As Swedish welfare state claims to be an achievement of Social Democrats, Latvian first social legislation was formed by National Council's Social Department in 1918. Its work included labour protection and elimination of conflicts, care for disabled war veterans, social care and supervision of labor market. Later Ministry of Labor was created, which responsibility included pension funds and social insurance to all workers with exception of those employed in agriculture and sailors of high sea vessels. The insurance was mandatory and performed by sickness funds, which were managed by institutions elected by the insured persons themselves. Contributions to sickness funds were made in equal parts by employees and employers, and the state paid equal amount as the insured. [4]
As it was in Sweden in the 60ies reform of pensions, sickness benefits and unemployment insurance lead to raising of taxes and unpopular political decisions [2], the Parlament of Latvia (Saeima) adopted the law on insurance of paid employees in cases of emergency and professional sicknesses, which was one of the most modern social insurance laws in the world. During this period, also regulations of collective employment contracts were passed, regulating the relations between employers and employees.[4]…
