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Industrial relations - Impact of the crisis on industrial relations: collective bargaining and wage setting under pressure - Christian Welz - Eurofound
The document discusses the impact of the economic crisis on industrial relations in Europe, particularly focusing on collective bargaining and wage-setting amidst pressures faced by various actors. It outlines changes in trade union density, government policies, and bargaining processes across member states, detailing both successes and declines in tripartite negotiations. The conclusions emphasize how intervention from financial assistance has reshaped wage-setting mechanisms and raised concerns over the potential re-commodification of labor.
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Industrial relations - Impact of the crisis on industrial relations: collective bargaining and wage setting under pressure - Christian Welz - Eurofound
- 1. Eurofound – EuropeanFoundation for the Improvement of Living and Working Conditions www.eurofound.europa.eu Impact of the crisis on industrial relations: collective bargaining and wage-setting under pressure Labour and Employment Law Issues in the 21st Century: Ireland, Europe, and the United States University of Limerick 30 October 2015 Christian Welz
- 2. 1. Prologue 2. Actorsu n d e r p r e s s u r e 3. Processes u n d e r p r e s s u r e 4. Outcomes u n d e r p r e s s u r e 5. Conclusions 6. Epilogue and discussion Table of content
- 3. • “By viewinglabour as a commodity, we at once get rid of the moral basis on which the relation of employer and employed should stand, and make the so-called law of the market the sole regulator of that relation.” • (Dr John Kells Ingram, address to the British TUC in Dublin 1880) 1. Prologue
- 4. • Treaty ofVersailles (article 427) first principle of the new ILO pro- claimed ‘ that labour should not be regarded as a commodity or article of commerce introduced by British delegation Gompers > personal defeat • ILO DECLARATION OF PHILADELP labour is a commodity 1. Prologue
- 5. 2. Actors Impact MemberState successful tripartite negotiation (8-10) BE, BG, CZ, EE, FR, LT, LV, NL, PL, PT breakdown of tripartite negotiations (10---) BE(2011/12), ES, FI, GR, HR, HU, IE, IT, LU, PL(2011/12), SI reorganisation of public actors and bodies ES, GR, HR, HU, IE, LU, RO decline in trade union density CY, BG, DK, EE, IE, LT, LV, SE, SI, SK, UK halt in trade union density decline/increase in trade union density AT, CZ, DE, EE (for transport), LT changes to membership of employer bodies CY (increase), DE (increase in members not bound by CA), LT (first decline then increase)
- 6. 2. Actors Impact MS decreasinginfluence and visibility BE, DK, EE, HU, IE, LV, NL increased cooperation between the social partners DE, HU, LT, NL emergence of new social movements ES, GR, PT, SI increase government unilateralism BE, BG, EE, ES, GR, HR, IE, PL, PT, SI new power balance among actors BG, EE, ES, GR, LT, LV, PT
- 7. Trade union density_ 2011 v 2012 EIRO/ETUI 2013 FR LT PL EE HU LV CZ SK ES NL DE PT BG UK SI EU IE AT HR RO LU IT BE MT DK SE FI 2011 8 10 12 11 11 12 16 16 15 21 22 20 18 26 27 31 34 34 35 40 37 36 52 59 67 70 68 2012 8 9 10 11 11 12 14 15 16 17 18 20 22 26 27 29 31 33 35 35 37 37 50 57 67 70 74 0 10 20 30 40 50 60 70 80 % of workforce 2011 2012
- 8. Employer density _2012 v 2013 EIRO 2013/14 LT PL EE HR SK LV UK CZ BG EU DK IT IE FR FI BE LU SI SE NL AT 2011 15 20 25 28 33 34 35 41 42 54 58 58 60 60 70 76 80 80 87 90 100 2012 15 20 25 28 30 41 35 49 0 56 58 0 60 75 71 80 80 80 86 85 100 0 20 40 60 80 100 120 % of employees in companies members of an EO 2011 2012
