industrial relations, european industrial relations, industrial relations in Europe, labour relations, employment relations, social dialogue, trade, unions, crisis, cross-sector, employers, european company, european framework agreements, european works council, industrial action, industrial action, industrial relations, law, minimum wage, sectoral social dialogue, social dialogue, trade unions, wages, working time, bargaining in the shadow of the law, collective agreements, European commission, EU law, EU treaties, decentralization of collective bargaining, single employer bargaining, multi-employer bargaining, extension of collective agreements, favourability principle, opt-out, opening clause, erga omnes, commodity, ILO, dispute settlement, varieties of capitalism, coordinated market economy, liberal market economy, bi-partite, tri-partite, Val Duchesse, macro-economic dialogue, tri-partite social summit, social dialogue committee, working time, labor productivity, labor cost, trade union density, collective bargaining coverage, pay, autonomous agreements, telework, parental leave, BUSINESSEUROPE, ETUC, CEEP, UEAPME, mega trends, information and consultation

1. European Industrial Relations (IR)
University of Applied Sciences Kehl
Europäisches Verwaltungsmanagement
09 Mai 2015
Christian Welz
christian.welz@eurofound.europa.eu

3. Outline
A. EU at a glance
B. Diversity of national IR regimes
C. Europeanisation of IR regimes?
a. cross-sector level
b. sectoral level
c. company level
D. Impact of the crisis on IR regimes
E. Discussion

4. A. Primary EU law
• 1952: Treaty of Paris (ECSC)
• 1958: Treaties of Rome (EEC, EAC)
• 1987: Single European Act (Common
Market)
• 1993: Treaty of Maastricht (Euro,
ESD)
• 1999: Treaty of Amsterdam
• 2003: Treaty of Nice
• 2009: Treaty of Lisbon (TEU/TFEU)

5. Evolution of European Industrial
Relations
1950 1960 1970 1980 1990 2000
European Company Statute
EWCs
Coordination of bargaining
Macroeconomic Dialogue
Social Dialogue
Employment Strategy
European Integration
Art.48/119
• •
Standing Employment Committee
•Val Duchesse
•
1st EMF conference•
1st company agreement
• 1st draft

6. Community
method
EC
EPordinary / special legislative procedureCouncil

7. European
social dialogue
EMP
EC
TU“bargaining in the shadow of the law”

8. B. Diversity of national IR regimes

9. Definition of industrial relations
industrial relations (IR)
“the focal point of the field (…) is the employee-employer
relationship.” (US Social Science Research Council 1928)
 “(…) the consecrated euphemism for the permanent conflict, now
acute, now subdued, between capital and labour.”(Miliband,1969,
80, cited by Blyton/Turnbull, 2004, 9)
 “The central concern of IR is the collective regulation
(governance) of work and employment.” (Sisson 2010)

10. environment
political
legal
economic
societal
actors
employers
trade unions
governments
processes
collective
bargaining
participation
industrial
action
settlement of
disputes
outcomes
collective
agreements
labour
legislation
outputs > impacts > inputs
pay, WT, productivity,
employment, job security,
labour peace…
inputs outputs
System of Industrial Relations

11. Industrial relations regimes
• Liberal market vs. coordinated market economies
 Peter Hall and David A. Soskice, 2001,
Varieties of Capitalism: the institutional foundations
of comparative advantage,
Oxford University Press.

12. Liberal Market Economies
• UK
– corporate governance: outsider shareholder dominated;
performance represented by current earnings and share prices
– employee relations: short term, market relations between employee
and employer; top management has unilateral control of the firm
– industrial relations: employer organisations and unions relatively
weak; decentralised wage setting; insecure employment (“hire and
fire”; fluid labour markets)
– vocational training / education: vocational education offered on
market; labour force has high general skills
– inter-firm relations: market relations, competition; use of formal
contracting and subcontracting relationships.

