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EMF Collective Bargaining Policy

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Title: EMF Collective Bargaining Policy


1
EMF Collective Bargaining Policy
  • Manfred Anderle
  • Senior Secretary

2
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
3
Labour productivity
4
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).

5
Falling wage share
6
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7
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

8
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

9
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)

10
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

11
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

12
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13
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)

14
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

15
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.

16
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

17
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)

18
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.

19
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

20
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

21
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

22
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

23
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!

24
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
    )

25
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

26
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

27
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

28
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

29
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)

30
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"

31
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
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