The Latvian Chamber of Commerce and Industry (LTRK), the Foreign Investors’ Council in Latvia (FICIL) and the Employers’ Confederation of Latvia (LDDK) strongly oppose the Cabinet of Ministers’ proposal to introduce a 2% quota for the employment of third-country nationals in Latvia. The organisations call for the proposal to be halted, arguing that the quota is disconnected from actual labour market needs and could harm Latvia’s competitiveness and investment climate.
“Businesses need clear and predictable rules. Setting a 2% quota without grounding it in the real labour market situation and the needs of specific sectors will not solve the problem. If the government wants to change how foreign workers are recruited, the decision must be based on data and properly discussed, rather than imposed as a restriction in haste. Otherwise, we will create additional obstacles for businesses and weaken Latvia’s competitiveness,” said Katrīna Zariņa, Chair of the LTRK Board.
“At a time when businesses face labour shortages, Latvia must not close off its own opportunities to attract the people it needs. Rushing to introduce quotas without a proper impact assessment would create greater uncertainty for businesses and signal to foreign investors that labour availability and business conditions in Latvia can change without sufficient predictability,” said FICIL Executive Director Tatjana Guzņajeva.
The proposed model links the availability of foreign workers to the number of Latvian citizens, rather than to actual labour demand and supply in specific sectors and occupations. Nor has there been a proper assessment of which occupations might require exemptions where the domestic workforce cannot meet demand.
“Every new restriction should answer one question: which of the shortcomings identified by the State Audit Office does it address? The Ministry of the Interior’s draft quota rules do not answer it. In its own explanatory note, the ministry acknowledges that alternatives have not been assessed, the impact on the economy has not been evaluated and the public has not been consulted. This is not urgency; it is unfinished homework. Decisions affecting the workforce across the entire economy cannot be made without calculating their economic impact. We therefore call for the proposal to be halted,” said LDDK Director General Kaspars Gorkšs.
Latvia is already experiencing a decline in labour availability, and demographic trends will intensify the problem. In these circumstances, recruiting workers from abroad is one way for businesses to secure the people they need and remain competitive.
The organisations are also concerned about the speed at which the draft rules are being advanced. Only three working days have been allowed for comments, and the proposal is being handled under an expedited procedure. They stress that major changes to recruitment rules must be predictable and give businesses time to adjust their staffing and operational plans.
The organisations also point to Latvia’s international reputation and its attractiveness to investors. In designing a quota system, Latvia should consider the experience of other European Union countries and ensure that the rules are proportionate and predictable, without sending foreign investors an adverse signal about labour availability or the stability of the business environment.
FICIL, LDDK and LTRK call on the government to halt the proposal in its current form and develop a mechanism for recruiting foreign workers that is based on data and labour market needs.
Source: ltrk.lv
