REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                                                                                
                                                                                
                    ON COLLECTIVE AGREEMENTS                                    
                                                                                
     This Law  shall regulate the organization and legal basis of               
the formation and implementation of collective agreements.                      
                                                                                
                            Chapter 1                                           
                       GENERAL PROVISIONS                                       
                                                                                
     Article 1. The Collective Agreement                                        
                                                                                
     The collective  agreement shall be the agreement between the               
employees working  under an  employment contract, the collective,               
and the  employer. It  shall include  the character of work, wage               
rates, conditions of employment, the organization of work, safety               
at the  workplace, working  and leisure  time, as  well as  other               
social and economic conditions.                                                 
                                                                                
     Article 2. Representatives of Parties to Collective                        
               Agreements                                                       
                                                                                
     Parties to  collective agreements  shall be  represented  by               
trade union  organizations, which shall be authorized at meetings               
(conferences) of  the  collective  of  employees.  If  there  are               
several trade  unions, parties  to collective agreements shall be               
represented by a joint representative body, formed by the consent               
of these trade unions. (All trade unions shall participate in the               
agreement with  equal rights, regardless of their membership.) In               
the event  that trade unions do not exist, or if the trade unions               
do not  reach an  agreement concerning the formation of the joint               
representative body,  the parties to a collective agreement shall               
be represented  by  authorized  representatives  which  shall  be               
elected  by   the  collective,   the  employer,   or  individuals               
authorized by the employer.                                                     
     Employees who  are not  members of  trade unions  shall have               
their interests represented by self-elected representatives.                    
     Parties to  collective agreements  which are  concluded on a               
professional basis shall be represented by the organization of an               
appropriate  trade   union  and   the  employer,  or  individuals               
authorized by the employer.                                                     
                                                                                
     Article 3. The Sphere of the Formation of Collective                       
               Agreements                                                       
                                                                                
     Collective  agreements   must  be   formed  in  enterprises,               
institutions  and   organizations  (hereafter   referred  to   as               
enterprises) in  which employment  contracts are  concluded  with               
employees, regardless of the form of ownership of the enterprise,               
and without taking into account whether the enterprise is a legal               
person or  not, as  well as  in joint  ventures  and  enterprises               
functioning in the Republic of Lithuania.                                       
     Collective agreements  shall  be  concluded  in  enterprises               
regardless of  the number  of employees.  Upon the request of the               
employees, collective  agreements  shall  also  be  concluded  in               
branch enterprises.                                                             
     In newly formed enterprises, a collective agreement shall be               
concluded after  the registration of the enterprise in accordance               
with the procedure provided in this Law.                                        
     Collective agreements  shall not be concluded with officials               
(State employees) in organs of State and executive power.                       
                                                                                
                                                                                
     Article 4. The Meeting (Conference) of the Collective of                   
               Employees                                                        
                                                                                
     The power  to convene a meeting (conference) of a collective               
of employees  on the  conclusion,  amendment  or  addition  of  a               
collective agreement  shall be  vested in trade unions as well as               
in representatives  elected by  the employees.  In the event that               
there are  several trade  unions, the  right to convene a meeting               
(conference) shall  be vested in the joint representative body of               
trade  unions.   If  trade   unions  do   not   exist,   meetings               
(conferences) of  the collective  of employees  shall be convened               
upon the  written notice  of 1/10  of the  employees, or  by  the               
employer.                                                                       
     Meetings (conferences)  shall be  held within 15 days of the               
date  of  submission  of  the  written  notice  to  the  employer               
(administrative body of an enterprise).                                         
     A meeting  of a collective of employees shall be valid if at               
least 50%  of all  employees attend,  whereas a  conference of  a               
collective of  employees shall  be valid  if attended by at least               
2/3 of the delegates.                                                           
     If the  number of  employees (delegates), as provided for in               
paragraph  3   of  this  Article,  fail  to  attend  the  meeting               
(conference), another meeting (conference) shall be called within               
15 days.  This meeting  (conference) shall be valid regardless of               
the number of participating employees (delegates).                              
     Upon the  agreement of  the employees (delegates), decisions               
shall be  adopted at  meetings by  a majority  vote, and  by  2/3               
majority vote at conferences.                                                   
                                                                                
