Impact of the crisis on industrial relations in Europe

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Information about Impact of the crisis on industrial relations in Europe

Published on March 8, 2016

Author: christianwelz


1. Impact of the crisis on industrial relations in Europe Maynooth University Department of Law 08 March 2016 Dr. Christian Welz

2. 1. Prologue 2. Actors u n d e r p r e s s u r e 3. Processes u n d e r p r e s s u r e 4. Outcomes u n d e r p r e s s u r e 5. Conclusions 6. Epilogue and discussion Table of content

3. • “By viewing labour as a commodity, we at once get rid of the moral basis on which the relation of employer and employed should stand, and make the so-called law of the market the sole regulator of that relation.” • (Dr John Kells Ingram, address to the British TUC in Dublin 1880) prologue

4. • Clayton Anti-Trust Act (1914: section 6) • 'that the labor of a human being is not a commodity or article of commerce'.  Samuel Gompers – leader of the American Federation of Labour for 20 years was inspired by Ingram prologue

5. • Treaty of Versailles (article 427) first principle of the new ILO pro- claimed ‘ that labour should not be regarded as a commodity or article of commerce introduced by British delegation  Gompers > personal defeat • ILO DECLARATION OF PHILADELP  labour is a commodity prologue

6. actors Impact Member State successful tripartite negotiation (8-10) BE, BG, CZ, EE, FR, LT, LV, NL, PL, PT breakdown of tripartite negotiations (10---) BE(2011/12), ES, FI, GR, HR, HU, IE, IT, LU, PL(2011/12), SI reorganisation of public actors and bodies ES, GR, HR, HU, IE, LU, RO decline in trade union density CY, BG, DK, EE, IE, LT, LV, SE, SI, SK, UK halt in trade union density decline/increase in trade union density AT, CZ, DE, EE (for transport), LT changes to membership of employer bodies CY (increase), DE (increase in members not bound by CA), LT (first decline then increase)

7. actors Impact MS decreasing influence and visibility BE, DK, EE, HU, IE, LV, NL increased cooperation between the social partners DE, HU, LT, NL emergence of new social movements ES, GR, PT, SI increase government unilateralism BE, BG, EE, ES, GR, HR, IE, PL, PT, SI new power balance among actors BG, EE, ES, GR, LT, LV, PT

8. processes PROCESSES - SUMMARY Type of change MS Main level(s) of bargaining: Decentralisation AT BG CY EL ES FR IE IT RO SI Recentralisation BE FI Horizontal coordination across bargaining units AT ES HU IE RO SE SK Linkages between levels of bargaining Ordering between levels EL ES PT Opening and opt-out clauses AT BG CY DE EL ES FI FR IE IT NO PT SE SI Extending bargaining competence EL FR HU PT RO Reach and continuity of bargaining Extension procedures EL IE SK PT RO Increased / changed use of existing procedures BG DE IT Continuation beyond expiry EE EL ES HR PT Minimum wage setting and indexation

9. 2008 2011 Austria MEB MEB Belgium MEB MEB Bulgaria Mixed Mixed Croatia MEB MEB Cyprus Mixed Mixed Czech Republic SEB SEB Denmark MEB MEB Estonia SEB SEB Finland MEB MEB France MEB MEB Germany MEB MEB Greece MEB MEB Hungary SEB SEB Ireland MEB SEB Italy MEB MEB Latvia SEB SEB Lithuania SEB SEB Luxembourg MEB MEB Malta SEB SEB Netherlands MEB MEB Norway MEB MEB Poland SEB SEB Portugal MEB MEB Romania MEB SEB Slovakia Mixed Mixed Slovenia MEB MEB Spain MEB MEB Sweden MEB MEB

10. Trade Unions Intersectoral level Government Employers Intersectoral level Sectoral level Sectoral level Company level Levels of CB - wages Company level Belgium Finland Austria Denmark1 France1 Germany Greece Ireland1 Italy Luxembourg1 Netherlands Portugal1 Spain1 Sweden1 Denmark2 France2 Ireland2 Luxembourg2 Portugal2 Spain2 Sweden2 UK

11. Trade Unions Intersectoral level Government Employers Intersectoral level Sectoral level Sectoral level Company level Levels of CB - wages Company level Slovenia 1 Bulagaria1 Cyprus 1 Slovakia 1 Slovenia 2 Bulgaria2 Croatia Cyprus 2 Czech Rep. Estonia Hungary Latvia Lithuania Malta Poland Romania Slovakia 2

12. Trade Union density rates 2013 in %

13. • continental Western, central Eastern and Nordic IR regimes apply the favourability’ principle to govern the relationship between different levels of CB  CAs at lower levels can only on standards established by higher levels  exceptions: IE and the UK > reflecting their different legal tradition based on voluntarism • FR  FR made changes already in 2004 (loi Fillon) • ES  2011 law inverted the principle as between sector or provincial agreements and company agreements EL  2011 law inverts the principle between the sector and company levels for the duration of the financial assistance until at least 2015 • PT  2012 Labour Code inverts the principle, but allows EOs and TUs to negotiate a clause in higher-level CA reverting to the favourability principle Ordering / favourability principle

