fb tarifpolitik, ressort europa vorstand cyprus, september 2009 instruments for secure employment in...

FB Tarifpolitik, Ressort Europa Vorstand

Cyprus, September 2009

Instruments for Instruments for

secure employment secure employment

in the crisisin the crisis

2

Vorstand

FB Tarifpolitik, Ressort Europa, Uwe Fink

Effects of the crisis on the metall industry in Germany

Stärkster Einbruch der Wirtschaftsleistung seit 80 Jahren

Veränderung des Bruttoinlandsprodukts in Prozent

2,0 2,0

3,2

1,2

3,02,5

1,3+0,5

-5,4bis-6,5

bis -0,5

0,81,1

0,0-0,2

98 99 00 01 02 03 04 05 06 07 08 09 10

Prognosen

Quelle: Statistisches Bundesamt, Prognosen der Institute im Frühjahr/Sommer 2009Source: Federal Bureau of Statistics, Spring/Summer 2009 Forecast of Economic Institutes

Forecast

Strongest decrease of Gross Domestic Product since 80 years

Rate of change in percent

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70

80

90

100

110

120

130

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

kalender- und saisonbereinigt

Originalwerte

Quelle: Statistisches Bundesamt

Auftragseingang in der Metall- und ElektroindustrieIndex: 2005 = 100

Mai/April 09: + 4,6%Mai 09/Mai 08: -31,3%

Source: Federal Bureau of Statistics

Incomming orders in the metall and electrical industry

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Vorstand



-9,8

-11,5

-13,7

-20,5

-21,3

-22,8

-26,1

-26,2

-27,7

-34,6

-26,4

-23,6

Bekleidungsindustrie

Holzgewerbe

Möbelindustrie

Automobilindustrie

DV, Elektronik, Optik

Textilindustrie

Metall- und Elektroindustrie

Maschinenbau

Luft-, Wasser-, Schienenfahrzeuge

Metallerzeugnisse

Elektrische Ausrüstungen

Metallerzeugung und -bearbeitung

Industrielle Produktion im Organisationsbereich der IG Metall

Veränderung Mai 2009/08 in Prozent (arbeitsstündlich bereinigt)

Quelle: Statistisches BundesamtSource: Federal Bureau of Statistics

Industrial Produktion in the sectors of IG Metall

rate of change May 2009/08 in %

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Scenarios: Threat of job losses in the German Metall and Electrical Industry

Depression Stagnation Slow Increase Fast Recover

2009 - 549.434 - 366.289 - 366.289 -366.289

2010 - 96.517 - 75.822 - 32.966 - 16.483

2011 - 45254 - 16.104 - 16.318 0

2012 - 44.575 - 16.023 -16.237 16.401

2013 - 29.271 - 15.943 - 16.155 16.483

total Effects on

employment

- 765.052 - 490.182 - 447.966 - 349.889

Source: Economic Department of IGM

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Effects of the crisis upon collective bargaining

Steel collective bargaining round Spring 2009. Employers idea: wage freeze! But Effective defence by IG Metall!

But next CB campaing in M+E sector will happen in worse conditions (Beginning 2010).

Possible demands: secure income and employment.

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Instruments in the crisis

Collective bargaining policy alone can not stop the economic crisis!

It‘s necessary to fight the crisis with the with instruments of economic policy.

Instruments of collective bargaining can in the first step only moderate the situation of the affected workers (first a defensive instrument).

Prospect: Collective bargaining policy as element of stabilizing the economic situation:• Strengthen the domestic market by securing income especially during

the crisis.• Fair distribution of existing labour volume.

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Company Policy Instruments

First measures when first indicators of the crisis appeared in the industrial sectors (late summer 2008):

Reduction of overtime.

Reduction of flexitime account.

Reduction of agency work (minefield for trade unions: agency workers were the first victims of the crisis, decreasing number of agency workers from July 2008 till April 2009 aprox. 300.000!)

All these measures in autumn 2008 were not enough!

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Short time (1)

Instrument with a time limit to avoid job losses.• Maintain the skilled labour force.• Maintain the performance of the company.• Have high flexibility in the company.• Secure jobs.• Part compensation of reduction in wage.

Conditions: short time allowance (STA) can be introduced when the reduction of labour volume due to:• temporary situations,• inevitable situations,• situations for economic reasons,• the appearance of a reduction in wages.

All workers with a labour contract which includes a social security contribution and who are not layed off have the right to STA.

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Short time (2)

The employer alone has to pay the social security contribution for the short time allowance (unlike the normal wage: employers and employees share together).

