Industrial Relations in Europe 2006

ISSN: 1680-3515

Industrial Relations in Europe [ 2006 ]

European Commission

European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities Unit F.1

Manuscript completed in June 2006 The contents of this publication do not necessarily reflect the opinion or position of the European Com- mission, Directorate-General for Employment, Social Affairs and Equal Opportunities.

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Luxembourg: Office for Official Publications of the European Communities, 2006

ISBN 92-79-02252-0

Printed in Belgium

PRINTED ON WHITE CHLORINE-FREE PAPER Foreword by the Commissioner

Last year marked all appropriate levels, in order to contributions social partners can the 20th anniver- demonstrate to all employers, workers deliver to reach the ambitious objec- sary of social and the public at large the important tive of the growth and jobs strategy. partnership at added value social partnership is able This aims to see Europe become the EU level. In to deliver. This will help in our quest most dynamic and competitive 1985 the three to modernise our economies and soci- knowledge-based economy capable cross-industry eties while respecting the commonly of sustainable development with more social partner shared European values. and better jobs and greater social organisations (UNICE, ETUC and cohesion – a global objective shared CEEP) engaged in the European Last year was also decisive for the by all major actors on the labour mar- social dialogue initiated by Jacques relaunch of the Lisbon Strategy. This ket. The crucial role social partners Delors, President of the European included an appeal to the social part- have to play in this context depends Commission at that time. Since then ners to assume their indispensable significantly on their representative the social partners have embarked on a role to reach the Strategy’s ambitious strength and capacity to join forces in large number of activities aimed at objectives by way of fostering part- a balanced way with each other and successfully building and strengthen- nerships for change at national and government at all levels, be it at Euro- ing the social dimension of the Euro- European level. With the adoption of pean, national, sector, regional and pean Union. They have promoted their second joint work programme company level. These themes are active and participative democracy in 2006-2008 discussed at the Tripartite reflected in various ways in most of their specific policy areas by develop- Social Summit in March 2006, the the chapters of this report, which ing and using a large range of different social partners have increased their builds on the research and articles tools adapted to the relevant circum- commitment to jointly address major presented in its predecessors, notably stances at cross-industry and sectoral challenges ahead. These include in 2004. It equally continues report- level. These results affect millions of issues related to the globalisation of ing on recent developments of the workers throughout the whole Union economic activities and the ageing of European social dialogue and Com- at their respective work places and the population and the impact of munity legislation regarding the hence accompany, support and these phenomena on employment labour market in a wider sense. strengthen or even initiate Communi- and working conditions in Europe. ty action through legislation. Euro- Greater involvement of social part- I hope that the material presented in pean social dialogue is a tool for work- ners at national level is required to this report and the often complex ers and employers’ representatives to make the growth and jobs strategy interplay between the various poli- participate in the European decision- work and to underpin the efforts cies, instruments and actors it identi- making process and to increase own- undertaken by the governments with- fies will again provide relevant infor- ership of the European project. It can in their national reform programmes. mation to foster mutual understand- play its part in regaining trust and ing, learning and discussion. This involvement. The partnership has pro- This is the fourth report on Industrial will contribute in a concrete way to duced very good results as this report Relations in Europe. After the not only more but also better jobs in shows. This should inspire practice in enlargement of the Union in 2004 and a competitive economic environ- the Member States. However, let me the integration of the new Member ment. The importance of this exciting also add that these efforts should still States into the Lisbon agenda it is of policy area for advancing the Euro- be stepped up in a consensual manner major importance to look again in this pean project and the results it is set to and implemented with more vigour at wider context at ways to develop the harvest can hardly be overestimated.

Vladimír Špidla Commissioner for Employment, Social Affairs and Equal Opportunities

Contents

Foreword by the Commissioner ...... 3

Editorial...... 7

Executive summary ...... 9

Chapter 1: The social partners as membership organisations: an overview of forms and trends in the Member States ...... 19

1. Trade unions ...... 19

2. Employers’ organisations ...... 32

3. Conclusion...... 38

Chapter 2: The evolving relationship between collective bargaining and law in the Member States...... 41

1. Collective bargaining as a key component of the European tradition...... 41 2. Trends and emerging legal questions in the relationship between law and collective agreements...... 46

3. Interpreting trends with regulatory schemes ...... 49

4. Conclusion...... 54

Chapter 3: Employee representation at the workplace in the Member States ...... 57

1. Representation: a specific type of employee participation...... 57

2. More than ever part of the European social model ...... 59

3. Legal provisions of information and consultation ...... 60

4. Practices...... 68

5. Conclusion...... 76

Chapter 4: Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries...... 79

1. Responding to the challenge of enlargement ...... 79

2. Commission initiatives in the new Member States ...... 79

3. Social partner initiatives with regard to enlargement...... 85

4. Initiatives by the International Training Centre of the International Labour Organisation ...... 86 5. Projects set up by the European Foundation for the Improvement of Living and Working Conditions...... 87 6. Social dialogue capacity-building projects in the candidate countries and potential candidate countries in the Western Balkans...... 88

7. Conclusion...... 89

5 Contents Industrial Relations in Europe 2006

Chapter 5: European social dialogue developments ...... 91

1. Introduction ...... 91

2. Contributing to the Lisbon objectives through tripartite consultation ...... 93

3. Policy developments in bipartite social dialogue...... 96

4. Strengthening working methods ...... 111

5. Conclusion...... 119

Chapter 6: Review of European Legislation 2004-06 ...... 121

1. Introduction ...... 121

2. Labour law...... 121

3. Health and safety of workers ...... 126

4. Equality rights...... 128

5. Free movement of workers and social security...... 130

6. Conclusion: future perspectives ...... 132

Chapter 7: Trends and potential risks in the EU labour market ...... 135

1. Driving forces: push factors and policy incentives...... 135

2. Identifying structural drawbacks...... 144

3. Vulnerability: long-term traps for some groups ...... 147

4. Conclusion...... 150

Chapter 8: Industrial relations and economic performance: an overview of research results...... 151

1. Measurements and international comparisons of performance ...... 151

2. Competitiveness and economic performances: the place of industrial relations...... 153

3. Industrial relations in Europe and the new growth regime...... 157

4. Conclusion...... 158

Editorial

With the relaunch of the Lisbon gies. Meanwhile, social partners in mon understanding of the challenges Strategy in 2005 the European Union some Member States have become we face and the solutions proposed. has made growth and jobs its priori- active in the fields of active ageing, Given the close linkage between ties for the coming years. All politi- reconciliation of family and work or action at EU and national level, the cal actors as well as all stakeholders integration of young people. Some social partners should better articu- at the European and national levels sectoral social dialogues at the Euro- late what they do at each level.’ are called upon to mobilise the pean level have also addressed these potential that lies in European soci- issues. The Commission consulted The need to combine sufficient flex- eties and in their social models in social partners on better ways to rec- ibility of the labour market and of order to create stronger growth, more oncile family and professional life employment contracts with employ- jobs and social cohesion while and on the active inclusion of the ment security for workers is key for respecting environmental sustain- people furthest away from the labour adaptation to change while, at the ability. In this context employers and market in 2006. Many NRPs largely same time, ensuring social justice. workers, the social partners, play a neglect further measures to improve The Austrian Presidency put the key role. the adaptability of workers and issue of ‘flexicurity’ on the agenda in enterprises. The Commission, there- the beginning of 2006 and the Spring The mid-term review filled the Lis- fore, called on the active involve- European Council agreed that the bon Strategy with new life as the ment of social partners when it Commission, jointly with Member Annual Progress Report 2006 con- comes to developing active labour States and social partners, will firmed. The National Reform Pro- market policies, flexibility, and reli- explore the development of a set of grammes (NRP) of autumn 2005 able and responsive lifelong learning common principles on flexicurity in outlining the three-year strategy on systems. A real breakthrough and 2007. macro and micro economic as well sufficient investment are still lacking as on employment policy are promis- on this last point. Social partners are At the Tripartite Social Summit in ing signs that the new partnership is called upon to contribute to this. March 2006, the European social already beginning to work. However, partners presented their second the strategy can only work when the The UK Presidency launched a dis- multi-annual work programme for partnership is not only between EU cussion on how European values can 2006-2008 and reconfirmed that institutions and Member States but drive modernisation in our eco- they ‘want to contribute to and pro- also includes the social partners. In nomies and societies and help to mote growth, jobs and the moderni- its Annual Progress Report of Janu- tackle key challenges in a distinc- sation of the EU social model’. They ary 2006 the Commission concluded tively European way at the occasion will strive to develop convergent that social partner involvement still of the meeting of heads of States at views on the most pressing econom- falls short in many Member States. Hampton Court in October 2005. In ic, labour market and social issues This might be due to the short time- its contribution(1) ‘European values starting from a profound analysis of frame given to draw up the NRPs. in the globalised world’ the Commis- key challenges facing Europe’s But social partners have a key role sion identifies as one common char- labour markets. On that basis, they both as participants in the process acteristic of the Member States’ will put forward joint recommenda- and as communicators of the mes- social models that ‘there is a strong tions and define a framework of sage. Therefore, the Commission tradition of social dialogue and part- actions on employment of the social expects stronger involvement of the nership between governments, partners. In addition, they intend to social partners in the governance and industry and trade unions – even if negotiate an autonomous agreement, implementation process. the detailed mechanisms vary con- either on the integration of disadvan- siderably between Member States’. taged groups on the labour market or In particular, the priority action three But like many elements of our social on lifelong learning. They will also proposed by the Commission systems, the social dialogue must keep on contributing to policy devel- (responding to globalisation and age- also constantly reform and mod- opment in the EU and they are coming) that addresses the employment ernise itself to play a role in the gov- mitted to making progress on quality dimension, will need the active par- ernance systems of the Member of work. Within this overall context ticipation of social partners. While States and the European Union. this report addresses a number of all Member States attach a high Therefore, the Commission calls for issues which are at the core of the importance to attracting and retain- a ‘renewal of the social dialogue at challenges social partners face in all ing more people in employment few all levels. It should play a full role in parts of the EU. of them have comprehensive strate- mobilising broad support and a com-

(1) Commission Communication of 20 October 2005 (COM 2005)525 final.

7 Editorial Industrial Relations in Europe 2006

They will only be able to live up to that allows for an economically real difference with respect to own- the high expectations that are put on viable and socially acceptable com- ership of the Lisbon Strategy. Their them if their organisational structure, promise. Chapter 2 reviews trends in members must get the feeling that their representativeness and their the interaction between collective they can contribute – in their field interaction patterns are adequate to bargaining and public policy. and at their level – to a European play a role at the workplace and in reform project. At the same time, participative democracy. This report For many employees flexibility is a they will only make the effort to reviews trends in membership and on reality. Self-employment, telework, engage in reforms when they are the interaction of social partners, flexible and long working hours, convinced that these are needed and particularly in Chapter 1. While fixed-term contracts or agency work pay off. Social partners have a dual there is a general trend of decreasing are spreading on Europe’s labour task of involving people in the employer organisation and trade markets. Trade unions must reach process and of delivering their con- union membership, both are still well out to new types of employees and tribution to reforms. established in the societies and the social partners have a joint economies of most Member States. responsibility to create the condi- Chapter 6 reviews EU labour legisla- The important issue of capacity tions for ‘flexicurity’ and, while tion in the period from 2004 to 2006. building in those Member States that doing so, having an eye on the possi- The developments concerning work- have gone through a transition period ble downsides of increased flexibili- ing time, health and safety regula- to a market economy and democratic ty without new forms of security. tions, instruments to fight anti-dis- system is treated in Chapter 4. Trade The Commission invited the sectoral crimination and foster equality for unions’ and employer organisations’ as well as the cross-industry social men and women as well as the fur- density as well as collective bargain- partners to actively contribute to the ther development of legal measures ing vary between Member States. debate on ‘flexicurity’. Trends and fostering the free movement of work- Enlargement has contributed to this potential risks in the labour market ers are all necessary components to diversity. are the topic of Chapter 7. enhance the quality of work and to develop a true European labour mar- The diversity of social dialogue in Collective bargaining and employee ket. As such they are a direct contri- the Member States shows that stan- participation at the company level bution to the successful implementa- dardised European solutions cannot can be an important tool to manage tion of the Lisbon Strategy. work. Common standards and shared change and to involve the workforce objectives have to be implemented in the development of the enterprise. Growth and more and better jobs rely according to national traditions. The Restructuring can be more efficient on competitiveness, which has many Lisbon Strategy acknowledges that and less disruptive if negotiated components. Chapter 8 considers the the focus for action in many areas solutions at company level are possi- contribution the social dialogue lies at the national level (or regional ble. Chapter 3 draws a picture of makes to economic performance. It or local), e.g. for employment and employee representation at the work- shows that social dialogue can make labour market policies where social place. a real contribution if it is imbedded partners must be involved. But each in a functioning structure of labour, action has an impact across borders Social dialogue at the European level employment and social protection as European societies and economies has developed an array of instru- policies. The social partners will are interdependent in many ways in ments that can ensure that actors on have to embrace strategies to speed the single market and the monetary different levels work towards shared up the transition to the knowledge and economic union. This report objectives while respecting the spe- economy while maintaining work- should contribute to the mutual cific governance structure and the ers’ employability, even if they are understanding of how industrial rela- social and economic situation in faced with differentiation and indi- tions work elsewhere. their Member States (or region). vidual acquisition of skills rather Chapter 5 describes how the Euro- than with rigid organisational struc- The relationship between collective pean social partners engage in the tures. The knowledge economy is bargaining and labour law will play Lisbon Strategy and how the results central to competitiveness and pros- an important role in the attempt to of social dialogue contribute to qual- perity. Implementing lifelong learn- move to ‘flexicurity’. Increased ity of work, training systems, youth ing, embracing education, training decentralisation and involvement of integration into the labour market, and adult learning, particularly for the legislator have implications for gender equality, active ageing as well the low-skilled, requires a coherent the autonomy of collective bargain- as to corporate social responsibility. policy and it is a prime example of a ing and the challenge is to arrive at Starting from the European Social responsibility that is shared between an appropriate institutional setting Dialogue, social partners can make a the State and the social partners.

Executive summary

The Industrial Relations in Europe France. The density rate is high in of two unskilled workers’ unions in Report 2006 builds on the work of the Nordic countries, while Spain, Denmark to form the country’s the previous report of 2004.(2) The France and most of the new Central largest union and the amalgamation first three chapters focus on industri- and Eastern European Member of six blue-collar public sector al relations in the Member States: States have comparatively low rates. unions in Finland. developments with regard to national The overall weighted average density industrial relations actors, the inter- rate in the EU is now between 25% The power and structure of employ- action between collective bargaining to 30% of wage earners, and the ers’ organisations also varies across and the law in the Member States trend in union density is clearly the Member States. Some countries, and developments in workplace rep- downward across Europe. Ten years such as Italy – with 12 cross-sector resentation mechanisms and prac- ago, one in three European workers peak organisations – have difficulty tices. The next three chapters deal was a member of a trade union, now in establishing a unified front of with European developments: con- it is one in four. Most of the EU employers’ umbrella organisations. cerning the promotion of social dia- Member States experienced a fall in In some countries, macro-sectoral logue capacity building in the new density over the period from 1995 to organisations are more significant Member States and candidate coun- 2004, with unions in Central and than general peak federations, and tries, as well as European social dia- Eastern Europe facing dramatic peak organisations do not always logue developments at cross-indus- membership losses. Union density play a significant role in bargaining. try and sectoral level and European varies notably according to certain While there is a substantial role for legislative developments. The sev- characteristics such as sector, age the peak organisations in the small enth chapter addresses forms of non- and gender: men are more likely to west European economies, in the standard working conditions in the be unionised, as are older workers. large economies – such as Germany enlarged EU, including trends and The highest union density is usually – sectoral organisations are more industrial relations perspectives on found in public administration, important. Employer organisation tackling potential risks to social health and social services with mem- density (the proportion of employees cohesion and sustainability, and the bership in the services sector the working in companies which are last one endeavours to discuss the lowest. Minority ethnic groups and members of an employers’ organisa- complex relationship between the workers in small workplaces also tion) suggests that they are generally industrial relations, and economic tend to be less organised. well-established actors in industrial performance. relations. Except for the Nordic Confronting the challenge of declin- countries, density is higher for Chapter 1: Social partners as mem- ing membership in many countries employers’ organisations than unions. bership organisations: an overview of has led the unions to introduce The (weighted) average employer forms and trends in the Member States numerous innovations. An organis- rate of organisation is approximately ing model – seeking more ‘empow- 55 to 60%. However, there are signif- Most unions continue to be organ- erment’ of the workforce, for exam- icant variations between countries. ised on a sectoral or occupational ple, by targeting specific workplaces Small west European countries like basis, with the traditionally more – is one approach. Alternatively, Austria and Belgium have a high powerful blue-collar unions losing delivering new services such as legal degree of associational power on the influence and the white-collar unions and careers advice has been attempt- employers’ side, while the Czech gaining significance. In most coun- ed to attract and retain members. Republic, Estonia, Latvia, Slovakia, tries there is more than one peak Social movement unionism attempts Portugal, Lithuania and Poland have organisation or confederation, with to transcend the shop floor, focusing lower than average rates. In the last divisions on occupational, religious on community-based activism and two countries, employers’ organisa- or political lines. In general, howev- campaigning about local issues. tions density is 20%. er, confederations are increasingly Challenges to proposed welfare distant from their political party reforms in, for example France There is a variety of trends in mem- counterparts. (2005 and 2006) and Italy (2005) bership structures of employers’ con- have also been used to promote the federations in Europe. Mergers and Large differences in trade union den- profile of the unions. Mergers to pro- rationalising have happened in sever- sity – the ratio of actual to potential mote economies of scale and enable al countries in recent years, for membership – continue to exist expansion into growing sectors are example in Luxembourg (2000) and between the Member States, ranging also common. Recent significant Finland (2004), and the two major from 80% in Denmark to 8% in mergers, both in 2004, include that Dutch confederations have recently

(2) European Commission, Industrial Relations in Europe, Office for the Official Publications of the European Communities, 2004.

