Industrial relations - Industrial relations in Europe in the 21. century - concepts, tools and challenges _ Christian Welz - Eurofound

1. Coordinating the Network of EU Agencies 2015
Industrial Relations in the 21st century:
concepts, tools and challenges
Forum on Protection of Worker's Rights and
Decent Work in the Context of Regional
Trade Integration
Ministry of Labour, Taipei, 19 August 2015
Christian Welz
Eurofound

2. Coordinating the Network of EU Agencies 2015
SOCIAL PARTNERS

3. Trade Unions
Intersectoral
level
Government
Employers
Intersectoral level
Sectoral level Sectoral level
Company level
Levels of CB - wages
Company level
Belgium
Finland
Austria
Denmark1
France1
Germany
Greece
Ireland1
Italy
Luxembourg1
Netherlands
Portugal1
Spain1
Sweden1
Denmark2
France2
Ireland2
Luxembourg2
Portugal2
Spain2
Sweden2
UK

4. Trade Unions
Intersectoral
level
Government
Employers
Intersectoral level
Sectoral level Sectoral level
Company level
Levels of CB - wages
Company level
Slovenia 1
Bulagaria1
Cyprus 1
Slovakia 1
Slovenia 2
Bulgaria2
Croatia
Cyprus 2
Czech Rep.
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Romania
Slovakia 2

5. Trade Union density rates 2013 in %
Eurofound 2015

6. Employer density rates 2013
Eurofound 2015
Membership of employers’ organisations participating in collective bargaining (%)

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COLLECTIVE BARGAINING
PROCESSES

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Collective bargaining coverage
2002 - 2013

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Collective bargaining coverage
1997/99 2011/13
Very low (<20%)
Low (20% - 40%)
MT
CY
Medium (40% - 60%)
High (60% - 80%)
CY
MT
Very high (> 80%)
68% 61%

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Developments in deviations from CA
since the late 90s
Opening clauses Opt-out clauses
Other deviation
practices
introduction
or increase of
deviation
practices
before
2008
Germany,
Finland, Italy,
Norway
Estonia
Denmark, France,
Italy, Lithuania,
Poland, Slovenia
since
2008
Austria, Cyprus,
Germany, Italy,
Norway, Portugal,
Sweden
Bulgaria, Spain,
France, Greece,
Ireland, Italy,
Slovenia
Cyprus, Denmark,
Croatia, France,
Lithuania, Romania
no/few changes
Belgium, Czech Republic, Hungary, Latvia,
Luxembourg, Malta, Netherlands, Slovakia, UK

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Processes in the crisis 2008-2013

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• continental Western, central Eastern and Nordic IR regimes apply the
favourability’ principle to govern the relationship between different levels of CB
– CAs at lower levels can only on standards established by higher levels
– exceptions: IE and the UK > reflecting their different legal tradition based on voluntarism
• FR
– FR made changes already in 2004 (loi Fillon)
• ES
– 2011 law inverted the principle as between sector or provincial agreements and company
agreements
EL
– 2011 law inverts the principle between the sector and company levels for the duration of
the financial assistance until at least 2015
• PT
– 2012 Labour Code inverts the principle, but allows EOs and TUs to negotiate a clause in
higher-level CA reverting to the favourability principle
Ordering / favourability principle

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opening clauses in sector/cross-sector CAs provide scope for
further negotiation on aspects of wages at company level
opt-out clauses permit derogation under certain conditions from
the wage standards specified in the sector/cross-sector CA
changes in opening clauses  6 MS
AT, DE, FI, IT, PT, SE
changes in opt-out clauses  8 MS
BG, CY, EL, ES, FR, IE, IT, SI
•
Changes in opening/opt-out clauses

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• changes: EL, FR, HU, PT and RO
• EL
– under 2011 legislation, CAs can be concluded in companies with
fewer than 50 employees with unspecified ‘associations of
persons’  these must represent at least 60% of the employees
concerned
• RO
– legislation (2011) introduces harder criteria for trade TU
representativeness
– where TUs do not meet the new criteria at company level, EOs can
now negotiate CAs with unspecified elected employee reps
Extension of CB competence