- 9. 3. Processes PROCESSES - SUMMARY Typeof change MS Main level(s) of bargaining: Decentralisation AT BG CY EL ES FR IE IT RO SI Recentralisation BE FI Horizontal coordination across bargaining units AT ES HU IE RO SE SK Linkages between levels of bargaining Ordering between levels EL ES PT Opening and opt-out clauses AT BG CY DE EL ES FI FR IE IT NO PT SE SI Extending bargaining competence EL FR HU PT RO Reach and continuity of bargaining Extension procedures EL IE SK PT RO Increased / changed use of existing procedures BG DE IT Continuation beyond expiry EE EL ES HR PT Minimum wage setting and indexation
- 10. 2008 2011 Austria MEBMEB Belgium MEB MEB Bulgaria Mixed Mixed Croatia MEB MEB Cyprus Mixed Mixed Czech Republic SEB SEB Denmark MEB MEB Estonia SEB SEB Finland MEB MEB France MEB MEB Germany MEB MEB Greece MEB MEB Hungary SEB SEB Ireland MEB SEB Italy MEB MEB Latvia SEB SEB Lithuania SEB SEB Luxembourg MEB MEB Malta SEB SEB Netherlands MEB MEB Norway MEB MEB Poland SEB SEB Portugal MEB MEB Romania MEB SEB Slovakia Mixed Mixed Slovenia MEB MEB Spain MEB MEB Sweden MEB MEB United Kingdom SEB SEB
- 11. Trade Unions Intersectoral level Government Employers Intersectoral level Sectorallevel 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
- 12. Trade Unions Intersectoral level Government Employers Intersectoral level Sectorallevel 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
- 13. Company level Sector level Nationallevel AT CY EL IT BG ES FR FI LT RO SI IE Trends in main levels of CB BE PT
- 14. • 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
- 15. opening clauses insector/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
- 16. • 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
- 17. Extension mechanisms of the28 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
- 18. clauses providingfor 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
- 19. 4. Outcomes Impact MS inconclusiveoutcomes BG, CY, CZ ES, MT, NL decrease in number of agreements CY, CZ, EE, LV, MT, PT, RO, SI increase in duration of agreements AT, DE decrease in duration of agreements BG, CY, DK, GR, LV, ES, SE decrease in the level of pay increases AT, ES, FI, NL pay cuts or freezes AT, BE, BG, DE, DK, ES, FI, GR, HU, IE, IT, LT, LU, LV, NL, PL, PT, SI, SK, UK working time reduction/short-time working AT, BE, BG, DE, FR, HU, IT, LT, NL, PL, SI, SK non-renewal of agreements BG, CY, EE, ES
- 20. 2008 2009 20102011 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 +/_15 coverage / in 1000 pers. 1,895 1,397 1,407 1,237 328 243 246 No. of CAs in PT
- 21. • change hasbeen concentrated amongst 6 MS, whose WSMs have each undergone multiple changes CY, EL, ES, IE, PT, RO been in receipt of financial assistance packages from the ‘troika’ changes in WSMs were required in all except ES • in a further 4 MS there have been some changes to WSMs HR, HU, IT and SI change primarily driven by domestic actors > governments or SP • in a majority of 18 MS WSMs have seen few or no changes since 2008 5. Conclusions
- 22. • impact ofthe ‘troika’ in inducing changes to WSMs amongst those countries receiving financial assistance packages is clear • government-imposed measures in these countries have substantially reconfigured WSMs • impact of the new European Economic governance less clear 5. Conclusions
- 23. • ILO DECLARATIONOF PHILADELP labour is not a commodity • wage setting in the crisis and the new economic governance ….. • towards a marketisation of wages (Marginson/Welz) • towards a re-commodification of labour ? 6. Epilogue and discussion
- 24. Further information christian.welz@eurofound.europa.eu slideshare Christian Welz European industrial relations dictionary