EMF Collective Bargaining Policy

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EMF Collective Bargaining Policy

• Manfred Anderle
• Senior Secretary

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Macroeconomic situation

• Slowing-down of economic growth
• (Reasons recession in USA, continuing financial
  crisis, rising crude oil prices)
• - EU 27 2007 2.8 20082
  20091.8
• Euro area 2007 2.6 20081.7 20091.5
• Record inflation rates
• EU 27 2007 2.4 2008 3.6 2009 2.4
• Euro area 2007 2.1 2008 3.2 2009 2.2
  

Source spring forecast of the Commission April
2008
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Labour productivity
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Current challenges

• Collective bargaining is under pressure in
  Europe
• Economic and monetary union shift of competition
  at pay level
• Employers, OECD, ECB pay restraint fights
  inflation, creates jobs
• Wage share falling continually - massive
  redistribution from wages to profits
• Income and purchasing power differences in EU 27
  still great (Romania, Bulgaria - 40 below EU
  average Poland - 52 of EU average Czech. Rep.,
  Slovenia, Malta, Cyprus - 75 Switzerland,
  Iceland, Netherlands, Luxembourg - 20 above).

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Falling wage share
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Collective bargaining policy coordination of the
European Metalworkers Federation

• Fundamental aims of the EMFs collective
  bargaining policy strategy
• To improve the living and working conditions of
  European metalworkers by
• coordinating the national collective bargaining
  policies of the member organisations
• developing, strengthening and promoting an active
  European coordinated collective bargaining policy
  
• achieving European general agreements

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Brief chronology

• 1973 founding of the EMF setting-up of a
  Collective Bargaining Policy committee for the
  exchange of information
• EMF action programme 1974
• first objective of the "coordination of national
  collective bargaining policy of common interest"
  "Development of common claims in future
  collective bargaining rounds"
• 1993 First collective bargaining policy
  conference "Statement on the principles of
  collective bargaining policy coordination"
• first comprehensive collective bargaining policy
  coordination plan - establishment of common
  parameters inflation productivity and income
  redistribution from capital to labour

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Wage coordination rule

• 1998 Decision of the wage coordination rule as
  central element of EMF coordination strategy
  against wage dumping in the EMU
• "The central point of reference and standard of
  trade union wage policy must be inflation rate
  balance and the balanced share of employees
  income in productivity improvements" (3rd
  collective bargaining policy conference of the
  EMF, Frankfurt, December 1998)

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Wage coordination rule

• Qualitative elements shortening of working
  hours, time off from work for study/training,
  part-time work for people approaching retirement,
  etc. total value of the negotiating package
  (Vowa)
• Making full use of the scope for distribution
  remains a national matter

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Wage coordination rule

• 4th collective bargaining policy conference 2001
  evaluation and political assessment of the wage
  coordination rule
• In most countries, the purchasing power of
  employees has been successfully protected, as has
  productivity growth in many cases.
• No reference to deliberate social dumping, even
  though basic economic and political conditions
  for collective bargaining are increasingly
  deteriorating
• BUT not yet directly mentioned by member
  organisations in collective bargaining rounds in
  future, should be made even more visible as a
  political instrument

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Minimum standards in Europeworking hours charter

• 1998 EMF working hours charter
• Minimum positions for the organisation of
  national working hours called for
• No general lengthening of working hours
• (Aim remains EU-wide achievement of the 35-hour
  week with wage adjustment)

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Minimum standards in Europeworking hours charter

• annual maximum working hours of 1,750 hours as
  common European minimum standard
• maximum of 100 hours of overtime a year, which
  are compensated only by money
• flexible working hours only on basis of
  collective bargaining contracts

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Minimum standards in Europeworking hours charter

• Evaluation in EMF working hours survey 2005
• Austria, the Czech Republic, Denmark, Finland,
  France, Germany, the Netherlands, Norway and the
  Slovak Republic agreed with the EMF working hours
  charter (lt 1,750 hours/year).
• In 2003, the European average was 1,724
  man-hours.

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Coordination instrumentsEucob_at_n network

• Eucob_at_n electronic information and
  communication network of the EMF
• Core network of correspondents in member
  organisations
• Purpose to monitor and evaluate European
  collective bargaining policy coordination

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Coordination instrumentsEucob_at_ network

• Eucob_at_n - annual reports
• Special reports (variable payment, working hours)
• Latest information on national pay rounds
• Since December 2006, cooperation with two other
  European industry federations textiles,
  clothing, leather (ETUFTCL) and mining, energy,
  chemicals (EMCEF)

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Coordination instruments regional networks

• Since 1998, at the proposal of IG-Metall,
  setting-up of regional networks with varying
  degrees of success
• Belgium, Netherlands, Germany North
  Rhine-Westphalia
• Denmark, Sweden, Norway, Finland, Iceland
• Denmark, Sweden and Germany coastal region
• Austrai, Slovenia, Czech Republic, Slovakia,
  Hungary, Germany Bavaria "Viennese Memorandum
  Group"
• France and Germany - Frankfurt
• Poland and Germany - Berlin - Brandenburg -
  Saxony
• Switzerland and Germany - Baden Württemberg.

