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According to the memorandum, employers will pledge not to reduce employee wages if Seimas approves the president’s proposals to reduce the personal income tax (PIT) by 5 points and increase the amount of non-taxable income (NPD) in 50 euros.
Inga Ruginienė, president of the Lithuanian Trade Union Confederation, says the memo is only intended not to cut wages due to GPM, but employers can find other ways to cut wages.
“We are certainly not participating, the confederation will not sign this memo. (…) Employers pledge in the memo not to reduce wages due to GPM, but reduce it in other ways, eliminate bonuses, reduce hours of work and they reduce the salary accordingly, so if they want to reduce, they will always find ways, “I. Ruginienė told BNS on Sunday.
According to her, the confederation would agree to sign a collective or national agreement that describes specific commitments.
“In the past, we have had a lot of experience signing several such declaration documents and they gave nothing, no added value to employees.” The Confederation is inclined to sign an agreement that will have a legal basis and reflect real commitments on how to improve the jobs and working conditions of employees, “said I. Ruginienė.
The memorandum will be signed by the Lithuanian unions Solidarumas and Sandrauga.
Kristina Krupavičienė, the president of Solidarity, says that the signing of the memorandum is a declaration of political honor.
“If an employer agrees, it is a matter of his honor, he will or will not.” There are different employers, but I think it all starts with formulating the policy, saying that we will honestly follow the law, we will abide by it. It all starts with political statements. Another thing is how those political declarations are implemented. In another case, unions may say that employers do not sign the agreement or reduce their wages, ”K. Krupavičienė told BNS.
The memorandum will also be signed on Monday by the Infobalt associations, the Investors Forum, the Lithuanian Employers’ Confederation, the Confederation of Industrialists and the Lithuanian Chamber of Commerce, Industry and Crafts Association.
The President proposes to Seimas to temporarily reduce the personal income tax rate from 20 to 15 percent by the end of the year, applying it to the income of employees of up to three average wages, as well as to advance the increase in income free of taxes at 50 euros.
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