Labor Inspectorate recommends 1,500 transport companies increase wages

Commercial trucks awaiting loading onto a Tallink ferry. (Martin Dremljuga/ERR)
9/21/2016 11:52 AM
Category: Business

1,500 transportation firms received a letter from the Labor Inspectorate last week in which the inspectorate called upon them to increase employees' monthly wages.

Estonian business daily Äripäev reported (link in Estonian) that the Labor Inspectorate sent memos to all shipping companies for which there was reason to expect that they are paying lower wages than provided for in collective agreements.

The memo was sent to all pertinent freight transport companies whose average monthly wages, according to their reports, are less than 620 euros per month.

The Labor Inspectorate's memos reminded businesses that according to the collective labor agreement for domestic freight transport, the minimum monthly wage for employees involved in freight transport together with premiums is 620 euros and the minimum hourly wage without premiums is 2.85 euros.

The memo also reminded them that the same wage minimums apply to self-employed contractors with whom contracts have been concluded if the contracts in fact correspond to the characteristics of an employment contract and the primary job duty as outlined in the contract is freight transport.

In the case of international freight transport, the Employment Act provides for a minimum hourly wage of 2.54 euros and, in the case of full-time employment, a monthly wage of 430 euros.

This September, the Labor Inspectorate initiated national supervision proceedings regarding compliance with the collective labor agreement and other collective agreements in businesses involved in freight transport.

Editor: Aili Vahtla

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