On 14 July, the Seimas of Lithuania will consider the Programme of the Twenty-First Government. The programme places strong emphasis on economic growth, competitiveness, investment, technological advancement, stronger public services and social protection.
The Lithuanian Trade Union Confederation (LPSK) welcomes these priorities. However, it stresses that the country’s long-term success will ultimately depend on whether equal importance is given to investing in people – their working conditions, skills, incomes and social dialogue.
Compared to previous government programmes, this one places greater emphasis on workers’ representation. It proposes strengthening collective labour relations, expanding trade unions’ capacity to bargain, promoting sectoral collective agreements, reinforcing the role of the Tripartite Council, improving protection for workers’ representatives and strengthening the role of the State Labour Inspectorate in ensuring compliance with labour law.
LPSK considers these commitments a solid foundation for future cooperation. However, commitments on paper are not enough. They must be translated into concrete actions that workers can experience in their everyday working lives.
Social dialogue should become not merely a formal procedure but a daily practice that helps develop solutions in both the public and private sectors.
Competitiveness starts with people
One of the Government’s key objectives is to increase Lithuania’s competitiveness by promoting innovation and productivity. These are important goals, but international experience shows that a competitive economy is built not only through investment in technology or business development.
The latest European Commission study “Sectoral competitiveness in the Baltic Countries: a revealed productivity approach” highlights that sustainable productivity growth depends on investment in workers’ skills, innovation, efficient use of resources and the ability to create higher added value.
The study also notes that Lithuania has recorded one of the fastest productivity growth rates among the Baltic States over the past decade. However, maintaining this trend requires continuous investment in people.
This approach is consistently emphasised by both the Organisation for Economic Co-operation and Development (OECD) and the European Commission, which stress that long-term economic growth is driven not by short-term cost-cutting, but by investment in people’s knowledge, skills, health and capacity to adapt to change.
The most sustainable investment
Investing in people is one of the most sustainable investments a country can make. Such investments generate returns not only through higher productivity and stronger economic performance today, but also by creating long-term value for future generations through better education, higher qualifications, increased employment, reduced social inequality and greater societal resilience.
This is the hallmark of a genuine long-term development strategy: competitiveness is built through sustained investment in people rather than through short-term solutions.
In LPSK’s view, productivity should never be equated with heavier workloads or faster work pace. Real productivity means modern workplaces, lifelong learning opportunities, safe and healthy working environments and a fair distribution of the value created by workers.
It is equally important that collective bargaining and social dialogue are recognised not as obstacles to competitiveness but as one of its foundations. The International Labour Organization (ILO) has repeatedly highlighted that social dialogue is one of the key instruments for achieving sustainable economic growth and creating quality jobs.
When workers are involved in decision-making, trust increases, organisational change becomes easier to implement and productivity and economic stability improve.
Artificial intelligence: keeping people at the centre
One of the Government Programme’s most ambitious priorities is the deployment of artificial intelligence (AI) and other digital technologies across both the public and private sectors. The programme envisages a national AI strategy, wider use of digital technologies, stronger cybersecurity and improved digital skills throughout society.
LPSK supports technological progress. However, it emphasises that the development of artificial intelligence must be guided by one fundamental principle: people must remain at the centre of decision-making. Technology should help people work more safely, efficiently and creatively, but it should never replace human judgement or become a tool for uncontrolled worker surveillance or automated employment decisions.
It is equally important to ensure that artificial intelligence does not deepen social inequalities. Digital transformation must be accessible to everyone, regardless of income, age or place of residence. Investment in technology must therefore go hand in hand with investment in people’s digital skills, lifelong learning and opportunities to reskill as the labour market evolves.
Can growing demand for AI be balanced with environmental sustainability?
LPSK also draws attention to another increasingly important issue: the impact of artificial intelligence on energy consumption. Large language models, data centres and rapidly expanding AI applications require growing amounts of electricity and other natural resources. Technological progress must therefore be balanced with responsible energy use, climate objectives and social justice.
In the trade unions’ view, it would be unfair if the costs of expanding AI infrastructure and increasing energy demand were borne primarily by low-income households—especially those who cannot themselves benefit from AI technologies because of financial or other barriers.
Technological progress should create value for society as a whole, while both its benefits and its costs should be shared fairly.
A strong public sector benefits everyone
The Government Programme also proposes strengthening public services, reviewing public-sector pay systems, improving working conditions in healthcare, expanding social services and increasing their accessibility.
LPSK underlines that a strong public sector benefits not only those employed within it. High-quality healthcare, education and social services strengthen societal resilience, create better conditions for businesses, help attract and retain skilled workers and ultimately contribute to the country’s overall competitiveness.
The key challenge: maintaining the right balance
LPSK welcomes the fact that the Government Programme places greater emphasis than before on social dialogue, collective bargaining, workers’ representation and social protection. These commitments provide an opportunity to strengthen trust between workers, employers and the state.
Nevertheless, the real challenge begins once the programme moves from paper to practice.
A competitive economy is not built at the expense of workers’ rights. It is built by investing in people, their skills, innovation and quality jobs. Successfully implementing the Government Programme therefore requires maintaining the right balance between economic objectives and social responsibility.
LPSK stands ready to actively contribute to this process by putting forward proposals that ensure economic growth, technological progress and stronger public services benefit everyone in Lithuania.
Only strong social dialogue, respect for workers’ rights and a shared vision for the country’s future can ensure that Lithuania’s competitiveness grows hand in hand with people’s well-being.
Photo: vle.lt