13. Coordinated Market economies
• DE
– corporate governance: long-term bank-dominated insider systems;
cross-directorships; cross-shareholding;
– employee relations: long term, formalised participation of
employees; consensus decision-making with management
– industrial relations: trade unions and employers organised;
industry-wide collective bargaining and pay determination;
employment relatively secure
– vocational training: elaborate industry-based training schemes;
labour force has high industry-specific and firm-specific skills
– inter-firm relations: development of collaborative networks;
cooperation among firms in diffusing technologies

14. Industrial relations regimes
• 5 geographical clusters
 Visser, Jelle, 2008, in: EC, Industrial Relations in Europe Report, Brussels,
DG EMP.

15. IR regime
Centre–West
social partnership
North
nordic corporatism
West
liberal
pluralism
South
polarised
pluralism
Centre–East
transition economies
MS
Germany
Austria
Netherlands
Belgium
Luxembourg
Slovenia
Sweden
Denmark
Finland
United Kingdom
Ireland
Cyprus
Malta
Greece
Spain
Italy
France
Portugal
Bulgaria
Czech Republic
Estonia
Latvia
Lithuania
Hungary
Poland
Romania
Slovakia
role of SPs in
IR
institutionalised institutionalised rare/event-driven irregular/politicised irregular/politicised
role of State in
IR
‘shadow’of hierarchy limited non-intervention frequent intervention organiser of transition
employee
representation
dual unions unions variable unions
level of CB sector sector company sector/company company

16. 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

17. 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

18. 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

19. Collective bargaining coverage _ 2011 v 2012
EIRO/ETUI 2013/14
LT LV HU PL BG EE CZ SK UK RO IE DE CY LU EU HR DE MT GR DK ES IT NL PT SE FR FI SI BE AT
2011 15 17 23 25 33 33 34 35 37 38 44 49 52 54 56 60 61 61 65 65 68 80 84 90 90 90 90 96 96 100
2012 15 16 23 29 29 33 33 35 29 38 44 36 0 59 51 60 53 61 0 65 58 80 80 12 88 92 93 75 96 97
0
20
40
60
80
100
120
% of workforce 2011 2012

20. Average hourly labour costs (2012)
EIRO 2014
BG RO LV LT PL HU SK EE CZ PT GR SI CY EU UK ES IT IE DE AT FI NL SE FR LU BE DK
2012 3 4.4 5.3 5.8 7.4 7.5 8.3 8.4 11 12 15 15 18 20 20 21 28 29 30 31 31 32 33 34 35 37 38
0
5
10
15
20
25
30
35
40
45
EUR

21. Monthly minimum wage _ 2011 v 2012
EIRO 2013/14
BG RO LV LT CZ EE SK HU HR PL PT GR EU ES MT SI CY UK FR BE IE NL LU
2011 128 158 285 232 310 290 327 338 385 345 485 585 661 641 685 748 855 109014251415146114461757
2012 145 157 287 290 312 320 337 372 372 393 485 683 712 753 763 763 870 126414301443146114851874
0
200
400
600
800
1000
1200
1400
1600
1800
2000
EUR 2011 2012

22. Real labour productivty (2012)
EIRO 2014
EE SI LV LT PL CZ MT CY EU IT BE AT FI DE SE FR NL IE
2012 1.7 2.4 8.2 10.3 10.4 13.2 14.5 21.5 27 32.2 37.2 39.5 39.5 42.6 44.9 45.4 45.6 50.4
0
10
20
30
40
50
60
EUR per h worked

23. Number of working days lost _ 2013
EIRO 2014
BG CZ HU LT LU LV MT PL RO SK HR NO AT SE IE FI DE BE DK UK CY ES
2013 0 0 0 0 0 0 0 0 0 0 2 3 3 9 15 26 150 174 379 444 605 1099
0
200
400
600
800
1000
1200
in 1000 days

