European Industrial Relations (IR)

University of Applied Sciences Kehl

Europäisches Verwaltungsmanagement

09 Mai 2015

Christian Welz

christian.welz@eurofound.europa.eu

Outline

A. EU at a glance

B. Diversity of national IR regimes

C. Europeanisation of IR regimes?

a. cross-sector level

b. sectoral level

c. company level

D. Impact of the crisis on IR regimes

E. Discussion

A. Primary EU law

• 1952: Treaty of Paris (ECSC)• 1958: Treaties of Rome (EEC, EAC)• 1987: Single European Act (Common

Market)• 1993: Treaty of Maastricht (Euro,

ESD)• 1999: Treaty of Amsterdam• 2003: Treaty of Nice• 2009: Treaty of Lisbon (TEU/TFEU)

Evolution of European Industrial Relations

1950 1960 1970 1980 1990 2000

European Company Statute

EWCs

Coordination of bargaining

Macroeconomic Dialogue

Social Dialogue

Employment Strategy

European Integration

EC

SC

Trea

ty o

f R

ome

SE

A

Maa

stric

htA

mst

erda

mN

ice

Art.48/119

• •Standing Employment Committee

•Val Duchesse

•

1st EMF conference•1st company agreement

• 1st draft

Community method

EC

EP

proposal prop

osal

ordinary / special legislative procedureCouncil

European social dialogue

EMP

EC

TU

consultationcons

ulta

tion

“bargaining in the shadow of the law”

B. Diversity of national IR regimes

Definition of industrial relations

industrial relations (IR)  “the focal point of the field (…) is the employee-employer

relationship.” (US Social Science Research Council 1928)

“(…) the consecrated euphemism for the permanent conflict, now acute, now subdued, between capital and labour.”(Miliband,1969, 80, cited by Blyton/Turnbull, 2004, 9)

“The central concern of IR is the collective regulation (governance) of work and employment.” (Sisson 2010)

environment

political

legal

economic

societal

actors

employers

trade unions

governments

processes

collectivebargainingparticipation

industrialactionsettlement of disputes

outcomes

collective agreements

labour legislation

outputs > impacts > inputs

pay, WT, productivity, employment, job security, labour peace…

inputs outputs

System of Industrial Relations

Industrial relations regimes

• Liberal market vs. coordinated market economies

Peter Hall and David A. Soskice, 2001,

Varieties of Capitalism: the institutional foundations of comparative advantage,

Oxford University Press.

Liberal Market Economies

• UK– corporate governance: outsider shareholder dominated;

performance represented by current earnings and share prices – employee relations: short term, market relations between employee

and employer; top management has unilateral control of the firm– industrial relations: employer organisations and unions relatively

weak; decentralised wage setting; insecure employment (“hire and fire”; fluid labour markets)

– vocational training / education: vocational education offered on market; labour force has high general skills

– inter-firm relations: market relations, competition; use of formal contracting and subcontracting relationships.

Coordinated Market economies

• DE– corporate governance: long-term bank-dominated insider systems;

cross-directorships; cross-shareholding; – employee relations: long term, formalised participation of

employees; consensus decision-making with management– industrial relations: trade unions and employers organised;

industry-wide collective bargaining and pay determination; employment relatively secure

– vocational training: elaborate industry-based training schemes; labour force has high industry-specific and firm-specific skills

– inter-firm relations: development of collaborative networks; cooperation among firms in diffusing technologies

Industrial relations regimes

• 5 geographical clusters

Visser, Jelle, 2008, in: EC, Industrial Relations in Europe Report, Brussels, DG EMP.

