Eckhard Voss EMF seminar for staff reponsible 2008 Rüdesheim, 25 October 2008

1. Future of EuropeanTrade Unionism Development trends and challengesin European trade union policyand their implication for HR resources strategies Eckhard Voss EMF seminar for staff reponsible 2008 Rüdesheim, 25 October 2008

2. E Voss: Background and experience • European trade union cooperation in regional and sectoral contexts • Competence development and training projects in European Works Councils • Support projects for trade unions and employee reprensentatives in the New Member States • Supporting European trade unions with regard to various issues on restructuring, SME development, training etc. • Research projects on industrial relations, trade unionism and social dialogue

3. Results and theses • Europeanisation under the conditions of globalisation is resulting in new challenges and conditions for trade unions • We are at the crossroads regarding workers involvement in Europe • Potentials of European trade unionism are not fully exploited yet • Good practice goes beyond frontiers • National trade unions face a dilemma of Europeanisation • A stronger European dimension of trade union capacity building and staff development is necessary

4. Challenges of Europeanisation • European level of decision making in becoming more and more important: • At company level: transnational restructuring and relocation • Division of labour in economic branches and industry sectors • Regulation of working conditions, economic development and employment policy • At the same time the instruments of workers influence and European co-determination are still weak • Social Dialogue • Consultation at European level • Legislative framework of employee participation

5. Europeanisation: The example of micro and macro economic restructuring • Increasing pace of transnational company policy, restructuring and relocation • Wage disparities within and between countries are growing • Increasing diversity of industrial relations and working cultures, often resulting in „regime competition“ • Companies are fostering competition of sites and workforces: „Concession Bargaining“ and „Race to the Bottom“ • Macro-economic restructuring has resulted to significant shifts in employment

6. Employment change in Manufacturingand Business Services 2000-2005 According to the European Commission, every year, 10% of all European companies are set up or closed down. It is estimated that on average, between 5,000 and 15,000 jobs are created and lost every day in each of the Member States. Source: ELFS 2000-2005

7. Effects on industrial relations • Globalisation, structural change, EU enlargement and other factors have significant effects on industrial relations patterns in Europe: • Weakening of the coverage of employee interest representation at the workplace • Decentralisation (“Verbetrieblichung”) of collective bargaining • Erosion of bargaining power

8. Coverage rate of workplace interest representation(in % of all employees, private and public sector) SE FIN > 80 EST 60 - 70 LTV IRL DK 50 - 60 LIT NL UK 40 - 50 POL BE DE LU < 40 CZ SLK AT FR H SLVN IT PT ES EU-25 = 53 GR MLT CY

9. Decentralisation of collective bargaining SE FIN Sector level EST Inter-sector, tripartite or bi-lateral agreements LTV IRL DK Company level LIT NL UK POL BE DE LU CZ SLK AT FR H SLVN IT PT ES GR MLT CY

10. Labour productivity and real compensation Average wage growth has not been keeping pace with the growth of labour productivity, despite trade and foreign direct investment having grown rapidly. Globalisation and relocation has eroded the bargaining power of workers Average annual trend growth rate of GDP per capita 1995 to 2005, real compensation 1994 to 2004, Source: OECD Economic Outlook 2007 Labour Productivity Real Compensation

11. Dilemma of European workers involvement Transnational level of corporate decision making Trade unions and co-determination rights rooted nationally/locally Weak workers involvement, influence on the level of decision making How to build bargaining powerand bargaining potential?

12. One Generation Learning Processes: The European Social Dialogue • Three different types: • tripartite consultation • consultation of the social partners, in the spirit of Article 137 of the European Treaty • European social dialogue • 1st stage (1985 – 1991) • bipartite activities resulted in the adoption of joint resolutions, declarations and joint opinions, without any binding force • 2nd stage (1992 – 1999) • greement between the social partners, which was subsequently integrated into the protocol on social policy and annexed to the Maastricht Treaty in 1991 • In 1997, the 1991 agreement was incorporated into the Amsterdam Treaty (Articles 138 and 139) • three framework agreements (on parental leave in 1995, on part-time work in 1997, and on fixed-term contracts in 1999) via Council directives • 3rd stage (1999 – 2005) • Joint contribution of EU social partners to the Laeken European Council • greater independence and autonomy for the social dialogue

13. The European Social Dialogue since 2003 • First joint Multiannual Work Programme for the period 2003-2005 • New generation of ‘autonomous’ initiatives, whereby implementation at the national level was entrusted to the social partners themselves • Conclusion of new framework agreements: • Teleworking (2002) • Framework of actions for the development of lifelong skills and qualifications (2002) • Work-related stress (2004) • Framework of action on equality between men and women (2005). • Harassment and violence at work (2007) • Second Multiannual Work Programme for 2006-2008. This commits the participants to action in a range of areas including: • joint action to manage change; • building social dialogue in the new EU Member States; • following up existing agreements.

