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Reflections on collective bargaining techniques from the ETUC. Ronald Janssen, ETUC September 2008 rjanssen@etuc.org. Structure of the presentation. Two subjects European social dialogue Coordination of national collective bargaining rounds Two dimensions The ‘official’ story
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Reflections on collective bargaining techniques from the ETUC Ronald Janssen, ETUC September 2008 rjanssen@etuc.org
Structure of the presentation • Two subjects • European social dialogue • Coordination of national collective bargaining rounds • Two dimensions • The ‘official’ story • Practical lessons to be learned
European Social Dialogue or European Collective Bargaining • The background: ‘No one can love a market’ (Jacques Delors) • A deal between Commission and trade unions in Europe
Internal market is necessary but not enough! • Why have an internal market? • Key word = competition between firms • Intense competition will lead to innovation and productivity • However, key question is how companies compete with each other • One way: To invest in innovation, new products, new techniques • Other way : Cut-throat competition at the expense of workers…as well as innovation. Example of Siemens-BenQ (and many others…).
Correcting the internal market: The European Social dimension • European Social Acquis to build a social level playing filed for competition in the internal market • Maastricht Treaty (1992): Formal role for European Social partners to be consulted and to conclude agreements on working conditions • Possibility of social partner agreements being made binding European social directive
The European Social Acquis in practice: A selection • Maternity rights • Four weeks paid holiday a year • Control of working time (maximum average of 48 hours, proper rest breaks) • Posted workers to be paid the minimum wage or the collectively agreed wage in country of service
The European Social Acquis: Social partner agreements: • Equal Rights for Part-time workers • Putting limits to fixed-term work • Restructuring (2003) agreement • Principles jointly underwritten by ETUC and European employers: • A-typical work to remain exception, not the rule • Comparable rights for part time workers • Dismissing workers: last available option
Recent situation • A « moratorium » on Social Europe (Lisbon version 2005; Commission social agenda) • Employers not ready to ‘blow up’ European Social Dialogue : Shift from ‘hard’ agreements to ‘soft’ (or, as they call it ‘voluntary’ agreements (stress,….) • However, employers looking for ways to use ESD to their advantage: The Joint Analysis of Key Challenges Facing the Labour Market (October 2007)
Lessons from European level collective bargaining • We do not understand. Please explain to us • Move as a pack of wolves…. • … and single out the ‘obstructionists’ • Try and try again to score your point • Introduce terms the other side does not fully understand but which you can explain to your own advantage afterwards
Lessons from European level collective bargaining • Sign anything but make sure you impose your reading of the ‘text’ afterwards’ upon politicians and press (« ETUC has signed a flexicurity agreement, hence agrees with ‘easy firing ») • Create confusion by claiming the other side actually agrees with you but does not dare to admit this in public • A key lesson : A succesful agreement requires a minimum position of power to enforce the good application of that agreement
Second theme • Coordination of national collective bargaining rounds
Economic Europe as a challenge • Internal market (1993): Competition over the borders • Logic: More competition should imply more innovation… • … but employers (and governments) may also be tempted to compete at the expense of working conditions • Danger of employer blackmail (threat of delocalisations, importing ‘cheap’ labour that does not raise « difficult » questions
Economic Europe as a challenge • Monetary union reinforces these trends further: • Competitive devaluation no longer possible, so risk of competitive wage moderation • Practice turns out to be somewhat different (and worse): Country central in monetary union does no longer fear wage moderation will be offset by the appreciation of its currency and has gone for total wage moderation
Economic Europe as a challenge • Contagion and ‘bad example setting’ behaviour: Concessional bargaining in one country is immediately ‘marketised’ throughout Europe (Siemens case as a classical example)
Cooperation exists since more than ten years • ’94-’95: EMF, followed later by European textiles and chemicals • 1998: Doorn group (Be,NE,LUX,GE,FR) • 1999: ETUC committee on the coordination of collective bargaining
What do they do? • Bringing together the collective bargainers over the borders in order to: • Exchange information (Eucoban network fex) • General orientations for collective bargaining in each country (wages in line with inflation and productivity) • Evaluation and follow-up on an annual basis (annual reports, Executive Committee resolutions)
What has been the experience? • Diversity of national bargaining systems • Cling on to ‘national autonomy’ • Domestic pressure from national employers and national governments • Experience with wage formation in monetary union
What has been the experience? • But also positive developments: • Mutual peer pressure on trade union bargainers (examples: GE 2001, NL 2006) • Much better knowledge of each others’ bargaining systems/ ‘learning from each other’ • In particular Eastern European colleagues much interested • Awareness that no one in Europe negotiates on an ‘island’ is higher than it ever was
One step further for the ETUC • From « coordination » to « cooperation » • Real time exchange of information to be ahead of the ‘media circus’ of the employers… • … and to turn things around: To put the focus on those agreements we like • Common campaigns on common demands (EMB on access to training/ ETUC on wages in general)
The ETUC campaign on wages • Launched beginning 2008 • 30.000 workers on the streets in Llubljana • …and Croatia, Poland, Belgium, Italy,.. • Messages : Fair share of GDP, real wage increases, stop rising profits and soaring CEO pay, no to gender pay gaps, no to poverty wages
Practical lessons • Wake up call for many governments and employers: Wage demands and workers’ problems are European problems, shared by the rest of Europe • European action moves the starting position to start national negotiatons from. • However, there are ‘storms’ ahead