     Article 5. The Application of Collective Agreements                        
                                                                                
     Collective agreements  shall be  binding to  its parties  as               
well as to the legal successor of the employer. The employer must               
acquaint new  employees with  the provisions  of  the  collective               
agreement.  The  collective  agreement  shall  be  obligatory  to               
employees if labour contracts provide therefor.                                 
                                                                                
                            Chapter 2                                           
              THE CONTENTS OF COLLECTIVE AGREEMENTS                             
                                                                                
     Article 6. The Contents of Collective Agreements                           
                                                                                
     Collective agreements shall establish the terms defining the               
rights and  duties of the parties to the agreement, the procedure               
of their  implementation, as  well as  the responsibility  of the               
parties.                                                                        
     Parties to a collective agreement shall establish additional               
provisions concerning  the working,  social and living conditions               
and privileges  of employees, or such terms and regulations which               
are not  set forth  in the  laws of the Republic of Lithuania, or               
which, pursuant  to the laws of the Republic of Lithuania, may be               
established by the parties themselves.                                          
     Collective agreements shall specify:                                       
     the terms of concluding, amending and terminating collective               
agreements;                                                                     
     the terms  of work  pay and  organization of  work  (rate  -               
qualification remuneration,  wages according to posts, additional               
payments, other  privileges and  compensations, wage  indexation,               
the systems  and forms of wage payments and incentives, the order               
of wage payments and deductions as well as other regulations);                  
     the terms of working and leisure time;                                     
obligations  concerning  the  establishment  of  safe  and  sound               
working  conditions,  and  the  provision  of  compensations  and               
privileges in the event that the existing working conditions fail               
to comply  with  the  standards  set  forth  in  laws  and  other               
legislative acts;                                                               
     conditions  for   the   acquisition   of   speciality,   the               
improvement of  professional skill,  and retraining,  as well  as               
guarantees and privileges related to them; and other economic and               
social regulations which are of importance to other parties.                    
     The contents  of collective  agreements concluded  in  joint               
ventures and  enterprises of  foreign states  functioning on  the               
territory of  the Republic  of  Lithuania  shall  be  established               
pursuant to  the laws  of  the  Republic  of  Lithuania  and  the               
documents of the foundation of an enterprise.                                   
                                                                                
     Article 7. Invalidity of Collective Agreements Which Worsen                
               Employee Conditions                                              
                                                                                
     Terms,  regulations,   and  obligations   of  a   collective               
agreement which  provide conditions for employees which are worse               
than the  conditions established  by the  laws of the Republic of               
Lithuania shall be invalid.                                                     
                                                                                
     Article 8. The Structure of Collective Agreements                          
                                                                                
     The  structure,   parts,  and   supplements  of   collective               
agreements shall be defined by the parties involved.                            
                                                                                
                            Chapter 3                                           
             THE CONCLUSION OF COLLECTIVE AGREEMENTS                            
                                                                                
     Article 9. Negotiations on the Conclusion of Collective                    
               Agreements                                                       
                                                                                
     The right  to negotiate  on  the  closing  of  a  collective               
agreement shall  be granted  to the  representatives of  the both               
parties (Article 2 of this Law).                                                
     The procedure  for preparing a draft collective agreement as               
well as  the procedure  for negotiations  shall be established by               
the mutual  agreement of the parties and shall be recorded in the               
minutes.                                                                        
     Prior to  the beginning of the negotiations, representatives               
of the  parties shall  collect the proposals of employees and the               
necessary information concerning the economic, social and working               
conditions of  an enterprise.  Such information shall be provided               
by the employer and the representatives of employees.                           
                                                                                
     Article 10. Terms of Negotiations                                          
                                                                                
     Parties  must   begin  negotiating   the  conclusion   of  a               
collective agreement  upon the request of one of the parties. The               
negotiations shall commence within either 10 days or other period               
agreed upon by the partners.                                                    
     In the  case that  a collective  agreement has  already been               
concluded, the  parties shall begin negotiating the conclusion of               
a new  collective agreement  2 months  prior to the expiration of               
the existing collective agreement.                                              
                                                                                
     Article 11. The Preparation, Discussion, and Signing of                    
               Draft Collective Agreements                                      
                                                                                
