she is engaged in economic activities where there is a shortage of labour force and where such shortage limits the economic capacity of the company wherein such foreigner is employed. Bearing the latter in mind, this opportunity is provided only to those foreigners who are employed under labour contracts; – the Minister of Social Security and Labour develop a list of deficit professions by the type of economic activities. In early 2007, the Order of the Minister of Social Security and Labour adopted the list of professions, by economic activities, which the Republic of Lithuania was short of in the first half of 2007. This list was concluded taking into account the demand for the labour force registered in the Lithuanian Labour Exchange which exceed the supply two times and vacancies which were not filled for more than three months.

Law Amending and Supplementing Articles 4, 26, 27, 28, 30 of the Law on Promotion of Employment (Official Ga- zette, 2007, No. 59 – 2278). 24 September 2004 of Order No. A1-223/1V-310 of the Minister of Social Security and Labour and Minister of the Interior of the Republic of Lithuania (Official Gazette, 2004, No. 149-5435; 2006, No. 135- 5126). Law of the Republic of Lithuania on the Legal Status of Aliens (Official Gazette, 2004, No. 73-2539). 13 February 2007 Order A1-38 of the Minister of Social Security and Labour (Official Gazette, 2007, No. 21- 784).

Social Report 2006–2007 27 2 C h a p t e r

In early 2007, the amendments to the Description of Conditions and Procedure of Issuance of Work Permits to Aliens include the following: – upon the adoption of the Law of the Republic of Lithuania Amending the Law on the Legal Status of Aliens, the national legislation included provisions of Council Directive 2004/114/EC of 13 December 2004 on the conditions of admission of third-country nationals for the purposes of studies, pupil exchange, unremunerated training or voluntary service. The law stipulates that an alien who is issued a work permit during the period of his or her studies, shall be entitled to work outside their study time for not longer than 20 hours per week and only from the second year of studies. With that in mind, the description of the procedure includes a provision stating that an employer willing to employ a foreigner studying in Lithuania, shall provide a certificate confirming the foreigner’s studies in the higher educational establishment of the Republic of Lithuania. – stricter regulation of duration of work permits in the Republic of Lithuania applied to posted workers to Lithuania for temporary work. Foreigners posted to work in Lithuania on a temporary basis shall work in companies for up to 2 years and upon expiry of their work permits, the employers shall be entitled to extend their duration. In the event when foreigners are posted to Lithuania, they are subject to national social insurance laws (of their permanent place of stay). Such practice has a negative impact upon the social insurance budget of the Republic of Lithuania and takes away the opportunity to monitor, by registering social insurance payments, whether or not employers abuse foreigners’ employment rights (paying them minimum wage, refusing to employ Lithuanian nationals and offering them a proper pay, hence contributing to their emigration from Lithuania). Therefore, all the special conditions should be applied only to foreigners employed by the Lithuanian employers under labour contracts, rather than posted employees. Moreover, social insurance of posted employees is regulated by mutual assistance agreement on social insurance ratified by the Seimas. Mutual agreements with Belarus and Ukraine (nationals of these countries constitute 1/3 of foreigners employed in Lithuania) stipulate that the duration of such posting should be up to 2 years and that such an employee should be eligible to national social insurance rights (of permanent place of stay). The order concerning temporarily posted foreigners in a company of the Republic of Lithuania provides for an opportunity of issuing a work permit for 1 year and in case of economic necessity, such a permit may be extended by one more year. Upon the expiry of such work permit, the foreigner shall be obliged to leave the Republic of Lithuania. Such a foreigner may be posted for temporary work in Lithuania following not less than three months upon the expiry of his/her previous work permit. Admittedly, the criteria of a 3-month break between postings in Lithuania is also applied to the European Union nationals.

24 April 2006 Order No. A1-118 of the Minister of Social Security and Labour (Official Gazette, 2006, No. 46-1669; 2007, No. 11-474). Law Amending Articles 2, 6, 7, 8, 11, 17, 18, 21, 25, 26, 28, 33, 34, 35, 40, 43, 46, 50, 51, 53, 54, 55, 56, 64, 79, 88, 90, 93, 96, 97, 99, 100, 101, 102, 104, 106, 113, 115, 127, 130, 131, 132, 136, 138, 140 of the Law on the Legal Status of Aliens, Supplementing the Law with Articles 49¹, 101¹, 140¹, Declaring Null and Void of Articles 30, 105, Amending the Title of Chapter X and Amending and Supplementing the Annex to the Law (Official Gazette, 2006, No. 137-5199).

28 Social Report 2006–2007 labour market

2.1.2. HUMAN RESOURCES DEVELOPMENT

Qualification of employees in Lithuania is becoming an increasingly more important factor impacting on demand of labour force. In the future, the quality of production, innovation, labour efficiency shall have an increasing impact on the competitive ability of the state, and the state economy shall continue undergoing the restructurization process refocusing toward production of higher added value products and services. These trends mainly depend on competence and qualification of the labour force. Education of Lithuanian people in employment is respectively high, although the labour force qualifications do not sufficiently correspond to the needs of the market. The shortage of qualified employees is becoming the key issue impeding on the economic development of Lithuania. Mis- match between the labour force qualification and the needs of the market arise due to a number of inter-connected reasons. First of all, education of young people – due to systematic vocational training and problems encountered by high education – is very often incompatible to the market. Integration of graduates from the system of science and education into labour market is also aggravated by the fact that the vocational information, orientation, and counselling system is not yet fully developed. Besides, employers do not allocate sufficient time for training of employees. Finally, not many Lithuanians engage in life-long learning – it lacks motivation, time, and funds. In this situation, improvements on the legal framework pertaining to development of human resources – enlargement of labour market, knowledge, skills, and competences – commenced, which should ensure flexibility of vocational training and more adequate conformity to the needs of the labour market.

2.1.2.1. Implementation and Co-ordination of the Labour Market Human Resources Development Policy

The Ministry of Social Security and Labour – while delivering the entrusted objectives in the area of development of human resources – implements the state labour market vocational training policy, guarantees functioning and improvement of the vocational training system for labour market, the design and implementation of the strategy on the policy for human resources of the labour market, and coordinates recognition of regulated professional qualifications. In order to ensure the best possible implementation of the principle pertaining to free movement of people and facilitate employment of persons in the EU states, recognition of regulated professional qualifications becomes relevant. Thus, the Ministry of Social Security and Labour has one of the key objectives in this area, i.e. to coordinate actions of competent authorities by issuing legislative acts that regulate recognition of respective regulated professions and that have to correspond to provisions of Directives of recognition professional qualifications. As per adoption of a new the European Parliament and the Council of Europe Directive as of 7 September 2005 on the mutual recognition of professional qualifications – which links 15 currently valid directives – the European Commission established a constitutive committee for transposition of the Directive provisions into national legislation. The Lithuanian Coordinator of recognition of

Social Report 2006–2007 29 2 C h a p t e r professional qualifications participated in activities of the aforementioned committee. In order to transpose provisions of the aforementioned directive into the national legislation of the Republic of Lithuania, the Order No. A1-90 of the Minister of the Social Security and Labour of the Republic of Lithuania as of 28 March 2006 approved a working group, which prepared the draft Law of the Republic of Lithuania on Recognition of Regulated Professional Qualifications. In 2006, the Lithuanian Coordinator of recognition of professional qualifications participated in the activities of the Committee of recognition of professional qualifications, provided information to the European Commission regarding regulated professions and competent authorities in the Republic of Lithuania, and prepared a report to the European Commission regarding recognition of regulated professions in the Republic of Lithuania. In order to measure the level of awareness of employers, persons seeking for recognition of professional qualifications, and the public in relation to recognition of professional qualifications and regulated professions as well as professional career in Lithuania, the Adult Education and Infor- mation Centre has made a research on the need of information in the area of regulated professional qualifications. In order to provide more detailed information to citizens of the EU member states who seek for employment in the Republic of Lithuania according to a regulated profession, specialists of competent authorities responsible for recognition of professional qualifications within their area or regulation as well as other stakeholders were issued information publications “Guide to recognition of regulated professional qualifications”,,,Recognition of regulated professional qualifications in the Republic of Lithuania” (in Lithuanian and English languages), and “The European Parliament and Council of Europe Directive 2005/36/EB on mutual recognition of professional qualifications and commentary”. On 3 April 2007, the Law of the Republic of Lithuania Amending the Law on Vocational Training was adopted (Official Gazette, 2007, No.43-1627), which shall enter into force since 1 Janu- ary 2008. The new wording of the Law on Vocational Training defined the structure of vocational training system, composition, handling, and awarding of qualifications, organization of vocational training, as well as its management, and funding of vocational training. The structure of the vocational training system changed. The Law of the Republic of Lithua- nia on Vocational Training defines it as the Lithuanian vocational training system that involves the initial vocational training, continuous vocational training, and vocational guidance. Law of the Republic of Lithuania Amending the Law on Vocational Training validates a view that vocational guidance services are provided to all residents of Lithuania. Upon enforcement of this Law, since 2008, there will be a new form for organization of vocational training legitimated, i.e. apprenticeship. It might be acceptable to those who would like to work and study at the same time as well as acquire a qualification faster. The Law provides that ap- prentices will be able to work and study at their place of work, i.e. the enterprise or institutions under supervision of an experienced highly qualified employee – craftsman. An apprentice shall operate under work and vocational training contracts. The new wording of the vocational training law legitimates the National Qualifications Sys- tem, which aims to ensure correspondence of qualifications to the needs of the economy, as well as their transparency, comparability, continuity of training, and vocational and territorial mobility of

30 Social Report 2006–2007 labour market persons. The system of qualifications shall involve development and management of qualifications, assessment of competences acquired by a person, and awarding of competences. It is anticipated that the system of qualifications shall be organized by the Qualifications Authority subordinated to the Government of the Republic of Lithuania. This Law defines the authority of social partners, which is currently wider than earlier. The Law also sets out that the qualification of graduates from vocational schools shall be assessed by accredited employer organizations, professional associations of respective industrial branches, or other competent assessment institutions. Requirements for institutions in charge of competence assessment as well as the procedure pertaining to their accreditation shall be defined by the Gov- ernment. The new wording of the Law also anticipates involvement of employers into vocational training system as well as a possibility for working people who have no recognized qualification to receive a certificate of qualification without leaving their place of work. The labour market prognoses shall allow for more flexible professional training that would better correspond to need of the labour market. In order to attract more people into the labour market as well as invest more and effectively into human resources as well as life-long learning, measures were planned in the Life-Long Learn- ing Assurance Strategy and action plan for implementation, which were designed together with the Ministry of Education and Science of the Republic of Lithuania (approved by the Minister of Educa- tion and Science by the Order No. ISAK-433/A1-83 as of 26 March 2004) as well as the Vocational Guidance Strategy Implementation Plan (approved by the Minister of Education and Science of the Republic of Lithuania and the Minister of Social Security and Labour of the Republic of Lithua- nia by the Order No. ISAK-415/A1-71 as of 23 March 2004). In 2006, functional methodological practical recommendations regarding social adaptation, medical rehabilitation, and vocational orientation to other areas of activity officials and soldiers released to retirement were prepared and approved together with the Ministry of Interior and the Ministry of National Defence, upon implementation of which a system shall be designed that will help officials and soldiers on retirement to make a decision regarding a new vocation, facilitate their social adaptation, and help them to feel stronger in the new working environment.

2.1.2.2. Vocational Training

In 2006, there were 29.1 thousand people who were trained in the labour market training centres. Labour exchange offices have referred 12.4 thousand of unemployed and persons notified regarding dismissal from work; employers – 9.6 thousand employees; 4.8 thousand funded their own training; 0.5 thousand were funded by the state funds; and 1.7 thousand were funded from international project funds. During the 1st quarter of 2007, 7.8 thousand people were trained in the labour market training centres, 2.5 thousand of whom were women. 1.7 thousand of those in training were up to 25 years of age, 0.6 thousand – older than 55, and 1.7 thousand – socially vulnerable people.

Social Report 2006–2007 31 2 C h a p t e r

Number of people trained in the labour market training centres

Data of the Lithuanian Labour Market Training Authority under the Ministry of Social Security and Labour Picture No. 2.1.2.2-1

Picture 2.1.2.2-1 shows a continuous trend for growth of people trained by labour market training centres: during the last 6 years the number of students increased by 1.7 times, i.e. from 17121 people in 2001 to 29105 people in 2006. The labour market vocational training system offers formal and non-formal labour market training programmes for obtaining a qualification, re-training or professional development. Formal training provides a graduate with an official certificate. Formal training programmes are recorded in the State Register for Studies and Training Programmes. Undertakings, organizations, and educational institutions wanting to deliver training according to these programmes have to receive a licence. Non-formal training provides a graduate with a free-form certificate that lists obtained knowledge and competences. The state does not regulate the content of such programmes and certificates issued. 19.2 thousand people graduated from formal training programmes in 2006; 3.7 thousand of them have obtained a professional qualification of level one, 8.6 thousand have obtained a professional qualification of the second level, and 6.9 thousand people graduated from training on safety and health of employees and certification programmes. During the first quarter of 2007, 5.8 thousand people graduated from formal training programmes, when 1 thousand of them have obtained a professional qualification of level one, 2.2 thousand have obtained a professional qualification of the second level, and 2.6 thousand people graduated from training on safety and health of employees and certification programmes. In 2006, 5.9 thousand people graduated from non-formal training programmes; 4.9 thousand people graduated from the pre-qualification training, 0.9 thousand people graduated from qualification development, and 0.1 thousand people graduated from modular training programmes. 4 thousand of unemployed participated in induction and knowledge and skills refresher instruments. In the 1st quarter of 2007, 1.7 thousand people graduated from non-formal training programmes, and 0.3 thousand people graduated from induction and knowledge and skills refresher instruments.

32 Social Report 2006–2007 labour market

During the year 2006, 38 labour market vocational training programmes were approved, from which 3 programmes were designed for acquiring a right to deliver certain jobs and functions. 54 labour market vocational training programmes were updated. During the 1st quarter of 2007, 11 new vocational training programmes of level two qualification and 4 new vocational training programmes of level one qualification were designed for people with intellectual disorders. While delivering the project entitled “Integration of Disabled People into the Labour Market”, 14 new formal and 17 new non-formal training programmes were designed and adapted for disabled people. In 2006, 178 labour market non-formal training programmes were designed, coordinated with employers and included into a digest of non-formal training programmes, 35 of which were non-formal education programmes. During the 1st quarter of 2007, 54 non-formal training programmes were designed, 14 of which were for disabled people.

2.1.2.3. Vocational Counselling

In 2006, 63.5 thousand people were counselled in the Labour Market Training and Counsel- ling Authorities, 46.2 thousand of which were adult job seekers, unemployed – 22.2 thousand. There were 16.6 thousand people counselled during the 1st quarter of 2007 in territorial authorities.

Number of people counselled in the territorial labour market training and counselling authorities

Data of the Lithuanian Labour Market Training Authority under the Ministry of Social Security and Labour Picture No. 2.1.2.3-1

Although during the current years unemployment has been decreasing in Lithuania, as data provided in Picture 2.1.2.3-1 shows, the need for vocational counselling remains rather big. People address specialists not only in cases when they want to find a job but also in times when they are in doubt of their choice and want to receive reliable professional information, or undergo various psychological difficulties related not only to employment or job searching but also to other changes in their lives. Vocational counselling services for students, their parents, pedagogues, and youth remain at high demand. Over the period of few last years – comparing individual and group work – there

Social Report 2006–2007 33 2 C h a p t e r was a rapid increase in group work with adults and pupils as well as their parents and pedagogues. This allows counselling more people at the same time as well as achieve more effective results. In 2006, 27.7 thousand people were individually counselled, they were provided with 31.4 thousand of individual counselling sessions, the total duration of which amounted to 40.9 thousand hours. Most people used vocational information and counselling services, i.e. 11.1 thousand; 16.6 thousand people participated in selection for vocational training programmes. In 2006, during individual and group counselling sessions, 15.6 thousand students were assisted in choosing a vocation that corresponds to their abilities and predisposition, and provide counselling on personality issues. 1.7 thousand student parents and pedagogues were provided with counselling sessions. In 2006, there were 35.7 thousand people counselled in group sessions. 18.3 thousand people participated in active job seeking and ability development programmes, 17.3 thousand people participated in motivation building and active involvement in labour market programmes, and 178 people participated in work ability programmes. During the 1st quarter of 2007, 7.8 thousand (47 percent) people received individual counselling and 8.7 thousand (53 percent) people received group counselling sessions.

2.1.2.4. Development of the National Qualifications System

The project entitled “Development of the National Qualifications System” listed under In- strument 2.4 of the Lithuanian General Programming Document for 2004–2006 (the project delivery timeframe is March 2005–February 2008). The main aim of the project is to develop a unified and transparent system of qualifications that involves all levels of qualifications, guarantees cross-level transfer, ensures all variety of paths to obtain qualifications, and providing a possibility to flexibly react to requirements of changing environment. In order to unify all qualifications into one unit and distribute them according to levels, a system of qualifications needs to be designed that will be determined by complexity and nature of delivered work. The National Qualifications System will be designed considering the requirements of the labour world and shall help employers of the state to assess competence, knowledge, and skills of an employee, and to education institutions – plan educational programmes. Objectives of the project “Development of the National Qualifications System”: – To design the model of the national qualifications system; – On the basis of the model of the national qualifications system, draft competence digests and qualification structures in the chosen economy sectors; – To prepare human resources required for implementation of the national qualifications system. While implementing this project in 2006: – The concept for the national qualifications system was prepared; – An analysis was made and a study was prepared on Analysis of Current Status of Lithu- anian Qualifications;

34 Social Report 2006–2007 labour market

– While designing the model of the national qualifications system, preparation of the qualification registry commenced, and prepared for Methodology National Vocational Standards; – Vocational activity analysis in construction and hotel-restaurant sectors commenced; – Preparation of an information management system for database of vocational activity analysis results; – Human resources were prepared for implementation of the National Qualifications System.

2.1.2.5. Optimization of the Labour Market Training and Counselling Service Provider Network

The project entitled “Improving the Lithuanian Labour Market Training and Counselling System Infrastructure by Modernizing Regional Labour Market Training and Counselling Cen- tres” listed under Instrument 1.5 of the Lithuanian General Programming Document for 2004–2006 (the technical assistance contract was signed on 31 August 2006), funded by the European Regional Development Fund (ERDF). The main aim of the project is to reduce unemployment in target groups, ensure quality of services and accessibility, providing good training conditions that correspond to the needs of the labour market, based on modernized infrastructure as well as equipment and machinery. The project is designed to restructure the system of Lithuanian labour market training and counselling. In 2006, the Ministry of Social Security and Labour – while delivering its objectives in the area of human resources development – implemented the state labour market vocational training policy, ensured functioning and improvement of the state labour market vocational training system, and coordinated recognition of regulated vocational qualifications.

2.1.3. STRUCTURAL FUNDS OF THE EUROPEAN UNION

The Ministry of Social Security and Labour is the Intermediary Body in charge of the planning of the funds of measure 5 of Priority 1 “The Development of Social and Economic Infrastruc- ture” and measures 1, 2 and 3 of Priority 2 “The Development of Human Resources” of the Single Programming Document of Lithuania for 2004–2006 and funds of co-financing as well as implementation and supervision of the measures. For the period of 2004–2006 all activity groups of measures administrated by the Ministry have received LTL 548.36 million, of which LTL 417.42 million are the funds from the Structural Funds of the European Union and LTL 130.94 million are national co-financing means. Activity groups under the SPD Measure 1.5 The development of infrastructure of labour market, education, vocational training, research and study institutions, and social services were given for this period LTL 130.75 million, of which LTL 100.67 million come from the European Regional Development Fund.

Social Report 2006–2007 35 2 C h a p t e r

The funds allocated for the implementation of the SPD Measure 2.1 Development of employability, 2.2 Development of labour force competence and adaptability to changes and 2.3 Prevention of social exclusion and social integration reach LTL 417.61 million, of which LTL 316.75 million come from the European Social Fund.

SPD Measure Funding Responsibilities for 2004–2006 (LTL million)

Data of the Ministry of Social Security and Labour Figure 2.1.3-1

2.1.3.1. Project Selection Results

In implementing the SPD measures administrated by the Ministry, by the end of 2006, 16 calls for project proposals for EU support were published. 730 applications were registered for the total support amount LTL 945.39 million.

Project Selection Results of 1 May 2007

Decision made with Support Applications Measure, invitation No. regard agreements registered to support signed Total 730 450 446 1.5 Development of the labour market, educational, vocational training and research institutions and the social 215 101 101 services infrastructure (supplementing the measures supported by the ESF) BPD2004–ERPF-1.5.0-05 50 24 24

36 Social Report 2006–2007 labour market

BPD2004–ERPF-1.5.0-06 26 12 12 BPD2004–ERPF-1.5.0-08 55 31 31 BPD2004–ERPF-1.5.0-09 63 24 24 BPD2004–ERPF-1.5.0-10 8 4 4 BPD2004–ERPF-1.5.0-13 11 4 4 BPD2004–ERPF-1.5.0-14 2 2 2 2.1 Development of employability 5 5 5 BPD2004–ESF-2.1.0-01 3 3 3 BPD2004–ESF-2.1.0-02 1 1 1 BPD2004–ESF-2.1.0-03 1 1 1 2.2 Development of the labour force 329 246 242 competence and adaptability skills BPD2004–ESF-2.2.0-01 107 46 45 BPD2004–ESF-2.2.0-02 222 200 197 2.3 Prevention of social exclusion and 181 98 98 social integration BPD2004–ESF-2.3.0-01 55 21 21 BPD2004–ESF-2.3.0-02 59 37 37 BPD2004–ESF-2.3.0-03 18 13 13 BPD2004–ESF-2.3.0-04 49 27 27

Data of the Ministry of Social Security and Labour Table 2.1.3.1-1

Following the evaluation of administrative conformity, eligibility, benefits and quality of applications received, decisions were made to provide financial assistance for 450 projects. Of all applications submitted, 62% thereof were deemed eligible for funding. The main reasons for rejection of projects included the following: • unjustified need for the project, its relevance and benefits; • unjustified project expenses, necessity and link with activity groups; • no logical connection between project goals, objectives and expected results; • insufficient administrative capacities of the applicant for implementation of the project; • unclear project implementation methodology; • project sustainability not ensured; • poor quality of filling in applications, inaccurate information provided.

The total amount for funding projects was LTL 562.7 million, or 101.1% of the total amount of liabilities under the SPD for 2004–2006. The decision to allocate more funds for the project implementation than planned was made in order to use possible savings of support funds unavoidable when implementing the projects.

Social Report 2006–2007 37 2 C h a p t e r

Most applications were submitted by applicants registered in Vilnius and Kaunas Counties. Institutions, enterprises and organisations of these counties submitted about two thirds of all applications registered.

Distribution of Applicants in Counties

Data of the Ministry of Social Security and Labour Figure 2.1.3.1-1

On the other hand, some applicants submitted projects which they planned to implement in several counties or which covered geographically unlimited areas within the country, which is why evaluation of distribution of the support funds shows that the funds are distributed evenly by the size of the county.

Distribution of Support Funds in Counties, %

SEMIS data Figure 2.1.3.1-2

38 Social Report 2006–2007 labour market

By the end of 2006 all the funds allocated to the measures supervised by the Ministry of Social Security and Labour by the EU Structural Funds for the programming period of 2004–2006 were distributed. Implementation of all projects is to be completed by 1 June 2008.

2.1.3.2. Measure Implementation Results

Under the SPD Measures 2.1, 2.2 and 2.3 funded by the European Social Fund 345 contracts were signed for the total value of LTL 428 million, of which more than LTL 318 million (74.3%) were the EU funds. Support was allocated for training of the employed in industry, private business and the public sector, development of computer literacy, training of socially vulnerable groups and promotion of integration thereof, training of the unemployed and support for employment, promotion of social partnership and other areas. In implementing the projects, more than 177 thousand people will participate in various activity groups. 57 infrastructure objects for development of human resources will be constructed or modernised. By the end of the first quarter of 2007, more than 70 thousand representatives of target groups were involved in the projects under implementation.

Number of Trained Beneficiaries on 31 March 2007

Data of the Ministry of Social Security and Labour Figure 2.1.3.2-1

By 1 June 2007, 87 projects under measures administrated by the Ministry of Social Secu- rity and Labour were completed. Of them 69% were small investment projects under Measure 1.5. The main activities of most projects are still being implemented or will be implemented by the end of 2007.

Social Report 2006–2007 39 2 C h a p t e r

In implementation of projects, by 1 June 2007 LTL 127.6 million, or 23% of the funds allocated for the project implementation were incured and considered eligible to the European Commission. Of them LTL 95.8 million came from the European Union Structural Funds.

Appropriation of SPD Measure Funds before 1 June 2007

SEMIS data Figure 2.1.3.2-2

2.1.4. STRUCTURAL FUNDS OF THE EUROPEAN UNION FOR 2007–2013

2.1.3. Section Structural Funds of the European Union provides information on the implementation of measures of the Single Programming Document of Lithuania for 2004–2006 assigned to the Ministry of Social Security and Labour. This section provides information on which areas assigned to the Ministry of Social Security and Labour are to be supported using the Structural Funds of the European Union for 2007–2013.

2.1.4.1. EU Structural Support for Lithuania for 2007–2013

The EU structural support for Lithuania for 2007–2013 allocated by the European Social Fund, the European Regional Development Fund and the Cohesion Fund amounts to more than LTL 23 billion. The support will be provided under the Strategy for Use of the EU Structural Support for 2007–2013 of Lithuania and separate action programmes to implement the strategy.

40 Social Report 2006–2007 labour market

The EU Structural Support Strategy provides for the key goal of use of the EU structural support for Lithuania for 2007–2013 – to rapidly improve conditions of investment, work and life in Lithuania so that benefits of economic growth would reach all residents of Lithuania. The Strategy also sets out three development goals: 1. To accelerate economic growth in the long run. This is one essential condition of life improvement related to competitiveness of the Lithuanian economy on the international markets. Future development of Lithuania as a small country with open economy without its own large natural, energy, human and all other resources will more and more be based on knowledge and not on capital or raw-material intensive industry or services. 2. To create more better jobs. The biggest asset of Lithuania is people. Already now the lack of skilled labour force puts constrains on development, which is why there is the need to move on to the knowledge society as soon as possible at the same time creating jobs providing higher added value. 3. To develop social cohesion. Cohesion means a harmonious integrated society and due care for the environment. The Lithuanian residents should feel a part of one community and share benefits of economic development. These strategy development goals will be attained by investing in three essential priority directions of the strategy implementation: 1. Productive human resources for the knowledge society. This priority investment direction and actions provided for are discussed in detail in the Action Programme for Human Resources Development for the strategy implementation which has received 13.8% (LTL 3.2 billion) of the EU structural support funds. The programme is financed by the Euro- pean Social Fund (hereinafter referred to as the ESF). 2. Competitive economy. Objectives under this strategic investment direction will be solved with the help of the Action Programme for Economic Development which has received 45.72% (LTL 10.7 billion) of the EU structural support funds. The programme is financed by the European Regional Development Fund (hereinafter referred to as the ERDF) and the Cohesion Fund. 3. Quality of life and cohesion. Objectives for improvement of the living environment and quality of life are solved by the Action Programme for Cohesion Promotion, which has received 39.08% (LTL 9.1 billion) of the EU structural support funds. The programme is financed by the ERDF and the Cohesion Fund. 4. Moreover, 1.4% (LTL 322.1 million) of the EU structural support funds are allocated for the implementation of the Action Programme for Technical Assistance. This is a special additional action programme intended for administration of thematic action programmes. The programme is financed with the ESF funds.

2.1.4.2. Areas of Competence of the Ministry of Social Security and Labour Funded in 2007–2013 from the EU Structural Funds

According to the areas of competence Ministry of Social Security and Labour will be responsible for:

Social Report 2006–2007 41 2 C h a p t e r

– Implementation of the entire Priority 1 High-Quality Employment and Social Inclusion of the Action Programme for Human Resources Development. 5.5% of the total EU support, i.e. about LTL 1.3 billion, are to be spent on the implementation of this Priority. – Implementation of 4 measures of Priority 2 Quality and Accessibility of Public Services: Health Care, Education and Social Infrastructure. About 3.5% of the total EU support, i.e. about LTL 0.8 billion, are to be spent on the implementation of these 4 measures.

2.1.5.2.1. Priority 1 High-Quality Employment and Social Inclusion of the Action Programme for Human Resources Development. The logic of this priority is based on the assumption that state investments will help to ensure better coordination of the supply and demand of the labour force, particularly skilled labour force, which will in the long run create positive continuous economic effect overrunning the investments allocated. To promote adaptability of employees and enterprises or develop general skills of the population, investments will be made to the quality of the labour force and increase of capacity thereof. This will have a positive effect on the demand for the labour force as successfully functioning enterprises will look for new labour force or people with proper skills will start up own businesses (one must have in mind also the possibilities of further economic growth, favourable business environment, further economic integration into the EU market). The demand for the labour force will also be increased by various incentives of supported employment – social enterprises, “first-job” support, etc. Meanwhile the supply of the labour force will be increased by initiatives aiming at raising the level of employment and economic activity of the population and promoting integration of persons under social risk and social exclusion into the labour market. These initiatives will help such groups of people to acquire knowledge and practical skills valued on the labour market and enhance their motivation to work. Better coordination of the labour force supply and demand, creation of skilled jobs and supply of skilled workers will in the longer run help to essentially improve the social situation of the population and to ensure higher standard of living and quality of life. Promoting quality employment and social inclusion, it is necessary to continuously search for new innovate decisions and apply them in practice. The purpose of European Communities Initiative Equal in 2004–2006 was to search for innovative solutions in the social field. The Action Programme for Human Resources Development for 2007–2013 is based on continuous observance of the principles of EQUAL Initiative: to promote international cooperation, partnership, search for innovative solutions and coherent implementation thereof in politics and apply them not only in the social area but also in employment. In implementing Priority 1 of the Action Programme for Human Resources Development, the following objectives are to be attained: 1. To increase adaptability of employees and enterprises to market needs. Eligible areas: • improvement of human resources in enterprises (training of managers and employees, special initiatives for small enterprises) and in the public sector (e.g. health care institutions, culture and social work establishments); • development of computer literacy and entrepreneurship skills;

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• promotion of the social dialogue, increase of social responsibility of enterprises; • coordination of family and work responsibilities; • re-orientating of the labour force employed in agriculture towards other activities; • promotion of return of emigrants from Lithuania (information, counselling). 2. Promotion of Employment of the Population and Involvement Thereof in the Labour Market. Eligible areas: • general services to support employment (information, counselling, vocational guidance, etc.) for job-seekers and the unemployed; • vocational training and informal education of the unemployed and persons to become unemployed; • supported employment (employment with subsidising, support for development of labour skills, work rotation, territorial mobility of the unemployed, support for activities of social enterprises); • professional rehabilitation of the disabled. 3. Enhancement of Social Inclusion. Eligible areas: • reduction of discrimination and prevention of social problems (services and models for various groups of people under social risk – prevention of dependency on psychoactive substances, discrimination, domestic violence, trafficking in people and other social problems; initiatives changing discrimination stereotypes); • activity groups and services to promote return of people under social risk and social exclusion to the labour market (social and professional rehabilitation for persons dependent on psychoactive substances, convicted and released from imprisonment institutions, disabled people and other groups of socially vulnerable persons as well as development of the system of such services: implementation of systems of employability and evaluation of professional skills, development of advanced social work methodologies, special programmes for motivation for work and enhancement of training). These priorities and financed activity directions in fact continue and supplement activities started in implementation of the priorities and measures of the Single Programming Document of Lithuania for 2004–2006: at present funds are also allocated and measures are implemented to adapt competencies and skills of the labour force to changes, to increase employability, to promote social integration and to improve the infrastructure of social services. To properly develop human resources and achieve the goals planned, the relevant infrastructure will be developed and financed. Efficiency of the state efforts to improve the labour market situation depends on quality and accessibility of the labour market and the infrastructure of social services. Due to limited financial capacity of the state before as late as 2004 the infrastructure was given a rather small part of the state investments. The situation in this area is essentially changing after Lithuania has become the EU Member State and acquired the right to use the support from the EU Structural Funds. Support for development of the labour market and the infrastructure of social services in 2007–2013 will be allocated in implementation of the Cohesion Action Programme.

Social Report 2006–2007 43 2 C h a p t e r

2.1.5.2.2. Implementation of Priority 2 Quality and Accessibility of Public Services: Health Care, Education and Social Infrastructure of the Action Programme for Cohesion Promotion. The Ministry of Social Security and Labour will be responsible for the implementation of 4 measures of Priority 2 of the Action Programme for Cohesion Promotion: 1. Modernisation of the infrastructure of the vocational training system. In developing the vocational training infrastructure the primary goal is to ensure better coordination of the supply of and demand for vocational training, to improve qualification of the labour force and to encourage economically inactive people to become involved in the labour market. Complex projects improving cooperation between vocational training institutions and providing for optimal use of the infrastructure being developed will be promoted. Plans are made to invest into the optimised and general system, which means that any means will be allocated after evaluation of the entire network of vocational training institutions (primary and adult education) taking account of accessibility, specialisation and economic viability criteria and avoiding overlap- ping investments (due to that reason before fund allocation some institutions may be merged or closed). Most resources are to be allocated to areas where the highest growth of the demand for specialists is expected. Initiatives aiming at development or improvement of the infrastructure necessary for provision of professional practical skills valued on the labour market will be funded. The problem of poor use of information and communication technologies in the vocational training system is to be solved. Improvement of quality of vocational training services is expected to enhance the prestige of vocational training, more school students will decide to study at vocational schools, more employees and unemployed people will choose professional development or re-training services provided by the vocational training system. 2. Modernisation of the infrastructure of territorial labour exchanges of the Lithuanian Labour Exchange. The main goal of the measure is to improve the quality of services for employers and job- seekers and those seeking professional career provided by territorial labour exchanges of the Lithua- nian Labour Exchange, to increase diversity thereof and to encourage economically inactive persons to become involved in the labour market. In implementing this measure, funds are to be allocated for further modernisation of the infrastructure of the Lithuanian Labour Exchange. Optimisation and renovation of the network of territorial labour exchanges are to be continued in order to form an efficiently functioning mutually complementary network of institutions. In this area much is allocated under the Single Program- ming Document of Lithuania for 2004–2006, which is why new investments will be allocated for objects that will contribute to further development of quality services of state employment support. When allocation support, account will be taken of the recent labour market changes: the decreasing number of the unemployed, a rather large share of economically inactive people. Therefore, labour exchanges will also have to change – more focus will be placed on better coordination of the supply and demand on the labour market and the continuous application of the principle “work pays off”. Support is to be provided to initiatives that will help institutions implementing the state employment support policy to form a modern package of quality services customised for the needs of specific regions and target groups.

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New buildings or renovated buildings will improve labour safety and health care requirements to workplaces with regard to employees of territorial labour exchanges. Quality of services provided independently to the customer should particularly improve and they would become accessible to all. 3. Development of the infrastructure of non-stationary social services. The main goal of development of the infrastructure of non-stationary social services is improvement of the infrastructure and non-stationary social services by reducing disparities in the infrastructure of social services in municipalities, deconcentrating and decentralising organisation and provision of social services, increasing diversity thereof, modernising the material facilities of institutions providing social services and contributing to return of persons for whom social services are intended or family members of such persons to the labour market. Investments are planned into increase of accessibility, diversity and quality of non-stationary social services. Non-stationary social services will be developed both to ensure an adequate level of social security for beneficiaries of such services and to encourage economically inactive persons to return to the labour market. First of all, certain non-stationary social services will directly help persons from certain social risk groups (e.g. persons released from imprisonment institutions, persons with various dependencies, women victims of domestic violence, victims of trafficking in people) to return to the labour market. Moreover, the expanded network of non-stationary social services would make it possible to employ people who take care of family members unable to care for themselves (children, disabled people, elderly people, etc.). Development of the network of non-stationary social services will help to optimise the current structure of the network of social services by reducing the share of stationary services. There- fore, some institutions providing stationary services (boarding homes, care homes, etc.) will be reorganised into non-stationary institutions. To develop quality and accessibility of non-stationary social services, the network of institutions providing day care social services will be expanded. So small day social care centres (during the day) and crisis centres (for women, men and families) will be renovated or established anew. The latter are to be established in the territory of every county. Investments will also be made into mixed institutions providing social services (including family support services) and independent or temporary residential homes. 4. Development of institutions providing services for the disabled (including professional rehabilitation). After the new Law on Social Integration of the Disabled coming into force in 2005, formation of a new concept of disability focusing not on the disability but on creation of possibilities to work was started. Therefore, particular attention is paid to professional rehabilitation. Development of a system of professional rehabilitation of the disabled was started covering the following main services – vocational guidance, consultations, assessment of professional capacities, restoration or training to acquire new skills, retraining. The measure funds are to be used to finance development and renovation of centres for professional rehabilitation of the disabled by improving service quality and increasing accessibility thereof. While orienting these services towards disabled people of the working age, every of the 10 counties is expected to have at least centre for rehabilitation of about 50 persons (taking account

Social Report 2006–2007 45 2 C h a p t e r of the actual needs in the county). Over the entire territory of Lithuania there should be up to 500 rehabilitation places provided (included those in already functioning centres) for persons with the need for professional rehabilitation services. Provision of professional rehabilitation services to the disabled will go along with the effort to evaluate professional (working) skills of disabled people, restore them or develop new ones; to increase professional mobility of the disabled on the labour market, train and re-train them so that they would acquire a profession demanded on the market; to promote use of new technologies in the area of professional rehabilitation; to promote motivation of the disabled to work. Taking account of the above, it is also necessary to develop the infrastructure of the Service for Establishment of Disability and Ability to Work (including 25 territorial units) in order to improve abilities thereof to evaluate the level of the working capacity of the disabled and the need for professional rehabilitation services. Support will also be provided for development of the Centre for Technical Assistance to the Disabled in order to renovate the premises thereof and help to purchase modern equipment. Ac- cording to the plan, 4 new centres will be established next to the 6 already functioning ones. To promote integration of hearing-impaired people into the labour market and the society, there are translation centres for the sign language and in the future the number of such centres will increase to 10. Under this priority support is to be provided for renovation of the infrastructure of such centres and purchase of modern equipment.

2.1.5. THE EUROPEAN COMMUNITIES INITIATIVE EQUAL AND THE IMPLEMENTATION IN LITHUANIA

The European Community Initiative EQUAL (hereinafter referred to as EQUAL) is a part of the European Employment Strategy designed with a view to combating inequality and discrimination on the labour market. In Lithuania EQUAL supports 28 innovative development partnerships designed to increase equal employment opportunities on the labour market and reconciliation of professional and family life and to develop flexible forms of work. Although in 2006 progress in the social area was continuously increasing, problems faced by certain socially excluded groups show that the strategy of EQUAL programme and projects being implemented match the labour market policy carried out by the state and directly contribute to solution of the labour market problems focusing on support for persons facing exceptional discrimination on the labour market. Projects under Theme A Promotion of the Labour Market Open to All by Creating Condi- tions for Easier Access or Return to the Labour Market for Persons Facing Difficulty Integrating or Reintegrating into the Labour Market have helped to create and test models assisting the disabled, pre-retirement people, the long-term unemployed, ethnic and sexual minorities, victims of trafficking in people and other target groups to integrate into the labour market. Main activity groups performed by development partnerships: • training or re-training and professional guidance of the target group; • practical testing of results created;

46 Social Report 2006–2007 labour market

• provision of services to the target group; • analysis of needs of the target group to ensure higher quality of the result created by the project; • development of new model methodologies enabling integration of socially discriminated persons into the labour market; • development of the political dialogue to have impact by improving laws; • provision of social and psychological help; • one–stop–shop principle; • decreasing of the negative attitude of employers towards the target group; • development of the electronic database and information system meeting the needs of the target group; • improvement of the public attitude to the target group; • establishment of self-support centres or organisations. • creation of jobs.

Projects under Theme G Promotion of reconciliation of Family Life and Professional Activi- ties and Support for Men and Women out of the Labour Market to Reintegrate by Expanding More Flexible and Efficient Labour Organisation Forms and Support Measures are intended for opportunities of better coordination of professional and family life and development thereof. Models and schemes for care for children, elderly and disabled people have been created and tested, information about the working time balance and flexible work organisation forms is collected and disseminated. Measures have been created enabling to find information about stationary and non-stationary social services provided to unemployed family members who are not able to reconcile family and professional life because they have dependants – disabled persons (children and adults) or elderly people unable to take care of themselves – and who having used such services return to the labour market. Interest in such services has been expressed by institutions and organisations working in another similar area. Under Theme I Support for Integration of Asylum Seekers there is a project funded that is aimed at asylum seekers and that unites all major governmental and non-governmental organisations working with asylum seekers. This project has studied the need of the target group and its possibilities to integrate into the labour market, organised initial Lithuanian language training for asylum seekers, provided legal, social and psychological consultations, developed a social and professional integration system based on methods of information of asylum seekers, staff working with asylum seekers and the public and methods of professional information and consultation of asylum seekers with a view to ensuring social and professional integration of asylum seekers. More tolerant attitudes of refugees and the public, easier integration into the public and better opportunities to find a job are promoted. About 3,000 target group members are involved in and are direct beneficiaries of EQUAL projects. Various measures have been implemented for overcoming negative stereotypes along with public awareness raising campaigns promoting openness of the labour market: round tables and discussions, open days and conferences are organised for local and national politicians, employers, stakeholder organisations and the broad public.

Social Report 2006–2007 47 2 C h a p t e r

2006 saw greater progress of activities designed directly for target groups of the projects (trainings and seminars) and the public and other stakeholder institutions and organisations (conferences and seminars). These activities were organised by more than two thirds of all development partnerships and as many as one third of them already organised discussions with local, regional and national politicians covering the issues of best practices, proven and tested problem solutions and possibilities to apply them in policy or in practice. Presentation of activities to stakeholder institutions and organisations with activities is an important objective of development partnerships before starting activities having impact on politics and practices as namely these organisations will become a target group during in Action 3. In December 2007 development partnerships will complete the implementation of Action 2 of the programme. To ensure continuity of results achieved during Action 2 and establishment of best practices, in June 2007 the third stage of the programme implementation will be launched and completed in June 2008. The main goal of Action 3 is to support EQUAL development partnerships in order to transfer the innovations and best practices created and tested during Action 2 to the public policies and to successfully implement them in practice. The goal is to combine efforts of stakeholder institutions and public groups to disseminate the experience and results of the EQUAL Action 2 in the public changing established stereotypes and combating discrimination and social exclusion. Proposals and documents will be drafted and programmes and projects that should condition real changes in policies and practices will be initiated. On 30 November 2006 the Support Foundation European Social Fund Agency and the MoSSL organised a conference Preparation for Action 3 of EQUAL and Impact on Policies and Practices which presented the draft strategy of impact of the European Communities Initiative EQUAL Programme for 2004–2006 on policies and practices. The conference was attended by all representatives of development partnerships who took active part in discussions about Action 3 and implementation measures thereof. The conference developed preliminary thematic networks – one of the activity implementation measures of Action 3. The meeting of the Monitoring Committee held on 12 December 2006 approved the strategy for impact on policies and practices and its implementation plan. In March 2007 a closed call for applications was published with regard to additional funding for implementation of activities in Action 3. All the 28 development partnerships submitted applications under the call published. Projects will further be implemented based on thematic priorities, innovations, partnership, provision of opportunities, transnational cooperation, equal opportunities for both genders and impact on policy and practice.

2.1.5.1. Programme Implementation Finance

In 2004–2006 the amount of assistance paid out was EUR 6,901,400 (including the amounts not eligible for the EC), i.e. 43.62% of the amount for 2004–2006 approved in the EQUAL CIP.

48 Social Report 2006–2007 labour market

Distribution of Funds by Themes

Approved Amount of assistance funds paid out Percentage of payment of Theme CIP funds, (including amounts not eligible for the the amount for 2004–2006 thou EUR EC), thou EUR approved in the CIP

A 10,917.08 4,597.32 42.11% G 3,164.37 1,414.67 44.71% I 474.66 211.37 44.53% Technical 1,265.75 678.04 53.57% assistance Total 15,821.86 6,901.40 43.62%

Data of the Ministry of Social Security and Labour Table 2.1.5.1-1

Distribution of Funds by Programme Actions

Of it distributed by Actions Approved CIP Agreements signed Funds allocated Theme Funds declared during funds, thou EUR during Action 2, thou for Action 3, Action 1, thou EUR EUR thou EUR A 10,917.08 451.02 8,906.12 1,559.94 G 3,164.37 139.5 2,650.26 374.61 I 474.66 16.95 410.12 47.59 Technical 1,265.75 1,265.75 assistance Total 15,821.86 660.29 13,007.07 2,154.50

Data of the Ministry of Social Security and Labour Table 2.1.5.1-2

2.1.6. European REFUGEE Fund

As a full-fledged member of the European Union (hereinafter referred to as the EU) Lithuania together with other EU Member States has started to implement the EU asylum policy the goal whereof is to consistently create a free, safe and fair space open to those who due to circumstances are forced to seek legitimate protection in the EU. The main tool of implementation of this policy is the European Refugee Fund (hereinafter referred to as the ERF). The goal of the ERF is to support and encourage efforts of the Member States to accept refugees and displaced persons and to take the responsibility for consequences of acceptance thereof taking

Social Report 2006–2007 49 2 C h a p t e r account of the European Communities legislation on these issues with co-financing of actions provided for in Decision 2004/904/EC of the Council of Europe of 2 December 2004. In Lithuania the ERF programme implementation is administrated by the Ministry of Social Security and Labour which on 14 July 2005 was appointed by Resolution No. 773 of the Government of the Republic of Lithuania Regarding Appointment of the Responsible Institution (Official Gazette, 2005, No. 87-3269) as the responsible institution. The functions of delegated body by the ERF are carried out by the Support Foundation European Social Fund Agency. Lithuania has the legislation for administrating the multiannual and annual programmes of the ERF match the requirements of the EU and national legislation. The responsible institution seeking to ensure proper and efficient selection of projects, evaluation process, project implementation supervision and use of funds approved the national rules based whereon the programme is administrated and projects are managed and controlled. For implementation of the ERF annual programme for 2005 in Lithuania, LTL 2.5 million were allocated, for the ERF annual programme for 2006 – LTL 2.6 million. The ERF funds in Lithuania are invested into the following activity areas: 1. reception conditions and asylum procedures; 2. integration of foreigners having granted asylum in the Republic of Lithuania; 3. voluntary return.

2.1.6.1. Improvement of Reception Conditions and Asylum Procedures

The purpose of activities is to ensure efficient provision of asylum to refugees, citizens of third countries nationals (i.e. non-EU) and persons without citizenship who apply for some protection form in Lithuania. In order to implement this goal, the following objectives are provided for: 1. To create conditions for accommodation at border control posts at the external EU borders of the Republic of Lithuania and in county police departments. This also covers medical aid offices for persons who are in need of urgent medical assistance and conditions for legal counselling, representative offices of the United Nations High Commis- sioner for Refugees, etc.; 2. To improve the infrastructure of the centre for registration of foreigners and quality of services, particularly focusing on the situation of women, children and other refugees with special needs; 3. To improve working conditions of institutions directly implementing the asylum provision procedure in the Republic of Lithuania (mobility conditions, interview techniques, etc.); 4. To improve the quality of decisions made by institutions responsible for implementation of the asylum provision procedure in the Republic of Lithuania.

