September 2012 –Partners Meeting

IntroductionManaging workforce change:

Strengthening public services social dialogue in an era of austerity

Actions (1/02/12 – 28/02/13)1. Meeting with EU representatives (Feb 2012)

2. National stakeholder meetings (Summer 2012)- Country case studies

3. National reports (September 2012)

4. Comparative Report (Draft: December 2012)

5. Conference: Friday 22nd Feb 2013 (Friday 1st Feb 2013)

6. Final Reporting: February 2013

Objectives of the Day 1. Present/discuss draft national reports:

- revising national reports - engagement with questions/model

2. Comparative national report

3. Conference – timing/approach/attendance

4. Longer term issues: - publications - conference participation- future research plans

Research Questions Examine changes in employment, terms and conditions,

patterns of work organisation since 2008/9

How have austerity measures been designed and implemented?

How have different national/sectoral institutions of involvement influenced the process and outcomes of austerity?

Initial Propositions: A) stronger institutions = more acceptable IR change B) austerity overwhelms scope for consensual change

Drivers of Austerity

BudgetsPolitics

Technology Austerity Measures

Pay freeze/job loss/service

redesign

Framework to analyse austerity measures and the role of social

dialogue

outcomes Economic Social PoliticalVoice

Social Dialogue Legal rules & bargaining structures

Political and economic characteristics size/scope of public services Source: adapted from

Dornelas et al 2011

Initial Findings Austerity

• The crisis ‘austerity’ as a driver of change? - in some cases, but strong caveats ... timelags - reinforcement of previous reforms

• Variation between countries:- severity of deficit/debt- political ideology- legacy of earlier reforms – appetite/need for reform

• Other drivers: - demography - technology?

EU 27 CZ DK FR IT NL UK25.0

35.0

45.0

55.0

65.0

75.0

85.0

95.0

105.0

115.0

General Government Consolidated Gross Debt

2007

2008

2009

2010

2011

% GDP

Source: Eurostat

EU27 CZ DK FR IT NL UK-11.5

-9.5

-7.5

-5.5

-3.5

-1.5

0.5

2.5

4.5

General Government Deficit/ Surplus

20072008200920102011

% GDP

Source: Eurostat

Measures • Wage freezes:

- freeze of pay scales

• Wage cuts: - targeted at higher earners (not CZ)- pension reforms

• Employment reductions:- via non-replacement ratios – attrition (FR/IT)- redundancies/severance (UK)

• Work organisation:- temporary employment

Social Dialogue National Level

• Little input from employers/unions in formulation - legitimacy: direct public appeals/fiscal rules

• Hollowing out of national industrial relations?- legislative/budgetary instruments dominate - wage freezes/cuts severely limit ‘bargaining’- shift towards single-employer level

• Sectoral level – generally similar trends?

Social Dialogue Employer level LG

• Central control exercised via financial envelopes

• Scope for employer choice:- severity of cuts - role of differing institutional rules- union approach cooperative/confrontational- type of services provided

• Employer policy:- performance management, outsourcing productivity deals

Outcomes • Wage moderation and reductions

• Employment reductions

• Social dialogue is weak at national level - more of a role at LG level – ritual?

• Mobilisation:- stronger in FR, UK (less dialogue)...limited results

• unintended consequences – morale, staff shortages

Conclusions 1 • Austerity: a factor of many

• Social dialogue: a return to unilateralism? - LG Employer level – concession bargaining/imposition

• Actors: - Unions – weakened & being delegitimised? - Employers - tougher stance

Conclusions 2 • Variations between countries:

- severity of pressure/cuts (FR/IT, NL); govt ideology (Fr/UK) - within local government as well as between countries

• Quantitative: break with past – cuts • Qualitative: reforms more path

dependent