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Extension mechanisms
of the 28 MS
> 23 MS have extension mechanisms or a functional
equivalent (IT)
 no legal procedure for extending collective agreements in
CY, DK, MT SE and UK
changes to either extension procedures or in their use
in 8 MS
BG, DE, EL, IE, PT, RO, SK, IT

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 clauses providing for agreements to continue to have
effect beyond the date of expiry until a new agreement
is concluded are intended to protect workers should
employers refuse to negotiate a renewal
 they are found in a 9 MS at least
 AT, DK, EE, EL, ES, HR, PT, SE, SK
 changes have been made to such provisions in 5 MS
 EE, EL, ES, HR, PT
Continuation of CAs beyond expiry

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Company level
Sector level
National level
AT
CY
EL
IT
BG
ES
FR
FI
LT
RO SI
IE
Trends in main levels of CB
BE
PT

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OUTCOMES OF
COLLECTIVE BARGAINING

19. Coordinating the Network of EU Agencies 2015
economic aspects employment aspects work-related aspects
competitiveness
change management
and restructuring
flexibility
downsizing
outsourcing and
contracting out
demographic change
profit-sharing schemes
dismissal rules and
compensation
pensions
early retirement
job classification
promotion / career
development
integration of minorities and
individuals at risk or with a
disadvantages in the labour
market
gender equality and gender
pay gap
promotion of active ageing
mobility and career
pathways, employment and
redeployment
employee leasing
employability/training
prevention on skills shortages
apprenticeship
new forms of work
work organisation
working conditions (also for
subcontractors)
gender mainstreaming
non-discrimination
work-Life-Balance
health and Safety (including
psychosocial risk environment, sexual
harassment)
CSR
undeclared work
Broadening agendas: outcomes/
topics covered

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Three groups of countries
• ‘the six’ – multiple changes (CY EL ES IE PT RO); all (previously) MEB
– discontinuation (IE, RO) or significant weakening (CY, EL, ES, RO) of MEB
arrangements, including removal / curtailing of key state supports
– significantly driven by external actors i.e. the ‘troika’ through MoUs
accompanying financial assistance packages (exception ES)
• ‘the four’ – some changes (HR HU IT SI); three MEB, one SEB
– primarily driven by domestic actors
• ‘the nineteen’ – few (or no) changes; twelve (of 21) MEB, seven (of 8) SEB
– absence of major impact of the crisis on economic activity (e.g. PL, CZ)
– capacity of existing CWSMs to secure wage adjustments (e.g. DE, NL, DK, NO,
SE, UK)
– CWSMs marginal to wage setting (e.g. Baltic states)

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No. of collective agreements 2013
AT BE BG CY CZ DE DK EE EL1 EL2 ES FR IT LT LU LV MT NL PL PT RO SE SK UK

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2008 2009 2010 2011 2012 2013 2014
sector CA
194
164 166 115 46 46 72
company
CA
97 87 64 55 39 49 80
total CA 291 251 230 170 85 95 152
extension 137 102 116 17 12 9 13
coverage /
in 1000
1,895 1,397 1,407 1,237 328 243 246
No. of newly concluded CAs in PT

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Crisis vs. megatrends
Trend Origin
Restructuring of actors Megatrend
Decline in trade union density Megatrend
Public Sector Reform Megatrend
Decentralisation of collective bargaining Megatrend (crisis accelerated)
Increase in opt-out clauses Crisis-induced trend
Increase in opening clauses Crisis-induced trend
Decrease of extensions Crisis-induced trend
Shorter duration of collective agreements Crisis-induced trend
Drop in volume of bargaining Crisis-induced trend
Drop in quality of bargaining Crisis-induced trend
Shorter continuation of CAs upon expiry Crisis-induced trend
Reforms in wage-setting mechanisms Crisis-induced trend
More adversarial industrial relations Crisis-induced trend

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Further information
christian.welz@eurofound.europa.eu