     Parties to  a collective  agreement shall  prepare the draft               
collective agreement,  taking into consideration the proposals of               
the employees and agreements worked out during negotiations.                    
     The draft  agreement must  be discussed by the employees (at               
structural units) in accordance with the procedure established by               
the representatives  of the  parties, and  must be  submitted for               
further discussion  to the meeting (conference) of the collective               
of employees.                                                                   
     In the  event that  the draft  collective agreement  is  not               
approved,   representatives   of   the   parties,   taking   into               
consideration  the   indicated  remarks   and  proposals,   shall               
introduce amendments  and additions therein and repeatedly submit               
the draft  to the  meeting (conference)  for discussion within 15               
days.                                                                           
     Upon the  approval of  a draft  collective agreement  at the               
meeting (conference),  representatives of  the parties shall sign               
the agreement within three days.                                                
                                                                                
     Article 12. Entry into Force of Collective Agreements                      
                                                                                
     Collective agreements shall enter into force on the day that               
they are signed.                                                                
                                                                                
     Article 13. Validity of Collective Agreements                              
                                                                                
     Collective agreements  shall be valid until a new collective               
agreement is signed.                                                            
     The term  of validity  of a  collective agreement  shall  be               
established in  the collective  agreement, but  may not  exceed 2               
years.                                                                          
                                                                                
     Article 14. Amendments and Additions to Collective                         
               Agreements                                                       
                                                                                
     Within the  term of  validity  of  a  collective  agreement,               
parties to  the collective  agreement shall  make amendments  and               
additions therein  in  accordance  with  the  procedure  for  the               
conclusion of collective agreements if the parties do not provide               
otherwise in the collective agreement.                                          
                                                                                
                            Chapter 4                                           
         EXECUTION AND CONTROL OF COLLECTIVE AGREEMENTS                         
                                                                                
     Article 15. The Execution of Collective Agreements                         
                                                                                
     Parties shall  fulfil their  obligations in  accordance with               
the  procedure,   terms,  and  conditions  provided  for  in  the               
collective agreement.                                                           
                                                                                
     Article 16. Information Concerning the Implementation of                   
               Obligations and Regulations Established in                       
               Collective Agreements                                            
                                                                                
     Upon  the   request  of   employees   concerned   with   the               
implementation of  a collective  agreement,  the  employer  shall               
impart information  in accordance with the procedure set forth in               
the collective agreement within the period of 15 days.                          
                                                                                
     Article 17. Control of the Execution of Collective                         
               Agreements                                                       
                                                                                
     The right  to exercise  control over  the implementation  of               
obligations set forth in collective agreements shall be vested in               
the  representatives  of  the  parties,  as  well  as  in  bodies               
authorized by the laws of the Republic of Lithuania.                            
     Representatives of  the parties  to a  collective  agreement               
shall present  reports concerning the execution of the collective               
agreement to the collective of employees at least twice a year.                 
     Upon agreement  of the  parties, the  procedure and terms of               
presenting  reports   shall  be   set  forth  in  the  collective               
agreement.                                                                      
                                                                                
     Article 18. The Procedure for Resolving Disagreements and                  
               Disputes which Result from the Execution of                      
               Collective Agreements                                            
                                                                                
     Disagreements   and   disputes   which   result   from   the               
negotiations, conclusion  and execution of a collective agreement               
shall be  resolved in  accordance with  the procedure of settling               
collective disputes  (conflicts) provided  in  the  laws  of  the               
Republic of Lithuania.                                                          
     Disputes arising  between individual employees and employers               
as the  result of  failure to carry out a collective agreement or               
due to  the improper  implementation of  a  collective  agreement               
shall be settled in court.                                                      
                                                                                
     Article 19. Liability for Violating the Procedure of                       
               Conclusion of a  Collective Agreement or for                     
               Failing to Carry out a Collective Agreement                      
                                                                                
     Representatives of parties who have violated the established               
procedure of conclusion of a collective agreement and individuals               
guilty of  failing to  carry out  a collective agreement shall be               
liable under the laws of the Republic of Lithuania.                             
                                                                                
Vitiates Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
Vilnius                                                                         
4 April, 1991                                                                   
No I-1201