24. Cross-sector social partners in the EU
• 108 trade unions
• 134 employers associations

25. Cross-sector social partners in the EU
EIRO 2014
1 1 2 3 3 2 3 3 3 2 2 3 3 4 5
3 3 3 4 4 4 4
7 6 7 6 5
12
2 3
3 2 2 4 3 3 3 5 5 4 4 3 2 5 5 5 4 5 5 6
4 6 5 7
14
15
0
5
10
15
20
25
30
LV
IE
AT
CY
SK
CZ
LT
MT
NL
BG
EE
PL
PT
GR
HR
DE
FI
LU
UK
BE
DK
SE
SI
FR
ES
HU
RO
IT
TU EO

26. C. Europeanisation of IR regimes?

27. Val Duchesse

28. Intersectoral
social dialogue
Sectoral social
dialogue
EWCs
IFAs_EFAs
SEs
Cross industry Sectoral Company
national social dialogue
European Industrial Relations- level linkages

29. Definitions of SD
• articles 152, 154 and 155 TFEU
• developed in EC communications and decisions
• discussions, consultations, negotiations and
joint actions undertaken by the social partner
(SP) organisations
• representing the two sides of industry (employers
and trade unions)

30. Forms of ESD
• bipartite
autonomous dialogue between employers and trade
unions
e.g. Social Dialogue Committee (SDC)
• tripartite
tripartite SD involves the EU (EC, and where appropriate,
Council and European Council) as well as the SP
e.g. Tripartite Social Summit (TSS)  art. 152 TFEU

31. Forms of ESD
bipartite dialogue
employers – trade unions
tripartite
concertation
public authorities
(EC, Council)
+ trade unions + employers
e.g. TSS
European Social Dialogue
sectoral
covering workers + employers
of 43 specific sectors
= 75% of the workforce /
+ 150 mio. workers
cross-industry
covering the economy
as a whole
workers + employers

32. Fora of ESD
• Social Dialogue Committee (SDC)
main body for bipartite SD
meets 3-4 times/year to discuss social topics
consists of max. 66 representatives - equally divided
between employers and trade unions
can set up technical working groups
adopts and follows up the results of negotiations
between employers and trade unions
takes part in social dialogue summits

33. Fora of ESD
• Tripartite Social Summit (TSS)
 main political forum for consultation of the SP given its high-
ranking composition (presidential level) and proximity to the
European Council decision-making process
 twice a year (March/October European Councils)
 debate on economic and social policies
• Macroeconomic Dialogue (MED)
 high-level forum (ministerial level) for the exchange of views
between the Council, EC, ECB and SP
 created by the 1999 Cologne European Council to contribute to the
growth and stability goals of the macroeconomic framework

34. cross-sector level

35. cross - industry
Employers
- BUSINESSEUROPE
- European Centre of Employers and Enterprises
providing Public Services (CEEP)
- European Association of Craft, Small and Medium-Sized
Enterprises (UEAPME)
Trade Unions
- European Trade Union Confederation (ETUC)
- CEC-European Managers
- EUROCADRES (Council of European Professional and
Managerial Staff)

36. environment
political
legal
economic
societal
actors
BUSINESSEUROPE
UEAPME
CEEP
ETUC
--------------------------
EU institutions
processes
ESD under
EU law
154/155 TFEU
outcomes
framework
agreements
EU labour
law
& other texts
implementation
a) Council decision
b) nat. procedures + practices
specific to SP and MS
inputs outputs

37. ESD under articles 154/155 TFEU
proposal in the
social policy field
where appropriate,
EC follow-up
where appropriate,
EC follow-up
EC art. 155art. 154
1. consultation on the
direction
opinion
2. consultation on the
content
opinion
failure
if EU action
is desirable
negotiation
nine months,
unless extended
agreement
social partners

38. Agreement implementation
autonomous route
according to procedures and
practices specific to management
and labour and the MS
legislative route
1. submitted to the EC
2. EC makes proposal
3. EP informed
4. Council decision
= extension erga omnes