The Republic of Lithuania has two centres – the Refugee Reception Center and the Foreign- ers Registration Center – the infrastructure whereof must be expanded, improved and adapted to

50 Social Report 2006–2007 labour market persons (citizens of third countries or persons without citizenship) residing in these centres. This is one of the key conditions supporting the importance of this activity and its necessity in our society. One of the most relevant actions at the time eligible for funding related to improvement of reception conditions and the asylum provision procedure is development of the proper infrastructure of accommodation for migrants at the Foreigners Registration Center and border control posts and assurance of provision of corresponding services – material, medical and psychological support. It is equally important to provide and organise: – social support, information and help in taking care of administrative formalities; – legal assistance; – education and training in the Lithuanian language; – involvement in the activities of the local community.

2.1.6.2. Integration of Foreigners Having Granted Asylum in the Republic of Lithuania

The purpose of the activity is successful integration of foreigners having granted asylum in the Republic of Lithuania through employment, education and training, health care, accommodation, community education and promotion of social contacts of refugees with the local community. Priority is given to satisfaction of needs of persons whose social integration is no longer supported by the state but who are still vulnerable and need help (minors without adults, pregnant women, single mothers and fathers with small children, large families, the disabled, the elderly, injured persons, etc.). In order to implement this goal, the following objectives are provided for: 1. To enhance competitiveness of foreigners having granted asylum in the Republic of Lithuania on the labour market; 2. To enhance social skills of foreigners having granted asylum in the Republic of Lithua- nia; 3. To improve quality of services provided to foreigners having granted asylum taking account of specific hurting experience of persons having granted asylum and implications of age, damage and culture; 4. To promote involvement of local communities in the integration process and social communication between foreigners having granted asylum and local residents.

Integration activities are performed by the Refugee Reception Center, municipalities and other state or non-governmental institutions of the Republic of Lithuania. Integration of foreigners having granted asylum is a process of adaptation of a specific person (family) in an alien environment during which he/she receives educational, medical, social and other services according to their needs in order to help them to join the community and the labour market. At the Refugee Reception Center state aid for integration of foreigners having granted asylum is provided from the state budget of the Republic of Lithuania. However the ERF funds are also used

Social Report 2006–2007 51 2 C h a p t e r to ensure that quality and diversity of services provided would guarantee proper and full integration process. Support for foreigners granted the refugee status and foreigners granted additional protection is started at the Refugee Reception Center and later continued in the territory of the municipality using the funds of the state budget allocated for integration support and the ERF. Support for integration of foreigners granted temporary protection is given only at the above Centre. In implementing the project under the ERF (2005) annual programme, the Association Wom- en’s Information Centre performed a study Needs of Refugees and Their Families in the Republic of Lithuania carried out by the Social Economics Institute. The object of the study were the needs of refugees and their families emerging in the process of integration into the Lithuanian society. People interviewed during the study have lived in the Republic of Lithuania from 6 months up to 15 years. According to the study results, the key needs identified are as follows: – to guarantee good working conditions; – to organise training in the Lithuanian language (customised lessons, i.e. prepare proper programmes and dictionaries); – to provide support in finding proper accommodation; – to ensure accessibility of the health care system, etc.

2.1.6.3. Voluntary Return

The purpose of the activity is to create and strengthen voluntary return programmes for persons requesting asylum. In order to implement this goal, the following objectives are provided for: 1. To improve information and consultation before leaving by applying various measures proving that voluntary return is a decision of the asylum policy being implemented; 2. To improve the logistic network that would cover return to the homeland and the trip to the final destination in its territory; 3. To ensure the procedure of dignified and painless return home and follow-up upon return to the country of origin.

At present Vilnius Office of the International Organisation for Migration (hereinafter referred to as the IOM) is the only organisation in Lithuania having long experience in implementing voluntary return projects. Vilnius Office of the IOM has been organising work with migrants since 1998. During these years a cooperation network covering all stakeholder institutions (centres for reception of foreigners, municipal institutions, the Migration Department under the MoI, border control institutions, etc.) has been developed. Both migrants and various organisations in Lithuania know the activities of the IOM and constantly contact the organisation requesting it to help migrants willing voluntarily to come back to their homeland. In Lithuania the largest share of asylum seekers is Chechen-origin citizens of Russia. They are normally granted temporary protection and state integration support (for one year). Upon the end of this period such persons may find themselves in a complicated situation: although their residence

52 Social Report 2006–2007 labour market permit is renewed, the state will not provide financial aid any longer. Such persons who do not find a job and have no source of living can express their wish to return to their homeland but do not have means for that, the ERF support for such persons willing to return voluntarily gives them freedom and right to make their choice.

2.1.6.4. Beneficiaries and Representatives of the Target Group

In order to receive support, the applicant must be a public legal entity registered and acting in the Republic of Lithuania or a public legal entity registration whereof is not mandatory in accordance with the national legislation of the Republic of Lithuania. Project authors submitting applications for the ERF funding must not forget that this is work with a specific target group which consists of: 1. A citizen of the third country or a person without citizenship having a status defined in the Geneva Convention of 28 July 1951 holding a residence permit as a refugee in one of the Member States. 2. A citizen of the third country or a person without citizenship using additional protection as defined in Directive 2004/83/EC. 3. A citizen of the third country or a person without citizenship having applied for one of the protection forms identified in paragraphs 1 and 2. 4. A citizen of the third country or a person without citizenship using temporary protection as defined in Directive 2001/55/EC.

2.1.6.5. Project Selection under ERF Annual Programmes for 2005 and 2006

Pursuant to the Rules for Submission, Evaluation and Selection of Projects Financed in Imple- mentation of the European Refugee Fund Programmes in Lithuania approved by Order of the Minis- ter of Social Security and Labour of the Republic of Lithuania of 16 May 2006 (Official Gazette, 20 May 2006, No. 57-2046; No. 82-3283), the Ministry of Social Security and Labour together with the Support Foundation European Social Fund Agency published a call for applications under the ERF annual programme for 2005. 7 support contracts were signed on 8 August 2006 (LTL 1.9 million). The call for applications under the ERF annual programme for 2006 was published on 19 October 2006. Contracts with 5 project implementers were signed on 21 December 2006 (LTL 2.6 million). In September 2007 contracts with future project implementers under the ERF annual programme for 2007 are to be signed. Starting from 1 January 2008, the third ERF programming period will start during which the ERF programme will be supplemented with new activity groups.

Social Report 2006–2007 53 2 C h a p t e r

2.2. REGULATION OF LABOUR RELATIONS

2.2.1. LABOUR RELATIONS

2.2.1.1. Collective Labour Relations

The policy of labour relations did not undergo any specific changes in 2006. In implementing the requirements of Council Directive 2003/72/EC of 22 July 2003 supplementing the Statute for a European Cooperative Society with regard to the involvement of employees, the Republic of Lithuania Law on the Involvement of Employees in European Cooperative Societies was enacted in that year. The aim of the Law is to establish the involvement of employees in European Cooperative Societies and to make special provisions in order to ensure that the establishment of a European Co- operative Society does not entail the disappearance or reduction of practices of the involvement of employees of legal entities, natural persons and their subdivisions participating in the establishment of a European Cooperative Society. Within the framework of the development of tripartite cooperation, by decision of 16 January 2007 (Minutes No 101), the Tripartite Council approved a Plan of Measures for the Development of Social Partnership of the Government of the Republic of Lithuania, trade unions and employers’ organisations for 2007–2008. The Plan contains a commitment to improve the system and the legal framework of social partnership, and collective labour relations. It also provides for measures that will facilitate the dialogue among social partners. As already mentioned in the Social Report 2005–2006, the first sectoral collective agreement was registered by the Ministry of Social Security and Labour in 2005. In 2006, no collective agreements were registered on the national, sectoral or territorial level. The second sectoral collective agreement was the agreement between the Lithuanian Journalist Union and the National Regional and Local Newspaper Publishers Association, which was signed and registered in 2007. According to the existing provisions of the Labour Code, collective agreements of the undertaking need not be registered. In 2006, the officials of the State Labour Inspectorate carried out inspections of 18 872 undertakings and their structural subdivisions, which revealed that 1 338 enterprises had trade unions registered, in 82 enterprises the functions of representation and protection of employees were delegated to sectoral trade unions, 2 688 enterprises either had work councils, or the functions of work councils were implemented by the employees’ representative. In 2006, a total of 1 157 collective agreements were signed.

Republic of Lithuania Law on the Involvement of Employees in European Cooperative Societies (Official Gazette, 2006, No 141-5387). Posted on the website of the Tripartite Council of the Republic of Lithuania at www.lrtt.lt. Data from the State Labour Inspectorate.

54 Social Report 2006–2007 labour market

2.2.1.2. Individual Labour Relations

In 2006, within the framework of improving legislation governing labour relations, the Law Amending Article 101 of the Labour Code was enacted, which makes a provision that the Govern- ment of the Republic of Lithuania shall define the list of competitive positions and competition procedures not only for public and municipal enterprises, but also public and municipal institutions funded from the state and municipal budget and the State Social Insurance Fund budget and other funds set up by the state, except for institutions where competitive positions and competition procedures are established by special legislation. The Labour Code was also supplemented with the provision on a paternity leave, which is granted to male employees for a period from the birth of the child until the child gets one month old. A male employee is entitled to a benefit provided for in the Law on Sickness and Maternity Social Insurance, if the father of the child is married to the mother of the child. After declaration of invalidity of paragraph 2 of Article 98 of the Labour Code, the Lithua- nian legal framework was left without a valid legal act establishing the concept of voluntary works and regulating the legal relationship arising from the performance of such works. Before the effective date of this Law, paragraph 2 of Article 98 of the Labour Code established that illegal work shall not include assistance (help) and voluntary works, and the Government was granted the authority to define the procedure and conditions of performance of voluntary works. In view of the fact that the performance of voluntary works gives rise to civil legal relations, voluntary works are currently subject to the provisions of the Civil Code of the Republic of Lithuania. Amendments to certain Articles of the Code of Administrative Offences of the Republic of Lithuania were adopted, including those supplementing Article 41 of the Code to the effect that a body (official) having imposed an administrative sanction for offences provided for in Articles 41(3), 41(4) and 41(5) of the Code has to make public the fact of imposing the sanction via mass media, in compliance with the requirements for legal protection of personal data, also the requirements for the protection of public, official, commercial, occupational and other secrets, and other restrictions and prohibitions laid down by law. The above supplementing of the Law is aimed at imposing discipline on employers, so that they are interested in their positive image, and thus act in compliance with the provisions of labour laws.

Law Amending Article 101 of the Labour Code of the Republic of Lithuania (Official Gazette, 2006, No 82-3258). Law Amending Articles 170 and 178 of the Labour Code and Supplementing the Code with Article 179(1) (Official Gazette, 2006, No 72-2677). Law Amending Article 98 of the Labour Code (Official Gazette, 2006, No 132-4989). Law Amending and Supplementing Articles 5, 41, 51(3), 51(12), 55, 58, 70, 76, 77, 77(1), 81, 82, 84(1), 87, 89(1), 91, 99(8), 183, 188(4), 188(9), 189(1), 214(3), 221, 224, 225, 232(1), 237, 242, 244, 246(2), 259(1), 262, 263, 268 and 320 of the Code of Admin- istrative Offences and Supplementing the Code with Articles 42(4), 51(18), 51(19), 51(20), 51(21), 51(22), 56(2), 58(1), 78(1), 89(2), 99(9), 99(10), 148, 173(20) and 173(21) (Official Gazette, 2006, No 73-2759).

Social Report 2006–2007 55 2 C h a p t e r

2.2.2. remuneration for work

2.2.2.1. Increasing of Wage in 2006

Effective 1 September 2006, the Government increased the rate of remuneration for teachers, tutors and other educational staff by 12.6 per cent on the average. As of 1 October 2006, the Government increased the maximum coefficients of basic salaries for cultural and artistic staff, social workers and employees of budgetary institutions subordinate to the Ministry of Environment and the Ministry of Agriculture, as well as other specialists (bookkeep- ers, computer specialists, economists, office clerks, workers, etc.) employed with budgetary institutions and organisations active in the fields referred to above. Their average wage increased by 14 per cent on the average. Additional funds have also been allocated from the state budget towards increasing the rate of wage for librarians by 20 per cent as of 1 April 2006. On proposal of the Tripartite Council of the Republic of Lithuania, effective 1 July 2006, the Government fixed the minimum monthly wage for employees working under a contract of employment at LTL 600, and the hourly rate of minimum wage at LTL 3.6510 (the minimum monthly wage increased by more than 9 per cent). According to the data from the Department of Statistics,11 compared with October 2005, the share of full-time and part-time employees, not including those in sole proprietorships, who are paid the minimum monthly wage or less in October 2006, decreased by 2.7 per cent to 14.6 per cent (17.3 per cent in October 2005). Nearly half of those employees worked part-time. The number of employees in the above group declined owing to a rapid increase of wages in the previous year and a decline in the number of part-time employees. The share of full-time employees, who receive minimum monthly wage, in the total number of full-time employees in the country’s economy made up 8.5 per cent (10.3 per cent in 2005), 5.0 per cent in the public sector (5.2 per cent in 2005), and 10.7 per cent in the private sector (13.9 per cent in 2005). The largest share of full-time employees receiving a minimum monthly wage was in the hotels and restaurants – 20.4 per cent; wholesale and retail sale, repair of motor vehicles and motorcycles, repair of personal and household articles – 13.0 per cent; other utility, social and personal services – 12.8 per cent of the total number of full-time employees working in those fields. According to the data from the Department of Statistics, its is apparent that in October 2006, the number of full-time employees earning more than 1 200 litas, increased in the country’s economy

Republic of Lithuania Government Resolution No 643 of 29 June 2006 on the Amendment of Republic of Lithuania Government Resolution No 511 of 8 July 1993 on the Improvement of the Procedure for Employee Remuneration in Budgetary Institutions and Organisations (Official Gazette, 2006, No 73-2787). Republic of Lithuania Government Resolution No 954 of 27 September 2006 on the Amendment of Republic of Lithuania Government Resolution No 511 of 8 July 1993 on the Improvement of the Procedure for Employee Remu- neration in Budgetary Institutions and Organisations (Official Gazette, 2006, No 105-4006). 10 Resolution No. 298 of the Government of the Republic of Lithuania of 27 March 2006 on Increasing the Minimum Wage (Official Gazette, 2006, No. 35-1251). 11 Information from the Department of Statistics of 3 May 2007 on the number of employees by the size of wage in October 2006.

56 Social Report 2006–2007 labour market to 56.1 per cent (from 45.6 per cent in October 2005), to 66.2 per cent in the public sector (from 55.0 per cent in 2005), and to 49.6 per cent the private sector (from 39.2 per cent in October 2005). The minimum monthly wage of 430 litas was used to calculate the basic salary of state politicians, judges, public officials, military officers and civil servants. As of 8 August 2006, the effective date of the Law Amending the Law on Civil Service and the Law on Remuneration for Work of State Poli- ticians, Judges and Public Officials,12 the basic salary of state politicians, judges and public officials is calculated according to the main rate of the basic salary. Until the end of 2006, the main rate of basic salary amounted to 430 litas. On proposal of the Government and taking into account proposals from organisations representing state politicians, judges and public officials and trade unions representing civil servants, the average annual inflation in the previous year and the impact of other factors affect- ing the rate and fluctuation of the average wage in the public sector, the Seimas of the Republic of Lithuania increased the main rate of the basic salary for 2007 and subsequent years to 442 litas.13 There was a rapid increase in the average monthly wage in the country. According to the preliminary data from the Department of Statistics under the Government of the Republic of Lithuania, in 2006, the average monthly gross wage in Lithuania amounted to 1 500.2 litas, and compared with 2005, increased by 17.6 per cent. The average net wage increased by 19.6 per cent to 1 096 litas. A faster rise in the net wage resulted from the increased minimum monthly wage and the reduced rate of personal income tax. In 2006, the largest increase of wage was in construction (30.9 per cent), health care and social sphere (29.7 per cent), trade (20 per cent), manufacturing (17.1 per cent) and education (15.8 per cent).

2.2.2.2. Increasing of Wage in 2007

Effective 1 January 2007, basic salary coefficients for health care specialists working in budgetary institutions were increased by 20 per cent on the average.14 Additional funds of 18.6 million litas were allocated from the state budget for that purpose. Plans are to increase remuneration for researchers and lecturers at research and educational institutions beginning 1 July 2007.15 35.6 million litas will be allocated from the state budget for that purpose. In 2007, the implementation of the Programme of Implementing the New Teacher Remu- neration System continued.16 The Programme provides that in 2007, the rate of remuneration for

12 Law Amending the Law on Civil Service and the Law on Remuneration for Work of State Politicians, Judges and Public Officials (Official Gazette, 2006, No. 87-3400). 13 Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for 2007 (Official Gazette, 2006, No. 138-5267). 14 Republic of Lithuania Government Resolution No 1302 of 20 December 2006 on the Amendment of Republic of Lithuania Government Resolution No 511 of 8 July 1993 on the Improvement of the Procedure for Employee Remu- neration in Budgetary Institutions and Organisations (Official Gazette, 2006, No 140-5353). 15 Government of the Republic of Lithuania Resolution No 337 of 4 April 2007 on the Approval of the Description of Conditions of Remuneration for Work of Heads and Deputy Heads of Research and Study Institutions, Heads and Deputy Heads of Academic Divisions, Research Secretaries, Scientific Workers, Other Researchers and Lecturers (Of- ficial Gazette, 2007, No 42-1582). 16 Government of the Republic of Lithuania Resolution No 1231 of 30 September 2004 on the Approval of the Pro- gramme of Implementing the New Teacher Remuneration System (Official Gazette, 2004, No 146-6310).

Social Report 2006–2007 57 2 C h a p t e r teachers should be increased for that year by 9.6 per cent, for other employees involved in the process of education by 4.4 per cent. Almost 73 million litas will be allocated for that purpose. By Order of the Minister of Education,17 effective 1 January 2007, all teachers will be entitled to one more paid hour per week in respect of additional work of 18 contact hours; basic salary coefficients were increased for special educators (including educators of vocational training centres financed from the budget); pre-primary teachers and pre-school education teachers will be entitled to additional two paid hours per week in respect of methodological activities (a total of three hours). According to the data from the specialists of the Ministry of Education and Science, as a result, the wage of those employees will rise by 4.4 per cent. In implementing the Government Programme for 2006–2008, pursuant to Article 187, paragraph 1 of the Labour Code of the Republic of Lithuania, and taking into account the proposal from the Tripartite Council of the Republic of Lithuania of 15 May 2007, the Government approved the minimum monthly wage of 700 litas, effective 1 July 200718. 35.4 million litas will be allocated from the state budget for that purpose. The Ministry of Social Security and Labour intends to propose that the Ministry of Finance should explore financial opportunities to increase basic salary coefficients for employees working under employment contracts in municipalities and other governing institutions in the second half- year of 2007.

2.2.2.3. Wage Guarantees for Employees of Undertakings in Bankruptcy or Bankrupt Undertakings

In implementing Council Directive 80/987/EC on the approximation of the laws of Members States relating to the protection of employees in the event of the insolvency of their employer, the Law on the Guarantee Fund was enacted on 12 September 2000, with effect as of 1 October 2000. Entitled to Guarantee Fund payments are all employees of enterprises in bankruptcy or bankrupt enterprises, whose employment with those enterprises has been terminated or still continues, provided that the enterprise has liabilities to them. Entitled to payments from the Fund are also former employees of enterprises liquidated by reason of bankruptcy after entry into force of this Law, provided that the enterprise has liabilities to them. The Law defines the types of employment related compensatory payments from the Guaran- tee Fund. These are payments relating to wage liability, monetary compensation for unused leave, severance pay, idle time, compensation for damage caused by accidents at work or occupational disease. Pursuant to the provisions of the Law, the Government of the Republic of Lithuania determined maximum rates of such payments.19 The Guarantee Fund started its actual activities in August 2001, after all the necessary subordinate legal acts were adopted.

17 Order of the Minister of Education and Science of the Republic of Lithuania No ISAK-2408 of 20 December 2006 on the Approval of the Description of Procedure for Work Remuneration of Employees of Educational Institutions and Educational Staff of Other Agencies (Official Gazette, 2006, No 140-5378). 18 Government of the Republic of Lithuania Resolution No. 543 of 6 June 2007 on Increasing the Minimum Wage (Of- ficial Gazette, 2007, No. 65-2525). 19 Government of the Republic of Lithuania Resolution No 2103 of 31 December 2002 on Payments from the Guaran- tee Fund (Official Gazette, 2003, No 2-43).

58 Social Report 2006–2007 labour market

Data about payments allocated from the Guarantee Fund in the period from 15 March 2001 to 31 December 2006 are provided in Table 2.2.2.3-1, and data about resources allocated from the Guarantee Fund in 2006, broken down by the former activities of the enterprises, are provided in Table 2.2.2.3-2.20

Amounts transferred to the Guarantee Fund account (LTL million)

Balance of Total amount funds at the Contributions Privatisation State budget Recovered in the Year beginning of of enterprises Fund resources funds funds Guarantee the year Fund 2001 0.0 12.1 21.4 - 4.4 37.9 2002 12.6 18.1 - 3.0 1.6 35.3 2003 13.7 19.7 - 2.0 1.8 37.2 2004 11.9 22.1 - 2.0 2.4 38.4 2005 22.9 25.4 - - 8.6 56.9 2006 40.0 32.1 - - 2.2 74.3

Data from the Guarantee Fund Table 2.2.2.3-1

Allocations in 2006 to enterprises from the Guarantee Fund towards payments to employees, by type of the former activities

Number of Number of Allocations

No. applicant employees entitled Type of activity enterprises to allocations LTL thousand per cent 1 The whole industry 88 6893 15978.2 67.8 2 Wholesale and retail sale 158 1606 2910.0 12.3 3 Construction 30 1124 1871.9 7.9 Agriculture, hunting and 4 13 40 53.9 0.2 forestry

Transport, warehousing 5 26 301 772.9 3.3 and communications

6 Other 64 1176 2001.4 8.5 Total 379 11140 23588.3 100.0

Data from the Guarantee Fund Table 2.2.2.3-2

In 2006, 13 meetings of the Council of the Fund were held, where 408 applications from 379 enterprises were discussed and granted. On the basis of resolutions of the Council, liabilities of enterprises in respect of wage and other employment related benefits were partially satisfied from the

20 For more detailed information on the activities of the Guarantee Fund visit the website of the Guarantee Fund at http://www.socmin.lt/gf/

Social Report 2006–2007 59 2 C h a p t e r

Guarantee Fund to 11 140 employees, which accounted for 68.3 per cent of the total wage liability. The average payment per employee amounted to 2 117 litas. Compared with 2005, the rate of payment increased by 36 per cent. In the reference year the Fund had 74.3 million litas, including a balance of funds accumulated in 2005 amounting to 40 million litas; contributions of enterprises of 32.1 million litas, which increased by 6.7 million litas (26.4 per cent) compared with 2005, and financial assistance funds repaid by enterprises amounting to 2.2 million litas. In 2006, with a view to approximating the Law on Guarantee Fund with the provisions of Council Directive 80/987/EEC of 20 October 1980 on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer and Directive 2002/74/EC of the European Parliament and of the Council of 23 September 2002 amending Council Directive 80/987/EEC, the Law on Guarantee Fund was supplemented with a provision21 to the effect that the maximum amount of wage liability payments shall be limited not to three minimum monthly wages, but three monthly wages, paid in respect of three consecutive months in the reference period, in which the wage was paid until the beginning of bankruptcy.

2.2.3. compliance with labour laws

In 2006, 12 778 inspections were carried out for compliance with labour laws, among which 29 758 violations were revealed in 8 130 cases. The total number of violations within the current year declined by 2.9 per cent; however, it was by 9.9 per cent higher than in 2001. Data on labour law violations in 2001-2006 are provided in Figure 2.2.3-1.

Number of Labour Law Violations in 2001-2006 (in thousand)

Data from the State Labour Inspectorate Figure 2.2.3-1

21 Law Amending and Supplementing Articles 1, 3, 4, 5, 6, 10 and 13 and Amending Annex to the Law on Guarantee Fund (Official Gazette, 2006, No 41-1460).

60 Social Report 2006–2007 labour market

The following violations were identified in the previous years: 3 558 violations related to concluding employment contracts, 3 875 related to remuneration for work, 7 862 related to the regulation of working time and rest time, and 4 555 related to the accounting of working time. Information about the nature of identified violations of labour laws in 2004–2006 is provided in Figure 2.2.3-2.

Nature of Identified Labour Law Violations in 2004–2006 (per cent)

Data from the State Labour Inspectorate Figure 2.2.3-2

Illegal work. The summarized data for 2006 from all institutions exercising control over and implementing prevention of illegal work (the Police Department under the Ministry of the Interior, the State Tax Inspectorate under the Ministry of Finance, Financial Crime Investigation Service under the Ministry of the Interior, and the State Labour Inspectorate under the Ministry of Social Security and Labour), by type of illegal activity falling within the competence of each institution (illegal work, activities conducted without a business certificate, activities without having registered a company, without a licence or other illegal activities) are as follows: • 1 249 illegal workers were identified (working without a contact of employment); • 395 cases were identified, where activities were pursued without a business certificate; • 2 748 cases were identified, where activities were pursued without having registered a company, without a license or in any other unlawful manner.

The institutions drew up a total of 3 636 records of administrative offences and instituted 685 pre-trial investigations. The results of performance of institutions are provided in Figure 2.2.3-3.

Social Report 2006–2007 61 2 C h a p t e r

Illegal Workers Identified in 2006

Data from the State Labour Inspectorate Figure 2.2.3-3

In 2006, within the framework of prevention and control over illegal work, the State Labour Inspectorate carried out 1986 inspections for illegal work. The inspections revealed 875 illegal workers, including 23 persons under age of 18 and 7 foreigners. In 2006, the Inspectorate drew up 373 records of administrative offences in respect of 457 illegal workers under Article 41.3 (Illegal Work) of the Code of Administrative Offences.

The analysis of the number of illegal workers identified in 2006 by economic activity sector (based on the results of inspection of the State Labour Inspectorate) reveals that the largest number of cases of illegal work was identified in the following economic activity sectors: construction – 32.11 per cent, manufacture of wearing apparel – 9.03 per cent, agriculture – 5.6 per cent, manufacture of wood and products of wood – 2.63 per cent, automotive repair shops – 8.57 percent, wholesale and retail sale – 6.17 per cent, and hotels and restaurants – 5.03 per cent (see Figure 2.2.3-4).

62 Social Report 2006–2007 labour market

Number of illegal workers identified in 2006, by type of economic activity (per cent, according to the data of inspection of the SLI)

Data from the State Labour Inspectorate Figure 2.2.3-4

It is noteworthy that compared with 2005, there was a decline in the number of identified illegal workers in construction (39.13 per cent in 2005), agriculture (8.13 per cent in 2005), and wholesale and retail sale (7.6 per cent in 2005), whereas the number of illegal workers considerably increased in sewing companies from 2.6 per cent in 2005 to 9.03 per cent in 2006, car repair shops from 6.53 per cent to 8.57 per cent, and forestry from 1.73 per cent to 3.77 per cent. In other sectors there was a slight change in the relative indicators of the cases of illegal work.

2.2.4. SAFETY AND HEALTH AT WORK

Safety and health at work involves all preventive measures intended for retention of working capacity, health, and life of employees. These measures are used or planned in all stages of company’s operation in order to safeguard employees from occupational risk or reduce this risk to the lowest possible extent.22 The national status of safety and health at work for 2006 is described below as well as the improvement of policy in the area that took place during 2006–2007, and measures taken for improvement of safety and health at work during 2006–2007.

22 Law on Safety and Health of Employees No. IX-1672 (Offcial Gazette., 2003, No. 70-3170)

Social Report 2006–2007 63 2 C h a p t e r

2.2.4.1. Safety and Health at work in Undertakings in 2006

Work conditions in companies As per data of the State Enterprise Centre of Registers and the State Enterprise Agricultural Information and Rural Business Centre, on 1 January 2007 there were 171 thousand of economic operators in Lithuania. According to data of the report for 2006 issued by the State Labour Inspectorate of the Re- public of Lithuania, in 2006 inspectors delivered 10.5 thousand inspections on safety and health at work issues in various undertakings and discovered 50.7 thousand infringements of legal safety and health requirements in 8.5 thousand enterprises. The infringements were identified in the following areas: • 67 percent of infringements were related to infringements of safe work organization; • 33 percent of infringements were related to infringements of safe technical requirements. Responding to the aforementioned infringements, inspectors of the State Labour Inspectorate of the Republic of Lithuania have issued requirements to eliminate the shortcomings, meanwhile in 301 cases it suspended work and prohibited utilization of work-related devices. It was defined that 148 thousand of employees were working in 527 undertakings under the influence of harmful environmental factors, which exceeded the limits set out in regulatory enactments pertaining to safety and health at work.

Accidents at Work In 2006, Lithuanian enterprises encountered: • 108 fatal; • 226 serious; • 3085 light accidents at work related to work (hereinafter – accidents at work). 17.6 serious and 8.4 fatal accidents at work fall for 100 thousand of working people. In 2006, most fatal accidents at work (44 percent), serious accidents at work (62 percent), and light accidents at work (70 percent) occurred due to infringements of requirements of regulatory enactments pertaining to safety and health at work. While analysing dynamics of serious and fatal accidents at work that occurred during the period of 2001-2006 (Picture No. 2.2.4.1-1), it may be observed that the number of both serious and fatal accidents at work has a tendency to increase, although – in comparison to 2005 – in 2006, the number of serious and fatal accidents at work had some decrease. The greatest number of fatal accidents at work over the period of 6 years (9.8 accidents per 100 thousand of employees) occurred in 2003, and the greatest number of serious accidents – in 2005 (17.7 accidents per 100 thousand of employees). The greatest amount of fatal and serious accidents in 2006 occurred in construction companies – respectively 31 and 27 percent. Also, a big number of serious and fatal accidents at work occurred in processing companies and transport, warehousing, and telecommunication enterprises, i.e. 12-30 percent. In 2006, as much as one third (34 percent) of fatal accidents at work occurred with drivers and operators of moving equipment, and one fourth (26 percent) of serious accidents at work occurred

64 Social Report 2006–2007 labour market with mining and construction workers. Approximately half of all accidents at work (45 percent of light, 54 percent of serious, and 47 percent of fatal accidents) occurred with employees who’s qualifying period amounted to no more than one year.

Number of accidents at work per 100.000 employees 2001-2006

Data from the report of the State Labour Inspectorate of the Republic of Lithuania for 2006 Picture No. 2.2.4.1-1

Morbidity of occupational diseases The State Register of Occupational Diseases for 2006 has registered 1447 cases of occupational diseases among 1031 people. Men were diagnosed with 82 percent and women with 18 percent of all cases of diseases. 80 percent of occupational diseases were diagnosed among people over 55 years of age; approximately half (46 percent) of occupational diseases were diagnosed among people of 55–64 years of age, and one third (34 percent) of occupational diseases were diagnosed among people of 65 years of age and older. Since 2004, the number of occupational diseases diagnosed among people of pensionable age is increasing. Comparing the cases of occupational diseases and the number of diseased people for 1998– 2006 (Picture No. 2.2.4.1-2), it is obvious that the number of occupational diseases during the period 1998–2001 decreased from 618 to 570, and in 2002–2006 this number has been increasing and in 2006 it amounted to 1447 cases. The number of people diagnosed with occupational diseases was respectively decreasing and increasing. The number of occupational diseases is increasing with growing number of people who apply to be diagnosed with an occupational disease. Besides, as inspections delivered by the State Labour Inspectorate in 2006 show, the number of people working under influence of harmful environmental factors, which exceeded the limits set out in regulatory enactments pertaining to safety and health of employees.

Social Report 2006–2007 65 2 C h a p t e r

Number of occupational diseases and ill people 1998 – 2006

Data from the report of the State Labour Inspectorate of the Republic of Lithuania for 2006 Picture No. 2.2.4.1-2

In 2006, most of the following conditions were registered: • Cases of diseases pertaining to connective tissue and skeletal-muscular system (44 percent); • auricular disease cases (30 percent); • nervous system disease cases (24 percent). 81 percent of registered occupational disease causes were physical factors. 71 percent of occupational diseases were diagnosed among operators and fitters of equipment and machinery; 46 percent among people whose qualifying period is 31–40 years. Thus, occupational diseases are mostly induced by long-term noise as well as work with vibrating equipment.

2.2.4.2. Improvement of Legal Framework during 2006–2007

In the second half of 2006, upon assessing application of general provisions of Manual Han- dling of Loads, new edition of this legal act – Employee Safety and Health Requirements Pertaining to Manual Handling of Loads – was drafted and approved. In order to fully harmonize provisions of the Law on Safety and Health at work with provisions of the Council Directive 89/391/EEC on the introduction of measures to encourage improvements in the safety and health of workers at work, provisions of the Law of the Republic of Lithuania on Social Integration of Disabled, and the Law of the Republic of Lithuania on Procedure for Prepa- ration of Laws and Regulatory Enactments, as well as taking into consideration the law application experience as well as safety and health at work condition in undertakings, a draft amendment of the Law on Safety and Health at work has been prepared, which was discussed in the Parliament in the Spring Session of 2007.

66 Social Report 2006–2007 labour market

In 2007, while implementing the European Parliament and Council Directive of 5 April 2006 on minimum requirements for the protection of workers from risks to their health and safety arising, or likely to arise, from exposure to physical factors (optical radiation) during their work (the nine- teenth individual directive as defined in Part 1 of Article 16 of the Framework Directive 89/391/EEC 16), Provisions on Employee Protection from Artificial Optical Radiation Risk are drafted.

2.2.4.3. Measures for Improvement of Safety and Health at work Condition

In order to reduce the number of accidents at work and incidence of occupational diseases, a research was made on Design of a Computerized System for Collection of Physiological Parameters for Dispatchers, and draft visual aids were prepared for education institution training in construction vocations, as well as publications were issued: • Methodological recommendations on testing and assessing safety and health at work exposed to risk arising due to electromagnetic fields; • Methodological recommendations on how to adapt work places and work and leisure regime for older people; • Review Regarding Impact of Sleeping Disorders on Health and Accidents at Work. Active participation is taken in information campaigns organized by the European Agency for Safety and Health at Work: • In 2006, “Methodological recommendations for risk assessment in school of secondary education”, a booklet “Adventures in a village. Look at what is threatening you!” were published and a conference on the topic of safety and health protection of young people at work was organized for the information campaign entitled “Safe Start”; • In 2006, a good practice guide “Reduction of threats related asbestos or prevention at work related to (or which might be related) to exposure to asbestos” was issued for the information campaign entitled “Asbestos”. Also, there was a video clip for employers, employees and labour inspectors created on the treats of asbestos on health, and a conference entitled “Threats of Asbestos on Health” was organized for the benefit of social partners; • In 2007, practical recommendations for employees and employers were issued on “How to avoid occupational damages on muscles ad spinal cord while handling loads and cleaning premises” were issued for the information campaign on the topic of “Muscular and Skeletal Damages”. While implementing the Community strategy for 2007–2012 on safety and health at work and improving quality of work and efficiency, a national strategy on safety and health at work is planned to the drafted in 2007.

2.2.4.4. Conclusions

In 2006, labour inspectors in inspected undertakings have found 50 thousand of infringements pertaining to safety and health at work. The inspected undertakings had 15 thousand employees working under conditions where harmful environmental factors exceeded the permissible limits.

Social Report 2006–2007 67 2 C h a p t e r

The number of infringements detected – in comparison to the year 2004 (53 thousand) and 2005 (52 thousand) – had some decrease, and the number of employees working under conditions where harmful environmental factors exceeded the permissible limits, has increased. Considering the fact that in 2006, there were approx. 1.5 times less inspections than in 2004 and 2005, the number of infringements discovered in undertakings has increased, i.e. labour inspectors have discovered more infringements during their visits. Although in 2006 the number of serious and fatal accidents at work per 100 thousand of workers was less than in 2005, the general trend remains the same, i.e. the number of serious and fatal accidents at work per 100 thousand workers continues increasing. The number of occupational diseases registered in the state continues increasing since 2002. It varies in proportion to the number of people that get ill with occupational diseases. Thus, we may draw a conclusion that the number of people that apply to be diagnosed with an occupational diseases in increasing. Besides, as per inspections delivered by the State Labour Inspectorate in 2006, the number of employees working under the influence of harmful environmental factors, which exceeded the limits set out in regulatory enactments pertaining to safety and health at work. Thus, there is a possibility that the number of occupational diseases would not be reducing in the future either. In the 2nd half of the 2006 and the first half of 2007, further improvements were introduced on the legal framework pertaining to safety and health at work transposing provisions of directives into national legislation. Also, legal, scientific research, and information instruments regarding occupational damage prevention aimed at improving the situation of safety and health at work in the state. In 2007, it is anticipated to draft the National Strategy for Safety and Health at work.

2.2.5. TECHNICAL SAFETY

2.2.5.1. Safety at Work with Potentially Hazardous Equipment

In the beginning of 2006, the Government of the Republic of Lithuania issued a resolution, which amended Provisions on Potentially Hazardous Equipment State Register23 in pursuance of ensuring safe operation of potentially hazardous equipment, preventing accidents at work and disasters while operating equipment, as well as strengthening the control of inspections of technical status of potentially hazardous equipment and introducing more accurate accounts of equipment. These Provisions took effect since 1 July 2006. The Chief Inspector of the Republic of Lithuania established data protection of this Registry and categories of registered equipment according to parameters as per Orders No. 1-18024 and Nr. 1-17825.

23 Provisions on Potentially Hazardous Equipment State Register, approved by the Government Republic of Lithuania as per Resolution No. 645 as of 9 May 2002 (Official Gazette, 2002, No. 48-1844; 2006, No. 10-358). 24 Provisions on Potentially Hazardous Equipment State Register Data, approved by the Chief State Labour Inspector of the Republic of Lithuania No. 1-180 as of 1 August 2006 (Official Gazette, 2006, No. 87-3439) 25 The List-Classification of the Potentially Hazardous Equipment Register Providing their Parameters, approved by the Chief State Labour Inspector of the Republic of Lithuania No. 1-178 as of 1 August 2006 (Official Gazette, 2006, No. 87-3438)

68 Social Report 2006–2007 I ntroduction

25,226 potentially hazardous pieces of equipment were registered until 1 January 2007, distribution of which according to types is provided in the Picture No. 2.2.5.1-1.

Distribution of hazardous equipment according to types for 1 January 2007

Data of Potentially Hazardous Equipment State Register Picture No. 2.2.5.1-1

The improved Potentially Hazardous Equipment State Register (hereinafter—Register) provides a possibility to register and de-register objects pertaining to the Register as well as collect, accumulate, process, systemize, use and provide data prescribed by the Law of the Republic of Lithuania on Supervision of Potentially Hazardous Equipment and related legal acts to the state and municipal institutions as well as other establishments, state registers, and other legal entities and natural persons as per procedure set out in other legislation. The officials (labour inspectors) in charge of state control of potentially hazardous equipment—prior to visiting an inspected undertaking—have a possibility to expeditiously ascertain whether the technical status of used potentially hazardous equipment has been inspected. Analysis of data in the Register provides conditions to assess changes in number of separate groups of potentially hazardous equipment, delays in full or partial inspection of their technical state, and activity of institutions authorized to inspect of technical state of potentially hazardous equipment. Dynamics of Register changes are provided in Picture 2.2.5.1-2.

Social Report 2006–2007 69 1 C h a p t e r

Amount of potentially hazardous equipment registered in the Potentially Hazardous Equipment State Register from 1 January 2007 to 15 May 2007

Data of Potentially Hazardous Equipment State Register Picture No. 2.2.5.1-2

One of the greatest benefits of the new format Register is a possibility to record overdue inspection of potentially hazardous equipment, although it is yet uncompleted and thus not fully impartial, i.e. if dates for partial and full inspection of equipment coincide, the Register provides it as a double overdue. This way, the number of inspections of certain groups of equipment exceeds the amount of equipment. Following the improvement of the Register’s software, information regarding overdue inspections shall be more accurate and will precondition a more robust control by the State Labour Inspectorate on technical state of used potentially hazardous equipment as well as reduce the number of related accidents. As per data of the State Labour Inspectorate, 70 accidents at work due to using of potentially hazardous equipment were registered in 2006 – 61 of these accidents were attributed to minor accidents at work, 6 serious accidents, and 3 of them were fatal. Distribution of accidents at work according to groups of potentially hazardous equipment is provided in Picture No. 2.2.5.1-3. Most accidents occurred while operating cranes. Although comparatively, i.e. comparing the amount of registered potentially hazardous equipment with the number of accidents while using this registered equipment, we can see that entertainment facilities are among the most hazardous ones.

70 Social Report 2006–2007 I ntroduction

Distribution of accident at work according to groups of potentially hazardous equipment

Data of State Labour Inspectorate Picture No. 2.2.5.1-3

All 4 fatal and 6 serious accidents occurred due to inappropriate organization of work with potentially hazardous equipment: work was carried out by untrained staff members who weren’t ob- serving set conditions for operation of equipment as well as requirements of regulatory legislation on safety and heath at work, and did not use personal protective equipment as well as infringement other aspects of requirements of legislation acts on safety and health at work. Date of activity for 2006 of public institutions, which are authorized by the Minister of Social Security and Labour and Minister of Economy to inspect the technical condition of potentially hazardous equipment, is provided in Table No. 2.2.5.1-1.

Date of activity for 2006 of public institutions, which are authorized to inspect the technical state of potentially hazardous equipment

Social Report 2006–2007 71 1 C h a p t e r

Technical Supervision Service of Supervision Service of the TuvTechnika Lithuania Elevating Equipment Type of in- Inspection Type of inspec- Inspection re- Type of in- Inspection re- spections results tions sults spections sults Type of equip- Super- Super- Super- Unac- Unac- ment vise Accept- vise Accept- vise Accept- Unac- Full Partial cept- Full Partial cept- Full Partial able able able ceptable able able Combustible 224 18 39 56 1 gas equipment Escalators 67 10 53 63 48 6 42 48 Steam-boilers 1273 346 711 1018 39 274 178 264 10 Lifting cranes 6448 1211 3773 4951 33 1142 491 651 1118 24 155 48 107 151 4 Lifts 4330 1028 2399 3740 6 290 138 152 284 6 3004 990 2014 2998 6 Cableways 7 3 2 1 4 4 4 1 1 1 Pressure 9549 2135 2976 4852 259 1579 1591 1579 12 vessels Tanks 1943 538 401 902 37 435 435 429 6 Pipelines 1160 416 379 789 6 27 1 26 27

Data of authorized institutions Table No. 2.2.5.1-1

In 2006, technical status of Lithuanian potentially hazardous equipment was inspected by 68 qualified technical experts, whose distribution regarding institutions and number of inspections on technical state of potentially hazardous equipment is provided in Picture No. 2.2.5.1-4.

Number of experts of authorized institutions, number of inspections delivered, and number of inspections delivered by 1 expert

Data of authorized institutions Picture No. 2.2.5.1-4

72 Social Report 2006–2007 I ntroduction

An average number of technical state inspections pertaining to potentially hazardous equipment delivered by one expert is rather varied, i.e. from 273 (Public Institution TuvTechnika) to 569 (Public Institution Supervision Services of the Elevating Equipment). Institutions authorized to deliver technical condition inspections have given a lot of attention to expert training and professional development, expanded areas of accreditation, improved their facilities, and acquired devices for technical verification. Institutions have not received even one complaint or appeal from owners of potentially hazardous equipment, thus their activity may be assessed positively.

2.2.5.2 Free movement of goods

As Lithuanian market continues joining the general market of the European Community, the attention given to surveillance of market of products (machinery, personal protective equipment, lifts, cableways, lifting equipment) under the competence of the Ministry of Social Security and Labour is also respectively increasing: facilities are improved in conformity assessment institutions, their areas of accreditation are expanded, and actions delivered by officers working with supervision of market of these products are becoming more dynamic. During 2006, the State Non Food Products Inspectorate have carried out 414 inspections of these products and discovered 156 infringements as well as prohibited supply of 4 products into the market. Personal protective equipment (hereinafter–PPE). In 2006, 3 times more PPE was inspected (in 2005—278 types of PPE, in 2006—686 types of PPE). The number of discovered infringements decreased from 32 percent to 22.9 percent. Accurate figures are provided in Picture No. 2.2.5.2-1.

Inspections of personal protective equipment types

Data of the State Non Food Products Inspectorate Picture 2.2.5.2-1

Social Report 2006–2007 73 1 C h a p t e r

Mostly personal protective equipment produced in the European Union states was inspected. 370 types of PPE from EU states were inspected and infringements were discovered in 51 types (13.8 percent). 66 types of PPE imported from China were inspected and infringements were discovered in 28 types (42.4 percent), 241 types of PPE produced in other countries were inspected and infringements were discovered in 78 types (29 percent), and 9 types of PPE produced in Lithuania were inspected and no infringements were discovered. In 2006, two PPE safety verification programmes were designed and implemented: Safety Verification Programme for Safe, Protective, and Working Occupational Footwear; and Safety Verification Programme for Protective Clothing. Lifting equipment. Carring out surveillance of the market of lifting equipment, 5 verifica- tions were delivered, during the course of which 36 types of lifting devices were inspected: 9 types of chains, 5 types of hooks, and 12 types of cables. No infringements were discovered during inspections. Machinery. Delivering the control of machinery market, 270 inspections were carring out in 2006 and 101 infringements were discovered (37.4 percent). Inspectors examined 1256 types of machinery and discovered 233 types containing breaches (18.6 percent). In comparison to the year 2005, the number of infringements increased by 1.5 percent. The following infringements of the Machinery Safety Technical Regulation were discovered: does not correspond to marking requirements (6.6 percent); no instruction in Lithuanian (6.0 percent); no date of production (3.8 percent); no EC conformity declaration (2.9 percent); no name of producer (2.2 percent); warning signs in other language than Lithuanian (2.1 percent); no marking with the CE sign (2.0 percent); no level of noise identified (1.6 percent); no value of acceleration identified (1.4 percent); user instructions (in Lithuanian) do not correspond to the original document (1.0 percent); no type, mark, model of the product is identified (0.9 percent); EC type conformity declaration does not correspond to the Regulation requirements (0.8 percent); user instructions do not correspond to Regulation requirements (0.2 percent). Two machinery safety inspection programmes were designed and implemented in 2006: Inspection Programme for Sprayers and Liquid fertilizer distributors; and Inspection Programme for Mowers. Getting ready to implement the new Directive 2006/42/EC of the European Parliament and of the Council of 17 May 2006 on machinery, and amending Directive 95/16/EC, draft Regulation on Machinery Safety was issued and presented for public discussion.