9 Executive summary Industrial Relations in Europe 2006

announced an alliance. These devel- measures and the procedural func- have included measures in agree- opments result from a push for tion of collective agreements, which ments in Denmark and Greece to economies-of-scale or the integra- may, for example, pre-determine the reconcile work and family life. tion of industrial relations interests contents of collective agreements at and trade interests. Splits and dis- a lower level. The institutional con- In understanding and interpreting the agreements on representativeness text for autonomous collective main trends in collective bargaining, have also occurred in some coun- agreements remains solid, but in cer- the chapter proposes three ‘regulatory tries. The principal general peak tain areas covered by EU law in par- schemes’. Firstly, collective agree- organisation in Denmark, for exam- ticular – such as working time – and ments may precede law. That is, an ple, is in a phase of restructuring where derogations from the law and agreement in collective bargaining because a major member organisa- collective agreements are increasing- may prepare the ground for the adoption has expressed doubts about the ly frequent, there are ongoing discus- tion of the same norm in law. Exam- need to be serviced by a central sions about the proper relationship ples include the 2004 French statute employers’ confederation. In central between autonomous bargaining and on training which was inspired by and eastern Europe mergers and the law. the 2003 agreement on lifelong splits happen on a larger and occa- learning. Alternatively, there may be sionally more turbulent scale. Current trends in the relationship a vertical hierarchy between law and between law and collective agree- collective agreements, with a num- While the employers’ organisations ments include an almost universal ber of possible variations. In some appear not to be confronted with move toward decentralisation to the countries collective agreements are declining membership density – company level. The forms of decen- subject to extension by decree. In probably since they are also active in tralisation vary quite significantly, Italy, for example, collective agree- networking and lobbying activities in however, from country to country ments in the public sector are gener- other areas such as competition policy and are often highly changeable. In ally enforceable. On the other hand, – they do face certain recruitment Spain, works councils operate with a this scheme can allow for deroga- and organising challenges. Pro- clear mandate and sign 74% of plant tions from the law. For example, the moting membership of SMEs is agreements, in Germany single Spanish Workers’ Statute provides often difficult, the role of (con)feder- employer agreements have tripled for derogations from legal standards ations in countries where decentrali- since 1990 and the spread of ‘open- on working time, some conditions sation of collective bargaining is sig- ing clauses’ increases decentralisa- and wages when the employer can nificant is potentially in question and tion. In Austria, commentators prove that economic, technical or there remain capacity-building issues observe ‘organised decentralisation’, productive reasons may damage the in new Member States. Furthermore, a phenomenon linked to ‘delegation’ firm’s competitive position. Recent employers’ organisations face in- or ‘opening’ clauses, enabling some developments suggest that in the creasing pressures from their mem- flexibility on certain economic and name of ‘modernisation’ and labour bers to economise on resources, working conditions. market flexibility, such as in Italy, enhance the accountability of the there has been expansion of the areas leadership and be more assertive in Other developments include the use in which derogations are allowed. A promoting entrepreneurship. None- of collective agreements to tackle final regulatory scheme is horizontal theless, employers’ organisations, issues of restructuring, non-standard subsidiarity between law and collec- with few exceptions, are well estab- workers and social rights. According tive agreements, with the regime of lished actors in the industrial rela- to the Swedish Employment Pro- semi-mandatory law in Denmark tions systems of the EU. tection Act, for example, agreements being one example. on redundancy must include meas- Chapter 2: The evolving relationship ures to facilitate redundant employ- The increasing trend towards deroga- between collective bargaining and ees’ return to work. Sweden has also tion by collective agreement has led law in the Member States been innovative in extending the to critical reflection in certain coun- benefits of collective agreements to tries on the new powers of social In the European tradition, collective agency workers. In Finland too, partners, particularly where deroga- bargaining is autonomous, enabling agencies must comply with the min- tion from legislation occurs that is a free definition of wage policies and imum wages used by the company. designed to protect fundamental working conditions. The legal princi- Collective agreements are also being rights. The 2004 French law estab- ples underpinning the autonomy of used to establish certain social lishing the majority principle – con- collective bargaining are: freedom of rights. In France, for example, an sensus of organisations representing association, the presence of collec- inter-professional agreement on life- the majority of workers to allow tive parties, the generalised enforce- long access to learning was signed in plant bargaining in derogation from ability of agreements through legis- 2003, guaranteeing an individual branch agreements – is one example lation or other administrative right to training. Other examples of how a civil law system is attempt-

Executive summary

ing to handle the increasingly promi- in particular countries. The most sig- minimum, in Belgium at least 100 nent tension between the public rele- nificant European legislation on employees are required for a works vance of certain rights and the avail- workplace representation is the council. Rights to participation also able private means to achieve them. framework directive of minimum vary. While statutory prescriptions in Poland sees a lively debate on possi- standards for informing and consult- many Member States require em- ble criteria for current derogations ing employees at company level in all ployers to give information on finan- from statutory standards through Member States (Directive 2002/14). cial and business matters, employ- collective bargaining. This generalised the obligation to ment levels and closures and so inform and consult employees and, in on – as well as to consult on structur- The chapter notes that while the effect, institutionalised mandatory al changes – co-determination or basic rules of national labour sys- workplace representation in the Euro- joint decision-making is less tems have not been shaken in recent pean social model. However, the common. In Austria, Germany and years, there are certain tendencies directive is drafted in very broad Sweden, however, there are strong which challenge the traditional rela- terms, leaving considerable scope for participatory rights extending to sub- tionship between the law and collec- individual States to implement its stantial co-determination. tive bargaining. As well as the dis- terms. Thus it creates a general frame- cussions on the comparability of work for informing and consulting The presence and impact of work- standards arising from increased employees, without harmonising rep- place representation also varies derogations from the law and higher resentation. There remains, therefore, according to a range of factors such collective agreements, it emerges a patchwork of information and con- as sector, establishment size and that strengthening the legal ground sultation requirements, although most occupational category. Coverage – on which voluntary sources must countries have adopted a system in the share of employees working in an rely involves the need to clarify crite- line with the EU directive, with establishment with a workplace rep- ria for the negotiation of binding implementation leading to a policy resentation – is quite variable. While agreements, particularly when there debate in several countries. The the EU average is approximately is a departure from higher standards. biggest statutory changes as a result 50%, over 80% are covered in Swe- The increasing recourse to non-legal of the directive are occurring in the den, while the Baltic States have terminology, like in 'experimental' or previously non-statutory countries of coverage of only 25% or under. Cover- 'temporary' legislation, as well as the UK and Ireland and in some cen- age also varies substantially by legislation aimed at ‘modernisation’ tral and eastern European countries. sector, with 80% represented in the often leaves significant space for education sector across Europe, manoeuvre to the relevant social The principle differences in work- compared with only approximately a partners and collective agreements place representation in the EU are to third in sales, hotels and restaurants. can be crucial in setting standards be found in the structures of the There is, broadly speaking, a linear adaptable to different contracts of national models and in the levels of relationship between size of estab- employment. Finally, increasing participatory rights. The legal basis lishment and coverage of representa- decentralisation of bargaining that of representation is also variable: tion, with 87% coverage in establish- sometimes deals with fundamental while it is mostly statutory law ments of 500 workers or more, rights implies the need to strengthen which creates the national frame- compared to only 24% in workplaces the procedural rules coordinating work, in the Nordic countries, collec- with under 10 employees. Occu- company and plant bargaining as tive agreements form the legal basis. pational category also has some well as transnational company bar- Structurally, differences arise in bearing on the chances of representa- gaining. As part of its new social whether representations are elected tion, with professional and managerial agenda, the Commission is exploring by all employees, are elected or nom- staff more likely to have representa- this latter question. inated by trade union members with- tion than manual workers. In terms in the company or whether there is a of the perceived impact of workplace Chapter 3: Employee representation combination of the two channels representation in influencing condi- at the workplace in the Member (dual channel system). While in tions at work, those covered by States Cyprus, Ireland and Sweden, for representative arrangements seem to example, single channel representa- discern only a relatively moderate Workplace representation has been tion by a trade union is the norm, in influence. Broadly speaking, employ- legally established and formally France, Greece, Portugal and Spain, ees in the new Member States installed in most of the EU countries the works councils are seen as com- perceive representation to be less and is a distinctive feature of the EU plementary bodies to the trade union influential. industrial relations system. There is, representation. Very significant vari- however, a great range of forms of ations are also obvious in minimum While the overall structures of work- representation, reflecting the specific thresholds for representation. While place representation vary significantly characteristics of industrial relations in Portugal and Sweden there is no from country to country, the limited

11 Executive summary Industrial Relations in Europe 2006

available research suggests that the growing evidence from north-west tral and eastern Europe. Each coun- practice – the processes and dilem- Europe that a well-functioning repre- try could choose one or two twinning mas faced by representatives – is sentation can play a significant role partners from the EU-15 – typically often broadly similar. Nevertheless, in modernisation and performance, social affairs and labour ministries certain differences at a national level there remains therefore a weak sys- and national experts – with whom can be seen. In Germany, research tem of employee representation in they would work. Examples included suggests that the institution of the several countries, with significant the Czech Ministry of Social and works council retains strength, but gaps in the private sector. This poses Labour Affairs’ collaboration with that the role of the representative has a challenge for those advocating rep- Danish twinning partners which pro- become increasingly difficult with resentation in countries with less duced an initial assessment report, increased company restructurings, well-established traditions, while in developed recommendations on pro- economic problems and organisa- countries with strong institutions, the cedures for extending collective tional changes. The research also challenge is more to adapt represen- agreements and promoted activities suggests that works councils have a tation to the increasingly complex aimed at strengthening the extension moderate positive impact on eco- landscape of internationalisation and of collective agreements at enter- nomic performance, but that that the network economy to ensure its prise level. Similar capacity-building those in particular which have a ongoing contribution. activities such as seminars and work- strong cooperative role in organisa- ing groups were reproduced in the tional or technological changes may Chapter 4: Social dialogue capacity- other CEE countries, with the part- have a more noticeable positive building initiatives in the new Mem- ners’ monitoring reports often effect. In the Netherlands it appears ber States accession and candidate emphasising positive impacts on that the institution of works councils public awareness and on the strength has matured with legal obligations countries of employers’ and employee associa- and procedures being more closely The Commission has, the chapter tions. However, as well as some fluc- followed, but that influence on strate- notes, continually stressed the tuating political support, projects gic matters remains relatively limit- importance of social dialogue for faced the difficulty that employers’ ed. Barriers to enhanced impact better governance and made various organisations were generally less include a certain degree of mistrust recommendations for the improve- well represented – something project on the part of the business side and ment of the capacity and involve- partners believed needed to be reme- the challenge of changing organisa- ment of social partners in new Mem- died if the projects were to be sus- tional structures. In Nordic countries ber States, accession and candidate tainable. research suggests that the well-estab- countries. The industrial relations lished structures of workplace repre- traditions in the new Member States, The European cross-industry social sentation are increasingly developing however, pose something of a chal- partners also initiated their own proj- into more involvement and co-deter- lenge for the EU approach, since ects funded by the EU either through mination. they have tended to emphasise more the Phare programme or the Com- tripartite bargaining and national mission’s social dialogue budget Representation remains broadly level concertation than bipartite, col- headings. These included business speaking low or lacking in influence, lective bargaining. Collective bar- support programmes such as the however, in the central and eastern gaining has largely been limited to European Association of Craft, SME European countries and southern the company level and both trade (UEAPME) designed project – Europe. Recent research on the unions and employers’ organisations SME-FIT – which focused on help- Czech Republic, for example, sug- in eastern and central Europe are ing small enterprises familiarise gests that lack of enthusiasm among weak. The Commission is particular- themselves with the acquis. The employees and indifference from ly concerned about the capacity of cross-industry partners ‘Integrated employers are barriers to expansion social partners in these countries, Programme’, launched in 2003 in representation. While France has a because of the difficulties it poses in aimed to enhance the capacity of well-developed and increasingly terms of involvement in the various social partners to participate in Euro- institutionalised, professional and fora of the European social dialogue. pean social dialogue through, for influential system of workplace rep- This encouraged the Commission to example, developing competencies resentation, Portuguese and Greek request accession countries to and providing resource centres. representation remains relatively include social dialogue projects in weak in terms of impact and influ- the context of the Phare programme. The Commission also financed ence. Despite the fact that workplace capacity building initiatives organ- representation has been strengthened Between 2001 and 2005, social dia- ised by the ITC-ILO. The EMPACT and professionalised in recent years logue capacity-building projects project set up training programmes in countries with an already institu- were established in all former and for staff of participating employers’ tionalised tradition, and despite the current accession countries of cen- organisations, leading to changes in

Executive summary

the internal structure of the employ- 2005, chaired by Commission Presi- monitored social partner initiatives ers’ organisations, with new commit- dent Jose Manuel Barroso, looking at the national level. An evaluation tees being established, for example. back over the previous 20 years and report examined the impact of the ACTRAV was the corresponding considering future challenges. The framework on both companies and project aimed at strengthening the leaders of the European Social Part- workers, arguing that it has both sup- capacity of workers’ organisations. ners also officially launched their ported pre-existing actions and The European Foundation for the discussions on the next multi-annual helped to bring about new initiatives. Improvement of Living and Working work programme for European Sectoral social dialogue committees Conditions (EFILWC), an EU social dialogue (2006-2008). have also developed instruments to agency, also launched a number of improve training systems and provi- projects preparing the national social In terms of tripartite dialogue, the sion in ways adapted to their eco- partners for enlargement, including a mid-term review of the Lisbon Strat- nomic activities. In response to the project on social dialogue and EMU egy called for enhanced ownership Commission’s encouragement to in the candidate countries. of the process through improved work more on the anticipation of governance, streamlined processes change and restructuring, the cross- Social dialogue capacity-building and stronger involvement of all industry social partners agreed in the projects in the candidate countries stakeholders. The European cross- joint work programme for 2006- and potential candidate countries are industry social partners issued a joint 2008 to complete national studies of also being increasingly emphasised. declaration on the mid-term review economic and social change for all For example, a conference organised of the Lisbon Strategy and supported Member States and, on that basis, by the Commission in Skopje in the refocusing exercise. Tripartite promote and assess the 2003 ‘orien- October 2005 on strengthening social summits continue to meet tations for reference’. Sector-level social dialogue in the Western Balka- ahead of every Spring European initiatives include the innovative ns highlighted the key role of social Council, and all EU presidencies ‘tool box’ of the ship-building sector, dialogue as a social policy tool. have so far held extraordinary containing guidance on best practice autumn meetings on specific issues. on dealing with cyclical fluctuations Broadly speaking, evaluation of the These have been seen as valuable in demand. The sugar sector also projects suggests positive and opportunities for the Commission developed various initiatives such as encouraging results. However, there and the Council to monitor progress an electronic practical guide to remain important weaknesses. The and discuss various aspects of the accessing structural funds. In 2005 availability of independent, struc- Lisbon Strategy. In almost all Mem- the cross-industry social partners tured and representative organisa- ber States, social partners were also discussed the functioning of tions, particularly on the employers’ informed and consulted to varying European Works Councils (EWC) on side, is still limited. Bipartite social degrees on the national reform pro- the basis of case studies and drew dialogue, particularly at the sectoral grammes, outlining their strategy on conclusions in their join text level, can be strengthened. The on- employment and macro- and micro- ‘Lessons learned on EWC’. going viability of the improvements economic policy. The Commission’s that have been made and the capaci- 2006 Annual Progress Report again The social partners have considered ty to respond to these challenges will emphasised the importance of the the challenges arising from demo- depend on the will of the social part- involvement of social partners in the graphic change, with youth integra- ners, since social partners are implementation phase of the Lisbon tion and active aging taken up by the autonomous, and will also be signif- strategy. 2006-2008 cross-industry work pro- icantly influenced by the determina- gramme. Sectoral social dialogue tion of national governments to pro- At the bipartite level, the ‘flexicurity’ committees also developed propos- mote social dialogue. model of employment relations, als for integrating young people into combining labour market flexibility the labour market. In promoting gen- Chapter 5: European social dialogue and employment security, has been der equality the Commission developments promoted through various social dia- roadmap of March 2006 and the logue activities. Implementation of ‘European Pact for Gender Equality’ The chapter offers an overview of the ‘autonomous’ European frame- endorsed by the 2006 Spring Council recent developments in social dia- work agreement on telework, for underline the role of social partners. logue at European level. 2005 was a example, has been ongoing in the In March 2005, the cross-industry notable year, marking the 20th Member States; European social social partners agreed a framework anniversary of the launch of Euro- partners have continued to monitor of actions on gender equality, pean social dialogue by the then the process and will draw up a addressing gender roles, promoting Commission President Jacques report. Subsequent to the 2002 cross- women in decision-making, support- Delors. A special Social Dialogue industry framework of action on life- ing work-life balance and tackling Summit was held in September long learning, annual reports have the pay gap.

