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Ceturtdiena 09.04.2020 | Name days: Valērija, Žubīte
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State Employment Agency receives collective lay-off applications for 1 660 workers

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state of emergency, lay off, unemployed benefit, unemployed, Covid-19, economy, coronavirus, wash hands, NVA, stay home, state supportBecause of the spread of Covid-19 in the country, ten companies in Latvia have submitted collective lay-off notifications to the State Employment Agency (NVA), informing the agency of planned lay-off of 1 660 workers, according to the public relations office.

Lay-off notifications have been received from transport and storage, accommodation and catering service, as well as wholesale and retail trade industries.

Companies working in water supply, sewer processing, waste processing and processing industry have also reported plans for lay-offs.

Data compiled by NVA for Monday, 23 March, show there are 59 104 unemployed persons in the country. 1 047 of them were registered last week.

NVA reports show that since 18 March the number of submitted collective lay-offs has nearly quadrupled.

On 18 March NVA received notifications from five companies regarding plans to lay off 429 to 454 workers. On 20 March the agency reported receiving collective lay-offs for 699 to 724 workers from eight companies.

Finance Minister Jānis Reirs had previously reported state support for overcoming Covid-19 consequences for businesses has reaching more than EUR 2 billion.

The government’s supported proposal for paying idleness benefits to employees of companies impacted by the crisis will cost the state EUR 60 million to EUR 200 million if the decision is made to expand the list of industries eligible to receive support.

Latvian Free Trade Unions Association (LBAS) has urged the government to increase the period of time for payment of unemployed benefits to 12 months and increased the paid amount.

LBAS believes these are minimal requirements put on the table on behalf of employed people, because in 2019 amendments to the law that had cut the period of time for payment of benefits, as well as the size of the benefit, were expected to help save EUR 12.1 million. According to the organization, this amount is not significant when compared to the government’s preparedness to allocate EUR 2 billion to stabilize the situation.

As it is known, Latvia’s Saeima has decided that industries that have suffered the most from Covid-19 are eligible for state support and assistance with payment of wages for employees upwards of 75% but no higher than EUR 700.


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