From 01.02.2009 the employer receives a 50% reimbursement for the social security contribution on short time allowance.

From 01.07.2009 the employer receives 100% reimbursement for the social security contribution on short time allowance.

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Short time (3)

Maximum period of short time allowance: 24 months, condition short time must start latest in December 2009.

IG Metall has supported the demand to prolong the period of short time allowance from 18 to 24 months. Change of legislation in 29th of May 2009.

Volume of short time allowance in relation to the lost net wage:• 60% for employees without children• 67% for employees with children

To secure the income in a better way IG Metall demands additional payment at company level on the net wage plus short time allowance (general collective agreement BaWü or company agreements).

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Short time (4a)

actualnet wage

1.956,34

former net

wage

2.104,05

short time allowance

98,97

net wage short time allowance

Example: gross wage: 3000 €, employee tax class III, ; reduction 10 %

total netto: 2.055,31

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Short time (4b)

Calculation of short time allowance with part reduction and complete reduction

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Short time (5)

27 68121

288

649726

71130

270

572

1.076

1.247

Oct 08 Nov 08 Dec 08 Jan 01 Feb 09 Mrz 09

M+E Industry all sectors

Number of employees in short time (in 1000)

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Use qualification offensivly

Use the „quiet period“: qualification in times of short work: Secure the future of employees and companies.

Possibilities for sponsored qualification during short time created by stimulus package II:• Reimbursement of complete social security contribution, if the employee partcipates

in a qualification.

• Costs of qualification are covered partly or completely by the Bundesagentur für Arbeit (Federal Labour Office).

Qualifications obliged by law are not covered (e.g. accident prevention). Qualifications, which would have been done by the company also without public subsidies (e.g. qualification needed because of new products and new machines).

Collective agreement „Short work, qualification and employment“

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Collective agreement: Secure employment

Use when the period of short time allowance is due to expire.

TVBesch permits the reduction of working time to 30 hours per week in West Germany and to 33 hours per week in East Germany.

Employees maintain their status as full time workers and receive during the contract protection against job losses at company level .

Reduction of wages in relation to reduced working time.

Reduction of 5 hours means wage reduction of 14,3 percent.

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Collective agreements during the crisis: Metall

+ Electrical Agreement 2008

After twentythree hours of negotiations, a pilot agreement about pay increase was concluded on the 12th of November 2008 in Sindelfingen (region of Baden-Württemberg).

Pay increase • One-off payment of 510 €(which does not enter into the pay scale)

510 € one-off payment (170 € each month) for the period 1st of November 2008 until 31st of January 2009

that is about 5.5 % increase for the reference pay (pay of a skilled worker, “Ecklohn”).

• Pay Increase of 4,2 % which enters into the pay scale: 2.1 % for the period: 1st of February 2009 until 30th of April 2009:

An additional increase of 2.1 % for the period: 1st of May 2009 until 30th of April 2010 (both periods together amount to 4.2 % calculated against the reference period of October 2008)

Option: At company level, the beginning of the second period of pay rise (May until April 2010) can be put off until the 30th of November 2009. It depends on the respective economic situation of a company. Management and works council have to negotiate and to conclude a works agreement.

• Additonal lump-sum payment (which does not enter into the pay scale): 122 € lump-sum payment in September 2009

The period of validity of the whole agreement lasts 18 months. The agreement ends on 30th of April 2010 and was adopted in all the other regions.

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Collective agreements during the crisis: Steel

Agreement 2009 – Secure wages and employment

Secure and increase wages stabilize the internal market in the crisis!• One-off payment 350 € for 2009.• Apprentices recive 50 € for 2009.• 2,0 % Wage increase beginning 1st of January 2010.

Improvment of TV Besch (part compensation of wage reduction)• From 1st of April all employees receive compensation as shown below:• 33 hours + ¼ hour• 32 hours + ½ hour• 31 hours + ¾ hour• 30 hours + 1 hour• 29 hours + 1 ¼ hour• 28 hours + 1 ¾ hour

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3,9 3,94,1

4,4 4,4

4,9

4,5

3,8

3,3

3,7

4,7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Prognose

Quelle: Bundesagentur für Arbeit, Prognose: Frühjahrsgutachten 2009

Arbeitslosigkeit steigt wieder anArbeitslose in Millionen

Threat: Job losses after Summer break 2009

Number of uneployed will increase

Unemployed in M.Forecast

FB Tarifpolitik, Ressort Europa Vorstand

Collective Bargaining Department/European Wage Policy

Uwe Fink, Tel.: +49/69/6693-2151, [email protected]

Thanks for your attention!

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