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Social dialogue and collective bargaining at national branch level from employers’ point of view – Belgian exampleHigh level European Social dialogue conference : Social dialogue in metal Industry in new member states and candidate countries – The way forward ITC – ILO – EMF6 November 2008 - Zagreb
Social dialogue and collective bargaining at national branch level from employers’ point of view – Belgian example 1. An overview of the Belgian economy 2. Who is Agoria 3. Social dialogue in Belgium 4. Why Belgian employers opt for sectoral social bargaining
Belgium is mainly a service economy but exports still depend on industry
High labour costs Hourly compensation cost in manufacturing industry for blue and white collars (Belgium = 100; IDW september 2008)
High taxation on labour and high social security contribution Tax wedge in % of total labour cost for different family types,(OECD-Taxing wages 2006/2007)
Distribution of income and spending on social protection * % of population with a disposable income below 60 % of the national median ** transfers in cash or in kind to households and individuals, administration costs and miscellaneous costs (Source: Eurostat - Structural indicators - Population and living conditions)
Branch organisation • Agoria is the branch employers’ organisation for the metal and technology based industry • Agoria’s mission is to make every effort to serve its members, bringing all its influence to bear to improve the social and economic environment in which theyoperate
Key figures • Members 1600 companies 80 % SME 900 subsidiairies abroad • Collaborators 230 • Employment 300,000 people 12% private employment Belgium • Turnover EUR 82 billion • Added value 10% of the private sector’s added value • Export 74% (export rate) 1/3 of Belgian exports
13 sectors • aerospace (Asco) • automotive(Ford) • construction products(Daikin) • contracting & maintenance(Fabricom GTI) • electrical engineering(Schneider Electric) • ICT(IBM Belgium) • industrial automation(Siemens) • mechatronical engineering (Caterpillar) • metal processing (Crown Packaging) • metals & materials (Bekaert) • mounting & cranes(Sarens) • plastics & composites (Samsonite) • security & defence(FN Herstal)
VOKA BECI UWE Influential in Belgium and Europe Agoria Flanders Agoria Brussels Agoria Wallonia Sectoral committees (Orgalime – CEEMET – EITCA - etc.) Agoria Sectoral FEB/VBO BUSINESSEUROPE Interprofessional Regions Federal Europe
Services • lobbying actions (at the regional, federal and European levels) • individual and collective services • networking
Domains of activity • human resources • knowledge and innovation • energy and environment • business development • sectoral regulations • horizontal domains • economics • legal affaires • fiscal matters • interprofessional topics • member benefits
Activities in social matters • Domains • Social policies • Social regulations • Industrial relations • Salaries and working conditions • Well-being at work • Products • Individual services • Collective actions • Lobbying • Networking • Team of 30 persons in Brussels and regional offices
Activities in social matters • Individual services • information: e.g. modelcontracts, regulations, support measures • advice: personalised answers • support and assistance: e.g. reconciliation in case of social conflicts, restructuration, dispute with public authorities, etc.
Activities in social matters • Collective actions • information and collective assistance: e.g. salary survey, database, seminars, information sessions, etc. • sectoral collective bargaining: e.g. sectoral agreements, follow-up and co-management of common initiatives (ex. sectoral pensionfund) • common initiatives of general interest: e.g. tackle unfair competition, working time organisation, policy for homeworking
Activities in social matters • Lobbying • understand, represent and defend the points of view and expectations of members • exercise influence on social policy and regulations • directly (e.g. office of the Labour Ministry, management committee of the NOSS, press) or indirectly (e.g. Federation of Enterprises in Belgium) • generic (e.g. end of career) or specific (e.g. reduction of expenses for shift work) themes
Activities in social matters • Networking • sharing information, experiences and ideas among members • think tank for specific themes • social e-forum • contacts with the players in the social domain
Some characteristics • Base of the socio-economic collective bargaining system = social pact of 1948 – socially corrected market economy • Trade unions • 3 representative trade unions • High rate of unionisation : 58 % (90 % of blue-colors – 45 % of white-colors) • 3.200.000 members : 70 % active – 30 % non-active • Socialist, christian, liberal • LAT relation with political parties
Some characteristics • Institutionalisation of the social dialogue at different levels of the socio-economic life • Companies : works council, committee for prevention, TU delegation • Branch level : joint committees • Socio-economic policy : group of 10 • Economical : National Bank of Belgium, Central Economic Council, … • Social : National Labour Council, management committee of the social security institutions
