Organizing & CB Coverage (2004, in percent)

1. Organizing & CB Coverage (2004, in percent) • Sweden - 81 - 93 • Finland - 76 - 93 • Denmark - 74 - 83 • Belgium - 56 - 93 • Norway - 54 - 73 • Austria - 37 - 98 • Italy - 35 - 83 • Spain - 15 - 83 • France - 10 - 93 • US - 13 - 14 Source: SAK, quoting OECD Employment Outlook, July 2004, 30/11/2006

2. Organizing & CB Coverage in OECD Countries (2004, in percent) • UK - 31 - 33 • Germany - 25 - 68 • Portugal - 24 - 83 • Netherlands 23 - 83 • Japan - 22 - 18 • Switzerland 18 - 43 • Spain - 15 - 83 • US - 13 - 14 • France - 10 - 93 Source: SAK, quoting OECD Employment Outlook, July 2004, 30/11/2006

3. Sweden - the country with lowest days lost due to industrial conflict. • Freedom of Association & Right to collective bargaining - 8 out 10 workers in unions, 6 out 10 employers in the employers’ organizations • Right to blockade, sympathy strikes (can cut electricity to the workplace, can refuse to supply services, material to an employer who refuses to negotiate in good faith – to prevent social dumping & unfair competition – principle: basic rules must be same for all occupations & work places) • Union strike fund (sufficient to fund 3-4 months strike for every worker in Sweden) - last strike was in 1980

4. Finland – IR system • 3 national unions (SAK, STTK, AKAVA) & 4 national employer organizations • Organizing & CB Coverage high: 76 – 93 • National Incomes Policy Agreement & industry wide agreements – legally binding • Jointly administer pension funds • Labour legislation jointly drafted • Ex. wage tax reduction & wealth tax abolishment agreed to at the same time as new wage agreement

5. Finland – IR system • Applicability of CBAs – CBA signed with industrial employers organization applies also to non-member employers in the same industry • CBAs terms & conditions apply also to temporary workers, agency & contract workers working in the industry where CBA exists • Failure to implement the CBA entails penalties both on the violating party and its organization – both unions and employers organizations have the responsibility to ensure CBA is respected

6. Germany • Social market economy – have as much ‘market’ as possible & have as much ‘govt intervention’ as necessary – different from Anglo-Saxon model (US, UK) • Social security system set up under law but financed 50-50 by W & E (not by tax payer) – State guarantees the system (makes up the short fall) – contributions work out to about 40% of the wage bill • Any one employed for over €400, will have an employment contract & has to be covered for social security (otherwise it is an illegal employment)

7. Germany • FoA (Art 9, German Constitution) & Right to collective bargaining exists – but no trade union law in Germany • Employers & employees regulate their business between themselves without interference from the govt either in union formation or in CB process – the system functions because – strong unions-strong employers – both parties ensure implementation of what is agreed • Germans tend to go for consensus rather than conflict & therefore CB plays a major role - agreement applicable to all, even non-members

8. Germany • Unified trade union movement – one DGB on top and (now) 6 industry-wide unions with about 8 million members - membership fee: 1% of the gross income p.m. of the employee, out of which 12.5% goes to DGB • CB – industry-wide – between union & industry association – can be nationwide or area wise – 2 types of agreements: wage & agreement on social aspects of work (working conditions, time, etc) - strike only for one reason – failure of wage negotiations • No minimum wage law in Germany; CB on wages defines minimum wages in that industry • FoA & CB are not only rights but also obligation of German labour & employer organizations.