74 Social Report 2006–2007 social insurance and 3pensions

3.1 FINANCES OF THE STATE SOCIAL INSURANCE FUND IN 2006

The year 2006 was the fifth year in a row when the revenues of the State Social Insurance Fund exceeded the forecasted and incurred expenditure. As a result of the rapid growth of the number of the insured persons and of their labour remuneration, the increasing consciousness of the insurers, efficient administration of social insurance contributions and the recovery of debts, the revenues of the State Social Insurance Fund amounted to approximately LTL 7.8 billion in 2006. It is an increase of LTL 1.4 billion, or more than 22%, over 2005. Meanwhile, the budgetary expenditure of the Fund amounted to LTL 7.2 billion, which was an increase of LTL 1.1 billion, or more than 18%, over 2005. In 2006, the increase of the budgetary expenditure of the Fund was mostly caused by the growing expenditure for state social insurance pensions and for the sickness and maternity social insurance as well as the increasing social insurance contributions to pension funds. LTL 4.9 billion, or more than 67% of all budgetary expenditure of the Fund, was paid as state social insurance pensions in 2006. It was an increase of LTL 0.5 billion over 2005. The growth of the expenditure for pensions mostly the result of the increase of state social insurance pensions, which started on 1 July 2006, and the adopted resolution to pay all state social insurance pensions (except early old-age pensions) for the current month, effective as of 1 October 2006. LTL 621.4 million, or approximately 9% of all budgetary expenditure of the Fund, was disbursed as sickness and maternity social insurance benefits. As a result of the increase of sickness, maternity and maternity/paternity benefits as well as the introduction of new social insurance benefits, the expenditure related to this insurance grew LTL 127.3 million, or approximately 26%, over 2005. In 2006, the amount of funds transferred to pension funds was LTL 531.1 million, or more than 7% of all budgetary expenditure of the Fund. Almost half of this amount was financed from the State Reserve (Stabilisation) Fund. In 2006, contributions to accumulative pensions for 685,900 people, or 54% of all insured, were transferred to pension funds. In 2006, LTL 616.5 million were

Social Report 2006–2007 75 3 C h a p t e r transferred to the Compulsory Health Insurance Fund, which was LTL 87.5 million more than was expected. Having considered the growth of the national economy and the performance indicators in recent years, the Seimas of the Republic of Lithuania approved the budget for 2007, which exceeded the 2006 budget of the Fund by approximately one fifth.

3.2. improvement of the state social insurance system

3.2.1. changes in the field of social insurance of occupational accidents and occupational diseases

3.2.1.1. Differentiation of rates of occupational accidents and occupational diseases social insurance contributions

From 1 January 2000 to 1 January 2006 all insurers paid the same amount of occupational accidents and occupational diseases social insurance contributions on behalf of their employees. As of 1 January 2006, employees have to pay differentiated occupational accidents and occupational diseases social insurance contributions; the amount of these contributions will depend upon the number of persons who suffered from fatal or serious accidents at work in their enterprises. The differentiation of occupational accidents and occupational diseases social insurance contributions aims at encouraging insurers to care more about healthy and safe working conditions for their employees. Three different contribution rates were approved for 2006. The highest contribution was paid by the employees in whose enterprises any fatal or many serious accidents at work or acute occupational diseases occurred during the last three calendar years. These insurers were classified as Risk Group I, and the contribution rate was 1%, or 0.7% higher than the previous rate. Group II consisted of insurers in whose enterprises there were any serious or fatal accidents at work during the reference period; however, these accidents did not occur during the last year. The contribution rate applicable to this group was 0.53%, or 0.23% higher than the previous rate. Group III consisted of insurers in whose enterprises there were no serious or fatal accidents at work, thus the lowest contribution rate applied to this group, viz. a mere 0.28%, which was 0.02% lower than the previous rate. Rates of occupational accidents and occupational diseases social insurance contributions are approved for groups and the classification of insurers into groups is performed each calendar year.

76 Social Report 2006–2007 social insurance and pensions

3.2.1.2. Prevention of occupational accidents and occupational diseases

At the end of 2005 the Ministry of Social Security and Labour presented the procedure of the use of funds allocated for the prevention of occupational accidents and occupational diseases to the Government for approval, which should create conditions for the reduction of occupational accidents and occupational diseases. After the approval of this procedure, enterprises, institutions, organisations and other entities that cannot finance the implementation of preventive measures for risk prevention at work and for the improvement of safety and health of employees (i.e. they cannot finance the improvement of workplaces or technological processes, or other measures the implementation of which either removes or reduces professional risk factors) are provided with the opportunity to submit annual applications and receive funds for prevention allocated from the Fund’s budget. Funds of the social insurance of occupational accidents and occupational diseases are used for that purpose. This new opportunity to receive assistance from the Fund’s budget created conditions for enterprises that cannot sufficiently finance the assurance of occupational safety and health of their employees to improve working conditions of the staff. Pursuant to the said procedure, enterprises wishing to receive funds from the Fund’s budget allocated for the implementation of preventive measures related to the elimination or reduction of occupational risk, must submit applications for the assignment of funds for prevention for each coming year by October 15 of each year. Applications shall be registered by the State Labour Inspec- torate and assessed by the commission consisting of the representatives of the State Labour Inspec- torate, the State Social Insurance Fund Board and the State Public Health Service under the Ministry of Health. This new procedure is related to the fact that as a result of the implementation of provisions of the Social Insurance of Occupational Accidents and Occupational Diseases, at the beginning of 2006 employees paid differentiated occupational accidents social insurance contributions for the first time. It is expected that the linking of these two new developments resulted in the successful development of the system obligating employers to invest into safe workplaces. Enterprises also know that not only they pay occupational accidents social insurance contributions but also have the opportunity to receive funds from the joint pool for the assurance of the safety of their employees. Enterprises that undertake to assign at least 30% of their funds for the implementation of a specific measure/measures shall have the priority to receive funds allocated for prevention. If enterprises assign similar amounts of their funds, those enterprises that intend to achieve better quan- titative results (more employees will have their occupational conditions improved) and qualitative results (technological processes are expected to be changed by using non-hazardous or less hazardous materials, working equipment will be upgraded, collective protective measures will be installed, and other measures are expected to be implemented that will improve the working environment in at least several workplaces) for the same amount of funds shall have the priority. In 2006, funds used for the prevention of occupational accidents and occupational diseases amounted to LTL 1,643,900, i.e. 51.4% of LTL 3.2 million expected to be used for the prevention were actually used. It should also be mentioned that funds allocated for the prevention of occupa-

Social Report 2006–2007 77 3 C h a p t e r tional accidents and occupational diseases are allocated for preventive measures the list of which is approved by the Minister of Social Security and Labour and the Minister of Health. The amount allocated from the Fund’s budget for the implementation of one preventive measure is at least LTL 50,000, however not exceeding LTL 100,000. 2006 saw the implementation of 24 preventive measures.

3.2.1.3. Insurance of students undergoing practical training against occupational accidents

Prior to 1 January 2006, employers had to pay social insurance contributions on behalf of students of vocational schools, non-higher professional education establishments and institutions of higher learning during their practical work/practical training in enterprises or institutions, as well as on behalf of persons referred by territorial labour exchanges for re-training during the period of their re-training. As of 1 January 2006, the State finances the social insurance of all students of vocational schools, non-higher professional education establishments and institutions of higher learning as well as persons referred by territorial labour exchanges professional training or vocational rehabilitation during their practical training in enterprises or institutions. The State budget allocated LTL 200,000 for the implementation of this insurance in 2006. The State financing of the social insurance of students against occupational accidents and occupational diseases reduces the costs of the employer and ensures social insurance guarantees for students in case of an occupational accident.

3.2.1.4. Payment of occupational accidents and occupational diseases social insurance benefits

In 2006, the Seimas amended the Law on Social Insurance of Occupational Accidents and Occupational Diseases, thus changing certain provisions regarding the payment of occupational accidents and occupational diseases social insurance benefits. As of 1 July 2006, the sickness benefit resulting from an occupational accident shall be paid for working calendar days (the five-day working week shall be applied) with due consideration to the days to be shifted as indicated by the Government’s resolution or the Labour Code. Prior to that, no provision was made regarding the payment of the sickness benefit with due consideration to the shift of days. It was also provided that once children of the insured person start school after the death of the insured person, they will receive periodic insurance benefits as of the commencement of studies. Prior to the introduction of amendments this benefit was paid if the children of the insured person were students on the date of the death of the insured person. The new provision expanded the payment of the periodic benefit to children of the insured person who start school after the death of the insured person. Furthermore, on the above date the maximum compensatory daily wages calculated by divid- ing the amount of the insured income for the current year approved by the Government and applicable for the month of the temporary disability by the number of calendar working days for the said month was increased from 3.5 to 5 amounts of the insured income for the current year.

78 Social Report 2006–2007 social insurance and pensions

3.2.2. CHANGES IN THE SICKNESS AND MATERNITY SOCIAL INSURANCE SYSTEM

In 2006, the “active” social insurance topic related to the maternity/paternity caused much discussion. At the beginning of the current year, the Ministry of Social Security and Labour presented the Government with draft laws proposing to increase the maternity/paternity social insurance benefits and other social guarantees for persons who decided to become parents and who are employed and pay their social insurance contributions, i.e. who are insured with social insurance. It is expected to encourage employed persons to have more children. It has been noticed that the number of people insured with social insurance has been growing continuously; however, the number of children born to employed families has been unfortunately declining over the recent years. It proves that young people are reluctant to interrupt their career, albeit temporarily, and raise children. Families with average and higher than average income do not wish to lose part of their income fearing that the remaining income will not be enough to properly support the family and raise the child until the mother and later either one of the parents could resume employment and receive full remuneration. The Ministry proposed to increase maternity/paternity social insurance benefits from 70% to 85% of the compensatory wages, effective as of 1 December 2006. As a result of this decrease the monthly maternity/paternity benefit may increase by LTL 160 on average. The Ministry proposed to pay 100% of the compensatory wages as maternity/paternity benefits until the child reaches six month of age, starting with the next stage, i.e. as of 1 September 2007. 85% of the compensatory wages shall be paid during the remaining time until the child reaches one year of age. Similar amendments were also proposed statutory civil servants and professional military service servicemen who do not receive maternity/paternity benefits from the Fund’s budget. Pursuant to the applicable, laws, sickness, maternity or maternity/paternity social insurance benefits are calculated on the basis of the limited maximum amount rather than on the basis of the full remuneration of the beneficiary; this amount was limited to 3.5 amounts of the insured income for the current year, i.e. if the person earned more than LTL 3,794, he/she was entitled to the benefit calculated on the basis of LTL 3,794 only. Therefore, the Ministry proposed to increase the ceiling of the compensatory wages from 3.5 to 5 amounts of the insured income for the current year, effective as of 1 September 2006. The Ministry allocated LTL 68 million from the 2006 and 2007 budget of the Fund for the implementation of all the above changes. The Ministry has also presented the Government with draft laws proposing to increase certain pension and unemployment insurance guarantees to parents deciding to become unemployed and raise their children until they reach three years of age, effective as of 1 January 2008. Prior to implementation of the above changes, one of the parents of the child who is unemployed because he/she raised his/her child under 3 years of age is insured by the State for the basic pension only. Thus, it has been proposed to insure one of the parents raising his/her child under 3 years of age for the full social insurance pension and unemployment social insurance by paying social insurance contributions based on the minimal monthly wage from the State budget.

Social Report 2006–2007 79 3 C h a p t e r

During the discussion of the above proposals by the Seimas, the following changes in the sickness and maternity/paternity social insurance were singled out, effective as of 1 July 2006: – the ceiling of the compensatory wages applicable to the calculation of sickness and maternity social insurance benefits was increased from 3.5 to 5 amounts of the insured income for the current year; – the insured person to whom two or more children were born shall be entitled to the maternity/paternity benefit amounting to 100% of the compensatory wages of the beneficiary until children reach one year of age; – a new type of social insurance benefits, viz. the paternity benefit, has been introduced. A father insured with sickness and maternity social insurance who is on parental leave until the child reaches one month of age, who has been insured with the said type of social insurance for at least seven months during the last 24 months before the first day of his parental leave, and who is married to the baby’s mother, shall be entitled to receive this benefit. The paternity benefit amounts to 100% of the compensatory wages of the beneficiary. The Seimas has also approved the following: – the increase of the maternity/paternity social insurance benefit paid until the child reaches one year of age from 70% to 85% of compensatory wages, effective as of 1 January 2007. Starting with the next stage, i.e. as of 1 September 2007, the maternity/paternity benefits until the child reaches the age of six months shall be increased to 100% of the compensatory wages. 85% of the compensatory wages shall be paid during the remaining time until the child reaches one year of age; – as of 1 January 2008, at the family’s choice either the mother or the father, or the guardian raising a child under three years of age shall be insured for the full social insurance pension and unemployment social insurance from the State budget. Pension and unemployment social insurance contributions shall be calculated on the basis of the minimum monthly wages. Prior to 2008, at the family’s choice either the mother or the father, or one of the guardians raising a child under three years of age shall be insured only for the basic part of the state social insurance pension. Concurrently with social insurance guarantees, the Government adjusted the procedure for the calculation of the average wage stating that a more favourable procedure shall be applied to the calculation of the average wage of persons who were unemployed as a result of parental leave. If as a result of parental leave the person did not receive wages that could be used for the calculation of the average wage, the latter shall be calculated on the basis of the monthly wage received by the said person prior to the leave and established for the purpose of calculation.

3.2.3. development of the lithuanian social insurance budget model

November of 2006 saw the completion of the joint project of the Ministry of Social Security and Labour and the Swedish National Social Insurance Board (RFV) financed by the Swedish International Development Cooperation Agency SIDA, which aimed at the development of the Lithuanian social in-

80 Social Report 2006–2007 social insurance and pensions surance and pension model for the short-term and long-term budget calculation. The implementation of the project started in December of 2004. The project involved specialists from the Ministry and Sodra as well as Swedish experts from RFV led by professor Edward Palmer. The goal of the project was not only to develop a technical model but also to develop a tool for the analysis of political decisions, the assessment of their effect, and the achievement of clear agreement among the generations required for the adoption of important political decisions. The project also complies with the EC requirement for each Member State to have a tool for the calculation of long-term social expenses (especially pensions) under various demographic, labour market and economic preconditions. The model has been developed according to the principle of birth year cohorts, and it can generate demographic, labour market and economic perspectives separately for men and women for the future 100 years. Based on these perspectives, the model can be used for the calculation of social insurance income from contributions as well as expenditure for various types of benefits, such as old-age, pension, lost working capacity pension, widows pension as well as sickness, maternity and unemployment benefits. The model not only shapes the development of the national PAYG system but also has an additional pension accumulation module used for the calculation of both contributions (part of the social insurance contribution is transferred to pension funds) and benefits (pension annuities) subject to the degree of participation of the insured persons in the accumulation, investment return, inflation, administration costs, etc. The development of the model demanded much work in compiling the present and previous data from personal databases of Sodra by age and sex of the insured persons, statistical information and legal framework in order to analyse and show the present functioning of the system of contributions and benefits and how to technically model its future functioning rules. Problems that are the most difficult to overcome include the modelling of insurance rules for different cohorts with different level of participation in the social insurance, including voluntary participation in II pillar of pension accumulation. The development of the model was the first important step. To get reliable forecasting results a huge analytical work will be carried out in future to prepare accurate incoming information and the whole set of various preconditions, to compare the result generated by the model with actual data. This task is the objective for the nearest future, and it will involve specialists from the Ministry and the Sodra as well as foreign experts, if possible.

3.2.4. other changes in the state social insurance system

3.2.4.1. Seafarers social insurance

Already in the middle of 2005, the Government submitted amendments of the Law on State Social Insurance to the Seimas for consideration; these amendments related to the compensation of a portion of social insurance contributions paid on behalf of seafarers with public funds. In- tending to support the strengthening of the competitive edge of the EU navy, the Lithuanian state

Social Report 2006–2007 81 3 C h a p t e r decided to provide financial assistance to national enterprises offering employment to national citizens in ships sailing by international routes. These amendments of the law were expected to be considered in 2006; however, as a result of prolonged discussions the consideration was resched- uled for 2007. In March 2006 the European Commission approved the system to be implemented in Lithua- nia according to which employers hiring EU seafarers for work in ships flying the flag of Lithuania shall be compensated social insurance contributions paid on behalf of seafarers. The European Com- mission approved that the State assistance scheme could be applied from January of 2006 until the end of 2011. Expenditure related to the expected State assistance shall amount to EUR 4.63 million per year. According to the European Commission, this scheme complies with the Community rules and the shipping policy one of the goals of which is to promote the employment of EU seafarers. This measure should also reduce the registration of EU ships in states with the “convenient flag” and maintain the employment and practical experience of the navy in Europe.

3.2.4.2. Ceilings of social insurance contributions

In 2006, heated discussions regarding the setting of the ceilings of wages from which social insurance contributions would be calculated continued. Allegedly unhappy with the uncompeti- tive situation in the Lithuanian labour market, representatives of the Investors Forum proposed to the Government to start fixing the situation by setting the so-called “ceilings” for social insurance contributions and promised that this would be the most important improvement of business conditions at that time. Meanwhile, the Lithuanian Business Employers’ Confederation and the Lithuanian Trade Union Confederation were against the introduction of such ceilings, as it would be clearly detrimental to the national economy, its introduction would increase the social exclusion between high income and low income employees. Experts of economics had different opinions on the ceilings of social insurance contributions. They feared this would encourage abusing the situation. The Investors Forum proposed to no longer withhold taxes for the Fund’s budget from the amount exceeding five average monthly wages (which would amount to approximately LTL 8,000, and about 8,300 employees receive such wages). The Ministry of Social Security and Labour proposed to raise the ceiling to ten average wages. Approximately 1,200 employees receive such wages in Lithuania. Meanwhile, the Ministry of Economy proposed not to calculate social insurance contributions from seven average wages, and then to gradually reduce this amount to five wages. At the beginning of 2006, the EU’s statistics agency Eurostat announced the tax burden in the European Union. The provided information shows that in 2004 the tax burden in Lithuania was one of the lowest in the European Union. In 2004, the tax burden in the European Union (EU) amounted to 40.7% of the gross domestic product (GDP), while in 2003 it was 40.3% of the GDP. In the Euro zone this indicator rose from 41.1% to 41.6%. This indicator differs greatly from country to country, e.g. from 28.7% in Lithuania to 51.2% in Sweden. In 2004, the highest ration of income from taxes and the GDP was registered in Sweden (51.2%), Denmark (49.9%), Belgium (47.4%), France (45.3%), Finland (44.5%) and Austria (44.3%). The lowest ration was in Lithuania (28.7%), Latvia (29.10%), Slovakia (30.6%), Ireland (31.7%), Es- tonia (32.7%) and Cyprus (33.7%).

82 Social Report 2006–2007 social insurance and pensions

3.2.4.3. Fight against illegal financial relations and contribution evasion

April of 2006 saw the signature of the co-operation agreement between the Financial Crime Investigation Service (FCIS) and the Fund Board. The agreement aims at preventing illegal financial relations and contribution evasion. Also, the recovery of social insurance contributions and of damages caused to the State, as well as preventive activities shall be improved. It is especially important, as more and more cases of the payment of wages in black money and of sham employment are made public. The Fund Board continuously follows the trends related to the labour market and labour remuneration. Why are the amounts of the insured income of the enterprise so much different this month than during the previous months? Do all employees of the organisation really receive the minimum wages only, when their superiors give themselves big remunerations? These and similar questions are raised by Sodra employees. The Fund Board and its territorial divisions continuously follow the trends related to the labour market and labour remuneration. As agreed, territorial divisions of the Sodra convey this information to divisions of the FCIS; the latter inspect whether such enterprises are engaged in money laundering of commit other financial crimes. The FCIS helps re- cover debts to the Fund’s budget and provides consulting. During the co-operation common risk criteria were established that help identify risk insurers, and new phenomena of social insurance contribution evasion are given a complex assessment. This helps quicker identify a possible threat of a criminal act and take preventive measures. More efficient application of data stored in inter-agency data storage is one more field of activities. Public authorities (State Tax Inspectorate, Customs Department, Sodra, FCIS, etc.) provide certain data according to their field of competence to the data storage established by the State Tax Inspectorate (STI), so that other parties to the project could use them.

3.2.4.4. Control of part-time “sick” students and travellers

In March of 2006 the State Social Insurance Fund Board and Vilnius Gediminas Technical University signed an agreement on the provision of personal data. On the basis of this agreement, Vilnius Gediminas Technical University started providing the Fund Board with data on part-time students who took their examinations and credit test during the examination session. The Fund Board selects and uses the data only of students who are certified as being sick during the said session. Thus, the Fund Board tries to find out whether students were breaking the rules of conduct while being sick. In December of 2005 a similar agreement was signed with Vilnius University. Uni- versities supply data pursuant to the Law on Legal Protection of Personal Data, which permits the processing of personal data in the exercise of official authority vested in state institutions. To ensure the compliance with the established medical treatment during the sickness period is one of the functions of the Fund Board prescribed by the laws. The Fund Board exercises the sickness control by continuously inspecting the grounds for issuing and renewing a sick leave certificate. The agreement with the State Border Guard Service allows inspecting persons who travelled abroad while being on a sick leave.

Social Report 2006–2007 83 3 C h a p t e r

Based on obtained data for 2005, some 6,692 insured persons who failed to follow medical treatment and broke the rules of conduct during their sick leave were inspected. According to the preliminary data, more than LTL 345,000 was recovered to the Sodra budget as a result of the established violations of the rules of conduct during the sick leave.

3.2.4.5. E-Sodra and single service telephone number 8 700 700 80

The State Social Insurance Fund Board intends to start providing its entire services on the Internet at the end of 2007. Currently the residents may only provide some information to the Fund Board, such as notices on the employment or dismissal of employees, unpaid leave, etc. It is expected that the residents will be able to send and receive certificates and other information about insured persons and insurers on the Internet. Data security and reliability is expected to receive the utmost attention. Each year almost 2.5 million paper documents are submitted to the Fund Board. In November of 2006 a single information telephone line of Sodra – 8 700 700 80 – was opened. All callers shall receive a detailed and expert consulting on state social insurance issues. This telephone number is the same all around Lithuania, and it is intended for all customers of Sodra irrespective of the county they live in. The new service has been introduced for the convenience of customers. Customers no longer need to call several different telephone numbers in search for the answer. If the consultant cannot provide the required information, the customer is connected with a competent specialist of Sodra, so he/she no longer needs to write down a telephone number and call again. The information number of Sodra is easy to remember. The time when the service is provided became convenient as well, viz. the information line of Sodra is open from 8 a.m. to 8 p.m. (no lunch breaks) during working days. The consulting provided by Sodra information line is free of charge. The customer only needs to pay for the communication services.

3.3. CHANGES IN THE PENSION SYSTEM

3.3.1. increase of state social insurance pensions

The continuous growth of the state social insurance basic pension (hereinafter referred to as the basic pension) and the current insured income (hereinafter referred to as the insured income) in recent years aims at improving the financial situation of the disabled and of the elderly people as much as possible. The programme of the Government of the Republic of Lithuania for 2006–2008 and of the implementing measures provides the undertaking to consistently increase pensions so that by 2008 the average old-age pension amounts to at least LTL 650. Therefore, with due consideration to the financial capacity of the State Social Insurance Fund Budget, state social insurance

Resolution No. 1020 of 17 October 2006 of the Government of the Republic of Lithuania on the Approval of the Pro- gramme of the Government of the Republic of Lithuania for 2006–2008 and of the Implementing Measures (Official Gazette, No. 112-4273, 2006).

84 Social Report 2006–2007 social insurance and pensions pensions were increased twice during the second half of 2006 and the first half of 2007. By resolutions of the Government of the Republic of Lithuania the following two indicators influencing the amount of state social insurance pensions were increased, effective as of 1 July 2006 and as of 1 February 2004: – basic pension: increased by LTL 30 (from LTL 200 to LTL 230) as of 1 July 2006, and by LTL 36 (from LTL 230 to LTL 266) as of 1 February 2007; – insured income: increased by LTL 128 (from LTL 1,084 to LTL 1,212) as of 1 July 2006, and by LTL 144 (from LTL 1,212 to LTL 1,356) as of 1 February 2007. The increase of the said indicators influenced the growth of the state social insurance old-age pension (hereinafter referred to as the old-age pension) paid to people having the obligatory state social pension insurance record (hereinafter referred to as the pension insurance record); as of 1 July 2006 the old-age pension increased on average by LTL 60, and as of 1 February 2007 – by approximately LTL 70. According to the data of April 2007, the average old-age pension is LTL 588.53. While implementing the new provisions of Article 52 of the Law on State Social Insurance Pen- sions (hereinafter referred to as the Law on Pensions), the Government of the Republic of Lithuania approved a new amount on 1 February 2007, viz. the maximum state social insurance unrecalculated pension (hereinafter referred to as the maximum unrecalculated pension). This amount is important for persons receiving pensions, unrecalculated according to the Law on Pensions effective as of 1 January 1995. As this amount is indexed concurrently with the increase of the basic pension. As the basic pension was increased on 1 February 2007, the maximum unrecalculated pension of LTL 578 was approved. Each approval of the new basic pension amount results in the increase of the maximum unrecalculated pension by the same percentage as the increase of the basic pension. This decision was prompted by the constantly growing average old-age pension. Since 1995 the average old-age pension has been increased 3.4 times (according to the data of the State Social Insurance Fund Board, the average old-age pension was as low as LTL 147 in 1995). This year saw the average old-age pension exceed LTL 500 for the first time. If the Law on Pension provided for a fixed amount of this pension, the constantly growing average old-age pension would result in the decrease of this amount in comparison with the average old-age pension, while the maximum unrecalculated pension would be below the average old-age pension.

Resolution No. 512 of 31 May 2006 of the Government of the Republic of Lithuania on the Approval of the Increase of the State Social Insurance Basic Pension and the Tariffs of the Insured Income of the current year of 2006 (Official Gazette, No. 62-2281, 2006). Resolution No. 40 of 15 January 2007 of the Government of the Republic of Lithuania on the Approval of the In- crease of the State Social Insurance Basic Pension, the Tariffs of the Insured Income of the Current Year and the Maximum State Social Insurance Unrecalculated Pension (Official Gazette, No. 7-285, 2007). Law amending Article 52 of the Law of the Republic of Lithuania on State Social Insurance Pensions (Official Gazette, No. 4-158, 2007). After the Law on Pensions came into force on 1 January 1995, all old-age and invalidity pensions were recalculated according to the provisions of this Law, taking into account the pension insurance record and the former wages of the person. However, if such recalculation resulted in the decrease of the pension, its beneficiary continued to receive the pension unrecalculated according to the said law. This pension was being increased, as provided by the Law on Pensions, until its amount reached LTL 500 (the maximum unrecalculated pension established by the Law on Pen- sions). If the unrecalculated pension exceeded the said limit, its amount nevertheless stayed LTL 500, and it was no longer indexed or increased otherwise, until the old-age or invalidity pension calculated on the basis of the pension insurance record or information about the wages of the person surpassed the LTL 500 level.

Social Report 2006–2007 85 3 C h a p t e r

Thus, the increase of the state social insurance pension is directly related to the growth of the above indicators (the basic pension and/or insured income). The continuous growth of these amounts results in the increase of the average old-age pension. However, it should be noted that the old-age pension the annual growth of which used to be several Litas only, started to grow more rapidly in 2002, and in 2004–2006 its growth was especially significant (Figure 3.3.1-1). In 2000–2002, the average old-age pension increased by only LTL 10.71 (i.e. 3.4% only), and in 2004–2006 alone the average old-age pension grew by as many as LTL 107.53 (i.e. 28.4%). The comparison of the average old-age pension in 2000 and in 2006 shows that it grew by LTL 168.99 (i.e. 53%).

Increase of the old-age pension paid to people having the obligatory pension insurance record in 2000–2006

Data of the State Social Insurance Fund Board Figure 3.3.1-1

1 July 2007 saw the enforcement of another amendment of the Law on Pensions, which was very important for all beneficiaries of state social insurance pensions having a long pension insurance record. On 10 May 2007 the Seimas of the Republic of Lithuania approved the proposal of the Ministry of Social Security and Labour to increase pensions for the beneficiaries having a long pension insurance record. Pursuant to these amendments of the Law on Pensions, persons who have acquired a state social insurance record exceeding 30 years shall be entitled to a bonus added to the old-age or work incapacity (invalidity) pension for each full year of the state social pension insurance record exceeding 30 years. The amount of the bonus is calculated individually for each beneficiary by multiplying 3% of the basic pension by the number of all full years of the pension insurance record exceeding 30 years. Considering that the basic pension is LTL 266 (effective as of 1 February 2007), in 2007 the bonus for one full year of the pension insurance record exceeding 30 years shall amount to LTL 7.98, for five full years – LTL 39.90, for ten full years – LTL 79.80, etc. Each increase of the basic pension shall respectively result in the increase of the bonus for the length of service. These amendments of the Law on Pensions will mostly affect the beneficiaries of the old-age pension. The bonus for the length of service is expected to be assigned for approximately 410,000

Law amending Articles 5, 6, 32, 39, 42, 46, 52 and 64 and inserting Articles 241, 421, 531 and 661 into the Law of the Republic of Lithuania on State Social Insurance Pensions (Official Gazette, No. 59-2277, 2007).

86 Social Report 2006–2007 social insurance and pensions beneficiaries of the old-age pension. According to the data of the State Social Insurance Fund Board, the length of service of as many as 21,700 beneficiaries of the old-age pension is 31 year (Figure 3.3.1-2). It should be noted that the majority of the beneficiaries of the old-age pension has 37 years of service, some 30,300 beneficiaries have 40 years of service, 11,200 beneficiaries have 45 years of service, 1,900 beneficiaries have 50 years of service, and 700 beneficiaries have 55+ years of service. Thus, the majority of beneficiaries of the old-age pension shall be assigned the bonus of LTL 55.86 for the length of service.

Distribution of beneficiaries of the old-age pension who have acquired the pension insurance record exceeding 30 years

Data of the State Social Insurance Fund Board Figure 3.3.1-2

The implementation of this law is expected to require more than LTL 180 million assigned from the State Social Insurance Fund Budget during the second half of 2007. The implementation of these amendments is expected to result in the LTL 45 increase of the average old-age pension. With due consideration to this forecasted increase of the average old-age pension, this pension will amount to LTL 633.53 during the second half of 2007.

3.3.2. reorganisation of the survivor’s pension system

During the second half of 2006 the gradual reorganisation of the state social insurance survivor’s pension system (hereinafter referred to as the Sodra survivor’s pension system), which caused much discontent of the public, was commenced. Even though the public has long been discontent with the existing system, the reorganisation was not possible before 2006 due to financial reasons. Prior to 2006 all surplus funds of the State Social Insurance Fund Budget were allocated to the increase of the key pensions, such as old-age, work incapacity (invalidity) or orphan’s pension, as these pensions are the main source of income for the majority of elderly or disabled people or people who

Social Report 2006–2007 87 3 C h a p t e r lost the breadwinner. The improved financial situation resulted in the decision to start a gradual reform of this system. With due consideration to the proposals and requests submitted by surviving spouses, the Ministry of Social Security and Labour drafted amendments of the Law on Pensions, which were discussed with organisations of elderly people prior to their approval by the Seimas of the Republic of Lithuania. These amendments were also approved by the Council of Pensioners Affairs. Amendments of the Law on Pensions that reform the Sodra survivor’s pension system came into force on 1 January 2007. The key principles for the reorganisation of the Sodra survivor’s pension system are as follows: 1. The survivor’s pension shall be granted to all widows or widowers who have attained the pensionable age, regardless of their age when the death of their spouse occurred, if the deceased spouse had at least the minimum record while working in the undertakings, agencies or organisations of Lithuania, EU Member States or the member states of the European Economic Area. 2. All widows or widowers who became entitled to the survivor’s pension after 1 January 2007 shall be granted pensions of the same amount. For that purpose the basic amount of the survivor’s pension was introduced; it shall be at least LTL 70. The minimum basic amount of the survivor’s pension has not been selected randomly; rather, it was the amount of the average survivor’s pension in 2006, which was granted in relation to the spouse who passed away after 1 July 1997. The Law also provides that the basic amount of the survivor’s pension shall be approved by the Government of the Republic of Lithuania on the recommendation of the Ministry of Social Security and Labour; therefore, this amount shall also be indexed in future with due consideration to the financing opportunities of the State Social Insurance Fund Budget. 3. All granted survivor’s pensions less than the basic amount of the survivor’s pension and paid to persons who attained the pensionable age or who were assesed as incapable or partially capable of work were increased until they reached the basic amount of the survivor’s pension. During the reorganisation of the social insurance survivor’s pension system it has been decided that a widow/widower who raises the deceased person’s minor or disabled children shall be no longer entitled to the survivor’s pension. In this case it has been decided to replace the survivor’s pension, which amounted to 20% of the deceased person’s pension, with the benefit paid to the deceased person’s children. Therefore, effective as of 1 January 2007, the sole child of the deceased person shall be granted the orphan’s pension amounting to 50% (30% before 1 January 2007) of the pension to which the deceased person was (could have been) entitled; two or more children shall receive equal pensions; however, they shall not exceed 100% of the pension to which the deceased person was (could have been) entitled. This amendment of the law mostly affected families with two children who lost one of the breadwinners. Prior to 1 January 2007, the survivor’s and orphan’s pension paid such family (widow/widower and two orphans) amounted to 80% of the pension to which the deceased person was (could have been) entitled (the children were entitled to 30% each and the widow/widower – to 20%); however, after 1 January 2007 the orphan’s pension amounted to 100% of the pension to which the deceased person was (could have been) entitled.

Law amending the Law of the Republic of Lithuania on State Social Insurance Pensions and the Law on the Early Payment of State Social Insurance Old-Age Pensions (Official Gazette, No. 139-5295, 2006).

88 Social Report 2006–2007 social insurance and pensions

According to the data of the State Social Insurance Fund Board, within three months of 2007 (the comparison is made between data of January 2007 and of April 2007) the number of the beneficiaries of the survivor’s pension grew 17,100, including 16,100 survivor’s who were granted the survivor’s pension in relation to persons who passed away before 1 January 1995 (Figure 3.3.2-1). The insignificant growth of the number of survivor’s pensions granted in relation to persons who passed away after 1 January 1995 could be explained by the fact that the increased number of survivor’s pensions granted to persons who have attained the pensionable age was reduced by the fact that after 1 January 2007 survivor’s pensions are no longer granted to persons raising children of the deceased, also some of the persons granted the survivor’s pension before 1 January 2007 because they were raising children of the deceased refused their survivor’s pension in order for higher orphan’s pension to be granted to their children.

Change in the number of beneficiaries of the survivor’s pension from January 2006 to April 2007

Data of the State Social Insurance Fund Board Figure 3.3.2-1

1 January 2007 not only saw the expansion of the circle of beneficiaries of the survivor’s pension but also the increase of the survivor’s and orphan’s pensions. The growth of the survivor’s pension especially affected the survivors who were granted pensions in relation to their spouses deceased before 1 January 1995. Survivor’s pensions paid to these persons increased twice (Figure 3.3.2-2). The survivor’s pension also increased for widows/widowers receiving pensions in relation to their spouses deceased after 1 January 1995 if these pensions were less than LTL 70. This increase also determined the average growth of the survivor’s pension paid to this group of beneficiaries. Figure 3.3.2-2 shows that in 2006–2007 the average orphan’s pension experienced a significant growth (by LTL 80.9) – from LTL 114.8 in April 2006 to LTL 195.7 in April 2007, i.e. the average orphan’s pension grew by as much as 70%. The significant growth of the average orphan’s pension was caused by the increase of the basic pension and the insured income as well as the increase of the portion of the pension of the deceased that the orphan is entitled to.

Social Report 2006–2007 89 3 C h a p t e r

Growth of the survivor’s and orphan’s pension from January 2006 to April 2007

Data of the State Social Insurance Fund Board Figure 3.3.2-2

It should be noted that the reform only included the Sodra survivor’s pension system. Consid- ering the fact that state pensions are supplementary pensions, it has been decided not to amend the terms and conditions of granting and paying state survivor’s pensions as well as amounts of these pensions. Prior to 1 January 2007 both the granting and paying state social insurance survivor’s and orphan’s pensions and the granting and paying state survivor’s and orphan’s pensions followed the same provisions regulating the granting and payment of survivor’s and orphan’s pensions provided in the Law on Pensions. After the provisions of the Law on Pensions regulating the granting and payment of survivor’s and orphan’s pensions were amended, a respective law was passed transposing the provisions in force before 1 January 2007 into the Law on State Pensions. As of 1 January 2007, these provisions regulate the granting of all state survivor’s and orphan’s pensions (victim’s survivor’s and orphan’s pensions, 1st and 2nd degree state survivor’s and orphan’s pensions, pensions for survivors and orphans of officials and army servicemen).

3.3.3. development of the system of social assistance pensions and other state social assistance benefits

The Law on State Social Assistance Benefits shall establish persons entitled to social assistance pensions, orphan’s social assistance pensions, target compensations for nursing or attendance (assistance) expenses, and relief compensations.

Law amending the Law of the Republic of Lithuania on the Office of President, the Law on State Pensions, and the Law on State Pensions Grantable to Army Servicemen and Officials Employed in the System of Internal Affairs, Special Investigation Service, National Security, Defence, Public Prosecutor’s Office, Prisons Department, Institutions Within Its Jurisdiction and State Enterprises, and repealing Article 1 of the law amending Articles 2 and 11 of the Law on State Pensions (Official Gazette, No. 141-5404, 2006). Law of the Republic of Lithuania on State Social Assistance Benefits (Official Gazette, No. 71-2556, 2005).

90 Social Report 2006–2007 social insurance and pensions

Social assistance pensions. 1 January 2006 saw no material changes in the terms of awarding and paying social assistance pensions, orphan’s social assistance pensions and target compensations; however, persons who attained the pensionable age and are not entitled to any pension of any type became entitled to receive social assistance pensions (persons with incapacity for work or partial incapacity for work, who lost 60% or more of their capacity for work are entitled to social assistance pensions under the same terms and conditions, effective as of 1 July 2005). Moreover, when a person receives a pension and the amount of this pension (or the total amount of all received pensions) is less than the social assistance pension, this person shall be entitled to receive a difference between the social assistance pension and the pension and/or pension benefits (the total amount) that he receives. According to the data provided by city or regional municipal Social Assistance Departments (1 January 2007), the number of persons not entitled to any type of pension (receiving pensions the amount of which is less than the social assistance pension) and therefore awarded social assistance pensions (receiving the difference between the social assistance pension and the pension that he receives) is rather insignificant as compared to all recipients of social assistance pensions, viz. 3,400 disabled and 5,300 persons who attained the pensionable age. These persons amount to 18.1% of all the recipients of social assistance benefits. Target compensations for nursing expenses. These compensations to disabled persons to whom the special need for permanent nursing is established are awarded as of 1 July 2005. Prior to that, disabled children and disabled persons recognised as disabled before the day (inclusive) they reach the age of 24 to whom the special need for permanent nursing was established were entitled to two benefits, i.e. nursing allowances and target compensations for nursing expenses. After these two benefits were consolidated, target compensations for nursing expenses to the above persons amounted to 2.5 basic pensions, effective as of 1 July 2005. Meanwhile, target compensations for nursing expenses paid to the disabled persons recognised as disabled after they reach the age of 24 or after they attain the pensionable age amounted to 1.5 basic pensions as of 1 July 2005 (the same amount as nursing allowances paid before 1 July 2005). However, in order to prevent the age discrimination of disabled persons, target compensations for nursing expenses paid to the disabled persons recognised as disabled after they reach the age of 24 or after they attain the pensionable age increased to 2.5 basic pensions on 1 January 2007, and from them on the amount of target compensations for nursing expenses is the same for all disabled persons to whom the special need for permanent nursing is established. Target compensations for attendance (assistance) expenses. These compensations are only awarded to disabled persons to whom the special need for permanent attendance (assistance) is established. Meanwhile, this benefit is awarded to disabled children with severe or moderate disability irrespective of whether the above need is or is not established. The amount of target compensations for attendance (assistance) expenses depends upon the level of disability: – the amount equal to one basic pension is awarded to children with severe disability and to disabled persons who have lost 75-100% of their capacity for work; – the amount equal to 0.5 basic pension is awarded to children with moderate disability, to disabled persons who have lost 60-70% of their capacity for work and to persons who have attained the pensionable age.

Social Report 2006–2007 91 3 C h a p t e r

The amount of this target compensation is not subject to the age of the person on the day the disability is assessed. However, before 1 January 2007 the age of the person on the day his disability was assessed was a very important factor in establishing the person’s entitlement to this benefit. Pursuant to the Law on State Social Assistance Benefits, from 1 July 2005 target compensations for attendance (assistance) expenses were awarded and paid only to children to whom severe or moderate disability was established, also to persons with incapacity for work or partial incapacity for work, who have lost 60% or more of their capacity for work and who were recognised as such before the day (inclusive) they reached the age of 24; from 1 January 2006 these benefits were also awarded to persons who attained the pensionable age, and from 1 January 2007 – to persons with incapacity for work or partial incapacity for work, who have lost 60% or more of their capacity for work and who were recognised as such after the day they reached the age of 24. It should be noted that the system of social assistance pensions and other social assistance benefits covers the growing circle of people, so the demand for state budgetary funds for the payment of these pensions and benefit grows as well. The rather significant growth in the number of the beneficiaries of social assistance benefits in 2006 was the result of the reform of the target compensations system. In 2006, the number of the beneficiaries of social assistance benefits grew more than 14,000 (i.e. 17.4%) over 2005 (Figure 3.3.3-1). Both the growing number of the beneficiaries of social assistance benefits and the increase of the amount of social assistance benefits resulted in the significant growth of the demand for public funds for the payment of benefits. In 2006, the demand for public funds for the payment of benefits grew more than twice over 2003, and now it amounts to LTL 298.5 million per year (Figure 3.3.3-3).

Growth in the number of beneficiaries of state social assistance benefits in 2000–2006

Data from the Ministry of Social Security and Labour Figure 3.3.3-1

92 Social Report 2006–2007 social insurance and pensions

Growth of public funds paid as state social assistance benefits in 2000–2006

Data from the Ministry of Social Security and Labour Figure 3.3.3–2

3.3.4. other changes in the pension system

During the 2nd half of 2006 – the 1st half of 2007 several important decisions were made; these decisions affected the beneficiaries of state social insurance pensions and state pensions as well as the amounts of these pensions. Changes in the system of state social insurance pensions On 19 October 2006 the Government of the Republic of Lithuania approved the draft resolution of the Government10 prepared by the Ministry of Social Security and Labour. This resolution equalised the payment of all state social insurance pensions (except early old-age pensions) and commenced their payment for the current month. No terms of payment of state pensions and social assistance benefits changed; these benefits continued to be disbursed for the previous month. On 1 July 2007 another amendment of the Law on Pensions was introduced, viz. the granting of old-age or incapacity (invalidity) pensions could be reviewed based on new data if the beneficiary acquires an additional insurance record of at least one year while working under an employment contract or on the basis of service or membership. Before 1 July, 2007, the granting of old-age or incapacity (invalidity) pensions could be reviewed only if the insurance record of at least two years was acquired. Changes in the state pension system On 22 June 2006 the Seimas of the Republic of Lithuania adopted the amendment of the Law on State Pensions11. According to this law (as amended), the basic state pension was increased by LTL

10 Amendment to Resolution No. 1156 On the Approval of Regulations for Granting and Payment of State Social Insurance Pensions of the Government of the Republic of Lithuania dated 18 November 1994 (Official Gazette, No. 113-4304, 2006). 11 Law amending Articles 2 and 11 of the Law of the Republic of Lithuania on State Pensions (Official Gazette, No. 77- 2970, 2006).

Social Report 2006–2007 93 3 C h a p t e r

34 (approximately 25%) on 1 January 2007. The basic state pension, which amounted to LTL 138 for a long time, was increased to LTL 172 (the amount of the basic pension effective on 1 January 2005), effective as of 1 January 2007. The increase of the basic state pension resulted in the increase of all state pension amounts linked to the basic state pension, i.e. first and second degree state pensions, state pensions for victims, and state pensions for scientists. The total number of persons who receive the increased state pensions as of 1 January 2007 amounts to approximately 110,000. The said law amending the Law on State Pensions also expanded the circle of victims entitled to state pensions. As of 1 January 2007, the right to receive this pension was awarded to former children without parental support, to persons deported for forced labour or to forced labour camps during World War II, persons born in these camps or minor family members staying together in these camps. On 22 December 2006, the Seimas of the Republic of Lithuania adopted a new law, viz. the Law on State Annuity for the President of the Republic of Lithuania12. The law was enforced on 1 January 2007. It regulates issues such as the provision of pension to the President of the Republic of Lithuania after the expiration of the term of office, or to the President’s spouse (widow/widower) and minor or disabled children in the case of the President’s death. Before 1 January 2007 issues related to granting and payment of the President’s state pension were regulated by the resolution of the Government of the Republic of Lithuania.

3.4 ACCUMULATION OF PENSIONS

3.4.1. ANALYSIS AND IMPROVEMENT OF THE PENSION ACCUMULATION SYSTEM

In 2006, approximately 100,000 persons started accumulating of a portion of Sodra contribution in private pension funds, and by the end of the year more than 785,000 persons (62.5% of the insured) receiving the average wage of LTL 1,591.2 (i.e. 6% higher than the average wage in the country) had agreements with pension accumulation companies. Percentage distribution of persons involved in pension accumulation by age group: – 77.5% are persons of 25-44 years of age; – 20% are persons of 45-54 years of age; – 2.3% are persons older than 55. In 2004–2006, contributions transferred to pension funds amounted to LTL 1,012.5 million. After 60,000 more people joined the pension accumulation system, there were 845,500 persons or 65% of the insured, involved in the pension accumulation in 2007 (data of May 1). This demonstrates the trust in the new system (the movement of the number of participants in the accu-

12 Law on State Annuity for the President of the Republic of Lithuania (Official Gazette, No. 141-5405, 2006).

94 Social Report 2006–2007 social insurance and pensions mulation of pensions is provided in Figure 3.4.1-1). Agreements shall be signed until July 1 (or until 1 October in case of a new entrant to the labour market). As of beginning of 2007, the contribution to funds was increased from 4.5% to 5.5% of the employee’s wage.

Change in the number of participants in the accumulation of pensions in 2003–2007

Data of the Ministry of Social Security and Labour Figure 3.4.1-1

Starting with 2007, some people accumulating their contributions in private pension funds (approximately 441,000 persons who signed pension accumulation agreements in 2003) will be able to decide whether to keep their assets in the same pension fund or to transfer the accumulated assets to the fund of another company. The participant of pension accumulation scheme acquires the right to change the pension fund manager in three years after the commencement of the accumulation of funds. However, they will be charged the fee of up to 0.2% of the accumulated assets (if the manager is changed once a year). From January to May approximately 3,000 persons changed the pension accumulation company. Seeking that the population receives more information about the opportunity to change the pension fund manager the Ministry together with supervision authorities (the Securities Commis- sion and Insurance Supervision Commission) held the awareness campaign in January-April of 2007. People were encouraged to examine the results of the selected pension fund, to learn to assess the results of pension funds and risk levels, and only then to make decisions. A toll-free telephone line was opened, a commercial was being run by LTV and PBK stations, and the website was updated (www.pensijusistema.lt). The website showed the results of pension funds and listed the applicable fees, and provided statistical information about the pension accumulation system. It also lists ad- dresses and contact telephone numbers of supervision authorities and all companies rendering pension accumulation services. Currently, there are 30 second pillar pension funds managed by nine management companies.

Social Report 2006–2007 95 3 C h a p t e r

1 July 2007 will see the enforcement of the amendments of the Law on the Accumulation of Pensions aiming to ensure a successful and stable functioning of the pension accumulation system and to provide the participants with the opportunity to manage the investment risk of their accumulated funds more efficiently. To ensure that the participants of the pension accumulation system be properly and sufficiently informed about the investment risk related to pension funds and the safety of invested assets, the pension accumulation company must make sure that the person signing a pension accumulation agreement with this company for the first time is aware of all the investment risk related to pension funds managed by that company, so that the person could make the best decision in choosing the pension fund (conservative investment, investment into shares, combined, etc.), and must obtain a written certification of that person regarding the said awareness. Pension accumulation companies shall have to make an offer (delivered together with the annual report) to persons that have less than 7 years until the old-age pension to transfer to the conservative pension fund, and to explain the benefits of doing that. If the person submits his written refusal to participate in the conservative investment pension fund, only then an agreement on his participation in a more risky pension fund of his choice can be signed. This is being done to protect the interests of pre-retirement age people and to draw their attention not only to the return on investment but to the investment risk as well. Another amendment to the law seeks to provide the society with better opportunities to more accurately assess the performance results and the efficiency of pension funds. Each manager of pension funds shall have to have a comparative index, i.e. an index selected by the pension accumulation company with which the performance results (the return on investment) of the pension fund shall be compared. It shall also be stated in the operating report and the financial report of the pension accumulation company. The comparative index of the pension fund shall be selected with due consideration to the investment strategy of the fund. The presence of this index will improve the information of the society on investment issues and will encourage pension accumulation companies to manage funds accumulated by people more efficiently.