13 Executive summary Industrial Relations in Europe 2006

One of the areas in which social part- grammes by all sectoral social dia- ment, involves amending the existing ners have been most active is quality logue committees (SSDCs) has also directive as regards mainly the issues of work. The Council adopted in July been a positive development. Three of on-call time, reference period, 2005 a directive which implements the new SSDCs have been set up with opt-out and reconciliation of work agreement on certain aspects of the the social partners of the chemical and family life. In the railway sector, working conditions of mobile railway industry, the steel industry and the the EU social partners concluded an workers. In the area of health and safe- hospital sector. Other requests for agreement on certain working condi- ty at work, the Commission launched the creation of SSDCs (gas) are tions of mobile workers engaged in several article 138 consultations (car- being considered by the Commis- interoperable cross-border services cinogens, mutagens and substances sion. An external evaluation of the which was implemented, at their which are toxic for human reproduc- use of financial instruments in sup- request, by way of Directive tion; musculoskeletal disorders), and port of European social dialogue, 2005/47/EC. The Commission Com- some sectors responded with their carried out in 2005, confirmed their munication on restructuring of own initiatives. Seventeen European positive impact. The 1011 projects March 2005 outlines measures that social partner and industrial organisa- carried out by 525 social partner should be developed or strengthened tions in various sectors concluded the organisations in research, capacity- around the various means that the first multi-sector agreement on pro- building, conferences and seminars Union can use in anticipation and tecting workers against silica crys- were aimed principally at increasing management of corporate restructur- talline dusts in April 2006. The agri- participation, supporting the Euro- ing. It constitutes the second stage of culture sector also signed a framework pean Employment Strategy and consultation of the European social of actions on musculoskeletal disor- increasing awareness of legislation. partners, calling on them to become ders in 2005. In the area of well-being Added value and additionality of more involved in anticipating and at work the cross-industry social part- projects were found to be generally managing restructuring. The new ners signed a second autonomous high. The evaluation suggested cross-border mergers directive regu- agreement on stress in October 2004 increasing participation of organisa- lates, among other things, the issue which has to be implemented by tions from Member States that of employee participation in the member organisations by 2007. On recently joined the EU, of knowl- company resulting from the merger. violence and harassment, they started edge intensive growth sectors and of negotiations on an autonomous agree- sectors with predominantly small The Commission undertook several ment in February 2006. Corporate and medium-sized companies. actions in order to ensure the effec- social responsibility (CSR) continues tive implementation of Community to attract and retain considerable inter- Chapter 6: Review of European legis- labour law, including launching a est, with sectoral initiatives including lation 2004-2006 series of studies concerning the websites and the collection and dis- transposition and application of the semination of best practice. This chapter notes that legislative relevant acquis in the enlarged action in the reference period was Union. Looking forward, the Com- Steps have also been taken to carried out in the areas of labour law, mission plans to publish a Green strengthen working methods. In line health and safety at work, equality Paper on the evolution of labour law with the Commission communica- between men and women and free analysing trends in new work pat- tion of August 2004 identifying movement of workers, including terns and the role labour law can play future challenges, social partners social security issues. A number of in tackling these developments. The have devoted efforts to improve their legislative acts were proposed or publication of this paper, and the working methods and the function- adopted with a view to recasting ensuing public debate that it will ing of European social dialogue. existing legislation regarding health launch, will play a key strategic role According to the cross-industry and safety, equality and free move- for future developments in this field. social partners, their first joint work ment of workers, in line with Euro- programme for 2003-2005 has pean policy aiming at better regula- There have been several develop- helped to focus European social dia- tion and simplification. The Com- ments in the area of health and safety logue and to enhance its autonomy. mission continued to make consider- at work. These include the adoption A second work programme has able efforts to monitor the imple- of two directives in 2004 concerning therefore been drawn up for 2006- mentation and application of EU law, the exposure to risks arising from 2008. This programme foresees particularly in the context of the electromagnetic fields and the expo- social partners developing a com- enlargement. sure to carcinogens or mutagens mon understanding of their instru- respectively. In November 2004, the ments and how they can have a pos- In the field of labour law, a Commis- Commission launched a consultation itive impact at the various levels of sion proposal on working time, cur- of the European social partners on social dialogue. The adoption of rently under discussion before the musculoskeletal disorders at work. A annual or multi-annual work pro- Council and the European Parlia- Commission directive adopted in

Executive summary

February 2006 established a second the number of special non-contributo- these different contract forms can list of indicative occupational expo- ry benefits to which special coordina- be summarised as external numeri- sure limit values in implementation tion rules apply. In October 2005, the cal flexibility, flexible working time of earlier directives on chemical Commission presented a proposal for arrangements – internal numerical agents. Furthermore, in April 2006 a a directive on improving the portabil- flexibility – continue to become directive on minimum requirements ity of supplementary pension rights. more important. These develop- regarding the exposure of workers to This directive intends to support the ments are found with regard to over- risks arising from artificial optical ‘Jobs and Growth’ strategy by making all flexibility in working time, as radiation was adopted. Other devel- it easier for workers to move jobs and evidenced in a recent survey of the opments included the December countries. The European Health European Foundation for the 2004 launch by the Commission of Insurance card formally replaced the Improvement of Living and Work- the first stage of consultation of the E-forms in all EU and EEA States ing Conditions, as well as concern- social partners on the protection of from the beginning of January 2006 ing increased proportions of workers from violence at work, and (end of the transitional period regard- employees reporting shift and night the 2004 communication on the ing some Member States). work and those working during practical implementation of six weekends. health and safety directives. Chapter 7: Trends and potential risks in the EU labour market The motivation for greater flexibility In the area of anti-discrimination, the comes from both employers and Commission focused its efforts on This chapter considers the increas- national governments. At the compa- the full and correct transposition into ing trend towards enhancing flexi- ny level, the perceived need for national law of the two anti-discrim- bility of labour markets and towards increased competitiveness in the ination directives (the racial equality non-standard working conditions in context of globalisation as well directive and the employment equal- terms of greater diversity in increasing expectations of con- ity directive) as well as upon their employment contracts and working sumers is leading to more flexible effective application in practice. time arrangements, as well as the and atypical forms of employment These directives have helped to raise potential associated benefits and and work organisation. National gov- significantly the level of protection risks. Some countries gave prefer- ernments promote flexibility meas- in the EU and have led to the intro- ence to one form of flexible contract ures with the aim of boosting duction of legal provisions covering over others, such as Spain, which employment. In particular, govern- certain grounds for the first time in remains the country with the high- ments try to facilitate exit and entry some Member States. In the field of est proportion of employees – one to the labour market. There is evi- equality for women and men the third – on temporary work con- dence, furthermore, to suggest that Commission adopted in April 2004 a tracts, followed by Poland, Portugal, measures to enhance flexibility have proposal for a directive on the imple- Slovenia and Finland. However, had success. For example, in Sweden mentation of the principle of equal while between 1998 and 2005 this recent data suggests that interim treatment in matters of employment percentage slightly decreased in agency work led to employment with and occupation that aims at simplify- Spain and Finland, and did not sig- the agency’s client for the majority of ing and updating existing Communi- nificantly increase in Portugal, it employees and also provided an inte- ty legislation. A directive was adopt- doubled over the same period in grative role for immigrants and ed in December 2004 on access to Poland (from 5.4% to 25.5%) and young workers. More generally, part- and supply of goods and services increased substantially in Slovenia time work has become very impor- establishing for the first time the (from 11.5% to 17%). In other EU tant in a large number of countries principle of equal treatment outside countries where it was still only and has enhanced employment the employment field. marginally developed in 1998 the opportunities, while one fifth of increase was more significant, as in part-time workers would prefer to The complex body of EU legislation Sweden, the Netherlands and Italy. work full-time. on the mobility and residence rights In the UK, the share or temporary of workers exercising their fundamen- jobs grew during the 1990s and then Focusing on the risks associated with tal right to free movement was simpli- decreased from 7% to around 5.5% more flexible work it has been found fied and improved by way of a directive of the workforce. The EU-wide that it is mostly employees aged adopted in April 2004. Member States trend is towards more temporary under 30 who are on temporary con- had until April 2006 to transpose this contracts (12.8% in 1998 and 14.2% tracts and exposed to the greater directive. In the framework of the reg- in 2005) although permanent con- risks associated with enhanced ular up-dating of EU legislation on tracts remain more common. Inter- labour market flexibility. 54.6% of the coordination of social security im agency work and part-time work workers under 30 are on such con- schemes, a 2005 Regulation reduced also show upward trends. While tracts in Spain, 49.3% in Poland and

15 Executive summary Industrial Relations in Europe 2006

42.3% in Slovenia. Women tend to In attempting to balance flexibility, retaining social cohesion. The social be more likely to be employed on a job quality and employment securi- partners are encouraged to partici- temporary basis, especially in Slove- ty, governments and social partners pate in this process, and this chapter nia, where 48 per cent of women have implemented measures to limit examines the social foundations of under 30 are affected compared to excessive forms of flexibility, competitiveness, addressing the role 38% of their male colleagues, but including enhanced quality of train- of industrial relations in promoting also in Finland (48% and 36%) and ing and lifelong learning. The chap- economic growth and efficiency. Sweden (46% versus 36%). Certain ter urges for more efforts in this sectors appear to be more affected by respect. For example, there has to be The contested nature of indicators of ‘flexible’ and atypical forms of monitoring and, where appropriate, economic performance and classifi- employment, such as those exposed action needs to be taken by both cations of industrial relations sys- to international competition and the governments and social partners tems makes a definitive statement of retail sector. with regard to limiting certain the relationship – particularly in forms of inequality in working con- quantitative terms – difficult to Increasing labour market flexibility ditions, including those related to achieve. Indicators of international does not, however, necessarily lead health and safety, access to training comparisons of competitiveness and to higher job quality. There are many and combining work with family performance are numerous and sub- virtuous combinations leading to life. Certain groups on the labour ject to some dispute, while the diver- increases in jobs and job quality, but market such as female contingent sity of industrial relations and there are also the potential risks of employees on low pay and young national social-protection systems in increased poverty and inequality in workers facing possible vicious cir- Europe resist any straightforward working conditions, weakening cles of exclusion need particular quantitative classification. Never- social dialogue, and reduced worker attention. More generally, the inci- theless, there is a substantial body of motivation. Concentration of un- dence of low pay is high in a num- research addressing the relationship skilled jobs in contingent employ- ber of Member States (notably between industrial relations systems ment, shortening of contract duration where more than 30% of all and competitiveness. No single and involuntary part-time work are employees receive less than 60% of model of social dialogue emerges as forms of employment which can lead the average/median wage as in most the best for promoting competitive- to reduced possibilities to find and of the new Member States, but also ness. Indeed, the findings of compar- retain a secure place in the labour in the UK and Portugal). While ative studies are relatively modest on market. They also offer more limited statutory minimum wages have the impact of industrial relations on prospects of upward mobility, partic- been in place in most Member growth and economic performance. ularly where access to training is States, the percentage of workers Rather, the importance of comple- limited and can, on the contrary lead covered by them is very variable mentarity between industrial rela- to higher segmentation on the labour among Member States. But the aim tions systems and other institutions market and an underutilisation of endorsed by the European Council of labour, employment and social human capital. Uncoordinated work- of substantially reducing the inci- protection seems to be decisive. ing time arrangements may, for dence of poverty including the example, impede an optimal work/life working poor requires further force- Nevertheless, drawing a distinction balance. These uncertainties on the ful action. Overall, the chapter between systems with high levels of labour market may also have a demo- underlines the importance of ensur- unionism and/or a high degree of coor- graphic impact as they can lead ing that employment growth is not dinated collective bargaining and those young people to postpone the deci- pursued at the expense of social with low unionism and low levels of sion to set up a family. While each of cohesion and sustainability and that coordinated bargaining enables some the individual risks does not neces- the possible risk factors are counter- broad, high level observations. While sarily imply exclusion, in combina- acted in the promotion of economic the existing empirical research on pro- tion they may lead to workers being growth and job creation. ductivity, employment growth, product trapped in ‘vulnerability vectors’ and market competition and research and facing long term exclusion. The Chapter 8: Industrial relations and development spending gives either chapter observes that certain groups economic performance: an overview indeterminate or non-robust results, it are most at risk of facing exclusion of research results appears that certain macroeconomic through an accumulation of risks: indicators display more favourable out- women, young people, older people, The aim of the Lisbon agenda is to comes in systems with high unionism minority groups and those with promote Europe as the most compet- and/or high coordinated collective bar- lower levels of education. itive knowledge economy, while gaining. Unemployment appeared

Executive summary

broadly speaking to be lower and less necessary for economic growth, Other developments also pose chal- persistent in systems with high union- where the parties see the coordina- lenges. The increasing emphasis on ism. The most robust results, however, tion as a common good. greater individual responsibility for are on incomes. Union density and insurance against risk in the context high coverage by collective bargaining In the context of the changes occur- of the difficulties faced by Euro- go hand in hand with more limited ring in the European polity as it pean welfare States poses a problem income inequalities and a more limited moves towards the competitive for unions which are more accus- wage distribution as well as higher knowledge economy envisaged by tomed to defending members’ rights average wages, fringe benefits and the Lisbon Strategy, the social part- rather than assuming specific indi- training. ners face a number of challenges. vidual duties of their members. And The development of the knowledge an increasing re-orientation of A definitive statement of the single economy implies an individualisa- industrial relations activity to the best system is therefore impossible. tion of the employment relationship company because of diversification However, the research does suggest and emphasises the importance of of productive activities limits the that low coordination generally leads individual skills and competencies notion of sector. There is arguably to poorer results than high coordina- and constantly replenishing knowl- an increasing weakening of the role tion or no coordination at all. The edge to ensure employability, rather of sectoral negotiations ‘from hard most crucial dimension is the com- than rigid organisational routines. law to soft law’, with an increasing plementarity between industrial rela- This implies an emphasis on indus- number of firms negotiating opt- tions system and other institutions trial relations agreements on qualifi- outs or drop-outs. Tensions between which constitute a ‘package of insti- cations and on the definition and the national context of industrial tutions’. Research also suggests that organisation of careers. In general, relations and the globalisation of the participation of industrial-rela- the creation of methods of training the economy tend to increase, rais- tions players in political and institu- and acquisition of skills are becoming the question of the need of fur- tional debates can offer a decisive ing critical challenges for the social ther Europeanisation of industrial means of improving the environment partners. relations.

Chapter 1 The social partners as membership organisations: an overview of forms and trends in the Member States(3)

In this first chapter, the two key col- 4 They are mass organisations with sions between them; an indication of lective actors of industrial relations a centralised structure and a divi- the most important confederation in the EU Member States are intro- sion of work between a network of and its affiliation structure. duced: trade unions and employers’ volunteers (activists or militants) organisations.(4) Both are so-called and a professional apparatus Most of the unions are organised on intermediate organisations. They act (trade union officers). a sector or occupational base as an interface between the state, the throughout the EU. Traditionally, economy and their membership. 4 They are organisations recognised blue-collar unions were the most Both organisational types are driven by the law maker and have a quasi powerful, but they are losing ground by the logics of membership and public status. everywhere in Europe and white-col- influence. They aggregate the inter- lar unions or public sector unions are ests of their diverse rank and file and 4 They have a distributive function increasingly more important. In represent these interests at different in the economy (settling wages) many of the Member States unions forums and levels. They are further- but also a normative function exist, which are not part of a confed- more driven by logics of efficiency (through an involvement in decid- eration, but are so-called ‘auto- and effectiveness. Taking these log- ing labour regulations). nomous’ unions. Often these ics into account implies that they are autonomous unions organise profes- involved in four types of activity: 4 They are representative organisa- sional and managerial staff or certain participation for members, represen- tions: they speak in the name of rural regions. tation of members, services to mem- their members and can mobilise bers and control over members.(5) In a these members, but they also have Austria, Ireland, Latvia, Slovakia model of organised industrial rela- the power to convince this and the UK have only one confeder- tions – typical of the traditional rank-and-file of a negotiated ation, which unites all the unions in European social model and social compromise.(6) the country. In Germany and the dialogue – these associations are Czech Republic, one confederation cornerstones. We will first present an organisation- is strongly dominating the others in al overview of these trade unions for membership figures and power. In the EU-25, followed by a discussion southern countries like Greece, Por- 1. Trade unions of membership figures and trends. tugal and Spain two main confedera- The section concludes with an tions are active. Unions in France, A trade union can be defined as an overview of recent revitalisation Hungary, Italy and Slovenia have a independent association (coalition) strategies, deployed by unions in rather complicated and fragmented of workers, who have united for the Europe. confederate structure. In Greece, Ire- representation and defence of their land, Poland and the UK the (main) interests in the workplace, but also at confederation is composed of a frag- the general level of the economy and 1.1. Organisational structure mented network of affiliated trade politics. This free and independent unions, which can be organised on association of workers is a statutory Table 1.1 presents the main structur- the company, occupational or local right recognised throughout the al characteristics of the trade union branch level. In other countries, the European Union. Unions can be movement in each of the Member union structure is more and more further typified by the following States: the number of union peak dominated by large ‘super-unions’, features: organisations and the reason for divi- like GPA in Austria, Verdi in Ger-

(3) This chapter is drafted by Guy Van Gyes, Hoger Instituut voor de Arbeid, University of Leuven. (4) A significant part of the information in this chapter has been compiled by a project on industrial relations profiles of the 25 Member States, commissioned by the European Foundation for the Improvement of Living and Working Conditions and conducted by HIVA-K.U.Leuven (G. Van Gyes & T. Van- denbrande), Institut Arbeit und Technik (S. Lehndorff, S. Schief & G. Schilling) and BwP (H. Kohl). (5) P.C. Schmitter & W. Streeck (1999), The organisation of business interests: studying the associative action of business in advanced industrial societies, Max Planck Institute for the study of societies, discussion paper 99/1. (6) W. Muller-Jentsch (1997), Soziologie der industriellen Beziehungen, Frankfurt, Campus, part 2.

