trends in collective bargaining in the eu final conference: “collective bargaining in croatia and...
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Trends in collective bargaining in the EU
Final conference: “Collective bargaining in Croatia and EU today”
Zagreb, 14 October 2015
Dr. Torsten Müller
European Trade Union Institute - ETUI
Megatrends as challenges for trade unions and CB
1.) Structural change: Manufacturing to services Increasing privatisation of public sector
2.) Increase of precarious and and atypical forms of employment
3.) Globalisation makes national regulation more difficult
4.) Neoliberal hegemony – reinforced by crisis
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Main trends in collective bargaining systems across EU
1.Change in political framework conditions: unprecedented degree of direct political interventions
2.Different modes and degrees of decentralization in collective bargaining structures
3.Spread of company-level employment and competitiveness pacts
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
EU crisis management
Basic assumptions:
1. Crisis is primarily a crisis of cost competitiveness
2. Lowering labour costs is the key to regain (price) competitiveness and to address macroeconomic imbalances!!!
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
EU crisis management New European Economic Governance:A new European interventionism in the area of wage policy through European Semester/European Imbalances procedure: half of the EUMember states received recommendations Troika /Memorandum of Understanding
Policy measures: Direct intervention into wage developments by cutting and freezing public sector and minimum wages Structural reforms of wage setting institutions to increase downward flexibility of wages
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Intervention into national collective bargaining
DG ECFIN 2012: “Employment friendly reforms”
Decreasing bargaining coverage Decreasing extension of collective
agreements Decentralizing bargaining systems Removing or limiting the favourability
principle Introducing/extending possibilities to
derogate from higher level agreements Overall reduction of wage-setting power of trade unions
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Continuity DG ECFIN approach
DG ECFIN 2015:
“Moreover, major reforms in the labour market, such as decentralised wage bargaining and more flexible wage arrangements, … as well as past wage moderation will also support job creation.”
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Country-specific recommendations 2011-2014
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Measures in countries under international surveillance
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Abolition of additional benefits in public service (2008-13)
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Greece Hungary Portugal Romania Spain
13th/14th monthly pay
Cuts in pension entitle-ments
Accomo-dation allowance
Medicationallowance
Food allowance
Eingriffe in nationale Mindestlöhne
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
22 % cut (32% cut for young
workers under 25) in 2012
Freeze until the end of the assistance
programme
Freeze 2011-2014
No MW rise without approval
of Troika
1 € cut in 02/2011rescinded in
07/2011
Freeze since 1997
Suspension of automatic Indexation
No MW rise without approval
of Troika
National hourly minimum wages (in Euro, January 2015)
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Quelle: WSI-Minimum wage database
Minimum wage in % of median wage
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Real compensation in the EU 2010-2014
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Number of collective agreements
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Decollectivisation of industrial relations
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Portugal Spain2008 2013 2008 2013
Agreements 295 94 5987 3161
Of which company
95 48 4539 2274
Extension 137 9
Workers covered
1.8 mio 242,000 12 mio 8.5 mio
Collective Bargaining Coverage
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Dominant level of negotiations
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Quelle: European Commission 2015: Industrial Relations in Europe 2014
Implications of interventionist approach
1. Systematic undermining of (cross-)sectoral systems of multi-employer collective bargaining
2. Dramatic decrease of collective bargaining coverage leading in parts to a decollectivisation of industrial relations
3. Pressure on wages: deflationary tendencies and downward wage competition with negative consequences for internal demand.
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Organized de-centralization in northern European countries
(Inter-)sectoral agreements define the terms of transferring bargaining competences to lower levels
Tools: Company-level employment pacts State-sponsored schemes for
temporary working time reductions
and lay-offs
Path-dependent adjustment of existing
multi-employer bargaining systems
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Wages and collective bargaining under deflation: alternative approach
● Stabilising and enforcing wage developments:
• counter deflationary price developments
• stabilise and increase private demand
• counter income inequality
● Requires …• stop of wage cuts and wage freezes
• wages increase at least in line with productivity and target inflation
• more expansive wage developments in the surplus countries
● Requires …• strengthening of wage setting institutions
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Thank you very much for your attention!!!
Dr. Torsten MüllerSenior Researcher
European Trade Union InstituteBld. du Roi Albert II, 51210 BrusselsEmail: tmueller@etui.org
Dr. Torsten Müller – ILO-EPSU Seminar, April 2015
Trends in collective bargaining in the EU
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