14. opening clauses in sector/cross-sector CAs provide scope for further negotiation on aspects of wages at company level opt-out clauses permit derogation under certain conditions from the wage standards specified in the sector/cross-sector CA changes in opening clauses  6 MS AT, DE, FI, IT, PT, SE changes in opt-out clauses  8 MS BG, CY, EL, ES, FR, IE, IT, SI • Changes in opening/opt-out clauses

15. • changes: EL, FR, HU, PT and RO • EL  under 2011 legislation, CAs can be concluded in companies with fewer than 50 employees with unspecified ‘associations of persons’  these must represent at least 60% of the employees concerned • RO  legislation (2011) introduces harder criteria for trade TU representativeness  where TUs do not meet the new criteria at company level, EOs can now negotiate CAs with unspecified elected employee reps Extension of CB competence

16. Extension mechanisms of the 28 MS > 23 MS have extension mechanisms or a functional equivalent (IT)  no legal procedure for extending collective agreements in CY, DK, MT SE and UK changes to either extension procedures or in their use in 8 MS BG, DE, EL, IE, PT, RO, SK, IT

17.  clauses providing for agreements to continue to have effect beyond the date of expiry until a new agreement is concluded are intended to protect workers should employers refuse to negotiate a renewal  they are found in a 9 MS at least  AT, DK, EE, EL, ES, HR, PT, SE, SK  changes have been made to such provisions in 5 MS  EE, EL, ES, HR, PT Continuation of CAs beyond expiry

18. Company level Sector level National level AT CY EL IT BG ES FR FI RO SI IE Trends in main levels of CB BE PT

19. Outcomes Impact MS inconclusive outcomes BG, CY, CZ ES, MT, NL decrease in number of agreements CY, CZ, EE, LV, MT, PT, RO, SI increase in duration of agreements AT, DE decrease in duration of agreements BG, CY, DK, GR, LV, ES, SE decrease in the level of pay increases AT, ES, FI, NL pay cuts or freezes AT, BE, BG, DE, DK, ES, FI, GR, HU, IE, IT, LT, LU, LV, NL, PL, PT, SI, SK, UK working time reduction/short-time working AT, BE, BG, DE, FR, HU, IT, LT, NL, PL, SI, SK non-renewal of agreements BG, CY, EE, ES

20. 2008 2009 2010 2011 2012 2013 2014 sector CA 194 164 166 115 46 46 72 company CA 97 87 64 55 39 49 80 total CA 291 251 230 170 85 95 152 extension 137 102 116 17 12 9 13 coverage / in 1000 pers. 1,895 1,397 1,407 1,237 328 243 246 No. of CAs in PT

21. • change has been concentrated amongst 6 MS, whose WSMs have each undergone multiple changes  CY, EL, ES, IE, PT, RO  been in receipt of financial assistance packages from the ‘troika’  changes in WSMs were required in all except ES • in a further 4 MS there have been some changes to WSMs  HR, HU, IT and SI  change primarily driven by domestic actors > governments or SP • in a majority of 18 MS WSMs have seen few or no changes since 2008 Conclusions

22. • impact of the ‘troika’ in inducing changes to WSMs amongst those countries receiving financial assistance packages is clear • government-imposed measures in these countries have substantially reconfigured WSMs Conclusions

23. •  towards a re-commodification of labour ? • Labour is not a commodity > clause is not in the EU Treaties • yet  Albany case (1996) • Albany used the competition rules in article 81(1) EC (now article 101(1) TFEU) claiming that mandatory pension scheme compromised their competitiveness • Discussion

24. • ECJ • “ social policy objectives pursued by CAs would be seriously undermined if management and labour were subject to Article 85(1) “ • Advocate General Jacobs • “ CAs enjoy automatic immunity from antitrust scrutiny” • Art. 153 (5) TFEU • The provisions of this Article shall not apply to pay, the right of association, the right to strike or the right to impose lock-outs. Discussion

25. Trend Origin Restructuring of actors megatrend Decline in trade union density megatrend Public Sector Reform megatrend Decentralisation of collective bargaining megatrend (crisis accelerated) Increase in opt-out clauses crisis-induced trend Increase in opening clauses crisis-induced trend Decrease of extensions crisis-induced trend Shorter duration of collective agreements crisis-induced trend Drop in volume of bargaining crisis-induced trend Drop in quality of bargaining crisis-induced trend Shorter continuation of CAs crisis-induced trend Reforms in wage-setting mechanisms crisis-induced trend More adversarial industrial relations crisis-induced trend Discussion: crisis vs. megatrends

26. • • • European industrial relations dictionary Further information

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