3.4.2. development of the legal framework of the accumulation of occupational pensions

On 4 July 2006 the Seimas approved the draft Law on the Accumulation of Occupational Pen- sions (Official Gazette, No. 82-3248, 2006) developed by the Ministry of Social Security and Labour aimed at encouraging employers to provide additional social guarantees for their employees during their old age. The Government approved this draft law in April. The key objective of drafting this law is to implement Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision. The Law on the Accumulation of Occupational Pensions shall regulate the organisation and supervision of occupational pension accumulation relations (widely spread in the old Member States) in Lithuania.

96 Social Report 2006–2007 social insurance and pensions

If employers wish to establish additional pension schemes for their employees provided by this Law, this will help develop and strengthen the loyalty of the employees to their company. Addi- tional social guarantees will help keep employees in Lithuania, in companies that they work for. This Law will also help strengthen the social dialogue between employers and employees. The Law on the Accumulation of Occupational Pensions provides for two forms of the organisation of the accumulation of occupational pensions, such as the accumulation of pensions in associations of participants in occupational pension funds and in life assurance undertakings. The pension association may be established by an employer or a group of employers having agreed with the employees, or by associations of self-employed persons. Pension associations must have at least one pension fund the operation of which is similar to III pillar pension fund (supplementary voluntary accumulation of pensions). However, unlike III pillar pension funds, participants will be involved the management of the occupational pension fund, viz. they will be able to independently define the conditions of their participation in a pension fund, to select the desired property manager, to establish the investment strategy and possible pension benefits. The Law provides that having chosen the accumulation of occupational pensions as an additional activity, life assurance undertakings shall be subject to additional requirements, viz. assets and liabilities related to the accumulation of occupational pensions shall be separated and administered separately from other activities of the undertaking. It also has a peremptory provision stating that life assurance contracts under which occupational pensions are accumulated shall be concluded, amended and terminated pursuant to the agreement concluded between the employees and the employer. In order to ensure efficient and professional activities of pension funds, the Law provides that all funds accumulated by pension associations must be managed and invested by licensed undertakings (management companies, brokerage firms, life assurance undertakings); then the supervision of accumulated funds shall be performed by the Securities Commission or the Insurance Supervisory Commission. With due consideration to the recommendation of the above Directive that the key objective of benefits paid from occupational pension funds should be payments to persons upon attaining the pensionable age, the Law provides that the accumulation of occupational pensions must be carried out until the person attains the pensionable age specified in the pension fund rules (at least 55 years of age) or until the participant is recognised as fully or partially incapable for work by the Disability and Capacity for work Establishment Office. The Directive on the activities and supervision of institutions for occupational retirement provision states that pension accumulation undertakings of Member States can operate in other Member States as well. This opportunity is especially important for undertakings having branches all over Eu- rope and seeking to manage its occupational pension funds by one operator in one country. The Law on the Accumulation of Occupational Pensions provides that in this case social security and labour legislation of the Member State in which the person paying contributions operates must apply (e.g. related to the conclusion of collective agreements, pension fund rules, old-age pension age, etc.). Provisions of other EU directives providing for the security of rights of the participants in the occupational pension accumulation while changing the employer in another Member State, also

Social Report 2006–2007 97 3 C h a p t e r measures ensuring equal opportunities for men and women or security of pension rights of employees upon the insolvency of the employer have also been transposed to the Law on the Accumulation of Occupational Pensions. The accumulation of occupational pensions shall also be subject to the same tax allowances as the accumulation of pensions in III pillar pension funds.

3.5. CONCLUSIONS AND SUMMARY

The year 2006 was the fifth year in a row when the revenues of the State Social Insurance Fund exceeded the forecasted and incurred expenditure. The positive result of the year provided opportunities to further develop and improve the social insurance system. For the first time different rates of occupational accidents social insurance contributions were applied; the rate depends upon the number of persons who suffered from fatal or serious accidents at work in the enterprise. At the same time employers who implement preventive measures were provided with the opportunity to make use of the social insurance financing. It is expected that the linking of these two new developments resulted in the successful development of the system obligating employers to invest into safe workplaces. Enterprises also know that not only they pay occupational accidents social insurance contributions but also have the opportunity to receive funds from the joint fund for the assurance of the safety of their employees. Better budgetary situation of the State Social Insurance Fund allowed to increase the maximum ceiling of the compensatory wages applicable to the calculation of sickness and maternity social insurance benefits from 3.5 to 5 amounts of the insured income for the current year, to introduce a new type of social insurance benefits, viz. the paternity benefit, and to entitle the insured person to whom two or more children were born to receive the maternity/paternity benefit amounting to 100% of the compensatory wages of the beneficiary until children reach one year of age. Also, recent years show the effort to improve the financial situation of the disabled and of the elderly people by increasing state social insurance pensions, state social assistance benefits and state pensions. During the 2nd half of 2006– the 1st half of 2007 alone, state social insurance pensions were increased twice, and the bonus for the length of service was introduced, effective as of 1 July 2007. The reform of the Sodra survivor’s pension system started on 1 January 2007 (the circle of beneficiaries of the Sodra survivor’s pension was expanded, and the survivor’s and orphan’s pensions were increased), and the basic state pension increased (all state pension amounts linked to the basic state pension increased). As of 1 January 2007, target compensations for attendance (assistance) expenses were awarded to the disabled with incapacity for work or partial incapacity for work, who have lost 60% or more of their capacity for work and who were recognised as such after the day they reached the age of 24; also, the compensation for nursing expended paid to the disabled persons recognised as disabled after they reach the age of 24 or after they attain the pensionable age were increased.

98 Social Report 2006–2007 social4 support

4.1. social assistance for families and children

This chapter focuses on the changes that occurred in 2006 and in the first half of 2007 in the system of social assistance provided to families with children and for low-income residents. It also provides statistics on benefits, social assistance to schoolchildren, social assistance in cash and its recipients.

4.1.1. Family and child benefits

In 2006, as in most European countries, families with children received state support provided by the Law on Benefits to Children assuring the assistance to each child brought up in the family from the birth until the age of majority. This assistance is provided from the State budget irrespective of the family income and irrespective of whether the person is covered by state social insurance or not. The Law provides for the following benefits: 1. Benefits to children raised in families: – a birth grant; – an adoption grant (as of 1 July 2006); – a child benefit; – a benefit to a conscript’s child. 2. Benefits to children under guardianship (curatorship): – a guardianship (curatorship) benefit; – a settlement grant. 3. A pregnancy grant.

Law of the Republic of Lithuania on Benefits to Children (Official Gazette, No. 89-1706, 1994; No. 88-3208, 2004).

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In order to ensure social security for all families with children and to improve the system of family and child benefits, the Seimas of the Republic of Lithuania adopted amendments to the Law on Benefits to Children effective as of 1 July 2006. Amendments specified the provisions of the Law and legalised a new benefit to adopted children.

4.1.1.1. Changes in the system of benefits to children raised in families

In 2006, on the birth of a child the family was paid a grant of LTL 1,000 (8 MSL). The grant is paid in relation to each born child; therefore, on the birth of twins or triplets the amount of the grant is subject to the number of children born. To encourage adoption in Lithuania and in order for the adoption to become equal to the birth of a child in a family, an adoption grant was introduced as of 1 July 2006. The grant of LTL 1,000 (8 MSL) is paid on the adoption of a child (except when adopted by a spouse). Where a family adopts a baby, the family gets both – the birth grant and the adoption grant. 2006 saw the continuation of the payment of benefits to children. As the introduction of this benefit paid until children reach the age of majority requires major funds of the State budget and has to be implemented by and before 1 January 2009, the introduction of this benefit shall be carried out in several stages. As of 1 July 2004, a benefit of LTL 50 (0.4 MSL) is paid to families raising one or two children until the child reaches the age of 7, and to families raising more than three children – until the child reaches the age of 18 or as long as the child continues his/her education, but no longer that he/she reaches the age of 24. A family raising one or two children shall be paid a monthly benefit in the amount of LTL 93.75 (0.75 MSL) for each child until he/she reaches the age of 3, and a monthly benefit of LTL 50 for each child between the ages of 3 and 7. A family raising three and more children shall be paid a monthly benefit in the amount of LTL 137.5 (1.1 MSL) until the child reaches the age of 3, and a monthly benefit of LTL 50 for each child between the ages of 3 and 18 years of age and older who continue in full-time educational establishment, but no longer until they reach the age of 24. As of 1 September 2006, the payment of the child benefit in the amount of LTL 50 was extended to children between 7 and 9 years of age. 73,000 more children are entitled to this State benefit provided irrespective of the income of their parents. Additional LTL 12.4 million were assigned from the State budget for the said extension of the payment of benefit. Each child of conscript shall be paid a monthly benefit in the amount of LTL 187.50 (1.5 MSL) during the service of his/her father. A pregnant unemployed woman, who is not eligible for a maternity pay, shall be granted lump sum in the amount of LTL 250 (2 MSL) 70 days before a baby is due. The increase of the amount of MSL from LTL 125 to LTL 130 effective as of 1 January 2007 resulted in the change of the amount of the above benefits. In 2007, a birth grant or an adoption grant was therefore LTL 1,040, a monthly benefit for a child under 3 years of age was LTL 97.50 if the

Law amending Articles 1, 3, 4, 5, 6, 8, 9, 10, 12, 13 and 18 of the Law of the Republic of Lithuania on Benefits to Chil- dren (Official Gazette, No. 68-2496, 2006). Law of the Republic of Lithuania on the Approval of Financial Indicators of the State and Municipal Budgets for 2007 (Official Gazette, No. 138-5267, 2006).

100 Social Report 2006–2007 social support child was raised by a family with one or two children, and LTL 143 if the child was raised by a family with three or more children; monthly benefits for older children amounted to LTL 52, a monthly benefit to each child of conscript was LTL 195, while a pregnancy grant was LTL 260.

4.1.1.2. Changes related to benefits to children under guardianship and persons who are placed under guardianship (curatorship)

In 2006, pursuant to the Law on Benefits to Children, a child placed under guardianship in a family, social family or non-governmental guardianship institution, shall be paid a monthly guardianship (curatorship) benefit of 4 MSL (LTL 500 in 2006, and LTL 520 as of 2007) during the period of guardianship (curatorship). If upon the expiration of the child’s guardianship (curatorship) due to attaining the legal age, emancipation (recognition of legal capacity by the court) or contracting a marriage, he/she continues in full-time secondary, vocational, post-secondary or higher education, he/she shall continue to receive the above benefit while he/she studies, but no longer than until he/she reaches the age of 24. This benefit shall neither be granted or paid to persons who enrol in a school of the same level more than twice or who enrol in a school of a lower level. As of 1 July 2006, this benefit is paid irrespective of whether the person is employed or unemployed, and during the period of academic leave. When a benefit recipient, receiving the guardianship (curatorship) benefit, receives an orphan’s pension and/or alimony, the amount of the guardianship (curatorship) benefit shall be equal to the difference between the benefit amounting to 0.4 MSL and the amount of the said orphan’s pensions and/or alimony. The person whose both parents (lone parent) die while he/she continues in full-time secondary, vocational, post-secondary or higher education shall have the right to receive the guardianship (curatorship) benefit while he/she studies, but no longer than until he/she reaches the age of 24. As of 1 July 2006, the guardian (curator) of the child shall receive the monthly guardianship (curatorship) benefit of 2 MSL (LTL 250 in 2006, and LTL 260 since 2007) for the child who receives maintenance (free accommodations and food) in a dormitory of a general education school or a vocation school on a full-time basis or during working days. Upon the expiration of the child’s guardianship (curatorship) due to attaining the legal age, emancipation or contracting a marriage, persons placed under guardianship (curatorship) shall be given a grant amounting to 50 MSL (LTL 6,250 in 2006, and LTL 6,500 since 2007) for the purchase of a dwelling or settlement. The grant may be used to acquire a dwelling, to redeem part of the loan for the acquisition or building of a dwelling (dwelling-house, apartment), to pay utility charges for a rented dwelling, to repair or renovate a dwelling, or to purchase furniture and domestic appliances. As of 1 July 2006, the recipient of the grant has the right to use the settlement grant to pay utility charges for a rented or owned dwelling, to pay tuition charges, to purchase a plot of land, or to acquire a PC. As of 1 July 2006, foreign nationals residing in the Republic of Lithuania who are appointed the guardians (curators) of a child who is a citizen of the Republic of Lithuania following the procedure prescribed by the law are entitled to receive the guardianship (curatorship) benefit. The movement of a child’s parents abroad raises the issue related to the co-ordination of the establishment of the child’s representation and guardianship (curatorship), and the payment of the

Social Report 2006–2007 101 4 C h a p t e r benefit. Therefore, 1 July 2006 saw the adoption of a provision not to pay any guardianship (curatorship) benefit if the temporary guardianship (curatorship) of the child is established at the parents’ request in relation to their temporary movement from Lithuania. As of 1 January 2007, the guardianship (curatorship) benefit is paid not only to guardians natural persons, social families or non-governmental guardianship institutions but also to children placed under the guardianship of state or municipal guardianship institutions. Families raising children also receive support other than cash benefits. Low-income families also receive other social support (social assistance, compensations for heating and for cold and hot running water, free meals for children in schools, support for the preparation of students for school, discounts on payments for the kindergarten, etc.). When a permanent resident of Lithuania dies or when a stillborn baby is born, the person taking care of the funeral receives the funeral benefit of 6 MSL (LTL 750 in 2006, and LTL 780 in 2007) established by the Law on Assistance in Case of Death.

4.1.2. cash social assistance for poor families and single residents

The implementation of provisions of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families (Single Residents) involves the application of the coherent scheme of social assistance in cash on the basis of income and property evaluation in Lithuania. The poor receive social assistance guaranteeing a minimum subsistence income to survive on and compensations for heating of a dwelling and cold and hot running water expenses (hereinafter referred to as compensations) as the partial reimbursement of the maintenance of a dwelling. In order for the cash social assistance to reach its immediate target so that all poor families could benefit from this state assistance, the law amending the said law was enforced on 1 December 2006. This law included provisions guaranteeing assistance rendered to a wider circle of persons, and provided for more beneficial conditions to receive compensations for heating of a dwelling by families that became no longer entitled to receive compensations as a result of their increased income (caused by the growth of pensions and of the minimum monthly wage).

4.1.2.1. Cash social assistance and provision thereof

Families and single residents who are unable to obtain by themselves enough funds for living shall be entitled to social assistance in cash. A family or a single resident applying for social as-

Law amending Articles 2, 8 and 12 of the Law of the Republic of Lithuania on Benefits to Children (Official Gazette, No. 17-592, 2006) Law of 23 December 1993 of the Republic of Lithuania on Assistance on Case of Death (Official Gazette, No. 73-1371, 1993) Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families (Single Residents) (Official Gazette, No. 73-3352, 2003)

102 Social Report 2006–2007 social support sistance is required to first of all receive all the income that he/she can get on his/her own, i.e. to receive any benefits he/she is entitled to; family members capable to work are required to actively search for a job through territorial labour exchanges; it is required that the paternity of children of unmarried persons should be ascertained or established; the maintenance for these children and for children of divorced parents should be established by a court-approved contract or ordered by the court, etc. Cash social assistance is provided after the assessment of not only income but the existing property as well. Social assistance and compensations are awarded to families and single residents if the value of their property does not exceed the average property level set for their residential area. When a family or a single resident applies for cash social assistance, the total value of property (registered residential or non-residential buildings, garden houses, parcels of land) of all the family members is calculated; the value is established on the basis of data provided by the Centre of Registers. The value of the property owned by a family or a single person is determined without taking into account low-value property, if it does not exceed amounts prescribed by the Law. Families and single permanent residents of the Republic of Lithuania who receive per capita income not higher than the level of the state supported income established by the Gov- ernment are entitled to a social benefit. It is equal to 90% of the difference between the state supported income earned by a family or by a single resident and a family’s or a single resident’s monthly income. A family or a single resident is granted compensation for heating of the dwelling, which he/ she has declared as his/her place of residence. One family member or a single resident is compensated expense for heating 38 m2, and every remaining family member – for heating 12 m2 of his/her dwelling. The compensation for the established floor space of dwellings guarantees assistance for the poor living in medium-sized dwellings. Prior to 1 December 2006, a family or a single resident had to pay for the heating of the dwelling the maximum of 25% of the difference between his/her income and 90% of the state supported income. The remaining cost of the heating of the dwelling is compensated from the State budget. This principle of calculation of the compensation safeguards residents from the increase in the cost resulting from the rise in energy prices and in public utility prices. Each poor resident is guaranteed compensation for 1.5 m3 of hot running water and 2 m3 of cold running water consumed per month. The compensation covers the part of the cost of cold running water exceeding 2%, and the part of the cost of hot running water exceeding 5% of the family’s or the single resident’s income. Municipalities shall have the right to replace cash social assistance to families and single residents who fail to perform their undertakings with social assistance in kind (buying products, organising free meals, etc.), to inspect living conditions, owned property and employment, to draw up a living conditions inspection report and use it as the basis for making a decision on the entitlement of the family or single resident to cash social assistance.

Resolution on average prices in the real estate market passed by the Commission on the evaluation of property subject to registration is published on a quarterly basis in the Official Gazette.

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Furthermore, municipalities may, in the manner prescribed by them, allocate cash social assistance from the municipal budgetary resources in other cases not provided for by the Law (to award onetime benefit or social benefit; to compensate dwelling maintenance expenses that are not specified in the Law; to compensate expenses for heating larger useful floor space than the ration fixed by the Law; to cover dwelling indebtedness, etc.). The procedure and amounts of grants (in case of poverty, unemployment, sickness, disability, natural disaster, etc.) assigned from municipal budgets shall be established by municipalities for the residents of their territories, with due consideration to the budget.

4.1.2.2. Changes related to cash social assistance

As a result of the revision of provisions of the Law of the Republic of Lithuania on Cash Social Assistance for Low-Income Families (Single Residents), a new wording of the law was introduced, the title of the law was replaced with the “Law on Cash Social Assistance for Poor Families and Single Residents”, as it more accurately described the purpose of the law, i.e. the assistance was provided not only on the basis of income evaluation but on the evaluation of the existing property as well. As of 1 December 2006, the following shall be entitled to receive the cash social benefit im- mediately upon their registration with the labour exchange rather than upon the expiration of the six-month registration period: persons who will be entitled to the old-age pension within 5 years or sooner; school graduates; persons who lost 45-55% of their capacity for work (Group III invalids); mother/father as soon as the child that she/he raises reaches the age of 3; persons employed according to a fixed-duration, seasonal, temporary or service contract of employment upon the expiration of such contract; persons who were nursing a member of the family; and persons who have been released from places of imprisonment. Socially dysfunctional families shall receive social assistance according to the procedure established by the municipality and in alternative assistance forms, such as food, clothing and other goods, cards for buying in food stores, etc. As a result of the growth of utility prices, compensations received by the poor have to be increased; thus, the economic condition of such residents will be improved, a larger number of residents will be guaranteed minimum standard of living. Therefore, a provision was adopted to compensate expenses for heating exceeding 20% (rather than 25%) of the difference between the income of the family/person and 100% (rather than 90%) of the state supported income. These rates used for the calculation of compensations that are more beneficial to residents, as provided by the legal provision, are effective as of November. Also, the law grants the right to municipalities to use funds from the State budget at their discretion, using the maximum of 2% of the funds allocated for social assistance to support residents in difficult economic condition. The required annual assignment from the State budget for the implementation of new legal provisions is up to LTL 15 million.

Law of the Republic of Lithuania on Cash Social Assistance for Poor Families and Single Residents (No. 73-3352, 2003; No. 130-4889, 2006)

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4.1.2.3. Increase of state supported income (SSI)

In order to reduce social exclusion and the poverty risk and in order to increase social assistance, the amount of the state supported income was increased. The amount of the state support income is the basic amount used for the calculation of cash social assistance rendered to the poor (social benefit and compensation of expenses for dwelling heating), for establishing of the right of students from poor families to receive free meals in schools and the provision with learning aids at the start of a new school year, and for establishing of the right to receive free legal aid, also for the calculation of unemployment insurance benefits provided for the unemployed registered with labour exchanges. In 2006, the SSI was increased twice: on 1 February 2006 the SSI was increased by LTL 10 and amounted to LTL 165 per person per month, while on 1 October 2006 it was increased by LTL 20 and amounted to LTL 185 per person per month10. On 1 January 2007 the SSI was increased by LTL 20 per person, i.e. from LTL 185 to LTL 20511. For this purpose the State budget allocated LTL 20.4 million. The increase of basic amounts of benefits results in the increase of State assistance to the Lithuanian residents.

4.1.3. SOCIAL ASSISTANCE TO SCHOOLCHILDREN

In 2006, free meals for schoolchildren from low-income families in general education schools was provided according to the procedure approved by the order of the Minister of Social Security and Labour and the Minister of Education and Science12. Schoolchildren from families where monthly income per family member did not exceed 1.5 SSI (LTL 247.5 prior to 1 October 2006, and LTL 277.5 as of 1 October 2006) were entitled to receive free meals. These schoolchildren receive free lunch, while schoolchildren from especially poor families receive free lunch and free breakfast. Up to LTL 3 are allocated for lunch of one student per day. The organisation of free meals for schoolchildren is the responsibility of the incorporators of general education schools. In 2002-2006, prior to the start of a new school year, funds from the State reserve fund or as a result of the revision of the State budget have been allocated in order to assist children from low- income families to prepare for school. This assistance (the responsibility of organisation of which

Resolution No. 1 of the Government of the Republic of Lithuania of 4 January 2006 on the Approval of the Amount of State Supported Income (Official Gazette, No. 3-52, 2006) 10 Resolution No. 934 of the Government of the Republic of Lithuania of 25 September 2006 on the Approval of the Amount of State Supported Income (Official Gazette, No. 104-3969, 2006) 11 Resolution No. 1217 of the Government of the Republic of Lithuania of 6 December 2006 on the Approval of the Amount of State Supported Income (Official Gazette, No. 134-5087, 2006) 12 Order No. 64/955 of 16 August 1999 of the Minister of Social Security and Labour and the Minister of Education and Science of the Republic of Lithuania “On the Approval of the Procedure for the Organisation of Free Meals for Schoolchildren from Low-Income Families in General Education Schools” (Official Gazette, No. 72-2245, 1999).

Social Report 2006–2007 105 4 C h a p t e r lies with municipalities) is provided in order for children raised by families to receive education irrespective of the social or economic condition of their parents.

4.1.3.1. Changes related to social assistance to schoolchildren

In order to guarantee assistance to low-income families with schoolchildren and to improve the organisation of social assistance to schoolchildren, the Seimas of the Republic of Lithuania adopted the Law on Social Assistance to Schoolchildren13 on 13 June 2006, effective as of 1 January 2007. This law establishes the regulation of social assistance to schoolchildren from poor families who study in general education schools, vocational schools, pre-school educational establishments and in other places adapted for education according to pre-school or general education programmes. The law seeks to provide schoolchildren with nutritious meals in schools, to guarantee equal social assistance to schoolchildren in schools of all the incorporators, to ensure efficient organisation of social assistance to schoolchildren and the application of state and municipal funds.

4.1.3.2. Key provisions of the Law on Social Assistance to Schoolchildren

The Law provides for the following two types of social assistance to schoolchildren: free meals for schoolchildren and the provision of schoolchildren with learning aids at the start of a new school year. Subject to family income, schoolchildren shall be entitled to: 1. free lunch, if the monthly income per family member is less than 1.5 amount of the SSI14 (LTL 307.50); 2. free lunch and provision with learning aids, if the monthly income per family member is less than 1 amount of the SSI (LTL 205); 3. free lunch and breakfast as well as provision with learning aids, if the monthly income per family member is less than 1 amount of the SSI (LTL 205) and the child is from a socially dysfunctional family.

Considering family living conditions, schoolchildren may also be eligible to receive social assistance in other cases established by the municipality making a decision to provide social assistance to schoolchildren, viz. in case of an illness, an accident, the loss of the breadwinner, if the child is raised by a family with three or more children or if the child’s parents are disabled, etc. They may receive free lunch if the monthly income per family member is less than 2 amounts of the SSI (LTL

13 Law of the Republic of Lithuania on Social Assistance to Schoolchildren (Official Gazette, No. 73-2755, 2006) 14 The amount of the state supported income approved by Resolution No. 1217 of the Government of the Republic of Lithuania of 6 December 2006 on the Approval of the Amount of State Supported Income (Official Gazette, No. 134- 5087, 2006) and effective as of 1 January 2007 is LTL 205 per month.

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410), or free lunch, breakfast and provision with learning aids if the monthly income per family member is less than 1.5 amount of the SSI (LTL 307.5). The right to social assistance to schoolchildren shall be established by the staff of municipalities that are the authorities engaged in the administration of social assistance. As many poor families are the recipients of cash social assistance, the evaluation of the family income according to the provisions of the Law on Cash Social Assistance for Poor Families and Single Residents simplified the procedure of establishing the schoolchildren’s right to receive social assistance and reduced the administration cost.

To ensure nutritious meals in schools and considering the requirements of healthy nutrition as well as the need for the basic learning aids, the law provides for higher amounts of social assistance to schoolchildren. The establishment of daily prices for the acquisition of food products (including the value added tax) for free meals of schoolchildren, the amount allocated for lunch shall be at least 2.6% MSL (LTL 3.38), 1.2% MSL (LTL 1.56) for breakfast, and 6% MSL (LTL 7.8) – for meals in daytime recreation summer camps organised in schools. Schoolchildren shall receive free meals in the school where they study, irrespective of their place of residence. According to the procedure established by the incorporators of schools, free lunch and breakfast may be provided during rest days, public holidays and school holidays during the school year. Schoolchildren who receive free meals during the last month of the school year may be eligible to free meals during the summer holiday in daytime recreation summer camps organised in schools. County governor’s administration and the Ministry of Education and Science shall administer free meals provided for schoolchildren in schools incorporated by the said administration and the said Ministry, while municipal administrations shall administer free meals in schools incorporated by them and in non-public schools incorporated in the their territory. Sets of learning aids shall be compiled for each schoolchild according to his/her individual needs and with due consideration to the number of schoolchildren in a family and the learning aids that they already have. The price of such set (including the value added tax) shall not exceed 120% MSL (LTL 156) per schoolchild per calendar year. Schoolchildren shall receive sets of learning aids by place of residence. Municipal administration shall be responsible for the provision of learning aids to schoolchildren who declared their place of residence or who reside in the territory of such municipality. Funds from the State budget are allocated to finance costs related to the acquisition of food products and learning aids (including the value added tax) during the provision of social assistance to schoolchildren from low-income families. The incorporators of schools shall finance the organisation of free meals of schoolchildren and their provision with learning aids.

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4.1.4. changes in the scope of financing cash social assistance and in the number of its recipients

Figure 4.1.4-1 shows the distribution of expenses of social assistance in 2006.

Distribution of expenses of social assistance 2006

Data of the Ministry of Social Security and Labour Figure 4.1.4-1

Data show that benefits to families raising children paid regardless of family income make up the largest portion of the expenses of social assistance (65%). Social benefits and compensations paid on the basis of family income and property amount to 14% of the overall expenses of social assistance. The total amount of family and child benefits plus other assistance prescribed by the laws amounted to LTL 542.8 million in 2006, and, in comparison with 2005, fell by almost LTL 5.6 million. The decrease of expenses was the result of the decline in the number of the recipients. See Table 4.1.4-1 for the recipients and expenses of social assistance in 2005 and 2006. As compared to 2005, in 2006 expenses related to benefits paid to families with children decreased 1.3% and amounted to LTL 358.2 million. In 2006, the average of 320,600 children (45% of all children in Lithuania) received monthly benefits. During the first quarter of 2007, the average of 344,000 children received monthly benefits, and the average of LTL 23.2 million were paid in these benefits each month. The growth of the MSL on 1 January 2007 resulted in the growth of the amount of benefits related to the said basic amount as well as expenses sustained in relation to these benefits.

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Recipients and expenses of family and child benefits and other assistance in 2005 and 2006

2005 2006 Number of Number of No. Payments Expenses in Expenses in recipients by recipients by million LTL million LTL thousand thousand Total (1+2+3) x 548.4 x 542.8 Benefits to families raising 1. x 363.08 x 358.2 children, including: 1.1. Birth grant 29.5 28.5 29.8 29.8 1.2. Pregnancy grant. 8.1 2.0 7.5 1.9 1.3. Child benefit 323.0 260.73 320.6 254.5 1.4. Benefit to a conscript’s child 0.02 0.036 0.007 0.02 1.5. Guardianship (curatorship) benefit 11.3 62.2 11.7 63.1 1.6. Settlement grant 2.2 7.5 2.0 8,9 Benefits and other types of 2. assistance for low-income x 153.0 151,5 residents, including: 2.1. Social benefit 54.1 52.8 37.8 43.8 Compensation for the cost of 2.2. heating and for the cost of hot and x 30.9 x 30.2 cold running water Lump sum benefits from 2.3. 50.07 6.5 49 8.4 municipal budgets 2.4. Free meals for schoolchildren 115.0 60.7 99 61.06 Assistance for the preparation for 2.5. 56.0 2.0 79 8 a new school-year 3. Funeral grant 43.1 32.3 44 33.1

Data of the Ministry of Social Security and Labour Table 4.1.4-1

Figure 4.1.4-2 demonstrates the change in the number of recipients and expenses related to child benefits in 2000–2006.

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Movement of the recipients and expenses of child benefits in 2000–2006

Data of the Ministry of Social Security and Labour Figure 4.1.4-2

The growth in the number of foster children results in the growth of the number of the recipients and expenses of guardianship (curatorship) benefits. In 2006, guardianship (curatorship) benefits were paid on average to 11,700 people per month and that amounted to LTL 63.1 million, while in 2005 the respective numbers were 11,300 people and LTL 62.2 million. During the first quarter of 2007, LTL 16.8 million were paid in guardianship (curatorship) benefits, and the average number of recipients amounted to 12,100 per month. The growth in the number of the recipients of the guardianship (curatorship) benefits results from the fact that as of 1 January 2007 this benefit is also paid in respect of children placed under the guardianship of a legal entity. As compared to 2005, in 2006, the number of the recipients of settlement grants declined from 2,200 to 2,000. LTL 8.9 million were used for the payment of this grant in 2006. During the first quarter of 2007, the number of the recipients of settlement grants was 800. LTL 1.9 million were used for the payment of this grant during the first quarter of 2007. Expenses for cash social assistance to low-income residents decreased 1% in 2006. In 2006, social assistance, compensations and grants paid from municipal budgets amounted to LTL 82.4 million, including LTL 43.8 million for social assistance, LTL 30.2 million for compensations (LTL 23.9 million for compensations for the cost of heating, LTL 5.3 million for compensations for the cost of hot running water, and LTL 1 million for compensations for the cost of cold running water), and LTL 8.4 million were allocated from municipal budgets for grants. In 2006, social benefits were paid on average to 37,800 persons (1.1% of the permanent residents of Lithuania) per month. The average amount of social benefit paid per family member per month was LTL 96 (LTL 81 in 2005). During the first quarter of 2007, social benefits were paid on average to 38,100 persons (1.1% of the permanent residents of Lithuania) per month. The average amount of social benefit paid per family member per month was LTL 117.

110 Social Report 2006–2007 social support

During the heating season of 2006, the average of 96,100 persons, i.e. 2.8% of all residents of Lithuania, received compensations for the cost of heating per month. The average amount of the compensation for the cost of heating was LTL 56 per person per month. During the first quarter of 2007, the average of 97,000 persons received compensations for the cost of heating per month. Compensations for the cost of hot running water were paid on average to 60,300 persons, and compensations for the cost of cold running water – to 35,800 persons per month. The average amount of the compensation for the cost of hot running water was LTL 9.4 per person per month, and for the cost of cold running water – LTL 3 per person per month. Figure 4.1.4-3 demonstrates the movement of the recipients and expenses of social benefits in 2000-2006.

Movement of the recipients and expenses of social benefits in 2000–2006

Data of the Ministry of Social Security and Labour Figure 4.1.4-3

Figure 4.1.4-3 shows that in 2006 the number of the recipients of the social benefit decreased 30% over 2005. Such decline in the number of the recipients was caused by a significant growth in the income of residents (increase in the minimum monthly wage, the average old-age pension and the average monthly wage), the decline in unemployment, the migration of the population and the application of a more targeted cash assistance provided after the assessment of not only the income but also of the property of the family. In 2006, the same amount of funds as in 2005, viz. LTL 61 million, was allocated from the State budget for free meals for schoolchildren of general education schools, yet the number of schoolchildren eligible for free meals decreased by 16,000 due to the decline in the total number of schoolchildren and unemployment, and the growth of income of the population. In 2006, approximately 99,000 schoolchildren (19% of all schoolchildren of general education schools) per month received free lunch, while approximately 39,000 schoolchildren (7% of all schoolchildren of general education schools) were entitled to free breakfast.

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In 2006, during summer holidays schools organised daytime recreation summer camps in which about 19,000 schoolchildren (4% of all schoolchildren of general education schools) received free meals. To this end, LTL 1.6 million allocated for free meals from the State budget was used. In 2006, LTL 8 million, i.e. four times more as in 2005, was allocated from the State budget for the preparation of schoolchildren from low-income families for a new school year and provision with learning aids; therefore, assistance for the preparation for a new school year was provided to about 79,000 schoolchildren (15% of all schoolchildren of general education schools). On average each student received LTL 104, while in 2005 each student received the average of LTL 40. Assistance was provided in the form of gift coupons to be exchanged into learning aids in the specified shop network, also by individually forming sets of learning aids, and by awarding grants used by schoolchildren for buying learning aids in shops. In 2007, as a result of higher amounts of the assistance provided by the Law on Social Assist- ance to Schoolchildren and a wider circle of persons who may be eligible to receive social assistance to schoolchildren, LTL 92.3 million were allocated for the provision of this assistance, including LTL 81.5 million for free meals and LTL 10.8 million for the provision with learning aids. During the first quarter of 2007, about 88,500 schoolchildren (about 17% of all schoolchildren; 19% of all schoolchildren in 2006) received free meals in schools. The decline in the number of schoolchildren, the growth of income, the decrease of unemployment, and the migration of the population caused the decline in the number of schoolchildren entitled to free meals. In 2006, the expenses of funeral grants amounted to LTL 33.1 million, which was 2.5% increase over 2005. The grant was paid in relation to 44,000 deceased persons. During the first quarter of 2007, expenses of funeral grants amounted to approximately LTL 9.7 million.

4.1.5. improvement of social assistance

The system of the State social assistance will be further developed, the legal framework will be improved, and the amount of benefits will be increased in order for this assistance to reach its immediate target and perform its key function, viz. to help families raise their children and to guarantee certain income for the poor. The payment of child benefits to families with children will be continued in order to guarantee the State assistance to each child under 18 years of age or older, while they are full-time schoolchildren of general education schools. The payment of the child benefit is expected to be extended to children less than 12 years of age, effective as of 1 September 2007. LTL 23.2 million is allocated for the implementation of this provision in 2007, while 107,300 children become entitled to this benefit. To improve the organisation of social assistance to schoolchildren and to support as many families with schoolchildren as possible, the law amending the Law on Social Assistance to School- children is being drafted, which shall grant the right to free meals (lunch) to all schoolchildren in pre- schools and primary schools, and to grant the right to free breakfast in school not only to children from socially dysfunctional families.

112 Social Report 2006–2007 social support

To improve the system of cash social assistance and in order to more reasonably compensate dwelling-related expenses for residents, the system of dwelling-related compensations is expected to be revised to provide compensations not only expenses related to heating, hot and cold running water but other necessary dwelling-related expenses as well.

conclusions

In 2006, the conditions for the provision of social assistance were further specified, and benefit amounts were increased in order to guarantee the financial support of the State and the social security for all families raising children. 2006 saw further implementation of the coherent scheme of cash social assistance on the basis of income and property evaluation, which guarantees the poor the minimum subsistence income to survive on and to pay for basic public utilities. In order to provide assistance to all poor residents, the legal regulation favourable to the recipients was introduced, and the state supported income as well as was amounts eligible for compensation were increased. In 2006, benefits to families raising children paid regardless of family income made up the largest portion of the expenses of cash social assistance (65%). Child benefits were paid to 45% of children of Lithuania (i.e. 320,600 children). In 2006, the average of 1.1% of the residents of Lithua- nia received a monthly social benefit, and 2.8% of the residents of Lithuania – compensation of heating expenses. The growth of income of the population, decline in unemployment, migration of the population and the provision of assistance on the basis of income and property evaluation forced the decline in the number of beneficiaries of social assistance and the decrease of expenses related to this assistance.

4.2. child care

This section presents trends of child care, also child care with due consideration to each age group, and discusses the key issues related to adoption. The final subsection will present the most important issues related to youth policy at the end of 2006 and the beginning of 2007.

4.2.1. Children raised in socially dysfunctional families

According to the data of municipal services (divisions) of children’s rights protection (hereinafter referred to as municipal SCRP), in 2006 the number of socially dysfunctional families in the

Social Report 2006–2007 113 4 C h a p t e r country notably decreased over 2005. In 2005, some 16,361 families raising 36,535 children were included into the register of socially dysfunctional families of municipal SCRP, while in 2006 – 13,496 families with 31,351 children were included into the said register. In comparison with 2005, the number of socially dysfunctional families with children decreased by 2,865, and the number of children raised by such families – by 5,187. 31,351 children raised by socially dysfunctional families amount to 4% of all children residing in Lithuania. The majority of children in socially dysfunctional families are older than 10 years of age.

Children in socially dysfunctional families by age in 2006

Data of the State Child Rights Protection and Adoption Service Figure 4.2.1-1

The decline in the number of socially dysfunctional families was caused by the review and reassessment of the files of socially dysfunctional families included into the register of the SCRP as a result of the new procedure of registration of socially dysfunctional families. Families not meeting the risk criteria provided by the definition of a socially dysfunctional family were excluded from the register. Another reason behind the decline in the number of socially dysfunctional families was the development of social services in municipalities. Services provided by children day care centres are an especially important factor influencing the decrease of the number of socially dysfunctional families. According to the data of the Children and Youth Division of the Ministry of Social Security and Labour, the number of families receiving services from children day care centres has grown. In 2006, about 4,200 children visited children day care centres, including 3,600 children who received social and educational services on a continuous basis. Children day care centres provided services to 2,500 families, including 2,100 families that received such services on a continuous basis. The number of families to whom social services were provided grew 32%, and the number of families receiving social services on a continuous basis grew 40% over 2005.

114 Social Report 2006–2007 social support

For several years already municipal SCRP indicated alcohol abuse to be one of the key reasons for the growth of social dysfunction in families. In 2006, 18,941 children were raised by socially dysfunctional families entered into the register as a result of alcohol abuse. This amounts to 60% of all children in socially dysfunctional families. 9,614 children were older than 10 years of age. Thus, during approximately 50% of all children from such families in their teens and in their early youth (which is an especially difficult period) see their parents abuse alcohol, and this has a negative influence on their further social development. Alcohol abuse is more common in rural areas. According to the data of municipal services of children’s rights protection, 2/3 of all alcohol-abusing socially dysfunctional families (5,565 families out of 8,276) were living in the countryside. Table 4.2.1-1 provides information on reasons why these families came in a view of municipal SCRPs in 2006.

Reasons for the inclusion of families into the register of the SCRP

Number of children No. of Reason 4-6 7-9 families Total: 0-3 y.o. 10-14 y.o. 15-17 y.o. y.o. y.o. Alcohol abuse 8,276 18,941 2,461 3,201 3,665 5,586 4,028 Gambling 15 26 0 3 4 13 6 Lack of parenting kills 2,711 6,951 1,256 1,297 1,299 1,915 1,184 Abuse of children 412 931 106 169 199 287 170 Improper use of benefits 274 819 80 123 206 233 177 Temporary guardianship 584 1,133 216 229 197 297 194 established for the child Restriction of parental authority and the establishment of a 245 398 51 92 86 87 82 permanent guardianship for the child Other 979 2,152 295 352 415 588 502 Total: 13,496 31,351 4,465 5,466 6,071 9,006 6,343

Data of the State Child Rights Protection and Adoption Service Table 4.2.1-1

The summary of the data of the SCRP reveals that the number of socially dysfunctional families and the number of children in such families is gradually decreasing.

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Change in the number of socially dysfunctional families and in the number of children in such families in 2001–2006

Data of the State Child Rights Protection and Adoption Service Figure 4.2.1-2

The Ministry of Social Security and Labour carries out the 2005–2007 National Programme on Children Day Care Centres. Day care centres educate children, help them do their homework, organise leisure activities and provide meals. Parents of children attending these centres receive social services, and they are encouraged to provide better care to their children and take care of their children’s education. Parents receive psychological, pedagogical and legal assistance, and preventive activities are carried out in respect of socially dysfunctional families. In 2005, some LTL 3.1 million were allocated for the financing of activities of day care centres, in 2006 this amount was LTL 5.1 million, while in 2007 this amount is expected to be LTL 7 million.

4.2.2. violence against children

According to the data of municipal SCRP, 1,639 children (i.e. 0.23% of all children) suffered from violence in 2006. The largest incidence of violence against children was established in Utena County (0.63%) and in Vilnius County (0.42%), while the smallest – in Klaipėda County (0.11%). In comparison with the data of 2005 (2,311 children suffered from violence), in 2006 the number of children suffering from violence decreased by 29%.

116 Social Report 2006–2007 social support

2005 2006 Total number Total number Total of children of children County number of % % suffering from suffering from children violence violence Vilnius 163,646 1004 0,54 686 0,42 Kaunas 140,244 341 0,21 170 0,12 Klaipėda 81,118 159 0,16 92 0,11 Šiauliai 79,155 227 0,24 160 0,2 Panevėžys 62,879 145 0,19 86 0,14 Alytus 39,255 83 0,18 61 0,15 Utena 35,017 136 0,32 220 0,63 Marijampolė 43,400 86 0,17 59 0,14 Tauragė 31,265 75 0,2 54 0,2 Telšiai 42,825 55 0,11 51 0,12 Total: 718,801 2311 0,27 1639 0,23

Data of the State Child Rights Protection and Adoption Service Table 4.2.2-1

Meanwhile, information provided by the IT and Communications Department of the Ministry of the Interior about child victims younger than 18 registered by pre-trial investigation authorities in 2006 proves that the total of 1,917 children who suffered from violence were registered in 2006 (1,499 minors suffered physical abuse, 183 suffered sexual abuse, and 235 suffered psychological abuse). Such discrepancy between the numbers provided by the SCRP and by the Ministry of the Interior is caused by the fact that it is the law-enforcement bodies rather than municipal SCRPs that are more likely to be notified about the violence against children. If the child who suffered from violence is properly represented by his/her parents or by other legal representatives, the municipal SCRP may not be informed about the violence even during the pre-trial investigation. According to the data of municipal SCRPs, the majority (55%) of all cases of violence is physical abuse. 37% of all cases of violence is psychological abuse, and 8% is sexual abuse. The analysis of the gender distribution of violence shows that boys are more likely to fall victims to violence than girls. In 2006, 550 boys and 343 girls suffered from physical abuse; meanwhile, girls more often became victims of sexual abuse than boys.

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Violence against children by gender

Data of the State Child Rights Protection and Adoption Service Figure 4.2.2-1

The analysis of the information about the incidence of violence against children in the population shows that the incidence of violence in urban and rural areas has remained almost the same for several years already.

Incidence of violence against children in urban and rural areas

Data of the State Child Rights Protection and Adoption Service Figure 4.2.2-2

Municipalities organise assistance to children suffering from violence in Lithuania. Social support is extended to the family, and the child is consulted by a psychologist and a social pedagogue

118 Social Report 2006–2007 social support at school. The psychologist’s consulting is usually provided to urban children, and it is not possible to provide such assistance to children and his/her family living in a rural area. According to the data of the municipal SCRP, children who suffered from violence as well as their families received assistance 2,404 times in 2006. In cases of violence against children complex specialist assistance was usually provided to a child (629 times). 202 times this assistance was rendered to children, and 427 times – jointly to children and their family. During the last year, the psychologist’s consulting was provided far less frequently, viz. in 528 cases. Social support was extended to 107 children and 428 families. The Ministry of Social Security and Labour implements the 2005–2007 National Programme for Prevention of Violence Against Children and Support for Them. This Programme aims at protecting children from various types of violence, to reduce the incidence of violence, and to develop the violence-free society. Measures of the Programme target children who can fall victims or who fell victims of violence, also their families and minor abusers. In 2005, some LTL 500,000 were allocated from the State budget for the implementation of the Programme; in 2006 this amount was LTL 870,000, while in 2007 this amount is expected to be LTL 1 million. As part of the implementation of the Programme, annual competitions for projects related to short-term or long-term complex assistance to abused children and their families are announced. In 2006, 15 institutions of Lithuania received support, and LTL 200,000 were assigned to co-finance their projects. The implementation of projects resulted in the provision of psychological, legal and social assistance to more than 700 abused children. In 2007, 10 projects received support, and LTL 195,000 were assigned to co-finance them. Each year, trainings aimed at the improvement of practical skills of specialists providing services to abused children are organised. In 2006–2007, some 200 specialists were trained how to provide efficient assistance to abused children and their families. The growth of the identified cases of violence shows that competent specialists learned to better identify and assess the child’s condition. In 2007, specialists of children’s rights protection underwent practical training Harm of Information Technologies to Children.

4.2.3. trends in child care

Department of Statistics of Lithuania informs that in 2006 there were 718,800 children in Lithuania, and 13,337 of them (1.7% of all children living in Lithuania) were without parental care. In 2005, children without parental care amounted to 13,313. Thus, the number of children without parental care slightly grew in recent years. About 60% of 13,337 children without parental care are placed with foster families, and as many as 37% are in child care institutions. The placement of a child without parental care with a child care institution should be a transitional and temporary measure while seeking for a long-term solution, i.e. the biological family reintegration or the adoption of the child. The placement with a child care institution is the least suitable protective measure, especially if it becomes long-term; therefore, it must be ensured that not a single child stays in a child care institution longer than it is necessary.

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Child care in 2005 and 2006

Data of the State Child Rights Protection and Adoption Service Figure 4.2.3-1

A foster family is one of the best forms of alternative care for children without parental care. According to the data of municipal SCRP, in 2006, there were 7,663 children without parental care in the country who were provided with care in foster families. 5,853 foster families took care of these children. The majority of children in foster care (3,541) were raised by their grandparents. 505 children were taken care of by their elder sister/brother. 1,502 children were taken care of by their aunt’s/uncle’s family. 2,115 children were taken care of by families with whom they were not related by blood.

Children in foster care and foster families on 31 December 2006

Data of the State Child Rights Protection and Adoption Service Figure 4.2.3-2

120 Social Report 2006–2007 social support

In 2006, 3,006 children were deprived of parental care. The number of children without parental care is slightly decreasing in comparison with 2005 and 2004. However, it is the result of not only the improving social support extended to families but also of the growing migration and decreasing birth rate.

