ETUC and European Framework Agreements (EFAs)

1. ETUC and European Framework Agreements (EFAs) Wolfgang Kowalsky

2. Relevance • By early 2012, 224 transnational company agreements were recorded in 144 companies, mostly with headquarters in Europe, covering over 10 million employees • 85% of such TCAs are European

3. Recent developments • Opportunities and difficulties • EFAs should enhance national collective bargaining practices • Disseminate positive bargaining results

4. ETUC Discussion Note “More and Better European Company Framework Agreements: Enhancing Trade Unions in Transnational Negotiations with Transnational Companies” (ETUC Executive Committee, 5-6/06/2012)

5. Europ. Commission on 10/09/12 • European Commission issued the Staff Working Document “Transnational company agreements: realising the potential of social dialogue” • Emerging factor in EU social dialogue

6. EC launches a public consultation aimed at collecting the opinions of relevant stakeholders (until 31/12/2012) • 9 key questions concerning the general scope and amplitude of a European policy (scope, actors, legitimacy, transparency, implementation, legal effects, dispute resolution..) • proposes conclusions and options for further initiatives (for example through guidelines)

7. ETUC response for Executive Committee • Draft aimed at defining the ETUC position, in order to provide a joint response to the European Commission’s consultation on transnational negotiations with multinational companies

8. ETUC: EFAs can have positive effects • EFAs can promote the upward harmonisation of working conditions throughout the operations(TNC) of the same transnational company in different countries • They can provide innovative routes for anticipating change in transnationalcompanies

9. EFAs • In cross-border restructuring processes, EFAs are an instrument for building cross-border solidarity, facilitating mediation of interests • support and enhance social dialogue in countries where industrial relationsare underdeveloped

10. ETUC • The ETUC looks positively on the establishing of an enabling environment for EFAs as they have been shown to ‘have greater capacity to attain their initial objectives’ and they ‘may refer to a more homogenous set of rules and traditions’

11. ETUC agrees that TCAs should be supported and further developed according to the proposals advanced by the social partners • Many ETUFs have established procedures in which transnational negotiations should take place

12. ETUFs’ procedures provide concrete answers Clarifying: • defining actors entitled to carry on negotiations and sign the agreements • how to get the mandate to negotiate and set up delegations • best form of the agreements, in order to ensure the implementation

13. ETUFs’ procedures • provisions aimed at preventing legal disputes, also through monitoring systems, dispute resolution, penalties • Non regression clauses • proper paths for promoting the transparency and dissemination of information

14. Draft position • While preserving the autonomy of the social partners in establishing the rules of the game, an optional framework of rules for transnational negotiation with multinational companies may still be needed to provide references for those who wish to be engaged in EFAs

15. Draft position for the ETUC Exec Cttee 17-18/10/2012 • “The ETUC looks favourably on the adoption of an optional frame of rules for EFAs and largely agrees with the possible contents of such a framework, as described in Staff Working Document.”

16. What‘s next? • We are aware that the most representative employers’ associations at European level have a negative attitude towards getting engaged in such an exercise

17. but the ETUC is confident that a different opinion may emerge from many of the multinational companies operating in Europe and from the sectoral employers’ organizations, notably in the context of the sectoral social dialogue. • THANK YOU!