IR regimeCentre–West

social partnership

North

nordic corporatism

West

liberal

pluralism

 

South

polarised

pluralism

Centre–East

transition economies

MS

Germany

Austria

Netherlands

Belgium

Luxembourg

Slovenia

Sweden

Denmark

Finland

United Kingdom

Ireland

Cyprus

Malta

Greece

Spain

Italy

France

Portugal

Bulgaria

Czech Republic

Estonia

Latvia

Lithuania

Hungary

Poland

Romania

Slovakia

role of SPs in IR

institutionalised institutionalised rare/event-driven irregular/politicised irregular/politicised

role of State in IR

‘shadow’ of hierarchy limited non-intervention frequent intervention organiser of transition

employee representation

dual unions unions variable unions

level of CB sector sector company sector/company company

Trade Unions

Intersectoral level

Government

Employers

Intersectoral level

Sectoral level Sectoral level

Company level

Levels of CB - wages

Company level

BelgiumFinland

AustriaDenmark1France1GermanyGreeceIreland1ItalyLuxembourg1NetherlandsPortugal1Spain1Sweden1

Denmark2France2Ireland2Luxembourg2 Portugal2Spain2Sweden2UK

Trade Unions

Intersectoral level

Government

Employers

Intersectoral level

Sectoral level Sectoral level

Company level

Levels of CB - wages

Company level

Slovenia 1

Bulagaria1Cyprus 1Slovakia 1Slovenia 2

Bulgaria2CroatiaCyprus 2Czech Rep.EstoniaHungaryLatviaLithuaniaMaltaPolandRomaniaSlovakia 2

Trade union density _ 2011 v 2012 EIRO/ETUI 2013

FR LT PL EE HU

LV CZ SK ES NL DE PT BG

UK

SI EU IE AT HR

RO

LU IT BE MT

DK

SE FI

2011 8 10 12 11 11 12 16 16 15 21 22 20 18 26 27 31 34 34 35 40 37 36 52 59 67 70 68

2012 8 9 10 11 11 12 14 15 16 17 18 20 22 26 27 29 31 33 35 35 37 37 50 57 67 70 74

5

15

25

35

45

55

65

75 % of workforce 2011 2012

Collective bargaining coverage _ 2011 v 2012 EIRO/ETUI 2013/14

LT LV HU

PL BG EE CZ SK UK

RO

IE DE CY LU EU HR

DE MT

GR

DK

ES IT NL PT SE FR FI SI BE AT

2011 15 17 23 25 33 33 34 35 37 38 44 49 52 54 56 60 61 61 65 65 68 80 84 90 90 90 90 96 96 100

2012 15 16 23 29 29 33 33 35 29 38 44 36 0 59 51 60 53 61 0 65 58 80 80 12 88 92 93 75 96 97

10

30

50

70

90

110% of workforce 2011 2012

Average hourly labour costs (2012) EIRO 2014

BG

RO

LV LT PL HU

SK EE CZ PT GR

SI CY

EU UK

ES IT IE DE AT FI NL SE FR LU BE DK

2012

3 4.4 5.25

5.8 7.4 7.5 8.3 8.4 10.6

12.2

14.9

14.9

18.2

20 20.1

21 28.1

29.1

29.6

30.5

30.8

32.28

33.3

34.3

34.6

37.2

38.1

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5 EUR

Monthly minimum wage _ 2011 v 2012 EIRO 2013/14

BG RO LV LT CZ EE SK HU HR PL PT GR EU ES MT SI CY UK FR BE IE NL LU

2011

128 158 285 232 310 290 327 338 385 345 485 585 661 641 685 748 855 1090

1425

1415

1461

1446

1757

2012

145 157 287 290 312 320 337 372 372 393 485 683 712 753 763 763 870 1264

1430

1443

1461

1485

1874

100

300

500

700

900

1100

1300

1500

1700

1900 EUR 2011 2012

Real labour productivty (2012) EIRO 2014

EE SI LV LT PL CZ MT CY EU IT BE AT FI DE SE FR NL IE

2012 1.7 2.4 8.2 10.3 10.4 13.2 14.5 21.5 27 32.2 37.2 39.5 39.5 42.6 44.9 45.4 45.6 50.4