Reasons for the deprivation of parental care

No. Reasons for the deprivation of parental care 2004 2005 2006

1. Parents deceased 242 259 288

2. Parents or immediate family unknown (foundling) 4 27 1

3. Parents are absent; their search was announced 74 53 36 Court declared the parents deceased or their whereabouts 4. 1 15 1 unknown 5. Parents declared to be incapable 9 23 9 Parents temporarily cannot take care of the child due to their 6. 359 411 327 illness, arrest, imprisonment, etc. Parents are not interested in their child, do not take care of him/her, the upbringing of the child is improper; parents use physical or psychological violence against the child, which 7. endangers the child’s physical, mental, spiritual and moral 2,087 1,992 1,733 development and safety; the child is taken from the family following the procedure established by the law (until the child is separated from his/her parents by the court’s order) The child is separated from his/her parents following the 8. 491 429 52 procedure established by the law The parental authority of the child’s parents is temporarily or 9. permanently restricted following the procedure established - - 559 by the law 10. Total 3,267 3,209 3,006

Data of the State Child Rights Protection and Adoption Service Table 4.2.3-1

In recent years, the number of people emigrating from Lithuania has grown considerably. Often families intending to get employment abroad leave their children behind in the care of their immediate family or friends. According to the data of municipal SCRP, on 31 December 2006 there were 343 children in Lithuania for whom care was provided as a result of their parents’ emigration from Lithuania. These children included 163 girls and 180 boys. In recent years, the number of children raised in social families has decreased. The legal framework remains incomplete, and the issue of the establishment of new social families still has to be settled.

Social Report 2006–2007 121 4 C h a p t e r

4.2.4. adoption

In 2006, 99 Lithuanian families adopted 106 children without parental care. In 2005, 82 Lithua- nian families adopted 88 children without parental care. It is the largest number of adopted children over nine years.

Number of children adopted in 1998-2006

1998 1999 2000 2001 2002 2003 2004 2005 2006 57 43 37 56 75 61 93 88 106

Data of the State Child Rights Protection and Adoption Service Table 4.2.4-1

The continuous and systematic building of public awareness about child care and adoption (the website of the State Child Rights Protection and Adoption Service was developed, posters, leaf- lets and a book was published, open days and meetings were organised, etc.) largely influenced the growth of adoption. In 2006, citizens of the Republic of Lithuania adopted 59 girls and 47 boys, in 2005 – 46 girls and 42 boys, and in 2004 – 55 girls and 38 boys. Recently, the number of Lithuanian families adopting two children has grown. In 2006, seven Lithuanian couples adopted two children each; in 2005, six Lithuanian couples adopted two children each, and there were no such couples in 2004. Prior to adoption, 50% of these children were placed in the care of their adoptive parents, 35% were raised in care homes for infants with development disorders, and 15% were raised in other child care institutions. More and more Lithuanian residents who have their biological children wish to adopt children without parental care. In 2005, there were 12 such families, while in 2006 this number grew to 18. Also, the number of families adopting a second child is growing: there were only three such families in 2005, while in 2006 this number grew to 13. In 2006, 69 children were adopted by 64 spouses of their biological mother/father. In 2005, 65 children were adopted by 62 spouses of their biological mother/father. As in previous years, the spouse of the children’s mother rather than the spouse of the children’s father was more likely to adopt the children. It is the result of the established family traditions that the child usually stays with the mother upon the divorce of his/her parents; when the mother remarries, the issue of legal wholeness of the family is settled again. In 2006, 88 families of foreign nationals and of the citizens of the Republic of Lithuania permanently residing abroad adopted 125 children (78 boys and 47 girls). The reference year saw the highest number of children adopted by foreign nationals during the last five years. In 2005, 76 foreign families adopted 108 children; in 2004, 72 foreign families adopted 103 children, and 72 foreign families adopted 104 children in 2003. As in previous years, the majority of children were adopted by Italian, American and French families in 2006.

122 Social Report 2006–2007 social support

The comparison of data of 2005 and 2006 shows that the number of children adopted by Italian families experienced the highest growth (16 more children adopted than last year), while the number of children adopted by German families declined the most (4 children less adopted than last year). The number of children adopted by American, French and Swedish families remained practically the same in 2006 as in 2005. The growth in the number of children adopted by Italian families can be explained by the fact that currently four Italian institutions authorised to act in relation to inter-country adoption in the Republic of Lithuania are very active in the field of adoption of children with special needs. Italian families choose Lithuania because it is a Christian country in Europe that has similar traditions and is not very far away from Italy. In 2006, more than half of the children were adopted as sibling groups (68 children were adopted by 31 family). In 2006, six foreign families (two Italian and two American families, one French and one Swiss family) adopted sibling groups consisting of three siblings (the total of 18 children), 25 families adopted sibling groups consisting of two siblings (the total of 50 children). In 2005, 57 children were adopted as sibling groups by 24 families. This year the number of adopted sibling groups grew over the last year.

Groups of children adopted in 2006

Data of the State Child Rights Protection and Adoption Service Figure 4.2.4-1

In 2006, 73 adopted children out of 125 were children with special needs; in 2005, 51 adopted children from 108 were with special needs. Therefore, we may state that the number of the adoption of such children grew significantly in 2006. The law passed on 17 July 2006 restricting the entry of families wishing to adopt children under 6 years of age (except special needs children) into the waiting list of foreign nationals or of Lithuanian nationals permanently residing abroad should speed up the process of adoption of special needs children and cause the increase in the number of such adoptions. As in 2005, the majority of children adopted by foreign nationals or of Lithuanian nationals permanently residing abroad in 2006 were living in child care institutions (78 children), and 44 children were living in infants homes. Out of 44 children adopted from infant homes, 10 were raised in the Home for Infants with Development Disorders of Vilnius County, 9 – in Kaunas Lopšelis Clinics

Social Report 2006–2007 123 4 C h a p t e r of Child development, 9 – in the Home for Infants with Development Disorders of Klaipėda County, 7 – in the Home for Infants with Development Disorders of Šiauliai County, 6 – in the Home for Infants with Development Disorders of Alytus County, 2 – in Šilutė Ąžuoliukas Kindergarten, and 1 – in Trakai Obelėlė Kindergarten. Three children were in foster care by guardians who agreed to adopt them. In 2006, 125 children were adopted by 86 married couples and 2 single women. The average age of men and of women who adopted children during the reference period was the same, 41-45 years of age. In 2006, 11 men and 4 women were older than 50 years of age; therefore, the court applied the exception provided by Article 3.210(1) of the Civil Code of the Republic of Lithuania allow- ing persons older than 50 years of age to adopt. Such exceptions are usually applied to the adoption of older children. As of 1 August 2006 the acceptance of applications from foreign authorities requesting the authorisation in respect of intercountry adoption in the Republic of Lithuania was suspended. This prevented the growth of the number of authorised foreign adoption authorities, which threatened the quality of intercountry adoption and the proper monitoring of these authorities. At the end of December 2006 there were 16 foreign adoption organisations authorised in Lithuania, 6 adoption organisations from the US, 4 from Italy, and one adoption organisation from Sweden, France, Germany, Spain, New Zealand and Canada.

4.3. YOUTH POLICY

In order to improve the formation and implementation of the youth policy, the State Council of Youth Affairs was reorganised into the Youth Affairs Department under the Ministry of Social Se- curity and Labour (hereinafter referred to as the Department) in 2006. The Department is in charge of the implementation of programmes and measures of the state youth policy, analyses the condition of youth and youth organisations in Lithuania, activities of municipal authorities and institutions in the field of youth policy, and carries out other activities related to youth and youth organisations. The Council of Youth Affairs is formed under the Youth Affairs Department according to the principle of equal partnership; it consists of representatives delegated by various state authorities, institutions and the Council of Lithuanian Youth Organisations. In November 2006, the General Assembly of the European Youth Forum was held in Vilnius in which some 250 young people participated representing more than ninety major European youth organisations from approximately fifty European countries. Decisions made by the General Assem- bly will influence the actions of the European Union, the Council of Europe and other institutions in the field of youth policy. Lithuania joined the European “All Different All Equal” European Youth Campaign organised by the Council of European, the European Commission and the European Youth Forum; since

124 Social Report 2006–2007 social support

June 2006 this campaign is being implemented in Lithuania. The principal goal of the “All Different All Equal” Campaign is to encourage and enable young people to participate in the development of peaceful communities based on diversity and social inclusion where respect, tolerance and mutual understanding would prevail. To ensure the development of youth policy on the international, national and regional level and to provide conditions for the youth to be an active part of the society, the draft programme of the development of youth policy in municipalities has been drawn and presented to the Government of the Republic of Lithuania.

4.4. SOCIAL SERVICES AND SOCIAL WORK

Following effect of the Law on Social Services, the organizational and management fundamentals of social services are changing. The legal acts were prepared in order to regulate organization and management fundamentals of new social services as well as principals pertaining to provision, allocation, and receipt of social services. In this chapter we shall briefly review the changes in social services that occurred over the last year as well as issues pertaining to implementation of the Law on Social Services.

4.4.1. CHANGES IN SOCIAL SERVICES

In 2006, social services in stationary and non-institutional institutions, day care centres, crisis centres, and shelters were provided to approx. 127 thousand of residents. 13 thousand of disabled and elderly persons received services at their home. Yet another 100 thousand of residents were provided free-of-charge nutrition services, provision with the most essential items, coupons for public baths, and transport services. The number of social services increased twice over the last three years. Development of non- institutional services is especially important as such services provide people with a possibility to receive social services in a community setting without taking up residency in a social care institution but rather remaining at their home. The ration of the number of non-institutional social services’ recipients and the number of institutional social services’ recipients in 2006 amounted to 87:13 percent, meanwhile in 2003 this ratio amounted to 75:25 percent.

Social Report 2006–2007 125 4 C h a p t e r

Dynamics of recipients of social services in social service institutions and at person’s home in 2003–2006,

Data of Department of Statistics to the Government of the Republic of Lithuania Picture No. 4.4.1-1

There was a significant increase in the number of day care centres and persons that receive services in these centres. The number of day care centres for disabled increased form 59 institutions in 2003 to 92 institutions in 2005. In 2003, 17.5 thousand of adults and 0.9 thousand of children received these services and in 2005 these numbers amounted to respectively 34.6 thousand and 1.7 thousand. There was a rapid increase in a number of child day care centres. If in 2001, there were 17 child day care centres operating in 2001 currently the number of such centres exceeds 120. In 2006, according to the Catalogue of Social Services (Official Gazette, 2006, No. 43-1570) classification of social service institutions changed. Day care centres – according to the nature of their activity as well as provided services – have been grouped into social day foster care centres, social day care centres, and community centres. In 2006, these centres provided social services to more than 90 thousand people, i.e. 2.64 times more than in 2003.

126 Social Report 2006–2007 social support

Dynamics of day care centres‘ attendance in thousands

Data of Department of Statistics to the Government of the Republic of Lithuania Picture No. 4.4.1-2

In order to encourage development of social services for families and children at social risk, the Social Services Infrastructure Development Programme for 2007 contains a priority for establishment of child day care centres, family support centres, family support bodies, and other social care centres. The aforementioned Programme also contains a priority for provision of support to rural community centres. LTL 5 million were allocated from the state budget for this Programme in 2007. In 2007, the Social Services Infrastructure Development Programme funds are used for financing 32 projects that were selected during a tendering procedure. Most of the selected projects are focused on child day care centres, support for families, and development of community institutions. The projects will be delivered in 26 municipalities, 13 of them shall focus on families and children at social risk, 11 – development of community institutions, 3 – adults at social risk, 4 – disabled, and 1 – elderly people.

4.4.1.1. Continuity of the social services infrastructure development programme

The basic infrastructure of social services in Lithuania has been already designed, although social services are still lacking. There is particular need of community centres, social day foster care centres, and temporary accommodation centres. The current system of social services is not yet well enough adapted for and focused on help for families that provide home care for elderly or disabled

Social Report 2006–2007 127 4 C h a p t e r people or children. Taking into account the remaining high demand for social services and in order to ensure continuity of the programme, the Social Services Infrastructure Development Programme shall be continued until 200915. The Social Services Infrastructure Development Programme for 2007–2009 (hereinafter-Pro- gramme) is a continual programme, which is being implemented since 1998 in order to encourage development of social service institutions. The aim of the Programme is to improve the infrastructure of social services in communities, encourage provision of good quality social services, increase their accessibility for families and children at social risk as well as disabled and elderly people utilizing all possible resources for this purpose, i.e. human, financial, and material resources. The Programme was aiming to create conditions to develop the infrastructure of social services by encouraging collaboration between municipalities, non-governmental organizations, foreign partners, as well as private and public sectors; and establishing new type and progressive form social institutions; as well as ensuring residents with a possibility to use social services of improved quality. During implementation of this Programme, projects designed by municipalities and non-governmental organizations are selected and partially funded. The funds allocated for the Programme are used in order to finance projects selected according to tendering procedure and related to construction, reconstruction, and big repairs as well as running repairs of existing social service institutions and coverage of main measures as well as other acquisition expenses in order to modernize social services institutions as well as their material base.

4.4.2. IMPLEMENTATION OF THE LAW ON SOCIAL SERVICES. DEVELOPMENT AND IMPROVEMENT OF LEGAL BASE

In order to encourage and activate social services as well as social work in municipalities, a new Law on Social Services was approved in 2006 and respective legal acts were prepared. The main objective to be achieved by the new Law on Social Services is to reorganize the system of social services in a way that would provide for legal, administrative, and financial preconditions to plan, provide, and organize social services in a community and that the social assistance would be more efficient as well as would encourage the person to actively seek for methods of self-help. Empowering municipalities to organize provision of social services to all residents within a municipality; helps strengthening financial capacity of municipalities to organize social services with communities. The Methodology for Financing of Social Services and Calculation of Funds16 provide detailed provisions of the Law on Social Services, which aim to unify the procedure for financing of

15 Resolution of the Government of the Republic of Lithuania No. 1000 On approving of the 2007–2009 Social Services Infrastructure Development Programme as of 12 October 2006 (Official Gazette, 2006, No. 111-4213). 16 Resolution of the Government of the Republic of Lithuania No. 978 On approval of the Methodology for Financing of Social Services and Calculation of Funds as of 10 October 2006 (Official Gazette, 2006, No. 110-4163).

128 Social Report 2006–2007 social support social services irrespective of subordination of institutions that provide these services. Both the Law on Social Services and the aforementioned Methodology provide that one of the essential regulatory amendments of the current system of social services is the transfer from support provided to care institutions – which differed depending on their subordination – to financing of services; this is achieved by allocating state targeted grants to municipalities and utilizing them for provision of services in institutions, irrespective of their subordination. This creates opportunities to all service providers – non-governmental organizations, county institutions, and municipal institutions – to apply unified financing conditions, the main one of which is related to provision of high-quality service that corresponds to requirements to all residents of the state. Since 1 January 2007, targeted grants were allocated for municipalities from the state budget in order to ensure social care of people with heavy disability as well as provide foster care for children who were deprived of parental care, and organize social care for families at social risk.

The state targeted grants allocated for social services in 2007, in thousands of LTL

Data of the Ministry of Social Security and Labour Picture 4.4.2-1

In 2007, municipalities received an additional LTL 13.5 million for provision of social care (both for care at home and care at an institution) for people with heavy disability and additional amount of approx. LTL 12 million were received for foster care of children who were deprived of parental care. Also, approx. LTL 8 million were allocated from the state budget in order to retain 556 social workers in municipalities in order to work with families at social risk that have children, or children of which have been assigned a temporary foster care. Reinforcement of work with families at social risk should decrease the demand for long-term child foster care and encourage new alternative for foster homes as well as forms of social services. According to data collected by the Ministry of Social Security and Labour from municipalities, on 1 May 2007, municipal social assistance departments, elderships, and institutions subordinated to municipalities employed 550 social workers (507 full-time employees). These employees were

Social Report 2006–2007 129 4 C h a p t e r visiting approx. 12 thousand families with unattended children, facing alcohol abuse problem, and misusing of benefits. Employees were providing these families with social assistance focused on social skills training for adult family members. This assistance was provided for families with children taken away and accommodated in child foster homes. Most of these employees (75 percent) work in rural areas. On the basis of the Law on Social Services, these services are co-financed from state and municipal budget funds. Understanding the importance of social work with families at social risk, many municipalities are planning to give more attention to social work with families at social risk since 2007. Possibilities are researched to establish Family Support Services, install work-places in elderships, and provide social workers with vehicles (funds unutilized for financial assistance may be used for acquisition of vehicles for social service institutions). It is expected that state targeted grants allocated for municipal budgets shall facilitate equal opportunities for municipalities to organize services. This shall increase accessibility of social services to all residents of the state. At the same time, there will be a more rational utilization of state funds allocated for social services. Allocation of the state targeted grants shall encourage municipalities to search for institutional care alternatives and less expensive forms of services. As municipalities are designing such alternatives for long-term institutional social care – such as social day foster care at home or at a day centre and short-term social foster care – opportunities shall be created for families currently attending to disabled and elderly people to participate in a labour market. In order to assist municipalities in systematic and integrated assessment of social service needs, planning realistic scope of development and stages, and anticipating services that might be organized in county chief institutions, at the end of 2006 the Government approved the Social Serv- ices’ Planning Methodology17, according to which municipalities shall have to prepare Social Services’ Plans on the annual basis. In 2008, these plans shall have to assess whether the social services are provided to the sufficient level; this assessment shall be made on the basis of the state social services’ development normatives, measures shall have to be anticipated in order to increase accessibility of services, and reflect service development priorities, etc. One of the aforementioned plan design and implementation principles is publicity, discussion-based collaboration between municipal authorities, community, and non-governmental organizations, and monitoring of service provision, etc. The Form of Social Services’ Plan and Criteria for Evaluation of Effectiveness of Social Serv- ices18 as well as Social Services’ Development Normatives19 were designed in order to facilitate preparation of the Social Services’ Plan. The process pertaining to planning of social services should not only ensure accessibility of necessary social services but also promote understanding of importance of social services as well as their impact on life of a community, and encourage proactiveness of a community. Considering provisions of the Law on Social Services, a methodology was designed for municipalities to measure the need for social foster care of a child at social risk or a child deprived of

17 Resolution of the Government of the Republic of Lithuania No. 1132 On Approving Social Services’ Planning Meth- odology as of 15 November 2006 (Official Gazette, 2006, No. 124-4705). 18 Order of the Minister of Social Security and Labour No. A1-104 On Approval of the Form of Social Services’ Plan and Criteria for Evaluation of Effectiveness of Social Services as of 12 April 2007 (Official Gazette, 2007, No. 42-1608). 19 Order of the Minister of Social Security and Labour No. A1-185 On Approval of Social Services’ Development Nor- matives as of 4 July 2007 (Official Gazette, 2007, No. 76-3031).

130 Social Report 2006–2007 social support parental care20, disabled child21; also, requirements for qualifications of social workers and social worker assistants were specified22. In order to estimate work-time costs of long-term, short-term, or social day foster care staff members according to separate groups of social assistance recipients, Normatives for Work-Time Costs of Employees Providing Social Foster Care23 were designed and approved. These normatives are recommended to be applied while defining the structure and number of staff members that provide social assistance (social workers, social worker assistants, social pedagogues, psychologists, and health care specialists) according to separate groups of social assistance recipients. While improving professional development opportunities for social workers according to set requirements24, qualification advancement programmes and social work methodology centres were selected and approved25. In these methodological centres – which are located in various cities of Lithuania – social workers shall be able to advance their qualification by choosing training according to certain parts of a programme. Professional development programmes for social workers are designed in order to extend and upgrade knowledge, abilities, and practical skills required for activity of social workers. After the initial certification of social workers, their knowledge and practical skills are further assessed and certified by awarding higher and extending existing qualification categories. Certifica- tion of social workers is delivered by territorial certification commissions established on the territorial principle in Alytus, Kaunas, Klaipėda, Panevėžys, Šiauliai, Utena, and Vilnius counties. The existing qualification category impacts on wages of the social worker and career opportunities. It is anticipated that respective management categories will have to be obtained by managers of social institutions during certification. This will ensure that managers of social institutions have required competence and qualifications.

20 Order of the Minister of Social Security and Labour No. A1-179 On Approval of Methodology for Measuring the Need for Social Foster Care of a Child at Social Risk or a Child Deprived of Parental Care as of 27 June 2007 (Official Gazette, 2006, No. 73-2795). 21 Order of the Minister of Social Security and Labour No. A1-255 On Approval of Methodology for Measuring the Need for Social Foster Care of a Disabled Child as of 9 September 2007 (Official Gazette, 2006, No. 97-3793). 22 Orders of the Minister of Social Security and Labour No. A1-92 on amendment of the Order of the Minister of Social Security and Labour No. A1-92 On Approval of Particulars Pertaining to Qualification Requirements for Social Workers and Social Worker Assistants, Procedure for Professional Development of Social Workers and Social Worker Assistants, and Procedure for Certification of Social Workers: No. A1-185 as of 5 July 2007 (Official Gazette, 2006, No. 79-3123), No. A1-216 as of 31 July 2006 (Official Gazette, 2006, Nr. 86-3375), No. A1-237 as of 22 August 2006 (Official Gazette, 2006, Nr. 91-3586), No. A1-123 as of 8 May 2007 2006 (Official Gazette, 2007, No. 53-2065). 23 Order of the Minister of Social Security and Labour No. A1-317 On Approval of Normatives for Work-Time Costs of Employees Providing Social Foster Care as of 30 November (Official Gazette, 2006, No. 132-5011). 24 Order of the Minister of Social Security and Labour No. A1-217 On Approval of Professional Development Pro- grammes for Social Workers and Tender Provisions for Selection of Social Work Methodology Centres as of 31 July 2006 (Official Gazette, 2006, No. 86-3376). 25 Order of the Minister of Social Security and Labour No. A1-76 On Approval of Professional Development Pro- grammes for Social Workers and Social Work Methodology Centres as of 20 March 2007 (Official Gazette, 2007, No. 34-1261).

Social Report 2006–2007 131 4 C h a p t e r

4.4.3. CONCLUSIONS

While expanding the network of non-institutional services, more and more people have a possibility to receive required services in a community. Establishment of non-institutional social services – social day foster care centres, independent life homes – is given a priority in the EU structural funds for 2007–2013. It is expected to create possibilities to not only ensure the provision of demanded social services but also organize preventive services on a municipal level. Communities and non-governmental organizations are encouraged to take more active participation in provision of social services. This is expected to enlarge the network of social service providers as well as shape the attitude of community members towards importance of social services and self-help.

4.5. SOCIAL PROTECTION OF AGGRIEVED PERSONS AND ITS IMPLEMENTATION

Social protection of persons who suffered from occupations is guaranteed by special laws and other acts of law. In 2006, award and payment of compensations and other benefits to resistance movement participants, families of resistance casualties, and other persons aggrieved mostly due to occupations. Amounts of these benefits were defined considering financial possibilities of the state budget, although they should not be viewed as settlement with the citizens of the Republic of Lithua- nia for damages made during the occupation regime. Moreover, according to general provisions of the acts of law, settlement for damages should be made by natural person or legal entity that was found guilty (just as the German Federation paid compensations for involuntary workers who worked in companies and agriculture of Nazi Germany during the Second World War). Compensation for damages made to Lithuania during the Soviet occupation and related damages were demanded during the Nation’s referendum as of 14 June 1992, and the most important act of law, which is based on the will of the Nation expressed during the referendum, is the Law on Compensation of Damage Resulting from the USSR Occupation Republic of Lithuania as of 13 June 2000, which obligates the Govern- ment to initiate negotiations and constantly endeavour that the Russian Federation on the basis of its international legal liability would deliver the reparation duty and compensate the people of Lithuania and the state of Lithuania the damage made during the USSR occupation. As long as compensation for occupation damages bring no results, the burden of the state support for persons aggrieved lies on the shoulders if the State Budget of Lithuania. The state support is provided in the form of various benefits, striving to at least partially compensate the persons aggrieved as well as their family members due to participation in resistance movement, serving in mandatory military service in the Soviet army, liquidating the outcomes of the Chernobyl Power Plant accident, standing up for independence of the Republic of Lithuania on 11-13 January 1991, and during the afterwards aggression of the USSR. Besides, implementa-

132 Social Report 2006–2007 social support tion of the programme for return of political prisoners and exiles to Lithuania for 2002-2007 was continued.

4.5.1. THE STATE SUPPORT FOR PARTICIPANTS IN RESISTANCE OF 1940–1990 AND THEIR FAMILIES

The state support for families of killed resistance participants or those disabled during armed resistance as well as for burial of voluntary soldiers by the state funds continued as per the Law of the Republic of Lithuania on the State Support for Families of Resistance Participants Killed during Occupation of 1940-1990 and the Law of the Republic of Lithuania on the State Support for Participants of Armed Resistance. The voluntary soldiers disabled during armed resistance combats, interrogation, or imprisonment are provided with a lump-sum benefit amounting to LTL 5600. For persons to whom incapacity for work is either fully or partially recognized (until 1 July 2005 – invalids) due to armed resistance combats, interrogation, or imprisonment greater lump-sum benefits are established. For those who were recognized to have lost 75-100 percent of their capacity for work (until 1 July 2005 – 1st group invalids) are awarded lump-sum benefits amounting to LTL 14,400; for those who were recognized to have lost 60-70 percent of their capacity for work (until 1 July 2005 – 2nd group invalids) – LTL 11,520; for those who were recognized to have lost 45-55 percent of their capacity for work (until 1 July 2005 – 3rd group invalids) – LTL 8,640. Upon death of a voluntary soldier, 20 minimum standards of living (MSLs) were paid (in 2006, MSL amounted to LTL 125). Lump-sum benefits for families of voluntary soldiers and struggle for freedom participants killed in action while fighting for freedom and independence of Lithuania or during imprisonment were paid after indexing In 2006, respective amounts of benefits were defined considering the inflation of 1.2 percent registered in 2004. In 2006, LTL 1305.1 thousand of the stage budget funds were used for these benefits and support was awarded to 175 families. All in all during the period of 1999-2006 LTL 56.33 million were paid for lump-sum benefits from the state budget providing the state support for families of killed resistance participants or those disabled during armed resistance as well as for burial of voluntary soldiers by the state funds. The support was provided to 3516 families.

4.5.2. THE STATE SUPPORT FOR PERSONS AGGRIEVED DUE TO SERVICE IN THE SOVIET ARMY AND THEIR FAMILIES

Lump-sum compensations were continued to be paid to persons aggrieved due to service in the Soviet army as well as families of persons killed during the aforementioned service (or later deceased due to disease related to this service). This is provided in the Law of the Republic of Lithuania on the Social Support for Persons Disabled while in Mandatory Military Service in the Soviet Army and to Families of Persons Killed in this Army (22 July 1945 – –31 December 1991). Families or persons killed or later deceased due to diseases related to military service, lump-sum compensations amounting to LTL 14,400 are paid. For persons to whom incapacity for work is either fully

Social Report 2006–2007 133 4 C h a p t e r or partially recognized (until 1 July 2005 – invalids) due to disability or disease related to military service or military training, are awarded the following lump-sum compensations: for those who were recognized to have lost 75-100 percent of their capacity for work (until 1 July 2005 – 1st group invalids) – LTL 7200; for those who were recognized to have lost 60-70 percent of their capacity for work (until 1 July 2005 – 2nd group invalids) – LTL 5760; for those who were recognized to have lost 45-55 percent of their capacity for work (until 1 July 2005 – 3rd group invalids) – LTL 4320. And – as an exception – for persons who were in service of the Soviet army may be recognized to have lost 20-40 percent of capacity for work and a lump-sum compensation of LTL 2880 is awarded in this case. In 2006, LTL 266, 6 thousand of the state budget funds were used for payment of lump-sum compensations and support was provided to 175 beneficiaries. During the entire validity period of the law – since 1995 to the end of 2006 – LTL 34 million from the state budget funds were paid to persons who suffered health damages during the time of military service in the Soviet army as well as to families of persons killed during this service, and the support was provided in 4353 cases.

4.5.3. THE STATE SUPPORT FOR INDEPENDENCE DEFENDERS AGGRIEVED DUE TO 11–13 JANUARY 1991 AND DURING THE AFTERWARDS AGGRESSION OF THE USSR, AND THEIR FAMILIES

Compensation for heating, hot water and wastewater, gas, solid and liquid fuel, electricity, subscription of fixed-line telephone, and other services was continued for families of independence defenders who suffered during the events of 11–13 January 1991 and during the afterwards aggression of the USSR. Recipients of these compensations are families of killed independence defenders, also independence defenders to whom incapacity for work is either fully or partially recognized (until 1 July 2005 – invalids) due to events of 11–13 January 1991 and during the afterwards aggression of the USSR, as well as independence defenders who were seriously or rather seriously injured during events of 11–13 January 1991 and during the afterwards aggression of the USSR. Last year, in order to cover expenses related to tax advantages including 2 percent administrative expenses, municipalities were allocated LTL 0.5 million (LTL 481.6 thousand) from the state budget and LTL 1.3-2 thousand were allocated for families of aggrieved persons for housing expenses. Support was provided to 280 families.

4.5.4. THE STATE SUPPORT FOR POLITICAL PRISONERS, EXILES, AND THEIR FAMILIES RETURNING TO RESIDE IN Lithuania

In 2006, implementation of the programme for 2002–2007 pertaining to return of political prisoners and exiles to Lithuania approved by the Government of the Republic of Lithuania as per Resolution No. 320 on the Programme for 2002–2007 Pertaining to Return of Political Prisoners and Exiles and their Family Members to Lithuania as well as Particulars of the Procedures Pertaining to

134 Social Report 2006–2007 social support

Provision of Residential Premises on the Leasing Basis for Political Prisoners and Exiles Returning for Permanent Residency to Lithuania (hereinafter – Programme) as of 5 March 2002. In 2006, a possibility was created for 104 returning families of political prisoners and exiles by providing them with apartments. LTL 7.407 million were allocated for acquisition of apartments for these persons. The state support from the budget of the Republic of Lithuania for implementation of the social integration measures set out in the Programme amounted to LTL 1.384 million. This support is provided for returning persons In order to cover the following expenses: resettlement expenses, transportation of disabled persons returning to Lithuania, lump-sum settlement benefits, funding of Lithuanian language courses, vocational qualification or retraining courses, partial coverage of heating expenses in temporary housing centre of returning exiles, funding for transportation of remains of persons repressed, deceased, or killed in imprisonment and exile locations in the territory of the former USSR to Lithuania, and other. During the period of 1992–2006, LTL 89.63 million were allocated and used for acquisition of apartments for returning persons, out or which: LTL 52.98 million form the state budget funds and LTL 36.65 million from the loan of the Council of Europe Development Bank. These funds were used to provide 1814 returning families with apartments (Picture 4.5.4-1). On 1 February 2006, there were 501 families of political prisoners and exiles – wishing to return to Lithuania and be provided with housing – were registered in municipal lists (Picture No. 4.5.4-2). As the diagram provides, most families waiting for residential premises are in Vilnius (applications to be listed in the list of returning persons municipalities accepted as per set procedure until 31 December 2005).

Provision of apartments for returning political prisoners and exiles in municipalities of Lithuania during the period of 1992–2006

Data of the Department for Supervision of Social Services under the Ministry of Social Security and Labour Picture No. 4.5.4 -1

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The number of returning families of political prisoners and exiles waiting for apartments in municipalities in 2007

Data of the Department for Supervision of Social Services under the Ministry of Social Security and Labour Picture No. 4.5.4-2

Therefore, as it may be observed, post restoration of independence it has been two decades already since the state of Lithuania has been providing rather significant support in the form of periodic and lump-sum benefits from the state budget to its citizens who suffered the most from occupations, i.e. political prisoners and exiles, families of Independence defenders who suffered form events of 11–13 January 1991 and during the afterwards aggression of the USSR, persons disabled due to mandatory military service in the Soviet army, persons liquidating the outcomes of the Cher- nobyl Power Plant accident, as well as participants of resistance – voluntary soldiers and struggle for freedom participants. For now, the state budget of Lithuania is unable to provide more generous compensations for all residents of Lithuania who suffered form illegal repressions, moral or other violence during the years of war and occupation, as unfortunately the Russian Federation – the suc- cessor of rights and responsibilities of the former USSR – has not yet paid and is not paying any compensations for damages made to Lithuania and its residents.

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4.6. IMPLEMENTATION OF MEASURES OF THE STRATEGY FOR REDUCTION OF POVERTY AND SOCIAL EXCLUSION AND OF THE NATIONAL STRATEGY OF OVERCOMING THE CONSEQUENCES OF AGEING

4.6.1. IMPLEMENTATION OF THE National Action Plan of Combating Poverty and Social Exclusion for 2004–2006

In 2002 Lithuania intending to join the European Union signed the Joint Inclusion Memo- randum with the European Commission and undertook to draft the National Action Plan to Combat Poverty and Social Exclusion of the Republic of Lithuania for 2004–2006 (hereinafter referred to as the National Action Plan). Lithuania joined the process of reduction of poverty and social exclusion coordinated by the Community. To implement the Lisbon Strategy goals, since 2001 the Community started applying the Open Method of Coordination enabling exchange of experience and good practice between Member States seeking joint goals in the combat against poverty and social exclusion. In July 2004 Lithuania as other new Member States submitted the first National Action Plan drafted to the Commission. The National Action Plan identified the main directions and goals which Lithuania would pursue in the long and short run. One of the main challenges pointed out in the Plan was to overcome extreme poverty within the decade and greatly reduce relative poverty and social exclusion. The main long-term goals: to ensure not only all the essential material values or social services for the persons belonging to the socially excluded groups but also opportunities to acquire proper education, to receive good-quality health care services, to have an accommodation meeting general standards, healthy working conditions, opportunities to choose and influence vital decisions in life. The National Action Plan also sets out priority areas of activities for the period until 2006. To implement the main challenge identified and long-term goals, Lithuania had to create favourable economic, demographic, labour market, regional development, education, culture, health and social security conditions as well as other social development prerequisites and conditions. To create proper prerequisites and conditions the National Action Plan formulated objectives for the above areas successful implementation whereof in 2004–2006 could condition positive results of implementation of the plan. Stable growth of economy in 2004–2006 created favourable reliable prerequisites for reduction of poverty and social exclusion. One of the main prerequisites for reduction of poverty and social exclusion is macroeconomic stability ensuring favourable conditions for long-term economic growth, increase in employment and income. The period of 2004–2006 was rather positive for the Lithuanian economic development. During the period the work efficiency was increasing rather successfully: as compared to the average of the EU-25, this indicator increased from 49.7% (in 2003) to 56.6% (in 2006). It is forecasted that the work efficiency level in 2008 will rise to 61.1%. The annual growth rate of the gross domestic

Social Report 2006–2007 137 4 C h a p t e r product of Lithuania exceeded 7 percent while the gross domestic product per capita in 2006 reached 55.8% of the average level of the EU-25 gross domestic product per capita. According to the Eurostat estimations, in 2008 this level will approach 60% (59.7%). In 2004–2006 family support was increased and involvement of elderly people in the labour market was enhanced to mitigate negative demographic tendencies. Given unfavourable demographic tendencies highlighted during the recent years, Lithuania particularly focuses on improvement of the demographic situation. Due to negative natural rotation of the population (more people died than were born), in 2004–2006 the population decreased by 37.8 thousand, due to the negative migration balance (more emigrated than immigrated) – by 22.2 thousand. One of the measures to improve the demographic situation is increase of support for families with children. Corresponding section hereof provide data showing how support for families with children has been increasing and social insurance has been improving when on maternity (paternity) leave. As regards the prospects that the share of elderly people in the supply structure of the labour force will be increasing, more favourable conditions for longer involvement of elderly people in the labour market are created. In 2006 in Lithuania 175.3 thousand elderly (aged 55-64) people, or 49.6% were working. Their employment rate increased in 2005–2006 by 2.3 percentage points. This is one of the highest indicators in the European Union. Lithuania already overruns the employment indicator of the elderly people set in 2006 in the National Lisbon Strategy Programme (47.5%) and has approached the goals set for the European Union to be reached by 2010 (50%). Application of active labour market measures has created conditions for growth of employment and decrease of the unemployment rate to 5.6%. Employment during the period of implementation of the National Action Plan was increasing. The employment rate in 2006 as compared to 2003 increased by 2.7 percentage points, i.e. from 60.9% in 2003 to 63.6% in 2006, and it was the highest employment rate during the recent years. The average annual number of the employed in 2006 as compared to 2003 increased by 61 thousand and reached 1.5 million. Given the increase in the employment level, the unemployment rate has been decreasing. In 2004–2006 the number of the unemployed almost halved and was 89.3 thousand people. The number of long-term unemployed, i.e. those looking for a job for one year or longer, dropped significantly. In 2003–2006 their number decreased more than twice and a half – from 102.3 thousand in 2003 to 39.6 thousand in 2006. To reduce disparities in economic development and standard of living between regions, in 2004–2006 favourable conditions for creating jobs were formed. Uneven development of the economy in regions of Lithuania is one of the reasons conditions poverty and social exclusion of residents of problem regions. To reduce disparities in economic development and standard of living between regions, in 2004–2006 favourable conditions for creating new jobs were formed. During this period 194 local employment initiative projects were implemented in the areas of the highest unemployment rate (municipalities or neighbourhoods). They helped to create 1.3 thousand new jobs for employing the unemployed and half of them – in the countryside. To increase employment of the unemployed in these areas, LTL 20.5 million were used to create new jobs.

138 Social Report 2006–2007 social support

Reducing poverty, the monetary social support for persons who due to objectives reasons did not have sufficient income to meet essential needs was increased. To reduce absolute and relative poverty, particular focus is on increase of minimal wages. The goal of the period of implementation of the National Action Plan was to ensure that the growth rate of the minimal income in the country would not lag behind the average income growth rate. Statistics show that the growth rate of the minimal wagers have much exceeded the growth rate of average and maximum wages. Average disposable income per one household member in 2006 as compared to 2003 increased by 48.8%, the income of households having the lowest income (Quintile I) increased by 63.6% and that of householders with the highest income – by 47.5% (Quintile V). More rapid growth rates of the minimal wages slowed down the growth of income differentiation.

Ratio of the Lowest Disposable Income of Quintile I per One Household Member with Average Disposable Income and the Highest Disposable Income of Quintile V per One Household Member, %

Department of Statistics to the Government of the Republic of Lithuania Fig. 4.6.1.-1

Increase of the minimal income and decrease of absolute poverty were conditioned by greatly increased state-supported income which defined the amount of monetary support provided to people due to objective reasons having low income and amounts of other social benefits (the constant part of the unemployment benefit, etc.). From the beginning of 2007 the amount of state-supported income approved by the Government was increased to LTL 205, i.e. more than by 1.5 as compared to 2003 when this amount was LTL 135. Development of social security and increase of social benefits positively influence the process of reduction of poverty and social exclusion.

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During the period of implementation of the National Action Plan particular attention was devoted to increase of the amount of pension for loss of working capacity and old age as quite a few residents of Lithuania had that income as their main source of living. In 2004–2006 the average old age pension increased by 40% and the actual amount thereof – by 30%. Reduction of poverty and social exclusion was positively influenced by recent changes in the pension system. The policy of the recent years was focused not only on increase of low pensions due to the drawbacks of the previous salary system but also to granting the right thereto to all people of the retirement age. Starting from 2006 social pension is paid to all old and disabled people having no social insurance rights. After the reform of the survivor’s pension quite a few survivors acquired the right to receive the survivor’s pension and for many of them the amount of the survivor’s pension was increased. This is good support for single pensioners whose risk of poverty is normally higher. In solving poverty reduction problems, an important role is taken not only by active unemployment reduction measures but also by passive ones – the unemployment benefit and amount thereof. In 2005 the methodology of calculating the unemployment insurance benefit (unemployment benefit) was changed and unemployment benefits more than doubled. In 2005 the average amount of the benefit was LTL 175.7, and in 2006 – about LTL 400. On average in 2004–2006 about 15 thousand unemployed monthly received their unemployment social insurance benefits. In 2004–2006 high rates of income from work growth created favourable prerequisites and conditions to reduce poverty and social exclusion. Crucial role in average household income goes to income from paid employment work which in 2005 was 57% of the total disposable income. In 2004–2006 the average salary increased by 40%, and the actual amount thereof – by 29%. In Lithuania about 10% of hired full time workers working receive minimal wages. From 1 July 2006 the minimal monthly salary approved by the Government was LTL 600 and as compared to 2003 increased by 33%, and the actual amount thereof – by 24%. Macroeconomic stability, employment growth, unemployment reduction, growth of actual income, development of social security created favourable conditions and prerequisites to reduce poverty and social exclusion in 2004–2006.

4.6.1.1. Implementation of Priority Measures of the National Action Plan to Combat Poverty and Social Exclusion in 2005–2006

The measures provided for in the National Action Plan to Combat Poverty and Social Exclu- sion were implemented along the following priority directions of the policy of reduction of poverty and social exclusion: • by providing support for vulnerable persons; • by increasing employment and improving possibilities for using resources, rights, goods and services; • by improving prevention of the risk of social exclusion; • by improving institutional activities.

140 Social Report 2006–2007 social support

4.6.1.1.1. Support for Vulnerable Persons

In implementing policy measures of support for vulnerable persons, it target is to eliminate extreme poverty in Lithuania by 2008. Everyone lacking food and having no shelter for the night or enough warm clothes will be provided with these essential things. According to the data of the Household Budget Study of the Department of Statistics, in 2006, 0.1% (in 2003 – 0.5%) of residents were living below the line of extreme poverty (LTL 125 for one member of the household). To reduce extreme poverty, in 2005 Lithuania launched the implementation of the European Union support programme for provision of food from intervention provisions to poor people. In 2006 poor people received 16 thousand tons of wheat and 5 thousand tons of rice for LTL 8.4 million. The process of reduction of extreme poverty involves non-governmental organisations which distribute charity or provide services to persons experiencing extreme poverty. The National Action Plan targets at reduction of the relative poverty level of the poorest groups of the population by 5-10 percentage points by 2010. According to the data of the Household Budget Study of the Department of Statistics, in 2005 the relative poverty level was 16.9%. Among the poorest groups within the period of one year (from 2004 to 2005) the relative poverty level most decreased in farmer households – by 8.5 percentage points (from 30.1% in 2004 to 21.6% in 2005); the relative poverty level rather greatly decreased in households of one adult with children under 18 – by 5.4 percentage points (from 23.0% in 2004 to 17.6% in 2005). During the period of implementation of the National Action Plan not only income but also social benefits increased rapidly. The growth rate of the actual amount of pensions in 2004–2005 overrun the growth rate of the actual salary. Rather high growth rates of the actual old age pension persisted also in 2006. The purchasing power of the old age pension in 2006 as compared to 2005 increased by 10.4%. In February 2007 increase of base pension and insured income had impact on the growth of the nominal level of pensions by more than 13%. Much attention has been and will be paid to increase of the minimal income. During the recent years state-supported income was increased several times. The monetary social support for people due to objective reasons having low income depends on such state-supported income. On 1 February 2006 the state-supported income was increased to LTL 165, and on 1 October 2006 – to LTL 185, and on 1 January 2007 – to LTL 205 per capita per month. During the period of implementation of the National Action Plan the amount of social benefit for one person without any income increased by 52%, and the actual amount thereof – by 41%. Moreover, the minimal unemployment benefit increased for the unemployed registered with the labour exchanges and compensations to cover housing heating costs were also increased. Moreover, the right to receive free food at school was given to more children from poor families. On 1 January 2007 the minimal standard of living was increased by 4% – to LTL 130. Application of active poverty reduction measures and increase of the state-supported income conditioned the trend towards reduction of the absolute poverty level. Evaluating the relative poverty level, its spread and changing trends, the key criterion is the relative poverty level calculated as 50% of the average consumption expenses. Given the growth of income of the population, the poverty line has shown the trend towards growing. In 2005 the relative poverty line amounted to LTL 363 and as compared to 2004 increased by 11.3%. Although the

Social Report 2006–2007 141 4 C h a p t e r growth rate of income of the population with the lowest income in 2005 as compared to 2004 were 6.6 percentage points higher than that of the population with the highest income but the relative poverty level slightly increased from 16.1% in 2004 to 16.9% in 2005. This growth is thought to have been conditioned by the fact that the more rapid growth rate of the minimal income slowed down but did not stop the growth of differentiation in income of the population. While in 2004 the absolute income difference per one household member between Quintile I and Quintile V was LTL 1,541, in 2005 this difference was LTL 1,833, i.e. it increased by 19%. In fact, the change in the relative poverty level reflects the results of the income differentiation change.

Extreme, Absolute and Relative Poverty Line, LTL and Poverty Level, %

Department of Statistics to the Government of the Republic of Lithuania Fig. 4.6.1.1.1-1

During the period of implementation of the National Action Plan the main focus was on reduction of poverty of children who were most socially vulnerable and on elimination of social exclusion. Statistics show that the poverty level in families with children is higher than in families without children. This is also conditioned by the socioeconomic standing of the family: where children are brought up by only one of the parents (usually mother) or the family is large, parents are unemployed, disabled, of poor education, children in such families have fewer opportunities to reveal their abilities, they experience problems at school (progress, behaviour, attendance) and this conditions their future. About 4% of children in Lithuania live in social risk families. Children growing in such families usually live in poverty transmitted from generation to generation. The goal of implementing the measures of the National Action Plan was to ensure that children growing in poor and social risk families would have as accessible opportunities to rise up the social ladder as possible. One of

142 Social Report 2006–2007 social support the key measures to reach this goal is provision of complex services for the family and children. In implementing the provisions of the Law on Social Services which particularly focus on development and accessibility of social services for families and children, 556 social worker jobs were created for working with social risk families in municipalities. Reduction in the number of social risk families was influenced by the efficiently implemented National Children’s Day Care Centre Programme which determined the development of social services in municipalities. With the help thereof and the NGO sector, services are provided to children from social risk families in local communities. In the municipalities where children’s day care centres function and there are possibilities to provide support not only in cash but also as services, the community role in reducing social exclusion of children is growing.

Number of Social Risk Families and Children Growing Therein, thous

Data of the Ministry of Social Security and Labour Figure 4.6.1.1.1-2

One of the most painful problems in reducing poverty and social exclusion is children deprived of parental care. The number of children who become deprived of parental care during the year since 2002 exceeds 3,000. According to the data of the Ministry of Social Security and Labour, in 2006, 3,209 children became deprived of parental care (in 2004 – 3,267), of whom 37% were under age of 7. 1,383 children were referred for family (person) custody, of whom three quarters were take in custody by close relatives. Other children were given accommodation at various child care institutions. At the beginning of 2006, there were 13.3 thousand children deprived of parental care, of whom more than a half were take care of in families, 2% – in extended families and 40% (i.e. 5,350

Social Report 2006–2007 143 4 C h a p t e r children) – in various child care institutions. In 2006, 7.7 thousand children were taken care of in families (in 2004 – 8 thousand). Taking into account that children living in institutions can be identified as one of the higher social risk groups that may be subject to social exclusion and poverty, the National Programme for Support of Orphans and Children Deprived of Parental Care and Their Integration into the Soci- ety is drafted and implemented. The main focus is on development of independence of children growing in child care homes, readiness to live in the society or return of children to their biological family. According to the data of the State Child Rights Protection and Adoption Service, in 2006, 1,006 children were returned to their biological families. In implementing the National Action Plan, the share of children deprived of parental care and orphans in various institutions has decreased by 6 percentage points, from 46% to 40% but there is still much left before the long-term target is achieved – the share of children deprived of parental care and orphans in various institutions should be about 20%.

