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Financial Participation

The incidence of employee share ownership and profit-sharing is below average in Latvia by European comparison. After the end of the privatisation phase the significance of employee share ownership declined sharply.

 

According to data evaluated by the fifth European Working Conditions Survey (EWCS), the incidence of profit-sharing in Latvia is about 7.8% and of employee share ownership schemes about 0.9%.1 With these figures Latvia – in this study – is in the lowest third among European countries.

 

 

According to the European Company Survey, a questionnaire of more than 27,000 HR managers in Europe from 2009, 4% of private companies in Latvia with 10 or more employees had an employee share ownership scheme. The incidence of profit-sharing schemes was 10%, according to the European Company Survey. By European comparison this is slightly below average (the average in the 30 energy efficiency countries studied: 14%). The incidence of profit-sharing schemes varies by size of enterprise. Thus 9% of companies in Latvia with 10–49 employees, 17% of companies with 50–199 employees and 30% of companies with 200 or more employees had a profit-sharing scheme.2

According year-olds the Annual Economic Survey of Employee Ownership in European Countries in 2012 33.3% of the largest Latvian companies offer broad-based employee share ownership/participation schemes for the whole workforce (European average: 53.3%).3

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.