5

15

25

35

45

55EUR per h worked

Number of working days lost _ 2013 EIRO 2014

BG CZ HU LT LU LV MT PL RO SK HR NO AT SE IE FI DE BE DK UK CY ES

2013 0 0 0 0 0 0 0 0 0 0 2 3 3 9 15 26 150 174 379 444 605 1099

100

300

500

700

900

1100 in 1000 days

Cross-sector social partners in the EU

• 108 trade unions

• 134 employers associations

Cross-sector social partners in the EU EIRO 2014

LV AT SK LT NL EE PTH

R FIUK DK SI

ESRO

0

5

10

15

20

25

30

1 1 2 3 3 2 3 3 3 2 2 3 3 4 53 3 3 4 4 4 4

7 6 7 6 5

12

2 33 2 2 4 3 3 3 5 5 4 4 3 2 5 5 5 4 5 5 6

4 6 5 7

14

15

TU EO

C. Europeanisation of IR regimes?

Val Duchesse

Intersectoral social dialogue

Sectoral socialdialogue

EWCsIFAs_EFAs

SEs

Cross industry

Sectoral

Company

national social dialogue

European Industrial Relations- level linkages

Definitions of SD

• articles 152, 154 and 155 TFEU• developed in EC communications and decisions

• discussions, consultations, negotiations and joint actions undertaken by the social partner (SP) organisations

• representing the two sides of industry (employers and trade unions)

Forms of ESD

• bipartite autonomous dialogue between employers and trade

unions e.g. Social Dialogue Committee (SDC)

• tripartite tripartite SD involves the EU (EC, and where appropriate,

Council and European Council) as well as the SP e.g. Tripartite Social Summit (TSS) art. 152 TFEU

Forms of ESD

bipartite dialogueemployers – trade unions

tripartite concertationpublic authorities

(EC, Council) + trade unions + employers

e.g. TSS

European Social Dialogue

sectoral

covering workers + employersof 43 specific sectors

= 75% of the workforce /+ 150 mio. workers

cross-industry

covering the economy as a whole

workers + employers

Fora of ESD

• Social Dialogue Committee (SDC)main body for bipartite SD meets 3-4 times/year to discuss social topicsconsists of max. 66 representatives - equally divided

between employers and trade unions can set up technical working groups adopts and follows up the results of negotiations

between employers and trade unions takes part in social dialogue summits

Fora of ESD

• Tripartite Social Summit (TSS) main political forum for consultation of the SP given its high-

ranking composition (presidential level) and proximity to the European Council decision-making process

twice a year (March/October European Councils) debate on economic and social policies

• Macroeconomic Dialogue (MED) high-level forum (ministerial level) for the exchange of views

between the Council, EC, ECB and SP created by the 1999 Cologne European Council to contribute to the

growth and stability goals of the macroeconomic framework

cross-sector level

cross - industry

Employers

- BUSINESSEUROPE

- European Centre of Employers and Enterprises providing Public Services (CEEP)

- European Association of Craft, Small and Medium-Sized Enterprises (UEAPME)

Trade Unions

- European Trade Union Confederation (ETUC)

- CEC-European Managers

- EUROCADRES (Council of European Professional and Managerial Staff)

environment

political

legal

economic

societal

actors

BUSINESSEUROPE

UEAPMECEEPETUC

--------------------------EU institutions

processes

ESD under EU law

154/155 TFEU

outcomes

frameworkagreements

EU labour law

& other texts

implementation

a) Council decisionb) nat. procedures + practices

specific to SP and MS

inputs outputs

ESD under articles 154/155 TFEU

proposal in the social policy field

where appropriate,EC follow-up

where appropriate,EC follow-up

EC art. 155art. 154

1. consultation on the direction

opinion

2. consultation on the content

opinion

failure

if EU actionis desirable

negotiation

nine months, unless extended

agreement

social partners

Agreement implementation

autonomous route

according to procedures and practices specific to management and labour and the MS

legislative route

1. submitted to the EC2. EC makes proposal3. EP informed4. Council decision

= extension erga omnes

 

Outcomes of the European cross-industry SD  

    

Agreements implemented by Council decision

[implementation by MS / monitoring by the EC]

   

1. Framework agreement on parental leave (1995)2. Framework agreement on part-time work (1997)3. Framework agreement on fixed-term work (1999)4. Revised framework agreement on parental leave (2009)

 

Autonomous agreements implemented by procedures and practices specific to management and labour and the MS