4.6.1.1.2. Increasing Employment and Improving Possibilities for Using Resources, Rights, Goods and Services

The National Action Plan particularly focuses on increase of employability, especially for residents facing the largest difficulties on the labour market: disabled people, long-term unemployed persons, the youth, pre-retirement age people. In 2004–2006 development of social enterprises was carried out to increase opportunities for the disabled to participate in the labour market. Social enterprises employ 2,350 persons of whom 54.2% are disabled. The number of the working disabled increased up to 1.3 thousand. At the end of 2006 there were 25 social enterprises and 24 social enterprises of the disabled. Many social enterprises are established in the large cities of the country: Vilnius, Kaunas, Šiauliai and Panevėžys. Social enterprises have used all subsidies provided for them. The largest part, 74.6%, was allocated for partial compensation of salary and state social insurance premiums, 16.8% – for subsidies for creating new jobs, adjusting workplaces to the disabled and purchasing or adjusting their working tools. Having used state support, social enterprises created 90 new jobs for the disabled, adjusted 56 workplaces and adjusted the working and rest environment for 162 disabled persons. In 2005–2006 various employment programmes for the youth were implemented particularly focusing on unskilled youth. The Lithuanian Labour Market Training Authority drafted a programme for people aged 14 to 29 who had “fallen out” of the education system and having no basic education. Consultants were trained to work with such persons out of the education system. All services carry out work with pupils of general education schools applying various programmes for their vocational counselling. As a consequence of implementation of youth programmes, the youth unemployment rate has been rapidly decreasing annually: in 2004 – 22.5%, in 2005 – 15.7%, in 2006 – 9.8%. To reduce long-term unemployment, in 2006, 22.6 thousand long-term unemployed were referred to active labour market policy measures. Of them 3.5 thousand were referred to vocational training and informal education measures. Within the year the number of the long-term unemployed almost halved – from 73 thousand in 2005 to 48 thousand in 2006. According to the survey

144 Social Report 2006–2007 social support of population employment carried out by the Department of Statistics, the level of the long-term unemployed (i.e. ratio of the long-term unemployed and the labour force) which in 2004 was 5.8%, in 2005 decreased to 4.3% and in 2006 was 2.5%. The vocational guidance and counselling programme Social Integration of Elderly Persons was drafted to promote activity, employment, willingness to study and participate in the labour market of people over 60 years of age who are retired.

4.6.1.1.3. Prevention of the Risk of Social Exclusion

Measures implemented in 2005–2006 to enhance prevention of the risk of social exclusion created an opportunity for a larger part of socially vulnerable people to participate in the process of formation of the knowledge society. Projects implemented by non-governmental organisations involved 14,420 persons, of whom 10,120 were aged 14 to 29. In enhancing opportunities for the disabled people to integrate into the society, 11 public programmes for adjustment of physical environment were funded. In implementing the programmes, 41 public objects were fully adjusted to the needs of the disabled. Among them there were 39 centres and services providing social services. Audio information devices were installed in trolleybuses in Vilnius and buses in Panevėžys. 18 public objects were partially adjusted. 889 design projects of buildings and public objects were coordinated, 720 deeds of commissioning were signed by the state commission and 819 consultations were provided with regard to adjustment of the environment. 3 housing and living environment adjustment programmes were financed: adjustment of housing and living environment of the disabled to the needs of the disabled was carried out (345 flats were adjusted to the needs of the disabled, of which 328 flats were adjusted for the disabled with very grave motion and self-care function disorders, 17 flats – for those with grave disorders). 10 information environment adjustment programmes were funded: information to sight-impaired persons was provided using the Braille technique, publishing of publications adjusted for sight-impaired people was supported, the digital archive of publications was created, digital typhlo- logical publications were issued, development of computer rooms at rehabilitation centres for hearing-impaired persons was continued, computer literacy trainings were organised, special compensational equipment was purchased for hearing-impaired children. In support of the implementation of the audio digital book, 240 publications to be used by about 4,000 disabled people were digitalised in Lithuania. 6 functioning information centres were supported and 16 new ones were established. Their services are used by about 4,750 persons. 9 educational programmes for children and young people with disability (with special needs) were funded. 6,000 persons with grave disability could take part in the educational process due to additional means. Support was provided to 13 functioning educational services, centres and educational institutions (attended by 661 disabled children and young people), 3 integrated disabled groups in schools (attended by 60 disabled children), 2 pre-school educational institutions attended by 115 hearing-impaired children. The environment of 3 educational institutions (attended by 140 disabled persons) were adjusted to the needs of the disabled. 178 disabled persons studying at higher education institutions were supported. Compensational and auxiliary equipment and learning tools (FM systems, interactive books and Braille books, hardware and software and learning materials) were

Social Report 2006–2007 145 4 C h a p t e r provided to 237 children and young people with disability. 15 health care and wellbeing and labour training camps were organised for children and young people with disability (418 participants, 10 various events for 300 children with disability). Typhlopedagogic and ophthalmologic consultations were provided to 160 parents, 60 children with hearing or general impairments and 20 teachers. Per- manent transportation services to educational institutions were provided to 190 disabled persons. 542 disabled students studying at 34 higher education institutions were supported by payment of tuition and allocation of means to meet their special needs. From 1 January 2005 assistant teachers started working in Lithuanian schools to help pupils with special needs to take part in educational and extracurricular activities. In 2005 the additional amount of about LTL 5 million was allocated to fund positions of such assistant teachers by increasing the pupil basket for children with special needs by 10%. This way school incorporators – municipalities, counties and other entities – acquired the opportunity to create about 500 positions for assistant teachers in general education schools and about 40 positions – in vocational schools. From September 2005 for the first time first-graders with special needs who study in general education groups of general education schools were provided with special textbooks of Lithuanian, mathematics and world cognition adjusted to their needs. In 2006, 9 school buses adjusted for transportation of pupils with special needs were purchased. In 2006, 644 pupils with special needs were admitted to 12 vocational training programmes.

4.6.1.1.4. Improving Institutional Activities

The National Action Plan to Combat Poverty and Social Exclusion was drafted and implemented involving as many stakeholder institutions, NGOs and social partners as possible. Only the National Action Plan created and implemented by joint effort can yield expected results. The National Action Plan placed much focus on promotion of the dialogue between the stakeholders. Individual efforts of some institutions in combating poverty and social exclusion may be inefficient and ineffective. The Ministry of Social Security and Labour was responsible for coordination of the drafting and implementation of the National Action Plan. The Ministry taking account of the experience available and seeking to ensure better continuity of the process of reduction of poverty and social exclusion is now drafting the Social Map which will be a tool helping to enhance the dialogue between various participants of the process of reduction of poverty and social exclusion. The web site of the Social Map will post all information about the process of reduction of poverty and social exclusion and its participants and best practices will be disseminated and summary indicators of municipality involvement in the process will be presented. The process of implementation of the National Report on the Lithuanian Social Security and Social Inclusion Strategies for 2006–2008 using the Social Map as one of the implementation tools is expected to become more open and encourage municipalities, communities, NGOs and social partners to participate in the process. In 2006 Lithuania drafted and submitted the National Report on Strategies of Lithuania for Social Protection and Social Inclusion 2006–2008 to the Community (hereinafter referred to as the National Report on the Strategies) and now it continues participating in the process of reduction of poverty and social exclusion of the European Union applying the Open Method of Coordination. In

146 Social Report 2006–2007 social support fact, the Member States for the first time submitted integrated national reports on social inclusion, pension, health care and long-term care strategies. This was done taking account of the demographic ageing and accelerated globalisation. It is admitted that economic and labour market reforms must help to strengthen social cohesion and the social policy must have positive impact on economic growth and employment increase. The National Report on the Strategies was drafted in accordance with general guidelines for drafting the National Report on Strategies for Social Protection and Social Inclusion. In the National Report on the Strategies Lithuania places the main focus on four activity priorities to tackle social inclusion issues evaluating the current situation and taking account of possible future challenges: to increase involvement in the labour market, to enhance opportunities to use quality services, to eliminate children’s poverty and enhance support for families and to reduce drawbacks in the educational system. In 2006–2008 in pursuit of the above priorities, the measures approved by the Government will be implemented (Official Gazette, 2007, No. 8-328). In implementing these measures, the goal will be not only to efficiently use the funds planned but also to promote more active activities of all stakeholders and cooperation between them.

4.6.2. NATIONAL STRATEGY OF OVERCOMING THE CONSEQUENCES OF AGEING AND ITS IMPLEMENTATION

Documents on population ageing adopted by the United Nations Assembly in Madrid and the Ministerial Conference in Berlin obliged Lithuania to take actions to tackle the problem of population ageing at the national level. Following the above documents, Lithuania mentioned the population ageing problems in the National Strategy for Overcoming the Consequences of Ageing (Official Gazette, 2004, No. 95-3501) which analyses problems in Lithuania related to the population ageing, formulates goals to mitigate ageing consequences, objectives and actions to implement them. The National Strategy for Overcoming the Consequences of Ageing (hereinafter referred to as the Strategy) offers a complex view of the population ageing problem and covers various areas of activity: demographic situation; income and income guarantees for elderly people; employment; health care and social services; opportunities to lead a full life – education and integration into the information society; housing and adjustment of environment; accessibility of cultural life; transport; personal security and participation in activities of non-governmental organisations and formation of the image of elderly people. The situation was analysed in all the above fields taking account of the ageing population and possible key changes and challenges were listed. In seeking the goals set out in the Strategy, the measures to implement the National Strategy for Overcoming the Consequences of Ageing for 2005–2013 were approved (Official Gazette, 2005, No. 5-112) which are to be performed in various activity areas. Measures are divided into five sections: Income Guarantees, Employment, Health Care and Social Services, Opportunities to Lead a Full Life and Involvement in the Public Life and Formation of the Image of Elderly People. Within the time having passed since the approval of the Regional Implementation Strategy of the Madrid International Plan of Action on Ageing, the country has achieved some progress. Adop-

Social Report 2006–2007 147 4 C h a p t e r tion of the Strategy urged to take a complex look at the ageing process taking account of its advantages and drawbacks in many policy areas. The changes implemented are overviewed in the Report on the Follow-up to the Implementation Strategy of the Madrid International Plan of Action on Age- ing drafted in April 2007 and submitted to the UN Economic Commission for Europe. The report on implementation of the measures for implementation of the National Strategy for Overcoming the Consequences of Ageing for 2005–2006 which on 2 April 2007 was approved by the Government of the Republic of Lithuania. In seeking to ensure coherent and sustainable economic growth, to adapt the social insurance system to the ageing society and coordinate the needs of the current elderly people with future challenges, some progress has been reached by increasing the income of elderly people. At the same time the pension reform was carried out creating a savings stage of pensions and helping to ensure financial stability of pensions in the future. This ensures gradual approaching to the goal in the future to guarantee stable income to elderly people for the large part of the previously held standard of living and for leading a full life. In adjusting the labour market to the needs of the ageing society, important changes in the employment policy have been implemented – measures have been taken to promote employment and entrepreneurship of elderly people, to expand their abilities for life-long learning, to create favourable working conditions for them and accordingly modified labour relations and to eliminate discrimination on the grounds of age. To guarantee equal opportunities and gender equality, measures on employment and reintegration into the labour market have been implemented, placing particular focus on elderly or socially vulnerable women, women’s entrepreneurship has been promoted and more opportunities for coordination of work and family responsibilities have been created. To guarantee the required standard of living for elderly people, not only their income is increased but also the sector of social services is expanded accordingly. Particular effort is made to ensure accessible quality social and health services, help for elderly people so that they would live a full life as long as possible in their usual living environment. Preventive health care programmes aimed at risk groups of elderly people are also carried out. The situation has improved with regulation of adjustment of the environment, provision of transport for elderly people, safety measures have been adjusted for them, especially in the countryside. In implementing the undertaking to help family members taking care of their relatives, the short-term social care service also referred to as the “respite” service is legalised. Due to it, persons taken care of at home are provided with short-term social care services at their home or social care institution so that family members of these persons would be able to leave for a holiday, take care of their own health or just take some rest. For the first in the country there have been campaigns organised to form the positive image of elderly people and to highlight cooperation and solidarity of generations. Involvement of elderly people has been enhanced by making decisions important for them and international cooperation of their organisations has been expanded. The National Strategy for Overcoming the Consequences of Ageing is being implemented for a short time yet. Therefore, the factors listed are just the first steps in implementing the policy adjusted to the population ageing. There are a lot of unsolved problems. It is not easy to coordinate

148 Social Report 2006–2007 social support the current need to increase social benefits with the financial stability of the pension system in the future. The intense emigration of the working age people aggravates this objective still more. There are relative difficulties with formation of the positive attitude of employers towards elderly employees and the elderly people proper do not trust their abilities to take full part in the labour market. Due to the insufficiently developed infrastructure social, transportation and other services are less accessible to rural residents. It is necessary to intensify participation of elderly people in the process of making decisions important for them and to encourage them to express their opinion actively and with knowledge of the subject. Activity directions set out in the strategy should help to solve many problems. Unfavourable demographic changes can be mitigated by carrying out the family-friendly policy that allows for better coordination of the family and professional responsibilities and to ensure gender equality in the family. This should have some positive impact on the birth rate and make a significant contribution to the solution of ageing-related problems. The overview of Lithuania’s progress in implementing the Regional Implementation Strategy of the Madrid International Plan of Action on Ageing leads to some conclusions. In Lithuania the population ageing is taken into account when forming social security, employment, health care and other policies. The National Strategy for Overcoming the Consequences of Ageing adopted in 2004 is to coordinate them. During the period since 2002 the following has happened in the country: • the pension reform was carried out creating a savings stage of pensions and helping to ensure financial stability of pensions in the future; the right to get at least the minimal pension was expanded to cover all the disabled and people having reached the old age retirement age; • the goal is to ensure stable income for all elderly people without hurting their human dig- nity for the large part of the previously held standard of living and for leading a full life; • important changes in the employment policy have been implemented – measures have been taken to promote employment and entrepreneurship of elderly people, to expand their abilities for learning, to create favourable working conditions for them and accordingly modified labour relations and to eliminate discrimination on the grounds of age; • the sector of social services is continuously expanded, particularly that of non-stationary services, to ensure accessible quality social and health services, help for elderly people so that they would live a full life as long as possible in their usual living environment; • preventive health care programmes aimed at risk groups of elderly people are carried out; • more intensive actions forming the positive image of elderly people, their involvement in making decisions important for them and cooperation of generations. Many of the policy directions listed above are just the first steps in implementing the policy on the population ageing. Demographic forecasts show that further and more intense changes are needed in the social security, health care, employment policies adjusting the infrastructure, etc. The country quite well understands the ageing problem, has formed and starts implementing relevant policies, has developed the legislation needed and continuously expands administrative capacities. The rapid economic development allows increasing pension and social security funding. However social security and health care still receives a much smaller share of the GDP than the EU

Social Report 2006–2007 149 4 C h a p t e r average, and there is a complicated problem of coordination of the current need to increase pensions and other social benefits with the prospect of financial stability of the pension system in the future. The situation is aggravated by the heavy emigration of the working age people. There are relative difficulties with formation of the positive attitude of employers towards elderly employees and the elderly people proper do not trust their abilities to take full part in the labour market. Due to the insufficiently developed infrastructure social services are less accessible to rural residents. The problem of care for people in need of permanent care is difficult to solve. To overcome the above challenges, further actions will be taken in the directions identified in the National Strategy for Overcoming the Consequences of Ageing: • to carry out a balanced pension policy coordinating the needs of the present and the future; • to promote employment of elderly people adjusting workplaces for them, forming their positive image as employees to ensure as large a share of people staying in the labour market as possible; • to expand health care and social services, especially in the countryside, focusing on the integrated care at home that would grant elderly people the opportunity to lead a full life in their usual living environment. The family policy is also being revised making it as family-friendly as possible and promoting the birth rate. Taking account of the relevance of the ageing problem in Europe, one should consistently disseminate good practice between countries. This would make it possible to draft national strategies uniting policies of all life sectors relevant for elderly people.

150 Social Report 2006–2007 EQUAL OPPORTUNITIES AND SOCIAL5 INTEGRATION

5.1. EQUAL OPPORTUNITIES AND NON- DISCRIMINATION

Ensuring equal opportunities is one of the fundamental objectives of a democratic society. Article 29 of the Constitution of the Republic of Lithuania lays down that the rights of the human being may not be restricted, nor may he be granted any privileges on the ground of gender, race, na- tionality, language, origin, social status, belief, convictions, or views. Many other laws of the Republic of Lithuania regulating various social relations enshrine this constitutional principle of equality and non-discrimination. Elimination of all forms of discrimination is the necessary and fundamental precondition of ensuring human rights and personal welfare. One of the key legal acts regulating equal opportunities is the 1 January 2005 Law of Equal Opportunities of the Republic of Lithuania (adopted on 18 November 2003). The purpose of this Law is to ensure implementation of human rights laid down in the Con- stitution of the Republic of Lithuania, and prohibit any direct or indirect discrimination based upon age, sexual orientation, disability, racial or ethnic origin, religion or beliefs. The law stipulates the main concepts provided for in the European Union directives. Accord- ing to the law, equal opportunities shall be ensured by state as well as municipal authorities (which develop and adopt legislation, programmes and measures, etc.), educational establishments, science and academic bodies (that accept students to study, assess their knowledge, choose curricula, etc.), employers (that employ, set working conditions and provide opportunities to upgrade qualifications and get proper remuneration, etc.). In addition, equal opportunities shall also be ensured in the area of protecting consumer rights. The law clearly defines which actions of state and local authorities, educational and academic establishments, employers, salespersons, producers, service-providers vio- late the principle of equal opportunities. A person, who thinks that the discriminatory actions specified in this Law, have been directed against him shall have the right to appeal to the Equal Opportunities Ombudsman. This does not limit the opportunity to protect his rights in court.

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In early 2007, with a view to ensuring better protection of equal rights of persons and transpose provisions of the European Union directives into national legislation, the law on the amendment of equal opportunities was developed. It includes the provisions of Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin and Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation, related to the prohibition of discrimination of persons in respect of their membership of, or involvement in, an organisation of workers or employers; shift of the burden of proof to the respondent; payment of effective, proportionate and dissuasive compensation for the violation of equal opportunities; prohibition to discriminate in the area of social security; effective legal protection and representation in administrative procedures. Several provisions of the aforementioned law have been supplemented and amended, taking into account the legal practice of the Equal Opportunities Ombudsman implementing the law.

National Programme of Anti-Discrimination for 2006–2008 The success of a legal system in the area of non-discrimination depends on public support. Hence the public should be educated and informed about the negative impact of discriminatory conduct. In addition, public sensitivity should be developed, paying attention at the minorities and showing commitment to respecting human rights. In 2006, with a view to informing the public about the manifestation of discrimination in Lithuania, its negative impact on several public groups to actively participate in public life on equal footing with the others and to pursuing means of protecting equal rights and developing public tolerance, the Government of the Republic of Lithuania adopted the Na- tional Programme of Anti-Discrimination for 2006–2008 (hereinafter referred to as the Programme). The objective of the Programme is to reduce manifestations of discriminations on the ground of age, social orientation, disability, race or ethnic origin, religion or beliefs in all the areas of public life and increase public tolerance. The plan is to achieve this objective by improving the legislative framework, initiating surveys, reviews and studies, organising public awareness campaigns, seminars, training and other means of education. The main source of funding of the programme is the national budget of the Republic of Lithua- nia. The plan is that several implementation measures will be co-financed by the European Union, implementing Decision 771/2006/EC of the European Parliament and the Council of 17 May 2006 establishing the European Year of Equal Opportunities for All (2007) – towards a just society.

5.2. SOCIAL INTEGRATION OF THE DISABLED

Social integration of the disabled is a wide-scope action seeking to ensure full life for the disabled, offer them equal opportunities and enjoyment of rights. The system of social integration of the disabled is defined by the Law of Social Integration of the Disabled of the Republic of Lithuania. The law stipulates that the system of social integration of

152 Social Report 2006–2007 EQU a l O PP O RTUN I T I E S A N D s o c i a l I NTEGR A T i o N the disabled consists of provision of medical, vocational and social rehabilitation services, satisfaction of special needs, supporting employment of the disabled, provision of social support, awarding and payment of social insurance fund pensions and benefits, awarding and payment of mandatory health insurance fund benefits, ensuring equal opportunities to take part in cultural, sports and other public events. Social integration of the disabled shall be organised following the principles of equal rights, equal opportunities, prevention of discrimination, ensuring independence and freedom of choice, accessibility, compensation for disability, decentralisation and destigmatisation. The chapters below provide a short analysis of the system of social integration of the disabled and the programmes carried out by the Ministry of Social Security and Labour in the respective area.

5.2.1. key Indicators of Disability

Health disorders of residents, their position on the labour market, low level of income and various benefits offered contributes to the growing number of the disabled in the country. According to the data of the Ministry of Social Security and Labour, in 2006, there were 251,243 receiving pensions or allowances for lost capacity for work, i.e. they account for 7 per cent of the total Lithuanian population. During the same year the number of persons with special needs was 15,293. The trends for the distribution of the number of the disabled by the level of disability remain the same as during the previous year. As seen from Fig. 5.2.1-1, the majority of the disabled are persons with 30-40 per cent of employment capacity or those who belong to the 2nd disability group, i.e. they total 153,882 persons or 61 per cent of all the disabled. Persons with 0-25 per cent of employment capacity or those who belong to the 1st disability group made up 13 per cent of all the disabled. In 2006, the number of the disabled with 45-55 per cent of employment capacity or those who belong to disability group III was 47,976 persons or 19 per cent of all the disabled. During the same year, disabled children up to 18 years old totalled 16,464 persons or 7 per cent.

Distribution of the Disabled by the Level of Disability, 2006

Data of the Ministry of Social Security and Labour Fig. 5.2.1-1

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According to the data of the Ministry of Social Security and Labour, people of working age with a certain level of incapacity or disability account for 58 per cent, i.e. they are the majority among the disabled. Most often, people of working age are deemed disabled because of their system of circulation, tissue, musculoskeletal system diseases and malicious tumours. The main causes of disability of children are psychic behaviour disorders, diseases of the nervous system and sensory organs.

Dynamics of the Number of the Disabled by the Level of Capacity, Level of Disability and Disability Groups in 2002-2006

Data of the Ministry of Social Security and Labour Fig. 5.2.1- 2

Fig. 5.2.1-2 shows that the number of the disabled grows, albeit insubstantially. In 2006, the growth of the number of disabled children grew by almost 3 per cent as compared to 2005. In 2006, the number of persons with 45-55 per cent of the employment capacity level or those who belong to disability group III decreased by 4 per cent, whereas the number of those with 0-25 per cent of the employment capacity level or ascribed to disability group I went down by 2.2 per cent. The overall increase of the number of the disabled in 2006 makes up 1.2 per cent. Bearing that in mind, it is essential to provide just and efficient social support to the disabled and seek return of their employment capacity, independence and reintegration into society.

5.2.2. Programme of Vocational Rehabilitation

Seeking to restore or increase employment capacity of the disabled, their professional competence and ability to participate in the labour market, vocational rehabilitation services were further

154 Social Report 2006–2007 I ntroduction provided in the year 2006. The main responsibility for that lies with the Ministry of Social Security and Labour. It performs this function along with the Lithuanian Labour Exchange, implementing the functions delegated to it, i.e. organising and coordinating provision of vocational rehabilitation services in territorial labour exchange offices, monitoring provision of vocational rehabilitation services and participation of persons in the programme of vocational rehabilitation, closely cooperating with participants of the system of vocational rehabilitation. In July 2006, the Lithuanian Labour Exchange launched a tender for the provision of vocational rehabilitation services. The winner was Valakupiai Rehabilitation Centre, who signed an agreement on the provision of vocational rehabilitation services for the disabled in 2006–2007. The Centre took part in the tender along with the Vilnius Žirmūnai Labour Market Training Centre and the Adult Education Centre of the Vilnius Cooperation College. The joint activities of the three organisations offer a wider scope of vocational rehabilitation services. The number of professional training programmes increased from 7 to 45 informal and formal professional training programmes. In August 2006, seeking to bring closer vocational rehabilitation services to the place of residence of the disabled and increase accessibility of vocational rehabilitation services, an additional tender was launched to procure vocational rehabilitation services. The winners of the tender include Profesijų spektras in Druskininkai, the Lithuanian Rehabilitation Professional Development Centre in Radviliškis, Palanga Rehabilitation Hospital (along with the Klaipėda Labour Market Training Centre) and Vilties žiedas in Kaunas. These centres offered 123 different programmes of vocational rehabilitation for the disabled. In 2006, territorial labour exchanges registered 252 persons with the need for vocational rehabilitation. 206 of these persons took part in a vocational rehabilitation programme, including 69 individuals who finished it and 23 who found employment. During the 1st quarter of 2007, territorial labour exchange offices registered 146 persons with the need for vocational rehabilitation services, including 131 persons referred to the centres providing vocational rehabilitation services. 51 persons finished the programme of vocational rehabilitation, including 8 persons who found employment. In 2007, in order to address the need for having a system of vocational rehabilitation, a draft strategy on the development of vocational rehabilitation services was prepared for 2007–2012. The said document sets long-term objectives for the development of the system of vocational rehabilitation, i.e. improve the legislative framework of the system of vocational rehabilitation, ensure better accessibility, variety and quality of vocational rehabilitation services.

5.2.3. Provision of Technical Aids to Residents

In 2006, like during the previous year, the Ministry of Social Security and Labour carried out a programme of providing technical aids to residents. The main objective of the programme was to supply technical aids to the disabled and, where necessary, repair them. The main responsibility for carrying out these functions lies with the Centre of Technical Aid for the Disabled under the Minis- try of Social Security and Labour (hereinafter referred to as the Centre). In 2006, the Centre carried

Social Report 2006–2007 155 1 C h a p t e r out its activities pursuing the objectives provided for in the strategic plan of 2005–2007, including implementation of two programmes: Provision of Technical Aids to Residents and Development and Implementation of Effective System of Provision of Technical Aids to Residents living in the Regions.

The Programme for the Provision of Technical Aids to Residents received LTL 6,500,000 from the national budget in 2006. During that year, the Centre concluded an agreement to buy 23,909 units of technical aid and 21,733 units were actually purchased. It also paid two compensations to persons who had bought new active type wheelchairs; provided 26,370 units of technical aids, repaired and adapted for individual use 2,549 units of technical aid; bought and delivered 44 electrical wheelchairs. Admittedly, as of the year 2006 the Centre provides electrical wheelchairs to children aged under 14 as well as the adults. During 2006, technical aids were provided to more than 22,000 people. The need for compensation in technical aids has been satisfied by 90 per cent. The Programme for the Development and Implementation of Effective System of Provision of Technical Aids to Residents living in the Regions was carried out in compliance with the 2004–2010 strategy of supplying technical aids to the disabled. The purpose of the strategy is to create an integrated legal, economical and organisation system, ensuring a more efficient use of the national budget and thereby improving supply of technical aids to people with movement, vision and hearing impairment and facilitating medical, social and vocational rehabilitation. While implementing the strategy, two more regional offices of the Centre became operative in Alytus and Utena. In 2006, the total number of regional offices was six, located in Šiauliai, Klaipėda, Vilnius, Kaunas, Alytus and Utena counties. With a view to ensuring equal rights and opportunities for the disabled to have a social life and be socially included, the plan is to create a more effective system of providing technical aids to the population by creating more regional centres delivering technical support for the disabled, bringing qualified services closer to the customer and ensuring better public awareness. The plan is to establish three more regional offices of the Centre in 2007. Moreover, bearing in mind the need for a better register of technical aids and their return, the plan is to create one integrated computer system. As of the year 2007, the Centre of Technical Aid for the Disabled will start delivering technical aids to persons with vision and hearing disabilities. Earlier, this function was carried out by non- governmental organisations.

5.2.4. Financial Support to Disabled Students

With a view to supporting disabled students, the Ministry of Social Security and Labour, along with the Ministry of Education and Science, drafted a Description of the Procedure of Providing Financial Support to the Disabled Studying in Higher Educational Establishments. The Description

156 Social Report 2006–2007 I ntroduction was approved by the Government on 29 August 2006. It regulates provision of financial support to disabled students studying in higher educational establishments, its allocation and reporting for the use of received funds. Pursuant to the description, disabled students are provided the following financial support: • for the satisfaction of special needs, a monthly payment of an allowance which equals 50 per cent of the basic social insurance pension; • students studying in higher educational establishments and occupying places that are co- financed or not funded by the state are given an allowance amounting to 3.2 minimum subsistence levels (established by the Government) for every semester to cover part of the studying expenses. In 2006, financial support was provided to 542 students.

5.2.5. Programme for the Adaptation of Housing for the Disabled for 2007–2011

In 2006, the Ministry of Social Security and Labour developed and the Government of the Republic of Lithuania adopted the Programme for the Adaptation of Housing of the Disabled for 2007–2011 (hereinafter referred to as the Programme). The purpose of the Programme is to seek independence and social integration of the disabled, meeting their special needs and adapting housing and its environment to them. The programme is targeted at the disabled with movement impairment and having difficulty moving around the house. These people have a need for the adaptation of housing. Adaptation of housing and its environment to the disabled will help solve domestic and personal problems as well as provide better conditions for the disabled to move freely around the house. In addition that will enable both the disabled and their guardians play a more active role in education, gaining a profession and participation on the labour market. For many years, disabled unfriendly housing and its environment were the top problems raised by the disabled and their associations. The programme provides for the principles of adaptation of housing, giving the right for the local authorities to organise and conduct housing adaptation works in line with the special needs of the disabled. It stipulates that: – the local authorities or bodies delegated by them shall use 80 per cent of the national budget and 20 per cent of the municipal budget to adapt housing of persons with very severe or severe movement or self-service impairment; – the local authorities or bodies delegated by them shall use 50 per cent of the national budget and 50 per cent of the municipal budget to adapt housing of persons with moderate movement or self-service impairment; – the local authorities or bodies delegated by them shall use 4 per cent of the total amount allocated for the implementation of the housing adaptation programme from the national budget to administer measures related to the adaptation of housing (work pay, transportation and other expenses);

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– the local authorities or bodies delegated by them shall ensure register and use of expenses related the housing adaptation devices (elevators, lifting equipment, etc.). These expenses for the use of devices will be allocated according the budget estimate and would be used as following: 80 per cent will be taken from the national budget and 20 per cent from the municipal budget; – 3 per cent of the total amount allocated for the implementation of the housing adaptation programme will be given to the associations of the disabled for monitoring housing adaptation in municipalities and participation in the work of commissions (to cover work pay, transportation expenses, etc.).

5.2.6. Implementation of the National Programme of Social Integration of the Disabled

On 23 December 2005, pursuant to the Law on Social Integration of the Disabled, the Govern- ment of the Republic of Lithuania passed a Resolution adopting the Statutes of the Council for the Affairs of the Disabled under the Ministry of Social Security and Labour and changing the name “the Lithuanian Council for the Affairs of Invalids under the Government of the Republic of Lithuania” to the name “Department for the Affairs of the Disabled under the Ministry of Social Security and Labour”. Under this Resolution, the Ministry of Social Security and Labour is tasked to perform the role of the founder. As of 1 January 2006, two bodies have become operative under the Ministry of Social Security and Labour: the Council for the Affairs of the Disabled and the Department for the Affairs of the Disabled. In 2006, the Department for the Affairs of the Disabled examined key issues related to the disabled, including heath care, social services, education, adaptation of the environment, employment, public education, sports, culture and rest. During that year, 4 sittings of the Council and 3 interviews with the members of the Council were carried out. The Department for the Affairs of the Disabled worked in co-operation with state bodies, county chief administrations, municipalities, associations of the disabled. It provided advice on the issues of rehabilitation of the disabled and their social integration, carried out two training workshops on the development and submission of applications for the programme of social integration of the disabled, inviting more than 70 persons from state bodies and associations of the disabled. On 29 November 2006, the Department for the Affairs of the Disabled, along with the Minis- try of Social Security and Labour, organised a conference, Occupation of the Disabled: From the First Day of Occupation until Full Employment. The event was organised to commemorate the Interna- tional Day of the Disabled, 3 December. There were more than 200 participants from state bodies, territorial labour exchange offices, territorial disability and employment capacity assessment offices, municipalities, associations of the disabled, social enterprises of the disabled and centres of vocational rehabilitation. In addition, the Ministry of Social Security and Labour and the Department for the Affairs of the Disabled supported the 4th Traditional Fair of Works by the Disabled, For you, Vilnius, organised on 3 September 2006.

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The Department for the Affairs of the Disabled informed the public about the website it created in July 2006, various activities it performed and social integration of the disabled. In addition, a TV channel TV11 broadcasted 8 shows (30 minutes each) for disabled people called Those Who have Overcome their Fate. The show was broadcasted once in two weeks, informing the disabled about legal acts regulating social integration of the disabled, social services, operation of education bodies, day centres for the disabled and addressing other relevant issues, occasionally showing the disabled and their family members. In 2006, the Department for the Affairs of the Disabled carried out the following tasks: – coordination of implementation and monitoring of the National Programme of Social Integration of the Disabled for 2003–2012 (Official Gazette, 2002, No. 57-2335) (hereinafter referred to as the National Programme), performed by 10 ministries, 10 county chief administrations and 60 municipalities; – implementation of several measures of the National Programme and funding (by organising public tenders) programmes of social integration of the disabled of state bodies and associations of the disabled. The Department for the Affairs of the Disabled allocated funds for the projects of associations of the disabled and state bodies in line with 13 measures provided for in the National Programme, including rehabilitation, social services, increasing accessibility, employment, sports, culture, rest, public education. While implementing the projects, 30 per cent of the disabled (people with severe disability were considered a priority) received services or benefited from the programmes of social integration of the disabled. For that purpose, the Department for the Affairs of the Disabled received LTL 33,875,000 from the national budget.

5.3. gender mainstreaming

Equal rights for women and men have been de jure ensured by the Law on Equal Opportuni- ties for women and men. In addition, most legal acts regulating different spheres of life have been gender mainstreamed. In terms of gender equality, Lithuanian legislation is fully in line with the EU acquis and other international instruments. To ensure implementation of legislation, an institutional mechanism of broader scope has been established involving both the Government and the Parlia- ment. The Commission on Equal Opportunities for Women and Men, which involves representatives from each ministry as well as women’s and men’s non-governmental organisations, coordinates gender mainstreaming in all areas. In practice, however, the situation of women and men differs in most areas. Therefore, already the second National Programme on Equal Opportunities for Women and Men 2005–2009 has been adopted in 2005. The main objective of the Programme is gradual, integrated and structural addressing gender equality issues in all areas; ensuring gender mainstreaming; highlighting specific problems faced by women and men.

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The Programme seeks to narrow gender gap in the areas of employment, decision-making, education and science, to integrate gender issues into health and environment protection. Its purpose is also to provide better protection of gender equal rights, further develop institutional capacities, tools and methods. All the ministries, working in cooperation with non-governmental organisations and educational institutitions are responsible for the implementation of the National Programme on Equal Op- portunities for Women and Men 2005–2009. Coordination of the Programme is carried out by the The Commission on Equal Opportunities for Women and Men. On the annual basis, the Commission reports to the Government of the Republic of Lithuania about the implementation of the Programme.

5.3.1. IMPLEMENTATION OF THE national pROGRAMME On EQUAL OPPORTUNITIES for women and men IN 2006

5.3.1.1. Smaller gaps between the levels of employment and unemployment of women and men.

Data of the Department of Statistics reveal that the gap between the level of employment of women and men dropped from 7.6 per cent in 2005 to 5.3 per cent in 2006. The level of women employment made up 59.4 per cent in 2005 and 61 per cent in 2006. In that way, it exceeded the level of women’s employment provided for in the Lisbon strategy from 2010 (60 per cent). The level of women unemployment accounted for 8.3 per cent in 2005 (men 8.2 per cent), whereas in 2006, it dropped to 5.4 per cent and became lower than that of men (5.8 per cent). The 2006 Communication from the Commission to the Council, European Parliament, Economic and Social Committee and Committee of the Regions indicate that according to the data submitted by Eurostat, Lithuania takes the fourth position out of 27 EU member states with regard to the employment gap between men and women. Although by the level of women employment Lithuania has almost achieved the Lisbon strategy objective for 2010 and its average is higher than the EU average, it is only the 11th. Accord- ing to the employment level of elderly women, Lithuania takes up the 8th place in the EU and with regard to women raising children up to 12 years of age, it is second. What concerns the gap between the level of unemployment of women and men Lithuania takes up the eighth place in the EU.

5.3.1.2. Increasing opportunities of employment and taking up and developing business for women, and rural women in particular.

Women are actively taking advantage of their opportunities to find employment or start a business. According to the data of the Lithuanian Labour Exchange, during the 2006, 10,400 women (54 per cent) were sent to vocational training. That number includes 1,800 women registered in the labour exchange after a break longer than 3 years and 1,200 senior women (aged more than 50 years).

http://www.stat.gov.lt/lt/pages/view/?id=1574

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3,000 (73 per cent) women were referred to refresher courses, taking part in long-term initiatives of refreshing professional expertise of the employed. That number includes 1,200 women registered in the labour exchange after a break longer than three years and 1,400 women aged more than 50 years. In 2006, 4,400 job seekers, including 2,530 women, finished a course of business fundamentals organised by the territorial labour exchange offices. According to the data of the Lithuanian Agency of Small and Medium Business Development, during the year 2006 business information and consulting services were provided to 12,810 future and current businesswom- en, i.e. 59.89 per cent of all the customers (as compared to 10,817 women or 59,75 per cent of all the customers in 2005). Both in 2005 and 2006 women were more active business information users provided by business information centres than men.

5.3.1.3. Better conditions for family and work reconciliation.

On 1 July 2006, new amendments and supplements to the Labour Code stipulating paternity leave came into effect. According to Article 179 (1) of the Labour Code, men are entitled to paternity leave from the date of birth of their child until the child is one month old. This month is included in the length-of-service while calculating annual holidays. During that period fathers receive a paternity allowance established by the Law on Sickness and Maternity Social Insurance. The amount of paternity allowance is 100 per cent of the compensated amount of work pay. By the end of 2006, 3,085 fathers took advantage of the new amendment.

5.3.1.4. Efforts to decrease segregation in the labour market ensuring more equality in the economical situation of women and men.

Follow-up trainings were offered to reduce vertical segregation of the labour market. In 2006, 87 women took part in the training on increasing motivation for decision-making, raising competence and capacities. The 2006 Communication from the Commission to the Council, Eu- ropean Parliament, Economic and Social Committee and Committee of the Regions indicate that according to the data submitted by the Eurostat, Lithuania takes the second position in the EU according to the number of women managers (43 per cent). The EU database on men and women in decision-making reveal that in 2006, Lithuania comes the 7th in the EU by the number of women in the highest positions of the top business companies. However, the number of women professors does not reach the EU average. Moreover, there is very deep horizontal segregation of the labour market by gender between different sectors and professions. With regard to the distribution of men and women by profession, Lithuania was the 17th country (of the 25 countries surveyed). With regard to the distribution of men and women in economic sectors, Lithuania is the last but one in the EU. The segregation of the labour market has an impact upon the gender pay gap. The Eurostat reveals that in 2006 gender pay gap in Lithuania equalled the EU average (15 per cent), yet it was very slow to shrink.

http://ec.europa.eu/employment_social/women_men_stats/out/measures_out438_en.htm

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5.3.1.5. With the Programme in place, it became possible to solve the problem of gender equality using the EU structural funds. In 2006, LTL 13.2 million of EU structural funds were used to support 20 projects run by women’s non-governmental organisations, other bodies and organisations. The purpose of these projects is to promote employment of women, with a special emphasis on elderly women or those who come back to work after a maternity leave, increase motivation of women to participate in decision-making processes, change traditional stereotypes about the role of men and women in economic activities, the so-called “female” and “male” type of work and sectors, seek to reduce horizontal labour market segregation, the gender imbalance between different sectors and professions which negatively affects gender pay gap.

5.3.1.6. Increasing cooperation with Lithuanian women’s organisations.

Pursuant to Government Resolution No. 198 of 13 February 2007, women’s and men’s non- governmental organisations are given an opportunity to select and delegate up to four actual members to The Commission on Equal Opportunities for Women and Men that would represent the interests of all women’s and men’s non-governmental organisations. From 2000 until 2006 representatives of the NGOs were invited to take part in the activities of the Commission holding the advisory position. The Programme supports financially membership of Lithuanian women’s organisations in the European Women’s Lobby. With regard to the priorities listed in the Nordic Cooperation Pro- gramme on Gender Equality, support was provided to the meeting of national coordinators of the Nordic and Baltic network of bodies involved in combating violence against women.

5.3.2. international assessment of lithuanian gender EGUALITY achievements

In late 2006, the World Economic Forum published its Global Gender Gap Index, covering 115 countries. Latvia (19) and Lithuania (21) are some of the new EU members that rank high. Only 10 EU member states are higher than Lithuania, including Sweden, Finland, Germany, Denmark, United Kingdom, Ireland, Spain, Netherlands, Latvia and Belgium. All the other EU countries hold a lower position. This report uses new methodology to capture the size of the gap between women and men in four critical areas: economic participation and opportunity, educational attainment, health and survival, and political empowerment. In addition, life expectancy of these countries is taken into consideration. The highest acknowledgement of achievements in gender equality in Lithuania was the joint decision of EU member states, taken on 11 December 2006, to establish a body of the European Union, the European Institute for Gender Equality, in Vilnius. Article 23 of Regulation (EC) No. 1922/2006 of the European Parliament and of the Council lays down that the Institute shall be operational as soon as possible and in any event not later than 19 January 2008.

http://www.weforum.org/en/about/Women%20Leaders/index.htm

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5.3.3. reduction of violence against women

Assistance is provided to women who have experienced domestic violence. The plan is to have their protection strengthened. In 2006, 20 projects of NGOs providing social assistance to victims of domestic violence and working with abusers were supported (by LTL 80,000) through the National Programme on Equal Opportunities for Women and Men 2005–2009. Social, psychological, and legal services were provided to 1,245 persons, including 1,212 women and 33 men. The assistance included temporary housing (provided to 191 people), 722 hours of psychological counselling, 240 hours of legal counselling, 1,997 hours of social workers’ services. Analysis was performed of foreign countries applying measures of isolating the abuser from the victim family. Austrian, German and Canadian legislation was examined and proposals were made about how victims could be protected against domestic violence. Provisional discussion points were developed. In 2007, taking into account the conclusions of the aforementioned analysis and comparing them with the provisions of Lithuanian law, specific draft legislation was developed regulating more efficient legal protection of victims of domestic violence and making it possible to isolate abusers from the victim families for a longer period of time. In 2006, bearing in mind the scope and complex nature of the problem and seeking to improve the situation with regard to domestic violence, the Government of the Republic of Lithuania adopted the National Strategy on the Reduction of Violence against Women and Implementation Plan for 2007–2009. The purpose of the Strategy and its Implementation Plan is to take consistent, holistic and systemic steps to reduce domestic violence against women. The Strategy includes improvement of legislative framework regulating reduction and prevention of violence against women, provision of holistic support to victims of domestic violence, deterrents to violators and strengthening institutional building. The main responsibility for the coordination of implementation of the strategy and reporting to the Government lies with the Commission on Equal Opportunities for Women and Men. In 2007, the Strategy was allocated LTL 1,340,000. One of the key objectives of the Strategy is provision of full assistance to the victim in every municipality, including provision of safe shelter; a social worker’s services, a lawyer’s or psychologist’s consulting services, emergency medical aid. It also stipulates promotion of organisations involved in the reduction of violence against women. Pursuing this goal, the Ministry of Social Security and Labour organised three tenders on the selection of projects in early 2007. The first tender invited bodies and organisations providing social services to abuse victims and ensuring cooperation of stakeholders. The purpose of the tender was to select projects that were mostly in line with the strategic priorities, would help reduce domestic violence against women and provide a range of social services to victims of abuse. In addition, the aim was to promote establishment and support of at least one entity or organisation in every county providing social services to victims of domestic violence and ensuring cooperation between interested parties. LTL 400,000 was allocated from the national budget to fund 13 projects of non-governmental organisations.

22 December 2006 Resolution No. 1330 of the Government of the Republic of Lithuania.

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The second tender selected projects which aim at work with perpetrators promote establishment of more organisators working with perpetrators willing to fight their own violence and gather together perpetrators assistance groups. The tender selected six projects and LTL 100,000 was allocated for their implementation. The aim of the third tender was to select projects of non-governmental organisations working in the area of reduction of domestic violence against women. 13 projects were selected and LTL 400,000 was allocated. The tasks and measures of the National Strategy on the Reduction of Violence against Wom- en are in line with the objectives of the Council of Europe campaign, Stop Violence against Women. The main goals of the campaign are to improve legislative framework, collect and analyse data about violence against women, encourage members of the Council of Europe to pay attention to violence against women on the national scale by implementing various programmes and measures, including assistance to victims of domestic violence their protection and effective prevention. In addition, the purpose of the campaign is to raise public awareness, informing the public that violence against women is a violation of human rights and encourage every citizen to fight this problem. The campaign was started in 2006 and will last until the spring of 2008. Even after the campaign is over, Lithuania plans to further implement the measures related to it.

5.3.4. PROGRAMME FOR THE PREVENTION AND CONTROL OF PROSTITUTION AND TRAFFICKING IN HUMAN BEINGS FOR 2005–2008

Pursuant to the Programme for the Prevention and Control of Prostitution and Trafficking in Human Beings for 2005–2008, efforts have been taken to provide holistic social assistance to the victims of trafficking in human beings and their reintegration into the labour market. In 2006 and 2007, selection tenders were organised for the projects of state and non-governmental organisations with regard to social assistance to victims of trafficking in human beings, their protection and reintegration into society. In 2006, the tender commission selected 13 project proposals for co-financing. Con- tracts were signed with the following organisations: Missing Persons’ Families Support Cen- tre (allocated LTL 67,000), Vilnius Archbishop Caritas Mother and Child Home (LTL 33,000), Kaunas County Women Crisis Centre (LTL 24,000), Alytus town Women Crisis Centre (LTL 27,000), Klaipėda Social and Psychological Assistance Centre (LTL 78,000), NGO Women In- formation Centre (LTL 10,000), Lithuanian Caritas (LTL 90,400), Anykščiai Community Centre (LTL 27,000), Child Home (LTL 25,000), Telšiai Children and Youth Psychological Centre (LTL 21,000), Psychological Support and Consulting Centre (LTL 18,000), Marijampolė county Wom- en’s Home Crisis Centre (LTL 15,000), Association of HIV/AIDS Positive Women and their Relatives (LTL 17,000). During 2006, 13 projects were implemented, receiving support of LTL 455,000.

19 May 2005 Resolution No. 558 of the Government of the Republic of Lithuania.

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During that period, the projects involved 402 victims of trafficking in human beings, including 3 men and 399 women (111 of them were with children). 83 victims (including 35 women with children) received services in-house and 319 victims (including 76 women with children) outside the asylum. Project managers stated that out of 402 project participants, 90 victims acquired general and/or vocational education, 122 integrated into the labour market, 149 reintegrated socially, 245 took a retrainer or computer literacy course, continued their studies and listened to various lectures or received consultancy services. The events organised by project managers brought together 3,800 persons: victims of trafficking in human beings (82), potential victims of trafficking in human beings (492), other participants (3226). The majority (85 per cent) of all the event participants were other people, including pupils, partners of project managers, NGO representatives, police, and employees of other governmental bodies. About 70 per cent of all the other participants were pupils. Victims of trafficking in human beings and potential victims account for 15 per cent of all the participants. In 2006, a survey was carried Analysis of the Situation in Lithuania with regard to Underage Persons who became Victims of Trafficking in Human Beings and the Outline of their Rehabilitation Programme. The purpose of the survey was to examine the growth dynamics and trends of victims of trafficking in human beings; assess services provided to them; examine the modern practice of rehabilitation of underage persons who became victims of trafficking in human beings; find out the scope of the problem in Lithuania; develop the pilot outline of the national action programme targeting underage persons who became victims of trafficking. The survey showed that the number of officially registered minors as victims of trafficking in human beings is not high. In 1999 - 2006 (1st half) the total number of officially registered minors as victims of trafficking in human beings was 47 persons, i.e. on average 6 victims per year. However, that number represents only a small fragment of all the sexually abused minors. During that period, the number of sexual abuse victims was 1,205 minors, including 4 per cent of the minors that were victims of trafficking in human beings. In 2007, the tender selected 13 projects for co-financing, allocating LTL 4,000.