39. Outcomes of the European cross-industry SD
Agreements implemented by Council
decision
[implementation by MS / monitoring by
the EC]
1. Framework agreement on parental
leave (1995)
2. Framework agreement on part-time
work (1997)
3. Framework agreement on fixed-term
work (1999)
4. Revised framework agreement on
parental leave (2009)
Autonomous agreements implemented
by procedures and practices specific to
management and labour and the MS
[implementation and monitoring by the
SP]
1. Framework agreement on telework
(2002)
2. Framework agreement on work-
related stress (2004)
3. Framework agreement on harassment
and violence at work (2007)
4. Framework agreement on active
inclusion (2010)

40. • is a form of (…)
work, using IT, in the context of an employment
contract/relationship, where work, which could also
be performed at the employers premises, is carried
out away from those premises on a regular basis.”
(art.2)
Autonomous agreement:
telework (2002)

41. heteronomousautonomous
soft law
hard law
FI, SE
NL LV, IE , UK
AT, DE, DK, EL, ES, IT
BE, FR, LU
CZ, HU, SKPL PT, SI
tripartite processbipartite process social partner
consultation
legislation without
SP consultation
code of
practice/
guidance
collective
agreement
legislation
extension
of CA
voluntary
agreement
Telework agreement: implementation

42. Failures of the European Social Dialogue
Failures resulting in legislation
1. European Works Councils
2. Reversal of burden of proof
3. Information and consultation
4. Temporary agency work
e.g. revision of working time
directive
Failures of the ESD and of
legislation

43. sectoral level

44. Sectoral Social Partners:
15 European Industry Federations (e.g.)
• EFBWW European Federation of Building and
Woodworkers
• ECF European Federation of Food Workers
• EFFAT European Federation of Food, Agriculture and
Tourism Trade Unions
• EPSU European Federation of Public Service Unions
• FST Federation of Transport Workers
• ETUCE European Committee for Education
• UNI-Europa Union Network International
• EEA European Alliance of Media and Entertainment
• EFJ European Federation of Journalists
• IndustriALL ETUF-TCL + EMCEF + EMF

45. Sectoral Social Partners:
65 employers’ organizations (e.g.)
• CEEMET Council of European Employers of the
Metal, Engineering and Technology-
Based Industries
• ECSA European Community Shipowners’
Association
• Eurociett European Organisation of CIETT
(International Confederation of
Private Employment Agencies)
• FERCO Federation of Contract Catering
Organisations
• HOSPEEM European Hospital and Healthcare
Employers Association an
• ……………

46. 43 Sectoral Social Dialogue
Committees
- Agriculture
- Audiovisual
- Banking
- Catering
- Central Admin
- Chemical
industry
- Civil aviation
- Cleaning
Industry
- Commerce
- Construction
- Education
- Electricity
- Extractive
Industries
- Food and Drink
- Football
- Footwear
- Furniture
- Gas
- Graphical sector
- Horeca
- Hospitals
- Inland Waterways
- Insurance
- Local and regional
Government
- Live performance
- Maritime Transport
- Metal
- Paper
- Personal services
- Ports
- Postal services
- Private security
- Railways
- Road transport
- Sea fisheries
- Shipbuilding
- Steel
- Sugar
- Tanning and leather
- Telecommunications
- Temporary agency work
- Textile and clothing
- Woodworking

47. sectoral: 15 industry federations (e.g.)
• EAEA European Arts and Entertainment Alliance
• ECA European Cockpit Association
• EFBWW European Federation of Building and
Woodworkers
• EFFAT European Federation of Food, Agriculture and
Tourism Trade Unions
• EFJ European Federation of Journalists
• EPSU European Federation of Public Service Unions
• ETF Federation of Transport Workers
• ETUCE European Committee for Education
• FIFPro International Federation of Professional
Footballers' Associations – Division Europe
• industriALL European TU (ETUF-TCL + EMCEF + EMF)
• UNI-Europa Union Network International
…

