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Impact of the Crisis on Wages and Collective Bargaining across Europe

Impact of the Crisis on Wages and Collective Bargaining across Europe. ETUI Conference: Getting Europe back to work – alternatives to austerity Brussels, 06 November 2013 Dr. Torsten Müller / Dr. Magdalena Bernaciak European Trade Union Institute - ETUI. Structure of presentation.

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Impact of the Crisis on Wages and Collective Bargaining across Europe

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  1. Impact of the Crisis on Wages and Collective Bargaining across Europe ETUI Conference: Getting Europe back to work – alternatives to austerity Brussels, 06 November 2013 Dr. Torsten Müller / Dr. Magdalena Bernaciak European Trade Union Institute - ETUI

  2. Structure of presentation • Role of wages in EU reform policy • Overview of quantitative wage developments • Overview of qualitative changes in collective bargaining structures and procedures ETUI – Getting Europe back to Work; 06 November 2013

  3. Wages as a key adjustment variable Starting point: debt and cost competitiveness crisis Remedy: Austerity policy and structural reforms 1.) Pay freezes and cuts in order to reduce public expenditure and consolidate state budgets 2.) Increasing downward flexibility of wages in order to reduce labour costs (“internal devaluation”) and improve (cost) competitiveness ETUI – Getting Europe back to Work; 06 November 2013

  4. Forms of political intervention into collective bargaining • New European System of Economic Governance: European Semester and its Country-Specific Recommendations • Memorandum of Understanding and Stand-by Arrangements signed with “Troika” or IMF/EU • ECB intervention on sovereign bonds secondary markets ETUI – Getting Europe back to Work; 06 November 2013

  5. New European Wage Policy Interventionism (2011 – 2013) ETUI – Getting Europe back to Work; 06 November 2013

  6. Wage Cuts and Freezes in Public Sector ETUI – Getting Europe back to Work; 06 November 2013

  7. Wage developments in public administration Source: DG Employment: Industrial Relations in Europe 2012, p.140 ETUI – Getting Europe back to Work; 06 November 2013

  8. Development of real minimum wages during the crisis ETUI – Getting Europe back to Work; 06 November 2013

  9. Development of real wages in the EU 2010 – 2013 (%)*

  10. Decentralization of collective bargaining systems in EU countries under EU, ECB and/or IMF surveillance

  11. Individualisation of industrial relations Source: country reports and EIRO database. Note: Data for Spain and Portugal for 2008-2012, for Estonia and Latvia for 2007-2011. ETUI – Getting Europe back to Work; 06 November 2013

  12. Conclusions • General trend towards deregulation already before the downturn BUT • Crisis brings in a new tool: political intervention to CB outcomes and processes => abrupt de-collectivisation and de-centralisation in “problem countries”; downward pressures on wages across the EU • Continental “core” vs. southern and eastern “peripheries” • Alternatives to wage competition? ETUI – Getting Europe back to Work; 06 November 2013

  13. Impact of the crisis on wages and CB across Europe Thank you very much for your attention!!! Dr. Torsten Müller Dr. Magdalena Bernaciak European Trade Union Institute Bld. du Roi Albert II, 5 1210 Brussels tmueller@etui.org mbernaciak@etui.org ETUI – Getting Europe back to Work; 06 November 2013

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