[implementation and monitoring by the SP] 

 

1. Framework agreement on telework (2002)2. Framework agreement on work- related stress (2004)3. Framework agreement on harassment and violence at work (2007)4. Framework agreement on active inclusion (2010)

• is a form of (…)

work, using IT, in the context of an employment contract/relationship, where work, which could also be performed at the employers premises, is carried out away from those premises on a regular basis.” (art.2)

Autonomous agreement: telework (2002)

heteronomousautonomous

soft law

hard law

FI, SE

NL LV, IE , UK

AT, DE, DK, EL, ES, IT

BE, FR, LUCZ, HU, SKPL PT, SI

tripartite processbipartite process social partner consultation

legislation without SP consultation

code of practice/guidance

collective agreement

legislation

extension of CA

voluntary agreement

Telework agreement: implementation

 

Failures of the European Social Dialogue

     

Failures resulting in legislation   

1. European Works Councils

2. Reversal of burden of proof

3. Information and consultation

4. Temporary agency work

e.g. revision of working time directive

  

Failures of the ESD and of legislation 

 

sectoral level

Sectoral Social Partners: 15 European Industry Federations (e.g.)

• EFBWW European Federation of Building and Woodworkers

• ECF European Federation of Food Workers• EFFAT European Federation of Food, Agriculture and

Tourism Trade Unions• EPSU European Federation of Public Service Unions• FST Federation of Transport Workers• ETUCE European Committee for Education• UNI-Europa Union Network International• EEA European Alliance of Media and Entertainment• EFJ European Federation of Journalists

• IndustriALL ETUF-TCL + EMCEF + EMF

Sectoral Social Partners: 65 employers’ organizations (e.g.)

• CEEMET Council of European Employers of the Metal, Engineering and Technology-

Based Industries• ECSA European Community Shipowners’

Association• Eurociett European Organisation of CIETT

(International Confederation of Private Employment Agencies)

• FERCO Federation of Contract Catering Organisations

• HOSPEEM European Hospital and Healthcare Employers Association an

• ……………

43 Sectoral Social Dialogue Committees

- Agriculture- Audiovisual- Banking - Catering- Central Admin- Chemical industry- Civil aviation- Cleaning Industry- Commerce- Construction- Education- Electricity- Extractive Industries- Food and Drink- Football

- Footwear- Furniture- Gas- Graphical sector- Horeca- Hospitals- Inland Waterways- Insurance- Local and regional Government- Live performance- Maritime Transport- Metal- Paper- Personal services- Ports

- Postal services - Private security - Railways - Road transport - Sea fisheries- Shipbuilding- Steel- Sugar- Tanning and leather- Telecommunications- Temporary agency work- Textile and clothing- Woodworking

sectoral: 15 industry federations (e.g.)

• EAEA European Arts and Entertainment Alliance • ECA European Cockpit Association• EFBWW European Federation of Building and

Woodworkers• EFFAT European Federation of Food, Agriculture and

Tourism Trade Unions• EFJ European Federation of Journalists • EPSU European Federation of Public Service Unions• ETF Federation of Transport Workers• ETUCE European Committee for Education• FIFPro International Federation of Professional

Footballers' Associations – Division Europe • industriALL European TU (ETUF-TCL + EMCEF + EMF)• UNI-Europa Union Network International…

sectoral: 65 employers organisations (e.g.)

• CEEMET Council of European Employers of the Metal, Engineering and Technology- Based Industries

• Coiffure EU European Association of Employers' Organisations in Hairdressing

• EBU European Broadcasting Union• Eurociett European Confederation of Private

Employment Agencies • FERCO Federation of Contract Catering

Organisations• FoodDrinkEurope Europe's Food and Drink Industry• HOSPEEM European Hospital and Healthcare

Employers Association

Categories of texts

Outcomes by type of text (03/2015)

457

115

84

47

43

36

121810

98joint opinions

declarations

tools

procedural texts

follow-up reports

guidelines

autonomous agreements

policy orientation

codes of conduct

frameworks of action

agreements > Council decision

Outcomes by theme (03/2015)

