Coordinating collective bargaining – Summer College

TETYK Hotel – Protaras, Paralimni13 – 16 September 2009

952.45

This event had the support of the European Union

 

Participants

Documents

 

 

The contents of the seminar

How collective bargaining can contribute to overcome the consequences of the financial and economic crisis was the main topic during a seminar organised by the European Trade Union Institute and the European Federation of Metal Workers’ in Protaras, Cyprus 12th to 16th September 2009.

Representatives from Belgium, the Czech Republic, Denmark, Finland, France, Germany, Italy, Spain and Sweden informed each other about the measures taken by their organisations to save jobs and trying to soften the raise of unemployment in their countries. (National presentations can be downloaded from the Document section of this Web Site).

The country reports gave us a good overview of the difficult situation today in Europe and on the often similar and sometimes different ways that trade unions deal with this.

Mainly two kind of collective bargaining instruments used to various degrees in national policy mixes  can be found:

*      Gaining-Time-Instruments

*      Stimulus-Instruments

 

 

 

 Béla Galgóczi, senior researcher at ETUI gave an overview of the collective bargaining climate in the European metal sector at the light of macroeconomic and sectoral trends triggering the participants to comment on their specific national situations. (His PPT presentation can be downloaded from the Document section of this Web site.) During a following session a lively discussion took place around how such crisis could be avoided in the future. All the participants agreed that wages and purchasing power have to be raised to base the EU economy on stronger demand rather then on financial bubbles. 

*      The Unions in Europe are facing similar problems.

*      Some observers assume, that the bottom of the crisis is reached. The unions still expect massive job losses and ongoing enormous problems in the covered sectors.

*      Keeping people in the job is the most important goal. The plants have to stay open.  Gaining time short term work

*      Wage development is also important in order to increase purchasing power.

*      Some of the used instruments will run out shortly

The problems connected with concessional bargaining were explored by Ronald Janssen,  introducing the discussion topic for a working group session about what could be the options in coming collective bargaining rounds.

Go for the ‘New Social Deal’

*      Strengthen wage formation and collective bargaining

*      European policy coordination on:

*       Insuring minimum levels of wages exist in all labour markets

*       Enlarging the coverage rate of collectively bargained wages

*      Force of the intellectual argument on our side (fair wages as a sustainable engine of demand and growth instead of financial bubbles).

*      But not the force of the ‘emotional’ argument’ (‘We are all in the same boat together’), nor the political power balance.

Defend and implement coordination on existing formulae

*      ‘Inflation plus productivity’

*      Looking at ‘trends’ over several years :

*       Allows to ‘digest’ 2008/2009 collapse in productivity (which would be followed by a surge in productivity performance anyway?)

*       However, danger of allowing wage moderation now, hoping (vainly?) to recover wage moderation in coming years.

*       If so, don’t we need a second (internal) line of defence ? (such as ‘at least inflation’ or at least ‘some’ real wage increase).

*      Do we maintain the reference to effective inflation? In doing so, we will consolidate ‘too low’ inflation? Do we take price stabilility inflation of 2% instead of effective inflation into account?

The working groups reported that:

*      Short time work or temporary layoffs (backed by public money) and collective agreements in different forms) are an important instrument throughout the European unions.

*      Often a difference between policies on international, national, sectoral and local policies can be observed.

*      Precarious workers (e.g. temporary agency workers) were the first who had to leave the companies. The shared view is, that companies will make an attempt to reorganize and to force more employees to accept precarious working conditions.

*      The discussion about the reduction of working time as one of the instruments to overcome the crisis is led in nearly all European countries. 

*      Short time solutions will soon run out and need to be extended.

*      Long term / strategic solutions are often not in place. There needs to be an implementation of strategies to overcome the crisis and to establish future labour relations.

*      In the future an extended role of European coordination (especially also on company level) as well as more common demands and policies will have to be developed and implemented by the affiliates of the EMF

René Johanssen, CO-industri, Denmark presented an overview analysing the impact of various labour market policies in different countries on employment and the growth of unemployment.

Bart Samijn, Deputy General Secretary, EMF showed some examples of European Framework Agreements as a tool to deal with restructuring in the framework of the crisis.

The final plenary debate led to the conclusions that:

*      The financial and economic crisis was caused by liberalism, not by high labour costs.

*      Working hours can be cut and flexible systems can be introduced in order to secure employment and create more jobs.

*      However, reduced working hours must not be accompanied by lower wages. On the contrary, higher wages or at least maintained purchasing power is necessary to keep up the demand and to promote economic recovery.

Some useful links

The European Metal Workers' Federation

INTERNATIONAL TRADE UNION CONFEDERATION - CONFEDERATION INTERNATIONALE DES SYNDICATS

EUROPEAN TRADE UNION CONFEDERATION - CONFEDERATION EUROPEENNE DES SYNDICATS

EUROPEAN TRADE UNION INSTITUTE - INSTITUT SYNDICAL EUROPEEN

INTERNATIONAL LABOUR ORGANISATION - ORGANISATION INTERNATIONALE DU TRAVAIL