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Regional networks

• Aims
• Observer exchange during national collective
  bargaining
• Drive forward European coordinated collective
  bargaining policy
• Prevent dumping competition
• Integrate new (CEEC) member countries
• Preserve and spread the European social model

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EMF bargaining mandate

• 2004 debate on employee participation, flexible
  payment systems
• EMF mandate for negotiations at company level (1
  member of the collective bargaining policy
  committee and 1 member of the working party on
  business enterprises each)
• Counterbalance to employers strategy of shift to
  company level

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First common claim

• EMF working programme 2003-2007 all member
  organisations agree to priority common subject,
  which is introduced into national negotiations
  Europe-wide
• 2005 fifth collective bargaining policy
  conference in Rome
• Decision of a common claim for a personal right
  to education/training, guaranteed by pay
  agreement
• Start of the campaign for Europe-wide
  implementation in national road maps by 2009

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First common claim

• Aspects of the common claim
• Personal right to qualifications, continuing
  education/training and lifelong learning
• 5 continuing education/training days for all
  employees
• Annual qualification plans
• Free occupational training and continuing
  education/training for employees

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EMF collective bargaining policy current and
future subjects

• EMF working programme 2007-2011
• Analysis of the current economic policy facts
  (pressure on collective bargaining policy due to
  restructuring, outsourcing, ECB policy, weakening
  of the trade unions)
• Evaluation of the wage coordination rule and of
  the working hours charter repercussions of
  concession bargaining at company level
• Evaluation of the first common claim future
  additional common claims
• Precarious employment possible second common
  claim more flexible employment without more
  precarious employment!

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EMF collective bargaining policy current and
future subjects

• Application of the EMF social charter in national
  collective bargaining (equal opportunities,
  extended opportunity for parental leave, etc.)
• Consideration of the interests of migrants
• Development of the EMF model, decided on in 2001,
  for industrial relations system for
  transnational wage agreements
• Collective bargaining policy subjects in social
  dialogue in the metal industry (education/training
  )

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EMF industrial policy

• Aim to overcome the European industry crisis
  from the point of view of social acceptability
  and promotion of employment
• Call for an industrial policy in Europe in line
  with the aims of the Lisbon strategy
• 2005 EMF plan of action (emphasis on production
  industry) with 14 concrete measures

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EMF plan of action

• More research development (3 of GDP in RD
  until 2010)
• EMF engagement in social dialogue, participation
  in technology and innovation platforms
• New forms of labour organisation
• Innovation in traditional industries
• Industrial policy plan for the ICT sector
• Creation of an educational/training structure to
  support the innovation structure

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EMF handbook

• Cross-border mergers and restructuring a central
  subject for European metalworkers trade unions
• - According To European Restructuring Monitoring,
  11 of all restructuring operations fall to the
  metal sector
• EMF handbook as operating instructions for
  European works councils contains
• Overview of rights to information and
  consultation for EWCs
• In the event of breach of EWC agreement,
  possibilities of going to court
• Binding political guidelines of the EMF for
  Europe-wide coordinated actions in the event of
  restructuring operations

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EMF strategy for cross-border restructuring

• Based on the GM case, in June 2005 EMF decided on
  guidelines for Europe-wide coordinated procedures
  in the event of cross-border restructuring
  operations,
• to put management under pressure
• to protect employees interests
• to prevent the playing-off of workforces against
  each other across borders

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Central points of EMF strategy

• Development of an early warning system
• Confirmation/refuting of restructuring rumours
  passing on to those affected anticipation vital!
• Extensive use of national/European rights to
  information and consultation
• Access to information indispensable, also to make
  alternative proposals full use of all
  consultation opportunities for employees (e.g.
  including questioning in merger control
  procedures)

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Central points of EMF strategy

• Creation of a European trade union coordination
  group (from trade unions in the business
  enterprise, EWC, EMF coordinator)
• Condition complete transparency of information
• Negotiation of a Europe-wide general agreement on
  the socially acceptable management of
  restructuring (redundancy payments scheme
  -minimum standards)
• See also EU Commission proposal for a directive
  for transnational collective bargaining
  agreements step towards "European company-level
  agreements"

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European general agreement

• GMEECO - General Motors-Europe project trade
  union coordination, action days, European
  framework agreement on restructuring versus
  competition among sites (Delta project
  production of the Astra car is evenly distributed
  on European sites)
• Schneider - anticipation of change