176

90

86

8662

62

59

32

27

24

20

2016

1413 12 10 97 7 4 3 economic & sectoral policies

social dialogue health and safety training & life long learningemploymentsocial aspects of EU policiesworking conditionscorporate social responsibilitygender equality sustainable developmentmobilityworking timeenlargementrestructuringpublic procurementharassmentageing workforceundeclared workteleworkyoung peopleracismdisability

Outcomes by addressee (03/2015)

488

162

153

36

EU institutions / national authori-ties

national organisations

EU social partners

companies

Agreements: Council decisionsectoral / cross sector

1. Agreement on fishing 20122. Health & safety in hairdressing 20123. Working time (WT) inland waterways 20124. Prevention from sharp injuries 20095. Parental leave (revised.) 20096. Maritime Labour Convention 20087. Working conditions of mobile railway workers 20048. WT mobile staff aviation 20009. Fixed-term work

199910. WT seafarers 199811. Part-time work 199712. Parental leave 1995

Autonomous agreementsmulti / sectoral / cross sector

1. Minimum contract requirements in football 20122. Inclusive labour markets 20103. Certificate for hairdressers 20094. Combatting violence & harassment 2007 5. Good handling of crystalline silica 20066. Combatting stress 20047. Driving license railways cross-border services 20048. Telework 2002

Failures of the ESD

1. European Works Councils

2. Reversal of burden of proof

3. Information and consultation

4. Temporary agency work

5. Revision of the WT directive

company level

• European Works Council • European Company Statute• International/European Framework Agreements

European Works Councils

• EWC directive (94/45/EC recast 2009/38/EC)• 2204 companies covered

1000 employees 150 in 2 Member States

• 1056 active EWCs in 2014 8 HQs in IE: Aer Lingus, Ardagh, Board Mona, CHR, Glen Dimplex,

James Hardie, Kerry Group, Smurfit Kappa 58 EWCs > IE chosen as country of law applicable

• process must be triggered at least 100 employees in at least 2 Member States (written request)

• 60 % of workforce / 14.5 million covered

MS with active EWCs in 2013 EIRO 2014

CY CZ GR PT HU LU ES AT DK IE FI IT EU SE NL BE FR DE

2013 1 1 1 1 3 17 18 34 41 58 62 82 85 111 119 181 263 372

25

75

125

175

225

275

325

375 %

European company statute

• European Company Statute (EC 2157/2001) involvement of employees (2001/86/EC) SE works councils

• over 2239 SEs registered in 2014 10 in IE > 2 with more than 5 employees

e.g. Aviva, Atrium, Axis RE, Axon Neuroscience, Carthago Invest, Paypal 289 normal SEs

= activities + 6 employees (Allianz, Porsche, Strabag) more than 309 empty/micro SEs

= activities + less 5 employees 1562 UFO SEs

> little information

International / European framework agreements

• IFA

company agreement signed by a MNC and a Global Union Federation (GUF)

• EFA

company agreement signed by a MNC and a European Industry Federation (EIF) and/or a EWC

International Framework Agreements in 10/08

0

2

4

6

8

10

12

14

16

18

EFA _incidence

• 73 EFAs• 52 co-signed by and EWC• 42 signed by an EWC only• leader: France with 26 EFAs in 14 companies

Suez 5, Air France 4, Vivendi 3,

Content of EFAs

0 5 10 15 20 25

CSR

Training

Equal opportunities

Sub-contracting

Financial participation

Fundamental rights

Other

Data protection

HRM + Social Management

H&S

Social dialogue

Restructuring

D. Impact of the crisis on IR regimes

1. Actors u n d e r p r e s s u r e

2. Processes u n d e r p r e s s u r e

3. Outcomes u n d e r p r e s s u r e

4. Conclusions

5. Epiloque and discussion

Table of content

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)

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

Processes

PROCESSES - SUMMARY

Type of change MSMain 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 mechanisms

 

Minimum wage setting CY DE EL ES HR HU IE PL PT SI SK

Indexation BE CY ES IT LU

Country Multi-employer (MEB) or Single-employer (SEB) bargaining prevalent   2008 2011

