Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

Employment Policy Convention, 1964 (No. 122) - Estonia (Ratification: 2003)

1. Articles 1 and 2 of the Convention. Active employment policies and employment trends. The Committee notes the information provided in the Government’s report received in September 2009 in reply to its 2008 direct request. The Government reports that two out of the nine objectives outlined in the Estonian Action Plan for Growth and Jobs 2008–11 are directly targeted to employment and labour market policies. The Government intends to modernize the labour law in order to promote flexicurity in the labour market and to develop the education system so it better fulfils the needs of business. The Government also intends to develop a business environment favourable to enterprise and entrepreneurship. According to the Estonian Statistical Office, GDP fell by 15.6 per cent over the first three-quarters of 2009 in comparison with the same period in 2008, which affected all areas of the economy. In the first quarter of 2009, unemployment reached 11.4 per cent and continued to rise in the second and third quarters (13.5 per cent and 14.6 per cent, respectively). The Committee invites the Government to provide further information on the impact of the measures taken in the framework of the Action Plan for Growth and Jobs and their subsequent effect on productive employment generation.

2. The Committee notes that, since July 2009, the Law of 17 December 2008 on Employment Contracts effectively aims to introduce more flexibility in the labour market and to increase social security benefits for workers. The law includes provisions to reduce the term for advance notice of dismissals and modifies the payment of redundancy benefits by sharing the costs between the employer and the Estonian Unemployment Insurance Fund. The law also introduced measures concerning lifelong learning, such as annual study leave and taxation of expenses on employee education. Other measures included administrative procedures, working time regulations and reform of labour market institutions. The Committee invites the Government to report on the measures taken to generate sustainable employment and to improve employment security for workers who have benefited from the provisions of the new legislation.

3. Women’s employment. The Government indicates that within the programme “Promoting Gender Equality 2008–10” efforts are being made to increase awareness for both employers and workers about gender equality. The Committee notes with interest that in recent years there has been no significant difference between unemployment rates for men and women. In 2008 the unemployment rate for men stood at 5.8 per cent and for women at 5.3 per cent. The difference in employment rates is slightly higher. The employment rate for women in 2008 was 66.3 per cent and for men 73 per cent. The Action Plan for Growth and Jobs 2008–11 identifies different challenges with respect for increasing the employment rate among women, amongst them are limited flexible employment opportunities and insufficient childcare options. The Government intends to increase the capacity of childcare services in order to make it easier for women to return to the labour market for either part-time or full-time employment. The Committee invites the Government to continue to provide such information on initiatives taken to promote increased participation of women in the labour market.

4. Vulnerable categories of workers. The Government indicates that in 2008 the total number of registered unemployed people was higher than in 2007 and that the risk groups remained unchanged. Long-term unemployed individuals continued to receive training, coaching and other services to increase their competitiveness. The Committee notes that after the 2008 economic downturn, despite their eligibility to receive subsidies, employers were less willing to hire those who had been unemployed long-term as employers considered such candidates to be less competitive. The Committee notes that the information regarding the effectiveness of the measures offered to unemployed people based on re-entrance to the labour market is currently not available. The Committee recalls the importance of being able to measure the effectiveness and impact of the measures taken to be able to assess and determine if they should be revisited, revised and reoriented, with a view to achieving the objectives of the Convention (see General Survey of 2010 on employment instruments, paragraph 34). The Government also informs that the difference between employment rate and unemployment rate among Estonians and migrants has further diminished. When comparing the unemployment rates in 2008, the gap decreased to 4 per cent (being 4.2 per cent for Estonians and 8.2 percent for non-Estonians). The employment rate for Estonians was 69.6 per cent and for non-Estonians 69.2 per cent, thus a total gap of only 0.4 per cent. The Government foresees that in the coming years more language courses, specific training courses and labour-exchange programmes will be programmed. The Committee invites the Government to continue to provide information on the measures taken to promote employment among the categories of workers affected by the crisis, long-term unemployed and migrant workers.

5. Sustainable regional development. In reply to previous requests, the Government reports that the GDP per capita in Ida-Viru has increased more rapidly than in other regions, although employment rates in the country continue to be lower than the average for the rest of Estonia. The Committee notes the initiatives carried out by the local Government and the collaborative programmes that the Chamber of Commerce in the Ida-Viru region have implemented with other institutions. The Committee invites the Government to continue to provide information on encouraging sustainable regional development and to improve employment rates and unemployment rates in underprivileged regions.

6. Training policies. The Government reports that the adult participation rate in lifelong learning was 7 per cent in the first half of 2008. The Ministry of Education and Research has started financing training courses for adults to increase their competitiveness through the European Social Fund. The Estonian Unemployment Insurance Fund continues to offer training courses for the unemployed, ensuring that the courses respond to labour market needs. The Committee notes that according to the Action Plan for Growth and Jobs 2008–11, the Government’s priorities for the coming years are to raise people’s qualifications and their sense of security by making the education system more effective. This objective will be pursued by intensifying lifelong learning, taking steps to prevent withdrawal from school, promoting the science and technology fields to help ensure competitiveness and helping at-risk groups to enter the labour market. The Committee invites the Government to include information in its next report on the impact of measures taken and in coordination with an active employment policy to encourage lifelong learning.

7. Article 3. Participation of the social partners. The Committee notes that the labour market institutions went through a major reform since May 2009 to increase the quality of labour market measures and that, currently, both active and passive labour market measures are coordinated within one institution, namely the Estonian Unemployment Insurance Fund. The Committee also notes that representatives of the social partners are present on the board of the Estonian Unemployment Insurance Fund and that, currently, employers and workers have a greater role and responsibility in forming and facilitating orientations and priorities for active employment policy. The Committee invites the Government to continue to provide information on the manner in which consultations covered by the Convention are ensured, including any examples of the questions addressed or the decisions reached on employment policy through the Estonian Unemployment Insurance Fund and other tripartite bodies that may exist in the country.