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The Role of the German Federation of Trade Unions in the Welfare-to-Work-Reform Process Michaela Schulze Frankfurt University Reforming Unemployment Policy in Europe: A Common Turn towards Activation? May 15-16, 2009. Table of Contents. Introduction 2. Theoretical Approaches and the Frame
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The Role of the German Federation of Trade Unions in the Welfare-to-Work-Reform Process Michaela Schulze Frankfurt University Reforming Unemployment Policy in Europe: A Common Turn towards Activation? May 15-16, 2009
Table of Contents • Introduction • 2. Theoretical Approaches and the Frame • 3. The DGB and Welfare-to-Work-Paradigm • 4. The DGB and the Welfare-to-Work-Reforms • 5. Conclusion
1. Introduction • trade unions and welfare state reform • German Federation of the Trade Unions influenced welfare state development: • esp. after Second World War • but also during the development of major welfare state programs (end of the 19th and first half of the 20th century) • fought for extensive programs (e.g. unemployment insurance) • new challenges since the 1980s: • welfare state is under reform pressure • trade unions are under pressure, too
It is important to look for the role trade unions played in the • welfare-to-work reform process • Did they support or oppose the emerging welfare-to-work • paradigm? • How did they influence the reform process? • Why to look for the German Federation of Trade Unions? • Umbrella organization and a political actor • Social policy interests of the trade union movement • (comparability) • Is welfare-to-work important for trade unions? • these reforms affect programs that are of interest for trade unions • e.g. unemployment insurance, social assistance schemes • “golden age” of welfare state development: • trade unions as an important political actor • what about welfare state retrenchment?
2. Theoretical Approaches • Two dominant directions have to be considered: • trade union research • welfare state research • welfare state development within the new context • retrenchment… (e.g. Pierson) • activation/workfare/welfare-to-work discussion (e.g. Peck, Quaid, Shragge, Lødemel/Trickey, Drøpping/Hvinden/Vik , Barbier…) • power resources approach (Korpi) • corporatism (Schmitter, Lehmbruch, Streeck)
Some Criteria: • Political aims of the trade union movement • Access to the political (reform) process • Influence in commission work • Ties to the social-democratic party • Strength of the movement • …
3. The DGB and Welfare-to-Work-Paradigm • Emergence of the welfare-to-work paradigm in Germany • 1998-2001 • Time between the election campaign and the Job-AQTIV Law • Welfare-to-work paradigm emerged • The position of the DGB during this paradigm shift: • opposition of welfare-to-work paradigm • and hope for social-democratic government and trade union- friendly social policy
Emerging Welfare-to-Work Paradigm inGermany • (1998-2001): • „German problems“ (defined by politicians & scientists): • long-term unemployment • insufficient incentives to take a job, lack of qualifications • ineffective administration • 1998: election campaign of the Social Democratic Party • Bodo Hombach (Federal Minister of the Chancellery) called for reforms • Fördern und Fordern was the main slogan • individual initiatives to take a job, re-balancing rights and duties • Schröder-Blair Paper (1999) - idea of activation • German discussion was inspired by early American reform in 1996 and Anthony Giddens
The DGB and welfare-to-work paradigm change: • Difficult situation for trade unions • social policy cuts of the Kohl-administration • development of membership • Gerhard Schröder (election campaign) • he promised to take back the last cuts of the Kohl-administration • he also promised a new try for the „Bündnis für Arbeit“ (Alliance for Jobs) • unemployment was the major topic • trade unions supported the campaign in content and with money • because of the promises Schröder made • the DGB hoped for: • trade union-friendly social policy • BUT:
within the trade union movement no clear direction about future social policy and about the involvement of the DGB as a political actor! • This is also obvious from the discussion of the Schröder-Blair-Paper • - content and reform proposals were criticized • „ a danger for the German welfare state“ • denial of „fördern und fordern“ • new welfare-to-work paradigm was seen as a synonym for anti-trade union social policy • problem definition (unemployment, lack of qualifications…) • DGB agreed (unemployment as the major problem) • DGB in favor for further education and training • but opposed the „laziness discussion“
the position of the DGB can be characterized as: • support for Schröder, because they hoped for „good“ • social policy • opposition of the new paradigm • opinion of trade union leaders changed with the victory of Schröder • he demonstrated his plans about future social policy • on the other hand it is not surprising that the DGB opposed the paradigm because it is a threat to (traditional) social policy goals of trade unions
4. The DGB and the Welfare-to-Work Reforms • From welfare-to-work paradigm to welfare-to-work reforms • 2001-2005 • - two major reform steps • - Job-AQTIV Law and the Hartz reforms • The DGB during the reform process • policymaker and disappointed political actor
Welfare-to-Work Reforms in Germany (2001/2-2005) 2 major reform steps: • Job-AQTIV Law (2001) • main elements: activation, qualification, training, investment, job placement • aims: improving job service, active integration of the unemployed, education and training for unskilled workers • slogan of “Fördern und Fordern” established
Welfare-to-Work Reforms in Germany (2001/2-2005) • Hartz Reforms (2003-2005) • Hartz 1 – Hartz 3: • reforming and improving job service, • reducing bureaucracy, • job placement as “service for clients”, • self-employment for unemployed was fostered, • possibilities of sanctioning unemployed were expanded • Hartz 4: final step towards welfare-to-work policies, • unemployment benefits were reduced to 12 months, • unemployment benefit II (replaced former unemployment assistance and social assistance for able-bodied persons), • people who do not take an appropriate job will lose their benefits, • creation of job centers (to end former double responsibility)
The DGB and the welfare-to-work reform process: • „Alliance for Jobs“ (Bündnis für Arbeit) • re-established after the election to find solutions for the problem of unemployment • trade unions, politicians, employers involved • between 1998 and 2002: 8 meetings • agreements about major reforms but not about the content • trade unions declared the failure of the alliance in 2002 • Year 2000 shift in policy strategy of the DGB • (opposition of welfare-to-work ideas) • since then the DGB was in favor of (a strong) activation • called for reforms (some of the topics of the later Hartz reforms!!!)
Job-AQTIV law (2001): • the DGB was in favor of the reform • right elements for integration to the labor market • for a strong emphasis on activation • major topics have been discussed in the meetings of the „Bündnis für Arbeit“ • Not surprising, because they were involved in the making of the reform!!! • Hartz reforms (2002/2003-2005) • in favor of the reform proposals made by the Hartz commission • but opposition of real reforms made by the government • because they differed from the proposals made by the commission! • esp. the Hartz IV reform was heavily criticized • unemployment benefit II (like social assistance, not enough to live) • duty to accept nearly every job
DGB was in favor for welfare-to-work ideas • involvement in the work on reform proposals • shift from opposition to support for welfare-to-work! • DGB opposed the Hartz IV-reform: • also involved here • but government did not introduce the proposals of the commission • instead harsher rules
5. Conclusion: Is the DGB still an important political actor? • Political aims of the trade union movement • - shifted from opposition to support of welfare-to-work ideas • - (but relatively late, because disputes about future direction of the movement) • Access to the reform process and commission work: • Bündnis für Arbeit, Hartz commission, trade union members in the parliament etc. • but: Schröder did not implement the proposals (in case of the Hartz IV- reform) • further weakening of the movement • ( ties to the social-democratic party and strength of the movement) • To conclude: • The DGB still is an important political actor in the reform process but: • some of the problems appear because of problems within the movement