Austria MEB MEBBelgium MEB MEBBulgaria Mixed MixedCroatia MEB MEB

Cyprus Mixed MixedCzech Republic SEB SEBDenmark MEB MEBEstonia SEB SEBFinland MEB MEB

France MEB MEBGermany MEB MEBGreece MEB MEBHungary SEB SEBIreland MEB SEBItaly MEB MEBLatvia SEB SEBLithuania SEB SEBLuxembourg MEB MEBMalta SEB SEBNetherlands MEB MEBNorway MEB MEBPoland SEB SEBPortugal MEB MEBRomania MEB SEBSlovakia Mixed MixedSlovenia MEB MEBSpain MEB MEBSweden MEB MEBUnited Kingdom SEB SEB

 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

Employer density rates 2013

Eurofound 2015

Membership of employers’ organisations participating in collective bargaining (%)

Trade Union density rates 2013 in %

Collective bargaining coverage 2002 - 2013

• 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 improve 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

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 MSAT, DE, FI, IT, PT, SE

changes in opt-out clauses 8 MSBG, CY, EL, ES, FR, IE, IT, SI

•

Changes in opening/opt-out clauses

• 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

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 MSBG, DE, EL, IE, PT, RO, SK, IT

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

Outcomes

Impact MSinconclusive 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

No. of CAsEIRO 2014

AT BE BG CY CZ DE DK EE EL1 EL2 ES FR IT LT LU LV MT NL PL PT RO SE SK UK

2008 2009 2010 2011 2012 2013 2014

sector CA194

164 166 115 46 46 72

companyCA

97 87 64 55 39 49 80

total CA 291 251 230 170 85 95 152

extension 137 102 116 17 12 9 +/_15

coverage /in 1000 pers.

1,895 1,397 1,407 1,237 328 243 246

No. of CAs in PT

• 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

• impact of the ‘troika’ in inducing changes to WSMsamongst those countries receiving financial assistance packages is clear

• government-imposed measures in these countries have substantially reconfigured WSMs

Conclusions

E. Discussion

• “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)

Discussion > labour = commodity?

• 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

Discussion

• Treaty of Versailles (1919: article 427)

first principle of the new ILO pro- claimed ‘ that labour should not be regarded merely as a commodity or article of commerce

introduced by British delegation Gompers > personal defeat

• ILO DECLARATION OF PHILADELPHIA (10 May 1944) labour is not a commodity

Discussion

• 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

• 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

Discussion: crisis > WSM and IR regimes

FI

CYIE

MT

FR AT

BG

DK SE UK

PTEL ES

SI

BE

DE

LU NL

RO

EE

SK

PLLVLT

HU

0

1

2

3

4

Industrial relations systems

Severi

ty o

f im

pact

Nordic

Central EastCentral WestMediterranean/South

Anglo-SaxonWestern

CZ

IT HR

Trend OriginRestructuring of actors megatrendDecline in trade union density megatrendPublic Sector Reform megatrend Decentralisation of collective bargaining megatrend

(crisis accelerated)Increase in opt-out clauses crisis-induced trendIncrease in opening clauses crisis-induced trendDecrease of extensions crisis-induced trendShorter duration of collective agreements crisis-induced trendDrop in volume of bargaining crisis-induced trendDrop in quality of bargaining crisis-induced trendShorter continuation of CAs crisis-induced trendReforms in wage-setting mechanisms crisis-induced trendMore adversarial industrial relations crisis-induced trend

Discussion: crisis vs. megatrends

Current challenges

1. Adequate structures and resources of the SP

2. Capacity to negotiate agreements at EU level

3. Capacity to implement agreements at national level

4. Representativeness of EU SP

5. Linkages between EU SD and national SD

6. Linkages between cross-industry and sectoral SD

7. Better involvement of the SP in the EU semester

8. Rebuilding trust ‘after’ the crisis

• http://www.eurofound.europa.eu

• christian.welz@eurofound.europa.eu

• European industrial relations dictionary

Further information

thank you!