48. sectoral: 65 employers organisations (e.g.)
• CEEMET Council of European Employers of the
Metal, Engineering and Technology-
Based Industries
• Coiffure EU European Association of Employers'
Organisations in Hairdressing
• EBU European Broadcasting Union
• Eurociett European Confederation of Private
Employment Agencies
• FERCO Federation of Contract Catering
Organisations
• FoodDrinkEurope Europe's Food and Drink Industry
• HOSPEEM European Hospital and Healthcare
Employers Association

49. Categories of texts

50. Outcomes by type of text (03/2015)
457
115
84
47
43
36
12 18 10 9 8 joint opinions
declarations
tools
procedural texts
follow-up reports
guidelines
autonomous agreements
policy orientation
codes of conduct
frameworks of action
agreements > Council decision

51. Outcomes by theme (03/2015)
176
90
86
8662
62
59
32
27
24
20
20
16
14 13
12 10
9 7 7 4 3 economic & sectoral policies
social dialogue
health and safety
training & life long learning
employment
social aspects of EU policies
working conditions
corporate social responsibility
gender equality
sustainable development
mobility
working time
enlargement
restructuring
public procurement
harassment
ageing workforce
undeclared work
telework
young people
racism
disability

52. Outcomes by addressee (03/2015)
488
162
153
36
EU institutions / national
authorities
national organisations
EU social partners
companies

53. Agreements: Council decision
sectoral / cross sector
1. Agreement on fishing 2012
2. Health & safety in hairdressing 2012
3. Working time (WT) inland waterways 2012
4. Prevention from sharp injuries 2009
5. Parental leave (revised.) 2009
6. Maritime Labour Convention 2008
7. Working conditions of mobile railway workers 2004
8. WT mobile staff aviation 2000
9. Fixed-term work 1999
10. WT seafarers 1998
11. Part-time work 1997
12. Parental leave 1995

54. Autonomous agreements
multi / sectoral / cross sector
1. Minimum contract requirements in football 2012
2. Inclusive labour markets 2010
3. Certificate for hairdressers 2009
4. Combatting violence & harassment 2007
5. Good handling of crystalline silica 2006
6. Combatting stress 2004
7. Driving license railways cross-border services 2004
8. Telework 2002

55. Failures of the ESD
1. European Works Councils
2. Reversal of burden of proof
3. Information and consultation
4. Temporary agency work
5. Revision of the WT directive

56. company level
• European Works Council
• European Company Statute
• International/European Framework Agreements

57. European Works Councils
• EWC directive (94/45/EC recast 2009/38/EC)
• 2204 companies covered
 1000 employees
 150 in 2 Member States
• 1056 active EWCs in 2014
 8 HQs in IE: Aer Lingus, Ardagh, Board Mona, CHR, Glen Dimplex,
James Hardie, Kerry Group, Smurfit Kappa
 58 EWCs > IE chosen as country of law applicable
• process must be triggered
 at least 100 employees in at least 2 Member States (written request)
• 60 % of workforce / 14.5 million covered

58. MS with active EWCs in 2013
EIRO 2014
CY CZ GR PT HU LU ES AT DK IE FI IT EU SE NL BE FR DE
2013 1 1 1 1 3 17 18 34 41 58 62 82 85 111 119 181 263 372
0
50
100
150
200
250
300
350
400
%

59. European company statute
• European Company Statute (EC 2157/2001)
 involvement of employees (2001/86/EC)
 SE works councils
• over 2239 SEs registered in 2014
 10 in IE > 2 with more than 5 employees
 e.g. Aviva, Atrium, Axis RE, Axon Neuroscience, Carthago Invest, Paypal
 289 normal SEs
= activities + 6 employees (Allianz, Porsche, Strabag)
 more than 309 empty/micro SEs
= activities + less 5 employees
 1562 UFO SEs
> little information

60. International / European
framework agreements
• IFA
company agreement signed by a MNC and a Global
Union Federation (GUF)
• EFA
company agreement signed by a MNC and a
European Industry Federation (EIF) and/or a EWC

