Collective Bargaining and the Management of the Crisis Ralf Goetz

1. Collective Bargaining and the Management of the Crisis Ralf Goetz European Metalworkers’ Federation, EMFFédération Européenne des Métallurgistes, FEMEuropäischer Metallgewerkschaftsbund, EMBCollective Bargaining Summer College 13.-16. Sept 2009

2. Introduction: Ralf Goetz Examples of National Practices 1. Sweden: Kennet Morin (IF Metall) 2. France: Blandine Landas (FGMM-CFDT) Boris Plazzi (FTM-CGT) 3. Germany: Uwe Fink (IG Metall) 4. Italy: Sabina Petrucci (FIOM-CGIL) Barbara Pettine (FIOM-CGIL) 5. Czech Republic: Jaroslav Soucek (OS KOVO) Lucie Studnicna (OS KOVO) Overview: CB and the Crisis

3. EMF Policy I Crisis: Background EMF Policy II Instruments Second common demand Future Perspectives Questions Facing and Fighting the Crisis

4. Collective Bargaining: Towards more Coordination Coordination of National Collective Bargaining Policies (Minimum Standards) Regional Network of Observers Information Exchange Network (Eucob@n)

5. Working Time Charter Common Demand: 35 hours/week Maximum 1750 Hours/year Maximum 100 hours Paid Overtime Flexibility must be negotiated Coordination of national collective bargaining policies

6. Wage coordination rule prevent wage dumping and a downward spiral in undercutting working conditions maintain Purchasing Power + balanced share of productivity gains Productivity Increase can be used for Qualitative Aspects Coordination of national collective bargaining policies

7. Vocational Training Charter Individual Right for every Employee Annual Plan Approved by Workers and Employees’ Reps Costs Supported by Employers Social Charter Minimum guidelines on (early) retirement Minimum guidelines on career interruptions Minimum guidelines on sickness benefit systems Other CB guidelines 1

8. Financial participation / flexible pay systems Respect for voluntary nature Financial participation wages Trade union involvement and control mechanism Precarious employment Opposed to unsecure employment contracts/conditions Need to provide job security, social security, … Equal opportunities (in and outside companies) Other CB guidelines 2

9. The Individual Right to Training guaranteed by collective agreements Important step in coordination strategy > ex ante in stead of ex post coordination Important new signal to employers: continue to coordinate our collective bargaining Flexible choice list for implementation > integrating national systems and conditions Campaign running during 4 year period Road maps for implementation First EMF Common Demand

10. Financial Crisis turned into an economic crisis. GDP within the Euro Area is expected to drop by 4% in 2009. This crisis happens globally - most severe economic downturn since 1929. This is a systematic problem. State Intervention and help and stimulus packages were all of a sudden available at a large scale. International management of the crisis lacks coordination. The Crisis – some backgrounds

11. An active wage policy with the objective of a strong increase in real wages and income support Secure Employment Strengthening the European coordination of collective bargaining Strengthening European cooperation at company level Stabilizing lowest incomes by minimum wages A redistribution of income from the top to the bottom is the best programme of economic revival in the current situation. EMF CB Policy in the Crisis

12. Two Sorts of Instruments can be found: Gaining-Time-Instruments Stimulus-Instruments These CB Instruments are used in a policy mix. The individual legal and political background strongly determines the choice of instruments by the unions. Collective Bargaining at company and national / branch level varies within unions and countries. Some instruments are rather shortime with a limited range. Other instruments aim for fundamental changes in labour relations: Crisis is always also a chance. Used Instruments I

13. Working Time Working Time Reduction Overtime cancellation Flextime accounts Short time work & Temporary layoffs Wage Wage Increase and wage decrease Minimum Wages Training Training and apprenticeship Qualification in the crisis Used Instruments II

14. Social Security Collective agreement of securing employment, dismissal of layoffs Early retirement Unemployment benefits Other Insourcing Increased participation rights Company shares for employees Promoting employment for young people Industrial, Financial and Social Policy Used Instruments III

15. FOR MORE SECURE EMPLOYMENT, AGAINST PRECARIOUS WORK: Erosion of what is classified as the 'norm', 'standard' or 'typical' forms of employment. First victims of the system and of the current economic crisis . Most vulnerable groups are young and migrant workers and, above all, women. At the onset of economic recovery, precarious jobs will be amongst the first to be offered again, with worse conditions. Second Common Demand

16. European Framework Agreements EMF Counterpart More Common demands Architecture of Collective Bargaining at European Level Anticipating changes in collective bargaining structures = importance of company level bargaining Collective Bargaining:Future Perspectives

17. The following questions are our leading questions for the discussion and should help you with your country reports: Which effects did the crisis have upon the metal industries in your country? (e.g. unemployment, production ….) Which impact does the crisis have upon collective bargaining? Which instruments do you use in your country to come through the crisis? Is working time an issue in the current debate? Examples and questions