5.4. social integration of foreigners granted asylum

Integration of foreigners granted asylum is the process of adaptation of a concrete person/ family in a foreign environment which starts at the Refugee Reception Centre (hereinafter referred to as the Centre) and continued in the territory of municipalities. During that process the person/ family is provided (as needed) educational, medical, social and other services to help the person/family join the community and labour market.

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Support areas include: national language teaching; education; employment; housing; social security; social protection, health care; public awareness raising about integration of foreigners. The support provided in the Centre lasts up to six months. If during that period the foreigner who had been granted asylum fail, for some reasons, to get prepared for the integration in the municipal territory, this period could be extended (by reviewing the decision every quarter) up to twelve months. The period of stay in the Centre for unescorted underage foreigners, taking into account the best interests of the child, may be extended until they become 18 years old. If the foreigners granted asylum belong to vulnerable groups (unescorted underage foreigners, pregnant women, victims of torture, persons with psychic disorders, persons of pension age, disabled people, single parent families with underage children) the period of stay in the Centre may be extended but it may not be longer than 18 months. After the integration in the Centre, support is further provided in the municipal territory and lasts up to twelve months from the date when foreigners granted asylum leave the Centre. Their stay in the municipality may not be longer than the period of temporary stay stated in the permit of the Republic of Lithuania or until the person leaves the Republic of Lithuania. If the vulnerable groups fail to integrate during the established period, the Commission may extend it but it may not be longer than the period of temporary stay stated in the permit of the Republic of Lithuania. The total duration of stay in the Centre and the municipal territory may not be longer than 60 months. The Commission shall adopt the decision concerning the extension of integration support within 30 days following the application of the foreigner granted asylum on the basis on his/her application, proposals and conclusions made by the body implementing integration and the Centre. With a view to ensuring better and more efficient integration of foreigners granted asylum, the Ministry of Social Security and Labour passed an order including a provision on the new vulnerable group: families with three or more children. Since the majority of foreigners granted asylum have three or more children, one parent is working yet receiving the minimum pay, it is very difficult for such families to survive without the state support. These families apply for the extension of integration period and state support. With that in mind, families with three or more children have been included in the category of vulnerable groups whose period of integration could be extended by decision of the Commission and they may eligible for state support.

5.5. 2004–2007 PROGRAMME FOR SOCIAL ADAPTATION OF CONVICTS AND PERSONS RELEASED FROM PLACES OF IMPRISONMENT

The social security policy of socially vulnerable groups includes 2004–2007 Programme for the Social Adaptation of Convicts and Persons released from the Places of Imprisonment (hereinafter referred to as the Programme). The purpose of the Programme is to ensure social integration of socially vulnerable groups and improve legislation regulating social support to them.

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In 2006–2007, the role of the Ministry of Social Security and Labour in the process of adaptation and rehabilitation of convicts and persons released from the places of imprisonment was further implementation of the measures set forth in the Programme. In 2006, by way of open tender 30 projects were selected and the amount of LTL 100,000 was allocated for their implementation. During the reporting period, the project participants included 2,261 members of the target group, including 1,039 convicts (46 per cent) and 1,222 (54 per cent) persons released from places of imprisonment. The majority of these participants were men, 93.8 per cent. The percentage of women (6.2) was two times less than in 2005. Location-wise, projects were implemented in the following counties: Vilnius, Kaunas, Marijampolė, Utena, Panevėžys, Šiauliai, Telšiai, Tauragė and Klaipėda. Most of the convicts were provided information and consulting (pastoral/psychological service; art therapy; religion related assistance; lectures on different dependencies, correspondence, group work, etc.) as well as catering services, 47.6 and 25 per cent respectively. Psychological assistance was provided to 7.2 per cent of the convicts. Services related to employment and work therapy as well as delivery of most necessary supplies were provided to 6.8 and 6.7 per cent of the convicts, accordingly. The least support was provided in the following areas: social work (2.1 per cent), legal consulting and intermediation (1.3 per cent), health care (1.2 per cent), vocational consulting and vocational training (0.7 per cent) and temporary housing (0.4 per cent). The total number of persons trained was 193. They included volunteers, social workers and other staff. In 2006, the Ministry of Social Security and Labour collected information from municipalities about support provided to people released from places of imprisonment. Requests for single allowances were satisfied in a majority of cases and the amount provided to each convict ranged from LTL 40 to 125. These requests were among the most popular. During 2006, Lithuanian city and town municipalities allocated LTL 182,662 satisfying 1,987 applications (the average amount of one allowance was LTL 90); catering services were provided in 1,958 cases (issuing food coupons or offering food in charity canteens). 789 former convicts took part in employment programme, housing was provided to 331 persons, and 1,279 people were provided other social support. In 2007, the Ministry of Social Security and Labour selected 21 projects, allocating LTL 300,000 for them. Their implementation is underway.

5.6. conclusions

The Constitution and other laws of the Republic of Lithuania prohibit discrimination. Yet some population groups do face discrimination in various parts of their life. The success of legal system regulating non-discrimination depends on public support. This means that the public should be made aware and informed about the negative impact of discriminatory conduct.

9 February 2004 Resolution No. 143 of the Government of the Republic of Lithuania

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The disabled should enjoy the same rights like other people; they should be offered the same education, employment, leisure opportunities as well as the opportunity to be involved in social, political and community life. Where such conditions and measures are not effective, special means are provided ensuring a better position for the disabled. In 2006, the Ministry of Social Security and Labour carried out the Programme for the Provi- sion of Technical Aids to Residents and the Programme for the Development and Implementation of Effective System of Provision of Technical Aids to Residents living in the Regions. During the same year, the Centre of Technical Aid for the Disabled opened two more regional divisions, one in Alytus and one in Utena. In 2006, the Ministry of Social Security and Labour developed and the Government of the Republic of Lithuania adopted the Programme for the Adaptation of Housing for the Disabled for 2007–2011 (hereinafter referred to as the Programme). The purpose of the Programme is to seek independence and social integration of the disabled, meeting their special needs and adapting housing and its environment to them. With a view to supporting disabled students, the Ministry of Social Security and Labour, along with the Ministry of Education and Science, drafted a Description of the Procedure of Providing Financial Support to the Disabled Studying in Higher Educational Establishments. The Description was approved by the Government on 29 August 2006. It regulates provision of financial support to disabled students studying in higher educational establishments, its allocation and reporting for the use of received funds. With a view to ensuring better and more efficient integration of foreigners granted asylum, the Ministry of Social Security and Labour passed an order including a provision on the new vulnerable group: families with three and more children. These families are now considered as a vulnerable group and by decision of the Commission, their integration period could be extended and they could be eligible for state support.

168 Social Report 2006–2007 MEMBERSHIP INTO THE Eur6opean Union

6.1. ACTIVITY RELATED TO MEMBERSHIP OF LITHUANIA IN THE EUROPEAN UNION

As Lithuania has become the member of the EU, the nature of Lithuania’s European policy has respectively changed; meanwhile activity of state institutions operating in the area of the EU affairs has gained a new dimension. Policy on European issues has become an inseparable part of internal policy. Decisions taken in respect of these issues have direct impact on the most important areas of the internal policy of Lithuania. Once participation in activity of the EU institutions commenced exercising rights of real members, formulation of consistent positions of Lithuania as a full-righted member of the EU on issues under discussion in the EU institutions was initiated in order to achieve the best possible representation and implementation of Lithuanian interests in the EU. In order to implement it’s internal and foreign policy priorities, Lithuania is taking part in EU processes not as a passive observer but as an active and influential regional state that is able to underline and defend it’s interest in issues under consideration at European level. It is important to ensure that Lithuania would be properly and effectively represented in all levels of the EU institutions. The top decision making institution in the EU is the Council of Ministers, therefore, most attention in this part of the document is given to activity of the aforementioned Council.

6.1.1 THE MOST RELEVANT EU AGENDA ISSUES in the AREA OF SOCIAL AND EMPLOYMENT POLICY

6.1.1.1. Initiatives of Presidencie’s

During the first six months of 2006, Presidency was held by Austria. During its Presidency, Austria focused its priority attention on globalization and demographic changes. According to them, it is becoming very important to modernize the European social model, components of which are – a thorough social system, strong public sector, obligations to promote equal opportunities, fight against

Social Report 2006–2007 169 6 C h a p t e r all forms of discrimination, poverty, and social exclusion, high environmental standards, and active regional policy. Demographic changes demand and shall further demand more intense integration of older people into labour market, reconciliation of work and family life, focusing of family policy on children, and gender mainstreaming into various areas of life. The issues that were under special attention during Austrian Presidency were as follow: – flexicurity; – simplification, modernization, and rationalization of an open coordination method in social policy; – fight against discrimination. In the second half of 2006, the EU Presidency was held by Finland, aiming to promote the competitiveness of the European Union (EU) and member states in the global environment as well as enhancement of European economic growth. Finland especially focused on promotion of quality of work and work efficiency, effective control of immigration, and assurance of well functioning welfare state functions. Finland emphasized that the aforementioned aims should be achieved considering their consequences on vulnerable members of the public. It supported position that competitive Europe with a well-developed social dimension continues being one of the main aims of the EU. A lot of attention was given to demographic changes. While cooperating with the Commis- sion, Finland was striving to identify necessary measures for impeding on negative demographic changes during the period of 2006–2010. In order to resolve issues of the labour market and ensure its flexibility, discussions on the Green Paper of the issues of labour law commenced during the Fin- ish Presidency. At the same time Finland – on the basis of Commission communication on decentt work – continued debates regarding social aspects of globalization.

6.1.1.2. Activity of the European Commission

In 2006, the Annual Policy Strategy presented by the Commission paid a lot of attention to the social policy aspect. In 2006, the European Commission chose to develop the following key initiatives on social solidarity: – propose a communication and strategy in the area of gender equality; – propose new Community strategy regarding health and safety at work; – adopt the Green Paper regarding development of labour law and deliver further activities; – implement the European youth initiative in all aspects: to provide young people with human capital and qualifications required for knowledge-based economics; reduce unemployment among young people and facilitate the labour market entry conditions; improve instruments for facilitation of family life, e.g. child care; fight poverty and encourage healthy life style as well as active attitude toward citizenship.

6.1.2. MEETINGS OF THE EU COUNCIL OF MINISTERS

Continuing the review of decisions taken in the EU Council of Ministers provided in the Social Report of 2005, we provide information regarding meetings that took place in 2006 and decisions made.

170 Social Report 2006–2007 I NTEGR A T i o N I NT O THE European Union

6.1.2.1. The Employment and Social Policy Council

During the meeting of the Council that took place on 10 March 2006, the following issues were discussed: - Preparation for the European Council for review of the Lisbon Strategy. The ministers have discussed and approved the Key Messages, which were supplied to the meeting of the European Council as contribution of the Employment, Social Policy, Health and Consumer Affairs Council into Lisbon Strategy implementation discussion. The Key Messages are based on the following documents: a) Communication from the Commission for the Spring European Council entitled “Time to move up a gear”; b) Joint Employment Report; c) Joint Report on Social Protection and Social Inclusion; d) Communication from the Commission entitled “Working together, working better: A new framework for the open coordination of social protection and inclusion policies in the European Union” as well as the joint opinion regarding this communication from the Social Protection Committee and the Employment Committee; e) Report from the Commission for the Council, European Parliament, the European Eco- nomic and Social Committee, and Regional Committee regarding equality of men and women in 2006. In the Key Messages, most attention was given to the social dimension of the Lisbon Strat- egy. It provides that implementation of the revised Lisbon Strategy should ensure progress should be achieved in parallel in areas of employment promotion, competitiveness, and social cohesion. In order to ensure vitality of the European social model, greater efforts are required in respect of economic development promotion, higher level of employment, and at the same time strengthening the social protection and social inclusion. Social dialogue is especially important in order to effectively implement respective measures in the areas of employment and social policy. – The Ministers were provided with information regarding Work programmes of Commit- tees on Employment and Social Protection for 2006. – A general approach was reached on the Proposal for a Regulation of the European Parlia- ment and of the Council amending Council Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community (Miscellaneous amendments 2005) (LA). – Information was heard on the Report of the Commission regarding transitional period instruments for free movement of workers set out in the Treaty of Accession of 2003. The Report from the European Commission provides a conclusion that movement of labour force from new member states that commenced upon opening of the borders was mainly useful especially for those states, which did not apply transitional periods, i.e. United Kingdom, Ireland, and Sweden. It is also underlined that the aforementioned member states are distinguished by rapid economic growth, reduced unemployment, and greater employment levels. Meanwhile member states that applied restrictions could have faced effects of such limitations, i.e. illegal work and etc. During the meeting Ministers of Spain, Portugal, and Finland informed that their states on the national level have made a decision not to apply restrictions on free movement of labour force from new member states as from

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1 May 2006. Germany, Denmark, Belgium, Austria, and France informed that their Governments have decided to extend application of restrictions for another three yeas. This period of time shall be used to monitor the situation and certain alleviations as well as cancellation of limitations is possible, although access to the labour market shall not be made completely free.

The following issues were discussed in a meeting of the Council that took place on 1 June 2006: – Continuing discussion that took place in meetings of the Council of Ministers on mainly all areas, the Ministers have exchanged their views regarding Review of the sustainable development strategy. The speakers drew attention to globalization and demographic challenges, underlined the need to give required attention on issues of social cohesion, reduction of poverty, defining clear references between the Lisbon and Sustainable Development Strategies, which should strengthen each other. The Ministers have also underlined the special importance of the reciprocal relation with citizens, their inclusion both developing strategies and instruments as well as providing them with a realistic possibility to utilize positive implementation results of such instruments. The Ministers also endorsed a joint opinion of the Employment Committee and the Social Protection Committee regarding revision of the Sustainable Development Strategy, which sets out that the key aim of this Strategy should be focused on development of socially integrated society with more and better jobs. This opinion was approved by a common agreement. – The Ministers have heard the information provided by the Commission and by the Chair of Social Protection Committee on the Communication from the Commission “Implementing the Community Lisbon programme: Social services of general interest in the European Union. One of the aims of the Communication in this respect is to consider a special nature of social services and ascertain what Community regulations apply to these services. In the European Union there is a continually increasing part of social services that fall under the scope of application of Commu- nity regulations on the internal market and competition. Participation in the EU encourages better utilization of usually limited budget resources allocated for social policy, increase the variety and quality of provided services. The area of social services is peculiar as the balance line between joint European interests and subsidiarity principle is rather vague, therefore before taking specific action, wide and reasoned discussions are required. Consultations shall continue further and decision shall be made whether regulation of this area on the EU level requires a legal act or instruments of recommendation nature shall be sufficient. – According to a joint decision of the Ministers, a partial general approach regarding revision of documents related to coordination of social systems was reached: the Proposal on the European Parliament and the Council regulation implementing the Regulation No. 883/2004 on coordination of social security systems and on the Proposal on the European Parliament and Council decision supplementing the Regulation No. 883/2004 on coordination of social security systems and setting the content of Annex XI. These documents set out certain implementation provisions of the previous legal acts and should be approved in order to commence the coordination of social security systems according to new regulations consolidated in the new Regulation of 2004 on coordination of social security systems. – The Ministers achieved a political agreement regarding the Regulation, which suggests establishing the European Gender Institute. It should be committed to helping institutions of he

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Community – and especially the Commission – as well as the members states to fight gender discrimination, promote gender equality, and calling attention of the EU citizens to these issues. The proposed functions of the institution: to accumulate, systemize, analyze, and distribute impartial, reliable, and comparable information on gender equality issues including study results collected from the EU states, Community institutions, other institutions, non-governmental organizations; design methods on improvement of information comparability, impartiality, reliability while defining criteria for consistency and coherence of information; prepare, analyse, and assess methodological instruments this way supporting gender equality integration in all areas of Community policy; deliver reviews on gender equality situation in Europe, and publish reports on operation of the Institute on the annual basis; organize expert meetings for development of studies, organization of conferences, campaigns, round table discussions, seminars, and meetings on the European level. The working programme of the Institute shall correspond to priorities of the Community and Commission agenda, including work with statistics and studies. Lithuania has been delivering an active information campaign in order to achieve the establishment of the head-office of the Institute in Vilnius. – The Ministers unanimously agreed on Conclusions of the Council on implementation of the Beijing action platform – undertaken by member states and the EU institutions – in the area of health care. The attention was mainly focused on gender mainstreaming in health policy. The conclusions are encouraging members states to further coordinate collection, accumulation, and dissemination of timely provided, trustworthy, comparable data grouped according to gender and age, and focus on the key areas mentioned in the Beijing action platform as well as regularly review the achieved progress. – The opinion of Employment and Social Protection Committees was heard and approved by joint agreement, discussing the flexicurity elements as well as supplied recommendations of general nature on possible application of these instruments in order to achieve a more effective member state employment policy implementing the Lisbon Strategy. The role of social partners was especially underlined implementing flexibility and security instruments in the labour market as well as further analysis of this phenomenon as well as need for discussions. – The Ministers heard the information provided by the Commission and Presidency about the Proposal for a Directive of the European Parliament and of the Council on improving the portability of supplementary pension rights. The aim of the Directive – to facilitate free movement of workers and their vocational mobility within a member state by decreasing limitations set in member state regulations on additional pension schemes. Discussions in the working group shall continue further, as there are still rather few unresolved issues. Some member states have expressed their doubts in respect to necessity of separate provisions of the Directive, although the Ministers have not taken any decisions. The work shall continue. – There was a unanimous agreement to the decision regarding establishment of the Com- munity programme for employment and social solidarity PROGRESS. According to this legal act, four programmes on employment and social affairs – which are currently undertaken by the Community – shall be joined into one in 2007. This will help to unify and coordinate efforts aimed at achieving Lisbon aims in the areas of social and employment policies. The Programme shall be in place for the period of 2007–2013. It shall be divided into 5 sections that shall correspond to 5 key areas of activity: employment, social inclusion and protection, working conditions, non-discrimination and promotion of diversity, and gender equality.

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Hopefully, implementation of the programme shall positively impact on various stakeholder groups and social partners especially utilizing the anticipated instruments in order to promote employment and improve working conditions; it shall also have indirect impact on all groups of residents through a more effective work and social protection policy formulation and implementation on the basis of the best practice; and it shall also positively impact on equality of men and women as well as the situation of socially vulnerable groups. The final version of the decision, which was approved by the Council, reflects the results of the compromise between institutions of member states and the EU. The following distribution of the Programme for different areas of activity applies: employment – 23 percent, working conditions – 23 percent, social inclusion and protection – 30 percent, non-discrimination and promotion of diversity – 23 percent, and gender equality – 12 percent. The final decision regarding percentages of funding corresponds to the declared Lithuanian objectives as the priority areas defined by Lithuania – employment and social inclusion – are allocated a greater percentage part of the funding than it was anticipated in the primary proposal of the Commission. – The Ministers have unanimously agreed on the Proposal for a Council Decision on Guide- lines for the Employment Policies of the Member States for 2006.

The meeting of the Ministers that took place on 30 November 2006, has discussed the following issues: – A decision was made regarding establishment of the European Gender Institute in Lithuania. – There was a discussion of the Ministers regarding the Green Paper on “Modernizing labour law to meet the challenges of the 21st century”. The aim of the Green Paper is to initiate the process of wide consultations with the entire community of the EU regarding the way the labour law should be revised and reformed in order to encourage greater adaptability of employees and businesses to changes as well as at the same time ensure greater social cohesion in the EU. The Green Paper is based on the idea that the EU member state labour markets are facing problems when coordinating greater flexibility with necessity to ensure social protection. Questions pointed out in the Green Paper are aiming to ascertain the opinion of state institutions, non-governmental organizations, and the entire public regarding the role the labour law might have while implementing instruments that ensure flexibility and security (flexicurity) in the labour market and this way designing the labour market that would be fairer, better corresponding to the needs of employees and employers, and at the same time contributing to increase in the competitive ability of Europe. Member states are requested to assess the current situation in the EU as well as in their national labour markets and point out the need for future reforms, priority directions, and instruments. Also, questions for discussion are raised in separate areas of labour relations, i.e. working conditions for temporary workers; regulation of working time, mobility of workers; problem of illegal work; development of the social dialogue, and etc. Public discussions regarding the Green Paper took place until end of March 2007. Taking into account results of the discussion, the Commission shall issue a communication, which shall set out the guidelines for the EU reform of the labour law and possibly encourage adoption of legal acts or other documents of no legal effect.

– Council conclusions regarding decent work were approved. These conclusions were drafted on the basis of the Communication from the Commission “Promoting decent work for all:

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The EU contribution to the implementation of the decent work agenda in the world”. The conclusions underline particular significance of social partners, the business society, and the widest possible involvement of the civil society into initiatives related to decent work. Besides, especial importance of international organizations – in particular the International Labour Organization (ILO) – in the process of decent work promotion is emphasized. The Council has expressed its support to programmes delivered by the ILO in the area of decent work as well as underlined importance of ratification and implementation of ILO conventions. It also promotes to systematically consider ILO conclusions in relation to the EU international relations. The Council conclusions not only underline the significance of decent work in the EU member states but also in the neighbouring states and other regions of the world. The Council conclusions promote continuation of initiatives and actions aimed at decent work as well as compliments the intention of the Commission to prepare the Com- munication regarding decent work that extends the report until summer of 2008.

– EU actions were discussed aiming to resolve problems pertaining to globalization and demographic changes. This question was a priority in the areas of social and employment policy during the Finish Presidency in the second half of 2006. Documents drafted by two strategic committees in this area – Employment and Social Protection Committees – were submitted for information and approval of the Ministers, which dispute the current situation as well as provide instruments for resolution of problems induced by globalization and demographic changes: a) The opinion of the Employment Committee regarding enhancing higher productivity and more and better jobs including for people at the margins of the labour market. The document underlines that although in respect of long-term perspectives labour productivity and employment is developing in parallel, the short term perspective aims for a compromise between the growth in labour productivity and increasing employment of people vulnerable in the labour market. In order to ensure consistent development of ageing and economically active Europe, it is important to ensure full integration of 30 million people into the labour market. Taking into account the positive political practice analysis, the document provides proposals regarding the political measures promoting both the labour productivity and provision of more and better jobs in a cohesive community. b) The Communication from the Commission “The demographic future of Europe – from challenge to opportunity” – the opinion of the Social Protection Committee of the Commis- sion regarding this document. The Communication of the Commission summarizes the results of discussions initiated by the Green Paper regarding demographic changes in Europe. The Communi- cation suggests possibilities of member states in resolving issues pertaining to reducing labour force and ageing population. Five areas of specific actions that should be undertaken to help member states to adapt to demographic changes: • To promote reconciliation work and family life in a way that future parents might have as many children as they which; • To improve employment possibilities for older people; • To increase productivity and competitiveness appreciating the impact of older and young employees; • To utilize the positive impact of migration on labour market. • To ensure stability of state funding as well as ensure long-tern social protection.

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In its opinion, the Social Protection Committee welcomes the Communication from the Com- mission and states that it agrees to the key conclusions provided therein. The Committee underlined that ageing of population is related not only with economic but also with the social and cultural challenges. On the other hand, elongation of life duration provides new possibilities for older people. In order to utilize their potential to expand the wellbeing of their families and the community, an effective package of instruments is required. Reforms aimed at achievement of set aims – especially the ones that are related to the childcare accessibility, increase of employment among older people, and reduction of poverty – are especially important in this context. Among specific policy areas, which call for member state actions are the following: importance of reconciliation of personal life and work, ensuring gender equality and combating of stereotypes existing in the area, involvement of young people into the labour market, education, investing into education and upbringing of children, increasing social coverage, integration of migrants, the need for pension system reforms, and etc.

– Council Conclusions on the Review of the implementation by the Member States and the EU institutions of the Beijing Platform for Action were approved. While delivering the Beijing action platform initiated during the UN women’s conference of 1995 – an annual review of its implementation is supplied, selecting one of twelve areas. Finland, which was in the EU Presidency at the time – has decided to analyse the issue of institutional mechanism and selected the group of three indicators. These conclusions suggest defining three quanti- tative and qualitative indicators to be used in order to assess implementation effectiveness of this Beijing action platform: 1. Status of governmental responsibility in promoting gender equality; 2a. Personnel resources of the governmental gender equality body; 2b. Personnel resources of the designated body or bodies for the promotion of equal treatment of women and men; 3. Gender mainstreaming

– Council Conclusions regarding equality of men and women were approved. The conclusions are designed in order to define the main directions for promoting participation of men in achieving gender equality objectives. Member states are encouraged to consider promotion of gender equality, role of men in this process, encourage discussions and information regarding distribution of gender-related stereotypes regarding relationships of men and women, and greater participation of men in gender equality promotion. Also, it invites the future European Gender Institute as well as national gender equality institutions to examine the way various circumstances, possibilities, existing structures, and political instruments impact on the situation of men and women. The Council also acknowledges balancing of family and personal lives, importance of respecting interests of children, and the role of social partners in this process. Member states and the Commission are invited to identify challenges and issues that might appear while planning future actions in the process for ensuring gender equality, initiating scientific researches, sharing of good practice and experience, especially encouraging active participation of men.

– There was an agreement to a partially amended proposal on the decision of the Eu- ropean Parliament and the Council, which defines the specific programme for the period of

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2007–2013 “Fight against violence (Daphne) as part of the General Programme “Fundamental Rights and Justice”. The Decision approved the specific programme for 2007–2013 “Fight against violence (Daphne III)”, as a part of the General Programme “Fundamental Rights and Justice”. It is anticipated that on the basis of the Programme, the following actions shall be supported: • Specific actions of the Commission: scientific research, reviews, opinion surveys, formulation of general methodologies, seminars, conferences, expert meetings, organization of public events and campaigns, analytical, monitoring, and assessment activities, and etc; • Financial support to specific multilateral (with participation of no less than 3 member states) projects as per conditions prescribed in annual operational programmes of the Community; • Financial support for operation of non-governmental organizations striving to implement general aims of the programme as per conditions set out in annual operational programmes; • Targeted payment for co-financing expenses related to ongoing European Federation Programme for Missing and Sexually Abused Children, which is observed while focusing on general aim of the European interest in the area of children rights and protection. The programme is designed for all groups of people who are directly and indirectly related to violence, i.e. victims of violence, youth, vulnerable groups, as well as teachers, social workers, local and national governmental institutions, medical and law enforcement employees, and etc. – Discussions were continued on the Proposal for a Directive of the European Parliament and of the Council on improving the portability of supplementary pension rights. The aim of the Directive is to facilitate free movement of employees as well as their vocational mobility within a member state, reducing limitations set out in member states regulations controlling additional pension schemes. The Directive aims to ensure transference of rights to an additional pension, which covers acquisition, retention, and transference of such rights in case of interruption of labour relations. The Directive applies to additional pension schemes except for those that fall under Council regulation No. 1408/71. The draft Directive sets out a demand for a pension scheme manager to properly explain the way interruption of labour relations any impact on additional pension rights of a participant. The draft Directive provides a possibility for states to extend the Directive implementation period until 10 years. This issue is relevant only to older member states that have occupational pension schemes, which operate under rigid requirements for their members. The draft Directive also provides that member states may decide not to apply requirements of the Directive on certain specific additional pension schemes. In the discussion, ministers of member states expressed their opinions regarding the most problematic issue pertaining to transference of pension-related rights, and while summarizing the discussion, the chair said that the majority of ministers thought that provisions related to transference of rights should not be provided in the proposed Directive. This issue should be regulated on a voluntary basis.

6.1.2.2. The EU Education, Youth, and Culture Council

Meetings of this Council usually involves participation of few ministers of each EU member state, as issues under discussion of the Council are related to three areas of activity – education,

Social Report 2006–2007 177 6 C h a p t e r culture, and youth policy. The Ministry of Social Security and Labour is responsible for youth policy issues. In a Council meeting that took place on 12 February 2006, Council conclusions regarding implementation of the European Youth Pact were approved. This document is designed in order to review effectiveness of implementation of the European Youth Pact as well as define guidelines for further progress. The essence of the document is comprised of the address to the European Council, inviting it to promote further progress in the area of instruments designed for youth while implementing the European Youth Pact anticipated in the Lisbon Strategy. The European Council is invited to encourage member states to design national reform programmes and the Commission – in the annual progress report to provide more systematic and noticeable information regarding the Pact, which is anticipated in the Lisbon Strategy. On the basis of the Communication from the Commission for the Spring European Council entitled “Time to move up a gear: The new partnership for growth and jobs”, discussion of ministers was held on the way youth policy dimension might be better reflected in the Lisbon strategy implementation process.

In a meeting that took place on 13 November 2006, a Council Resolution on youth participation and information in order to implement general aims and promote the European citizenship was approved. The document underlines that general priorities regarding youth participation and involvement made an impact on national youth policy and remains especially important promoting active citizenship among young people. It underlines the importance of the role of youth organizations in promoting youth participation. The attention is drawn to the fact that active citizenship should cover not only social and political dimensions, but also cultural, economic, and technology aspects; and the open coordination method in the area of youth should be strengthened though implementation of general aims, development of national youth policy programmes and strategies. There was an exchange of opinions on the topic of “Better understanding and know-how of youth matters” as per questions supplied by the state in Presidency. The ministers were requested to supply their opinion on how all levels of politicians might efficiently utilize results of scientific research in the area of youth as well as the way scientific employees might best contribute to the EU youth policy development. The Ministers have underlined the following aspects in their speeches: • Researches should be focused on the areas, which are of most relevance to youth; • Research topics must be clearly defined and their results should be introduced to the public as well as decision-making institutions; • important design of respective national networks and data bases; • required detailed analysis of research results and their comparison; • significant exchange of good practice of states; • necessary utilization of statistical data for better understanding of youth situation on the national and European levels, in participation with EUROSTAT; • important participation of youth in all process related to youth issues, structured dialogue between respective authorities and youth organizations.

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6.1.3. ESTABLISHING THE EUROPEAN GENDER EQUALITY INSTITUTE IN LITHUANIA

Implementing one of the general EU policy aims for 2006 – to strive to ensure that certain EU agencies and their divisions would be established in Lithuania – the Ministry of Social Security and Labour in collaboration with the Ministry of Foreign Affairs and the Permanent Representation of Lithuania to the European Union were actively striving to achieve that the head office of one newly established agency – the European Gender Institute – would be established in Lithuania. Representatives of the Ministry of Social Security and Labour – while participating in various meeting of European institutions, activities of working groups, conferences, seminars and meetings – promoted the attitude that Lithuania as a state is perfectly suitable for establishment of the Institute. Exhaustive materials were prepared on achievements of Lithuania in the area of gender equality as well as arguments regarding suitability of Lithuania for establishment of the Institute. These materials were distributed to ambassadors of the EU states as well as other responsible EU institutions. Specific actions in respect of the establishment of the institute in Lithuania, which commenced in 2004, were intensified to the maximum in 2006. In a meeting of the Employment and So- cial Policy Council, which took place on 1 December 2006, ministers of member states have reached a unanimous decision regarding establishment of the Institute in Lithuania.

6.1.4. Lithuanian membership and delivery of eu OBLIGATIONS

The Ministry of Social Security and Labour have been consistently delivering EU membership obligations in the areas of social policy and employment. Employees of the Ministry have been regularly participating in activities of the EU institutions discussing the draft EU legislation and implementation possibilities as well as practice. Taking into account the newly adopted EU directives and other legal acts, the plan for transposition of EU directives is continuously updated. The national legislation is drafted on the basis of which the provisions of the EU directives are transferred into the Lithuanian legal system. During the year 2006, employees of the Ministry of Social Security and Labour have been actively participating in meetings of the EU Council working groups and Committees, where presented the Lithuanian position regarding issues under discussion, i.e. they participated in meetings of the Social Affairs Working Party, Youth Working Party, Employment Committee, and the Social Protec- tion Committee, etc. Among the most important issues that were discussed, negotiations regarding directive on certain aspects of organization of working time, PROGRESS programme, amendments of the regulation regarding coordination of social security systems, the regulation on the establishment of the European Gender Equality Institute, etc. There was a more active participation in the Committee meetings organized by the Commis- sion, which supervise implementation of strategies and programmes, delivery of financial obligations, and other relevant issues. The Ministry representatives participated in 43 meetings of this nature. The greatest number of meetings were coordination meetings for authorities pertaining to the

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European Social Fund and European Community Initiative EQUAL, other attended meetings were on the European Refugee Fund Committee, Working Group on Asylum, High Level Working Group on Joint Social Responsibility, High Level Working Group on Affairs of Disabled, Administrative Commission and the Advisory Committee of Social Protection of Migrant Workers, Employment Promotion Advisory Committee, Working Group on Experts of Personal Protective Measures, Ad- visory Committee for Equal Opportunities for Men and Women, Advisory Committee on Freedom of Movement of Employees, and other institutions. Representatives of Lithuania also participated in meetings of the European Foundation for the Improvement of Living and Working Conditions as well as the European Agency for Safety and Health at Work. Plans for transposition of EU directives and implementation of the other legal acts are drafted using LINESIS. This system also registers entries regarding transfer of legal acts and implementation stages. While collaborating with the Ministerial departments, proposals regarding transposition and implementation of EU legislation are drafted and registered as well as accumulated in the LINESIS database. Also, supervision of the EU legislation is undertaken. Continuous monitoring of implementation of registered instruments is delivered, i.e. the Ministry submits the Office of the Government of the Republic of Lithuania information of standardized nature on implementation of instruments on a monthly basis. In 2006, the following directive transference plans were designed and implemented: the Euro- pean Parliament and Council Directive 2005/36/EC of 7 September 2005 on recognition of professional qualifications, the European Parliament and Council Directive 2006/54/EC of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (re-cast version), the European Parliament and Council Directive 2006/42/EC of 17 May 2006 on machinery and amending Directive 95/16/EC (recast), the European Parliament and Council Directive 2006/25/EC of 5 April 2006 on the minimum health and safety requirements regarding the exposure of workers to risks arising from physical agents (artificial optical radiation), the European Parliament and Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services. The Ministry of Social Security and Labour notifies the European Commission via the Notifi- cation Base for National Implementation Measures about the national legislation, which implements the regulations, directives, and other EU legal acts.

6.1.5. PARTICIPATION IN OPERATION OF EUROPEAN judiciary institutions

Upon accession, Lithuania has gained a right to actively participate in judiciary institutions of the EU, i.e. the European Court of Justice and the Court of First Instance. In 2006, the Ministry of Social Security and Labour analysed numerous number of cases heard at the European Court of Justice. In October 2006, the Ministry together with other stakeholders (the Office of Equal Opportunities Ombudsperson, Department for Disabled under the Ministry of So- cial Security and Labour), as well as the Lithuanian Foster Care Society for Intellectually Challenged

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“Viltis” have decided to submit comments on the case heard in the European Court of Justice No. C-303/06 S. Coleman vs. Attridge Law and Stewe Law on the Council Directive 2000/78/EC of 7 No- vember 2000 establishing a general framework for equal treatment in employment and occupation. This case questions whether the Directive 2000/78/EC provides protection from direct discrimination and harassment to persons listed in the Directive (specifically in this case – disabled), but also for employees who even though are not disabled, but due to their relation with a disabled person, they are created less favourable conditions and they are faced with harassment. As the Directive in- terpretation arising from this case shall have critical impact on situation of disabled in the entire EU, a decision was made to supply comments. In its written comments, the Republic of Lithuania noted that the definition of discrimination supplied in the Directive should be wider and cover not only persons included in a certain groups but also people related to such persons.

6.1.6. OPERATION OF MISSOC

The MISSOC information system is providing the key information on social security in the European Union member states, Switzerland, and states that belong to the European Economic Area. This information system is comprised of MISSOC comparative tables, and the MISSOC-Info publication. The system operates in English, German, and French languages and is updated twice per year. The Ministry of Social Security and Labour is participating in operation of the MISSOC since December 2003. In January and July 2006, the Ministry of Social Security and Labour as well as other responsible institutions of the European Union member states, have submitted the most up-to-date information regarding the social security in their states in the form of the MISSOC (the Mutual Informa- tion System on Social Protection) tables. Currently, the MISSOC website contains information for 1 January 2006 on social security of Lithuania. Lithuanian information for July shall be provided in the MISSOC website a little later, once it is translated into English, German, and French languages. MISSOC comparative tables comprise of twelve parts: 1 – Financing; 2 – Health Care; 3 – Sickness Benefit; 4 – Maternity; 5 – Invalidity; 6 – Old Age; 7 – Survivors; 8 – Employment Injury and Pro- fessional Diseases; 9 – Family Benefits; 10 – Unemployment; 11 – Sufficient Funding Guarantees; 12 – long-term Care. A brief introduction to social security structures and schemes of each member state is provided at the beginning of the tables. Annex to the tables explains the social protection system pertaining to independently working persons. In January 2006, the Ministry of Social Security and Labour submitted two notices to the MISSOC-Info publication: the annual notice regarding essential changes in the Lithuanian social policy for 2005 and – together with the Ministry of Health – materials on long-term social protection. The main objective of the MISSOC-Info publication is to gain more knowledge about social security systems of states. Once information of all states is summarized, these notices are supplied to the European Commission. MISSOC-Info publication is issued twice per year: one part of it com- prises of annual notices on essential changes in social security, and the other part is comprised of exhaustive information on a relevant topic, which is agreed in advance, e.g. health care rates, social

http://europa.eu.int/comm/employment_social/missoc/index_en.html

Social Report 2006–2007 181 6 C h a p t e r security financing, and etc. MISSOC-Info materials are also published in the aforementioned MIS- SOC website. Twice per year, MISSOC meetings are organized in a state that holds EU Presidency. Perma- nent representatives of all states that are members of the MISSOC participate in such meetings as well as representatives of the European Commission, and observers of international organizations. The MISSOC meetings are organized in order to get acquainted with materials sent-in by the states, concepts are coordinated, presentations are given, and the main and most important changes in the area of social protection are discussed as well as the main trends observed in national and EU legislation. Each meeting focuses on materials of different MISSOC tables, in order to ensure that materials from various states would be understandable, precise, and same concepts would be used. Besides, technical issues are resolved in these meetings, related to collection, supply, and distribution of information. During a meeting, which took place in May 2006, the Austrian old age pension reform was discussed as well as survivors’ benefits, injury at work benefits, and professional disease benefits of other states. Besides, a notice was made regarding reorganization of the MISSOC Secretariat prepared by the European Commission. As in 2003 MISSOC Secretariat was awarded authority for five years, the meeting participants drafted and signed an address to responsible EU institutions regarding the EU reform, which might seriously impede on an operating MISSOC information system, which according to evaluation of the Commission is operating very well. In October 2006, family policy trends were introduced and family benefits were discussed.

6.2. Economic migration

6.2.1. News on economic migration

6.2.1.1. Free Movement of Workers

Free movement of workers is one of the fundamental rights guaranteed to the EU nationals by the European Community Treaty and EU acquis communautaire. While enjoying this right, the citizens of Lithuania, a member state of the EU, can freely move in the EU, however, certain restrictions are applied. From 1 May 2007, when the Netherlands opened its labour market, Lithuanian citizens can get employed without any national restrictions in 22 countries of the European Economic Area (EEA) (including 12 new member states). The other EEA countries apply only minor restrictions, mostly seeking to avoid violations of workers’ right to proper working conditions and remuneration as well as trying to protect sensitive labour market sectors (See Fig. annex 8-3). Basically, only Ger- many and Austria are applying strict requirements to enter their labour markets.

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6.2.1.2. Application of the Free Movement of Workers

Lithuanian residents are actively enjoying their freedom of movement within the EU. Hence Lithuania takes the first place in the EU according to the number of emigrants per 1000 residents. After Lithuania joined the EU, the number of emigrations grew substantially (See table 6.2.1.2-1 below).

International migration in Lithuania, thousands of people

Emigration Immigration Migration Including Lithuanian Year increase / Including Undocu- Total Total Lithuanian citizens on decrease documented mented, % citizens average, % 1990 -8.9 -23.6 0 0 14.7 n/d n/d 1991 -10.7 -22.5 -1.8 8 11.8 n/d n/d 1992 -25.3 -32 -3.1 9.7 6.6 n/d n/d 1993 -24 -26.8 -10.8 40.3 2.9 1.4 48.3 1994 -24.2 -25.9 -21.7 83.8 1.7 0.8 47.1 1995 -23.7 -25.7 -21.9 85.2 2 0.7 35 1996 -23.4 -26.4 -22.5 85.2 3 1.3 43.3 1997 -22.4 -25 -22.5 90 2.5 1.1 44 1998 -22.1 -24.8 -22.7 91.5 2.7 1.2 44.4 1999 -20.7 -23.4 -22 94 2.7 1 37 2000 -20.3 -21.8 -19.2 88.1 1.5 0.8 53.3 2001* -9.5 -14.2 -6.9 48.6 4.7 0.7 14.9 2002* -8.9 -14 -6.9 49.3 5.1 0.8 15.7 2003* -13.2 -17.9 -6.9 38.5 4.7 1.3 27.7 2004 -34.4 -39.9 -24.7 61.9 5.6 3.4 60.7 2005 -33.2 -40 -24.4 61 6.8 4.7 69.1 2006 -4.4 -12.6 n/d n/d 7.7 5.5 71 Total: -329.3 -416.5 -238 58.4 86.7 24.7 43.7

* During the period of 2001-2003 data on undocumented emigration were calculated together; therefore, to get a figure for every year they were divided into three equal parts n/d no data available

Data of the Statistics Department under the Government of the Republic of Lithuania Table 6.2.1.2-1

As seen from the data of 2006, the number of declared emigration decreased by 19 per cent and immigration grew by 13 per cent. Noteworthy, immigration of Lithuanian citizens, also

Social Report 2006–2007 183 6 C h a p t e r known as return immigration, increased by 17 per cent and hit the record during the entire period of Lithuania’s independence, reaching 5.5 thousand people. Despite the fact, net official immigration remains negative, i.e. emigration is higher than immigration by 4.9 thousand people. Yet some positive trends appear to be present: negative net official migration dropped by 44 per cent in Lithuania.

6.2.1.3. Economic Migration Management Strategy

As a result of emigration, Lithuania is the country which mostly suffers from the loss of the working population in the EU. A decrease in the number of Lithuanian residents and the scale of emigration is a matter of great concern as it means a reduction of Lithuania’s intellectual potential, loss of investment into human capital, a threat of slowing-down technological advancement, scientific and economic development and the shortage of labour force in certain economic sectors. Bearing in mind the scale and consequences of migration, a working group headed by State Secretary Kairelis of the Ministry of Social Security and Labour was set up pursuant to the Prime Minister’s Ordinance. Its task was to develop a draft Strategy for the Management of Economic Mi- gration (hereinafter referred to as the Strategy). On 25 April 2007, the Government of the Republic of Lithuania approved the Strategy and Action Plan for 2007–2008. Its objective is to seek having no shortage of the labour force under the currently speedy economic development conditions and avoid negative consequences of migration. Pursuing such a strategic goal, the plan is to seek satisfying the needs of the Lithuanian labour market and encourage economic migrants to come back to their homeland. The Strategy provides for the following tasks and key measures of implementation: 1. develop long-term measures for the management of economic migration; 2. manage determinants of economic migration, with a view to ensuring the balance between demand and supply in the labour market; 3. maintain close relations with Lithuanian economic migrants living in foreign countries and cooperate with operating Lithuanian organisations; 4. accept workers from the third countries, taking into account the flows of returning emigrants of the local labour force and giving priority to the EU nationals; 5. ensure effective interagency cooperation in the area of economic migration. The Strategy will be implemented in 2007–2012 using budgetary allocations. Its implementation will be coordinated by the Ministry of Social Security and Labour. The implementing measures will be developed and implemented by practically all the ministries, state bodies and organisations. Social partners and local authorities will be encouraged to join. In March 2007, the Ministry of Social Security and Labour initiated printing a 60-page publication called LITHUANIA: for those who want to come back. The publication was printed in 10,000 copies and provides the most recent information about work, ways of starting business, taxes, social security and support, health care and education. It is distributed via different bodies working with emigrants, including embassies, Lithuanian communities abroad, labour exchange offices, specialised information events, etc. It was also distributed during the event, Work and Live in Lithuania, organised by the Vilnius office of the International Organisation for Migra-

184 Social Report 2006–2007 I NTEGR A T i o N I NT O THE European Union tion on 14 April 2007. Minister Blinkevičiūtė made an opening speech. Participants included representatives from the Ministry of Social Security and Labour, labour exchange offices, the Lithuanian Labour Market Training Centre which provided advice to the residents regarding the most pressing issues.

6.2.1.4. Events and Meetings on Workers’ Mobility Issues

On 27 October 2006, the Advisory Committee on Freedom of Movement for Workers held a meeting in Brussels during which participants exchanged information about the plan to apply restrictions on the free movement of workers to Bulgaria and Romania (after these countries joined the EU on 1 January 2007) throughout the transition period. At that time, the majority of member states were deliberating their position concerning the matter with their social partners or in Parlia- ments. Lithuania did not have its final position either, although the draft had already been prepared and heard on 24 October 2006 during the sitting of the Tripartite Council when some doubts were expressed. Lithuanian trade unions, similarly to those of other member states, were concerned about cheaper labour force. Hence two main alternatives were considered: either to open the labour market fully or open it with some safeguard clauses. Later representatives of the European Commission said that 2006, the European Year of Workers’ Mobility, highlighted innovation, information and confidence of EU nationals about their right to move freely both in terms of geography and professional mobility. The meeting participants were provided several extracts of the rulings made by the European Court of Justice: – it was recognised that the EU law does not provide for the right of free movement of workers for the spouse of the EU national, who is a non-EU national, to work in a state, other than the state in which his or her spouse, an EU national, is working; – in the case the European Commission vs. Spain it was ruled that the length-of-service in the public service shall be summed up while moving between member states. On 6-7 March 2007 in Brussels, during the meetings of the Advisory and Technical Commit- tees on the free movement of workers participants exchanged information about restrictions on the free movement of workers during transitional period to Bulgaria and Romania after these countries joined the EU on 1 January 2007. Lithuania’s position concerning the free movement of workers remains to be liberal and it decided not to apply any restrictions on the free movement of workers. The Czech Republic, Cyprus, Finland, Latvia, Poland, Slovenia, Slovakia, and Sweden have also opened up their labour markets to the nationals of Bulgaria and Romania. During the latter meeting the European Commission, taking into account the more frequent concerns with regard to the shortage of statistics, stated that with the movement of workers getting less restricted, the opportunities to collect statistical data become limited, despite the ambition of national statistical bodies to collect them. The representatives of the European Commission provided information about the EC supported internet portal, EUlisses, which describes social security rights in the EU (at present, it provides information only about pensions). The information was developed to provide answers to the questions raised with the European Commission (these matters constitute 70 per cent of all the questions raised). The plan is to provide all the information in all the officials EU languages by the end of 2007.

