In a letter to Minister of Economic Affairs Erkki Keldo (Reform), Chancellor of Justice Ülle Madise noted that if the government approves the proposed change and the bill is introduced to the Riigikogu, potential role conflicts between the duties of the justice chancellor and the responsibilities of the public conciliator must be considered.

"For example, there could be a concerning situation where the chancellor, as the public conciliator, would need to resolve a collective labor dispute between employees and employers in sector X, while simultaneously conducting constitutional oversight on a regulation that either permits or prohibits strikes by employees in that sector," Madise said.

Madise explained that whether a labor dispute may lead to a strike or not could, to some extent, influence the nature of the conciliation process. According to the law, the public conciliator must determine the essential service or production level required in companies and institutions that meet the basic needs of the population and the economy, should the parties in the labor dispute fail to reach an agreement on this issue.

By law, the government is also required to establish a list of companies and institutions that provide these essential services for the population and the economy.

"The government has not yet done this. In any case, I consider it necessary that before any potential restructuring of the role of the public conciliator, the government should either establish this list as provided by the Collective Labor Dispute Resolution Act or address the matter in another constitutionally sound manner," Madise said.

Madise also pointed out that the government should carefully weigh whether the anticipated cost savings outweigh the potential for conflict between social partners and the government.

"An additional task for the chancellor of justice would require approximately €80,000 annually from the state budget to cover the salary of the official responsible for the conciliation process, as well as experts. Additional costs would likely also arise," Madise added.

She also reminded that strikes are a legitimate means of defending one's rights in a free world. "In this context, the potential amendments to the Collective Labor Dispute Resolution Act should analyze additional ways in which officials and employees of institutions that are subject to strike bans or extensive strike restrictions can defend their rights concerning working conditions, pay and rest periods," the justice chancellor emphasized.

Madise noted that while the explanatory memorandum to the bill claims that the workload of the public conciliator has not been high enough to justify maintaining a separate institution or allocating funds at the current level, this does not mean that the workload couldn't increase in the future – such as in the case of a prolonged economic recession, budget cuts or other circumstances.

According to Madise, she understands the caution and reluctance of social partners – employers and employees – regarding the restructuring of the public conciliator institution, as they were not involved in the preparation of the bill, and therefore, the necessary trust has not been established.

"It would be prudent to take more time in preparing this bill, and to give the ministry, the public conciliator, social partners and the chancellor of justice an opportunity to discuss the necessity and justification for the proposed changes," Madise said.

The economy minister sent for coordination and feedback a bill which proposes transferring the responsibilities of the public conciliator to the chancellor of justice. Comments on the proposal, which was sent out on September 16, are expected by September 18.

The explanatory memorandum to the bill argues that transferring the tasks of the public conciliator to the chancellor of justice would improve the quality and efficiency of resolving collective labor disputes due to the greater capacity of the chancellor's office.

Current public conciliator Meelis Virkebau has expressed his view that the bill, initiated by the Ministry of Economic Affairs, to transfer the duties of the public conciliator to the chancellor of justice is unfortunate and ill-conceived, as it dismantles a system of collective labor dispute mediation that has functioned efficiently for over 25 years.

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