October 7 marks the World Day for Decent Work – an opportunity to talk not only about the number of jobs, but also about their quality. In the view of the Lithuanian Federation of Industrial Trade Unions (LPPSF), the future of European industry must be built not by reducing the cost of labour, but by investing in people, their skills, safety and decent wages.
Europe’s industrial sector is currently at a challenging crossroads. Geopolitical conflicts, fluctuations in energy prices, growing competition in global markets, accelerating digitalisation and artificial intelligence, as well as the green transition, are changing the way we produce and work.
LPPSF, together with European trade unions, stresses that the response to these challenges cannot be based solely on cutting costs, weakening workers’ protections or deteriorating working conditions.
Producing More Cheaply Does Not Mean Being More Competitive
Europe needs an active industrial policy, investment and quality jobs. “Made in Europe” should mean not only where a product is made, but also what kind of work goes into creating it – with fair pay, collective bargaining, safe working conditions and respect for workers’ rights.
This is particularly relevant for Lithuania. Our country’s industrial competitiveness should not be based on the principle that “the cheaper, the more competitive”. In the long term, this means lower incomes for workers, the loss of skilled people and lower productivity.
What Needs to Be Done?
We need to invest in workers’ skills, technological capabilities, safe working environments and the opportunity to earn a wage that allows people to live with dignity.
Collective bargaining and social dialogue must become key mechanisms enabling workers to participate in decisions about how the industrial transformation affects their jobs.
Training alone is not enough. Workers also need real, quality jobs and a clear industrial strategy developed with the involvement of workers’ representatives.
Sustainable Energy Is Essential for Economic Resilience
The future of industry is inseparable from energy. High and volatile energy prices increase companies’ costs, reduce the attractiveness of investment and can threaten the sustainability of jobs.
However, the energy crisis cannot be viewed solely from the perspective of business competitiveness. As the Trade Union Advisory Committee to the OECD (TUAC) points out, when energy and food prices rise, workers pay the price through declining purchasing power.
An economy may continue to record GDP growth, but if people’s real incomes and living standards deteriorate, it is difficult to describe such an economy as truly resilient.
That is why the energy transition must be based on social dialogue and collective bargaining: skilled people, fair pay and quality jobs are essential conditions for a successful transformation.
People Must Make the Decisions – Not AI
Trade unions are continuously raising concerns about workers’ control and protection when artificial intelligence (AI) is used in the workplace. We must ensure that people – not technology – remain at the centre of decision-making, and that technological progress does not become an excuse for weakening workers’ rights.
TUAC highlights an important trend: investment in artificial intelligence and technology can boost GDP and trade, but this does not necessarily mean more and better jobs or higher wages.
Therefore, economic resilience cannot be measured by growth indicators alone. We must ensure that the additional value created through productivity gains also reaches workers – through higher wages and better working conditions.
In LPPSF’s view, Europe needs a strong industrial policy, long-term investment, energy security and a fair green and digital transition. At the same time, public investment and business support must be linked to quality jobs, respect for workers’ rights and collective bargaining.
The true resilience of the European economy begins with resilient workers – people who have secure jobs, fair wages, opportunities to learn, a voice at work and a genuine role in decisions about their future.
This is equally relevant for Lithuania. Our goal should not be to become a country where production is cheap. We should strive to make Lithuania a place where it is not only worthwhile to invest, but also good to work and live.