19 Chapter 1 Industrial Relations in Europe 2006 e tant -union’ but not egional or tant y y small; ork, ederations ‘super w ederation, e onl . e’ conf CGFP impor y neutral ; OS eland and affiliation e ederation which wants ers in a separate ederations ecognition d f ength w ones pushing f ork esentativ ederation y CMK ederations of the private sector ted in 2002) is onl -Bondgenoten as thern Ir ederation in public sector di & IG Metall impor epr vice sector w thir ong autonomous unions in ormal merger eak conf ‘r er olitical factions as other rade unions with members in namel Equal str V small f planning a merger in 2007 national r with UK unions Autonomous unions and r conf a f in the private sector organisational pillar Rural w Public and private union, Remarks unions activ and 2 ne 5 Restructuring FNV Christian trade union the largest Conf Independent trade unions activ W The union of SZEF-ESZT unió, (star a cooperation frame T Nor P Ne to be politicall One dominant conf Str ser CGB and DBB ar ession of pr EU-25 branch, local branch ; , affiliates Sector Sector Occupation/sector Sector Main division Sector Sector Sector Sector/status Sector Sector Sector Occupation/sector Occupation/sector Sector Sector/status Sector Sector Sector Sector 8 7 8 12 15 62 18 20 15 26 13 25 60 36 13 33 16 102 ederation 18+7 est larg conf Unions in e in the Member States, o-sector macr ession of een occupational status status; eligious political r ; ; eligious eligious & eligious, eligious eligious; eligious; occupational r r r r r r ade union structur r o-sector/status/pr o-sector o-sector ederations T olitical olitical; olitical, olitical, olitical olitical; olitical olitical; olitical; olitical o some extent private/public egional; r P Public/private P Macr Main division betw conf occupational (status) P P P Occupation P P T Macr P P P Macr le 1.1: b a T OK FZZ K CFTC; CMS; AS LDF -FO; PO -FGTB; CGFP KUK; C ASZSZ ETMAKL CGT A Y ; UIL and DBB MHP ABVV SZEF/ESZT unió; DEOK; UGT LH; ASO; LCBG; ALO; NSZZ Solidarnosc; CMTU T CISL; MOSZ; Soldarumas; ADED CGB; CFDT CNV; ederations SEK; OS; ; -CSC; FTF; VB-CGSLB .OO; AS CL CV EAKL; Conf A other smaller peak organisations CFE-CGC + UNSA & G10-SUD CGT FNV; LB LPSK; A LO; CC PEO; GWU; LIGA; ICTU MSZOSZ; GSEE; CGIL; ÖGB OPZZ; CMK OGB-L; DGB; 3 3 1 3 3 4 2 4 2 1 6 2 1 3 3 No 5+2 3+8 1+3 1+2 T V T EE FR NL BE DK ES CY L L MT IE HU EL IT A PL CZ LU DE

20 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1 y wa y w ed la or 2006 ecentl oundation for egister esented in national TUC affiliates; epr ederations & y small Christian trade w peaks established r but not r ederation er , tite social dialogue egional branches r eral mergers announced f o ne v w General unions as Se Also v Remarks 28 sector f 39 r tripar union f small independent union sector (Alternativa & Solidarity) in the rail T sector T and BwP for the European F en, IA (cont.) .Leuv egion A-K.U EU-25 Occupation & sector Sector & occupation Sector Sector+r Sector Main division affiliates y HIV iles, compiled b ederation est y prof 71 16 23 15+29 37 Unions in larg conf e in the Member States, vices) een y private/ y/ser o-sector (mainl ederations ade union structur r olitical Occupational (status) Occupation Main division betw conf P public and industr Macr T uction; Source: Industrial relations countr le 1.1: b a T vices or constr A V , ser y ergam; CO P orking Conditions. AKA W SA UGT KNSS; ederations STTK; ederacija’90 TCO; onf OZ ving and xample industr TUC CGTP; SAK; LO; K Conf ZSSS; K 1 2 3 3 1 No 4 ement of Li v UK PT FI SE * Macro-sector: for e SK SI the Impro

Chapter 1 Industrial Relations in Europe 2006

many and FNV-Bondgenoten in the Netherlands. Box 1.1: Ongoing merger process between the two most important international trade union confederations Splits at the confederate level throughout the EU are very often A new international trade union confederation will be formed through the based on political and/or religious merger of the International Confederation of Free Trade Unions (ICFTU) divisions. Exceptions are the Nordic and the World Confederation of Labour (WCL). countries (Denmark, Finland, and Sweden). Confederations in these Claiming 155 million members in 236 affiliated organisations in 154 coun- nations are organised on an occupa- tries the ICFTU came into being after the Second World War as a split of tional basis. In countries like Esto- the communist-dominated World Federation of Trade Unions. The latter has nia, Greece, Malta and Slovenia the meanwhile declined precipitously since the fall of the communist regimes divide between public and private in Europe. sector is important in distinguishing the confederations. In the countries The WCL was founded in the 1920s under the name of the ‘International with several trade union peak organ- Federation of Christian Trade Unions’. It chose to remain independent of isations socialist or social democrat- both the ICFTU and the WFTU. The WCL claims to unite 144 organisations ic confederations are normally dom- from 116 countries and to represent internationally 26 million members, inant. An exception is Belgium with mainly from Third World countries. its strong Christian trade union. Con- federations of communist origin are The unification process is aimed at more than a structural merger of two still very important in the south confederations. It is part of moves to install a new dynamism in the inter- (Italy, Spain, Portugal and to a lesser national trade union movement. The new centre will be the global advocate extent France). Nonetheless, an over- for over 170 million working people in some 160 countries around the all pattern is a growing distance world. In addition, discussions are underway with a ‘contact group’ of trade between trade unions and their coun- union centres from 10 countries which are currently not affiliated to either terparts in the political party spec- the ICFTU or the WCL, as these organisations are expected to join the new trum and vice versa. centre.

1.2. Trade union density The biggest union movement is in senting retired people in the country Italy with more than 11 to 12 mil- or not and so on) and by the labour 1.2.1. Gross absolute membership lion members (half of these are market composition of the country figures retired people). It is also important population (for example the per- to see that unions from countries centage of people that are As an introduction to the density like Belgium and the Nordic coun- employed, self-employed or not on figures that are presented in Section tries have a bigger rank-and-file the labour market). 1.2.2, we give an overview of total than unions from Spain, France or membership figures in the EU Mem- Poland. In the Nordic countries, 1.2.2. General union density ber States. These membership data are based on a rough comparison figures based on administrative sources or between these absolute membership files reported by unions (as an obliga- figures and the population above 14 As a measure of the associational tion for official registration in some years old, approximately half of this power or organisational representa- countries, as documentation to nation- ‘grown-up’ population is a member tiveness, ‘union density’ is defined al statistical offices or through self- of a union. This percentage is, of as the ratio of actual to potential reporting). These figures include to course, influenced by national tradi- membership. Rather than absolute the largest extent possible the whole tions of membership (whether membership figures (or size), union membership (employees, but also unemployed people have an admin- density rates allow us to compare the unemployed, self-employed, students, istrative incentive to be member of a trade union mobilisation of different pensioners or disabled). union, whether unions also repre- groups at different times, within and

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

The total figure of gainfully Box 1.2: Trade union membership as comparative indicator of trade employed members (excluding union mobilisation strength unemployed, students or retired) divided by the total wage earners Union membership is useful as a proxy for union power. However, as a full population of the country; Figure measure of the organisational capacities of a union movement it is inade- 2004: CZ from 2003, CY from 2002; quate.(7) For example: membership is for the Spanish unions not their main Figure 1995: FR from 1996; LV and source of legitimacy. Representativeness is much more built upon their LT from 1998; EU-25: weighted electoral strength in the works council elections. Around 57% of the Span- average based on employee popula- ish workers voted in these elections between 2001 and 2003. This electoral tion figures from Eurostat LFS data strength is seen as much more decisive for the socio-political power of the 2004 and ILO paid employment data unions, which is certainly not considered as low as the density rate of 16% 1995. would suggest. Spanish observers speak in this regard of a ‘voters’ trade unionism instead of a ‘members’ trade union movement. The trend in union density is clearly downward across Europe.(9) Ten years Comparison of trade union membership between EU Member States is dif- ago, one in three of the European ficult, because the method of calculation and the quality of the data source workers was a member of a trade can be totally different. Not to speak about the difference in status of a union, now it is one in four. Most of membership within the national culture and tradition of trade union partic- the EU Member States experienced a ipation. In some countries (for instance France) almost only the ‘real’ fall in density over 1995-2004. activists join the union as member, in other countries (for instance in Scan- Unions in eastern Europe in particu- dinavia or Belgium) some rank-and-file are even politically against a trade lar have been confronted with dra- union, but are members, because of the social security services provided by matic membership losses: Hungary the union. Nevertheless, membership density rate is still the most important (75%), Poland (55%), Estonia and usable and used indicator to make comparisons between EU countries on Czech Republic around 50%. In the the level of trade union participation. former EU-15, membership losses have been considerable in Austria, Ireland, Portugal, Germany and across countries, keeping the chang- rate is high in the Nordic countries, Greece (20 to 30%). In Belgium, ing labour force constant.(8) For the closely followed by the two small Denmark, Finland, France, Italy, the same comparative reasons, figures of Mediterranean islands, Cyprus and Netherlands, Spain, and Sweden, net union density are presented: the Malta. Spain and France, with losses in density rate have been lim- total figure of gainfully employed throughout the 1990s a very low ited in the recent decade. British members (excluding unemployed, membership level, are joined by a lot density losses were mainly in the students or retired) divided by the of the new East-European Member period before 1995. Strangely, we total wage earners population of the States. Slovenia and Slovakia are the only observe a rise in density rate for country. For comparing the union only eastern nations with an above- the smallest EU countries – Malta density we use survey data as far as average density rate. The overall and Luxembourg. possible (for country details see weighted average density rate in the appendix 1 to the chapter). EU is now between 25 to 30% of 1.2.3. According to key wage earners. It is especially the characteristics Large differences in (net) trade union lower density in the large countries density exist between the Member (France, Spain, Poland and Ger- Table 1.3 presents descriptions of States, ranging from 80% in Den- many), which have a significant membership density for the Member mark to 8% in France. The density downward effect on this average. States (not for Malta) according to

(7) See for this discussion: J. Visser (2003), ‘Unions and unionism around the world’, in: J.T. Addison & C. Schnabel, eds., International handbook of trade unions, Cheltenham, Edward Elgar, pp. 366-413. (8) B. Ebbinghaus & J. Visser (2000), The societies of Europe. Trade unions in Western Europe since 1945, London: Macmillan Reference ltd. (9) Which does not mean that in absolute terms union membership could not have risen in recent years. In many EU Member States, the workforce has grown in recent years. The lowering densities can in other words also being a situation of not keeping up with the growing employee country figures. A good example is Ireland. Trade union membership rose in this country by around 20% from 1994 to 2004. However, union density as a proportion of all employees fell from 46 to 35%. For Ireland this paradox can be mainly explained by the fact that the number of employees has increased dramati- cally, from 945 000 in 1994 to 1 500 000 in 2004. Furthermore, we analyse net density, i.e. density rate among working people. In many of Member States the unions managed to extend there membership among other social groups (especially retired people, students and to a lesser extent self- employed persons).

23 Chapter 1 Industrial Relations in Europe 2006

Table 1.2: Total union membership, 2004 or 2003, SK, ES and UK, the relationship in thousands looks very linear with membership probability going hand in hand with Country Total union membership % of adult population rising age. In the other countries, the age factor is more a divide between BE* 2723 32% young people (aged under 30) and the CZ 866 10% other (older) workers. DK 2059 47% DE 8581 12% In many of the Member States (14) EE* 90 8% union density rate is still higher EL* 640 7% among male workers than among ES* 2342 6% female workers. However, the gender FR* 1990-2270 5% gap is not always so clear. In the IE 633 20% Nordic countries (DK, FI, SE) densi- IT 11589 23% ty rate is higher among women. This CY* 175 30% is also the case in the UK and some LV 180 9% CEE countries (HU, LV, PL). In LT 200 7% countries like the Czech Republic, LU* 110 30% Lithuania and Portugal density rate HU 976 11% is the same among men and women. MT 86 26% The gender gap is the highest in Ger- NL* 1921 14% many, Austria, Spain, Italy and the AT 1358 20% Netherlands (based on our survey PL* 1900 6% material).(11) PT* 1165 13% SI 465 27% The following columns in Table 1.3 SK 590 13% present union density rates by FI 2061 48% (macro-)sector.(12) Sector is certainly a SE* 3732 51% major factor of union density differ- UK 7559 15% ences in the Member States, but again the pattern is not always the * year 2003; BE: 14.7% correction coefficent used; IT: data of autonomous unions not same, although the service sector is included. most of the time the weakest union Sources: CY, EE, EL, LV, LT, PL, PT, ES = EIRO; CZ, FI, HU, LU, SI, SK = Industrial sector. For the countries, where we relations country profiles, European Foundation, Dublin; DK, NL, SE: = national statisti- have only a private/public divide (CY, cal office; DE = Hans-Böckler Stiftung; FR = Andolfatto Les syndicats en France; UK, IE EE, LV, LT, SK) the pattern is always and MT = Certification office; IT = CISL national library; BE = ACV; AT = ÖGB; pop- very strong with a huge difference ulation figures used for calculating percentage from Eurostat and 2004 (population older between a high density rate in the than 14 years). public sector and a low density rate in the private sector. In seven countries some key characteristics. We contin- 24 cases, we find a strong significant (DK, FI, FR, EL, NL, PL, UK) the ue to use net density rates: member- effect. Only in Belgium does the age density is high in the administration, ship or not of employees.(10) factor have no importance. The pat- health and social services (mainly tern of the age differences is not public sector, abbreviated AHS), Union density differs very often by always the same between the Member medium in industry and low in the age in the Member States. In 15 of the States. In EE, FR, DE, EL, LU, NL, services. In four mostly southern

(10) The figures are based on survey material, mainly from the European Survey, but also for three countries from the International Social Survey Pro- gramme (Cyprus, Latvia and Slovakia) and for two countries (Estonia and Lithuania) from the Work Life Barometer of the Baltic countries. For comparative reasons, we choose to work as much as possible with the same data source and year. The recent year with the most available data is 2002/2003. The correlation coefficient between the density rate from the survey material and the density rate based on the other sources is high (0.92, see appendix 1). Nevertheless, the figures have to be read taking some confidence intervals into account (95% upper and down limit). Figures from countries with a very low density rate (for example France) are more sensitive to the survey design. Another element of ‘bias’ can be that people have problems to define their current job as an employee job. In countries with important ‘grey zones’ in employment status between self-employed and employee or formal/casual/informal work, this can be sometimes more problematic. (11) This last remark is also confirmed in the data of the Industrial relations in Europe 2004 report, p.19. (12) For the ESS survey data, the three categories are based on a recoding of the Nace code. Nace sectors from A to F are coded as industry; E to K, plus O as services and L to N as administration, health and social services (abbreviated AHS). This coding doesn’t lead to a strict divide between public and private sector. In service sectors like transport and industry sectors like energy or mining State enterprises can still be very active in a country. For the countries with ISSP data, only a variable, which makes a division between public and private, is available.

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

Figure 1.1: Trade union density, EU-25, 1995-2004 contrary. In almost every Member State trade union membership of pro- 100 fessional and managerial staff (PMS)

1995 2004 is higher than or as high as the aver- 90 age density rate in the total employee (13) 80 group. The lowest density rates are mostly registered in the occupational 70 group of (lower) service workers. 60 Again, different patterns exist between the countries. A first pattern 50 is a higher density rate among PMS

40 and skilled blue-collars (DK, EL, ES, SE), sometimes accompanied with 30 also a medium density rate among

20 unskilled blue-collars (AT, IE, LU, PL, SI). Latvia, Portugal and Slova- 10 kia have a high(er) density rate among PMS and no strong differ- 0 ences in density rate between the SI FI IE IT ES SE EL LV LT PL EE BE FR SK PT AT LU DE NL CY CZ UK MT DK HU other groups. Hungary has especially EU25

1995 84 83 80 54 57 53 39 63 46 38 41 57 33 26 32 41 29 30 63 33 25 25 18 15 21 9 a lower density rate among the 2004 80 77 74 55 53 49 46 44 36 34 32 31 29 25 25 22 20 20 17 17 17 16 16 13 12 8 unskilled blue-collar workers, the Czech Republic a higher among the The total figure of gainfully employed members (excluding unemployed, students or retired) divided skilled blue-collars. Germany and the by the total wage earners population of the country; Figure 2004: CZ from 2003, CY from 2002; Netherlands have the highest density Figure 1995: FR from 1996; LV and LT from 1998; EU-25: weighted average based on employee among the skilled blue-collar work- population figures from Eurostat LFS data 2004 and ILO paid employment data 1995. ers, followed by PMS and unskilled blue-collars. Italy is characterised by countries (HU, IT, PT, ES), density and may be distinct from popular a strong divide in density rate rate is very high in the AHS, com- beliefs. Based on a recoding of the between skilled and unskilled blue- pared to a low density in industry and ISCO-variable in the survey, we con- collar workers. Finland attracts atten- services with no differences between structed a simplified occupational tion because of its high density rate these last two. In countries like Lux- grouping. Professional and manage- of white-collar workers, which is as embourg, Slovenia and Sweden den- rial staff is the first group. Routine high as the density rate of the skilled sity is as high in industry as in the non-manual workers (clerks), sales blue-collar workers in the country. AHS, but considerably lower in the and other service workers compose The UK has also a distinct pattern service sectors. Three countries have the second, white-collar group. with the highest density among PMS, a separate pattern. Germany has its Skilled blue-collar workers (supervi- followed by unskilled blue-collars highest density rate in industry. Den- sors, operators, craftsmen) are the and white-collars. It has relatively a sity rate differs not much by sector in third group. Unskilled blue collars very low density rate among the the Czech Republic. Although still are the last group (including agricul- skilled blue-collar workers. Belgium high, Belgium has its lowest density tural workers and seasonal workers). has the only density rate which seems rate in the AHS. to follow traditional class lines with These figures indicate that union the highest density rate among The density rate by occupational membership is today not a case of unskilled blue-collars and the lowest class or group is also very interesting blue-collar workers alone, on the among PMS.

