The Lithuanian government on Friday approved in principle a draft social model, which is meant to liberalize labour relations and reorganize the system of social insurance.
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The prime minister claims that such projects, which will improve work conditions for working people, cannot be delayed.

“We’ve stated clearly – it’s necessary to make the decisions quickly,” Algirdas Butkevičius told reporters after the Cabinet’s meeting.

“We have no intentions to worsen the conditions – of dismissal, recruitment, working hours – for workers. I’d like to say that there’s never been such liberalism in labour relations as we have now when 93 percent of people whose labour relations were terminated last year were paid nothing and those 7 percent who got severance packages were mostly people dismissed from state-owned enterprises,” he said.

The amendments proposed by the government include indexing of pensions, shortening – to 1 month – of a period of notice for dismissal, leaving in place a longer period for workers of pre-retirement age, disabled workers and workers with children. The amount of severance pay would be reduced to two months’ salary.

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