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6.2.1.5. Integration of Foreigners

Recently, there has been an increasing number of foreigners immigrating to Lithuania (in 2006, the Lithuanian Labour Exchange issued about 3,000 work permits, as compared to 1,600 work permits issued in 2005). Lithuania, like the other EU member states, has to think about the integration of people permanently residing in Lithuania, including temporary migrants from the third countries. The Ministry of Social Security and Labour is a state body responsible for the social integration of refugees and foreigners granted temporary humanitarian asylum and represents Lithua- nian interests in informal meetings of National contact points on integration in the framework of the EU. While performing its task, the Ministry fills out questionnaires and exchanges information on the status quo of integration of foreigners in Lithuania and together with other competent bodies, institutions and non-governmental organisations takes part in workshops and seminars concerning these matters. With reference to the material obtained during seminars, the European Commission, helped by its consultants, published a 4-chapter Handbook on Integration for Policy-Makers and Practi- tioners, which, among other languages, was also translated into Lithuanian. The Handbook will be distributed among all the Lithuanian institutions and organisations according to the list prepared by the Lithuanian contact point on integration and submitted to the European Commission. All the chapters contain examples of best practices and conclusions with regard to the matters of immigrant integration, housing in an urban environment, economic integration and integration governance. On 2 March 2007, a meeting between the national contact points on integration took place in Brussels. The representative of Lithuania said that the Seimas of the Republic of Lithuania adopted the Law on Supplementing and Amending the Law on the Legal Status of Aliens. The new law include provisions related to the integration of foreigners, transposed from the EU directives (family reunification, long-term residents, victims of trafficking in human beings, persons who need international protection, studies). Moreover, in order to obtain the status of a permanent resident, new requirements have been set: the applicant should pass the exam on the national language and the basics of the Constitution. The meeting also discussed preparation for the informal gathering of EU ministers responsible for integration on 10–11 May 2007 in Potsdam, preparation for the European

Law No. X-924 of 28 November 2006 on Amending Articles 2, 6, 7, 8, 11, 17, 18, 21, 25, 26, 28, 33, 34, 35, 40, 43, 46, 50, 51, 53, 54, 55, 56, 64, 79, 88, 90, 93, 97, 99, 100, 101, 102, 104, 106, 113, 115, 127, 130, 131, 132, 136, 138, 140, Supplementing with Articles 49(1), 101(1), 140(1), Declaring Null and Void Articles 30 and 105, Amending the Title of Chapter X and Amending and Supplementing Annex to the Law on the Legal Status of Aliens (Official Gazette, 2006, No. 137-5199).

Council Directive 2003/86/EC on 22 September 2003 on the right to family reunification (OJ 2004 Special edition, Chapter 19, Volume 6, p. 224)

Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals who are long-term residents (OJ 2004 Spe- cial edition, Chapter 19, Volume 6, p. 272).

Council Directive 2004/81/EC of 29 April 2004 on the residence permit issued to third-country nationals who are victims of trafficking in human beings or who have been the subject of an action to facilitate illegal immigration, who cooperate with the competent authorities (OJ 2004 Special edition, Chapter 19, Volume 7, p. 69).

Council Directive 2004/83/EC of 29 April 2004 on minimum standards for the qualification and status of third country nationals or stateless persons as refugees or as persons who otherwise need international protection and the content of the protection granted (OJ 2004 Special edition, Chapter 19, Volume 7, p. 96).

Council Directive 2004/114/EC of 13 December 2004 on the conditions of admission of third-country nationals for the purposes of studies, pupil exchange, unremunerated training or voluntary service (OJ, 2004, L 375, p. 12).

186 Social Report 2006–2007 I NTEGR A T i o N I NT O THE European Union year of intercultural dialogue (2008) and other items related to the integration of immigrants. The meeting spoke about the recently implemented project on the use of voluntary work in the integration process of foreigners. The project developed the following recommendations: – support for immigrant organisations; – voluntary work should not restrict the opportunity to obtain social support; – integration programmes should contain measures promoting voluntary activities on the part of immigrants. On 10–11 May 2007, an informal meeting of the EU ministers responsible for the integration of foreigners took place in Potsdam. The ministers spoke about the impact of the integration policy development in the EU and the future priorities in the area of immigrant integration. Following the prevailing statements, the presidency developed a draft document with the Council conclusions which is to be approved by 12 June 2007. The key statements include the following: – migration and integration are complementary; – integration is a two-way street, demanding effort both on the part of immigrants and the receiving community; – co-operation and co-ordination carried out on the EU level has to be continued (followed-up by new editions of Handbook on Integration for policy-makers and practitioners, further development of co-operation among contact points on integration, etc.); – the Council urges the other presidencies and the Commission to actively pursue the Common integration agenda.

6.2.2. Applications of provisions on the coordination of social security schemes

While implementing the principle of the free movement of persons, an important role is played by the coordination of social security schemes of the EU member states, with a view to protecting social guarantees of migrant workers and their family members. When Lithuania joined the European Union, the EU regulations on the coordination of social security schemes became directly applicable in the country. Experts from the Ministry of Social Security and Labour take part in the activities of the Administrative Commission on Social Security for Migrant Workers of the European Communities and the Council Social Questions Working Party. Together with them, they examine new draft legislation regulating coordination of social security schemes.

6.2.2.1. Amendment of Regulations on Coordination of Social Security Schemes

Taking into account amendments made to the national legislation and seeking to avoid the lack of legal clarity with regard to erroneous references to the national legislation, it is essential to regularly update entries of member states in the annexes to the regulations on the coordination of social security schemes. In December 2006, a new regulation was adopted: Regulation No 1992/2006 of the European Parliament and the Council amending Council Regulation (EEC) No 1408/71 on the application

Social Report 2006–2007 187 6 C h a p t e r of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community. This regulation amended the entries made by the Republic of Lithuania in Annex IIa to Regulation (EEC) No 1408/71 with regard to special non-contributory benefits paid by the EU and EEA. Relief compensations paid in accordance with the Law on Pay- ment of State Allowances were included in Annex IIa.

6.2.2.2. Coordination Mechanism of Social Security Schemes

On 29 April 2004, the European Parliament and the Council adopted Regulation (EC) No 883/2004 on the coordination of social security systems which will replace the currently effective Regulation (EEC) No 1408/71. Regulation (EC) No 883/2004 will be applicable only after the implementing regulation is adopted. On 31 January 2006, the European Commission presented a new draft implementing regulation. This proposal finalises the process of modernising coordination of social security schemes, attempts to improve the current procedures by simplifying them and by defining the implementation procedures of rules set forth in Regulation (EC) No 883/2004 for all the stakeholders (insured persons, their employers if necessary, social insurance bodies, competent authorities of member states). On 24 January 2006, the European Commission put forward a proposal amending certain points in Regulation (EC) No 883/2004 and laying down the content of Annex XI. Annex XI sets forth additional provisions concerning the application of certain national legislation of member states to make sure that Regulation (EC) No 883/2004 is smoothly applied in them. Due to the complex nature of the new implementing regulation, it was decided to examine it in parts. Moreover, with a view to determining whether the proposed measures are of horizontal character (i.e. they take into account national characteristics of social security schemes that are similar to several member states and hence should be included into the new implementing regulation) or characteristic only of certain member states (and hence should be included into Annex XI to Regula- tion (EC) No 883/2004), the Council Social Questions Working Party agreed with the proposal of the then Austrian presidency to examine both proposals of the Commission together. In accordance with such a procedure, the Council approved Titles I and II of the new implementing Regulation on 1 June 2006. During the Finnish presidency in the second half of 2006, the Council Social Questions Work- ing Party examined chapter 4 of Title III of the new implementing Regulation providing for the examination of applications concerning pensions. The Council approved the proposal chapter on 1 December 2006. During the first half of 2007, on the initiative of the German presidency, the Council Social Questions Working Party further examined chapter I of part III of the proposal regulating payment of sickness, maternity and paternity benefits and chapter I of part IV regulating financial issues related to compensation of health services. The Council approved the provisions on 30 May 2007. The Council also approved the relevant amendments to Annex XI of Regulation (EC) No 883/2004.

188 Social Report 2006–2007 I NTEGR A T i o N I NT O THE European Union

6.2.2.3 Twinning Project on Strengthening Administrative Structure of Social Security Coordination

Since September 2006, the Ministry of Social Security and Labour in cooperation with the Dutch Ministry of Social Affairs and Employment started implementing a twinning project. The key purpose of the project is to strengthen institutional and administrative capacities of competent Lithuanian institutions, and present to judges and specialists of competent institutions the rules of social security coordination, the practice of their application and relevant rulings of the EC Court of Justice. Specialists of the Ministry of Social Security and Labour together with the Dutch experts conducted training for the specialists of the Lithuanian competent institutions. A one-day seminar was organised for the judges of the Lithuanian administrative courts, followed by bilateral meetings with the Dutch experts. Together they examined the rulings of the EC Court of Justice in the area of social security coordination and their implementation in the member states. Bearing in mind that as of 2009 the plans are to start implementing Regulation (EC) No 883/2004 on the coordination of social security systems and the new implementing Regulation, a lot of emphasis was put on the provisions of these regulations and their implementation in Lithuania. In January 2007, a seminar was organised on the implementation of Regulation (EC) No 883/2004. The twinning project was successfully implemented in May 2007. Dutch experts positively evaluated work of competent institutions and recommended further interagency cooperation and putting more emphasis on cooperation with the competent authorities of the other EU member states.

6.2.2.4. TrESS: Training and Reporting on European Social Security

In 2005, European Commission’s Directorate General for Employment, Social Affairs and Equal Opportunities initiated a three-year project, the purpose of which is to increase the knowledge base on the coordination regulations, build strong networks rooted at national level encompass- ing public administrations and social security administrations, the social partners, NGO’s, judges, lawyers, and independent experts confronted with problems of implementation of the coordination rules in 25 member states. Each year member states, taking part in the project, organise seminars analysing coordination issues in the area of social security at stake. In May 2007, Lithuania hosted the third seminar of trESS. Participants, along with the representatives of the European Commission and the University of Ghent, spoke about sickness and maternity benefits in the new social security coordination regulations and amendments to Regula- tion (EC) No 883/2004. They also discussed the transfer of pension rights of civil servants working in the EU institutions. In addition, experts from the European Commission and the University of Ghent presented the new implementing regulation, currently examined at the Council Social Ques- tions Working Party. All the seminar presentations are available at the following trESS website: (http://www.tress-network.org).

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6.2.2.5. Statistical Data on the Implementation of EU Legislation regulating Coordination of Social Security Schemes

Foreign Benefit Office of the State Social Insurance Fund Board is a competent institution responsible for awarding pensions in line with the provisions of Regulation (EC) No 1408/71 and Regulation (EC) 574/72. During the period from 1 June 2006 until 1 June 2007 the Foreign Benefit Office received 2391 applications for state social insurance pensions in line with the provisions of the aforementioned regulations. The majority of these applications (62 per cent) comprise requests to give old-age pensions. 862 requests to award pensions were sent to the other EU and EEA member states. The majority of them concern old-age pensions. 74 forms E 121 were issued certifying that persons, who reside in another member state and receive pensions only from Lithuania (i.e. those persons do not have the length-of-service of social security in the EU and EEA), remain to be insured by the obligatory health insurance in Lithuania. During the aforementioned period, the Foreign Benefit Office received 4379 applications to issue certificates of form E 101 LT concerning applicable legislation and, as a consequence, 3269 certificates of form E 101 LT were issued. 1867 requests were received or forwarded to the other member states with regard to family, funeral and temporary unemployment.. Persons, receiving unemployment benefits in Lithuania and going to another EU or EEA member state to look for work as well as foreign job-seekers coming to the Republic of Lithuania and receiving employment benefits in the other EU and EEA countries, are issued E 300 series forms. While implementing the EU regulations provisions on unemployment insurance, 294 forms E 301 were issued during the period from 1 June 2006 until 1 June 2007. Once completed it certifies the period of social insurance, which has to be included while awarding unemployment allowances in another member state of the EU or EEA. The majority of forms E 301 were sent to Ireland (201). The smallest number of them were sent to the Czech Republic, Greece, Portugal, Sweden, Belgium, Den- mark, Germany and Poland. The majority of applicants for the E 301 form were Lithuanian citizens, and the minority (11 applicants) were foreigners. Form E 303 consists of several parts: E 303/0, E 303/1, E 303/2, E 303/3, E 303/4, and E 303/5. Lithuanian territorial labour exchange offices issue the following completed forms to the Lithuanian job-seekers: E 303(1), E 303(3), E 303/4 and E 303/5. Completed forms E 303/2 are sent to the competent authorities of a foreign country. From 1 June 2006 until 1 June 2007, persons going to the other EU or EEA member state to look for work were issued 40 completed E 303/2 forms and 46 completed E 303/4 forms. The majority of them went to the United Kingdom and Ireland. Lithuanian territorial labour exchange offices paid unemployment insurance allowances, to- talling LTL 18,571.2, to foreign countries. The allowances were paid to four nationals of foreign countries (Germany, France, Greece and Latvia). Foreign states (Germany, Denmark, Austria and Spain) returned LTL 16,594.7 to the Lithuanian territorial labour exchange offices for the unemployment allowances paid to the four EU nationals.

190 Social Report 2006–2007 INTERNATIONAL COO7PERATION

7.1. TAKING PART IN THE ACTIVITIES OF INTERNATIONAL ORGANIzATIONS

The Ministry of Social Security and Labour is an active member of the following international organisations: International Labour Organisation, Council of Europe, United Nations and the OECD.

7.1.1. Membership in the International Labour organization

Reporting on the application of conventions in Lithuania In 2006, pursuant to Article 22 of the ILO Constitution, the Ministry developed detailed reports on the application of twelve conventions in Lithuania. These include: C88 Convention concerning the the Employment Service, 1948; C111 Convention concerning Discrimination (Employment and Occupation), 1958; C122 Convention concerning Employment Policy, 1964; C156 Convention concerning Workers with Family Responsibilities, 1981; C181 Convention concerning Private Employment Agencies, 1997; C100 Convention concerning Equal Remuneration, 1951; C11 Convention concerning the Right of Association (Agriculture), 1921; C87 Convention concerning Freedom of Association and Protection of the Right to Or- ganise, 1948; C98 Convention concerning the Right to Organise and Collective Bargaining, 1949; C19 Convention concerning Equality of Treatment (Accident Compensation), 1925; C24 Convention concerning Sickness Insurance (Industry), 1927; C144 Convention concerning Tripartite Consultation (International Labour Standards), 1976.

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In 2006, with reference to the request of the International Labour Office and pursuant to Ar- ticle 19 of the ILO Constitution, Lithuania submitted a report on the application of the non-ratified C94 Convention concerning Labour Clauses (Public Contracts) and Recommendation R84. In 2006, Lithuania filled out the questionnaire on the suggested Convention and Recom- mendation concerning the Work in Fishing sector and submitted it to the International Labour Office. Moreover, Lithuania submitted its comments with regard to the summary developed by the International Confederation of Free Trade Unions (ICFTU) concerning the application of the ILO C87 Convention (concerning Freedom of Association and Protection of the Right to Organise) C98 Convention (concerning the Right to Organise and Collective Bargaining) in Lithuania.

International Labour Conference The 95th Session of the International Labour Conference took place on 31 May – 16 June 2006 in Geneva. Lithuania was represented by the governmental delegation appointed by the Prime Min- ister’s Decree, No 101, of 25 May 2006. The delegation was compiled in accordance with the tripartite principle set by the Constitution of the ILO, i.e. it included representatives from the Government, employers and trade unions. The agenda of the 95th session included the following standing items: Reports of the Chairper- son of the Governing Body and of the Director-General, Global report under the Follow-up to the ILO Declaration on Fundamental Principles and Rights at Work, ILO programme and other issues, information and reports on the applications of Conventions and Recommendations. Items placed on the agenda by the Conference or the Governing Body included the following: Occupational Safety and Health (standard setting, second discussion, with a view to the adoption of a Convention supplemented by a Recommendation), the employment relationship (standard setting, single discussion, with a view to the adoption of a Recommendation), the role of the ILO in technical cooperation (general discussion). The Conference adopted Recommendation R198 concerning the employment relationship. It highlights the need to coordinate the national policy in consultation with social partners. Moreover, it provides guidelines with regard to the distinction of employed and self-employed persons; fight against illegal work relations; standards applicable to collective agreements of all types. In addition, the conference adopted C187 Convention and R197 Recommendation concerning the promotional framework for occupational safety and health, the purpose of which is to promote preventive safety at work and development of the health culture. The Committee on the Application of Standards held discussions on the situation in Myan- mar, Belarus and other countries. The Committee stressed that Belarus failed to take appropriate actions to eliminate major discrepancies in the application of conventions on the freedom of associations. Moreover, the Committee examined other 25 individual complaints with regard to the freedom of associations, forced labour, discrimination, child labour, employment policy, labour inspectorate, remuneration, etc.

ILO Maritime Labour Convention In late 2006, the Ministry of Social Security and Labour initiated a survey, Opportunities of Ratifying the Consolidated Maritime Labour Convention of the International Labour Organisation in

192 Social Report 2006–2007 I NTERN A T i o N a l c o o PER A T i o N the Republic of Lithuania. The survey provides an in-depth analysis of compliance of the Lithuanian national legislative provisions with the ILO Maritime Labour Convention. The plans are to discuss the survey findings with the representatives of social partners (seamen and ship-owners) in the second half of 2007. In September 2006, a tripartite seminar was held in Varna (Bulgaria) to discuss the opportunities of ratification and effective implementation of the ILO Maritime Labour Convention. During the seminar, a representative of the Ministry of Social Security and Labour made a presentation about the problems faced by Lithuania while preparing for the ratification and proper implementation of the Convention. Seminar participants exchanged information about the process of ratification in the countries and the ways to speed it up.

7.1.2. MEMBERSHIP IN THE COUNCIL OF eUROPE

7.1.2.1. Activities of the Committee of Experts on Social Security (CS-SS)

On 14-16 March 2007, the 2nd meeting of the Council of Europe Committee of Experts on Social Security (CS-SS) was held in Strasbourg (France). The meeting examined reports and conclusions on the compliance of countries with the ILO conventions and recommendations as well as requirements set by the European Code of Social Se- curity and its protocol. Members of the Committee exchanged the latest information about the legal instruments signed (ratified) or due to be signed (ratified) and presented information about the key reforms undertaken in the area of social security. It was officially noted that on 13-15 September the Council of Europe will conduct training courses on social security in Vilnius. A representative of Lithuania thanked the Secretariat for the decision to conduct training courses in Lithuania and on behalf of the Ministry of Social Security and Labour invited all the Committee members to participate in them. He expressed hope that the courses will be useful for building theoretical and practical knowledge in the area of social security as well as for getting familiar with Lithuania and its culture, as well as help.

7.1.2.2. Implementation of Requirements set by Social Charter

In 2006, Lithuania prepared its first report concerning the non-ratified provisions of the 1996 European Social Charter (revised). In October 2006, Lithuanian specialists met with the members of the European Committee of Social Right. They discussed the legal situation in Lithuania with regard to the non-ratified provisions of the Charter and the opportunities of their ratification. Lithuania ratified the European Social Charter (revised) in 2001. It has committed itself not only to ensure implementation of the ratified Charter provisions in Lithuania, but also to look at the opportunities to ratify the non-ratified provisions every five years following the ratification. Examination of the report on the non-ratified provisions of the 1996 European Social Char- ter (revised) showed that Lithuania could already ratify the following provisions of the revised Charter:

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– paragraph 2 of Article 12, requiring to maintain the social security system at a satisfactory level at least equal to that necessary for the ratification of the European Code of Social Security; – paragraph 12 of Article 19, encouraging to promote and facilitate, as far as practicable, the teaching of the migrant worker’s mother tongue to the children of the migrant worker.

Below are the Charter provisions which, according to the experts, Lithuania could ratify during the medium-term period: – paragraph 4 of Article 13, the right to urgent social and medical assistance; – paragraph 2 of Article 18, to simplify existing formalities and to reduce or abolish chan- cery dues and other charges payable by foreign workers or their employers; – paragraph 3 of Article 18, to liberalise regulations governing the employment of foreign workers; – paragraph 2 of Article 19, the right of migrant workers to departure, journey and reception; – paragraph 6 of Article 19, the right of migrant workers to family unification; – paragraph 8 of Article 19, the right of migrant workers to the guarantee against expel. Examination of the report showed that currently Lithuania could not ratify the following provisions of the revised Charter: – paragraph 4 of Article 19, the right of migrant workers to equal employment, association and accommodation; – Article 23, rights of elderly persons; – Article 30, the right to protection against poverty and social exclusion; – paragraph 3 of Article 31, the right to housing/ to make the price of housing accessible to those without adequate resources.

7.1.2.3. European Committee for Social Cohesion (CDCS)

On 28-29 March 2006, the 16th CDCS meeting took place in Strasbourg (France). The Committee meeting examined various issues at stake: social cohesion, social services, migrants, pensions, children and family policy, international events and support to South-Eastern Europe in the CE context. It also spoke about the operation of the Committee and its future plans. Discussions became vibrant with regard to the 2005 Resolution on Committees and Subordi- nate Bodies, their Terms of Reference and Working Methods because NGOs expressed their willingness to take part in the activities of committees and committee bureaus. Members of the Committee said that NGOs may be invited to meetings only on the observer status and that should not be considered obligatory, i.e. they might be invited occasionally, but not regularly. While examining the draft opinion of the Committee concerning the recommendation of the Committee of Ministers encouraging participation of the minority youth in taking decisions with regard to the issues that concern them, it was decided to adopt the draft opinion, stressing the importance of social cohesion, especially including vulnerable individuals and their groups.

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With regard to the activities related to children and family, government/state institutions received recommendations Positive Education of Children in Modern Europe. Comments were made that the statement concerning involvement of non-governmental organisations should be put into practice and that there should be interconnection between the education of children and society. Besides that, the needs of parents, as well as their rights, should be highlighted because small income is often a cause of violence at home. While looking at the activities proposed for 2007, two possible projects were discussed: Strengthening Social Cohesion to avoid Social Exclusion and promote Diversity (the purpose of which is to address the problems of poverty and exclusion with a special focus on employment opportunities and family issues) and Review of a Family Model for the Best Interest of the Child (its purpose is to promote paternity issues and family policy influenced by demographic, socio-economic and cultural changes with the aim of reconciliation family and working life). Huge debates arose with regard to the possible objectives of the project and target social groups. Unanimous opinion was reached concerning the topic on employment opportunities. The final decision concerning these projects was agreed to be taken during the next meeting in November. Draft agenda was discussed of the Social Cohesion Forum, organised every two years, to be held in November 2006 called Review of Social Policy with regard to Cultural, Ethnic and Reli- gion Diversity. It was suggested that the Forum should pay more attention at the issues of social cohesion and migration. It also examined conclusions of the previous forum Reconciling Labour Flexibility with Social Cohesion. The meeting also provisionally discussed the proposal for the 2008 Forum, Dialogue about the Future Pension Scheme: Challenges, Opportunities and Responsibility of Scheme Participants. The issue of pensions will be examined from the point of view of social cohesion, looking at the impact of the problem upon individuals and pensioners as well as structural changes in society.

On 7-9 November 2006, the 17th CDCS meeting was held in Strasbourg (France). In greater detail it discussed the possible 2007 project Strengthening Cohesion to avoid Exclusion and promote Diversity. Its key idea is to help poverty-struck people in the context of CE Human Rights. In principle, member states approved the idea, yet they highlighted the need to avoid duplication of activities carried out by the European Union and United Nations. It was decided to focus on the working population living in poverty. This issue provoke a lot of discussions, because some doubts were expressed about such a project and many proposals were made that these issues (integrated social services, employment quality, youth unemployment, employment opportunities, informal education, prevention of poverty) should be dealt with by the project. Most frequently two target groups were mentioned: poorly qualified and poverty-struck workers. The conclusion was reached to focus of the latter target group. The meeting approved the Guidelines on Housing Opportunities for Socially Vulnerable Groups. It was noted that the present draft document was much better because it paid a lot of attention at the socially vulnerable. Besides that, the meeting said that funding of the measure should be in line with the EU competition regulations. Yet the majority of member states said that policy measures were missing in the Guidelines. They highlighted some problems relevant for several member states:

Social Report 2006–2007 195 7 C h a p t e r firstly, it is difficult to locate places where such social housing areas could be established, and second, it will be difficult to find employment in such areas. The meeting examined a report on housing policy and socially vulnerable groups prepared by the group specialists. It also adopted the recommendations to state/government bodies on the positive education of children. The discussion arose with regard to only one issue: which important actions should be taken by the states in order to implement such recommendation. It is not considered sufficient that various bodies, including non-governmental organisations, communities, as well as children and their parents are familiar with the recommendations and provide comments to them, they have to be proactive while implementing them. The meeting also discussed the results of the conference of European Ministers responsible for family affairs Changes in Parenting: Children Today, Parents Tomorrow. The conference took place in May 2006, Lisbon. The member states were satisfied about the discussions during the conference. Next conference will be organised in 2009. The committee of experts had developed a proposal concerning the Convention on the protection of children against sexual exploitation and abuse. The participants discussed the need for the convention and only several countries said that it was necessary. The meeting examined the proposal concerning the terms of reference of the committee. The powers and composition of the committee remains the same, yet new wording and references to relevant documents is suggested. The majority of debates arose about more active implementation of the committee decisions, more widespread dissemination of the Council of Europe policy and provisions in the member states. It is particularly relevant, while comparing the instruments adopted by the EU (which become binding) with the documents adopted by the Council of Europe (which are more recommendatory). The committee meeting was followed by Forum 2006 (under the new name): Achieving Social Cohesion in a Multi-cultural Europe. The plenary sitting and working group meetings held debates about the following issues: globalisation and migration, a double challenge for the European social system; social policy for new migrants; conflict and difference management through negotiations; integration via democracy, representation of migrants, commitments and impact on society.

7.1.2.4. Preparations to ratify the European Code of Social Security

Although the plans to ratify the 1964 European Code of Social Security are for 2008, preparations were already underway in 2006. Lithuania signed the Code on 15 November 2005. The 1964 European Code of Social Security, its protocol and the 1990 European Code of Social Secu- rity are the key instruments providing for the social security standards of the Council of Europe. The 1996 European Social Charter (revised) refers to the ratification of the code as an indicator of proper social security established in the state. The Code is also considered an important instrument not only by the Council of Europe, but also by the European Union, because the EU does not have a similar binding document providing for the standards of minimum social security. The majority of member states of the EU, that are also members of the Council of Europe, have signed and ratified the Code.

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In 2006, Lithuania addressed the Council of Europe asking it to organise two Code-related events in Lithuania in 2007, training courses and a seminar. The Council of Europe approved of the initiative and preparations are underway of organising these training events. It was provisionally agreed that the course and the seminar will be conducted one after another in September 2007, in Vilnius. The training courses will invite specialists from all the member states of the Council of Europe and the best experts on the European social security standards. The purpose of the course is to examine the European standards of social security and make participants familiar with the Lithuanian social security, its culture and history. The target audience of the seminar, however, will be only Lithuanian specialists as it will examine whether the Lithuanian social security meets the requirements set by the Code. It will look at the opportunities to ratify certain parts of the Eu- ropean Code of Social Security. The plan is to set up a working group in 2007 which will develop a report in line with the requirements of the Code and submit it to the Secretary General of the Council of Europe. The report will state whether the Lithuanian social security system is in line with the requirements of the European Code of Social Security and if Lithuania is ready to ratify certain parts of the Code.

7.1.2.5. United Nations Economic and Social Council (ECOSOC)

As mentioned in the previous report, Lithuania was elected Vice-President of the Economic and Social Council (ECOSOC) for the year 2006. The Republic of Lithuania is a member of ECOSOC from 1 January 2005 until 31 December 2007. ECOSOC is one of the six main UN bodies responsible for promoting higher standards of living, full employment, economic and social progress. ECOSOC approves activity reports of 11 UN funds and programmes and adopts (submits) policy recommendations to the UN system and member states with regard to the aforementioned issues. In addition, ECOSOC initiates and conducts surveys, drafts reports and submits recommendations to the UN General Assembly on economic, social, cultural, education and science, health care, human rights and other related issues, coordinates the activities of 14 specialised agencies, 10 functional commissions and 5 regional commissions, provides information and assistance to the UN Security Council. Pursuant to the 2005 – 2007 Activity Programme and its Implementation Plan on the Par- ticipation of the Republic of Lithuania in the Activities of the United Nations Economic and Social Council, approved by the Government of the Republic of Lithuania, representatives of the Ministry of Social Security and Labour participated in the following events organised by the UN and other international organisations in 2006: – in July 2006, ECOSOC High-Level Segment Creating an environment at the national and international levels conducive to generating full and productive employment and decent work for all, and its impact on sustainable development. – in September 2006, the United Nations High-Level Dialogue on International Migration and Development, which discussed the issues of international migration and decided to develop a global forum on international migration and development. –

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7.2. INTERNATIONAL AGREEMENTS

7.2.1. BILATERAL AGREEMENTS ON SOCIAL SECURITY

Lithuania agreed to the proposal of the Kingdom of the Netherlands on the application of Articles 5 and 6 of the agreement between the Republic of Lithuania and the Kingdom of the Netherlands concerning the payment of social security benefits signed on 12 December 2006. On 18 September 2006, the Kingdom of the Netherlands submitted a Note to the Administrative Commis- sion on Social Security for Migrant Workers of the European Communities concerning the inclusion of Articles 5 and 6 of the agreement between the Republic of Lithuania and the Kingdom of the Netherlands concerning the payment of social security benefits abroad into Annex V of Council Regulation (EC) No 574/72. This proposal of the Netherlands will be examined in the meeting of the Administrative Commission on Social Security for Migrant Workers of the European Communities, along with the proposals of the other member states concerning the amendment of Council Regula- tion (EC) No 574/72. In 2006–2007, an agreement between the Government of the Republic of Lithuania and the Government of the Republic of Estonia on account periods of insurance completed on the territoty of the former USSR was reviewed. In March 2007, the parties to the agreement finalised the coordination procedure of international treaties provided for in their respective national law. The plan is to sign the agreement between the Lithuanian and Estonian Governments during the second half of 2007. Lithuania developed a similar draft agreement to be signed with the Government of the Re- public of Latvia. Pursuant to the procedure established by the law of the Republic of Lithuania, the draft was approved by the Lithuanian competent authorities and in May 2006 it was submitted to Latvia via diplomatic channels. In January 2007, the Latvian Ministry of Welfare sent its comments to the draft agreement which were further examined by the Lithuanian interested bodies. It is expected that the parties will agree on their positions in the nearest future and that the Agreement will be signed in the second half of 2007. On 1 November 2006, an Agreement on Social Security between the Republic of Lithuania and Canada, signed on 5 November 2005, came into effect. The purpose of the Agreement is to develop cooperation between Lithuania and Canada in the area of pensions. On 6-9 February 2007, the second round of negotiations concerning the Agreement between the Republic of Lithuania and Russian Federation in the area of pensions took place in Moscow. During the meeting the parties reviewed and agreed on the majority of articles of the draft Agree- ment. Several articles of the agreement caused debate. They include provisions concerning pensions payable to the servicemen of the armed forces of the former USSR and their family members, permanently residing in the Republic of Lithuania, on which the parties agreed to exchange information in writing. During negotiations Lithuania suggested to get prepared for the next round of negotiations in Vilnius to be organised in September 2007. Pursuant to the Protocol of bilateral meeting between the experts of the Republic of Lithua- nia and Israel, organised in the Ministry of Social Security and Labour on 12 May 2006, the parties exchanged migration statistics.. Having examined the migration statistics and the possible expenses

198 Social Report 2006–2007 I NTERN A T i o N a l c o o PER A T i o N incurred by the State Social Insurance Fund of the Republic of Lithuania, our state will aspire to have the agreement based on the integration (territorial) principle, i.e. entitlement to a pension shall be based on total length-of-service calculated in both countries and the pension shall be awarded in the country where the person in question is permanently residing and in line with its legislation.

7.2.2. BILATERAL AGREEMENTS ON EMPLOYMENT

With regard to employment, currently there are three bilateral agreements signed with Ger- many, Ukraine and Russia (see Social Report of 2004). In 2006, 25 Lithuanian citizens were interns in Germany, although the quota established in the Agreement is 200 persons per year. The main reason for having so few interns is that the applicants do not meet qualification requirements, their knowledge of German is insufficient and lengthy search for employment in Germany. Another reason is that since 1 May 2007, 22 EEA countries out of 30 (including 12 new member states) have opened up their labour markets therefore Germany, which still applies some restrictions, becomes less attractive. In 2006, there were no Lithuanian nationals to address the Lithuanian Labour Exchange for work in Ukraine because the payment level remains to be rather low in that country. Following the needs of the Lithuanian labour market, 959 work permits were issued to Ukrainian nationals to work in Lithuania (the majority of them were granted to international route drivers, ship body assemblers and ship body welders, brick-layers and cladders). These constitute 32 per cent of all the work permits issued to foreigners in 2006. Noteworthy, the majority of work permits (524) were given to posted workers and they make up 73 per cent of all the work permits granted to posted foreigners in 2006. Often Ukrainian citizens work in Lithuania pursuant the contracts signed between Lithuanian and Ukrainian companies, rather than directly under an employment contract with the Lithuanian enterprise. It should be highlighted that the number of work permits issued to the Ukrainian citizens has grown twice in the recent years, i.e. in 2003, 158 work permits were issued, whereas in 2004 and 2005, 279 and 486 work permits were granted respectively. In 2006, Russian nationals were issued 57 work permits in Lithuania. The majority of them worked as engineers. No Lithuanian citizens asked the Lithuanian Labour Exchange to grant a work permit to work in Russia. In 2006, the Agreement on the Exchange of Youth between the Government of Republic of Lithuania and Canada was finalised. On 8 January 2007, the Resolution of the Government of Re- public of Lithuania was adopted, addressing the President of the Republic of Lithuania with the request to give mandate to the Minister of Social Security and Labour, Blinkevičiūtė, to sign the agreement. The President signed the Decree and on 16 January 2007, Minister Blinkevičiūtė was granted mandate to sign the document. The Agreement will be signed as soon as all the necessary

8 January 2007 Resolution No. 16 of the Government of the Republic of Lithuania Concerning Request addressed to the President of the Republic to issue Mandate to Ms. Blinkevičiūtė (Official Gazette, 2007, No. 4-168) 12 January 2007 Decree No. 1K-861 of the President of the Republic of Lithuania, Concerning the Issue of Mandate to Ms. Blinkevičiūtė (Official Gazette, 2007, No. 6-262)

Social Report 2006–2007 199 7 C h a p t e r procedures are finalised in Canada. The delay occurred because the procedure of signing international agreements changed in Canada. In 2007, the Association of Log House Producers addressed the Lithuanian competent authorities to deal with the matter of their concern. Bearing in mind, that Germany has signed bilateral agreement concerning temporary employment of workers with 9 new member states out 12 as well as the other EU member states; also taking into consideration that the Republic of Lithuania has no agreement with Germany and thus it cannot guarantee the same competitive conditions for log house builders like those enjoyed by the other EU nationals; also noting that in January 2006, Germa- ny reached agreement with Estonia concerning the matter and that such advanced agreement could also be signed with Lithuania and contribute to the cooperation between Germany and Lithuania in the area of posted work, it was decided to address the German competent authorities asking it to sign an agreement facilitating conclusion of temporary employment contracts for workers.

7.2.3. OTHER BILATERAL AGREEMENTS

On 1 June 2007, Prime Minister of the Republic of Lithuania Gediminas Kirkilas and Prime Minister of the Republic of Poland Jarosław Kaczyński signed an Agreement between the Govern- ment of the Republic of Lithuania and the Government of the Republic of Poland on the Lithuanian- Polish Youth Exchange Fund (hereinafter referred to as the Fund). The purpose of the Fund is to support cooperation between Lithuanian and Polish youth with a view to developing friendly relations between Lithuania and Poland. The Fund plans to support youth exchange between the two countries, projects that are developed and implemented by the organisations encouraging youth exchange and other initiatives, youth events, information-sharing projects, printing of publications fostering closer relations between the two nations. Administrative and organisational tasks of the Fund will be carried by the Department of Youth Affairs under the Ministry of Social Security in Lithuania and by the Foundation for the De- velopment of the Education System in Poland. The Fund will become operational as of 2007.

7.3. INTERNATIONAL AGREEMENTS AND PROJECTS

In 2006, the Ministry of Social Security and Labour received a proposal of the Ministry of Finance of the Federal Republic of Germany concerning the agreement to improve cooperation while fighting abuse of social insurance benefits, undocumented work and transnational illegal employment. The draft agreement was examined with the other competent bodies of Lithuania. Such an agreement would be useful in fighting transnational undocumented work and illegal employment. In

200 Social Report 2006–2007 I NTERN A T i o N a l c o o PER A T i o N addition, better opportunities would be created to collect and gather social insurance contributions. Besides that, social security rights of migrant workers would be better protected. In March 2007, the Ministry of Social Security and Labour submitted its comments and proposals concerning the draft agreement to the Ministry of Finance of the Federal Republic of Germany. In May 2007, the Ministry of Social Security and Labour developed and submitted to the Ministry of Labour and Social Security of the Republic of Belarus draft amendments to the Agree- ment signed on 17 March 2000 between the Ministry of Social Security and Labour of the Republic of Lithuania and the Ministry of Labour and Social Security of the Republic of Belarus concerning the procedure of awarding, transfer and payment of pensions and benefits in line with the 4 February 1999 of the Republic of Lithuania and the Republic of Belarus on social security (hereinafter referred to as the draft amendment to the Agreement). The draft amendment to the Agreement was developed taking into account the fact that when in 2007 the Foreign Benefit Office of the State Social Insurance Fund Board became responsible for awarding pensions and their payment using the new information system, the format of pension payment timesheets changed. The Ministry of Social Security and Labour cooperates with the competent bodies of other countries, keeping friendly relations and exchanging relevant information with them. Cooperation with the Ministry of Children and Family Affairs of the Kingdom of Norway in the child and youth policy fields started back in 2005 is further pursued. The plan is to continue cooperation between Lithuanian and Norwegian municipalities (Kvam and Marijampolė, Mandal and Alytus, Oppegård and Širvintai, Oslo and Vilnius). In 2006 and 2007, meetings were held in Lithua- nia and Norway between the representatives of these municipalities and the ministries. Specific actions have been developed to carry out bilateral Lithuanian-Ukrainian cooperation pursuant to the EU and Ukraine Action Plan. The Ministry of Social Security and Labour of the Re- public of Lithuania is to help the Ministry of Labour and Social Policy of Ukraine providing advice, organising seminars and visits of the Tripartite Council Secretariat advising on the reconciliation of the social dialogue position, implementation mechanism of the position, upgrading qualifications of the labour force, improvement of social insurance system, accumulative pension funds, introducing the model of social dialogue operating on all levels in Lithuania. More and more foreign countries implementing reforms are interested in cooperation with Lithuania and learning from its useful experience. The Ministry of Social Security and Labour is developing and coordinating its memorandums of understanding with the Ministry of Labour and Social Security of the Republic of Kazakhstan with regard to the social integration of the disabled, and the Ministry of Labour and Social Development of the Kyrgyz Republic with regard to social and employment issues.

Social Report 2006–2007 201 ANNEXE8 S ANNEX 8-1 Structure of the Ministry of Social Security and Labour

202 Social Report 2006–2007 A n n e x e s

ANNEX 8-2

Methodology Centres for Social Workers and Qualification Development Programmes Delivered in these Centres

Name of a social assistance No. Name of a programme institution Social work in decentralized care institutions 1. Aknystos Boarding House Pre-work rehabilitation for mentally and intellectually challenged living in institutional foster care institutions Public Undertaking Alytus 2. Social work with elderly people Rehabilitation and Sports Centre Qualification development programme for social workers working with disabled children 3. Alytus Vocational Training Centre Qualification development programme for social work with elderly people Qualification development programme for community social workers Dissemination of Antazavė Child Foster Home good 4. Antazavė Child Foster Home practice in the area of education of children deprived of parental care Public Undertaking Community Resolution of child-related issues on the level of local 5. Change Centre community Public Undertaking Youth Prevention, intervention, and post-care of crises and 6. Psychological Aid Centre suicides in a community Kaunas County Crises Centre for 7. Work with victims of family abuse and abusers Women Kaunas Archbishopric Family 8. Social work with dependent people and their families Centre

Impact of artistic activity on quality of life of people with physical disability. Role and abilities of social workers Kaunas Centre for Activity of 9. Disabled Youth Impact of artistic activity on quality of life of disabled. Role and abilities of social workers Social work with mentally disabled people Social work providing long-term social foster care, nursing, and socio-culture services for adults with physical disability 10. Klaipėda City Foster Care Social work providing long-term social foster care, nursing and socio-cultural services to elderly and adults with disability Improvement of cooperation between social workers and Klaipėda Child Foster Home 11. housemothers working in the foster home and children “Smiltelė” living in the foster home Public Undertaking Klaipėdos Centre for Social and Psychological The role of a social worker while working with people 12. Aid who suffered from violence

Social Report 2006–2007 203 8 C h a p t e r

Name of a social assistance No. Name of a programme institution Child Day Care Centre “Give Social work with risk group children and their families in Me a Hand” of the Lithuanian 13. order to create auspicious conditions for their successful Organization for Protection of integration into society Children Rights “Save the Children Social work providing day social foster care and socio- Day Activity Centre for Disabled 14. culture services for adults with intellectual and mental “Klaipėdos lakštutė” disability Social services to risk group children in a local Public Undertaking Social Centre of community 15. the Blessed Jurgis Matulaitis Work with families at social risk in a local community

Untraditional training in independent life skills for young people with significant and moderate intellectual disorder

Alternative communication – social marginalization 16. Panevėžys Youth Day Centre reduction measure for people with moderate and significant intellectual disability Impact of drama on emotional stability of people with intellectual disability Plungė Child Foster Agency Social work with risk group children and social work with 17. “CYRULIS” families at risk Quality of social work – on the basis of wholesome life of 18. Prienai Home for Elderly seniors and elderly Public Undertaking Rokiškis Social services for mentally disabled who commented a 19. Psychiatric Hospital crime Managing aggression of people with mental disability Social competency training and retention for people with mental disability Planning activity for people with mental disability and organizing such activity in social service institutions Introduction of methodology for conducting activity Šiauliai City Municipality Day sessions “Music of Colours” 20. Activity Centre “Goda” An ability of a mentally disabled person to create and functioning of such art objects in the context of contemporary art Application of psycho-social intervention in social work with mentally disabled people The role of activity therapy in the processes of convalescence of people with mental disorders Šiauliai City Municipality Centre Social work with adults with physical disability and 21. for Social Services elderly people

Model for assessment of violence level and help to people who experienced violence: role of social workers Public Undertaking Institute of 22. Family Relations Conceptual relation between social worker’s intervention into family at risk and results

204 Social Report 2006–2007 A n n e x e s

Name of a social assistance No. Name of a programme institution Švenčionys Regional Municipality Social rehabilitation and integration into society of people 23. Centre for Social Services returning from imprisonment institutions Assuring quality of life for disabled children and youth by providing social services Utena Child Social Support and 24. Social work with customers who experienced violence: Education Centre prevention, intervention, and after-care Social work with risk group children and families striving to reduce social marginalization Social work with foster parents and stepparents in Children Wellbeing Centre “Pastogė” 25. “Pastogė” Methods for social work with a child at risk and his/her family in “Pastogė” Assessing and strengthening self-sufficient life skills for people with mental disability Vilijampolė Boarding House for Application of self-sufficient life skills training methods 26. Children and Youth for work with people with mental disability Social work by organizing employment for people with mental disability Public Undertaking “Vilties Provision of non-institutional social service for people 27. akimirka” with development disorders Introduction to psychosocial rehabilitation. Basic concepts and methods Pre-employment rehabilitation for people suffering from mental diseases Public Undertaking Vilnius 28. Psychosocial Rehabilitation Centre Vocational rehabilitation for people suffering from mental diseases Structured day activity programme for people with mental disability

Centre for Gerontology and Social work with people suffering from dementia and rehabilitation of the Vilnius Alzheimer disease 29. University Experimental and Training programme for social workers working with Clinical Medicine Institute seniors Education programme for children and youth at social 30. Vilnius Archbishopric Caritas risk Vilnius City Home for Mother and Social work aspects while providing support for people 31. Child who experienced violence and families at social risk Vilnius City Municipality Social Community based social work with dependent people and 32. Assistance Centre Service “Parama” their family members Training programme for social work in an institution for 33. Zarasai Boarding House foster care of seniors

Data of the Ministry of Social Security and Labour

Social Report 2006–2007 205 8 C h a p t e r

ANNEX 8-3

Restrictions on the Movement of Lithuanian Workers since the EU Accession

State Until 30 April 2006 From 1 May 2006 Ireland Open labour market Open labour market Greece Restricts access to the labour market Open labour market Due to the decision taken by the neighbouring countries and because ¼ Iceland** migrant workers are from the new member Open labour market states, restrictions imposed on the entry to the labour market Spain Restricts access to the labour market Open labour market Annual quotas are approved by the Prime In the end of July 2006, the labour Italy Minister’s Decree. Employers take care of market was declared open simplified work permits Open labour market, but national of United Open labour market, but national of new new member states are required to Kingdom member states are required to register register within 30 days following their (Great Britain) within 30 days following their employment employment

Workers are allowed access only to those sectors which have a lack of workers as From 1 May 2007, the labour market is estimated by the Labour and Income Netherlands open Centre. The waiting period f 5 weeks is not applied in those sectors and the work permit is issued in 2 weeks. Portugal Restricts entry into the labour market Open labour market Finland Restricts entry into the labour market Open labour market Sweden Open labour market Open labour market Restricts entry into the labour market but for “critical” professions (when there Belgium Restricts entry into the labour market is a lack of workers) work permits are issued in up to 5 working days * The plans are to gradually make conditions for getting employment Denmark allows Lithuanian nationals to easier, i.e. the companies that have look for a job while staying in the country entered into collective agreements will for up to 6 months and once employment be allowed to have advance employment is found, a simplified work permit permissions (employees will no longer Denmark should be obtained to work fulltime, in need a work permit); moreover, the a registered company, under the same plans are to gradually abolish the working conditions and remuneration requirement to have a work permit to as the other workers, without violating a work in certain sectors where there is a collective agreements huge lack of workers *

206 Social Report 2006–2007 A n n e x e s

State Until 30 April 2006 From 1 May 2006 EU nationals are issued simplified work Norway** permits if the work complies with the The plan is to apply the same restrictions standard working conditions and is adequately remunerated The plans are to gradually eliminate restrictions, taking into account the shortage of workers in certain sectors. France Restricts entry into the labour market Permissions to work in the construction, hotel and catering, agricultural, trade, processing industry and cleaning sectors are granted automatically * Will restrict entry into the labour market but will apply simplified procedures Luxembourg Restricts entry into the labour market of getting a work permit in the area of agriculture. After one year, this practice will be reviewed* Restrictions of entry into the labour Austria Restricts entry into the labour market market will be maintained* Restrictions of entry into the labour Germany Restricts entry into the labour market market will be maintained* Restricts entry into the labour market. The plans are to have restrictions reviewed by Switzerland*** 31 May 2007when Switzerland will decide whether or not they should be applied until 31 May 2009.

Data of the Ministry of Social Security and Labour Fig. 6.2.1.1-1

* until 30 April 2009 ** a country of the EEA (European Economic Area) which has no voting right in the EU institutions but which applies the EU rules. *** Pursuant to the Agreement on the Free Movement of Persons, signed between the European Commu- nity and Switzerland, and the supplementing Protocol on the New Member States joining the EU.

Social Report 2006–2007 207 MINISTRY OF SOCIAL SECURITY AND LABOUR social REPORT 2006–2007

ISSN 1822-3710