(13) On this question of organising and recruiting professional and managerial staff as union members, see the report: G. Ebner (2005), Organising professional and managerial staff, Brussels, Eurocadres.

25 Chapter 1 Industrial Relations in Europe 2006 . * * * * * ** (*) (*) (*) *** *** *** *** *** y data Occ ence e v y data of er e t sector are v * * ** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Sector ied EGP class scheme * * * ** ** (*) (*) (*) (*) *** *** *** *** vities in transpor Gender erage of ISSP sur v e * ** ** ** ** (*) (*) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Ag Chi-quadrate test of diff e data; a v ys based on a simplif e le in ESS. v lue 67 19 80 22 11 14 46 23 52 48 14 26 19 11 28 45 72 74 29 12 42 b ariab acteristics Unskilled lem of v xample: State companies with acti orking Life Barometer of the Baltic countries; No sur lue 60 26 89 32 27 18 37 37 42 48 17 42 23 13 33 50 81 85 19 10 38 b W Skilled or e arious char . F y and density based on administrati e v ate sector 49 22 81 14 12 13 30 28 44 25 22 16 12 16 30 34 81 72 26 14 29 v ding to v gorisation of ISCO-88 job codes in sur White-collar icient = 0.92 f Occupation lic and pri 33 19 86 23 36 20 46 31 61 41 21 31 24 27 39 49 73 80 35 29 41 akia; Estonia and Lithuania: PMS v Appendix. een pub relation coef 42 21 91 24 28 36 25 15 62 35 86 54 27 42 36 27 41 53 89 88 52 35 19 46 AHS ship density accor us data, see vision betw vices 45 23 77 16 14 14 12 23 26 29 13 19 12 13 33 64 65 15 27 f; Occupational class: cate Ser Sector , SK: di y T y data for Latvia and Slo , L e vices. Sector data HU: LFS of 2004; because coding prob V 5 9 4 5 v 55 21 85 29 20 14 44 25 37 51 15 32 19 13 19 52 78 88 22 40 Industr mation on this Cypr een the membership density of ISSP 2002 sur t of ser , EE, L ade union member F 43 21 86 14 15 19 12 11 36 23 46 34 21 23 23 17 30 51 83 81 31 21 15 29 ys) and other data, see appendix. Cor e ould be par v Net tr Gender ference betw M 49 22 82 30 14 24 20 13 44 34 54 47 16 33 18 16 33 40 69 74 28 14 14 43 y w y Ganzeboom). le 1.3: vices; Sector data CY 8 ; PMS: professional and managerial staf 43 24 90 29 19 30 27 21 48 32 57 50 24 44 22 21 49 57 82 83 43 19 41 b 50+ T a igures, the m the used sur T e eloped b v 49 24 90 22 15 23 17 13 47 31 58 44 21 28 27 17 33 53 81 82 30 20 13 38 Ag 30-49 us, because of strong dif 7 7 7 4 7 6 45 61 14 16 23 16 34 27 15 11 16 19 59 55 15 11 11 26 -30 ference: (*) <0.05; * <0.01; ** <0.001; *** < 0.0001 y data for most of the countries; ISSP 2002 sur e v 47 21 84 22 14 22 16 12 40 28 50 41 18 28 20 16 31 45 76 77 30 18 11 36 otal T lic sector; in other sector f y le for Malta; Cypr Administration, health & social ser t of pub ailab T or a comparison of these totals (for v V T a Countr BE CZ DK DE EE EL ES FR IE IT CY L L LU HU NL A PL PT SK SI FI SE UK F ESS 2002/2003 sur 2002 and 1998 (with a density rate much closer); for more infor AHS: par (adapted from coding scheme de No occupational data for EE, FR and L Chi quadrate test of dif

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

1.2.4. Multivariate analyses of density differences Box 1.3: European Social Survey as main data source

This quick overview of country pat- The European Social Survey (ESS) is designed to analyse the interaction terns by occupational group high- between Europe’s changing institutions and the attitudes, beliefs and behav- lights that there is probably a lot of iour patterns of its diverse populations. The survey, based on face-to-face interference between the described interviews, covers 23 European States and is funded by the European Com- variables, for example between sec- mission, the European Science Foundation and national funding bodies. tor and occupational group. Higher The ESS is now in its third round. Waves 2002/2003 and 2004/2005 (partly) density rate in the public sector has are available. Twenty-two countries participated in the first round of the the effect in many Member States ESS; data are currently available for 17 countries in the second round. that density is high among the group of professional and managerial staff. References: Jowell, Roger & Central Co-ordinating Team (2003). European Many jobs of public administration Social Survey 2002/2003: Technical Report. London: Centre for Compara- or health/social services are cate- tive Social Surveys, City University. For further information, the ESS data gorised as professional jobs. Faced homepage is at: http://www.europeansocialsurvey.org/. with these simultaneous relationships between different parameters on union density, we want to analyse or white collar, full/part time, tempo- Women, foreign workers and young these differences in a multivariate rary contract or open-ended, income) people (aged less than 30 years) have way: considering the effect of many or workplace factors (sector, estab- a considerably lower probability of variables together. For this purpose lishment size). These structural being a union member in Europe, we analyse the data from the Euro- explanations are complemented with even after controlling for workplace, pean Social Survey.(14) attitudinal determinants: the political occupational and other effects. The beliefs and feelings of dissatisfaction age effect is mainly situated in the A considerable body of theoretical with various aspects of work and pay. younger categories. Education is also and empirical research exists on the The influence of peer groups is an important determinant, but its determinants of trade union mem- another factor taken into considera- effect drops, when political and atti- bership.(15) The most frequently mention: parents, spouses, friends or col- tudinal factors are taken into tioned potential determinants are the leagues and their commitment to a account. following. Unionisation can partly union. Finally, and especially in be explained by economic effects. cross-country research, institutional People working full-time and/or with Employment growth, consumer price factors are mentioned: a Ghent sys- an open-ended contract have a signif- inflation and nominal wage growth tem (a union-affiliated unemploy- icantly higher chance of being a union enhance union density. Unem- ment insurance), union access to the member. Occupational class differ- ployment tends to inhibit union workplace, legal protection of union ences can be mainly reduced to the growth, but it is not clear whether it rights and the presence of left-wing traditional pattern of a lower density is the level or the change in unem- governments. of managerial staff and a relatively ployment rate, that plays a role. higher density of skilled blue-collars. These economic determinants can Based on the available variables, we Density differences between other also be described as cyclical effects tried as much as possible to incorpo- occupational groups are not signifi- (depending on the business cycle). rate these determinants in our indi- cant. This is not the case for the sector Socio-structural explanations con- vidual-level analysis of the ESS data. variables. A pattern of diminishing centrate on individual characteristics The focus is on demographic and union density runs from the public of union or non-union employees. occupational components.(16) Age, sector (administration, health and These characteristics can be demo- gender and nationality remain social services) over industry to the graphical (age, sex, ethnicity and throughout our analysis determining two service sectors, namely distribu- education), occupational (blue-collar variables of union membership. tion and financial/business services.

(14) This means that we have data for 19 EU countries. Not included are Cyprus, Estonia, Latvia, Lithuania, Malta and Slovakia. These are smaller Mem- ber States, so we cover with a broad and representative sample of the EU. To enlarge the sample, we use also the data from Norway and Switzerland, which are available in the European Social Survey. Stepwise regression analysis has been the method applied. For readibility of the chapter, the analysis is not included, but can be obtained from the author. (15) For a recent synthesis: C. Schnabel (2004), ‘Determinants of trade union membershp’, in: J.T. Addison & C. Schnabel, eds., International handbook of trade unions, Cheltenham, Edward Elgar, pp. 13-43. (16) For country-specific analyses of union membership based on the ESS data (although with another variable from the questionnaire on union membership), see: C. Schnabel & J. Wagner (2005), Determinants of union membership in 18 EU countries: evidence from micro data 2002/2003, IZA Discussion paper No. 1464, Bonn, IZA.

27 Chapter 1 Industrial Relations in Europe 2006

A clear cut in union density can be With regard to political beliefs and limited way. The ESS survey has no discerned by size of the establish- practices, we find in a further analy- data on union membership of respon- ment, where people work. Union sis of the ESS data a clear relation- dents’ peer group (spouse, parents, membership is especially lower ship between union membership and friends or colleagues). Institutional among the employees that work in a political leftism. No relationship is factors on the contrary have a strong micro-company (less than 25 work- found with feeling discriminated on effect. Unemployment insurance ers). Subjective job perceptions are grounds such as sex and religion, or through unions – respondents of the less important. We see only a consis- with political dissatisfaction. We Nordic countries were assigned one tent relationship throughout our also detect a strong relationship for this dummy variable – and a trade analysis between lower job satisfac- between positive trade union beliefs union present at the workplace (a tion and union membership. (the belief that employees still need question of the ESS itself) have a unions) and membership. The ques- very strong effect.(17) For the latter To visualise these distinguished dif- tion can be raised about the direction variable, again the question can be ferences, we contrast in Table 1.4 two in which these effects run. Is it raised of the direction in the relation- groups based on the ESS data. One because one holds left-wing views, is ship. Nevertheless, recent accounts group combines a range of negative satisfied about the political economy of the membership challenge stress effects on membership, the other pos- (and unions’ role in it) and believes the importance of heightening the itive effects. As the Table 1.4 shows, in the need for unions, that one is union presence at workplace as a the probability difference in union unionised, or is it the other way very important union strategy for membership is quite distinctive. round: Are union members more on increasing membership.(18) When you ask a young, female, part- the political left and share a higher time, contingent worker employed in trade union belief? More important a small hotel or restaurant if she is a seems to be the link between forms 1.3. Union revitalisation union member, the answer will of civic engagement (voluntary work strategies almost always be no. in Europe. In is important, engaging in political contrast, 2 out of 3 older male work- activities) and a higher probability of Unions throughout Europe are intro- ers with a full-time open-ended con- being a union member. ducing reforms to confront this tract in the public sector and with a recruiting and organising chal- union at their workplace are union Social network factors do not play a lenge.(19) New issues are tackled in members according to figures of the strong role in our analysis, but we collective bargaining (see Chapter 2 European Social Survey. could only operationalise them in a of the report) and new methods are

Table 1.4: Two contrasting groups of union membership probability in Europe

Group with low probability of union membership Female young workers (age -30), working part-time, on 3% Without union in the company: a temporary contract in the distribution sector (sales, membership 1% membership hotels & restaurants, transport) and in a micro-plant (less than 10 employees)

Group with high probability of union membership Worker above 30 years, male, full-time, open-ended 56% With union in the company: contract, public sector (administration, health & social membership 65% membership services), larger establishment

Weighted ESS survey data 2002/2003

(17) A recent analysis of the Finnish membership decline (around 5%) in the last ten years mentions as important reason, besides changes in the composition of the labour force, the erosion of the Ghent system in the country. An independent unemployment insurance fund has been created which requires no union membership. P. Böckerman & R. Uusitalo, Union membership and the erosion of the Ghent system: lessons from Finland, Labour institute for economic research, discussion papers No 213, Helsinki. (18) See: C. Schnabel & J. Wagner, o.c.; See also: J. Waddington (2005), ‘Trade unions and the defence of the European social model’, Industrial relations journal, 36, 6, p. 518-540. (19) C. Frege & J. Kelly (2004), Varieties of unionism: strategies for union revitalisation in a globalising economy, Oxford, Oxford University Press.

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

introduced at company-level repre- As an answer to the recruitment chal- 4 more responsibilities for lay mem- sentation (see Chapter 2). Other lenges, unions have in recent years bers at company level; union reforms can be divided into been creative in developing new serv- four principal types: ices, which very often try to offer a 4 collective services designed to response to new employee risks. include group or individual choic- 4 a servicing model: to deliver new Legal and professional services are an es, such as collective agreements kinds of services to the member- important part of these new services. with possible group or individual ship; Help in training, career guidance spe- options. cialised job agencies, work-related 4 an organising model: to seek more private insurance provisions are the The target group has been young and ‘empowerment’ of the workforce tools and instruments. Besides the highly educated people (for example by targeting specific workplaces growing use of Internet facilities, engineers) in particular. or occupational groups. A new telephone service hotlines and call- group or network of activists has centres are another important way for 1.3.2. Organising efforts to be created, which can act as a unions today to increase their service kind of ‘nucleus’ around which quality. The Internet is used to market The organising model as a different recruitment can occur; the services offered more efficiently recruitment strategy emerged in the and to increase the range of services United States with the creation of the 4 social movement unionism: this provided to the members. Research Organising Institute in 1989, and by form of unionism tries to tran- shows that offering financial services around 1995, following the election scend the shop floor and is more is not always successful as a union of a new AFL-CIO leadership, it had focused on community-based recruiting strategy. Nevertheless, led to a distinct modernisation strand activism and campaigning about many unions have also experimented in union policy. Organising involves local employment problems, with these types of services (insur- the switch in union resources from green issues, social exclusion and ance discounts, credit card facilities, providing services to existing mem- other similar concerns; discounted holidays and so on). bers to recruiting new members. It lays heavy emphasis on the role of 4 new structures: mergers as Based on a study of the revitalisation workplace representatives in attract- economies of scale to counteract efforts of the Swedish white-collar ing other workers to the union and on the loss of membership. union SIF Björkman and Huzzard mobilisation/campaigning. In Europe, speak of a new type of union services.(20) the British TUC and its affiliates have 1.3.1. New services They call it ‘membership interface promoted this revitalisation model unionism’, which has the following key strongly since the mid-90s.(21) Unions have always developed serv- components: ices to support and assist their mem- Unions can differ in terms of their bers at their job. The provision of 4 extensive listening to members – level of commitment to organising. these ‘selective’ services to their direct member involvement in The commitment may be apparent in members has traditionally been a service development and the utili- the manifest attribution of plans, way to attract and retain members. sation of market research (satis- budgets, training and coaching facil- The provision of welfare benefits has faction surveys and image ities. The goal can be consolidation historically been an important pillar positioning surveys); or expansion. A consolidating tactic of the union growth in Europe. focuses primarily on ‘internal’ Today, in countries or sectors where 4 high-profile advertising campaigns organising: trying to raise the densi- they retained a certain role in these marketing the union membership ty where the union is already present. social services, they have secured and union opinions; Expansion has the ambition to their membership much better than expand membership in new and in countries or sectors where these 4 new individual, proactive, enabling unorganised companies, sectors, or tasks were overtaken by state services, often offered through regions. A third goal can be an provisions. Internet solutions; organising strategy that wants to

(20) H. Björkman & T. Huzzard, ‘Membership interface unionism: a Swedish white-collar union in transition’, Economic and industrial democracy, 26, 1, pp. 65-88. In their conclusion they warn, however, that such a individualisation of services can be detrimental for the unions collectism, when it is not combined with a heightened participation in union activities and decision-making. The union becomes then less and less indistinguishable of other service providers. (21) For recent accounts: R. Milkman & K. Voss, eds. (2004), Rebuilding labor: organising and organisers in the new union movements, Ithaca, ILR Press; J. Kelly & P. Willman, eds. (2004), Union organisation and activity, London, Routledge.