61. International Framework Agreements in 10/08
0
2
4
6
8
10
12
14
16
18
JP
CA
AU
NZ
RSA
RU
GB
CZ
PT
BE
DK
NO
LU
IT
ES
SE
NL
FR
DE

62. EFA _incidence
• 73 EFAs
• 52 co-signed by and EWC
• 42 signed by an EWC only
• leader: France with 26 EFAs in 14 companies
Suez 5, Air France 4, Vivendi 3,

63. Content of EFAs
0 5 10 15 20 25
CSR
Training
Equal opportunities
Sub-contracting
Financial participation
Fundamental rights
Other
Data protection
HRM+ Social Management
H&S
Social dialogue
Restructuring

64. D. Impact of the crisis on IR
regimes

65. 1. Actors u n d e r p r e s s u r e
2. Processes u n d e r p r e s s u r e
3. Outcomes u n d e r p r e s s u r e
4. Conclusions
5. Epiloque and discussion
Table of content

66. Actors
Impact Member State
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)

67. Actors
Impact MS
decreasing influence 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

68. Processes
PROCESSES -
SUMMARY
Type of 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

69. 2008 2011
Austria MEB MEB
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

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

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

72. Trade Union density rates 2013 in %

73. Collective bargaining coverage
2002 - 2013

74. • 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

75. 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

76. • 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

77. 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

78.  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

79. Outcomes
Impact MS
inconclusive outcomes 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

80. No. of CAs
EIRO 2014
AT BE BG CY CZ DE DK EE EL1 EL2 ES FR IT LT LU LV MT NL PL PT RO SE SK UK

81. 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 +/_15
coverage /
in 1000
pers.
1,895 1,397 1,407 1,237 328 243 246
No. of CAs in PT

82. • change has been 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
Conclusions

83. • impact of the ‘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
Conclusions

84. E. Discussion

85. • “By viewing labour 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)
Discussion > labour = commodity?

86. • Clayton Anti-Trust Act (1914: section 6)
• 'that the labor of a human being is not a commodity or article
of commerce'.
 Samuel Gompers – leader of the American Federation of Labour for
20 years was inspired by Ingram
Discussion

87. • Treaty of Versailles (1919: article 427)
 first principle of the new ILO pro- claimed ‘ that labour should not
be regarded merely as a commodity or article of commerce
 introduced by British delegation
 Gompers > personal defeat
• ILO DECLARATION OF PHILADELPHIA (10 May 1944)
 labour is not a commodity
Discussion

88. •  towards a re-commodification of labour ?
• Labour is not a commodity > clause is not in the EU Treaties
• yet  Albany case (1996)
• Albany used the competition rules in article 81(1) EC (now
article 101(1) TFEU) claiming that mandatory pension
scheme compromised their competitiveness
•
Discussion

89. • ECJ
• “ social policy objectives pursued by CAs would be seriously
undermined if management and labour were subject to
Article 85(1) “
• Advocate General Jacobs
• “ CAs enjoy automatic immunity from antitrust scrutiny”
• Art. 153 (5) TFEU
• The provisions of this Article shall not apply to pay, the right of
association, the right to strike or the right to impose lock-outs.
Discussion

90. Discussion: crisis > WSM and IR regimes
FI
CYIE
MT
FR AT
BG
DK SE UK
PTEL ES
SI
BE
DE
LU NL
RO
EE
SK
PLLVLT
HU
0
1
2
3
4
Industrial relations systems
Severityofimpact
Nordic Central EastCentral WestMediterranean/
South
Anglo-Saxon
Western
CZ
IT HR

91. 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 crisis-induced trend
Reforms in wage-setting mechanisms crisis-induced trend
More adversarial industrial relations crisis-induced trend
Discussion: crisis vs. megatrends

92. Current challenges

93. • http://www.eurofound.europa.eu
• christian.welz@eurofound.europa.eu
• European industrial relations dictionary
Further information

94. thank you!