Managing Change: Trade Union Movement in Central

and Eastern Europe

Evelin Toth Mucciacciaro, ACTRAV Europe, ITC-ILO, 12 February 2007, Turin

Literature: Trade Union Strategies in Central and Eastern Europe, Dimitrova, Vilrokx, ILO, 2005

General Info about Europe World’s second smallest continent in terms of area (2% of the

Earth’s surface) Population: 727 mil. (world’s third largest continent) Includes 48 countries (27 are members of the European Union – the

largest political and economic entity by area and population/492.8 million inhabitants)

the world’s largest economy with an estimated nominal GDP of 13.4 trillion USD

Global Competitiveness Report (2006-2007) 7 out of 10 most competitive economies in the world are from Europe (CH,FI, SE, DK, DE, NL, UK)

Communist nations in Eastern Europe

Soviet Union’s expansion in EE

Warsaw Pact Socialist economies

Capitalist countries in Western Europe

Partnership with United States European Union (ESCS, 1951;

EEC, 1957; 1992 EU) NATO Free trade, open market

Historical backgroundDivision in two major political and economic blocksConflict, tension and competition between East and West

Beginning of Transition to Democratic Society and Market Economy

The fall of the Berlin Wall – Turning point in CEE history towards democracy (1989)

Transition from one-party rule of the communist party to democratic pluralism (first free elections)

Freedom of speech Freedom to profess religious belief Independent judiciary Transition to market economy Transition from TU controlled by the

state to independent trade union movement

1991 – dissolution of the Soviet Union

Solidarnosc

1980 - birth of ,,Solidarnosc’’, the independent self-governing labour union ,,Solidarity’’ – leading actor of change

Strike of shipyard dockers on the Baltic Sea – political dimension (against poverty, for pay rises, for freedom of the press and speech, right to strike, right to organise free and independent trade unions)

Solidarity’s influence throughout the countries of the Central and Eastern Europe

www.solidarnosc.org.pl

Changing Role of Trade Unions

Trade union activity shaped by economic, political and social context

DILEMMA: Oppose or support modernisation of economy knowing that there will be negative social consequences

Opposition = exclusion from participation in strategic decision-making in national reform, risk of long-term marginalisation

Support = participation and responsibility for success/failure

Immediate interests of members sometimes had to be sacrificed in the name of a long-term goal

Central and Eastern Europe Before Transition Centrally-planned economy

Enterprises protected against the impacts of the world markets

Centrally organised production and distribution

Administrative decisions determine resource allocation and prices

Strongly regulated labour markets

High employment and income security and job stability for the workers

Full employment

High union density due to compulsory membership

1990s in CEE – Decent Work Deficit Privatization of state-owned enterprises Opening up of national economies to global competition

Focus on competitiveness

Domestic enterprises must adjust their workforce in numbers, structure and quality to market demand

Significant job losses & persistently high unemployment rate Low salaries

Labour market flexibility

Changes in labour legislation

Poor-quality jobs in informal economy Poor law enforcement

Job insecurity

Violations of trade union rights

ESCESCEmployers’ Associations

Trade Unions

Government

TripartismSocial partnership – mechanism for achieving

the goal of economic growth and social progress

Economic and Social Reforms

Focus on competitiveness of economy and creation of business-friendly environment at the expense of labour and social rights

Social reforms: health, pension …

Major impact of neo-liberal approach of World Bank and International Monetary Fund

Influence of European Union

European social model – vision of society that combines sustainable economic growth with high-level living and working conditions

International co-operation International recognition of CEE unions by ICFTU and WCL Merger of ICFTU and WCL into ITUC

Pan-European Region Council – to be established in March 2007 – structure for ITUC affiliates in Europe

From 1995: integration of CEE unions to ETUC/European Trade Union Confederation; it currently comprises 81 member organisations, from a total of 36 countries in Europe, and 12 industry federations. ETUC represents the

interests of 60 million organized workers at European level www.etuc.org ILO played a major role in promoting social partnership in CEE (research,

expertise, policy advise)

Trade Union Density

0

10

20

30

40

50

60

70

80

90

Perc

ent

1995

2004

LOSS OF MEMBERSHIP

Pluralism and fragmentation of TU movements – weakened TU position, TUs fighting each other

In CEE, 75% of workers are not unionised and are left outside the scope of present social dialogue

Objective reasons: bankruptcy and liquidation of enterprises, reduction of number of workers, a spilling over of labour into the private and shadow sectors of the economy

Restructuring of enterprises, their fragmentation into small enterprises

Anti-trade union activity of employers

Formation through mass media of a negative opinion of trade unions

ORGANISING IN CEE LACK OF EXPERIENCE IN THIS FIELD

LACK OF PROFESSIONAL ORGANISERS

EXISTING TRADE UNION STRUCTURES ARE NOT FIT FOR ORGANISING

LITTLE OR NO BUDGET FOR ORGANISING

NO STRATEGIC PLANNING OF RECRUITMENT CAMPAIGNS

DIFFICULTIES IN ORGANISING IN NEW SECTORS OF THE ECONOMY, ESPECIALLY IN INFORMAL ECONOMY

SMEs, MNEs …

CONSOLIDATION OF TRADE UNION MOVEMENTS Vision of trade union in the future (2010, 2020…)

Reflexive capacity of trade unions – internal debates, self-analysis and analysis of environment

Need for constant and rapid adjustment to change

Need for capacity-building and expertise to address the content of economic and social policies and offer alternative solutions

Not rely on ,,borrowed experience’’ – find one’s own way adapted to the national context

Build capacity at all levels for continuous negotiations on salaries and working conditions

Need for more ambitious collective bargaining on a wider spectrum of topics

Potential of ,,social pacts’’

2005 Eurodemonstrations inBrussels, the capital of Europe

EURODEMONSTRATIONS