29 Chapter 1 Industrial Relations in Europe 2006

enlarge the membership in specific targets: women, ethnic minorities, Box 1.4: Students and self-employed as new target groups for union young people, and contingent work- organising ers. The institutional context deter- mines the model of organising. In Students many European countries, unions use the periodic elections of work- Offering free membership for students is a practice more and more intro- ers’ representatives to acquire legiti- duced by European unions. Belgian unions report considerable success in macy and to create an organisational this regard (for example the biggest unions ACV-CSC with its Enter youth presence at the workplace. This ‘vot- programme). In Germany, the science and education union GEW has been ers’ unionism does not stimulate able to increase its membership by intensifying its membership recruitment aggressive organising. This type of at universities and offering free membership to students. Recently, three organising is more needed in coun- Swedish white-collar trade unions formed a new students’ organisation, tries, where unions have to strive for Tria, with the aim of supporting students on their way towards working life. local recognition. Campaigning is needed to develop a majority support Self-employed for a union presence at the workplace (for example in the UK). Within the EU-25, 16% of the workforce is self-employed.(22) Taken the whole economy into account (and for example agriculture),. In a lot of 1.3.4. Social movement unionism countries grey areas in the labour law exist between the statute of self- employed or employees. Union organising of the self-employed is not new Unions are re-launching themselves and has for example always existed in the media, entertainment and cultur- everywhere in Europe as ‘political al sectors, where free-lancers have always been an important part of the actors’, engaged not just in collective workforce. In recent years, unions in other sectors have increasingly started bargaining and workplace regula- to show interest in organising this type of employed people. For example: tion, but also in the broader aggrega- SIF in Sweden, FNV in the Netherlands and GPA in Austria decided respec- tion of socio-political interests. Tra- tively in 1996, 1999 and 2001 to set-up specific union activities for self- ditionally, in most of the (western employed. The push for this organisational change comes often from the European) Member States, it has desire to retain members, which have become self-employed as a result of been an accepted practice that unions (more and more) business restructuring and outsourcing. Especially specif- are not just (economic) bargaining ic professional occupations are attracted to the union. Examples of union players, but engaged in representing services offered to self-employed are legal advice, forms of work-related larger social interests in democratic insurance, training and (exceptionally) loans. politics. Today, unions are strengthening their role as political interme- have been an important union strategy conflicts arose between those with diaries to obtain more support and in recent years. National strikes and lesser and those with greater sympa- influence. Reconstituting the union mass demonstrations have been organ- thy for the former political system, as a key actor in (local) grass-roots ised in Austria (2003), Belgium supporting respectively radical politics is one element of this strate- (2005), France (2003 and 2005), opposition and the reforming com- gy. Another more institution-related Greece (2003 and 2005), Italy (2002 munist parties. In the first half of the component is the involvement in and 2004) and the Netherlands (2004). 90s unions in CEE countries moved broad social pacts. These types of In particular, propositions to reform very often to support for certain pacts have been signed in many EU the pension system met considerable political parties (without establish- countries throughout the 90s, but public opposition, supported and led ing most of the time formal affilia- recently also in Italy, Spain, Ireland by the unions. tion links). Gradually, unions are dis- and many CEE countries at the tancing themselves again from party national level. At the local level this A point of discussion and debate politics and are attempting to occupy kind of political activity has been remains the nature and level of coali- more independent positions. crystallised in territorial employ- tion-building with (leftist) political ment pacts or regional growth agree- parties. In the (old) EU-15 the trend Trade unions can also relate to other ments. definitely seems to be one of dis- social movements. This can happen tancing. In the CEE countries the in three ways. First, they can enter Furthermore, leadership of protest trend is less clear. Initially at the into an alliance or joint campaign movements against welfare reforms period of regime transformation, that will allow both to better obtain

(22) For this paragraph: A. Bibby (2005), Opening the doors wide to the self-employed: how trade unions are recruiting and organising self-employed workers as members, Brussels, UNI.

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

shorter, more sensational protest Box 1.5: Polish union debate on political independance methods are used to attract media attention and public support. The greatest confederation is the All Poland Alliance of Trade Unions (Ogólnopolskie Porozumienie Związków Zawodowych – OPZZ), springing 1.3.5. New structures from the former monopoly socialist peak and today inclined to the political social-democrat spectre. The independent self-governing trade union con- Union mergers are not a new phe- federation NSZZ Solidarność (Niezależny Samorządny Związek Zawodowy nomenon.(24) They have taken place Solidarność) was founded in 1980 as part of the (Christian) dissident move- since the beginnings of the labour ment. In the transition period it had an explicit political role as it was movement and generally occur in involved in the government by the AWS alliance (‘Solidarnośç Electoral waves. Early waves of mergers have Action’). In 2000 this alliance was hit by a massive electoral defeat. After been identified in Europe around the this setback Solidarnośç withdrew from party politics and refocused on First World War. However, their char- directly representing employee interests. Due to the predominant practice of acter has changed. Early mergers pre- links between trade unions and political parties, in April 2002 the third dominantly replaced craft with occu- largest national confederation, the Trade Unions Forum (Forum Związków pational or industrial unions, today Zawodowych, – FZZ) was formally established with an explicit strategy of these types of unions are merging neutrality vis-à-vis political parties. Its 17 founding organisations came into multi-sector unions with, very mostly out of the OPZZ. often, a (semi-autonomous) divisional structure. As a revitalisation strategy mergers are primarily a method of escaping the vicious circle of mem- Box 1.6: International social movement unionism and social forums bership decline and financial problems. Economies of scale are sought At the international level, one speaks of a new labour internationalism, which to tackle the problem of resources. A is characterised by international networking, information-sharing, and new second reason for mergers is the recruiting targets. Increasing numbers of international union bodies are strategy of expanding the union juris- addressing themselves to ‘social movements’, to democratically-inclined and diction into growing sectors without labour-friendly NGOs, and to ideas of ‘civil society’ – locally, nationally, having to engage in organising rival- regionally, globally. Important expressions of this ‘International social move- ries and recruiting disputes with ment unionism’ are the World Social Forum and the European Social Forum. other unions. The merger is very often a fusion of equals or a new con- The European Social Forum (ESF) is an annual conference held by mem- glomerate of existing unions, which bers of the alter-globalisation movement (also known as the Global Justice are active in different sectors, but it Movement). It aims to allow social movements, trade unions, NGOs, can also be a kind of take-over or refugees, peace and anti-imperialist groups, anti-racist movements, envi- acquisition. In this latter case, a sta- ronmental movements, networks of the excluded and community cam- ble and stronger union, coming from paigns from Europe and the world to come together and discuss themes a sector like industry, transport or linked to major European and global issues. It is emerged from the World public services, transforms itself into Social Forum. The first forum was held in Florence in November 2002. The a multi-industry union by integrating slogan was ‘Against war, racism and neo-liberalism. The third ESF, organ- more weak unions. The idea under- ised in 2004, took place in London.(23) pinning this kind of merger is to use resources from unions in relatively densely organised sectors to fund their strategic goals. Second, unions tions of race/ethnicity, community, union activities in new or underdevel- can expand their objectives to gender and environment. Third, oped union sectors.(25) embrace social and/or non-work unions can adapt into their portfolio issues, so that they try to expand of tactics methods and instruments Running counter to these merger their socio-political legitimacy and borrowed from other movements. processes, unions also look for revi- power base. Topics covered are ques- Professionalised campaigns and talisation in the other direction.

(23) See on these Forums: S. Böhm, S. Sullivan & O. Reyes, eds. (2005), The organisation and politics of social forums, Ephemera: theory & politics in organization, 5, 2. And further: P. Ghigliani (2005), ‘International trade unionism in a globalising world: a case study of new labour internationalism’, Economic and industrial democracy, 26, 3, pp. 359-382. (24) G. Chaison (2004), Union mergers in the U.S. and abroad, Journal of labor research, 25, 1, pp. 97-114; J Waddington, ed. (2005), Restructuring representation: the merger process and trade union structural development in ten countries, Brussels, PIE. (25) An example of extensive organisational restructuring is the German union movement. Between 1987 and now the numbers of unions within the largest confederation reduced from 18 to 8. This peak federation DGB merged in 2001 also with another, namely DAG. It means that today the two largest union, Verdi (service sector) and IG Metall (industry) make up 70% of DGB membership.

Chapter 1 Industrial Relations in Europe 2006

2. Employers’ Box 1.7: Some of the recent union merger activities in the European Union organisations

In Denmark a significant merger happened in 2004 between the National Employers’ associations are the man- Union of Female Workers (KAD), representing unskilled female workers, agerial counterpart of the trade and the General Workers Union in Denmark, representing (mainly) unions. In this capacity, they act as unskilled male workers. The new trade union is called (3F) and is now with an interest group, play an important around 370 000 members the largest union in the country (and belonging to role in collective bargaining, and are the LO confederation). involved in political lobbying. Fur- thermore, they provide their mem- In December 2004, six Finnish blue-collar public sector trade unions affili- bers with expert services on industri- (26) ated to SAK decided to merge. The new union will start functioning in 2006 al relations matters . and will be one of the largest in Finland, with about 230 000 members. 2.1. General remarks A new French union federation for banking and insurance staff was set up in June 2005. It resulted from a merger between the previous CGT federation and the union created in late 2004 by former activists from the CFDT The power and structure of these federation, and is affiliated to the General Confederation of Labour (CGT). employers’ organisations play an important role in determining the In autumn 2004, the Swedish Metalworkers’ Union and the Industrial form and content of national indus- Labour Union decided to merge at the beginning of 2006. The two LO trial relations practices. unions have lost around 100 000 members between them in recent years. When the merger is concluded, the new industrial workers’ union will have A first case in point is collective bar- about 470 000 members, making it the second largest union in LO. gaining. Multi-employer bargaining can most of the time only be institu- The finance union UNIFI and the Graphical, Paper and Media Union tionalised when employers’ organisa- (GPMU) both merged in 2004 with the manufacturing and professional tions engage in bargaining. For similar union Amicus, bringing Amicus’s membership close to that of Unison, the reasons, statutory provisions of the EU UK’s largest trade union. Member States for ‘extending’ collective agreements to non-signing employers depend very often on the Facilitating the representation of spe- 4 establishing direct elections of the clause that the signatory party on cific occupational or other interests, leading bodies with personnel behalf of the employer side is an many unions have introduced project responsibilities without any politi- employers’ organisation. In other activities and sectional forms of rep- cal focus; words, the level and coverage of col- resentation. An important example lective bargaining in a EU country of this kind has been the restructur- 4 opening the communication net- strongly depends on what kind of ing of the Austrian white-collar work and (partly) the services to employers’ organisations are active in union GPA. It created a new struc- non-members. the country, how many workers are ture of interest groups. These groups employed by its members, and if they had to make GPA more attractive by: Another trend in this regard is the have a formal mandate specifically for creation of so-called independent sector collective bargaining. There is 4 combining the successful branch unions, which focus on a relatively also a relationship in the other direc- and regional organisations with a strict membership jurisdiction, main- tion: employers seem to be pushed to new professional focus; ly in the service sector or public sec- organise themselves more extensively tor. These organisations want to and on a higher level in countries with 4 building new direct relational net- organise their specific target group an elaborated legal system for exten- works between members and tra- detached from a larger, heteroge- sion of collective agreements. ditional works council structures; neous and more ‘distant’ union structure. Afterwards they also want to The level and degree of social concer- 4 enforced use of new communica- press for national recognition, for tation also relates to the organisational tion media as e-mail and Internet instance in tripartite bodies of social functioning of employers’ organisa- services; concertation. tions. In countries with a highly

(26) An additional important source of information for this section has been: F. Traxler, eds. (2004a), Small and medium-sized enterprises and business interest organisations in the European Union, Brussels, UEAPME-Academy for Europe Avignon.

32 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

In countries where social concertation Box 1.8: Union representativeness: recent examples of national is low, they will be mainly involved in discussions political lobbying activities.(27)

In 2004, eight trade unions not directly represented on the Malta Council An important characteristic of for Economic and Social Development (MCESD), the country’s highest employers’ organisations is further- forum for tripartite concertation, joined forces in an attempt to persuade the more the tendency towards fragmen- government to change legislation and include their representative on the tation, specialisation and diversity. council. These unions are the MUMN, the University of Malta Academic These associations have the difficult Staff Association (UMASA), the Airline Pilots Association (ALPA), the task of organising enterprises with Association of Airline Engineers (AEE), the Union of Cabin Crew (UCC), divergent interests: for example from the Union of Architects and Engineers within Government Organisations small companies to transnational con- (Union Periti u Inginiera tal-Gvern u Parastatali), the Union of the Planning glomerates which are very often com- Authority Professionals (Union Professjonisti Awtorita’ tal-Ippjanar u petitors to each other or critically Ambjent) and the Union of Central Bank Employees (Union Haddiema intertwined in a buyer-supplier rela- Bank Central, UHBC). However, the government rejected the request of tionship. In other words, although the these unions, which together have around 3000 members. employers’ side at first sight have it easier than the employees’ side to To be representative at a general national level in Luxembourg, the trade organise because of smaller numbers, union must at the previous two elections to the Chambers of Labour have lower turn-over, stronger (elite) net- won an average of 20% of the vote among blue-collar and white-collar works and resources, in reality a more workers, and an average of 15% of the vote in each of the two categories. A fragmented organisational structure trade union claiming nationally representative status must also be function- exist in many Member States on the ally active in most branches of economic activity. These conditions for employers’ side than on the workers’ obtaining a national representativeness status have been formulated by the side.(29) new Industrial Relations Law of 2004. The detail stipulations followed after a period of consecutive court case of unions, representing specific cate- Since this results in a very large num- gories of professional and managerial staff (first FEP-FIT and afterwards ber of employers’ associations in most ALEBA) to obtain this national status of representativeness (and the accom- of the EU-25, a cross-national compar- panying membership in institutions of social concertation). ison is feasible only by focusing on a certain type of these organisations. In most of the EU countries, if there exists multi-employer bargaining, this Box 1.9: Employers’ organisations and active labour market policies type of bargaining is organised below the national level. Sector or branch In a recent analysis Martin & Swank show that a higher representational organisations play the pivotal role most power of employers’ organisations, a higher degree of coordination efforts of the time in bargaining. However, the by them and their involvement in tripartite policy concertation results in power and the role of national peak greater support and participation by employers in active labour market poli- federations are an important factor in cies. The relationship runs in two directions or steps. Because of their the centralisation and coordination of a involvement in an organised system of industrial relations, more emphasis nation’s industrial relations system. We is laid on active labour market policies in developing employment policies. thus limit our comparison on the one In the implementation phase, the employers are in a strongly associational hand to the category that can be seen setting more instructed and mobilised to engage in active labour market as the most inclusive, namely the programmes.(28) umbrella organisation(s) or national employer peak associations. On the other hand, we will provide density developed and centralised tripartite collective interests in this social part- rate figures on the membership of the concertation, employers’ organisations nership. The role of confederations employers’ organisations, regardless of will specialise in representing business will be strengthened in these countries. the type or level of association.

(27) See further on this remark: A. Wilts (2001), ‘Europeanization and means of interest representation by national business associations’, European journal of industrial relations, 7, 3, pp. 269-286. (28) C.J. Martin & D. Swank (2004), ‘Does the organization of capital matter? Employers and active labor market policy at the national and firm levels’, American political science review, 98, 4, pp. 593-611. (29) See: L. Lanzalaco (1992), ‘Coping with heterogeneity: peak associations of business within and across Western European nations’, in: J. Greenwood, J. Grote & K. Ronit, (eds.), Organised interests and the European Community, London, Sage, pp. 173-205.

33 Chapter 1 Industrial Relations in Europe 2006 el - v ; tite e ritorial ella eation tant eatest e struc- cr e sector esentation y member tant in e based een LPK and epr ed in tripar VNO-NCW e impor ederations exist; tant than others w the gr olv tite dialogue v een tisan and agricultur e impor oduct of a merger ederations ar f ar CEHIC act as umbr eement betw , esentation in national and smaller conf OSZ and no , ole in tripar tant organisations at sector le or international r epr ederations exist and ar elations ecognised actor in national social uch mor ella organisation exists, FEB/VBO most impor ys a r or r y political divisions (right-left) ers’ peak; y) on individual membership y vice sector eorganising OSZ is the pr ed association of sectoral and ter eral other ed b v A r VDK f LDKK is r No umbr in the 80s failed, MEDEF m Regional organisations in dialogue; D In ser industrial r Mix organisations and an SME organisation associated tur Other impor Se dialogue Cooperation agr L international social dialogue Chamber system with obligator ship pla organisation f (mostl Regional and sectoral mor sector conf MGY MMSZ and GY emplo Small organisation in the agricultur alliance announced betw and MKB Remarks 2004-2005 e O A/BB T (3) L SALA MOSZ AMSZ; UP cultur Agri- y es CSPO Usger AFEOSZ econom Social A UP Unizo TU pi (+ 2) VDK MKB L AMSP IPOSZ GR SMEs GSEBEE UCM; Confa CGPME; ations in the EU Member States, A vices F (2) ESEE MHRA KISOSZ Ser . confeder s’ o-sector SPS CIF er Constr y Main determinator of constituency Macr y OSZ; OSZ V T SEB FOI Industr e of emplo STRA OKISZ; A KZPS CCCI COC OSZ A ; D LPK UEL BD IBEC ETTK CEOE LDDK Structur MEDEF General FEB/VBO MGY OEB MEA, VNO-NCW SPCR; Confindustria le 1.5: ole* b a T dination r ong ong ong ong ong eak eak eak eak eak eak w medium str medium str str w str w medium medium w str w w medium medium Coor 8 1 2 1 1 1 3 2 1 2+1 1+3 1+5 2+2 1+2 1+1 0+5 1+1+10 Number V T IT L NL L LU BE CZ DK DE EE EL FR IE CY HU MT ES

34 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1 y which el v y) or xistence; eated ormerl vincial le tant local o pr ederations f AEP cr oots in the TT & PT and mainl ce and (f impor AIP & ers’ organisations in public y ederation in the public sector ederation to enlarge their hen more than one in e y membership; y membership of chambers, elations; ormer SAF; (cont.) EK is merger of ers’ conf wned enterprises y a conf ; y tant emplo tant T and BwP for the European foundation ed in bargaining system olv v ecentl industrial r r Chambers of Commer KPP is the oldest with r Compulsor Compulsor CIP and CCP main peak f SN is the f emplo Split up in 2004 impor State-o influence dominate (but system under debate) in (SKL) Impor sector Remarks en, IA confederation, w e .Leuv 2004-2005 ers’ AP y MTL C cultur Agri- A-K.U y y HIV KFO tant emplo SFO; econom Social iles, compiled b : most impor ZDODS (SY) ZRP ; SMEs y prof OZS Underlined side; vices CTP CCP ations in the EU Member States, ers’ Ser y . o-sector confeder Constr s’ Main determinator of constituency Macr er y y aining on the emplo OI g CIP V aining; Source: Industrial relations countr Industr g e bar v e of emplo e bar v O AIP) ZDS , PKPP; AZZZ ; ; ; EK SN CBI BCC WK (AEP General UZ GZS KPP R Structur tant in collecti ole* orking Condition anisations in collecti g W le 1.5: b a T dination r ving and ong ong ong ets): not impor eak eak eak str w medium w str medium w str Coor ement of Li v 4 4 4 2 1 1 1+2 1+2 Number : Chambers (brack T FI PT SE PL SI A SK UK * Coordination role of the peak or Italics for the Impro