Some characteristics • Industrial action • The right to strike is recognises but… • …. must in principle be exercised according to certain rules • Respecting social peace : if there is an agreement, there cannot be any new or additional demands on the agreed issues for the duration of this agreement • Respecting procedures to handle conflicts : various steps in cascade, the last is the mediation with an intermediate government official; only if there is no solution, possibility to notify strike with a notice period of 7 days • … but in the event of a strike, the conflict procedure is hardly ever respected (strike = mostly wild strike) • Enforceability of social peace and conflict procedures is very limited : • Deductions on contributions for employee training in the event of irregular strikes • Daily fine via courts in case of acts of violence (picketing, damages, violence, …)
Some characteristics • Strikes in figures • Evolution of strikes of blue collar workers at the MET
Some characteristics • International comparison
Organisation FGTB "groupe of 10" Fed. of Belg. Industries + CSC National Labour Council Middle Classes org. + CGSLB Central Economic Council Agricultural org. Social & Economic (semi-) public bodies Inter-sectoral Branch Branch O E ………… Trade Joint Committee AGORIA (including conciliation) ………… Unions Branch Works Council Workers’ Representation Committee for Prevention Employer and Protection at work Trade Union Delegation Company
National multi-sectoral agreement • Concluded for a period of 2 years • National consensus • Fixes a framework for the sectoral negotiations that follow • Fixes a framework for the social policy • Avoids the intervention of the government
Social dialogue in metal industry • How ? • Joint committee • Joint funds • Permanent contacts (formal, informal) • What ? • Collective bargaining • Settlement of industrial disputes • Sectoral working conditions • Agreement / social peace • Joint funds (social security, retirement, education and employment, …) • Defend sectoral interests
Why Belgian employers opt for sectoral social bargaining • Employers did not invent unions, but are partially responsible for them. • Belgium has a tradition of uniting people with the same goals, interests, ideas or ideology, interests (i.e. Medieval guilds, service clubs, hobby clubs, youth associations, underground resistance, etc.)
Why Belgian employers opt for sectoral social bargaining • Social bargaining is almost a natural given • There is social bargaining even in the most elementary form, namely information, questions, expectations regarding wages, labour conditions, working conditions, the company, etc., and there is a need for it. • The smaller the group, the more individualistic it is. The bigger the group, the more collective it is. • However, there is a tendency towards individualisation. There is clearly a need to make room for individual expectations within collective bargaining. • Collective: basic expectations (i.e. minimum wage) • Individual: additional expectations (i.e. individual wage determination)
Why Belgian employers opt for sectoral social bargaining • Why employers opt for collective bargaining, more specifically sectoral collective bargaining • Structuring A collective agreement is much more workable, clearer and easier to organise than a collection of 100 individual agreements. • Stability Making agreements knowing where we stand tomorrow not getting the same questions (employer) whether the risk that the rules have again changed (employee). Need for social peace and therefore limiting the risk of conflict. • Market control Avoid competition and higher bidding between companies.
Why Belgian employers opt for sectoral social bargaining • Conditions for sectorial social bargaining • Strong unions This means unions with responsibility and authority (≠ power). Weak unions (just a mouth piece, megaphone unions or postal unions) are useless to employers. No unions at all can be even worse: no structure, free cells, etc. • An agreement stands Social peace: what is agreed to is complied with and no new or additional questions are asked during the period for which the agreement is made. • Respecting procedures for handling conflicts, (conflicts cannot always be avoided) • Good training of bargaining partners (economic, social, regulations, etc.) • No hidden agenda (personal self-interest, protection, etc.)
Why Belgian employers opt for sectoral social bargaining • Why not leave everything up to the government? Not a 100% answer - a few elements of the answer: • Social bargaining is quite present and manifests itself in one form or another, making it unavoidable. • Public respectability of decisions. With social bargaining, this is in principle the maximum, as they are represented, consulted and involved. With politics this is less the case. However respectability of social bargaining is becoming critical (individualisation, wave of action at the beginning of 2008, etc.) • Why have employers’ organisations? • Tradition of associations • Historical: counterpart of unions • Now: services, lobby, networking