COLLECTIVE BARGAINING AGREEMENTS : SOME BASICS

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COLLECTIVE BARGAINING AGREEMENTS SOME BASICS

• TURIN MARCH 2004

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TURIN MARCH 2004

• COLLECTIVE BARGAINING SOME BASICS
• AN EUROPEAN OVERVIEW
• THE ETUC AND THE COORDINATION OF COLLECTIVE
  BARGAINING IN EUROPE

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DEFINITION OF A COLLECTIVE BARGAINING AGREEMENT

• AN AGREEMENT BETWEEN
• ONE OR SEVERAL (REPRESENTATIVE) TRADE UNION(S)
  AND
• EMPLOYER (S) OR THEIR (REPRESENTATIVE)
  ORGANISATION
• STIPULATING THE WAGE AND WORKING CONDITIONS IN
  FIRMS, SECTORS OR THE ECONOMY

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WHY ?

• SIMPLISTIC ECONOMIC POINT OF VIEW
• SUPPLY AND DEMAND FOR LABOUR
• IN FACT NO ROOM FOR COLLECTIVE BARGAINING

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WHY ?

• FROM MODEL TO REALITY
• ABUSE OF POWER
• MARKET EQUILIBRIA MAY BE BAD SOCIAL OUTCOMES
• DYNAMIC INSTEAD OF STATIC OUTCOMES DO NOT
  COMPETE ON THE BASIS OF POVERTY WAGES AND BAD
  WOKING CONDITIONS

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Why ?

• BENEFITS OF COLLECTIVE BARGAINING
• EFFICIENCY INSTEAD OF VOTING WITH FEET
• SOCIAL PEACE
• PREDICTABILITY OF WAGE COSTS
• INTRODUCES STABILITY (macro aspect human
  capital and workers mobility)
• INSTRUMENT OF CRISIS MANAGEMENT
• ENHANCES PRODUCTIVITY BY BLOCKING FALSE
  COMPETITION

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ON WHAT ?

• WAGES classification of jobs to set up
  structure of pay level of minimum wages
  regular pay increases ( in pp or with a fixed
  amount) (minimum wage or effective wage)
  indexation premiums profit sharing
• LABOUR TIME AND HOLIDAYS from labour law to
  collective agreement
• ADDITIONAL SOCIAL BENEFITS
• MINIMUM CHARACTER

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HOW ?

• IMPORTANT INTERACTION WITH SYSTEMS OF LAW /
  GOVERNMENTS
• CREATION OF SECTORAL COMMITTEES NATIONAL
  (ADVISORY) BOARDS WITH SOCIAL PARTNERS
• PRINCIPLE OF HIERARCHY
• PRINCIPLE OF AUTOMATIC CONVERSION
• DOES NOT ALWAYS TURN OUT POSITIVE FOR TRADE
  UNIONS (Government intervention to save
  competiveness

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Who ?

• Representative trade unions
• Who is covered ?

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When ?

• Some agreements have indefinite duration
• Others are limited in time (what happens
  afterwards ?)

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On what level ?

• INTERSECTORAL
• SECTORAL
• ENTERPRISE
• UNIT

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CONCLUSION

• COLLECTIVELY SET UP STANDARDS IN ORDER TO CORRECT
  WILD MARKET FORCES
• FLEXIBLE IMPLEMENTATION

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