35 Chapter 1 Industrial Relations in Europe 2006

2.2. National employers’ peak size. SMEs are organised separately eration SAF (now SN) deliberately federations with reasonable industrial relations ceased its coordination activities at power in Belgium, France, Greece, the end of the 80s and has promoted Historically, two different logics of Hungary, Italy, Lithuania, Malta, the decentralised collective bargaining organisational development can be Netherlands, Poland, Portugal and since this period. Malta has no over- distinguished. Firstly, in many of Slovenia. The construction federation arching confederation, but only peak European countries a system of is an important, separate player in the federations at the macro-sector level. chambers has been established with multi-sector national industrial rela- quasi-legal status. However, in most tions of Ireland and the Czech Repub- of the countries, these chambers lic. Finally, separate federations with 2.3. Trends in membership became pure service organisations or some impact at the national level exist structures they specialised in lobby-activities in several countries based on a rank- related to the product market. Only and-file from agriculture, coopera- Opposite evolutions in the organisa- in countries like AT, SI, LU and to a tives or the social economy. However tional structure of the employers’ lesser extent in CY, do these cham- in most of the Member States a lead- confederations can be distinguished bers play a role in the industrial rela- ing employers’ organisation can be within the European Union in recent tions system. Secondly, all the EU discerned (underlined for each coun- times. countries have seen the development try in Table 1.5). of ‘volunteer’ employers’ organisa- Mergers and rationalising happened tions, which most of the time need a The availability of a general and/or in Ireland (1993), France (1998), kind of registration or recognition for leading employers’ confederation Luxembourg (2000) and Finland being active in the field of industrial does not guarantee, however, that (2004). Economies-of-scale or the relations. this confederation plays a strong role integration of industrial relations in coordinating the activities of the interests and trade interests are very Every EU Member State has one or employers’ organisations in the often the incentive for merging The more national employers’ peak fed- nation collective bargaining process- two major Dutch confederations, eration operating in the system of es. A strong coordination role is VNO-NCW and MKB, recently industrial relations. Mainly in the mainly taken up in the small announced an alliance. In Belgium south and the east, there are coun- economies of Western Europe (Aus- the regional and federal employers’ tries with difficulties of establishing tria, Belgium, Denmark, Finland, confederations have been working a unified front of employers’ umbrel- Ireland, Luxembourg, and the more closely together in the last cou- la organisations. Italy, Hungary and Netherlands). In the large countries ple of years. to a lesser degree Poland and Portu- of the EU-15, such as the UK and gal are the prime examples with Germany and to a lesser extent Italy Splits and rows on ‘representative- respectively 12, 8, 4 and 4 cross- and France, national peak federa- ness’ occurred in other countries, not sector peak organisations. Malta has tions struggle to play a significant only on the peak level, but also on five important employers’ organisa- role in collective bargaining or social lower levels. The Danish DA is in a tions, which are not confederated. dialogue. In Germany it is under- phase of restructuring, because its stood that the sector associations, major member organisation Danish Every Member State has employers’ rather than the national umbrella Industry expressed serious doubts peak federations, which are organised organisation, are in charge. Medium- about the need to be serviced by a on a general basis. These confedera- roles are taken up by employers’ con- central employers’ confederation. In tions try to organise members of the federations in the south (Greece, recent years, due to the declining whole private sector in their country. Portugal and Spain) because they number of members, some German However, they are not successful in play a role in (most of the time) employers’ organisations have tried every EU country in doing this. In ongoing tripartite social agreements. to attract, or retain, members by Germany, Greece, Malta, Portugal, In the new Member States the pic- offering a special membership with- Sweden, umbrella organisations ture is more mixed. A strong role, out attachment to collective agree- which organise a macro-sector (for although under attack, exists in ments (so-called Verbände ohne Tar- instance industry, services, metal- Slovenia (Chambers). Medium ifbindung – OT). Portugal witnessed working or financial sector) are more importance can be assigned to the a (renewed) attempt by the trade important. Another factor of division employers’ confederations of Esto- associations AEP and AIP to gain on the employers’ side is a peak fed- nia, Hungary, Latvia, Lithuania and more influence within the institu- eration, which represents a specific Slovakia. Weak involvement is the tionalised social dialogue. They cre- constituency, and has gained consid- norm in the other new Member ated in 2004, the Entrepreneurial erable power as well as the general States (Cyprus, Czech Republic, and Confederation of Portugal (Confed- peak federation. The alternative con- Poland). This weakness is also appar- eração Empresarial de Portugal, stituency is very often based on firm ent for Sweden, but there the confed- CEP).

The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

In eastern Europe, these opposite files concentrate on registering the Belgium, Luxembourg and the Nether- changes – merger and splits – occur number of firms organised. Third, lands have a high degree of associa- today on a larger scale and with more union density figures are very often tional power on the employers’ side. turmoil. In Slovenia, discussions based on survey data. This type of They are joined by France and Greece. have started to remove the chambers data collection is most of the time A low density rate, compared to other from their leading position and to not available in a country. Figure 1.2 EU Member States, is found in the abolish the ‘dual’ representation by presents estimates of aggregate Czech Republic, Estonia, Latvia, Slo- chambers and voluntary employers’ employer density, defined as the pro- vakia, Portugal, Lithuania and Poland. organisations. In Poland, the Czech portion of employees covered by all In the last two countries, employers’ Republic and Slovakia the oldest employer associations within a coun- organisations density is only 20%. employers’ organisations, which try’s private sector. As already stated, These low-density countries are all originated in the early transition these data have to be read with cau- Member States with a catching-up period, have confronted fierce com- tion and are used as a proxy for asso- political economy, where the employ- petition from other peak federations ciational power on the employers’ ers’ organisations just like trade unions in recent years. Other new Member side in the Member States. have difficulties of establishing them- States witnessed more centrifugal selves firmly. The other Member trends. The Cypriot OEB established The (weighted) average employer rate States have a middle-range density rate itself more and more as a coordinat- of organisation is approximately 55 to of employers’ organisations. In other ing body at the employers’ side. 60% in the EU. In other words, on words, only with the exception of Although fragmentation is still high, average a considerable majority of pri- seven, mostly east-European countries, the Hungarian peak federations man- vate sector employees in the EU-25 employers’ organisations are well- aged to create a coordination body work in a company which is a member established actors in the industrial rela- for international representation of an employers’ organisation. Howev- tions systems of the European Union. (CEHIC). Both Lithuanian confeder- er, this average hides huge variations in Except for the Nordic countries, this ations (LPK and LVDK) signed an the employers’ organisation density employers’ organisation density rate agreement for more mutual assis- rate between Member States. Small also exceeds the union density rate of tance and cooperation. west-European countries like Austria, the country.

2.4. Employers’ organisation Figure 1.2: Density rate of employers’ organisations, EU-25 density 100

Employers’ organisations density is 90 an indicator comparable with trade union density. A simple measure of 80 density would be how many compa- 70 nies are members of an employers’ organisation. However, looking at it 60 from the power perspective of indus- 50 trial relations, it is more relevant to calculate how many employees these 40 companies have as personnel. 30

Data on employer density are partic- 20 ularly difficult to collect, for three 10 reasons.(30) First, employer associations are much more reluctant than 0 SI FI IE IT SE ES EL LT LV EE PL BE FR PT SK AT LU DE NL CY CZ UK MT DK unions to make such data public. HU Second, they themselves often lack EU-25 precise information on their mem- * Density =% of employees working in the country for an employers, which is member of an bership strength. This has to do with employers’ organisation. Most recent figure (ranging from mid-nineties to 2004); Slovenia: not the the fact that the membership unit is membership rate of the compulsory chamber, which is 100%; EU-25: weighted average. Most fig- the firm. Accordingly, membership ures date from the Industrial Relations in Europe 2004 report.

(30) F. Traxler, ‘Employers and employer organisations in Europe: membership strength, density and representatitiveness’, Industrial relations journal, 31, 4, pp. 308-316.

37 Chapter 1 Industrial Relations in Europe 2006

Employers’ organisations density 4 In countries where the employers’ employers’ associations as member- seems furthermore – although we organisations are strictly specialised ship organisations (and as a result in must not forget the empirical data in employment and social affairs some countries a merger has resulted are scarce – not to be hampered by a and coexist with other trade associ- between employers associations and strong downward trend like the ations/chambers, which specialise trade associations like in Ireland and union density. Observers believe this in other functions, these organisa- Sweden). has to do with the fact that employ- tions seem to struggle more as ers’ organisations developed and membership organisations.(32) professionalised their services in 3. Conclusion other matters than industrial rela- Furthermore, employers’ associations tions in recent years, especially with (primarily in the EU-15) have been This chapter charted the structure and regard to product-market-related confronted in the recent decade by degree of membership organisation on questions. However, the same litera- other pressures. Employers, confront- both sides of the industrial relations ture also pinpoints the following ed with new economic challenges, system in the Member States. facts:(31) may not choose to ‘exit’ their employers’ organisations, but rather to Unions are confronted in most of 4 there still exists a ‘representation ‘voice’ a perceived requirement for these Member States with a declin- gap’ for the growing population of modernisation of their associations. ing membership, especially in densi- SMEs in many national industrial On the one hand, employers, especial- ty. They have recruiting and organis- relations systems; ly large companies, have put strong ing problems in expanding areas of pressures on their associations to the service economy. They are fur- 4 trends of decentralisation of col- restructure for the sake of economis- thermore confronted with the chal- lective bargaining could in the ing resources. On the other hand, lenge of better representing the fol- long-term harm the membership demands have been made to defend in lowing groups in a more and more levels of employers’ organisations. a more self-confident and straightfor- diverse workforce: women, (young) Although one could also argue ward style the values, spirits and people in atypical jobs, minority eth- that this would only lead to a importance of entrepreneurship in nic groups, workers in small work- change in tasks, namely less col- society. Lower membership dues and places. In other words, today’s lective representation in (sector or demands for more accountability of changing face of work has a pro- national) bargaining and more the leadership have been key points of found impact on the organising and coaching and consulting in HRM discussion in this respect.(33) Function- recruiting potential of trade unions. and social affairs of the member al adaptations with a stronger focus In recent years, unions all over companies, it probably has a neg- on product market issues have been Europe have as a consequence taken ative effect on membership densi- another important dimension of this up this membership challenge by ty of employers’ organisations; organisational restructuring of developing new revitalisation strategies and methods.

Box 1.10: The French MEDEF as prime example of restructuring as On the employers’ side the picture is employer’s confederation less clear. Membership losses seem not so widespread, because these The ‘Mouvement des entreprises de France’ (MEDEF): the new name of the organisations very often not only French employers’ association, formerly the ‘Conseil national de patronat specialise in defending industrial français’ (CNPF), was adopted in 1998. MEDEF enlarged its executive relations interests, but are also active council to include more representatives of the national network and to make in servicing, networking and lobby- it ‘a body truly representative of the French enterprise’. The organisational ing activities in other segments of the restructuring was the culmination of a process dubbed ‘en avant l’entre- economy (competition and market prise’ (‘forward with the enterprise’). In its founding charter MEDEF regulation, industrial policy). Never- stressed the promotion of the entrepreneurial spirit in France as its primary theless, these associations are also goal. In the economic and social parts of its plan, it puts forward state confronted with recruiting and reform as an absolute priority. organising challenges:

(31) F. Traxler (2004b),: ‘Employer associations, institutions, and economic change: A cross-national Comparison’, Industrielle Beziehungen, 11, 1-2, pp. 42-60; F. Traxler (2004a), o.c. (32) The prime example is Germany, see: W. Schroeder & S.J. Silvia (2005), Why are German employers associations declining? A challenge to convention- al wisdom, The Minda de Ginzburg Center for European studies, Harvard University, Programme for the study of Germany and Europe, working paper, 05/3. (33) More details on these trends in organisational restructuring at the employers’ side from a perspective of economic internationalisation: W. Streeck et al. (2006), Governing interests: business associations facing internationalization, London, Routledge.

38 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 1

4 a ‘representation gap’ with a grow- tion quotient is from the largest 4 Hungary: Labour force survey ing number of SMEs, which have a union and dates back from the end 2004. traditional, but enhanced scepticism of the 1980s). towards the industrial relations role 4 Ireland: Central statistical office, of employers’ organisations; 4 Cyprus: Average of ISSP survey Quarterly national household sur- (35%) and 70% reported by Viss- vey 2004. 4 the putting into question of role er in Industrial relations in 2004 and task of (con)federations in sys- report, which is based on adminis- 4 Italy: Figure based on administra- tems, where decentralisation of trative data, provided by the tive data only from the three con- collective bargaining is appearing Industrial Relations Service of the federations (CGIL, CISL, UIL). strongly; Ministry of Labour. These administrative figures are crude data. 4 Latvia: Administrative data cor- 4 (still) capacity-building problems Both figures are from 2002. The rected for unemployed, reported in new Member States, where they distance between the both figures by EIRO. had to start as organisations from is extremely large. In an previous ‘scratch’ in the post-communist ISSP survey the density came 4 Lithuania: 14%, figure reported period. closer to the official figures (64% by EIRO based on administrative in 1998). In other words, the data of the union self, without cor- Cyprus data have to be read with rections, thus probably overesti- great caution. mated. Figure based on the Work- ing life Barometer of the Baltic 4 Czech Republic: Average of ESS countries is 11% in 2002. Appendix data sources survey data of 2003 (21%) and union density CVVM national opinion survey 4 Luxembourg: ESS survey data data (reported by EIRO) of 2003 2004. (22%). Malta: Crude density rate stands General 4 4 Denmark: ESS survey data of at 62% in 2004. It is based on the 2004 (80%) and data reported by membership of the registered Trade union density rates are based EIRO and based of an LO report unions (34), divided by the full- on surveys, wherever possible. Oth- on active membership in the time gainfully occupied people at erwise, figures were calculated using country (79%). the time of registering (June). The administrative data (preferable from membership figures come from statistical offices) and adjusted for 4 Estonia: Average from ESS Sur- the annual report of Industrial and non-active and unemployed mem- vey and EIRO reporting (which is Employment Relations depart- bers, according to rules, compiled by comparable with the figure from ment of the Ministry of Educa- Ebbinghaus & Visser (2000). In case 2002, Working life Barometer of tion. The employment figures of (strong) contradicting data, an the Baltic countries). come from the national statistical average is calculated. office. Because Malta has a range 4 Finland: ESS survey data 2004, of (small) unions, which have a controlled calculation based on mixed membership (employees Country details administrative data (adjusted for and self-employed), the total employed members (like E&V do) employment figures are used. 4 Austria: Average of calculation based on information from survey Non-active members are estimat- (33%) based on administrative conducted by the Labour Ministry ed at 8.4% in 1999 and 11.2% in data from the Austrian trade union in 2001. 2003 by the Department of Indus- confederation, adjusted following trial and Employment Relations, E&V rules (excluding unem- 4 France: Data from DARES/INSEE, based on figures for the two ployed and retired members) and Source: Enquêtes permanentes sur largest unions (which covered ESS survey data (31%). les conditions de vie et ménages. 85%-86% of total union membership). Therefore we estimate the 4 Belgium: ESS survey data, cross- 4 Germany: Average from ESS sur- non-active membership in 2004 at checked by estimate based on vey 2004 and ALLBUS survey 11.5%. Taken this correction into administrative data of the unions 2004, cross-checked by calcula- account, we have an estimated net (adjusted for unemployed persons, tions from Ebbinghaus for the density rate of 55% for Malta. students, retired persons and cor- year 2002. rected for a the known overstating 4 Netherlands: CBS, Permanent of the figures, the known correc- 4 Greece: ESS survey data 2004. Onderzoek Leefsituatie (POLS),

39 Chapter 1 Industrial Relations in Europe 2006

survey (controlled for CBS data Structure of Collective Bargain- 4 Slovenia: ESS survey data 2004. published based on administrative ing in Europe 1990 — 2004. data from the unions). National report Slovak Republic. 4 Spain: 2004 data from survey Project Report ‘The Evolving Encuesta de Calidad de Vida en el 4 Poland: ESS survey data (17%), Structure of Collective Bargain- Trabaja organised by the Ministry cross-checked by information ing. A Comparative Analysis of Labour and Social Affairs. reported by EIRO (annual review Based on National Reports in the Poland). Countries of the European 4 Sweden: Labour Force Survey Union’, University of Florence – 2004, reported by statistical office. 4 Portugal: ESS survey data European Commission. Con- firmed by survey data of Interna- 4 United Kingdom: Labour Force 4 Slovakia: Figure reported by Han- tional Social Survey Programme Survey 2004, reported by statisti- diak, Peter (2005) The Evolving of 2002. cal office.

