Trade unions are also dissatisfied that the government has relegated their role as social partners.

Estonia has one of the lowest rates of collective agreements in the EU. The EU's minimum directive encourages concluding collective labor relations.

State and local government employees union (ROTAL) chair Kalle Liivamägi said: "On three occasions, the minister stated that in the public sector — and I understand also in state-owned enterprises — no collective agreements will be concluded during his tenure."

"In state institutions, the trend is to avoid specifying salary figures in contracts. On the other hand, employers have begun to terminate collective agreements. This option is available to both parties. With this, the goal of 80 percent coverage with collective agreements is now instead receding."

Liivamägi also listed sectors where collective agreements have not been renewed. "For instance, [care homes service provider] AS Hoolekandeteenused started this trend, followed by meteorological service providers under the Environmental Agency, where the collective agreement was also terminated. Currently, the collective agreement between the Rescue Board and the rescue workers' union has also been terminated. There are more examples of terminations than of new collective agreements being concluded."

ROTAL and the Estonian energy workers' union (EEAÜL) cited cases where their proposed amendments to the Employment Contracts Act were ignored. They also noted the government no longer holds regular meetings with employers and unions, considering ministerial-level talks sufficient.

Minister: Ideological differences do exist

Keldo said he finds accusations that the government ignores social partners' proposals puzzling, as the bill has long been prepared and gone through multiple stakeholder consultations.

He said: "Once again, it is very strange to hear this accusation or complaint.
Let me call to mind that rendering the Employment Contracts Act more flexible has been a very lengthy process. It started back in 2021. It has been discussed repeatedly with labor market stakeholders and publicly."

Keldo rejected claims that social partners have been overlooked but admitted ideological differences between unions and the free market-oriented Reform Party.

"That we do not fully align ideologically is certainly comprehensible. About the collective agreements, I was asked whether the government plans to proceed with additional collective agreements in the public sector. I said directly and honestly that with this government we will certainly not conclude additional collective agreements in the public sector. But these collective agreements, like those for teachers and doctors' and nurses' wages, are functioning systems and no changes are planned for them in future."

Liivamägi maintained they had no idea about the latest Employment Contracts Act changes. "This latest project was not presented to the trade unions.
The trade unions read about it through the media. This is not appropriate for a democratic country," Liivamägi said.

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