14. One Generation Learning Processes: The European Legislation on Workers’ Participation • Starting point: Commission's first Social Action Programme of 1974 • 1975 Directive on the approximation of the laws of the Member States relating to collective redundancies • 1977 Directive on the safeguarding of employees' rights in the event of transfers of undertakings , businesses or parts of businesses • EWC`s • 1983/1989 Vredeling proposal: First class funeral • 1994 EWC-Directive: ca. 750 EWC´s are established until now (in ca. 2200 covered companies) • General framework of information and consultation • 1998 Draft of a Directive on Information and Consultation • 2002 Adoption of the Directive establishing a general framework for in formation and consulting employees (to transpose until march 2005

15. European Works Councils: Figures 2005 Companies under scope of Directive: ~ 2.200 Companies having an EWC: approx. 750 Source: ETUI EWC Database

16. EWCs: Qualitative problems • Results of a survey amongst EWCs: • Less than half of EWC delegates report “useful information and consultation” on issues which are mentioned in the EWC Directive • More than half of all EWC delegates report that issues such as trade union rights, working time or financial participation has never been raised in the context of EWC meetings • 81 % of all EWC delegates have experiences situations of restrucuturing • But around ¾ of all EWC delegates have never been informed before decisions taken by the management • Only 0.8% of all EWC delegates think that the EWC is an effective instrument for influencing management decisions Source: Jeremy Waddington: “How EWC members see it”, Mitbestimmung 8/2006

17. Current trends and outlook • EWC as bargaining partner in framework agreements and “joint texts” • From national to trans-national agreements on production sites and employment stabilisation • Coordination and harmonisation of company based social policy • EWC as “transmission belt” of social dialogue and interest representation at the workplace • Good practice clearly goes beyond the Directive • Results: Revision of the Directive

18. EWCs and restructuring:Why trade unions are essential • Good EWC practice and strong bargaining power is based on strong trade union structures and resources • There is a need for stronger cooperation of trade unions and European level coordination of EWCs and interest representation in order: • to stop “races to the bottom”, decentralisation and fragmentation • to foster social convergence within the company • to strengthen capacities and develop competences • to strengthen social dialogue and influence at sectoral level • to demand and implement joint European standards and working conditions • to organise and exchange of good and innovative experience and practice • European Industry Federations’ lack of capacities to coordinate and support EWCs sufficiently

19. Structural change / Restructuring:European trade union strategies • How to manage structural change in the enlarged Europe under global conditions? To get out of the defensive position.. • Aim: adaptation through the high road (innovation, training, investments) to exploit the innovative potential of the location instead of relocation or adaptation through the low road of pure cost cutting and concession bargaining (through wage cuts and longer working hours) • This requires active management of structural change in a forward-looking way with the involvement of social partners and with strengthened workers participation • To think ahead 2-4 years – what we will produce? – in a co-operative way through social dialogue

20. Restructuring:Anticipation and pro-active strategies • Company level • productivity improvements through upgrading of skills and work organisation and through innovation and R&D • Sectoral and national levels • industrial policy strategy • generalised support for research and innovation • specific sectoral policies, (e.g. renewable sources of energy, clean technologies, environmental friendly transport) • flexicurity • European level • Rethink relationship between industrial and competition policy • All policy levels • Promote at life-long learning • Productivity-oriented collective bargaining • Demand-side policies for full employment

21. European Trade Unionism:Building networks of international solidarity • Strengthen information and consultation rights • EWCs key role, good practice cases, coordination • Intensify efforts to coordinate collective bargaining • Doorn process • EMF • ETUC, etc. • Transnational capacity building of trade unions • Training, resource centres etc. • Strengthening social dialogue and consultation roles • Frameworks for minimum social and labour standards in Europe • ILO standards globally with monitoring, codes of conducts, international framework agreements

22. Outlook and conclusions • Growing complexity of EU level trade unionism responsibilities and practice • Coordination role • Social dialogue and framework agreements • Consultations with Commission and social partners • Campaigning for strengthening workers involvement at different levels • Responsible restructuring, etc. • Increased Europeanisation of national trade unionism • Collective bargaining strategy: • Doorn 1998, EMF, EFFAT, Uni Europe, ETCU • Coordination and support for cross-border interest representation in transnational companies and sector networks

23. Conclusions for staff development • Staff recruitment, training and competence development • New European roles • Internationalisation of trade union functions beyond «international departments» • Different levels: Company/local, regional, national/sectoral • Training and competence development: inter-cultural competences, language and communication skills • Resources • Strengthening EU level resources of coordination, expertise and manpower • Do we need 27 resource/training centres + 1? • But: One has to respect the dilemma of European workers involvement: • TU members the most important backbone of bargaining power • Value-added of stronger Europeanisation must be clearly visible for individual members and workers

24. Contacts Eckhard VossWilke Maack und PartnerSchaarsteinwegsbrücke 2D-20459 Hamburg Tel.: 0049-40-43278741Mail: eckhard.voss@wilke-maack.de