Table 1.6: Comparison of membership figures according to surveys that we use in the chapter, and other sources

Country ESS Survey Others Data source others BE 47 49 Adm. CZ 21 22 Survey CVVM opinion survey DK 84 82 Adm. DE 22 23 Adm. EE 14 * 17 Adm. EL 22 27 Adm. ES 16 17 Survey Ecuesta de Calidad de Visa en el Trabajo FR 12 9 Survey Enquêtes permanentes sur les conditions de vie et ménages IE 40 38 Survey QNHS IT 28 34 Adm. CY 35 ** 70 Adm. LV 18 ** 19 Adm. LT 11 * 16 Adm. LU 41 34 Adm. HU 18 20 Survey LFS MT 57 Adm. NL 28 24 Survey POS, CBS AT 36 35 Adm. PL 20 19 Adm. PT 16 23 Adm. SI 45 41 Adm. SK 31 ** 35 Adm. FI 76 74 Adm./Survey SE 77 78 Survey LFS UK 30 29 Survey LFS

* EE, LT: Working Life Barometer of Baltic countries 2002. ** CY, LV, SK: ISSP 2002 (for Cyprus also ISSP 1998). Correlation coefficient between the two data arrays: 0.929.

Chapter 2 The evolving relationship between collective bargaining and the law in the Member States(34)

This chapter aims at providing an analysis of the evolving relationship Box 2.1: Synthesis of a comparative labour law project between collective bargaining and the law in the last ten years within This chapter summarises the results of a research project called ‘The the European Union. Evolving Structure of Collective Bargaining. A Comparative Analysis Based on National Reports in the countries of the European Union’. The project has Collective bargaining may take place been coordinated by Silvana Sciarra from the University of Florence and co- at the national, sector or company- financed by the European Commission. It aimed at providing a legal analy- level. In no European country does it sis of collective bargaining and of its evolutions in a large number of take place exclusively at one level. European countries (the Member States, Bulgaria, Romania and Turkey). It However, the existence of centralised focused on the role of labour law in shaping the evolving structure of collec- trade unions and employers’ organi- tive bargaining. A network of labour law experts has been drawn on to com- sations in most of the EU Member pile national reports based on a common format of questions. Throughout States has resulted in many agree- the chapter references will be made to these reports. These national reports ments being concluded at the nation- and a general report can be downloaded at the following website: al or sector level, supplemented by http://www.unifi.it/polo-universitario-europeo/ricerche/collective_ company-level bargaining. bargaining.html

If we look at the evolution of national Involved national experts: Ulrich Runggaldier (Austria), Guy Cox, Filip legal systems, we notice that the status Dorssemont, Jan Rombouts (Belgium), Teodor Dechev, Rumiana of voluntary collective bargaining has Gladicheva, Vesselin Ilkoy (Bulgaria), Evangelia Soumeli (Cyprus), Igor evolved significantly everywhere. This Tomeš (Czech Republic), Ruth Nielsen (Denmark), Margarita Tuch is, on the one hand, a sign of the vital- (Esthonia, Latvia and Lithuania), Ange Moreau (France and Luxembourg), ity of national constitutional traditions, Maximilian Fuchs (Germany), Niklas Bruun (Finland), Stamatina accompanied by frequent interventions Yannakourou (Greece), József Hajdú (Hungary), Bruno Caruso (Italy), of the legislature in this field with a Anthony Kerr (Ireland), Loredana Zappalà (Italy), Peter George Xuereb clear intention to fortify — not to (Malta), Evert Verhulp (The Netherlands), Michal Sewerynski (Poland), diminish — the scope and the func- Julio Gomes (Portugal), Serghei Mesaros (Romania), Peter Handiak tions of collective bargaining. On the (Slovakia), Marie-Metka Penko-Natlaãen (Slovenia), Antonio Ojeda Avilés other hand, as emerges in between the (Spain), Birgitta Nystrom (Sweden), Nurhan Sural (Turkey), Paul Davies, lines of some national reports prepared Mark Freedland (United Kingdom). for this chapter, one can sense in the current debate the fear that the autonomy of collective bargaining will be e.g. where plant agreements derogate 1.1. Autonomy of collective diminished by too invasive interven- from nationally or sectorally agreed bargaining tions on the part of the legislator. This standards. fear must be measured against nation- In the European tradition autonomy al legal traditions which have in the of collective bargaining means the past proved able to support the evolu- 1. Collective bargaining development of collective agree- tion of free and autonomous collective ments as sources for the free defini- bargaining. These national traditions as a key component tion of wage policies and working could, on the one hand, be based on the of the European conditions. The function of standard principle of only allowing improve- setting in national labour markets ments in the regulation of the individ- tradition was originally assigned to collective ual’s working conditions (known as actors as a direct expression of free- favor towards the worker). On the In this first section we will high- dom of association. As a conse- other hand, they might achieve a legal light the main legal foundations of quence of this powerful solution, leg- rationalisation of bargaining levels, the European tradition of collective islation on minimum wages was even coordinating overlapping sources of bargaining. Autonomy is the key not considered essential in certain regulations, and aim to avoid the underpinning value of this tradi- countries (for example: Italy, infringement of individual guarantees, tion. Sweden, Germany).

(34) This chapter was drafted by Professor Silvana Sciarra, University of Florence, Jean Monnet Chair; tables 2.1. and 2.2. have been added by the editor.

41 Chapter 2 Industrial Relations in Europe 2006

In many countries – Germany and non-union firms – the 1946 Fair (1) Freedom of association: all Italy after World War Two to quote Wages Act – took place in the early national systems base the legal rele- two examples – the autonomy granted 80s with the advent of Thatcherism. vance of collective agreements on to the collective bargaining system The abolition of the Wages Councils, this principle. This right is the funda- was associated with the abandonment an equally traumatic change for the mental pre-condition for entering a of an authoritarian State intervention. British legal system, took place in more sophisticated system of norm- The same was true for Spain, when 1993.(36) Offering a broader view of the setting by collective agreements. the 1976 Constitution came into evolution of collective bargaining in effect after the abolishment of this country, one can argue – as the (2) The presence of collective par- Franco’s regime. The recognition of authors of the national report do – that ties: bargaining of an employer (sin- the right to collective bargaining in purely voluntary systems show their gle or together with others) with a art. 37.1 of the Spanish Constitution, weak side when external changes trade union or other workers’ organi- strictly linked to freedom of associa- occur, either because of – a different sations. They represent the collective tion, opened up an autonomous space political agenda, or because of market interest in the bargaining process. for collective parties empowered to demands, as in the case of privatisa- confer enforceability to collective tion of relevant sectors in the econo- (3) The normative function of col- agreements for all workers (known as my. This may explain why the formu- lective agreements is a core principle erga omnes effect). la of ‘collective laissez faire’, central bringing about different – and yet in developing a British approach to the functionally equivalent – implica- A similar development took place in relationship between law and collec- tions, by granting a generalised most of the new Member States, tive bargaining, is not comparable to enforceability of the agreements where autonomous collective bargain- the continental notion of ‘autonomy’. either through legislation or other ing arose in connection with the set- The latter has strong constitutional administrative measures (see for an ting up of free markets in the 90s. roots, either in connection with free- overview Table 2.1). Democratic constitutions proclaimed dom of association, or as a principle in after 1989 restored freedom of collec- itself, when the constitutional right to There are at least two EU countries – tive bargaining, while setting the con- collective bargaining is separately Italy and Denmark – in which these ditions for collective representation of mentioned. core principles are guaranteed despite worker’s interests and granting trade the lack of specific legislation. union freedom. Substantial modifica- The notion of ‘autonomy’ should be tions also occurred in national labour the starting point for a critical reflec- For example: In Denmark there is law systems, while adjusting them to tion on the boundaries of regulating scarce legislation on core collective renewed constitutional principles. To collective bargaining by law. It can labour law issues and no statutory quote an example, the Bulgarian also help analysts to ascertain when definition of a collective agreement. Labour Code was amended in 1992 and whether there has been a viola- Collective agreements cannot be and the comparison between the cur- tion of democratic rules governing the extended to cover employers who rent and previous Article 50, dealing organisations representing employers are not signing parties. However, as with contents and scopes of collective and labour. a result of the obligation to imple- bargaining, shows a significant con- ment EU Directives a new version of ceptual difference in the legislative the interrelationship among law and approach used before and after the 1.2. Core legal principles collective agreements developed in reform.(35) backing the autonomy of the country. For example, collective collective bargaining agreements on the implementation In this picture the UK tradition takes of the Part-Time Directive were its own place, not easy to compare In the European tradition of labour extended through legislation, in with many continental countries. The law four core principles support the order to cover employers who are repeal of legislation providing the development of autonomous collec- not parties to collective agree- extension of collective agreements to tive bargaining. ments.(37)

(35) Bulgaria, National Report, section 1.1. (36) United Kingdom, National Report, section 4.2.1 with references to the relevant literature. (37) Denmark, National Report, section 8.1.3.

42 The evolving relationship between collective bargaining and the law in the Member States Chapter 2 ol ee- y ds of ty to est, eb een ce after ties to yal equest; or um Ro Par ers in wher e Bargaining, ; y y; eement can be yment egions or ocess of con- es, y) standar t the r ect betw y of Labour and Minim ; y can enlarge ectiv es of each par phical r en sector comes into f ed Emplo y the (pa Branch agr essional statute which or publishing this agr escribed pr of ust be in public inter en sector ppl ees and emplo y binding eff ers’ organisation and trade y esentativ y ees in sector or occupation; y the Ministr y pr y egion or compan the Ministr eement; xamples ty has to suppor epr ent geogra ers in a giv y eement is submitted to a contr er ers, emplo e agr y y a legall esponsible f e par el; ers in a giv All emplo v y extension m es as e eme Labour Council. y obliged to a e onl en sector/r The agr v y le y sector) Declaration b ees in the branch); tners; t to grant a Register y esentativ ed; ed collectiv pplied in the legall ees and emplo y tite Supr epr eements to diff ocedur w and ha equir egulation. el of extension). e not legall y to the transposition of EU Dir y a majority of the r ers in a giv v y ees and emplo y at least 51% of emplo egister eady a y r e the compan Most r v y unions and/or emplo All emplo om tripar e alr essed to the National Commission on Collectiv orking hours can be extended. eements (mostl abo umber of emplo ers mainl ernment r ed prior to extension, dr while public authority is r v ef gr ust emplo equest of social par All emplo er o ad v xtension pr e a arifausschuss) r equest b y g ties, ees and emplo y ties, Decision of Labour Cour although judges ar the latter being its ability to constitute a pr e seen as private la , , s domain if signed b e’; eement; er Affairs) eement m v Upon r e-conditions: extension r ust be co e Majority rules ar Pr uneration and w . tunity w ried out b eceiving opinion fr e agr y collectiv e sectors and/or enlarge agr y agr All emplo ties; em little used. Ho eement’ y automatic (ex lege); , esentativ eements ar esenting the biggest n ed b er v epr tuall er e al status and e v epr e agr pplication m w eement; y r y of Labour but also on r er its oppor e compan ho leg v v el of extension). y terms of r e of the bargaining par v en legal status or signing par e bargaining committee (T est of the sector e no bargaining exists (second type or le eady co y a joint declaration of par ty but vir onl eements to entir ty to the collectiv Collectiv y of Labour after r easons of fairness. ers with similar activities in the branch; oughout the agr y; ee or act is needed; e giv y The extension is car v substantiall y par e inter or r ties to an agr ers alr aining: y ees in field of a g y binding f y ust decide in writing the scope of extension; This facility is, ties and their members. e of the Ministr ust be ’ ee (Minister of Labour and Social Emplo ; eement. y the Ministr y do so f y the par er its legality and o eements ha e bar y the Ministr ties m v v the y a special collectiv or other emplo par equest of one or mor orm of extension. e agr eements onl eement (first type or le eement in cases wher eement m eement is extended b Affairs. equest (at least one of them r No ministerial decr ed f val b y on initiativ ee equest of signator esses the collectiv en sector o agr eement (REA); , y a judge o ppr oint r the agr expr the stipulating par contracts; a Extension is automatic thr b On the r other economic sectors. Implicit f An agr the Minister can extend agr ment; Request of at least one par of 50% all emplo On r Mostl Social publication b a giv Declaration b the agr cluding an agr Application b Agr union(s); J Ministerial decr declar No Extension possibility off abo the agr collectiv Decr y cel y w eement; y b w y scar changed y e agr e function of collecti specific acts, er enacted. eements dating v v especiall , w y w elopment of ne but ne v , but statutor y basic agr De ecent decades sa Normati e bargaining act, r ence w is in general onl egulate bargaining activity visions in 2000-2001 er but b e w in 1990 , ef w y the Spanish constitution; y a specific la y 20th centur w to r visions to the la w of 2004 y definition of collectiv le 2.1: e y la tant la b ence in the constitution; e Bargaining act of 1949 e labour la a y the competent Minister y major r er T tant r ers Statute eb ef ork om the earl oluntaristic system or principle of y a specific collectiv ecognition b egulated b W Guaranteed b Constitutional r Constitutional right; impor the Fillon La No special la wher Constitutional right; Collectiv Not in the constitution, Constitutional rights; V No r and impor issued b Mentioned in the constitution and organised in 2005 fr No statutor b Collectiv Legal status legal abstention r r y ES IT FR DE Countr BE EL IE EE CZ DK

43 Chapter 2 Industrial Relations in Europe 2006 ust , ed In . r er v e ying ‘suffi- ties. w y sa oof of , er ust be Ho v If he/she fails eement m eement e exception in ecent but in practice ust co OÉT); esent pr ees to whom no ed to be extended. age and Labour y eement m e a rar y Legal Notice if y in such a manner W (cont.) anács, ty to the agr T opriate trade union or ed. eements has not occur eement m the agr el to be extended b w v ppr Agr t of the legal doctrine . e generall eztetó eements ar ollo ted due to the r y eements is rising, y legislation b eg yment. xamples y Grand-Ducal Regulation epor eement to emplo y a par dek Applicants need to pr el agr ; e to be f e to be met: v en sector v y sector) v sector agr e agr er of branch agr , -le Austrian Economic Chambers guarantees os Ér es as e w w pplicable mor e the enterprise le pplication of one or both bargaining par vice ha yho v eady been r tners and b en sector ers in y An ers in a giv on a y Affairs and Emplo , e alr e-condition is that either par ocedur upon the demand of an a v Declaration issued b oint Conciliation Commission on advice of competent ; e-conditions ha y pr es, all terms become general binding once the agr umber of sector eements (mostl ers in a giv eements abo y gr equir tain pr y of Social e bargaining. The n The onl e a en sector . . e agr equest; y some social par ees and emplo ed via the enactment of subsidiar y elopment v e union has the obligation to do so (single or with others). v xtension pr yment and Labour after consultations with the No practices ha est so r Arbitration Office esented on the J y Ministr e been subject of conciliation or arbitration can be ask y de v rather than a bargained solution. though cer y membership of emplo , epr ees and emplo ers in a giv esented b y collectiv y y esentativ ederal ee All emplo ws collectiv tain conditions should be made a est Reconciliation Council (Ország ties r epr e pr es of the National Conciliation Ser ust file a joint r ties. eedom of collectiv ed in that sector Decision b y egulation of extension. pplication of supra-establishment collectiv e ar y a r the practice of generalising binding po All emplo , riding social inter ties m Austrian F ees’. e compan ocedur t to be extended. y y Minister of Emplo v er al status and e er eements can be achie . v v ties; ees and emplo par eements which ha e ocedur y in a stage of earl y because obligator , w y the leg el; eady emplo v e ministerial decr e agr y agr Ho tite National Inter oposal of the par ed b e bargaining par tance onl y extend the a ed to bargain b Decision b ed practice or r vant emplo equir der ers alr All emplo when the o ele aining: ork y compliant with the fr er ask or extension g eement or its par y y contracting par e f vations to this pr pplies, y often a kind of policy document, ell-defined rules and pr no structur er w , . , e bar ernment can be persuaded that cer ers’ organisation. y emplo er e v v Reser v ocedur y v . o an e wing a unanimous pr essional chambers; erage ers 60% of w y ar w eement a ticle 51 of the Labour Code 2002 allo v v of oland. equest the agr ollo practice of little impor concluded at the sector le Request of one or mor No pr Extension does not r the operationalisation of the Code to do so Application b Ho cient majority of r Minister of Labour ma Automatic (ex lege); sector bargaining is still mainl co The extension of collectiv f the g Extension possibility off abo P Extension can be or co Ar emplo their majority status; Committee of the tripar so far that it is not full r agr a decision of the Minister Social Security and Labour pr NB: y ed b y y e olish w y w bargaining eement Act 2002 ollo visions on w Labour o ne egulated b e collectiv otected b e function of collecti y r v vil y pr el y membership e bargaining granted w the constitutionall eements acts of e bargaining right, ocedural basic agr y in terms of pr ties Normati eements because no la olish constitution and f y a pr elations code) s agr ers’ side to structur especiall y e Labour agr e bargaining is hea le 2.1: yment and Industrial Relations eedom of collectiv b egulated until no a eral ratified ILO instruments, w act since 2004 w on Labour (2002) v T y the 1997 P Collectiv the emplo La has r guaranteed collectiv is organised b Gentleman’ Constitutional amendment of 1998; (industrial r Ne Hungarian labour code of 1992; Collectiv the bargaining par 1927 and 1937 bargaining with obligator Full fr Emplo Legal status Legal based system of chambers on Right to bargain collectiv the 2000 substantial amendment of P se legislation, b labour code Code of 2002 y T V T NL L Countr CY A L LU HU PL MT

44 The evolving relationship between collective bargaining and the law in the Member States Chapter 2 . e er e y prac- The y , er er y eement esenta- v y exist in e y emplo w epr y extension but without entl taria de e agr ‘r r ding to the Ho or orking condi- Act on collectiv eement does not e automaticall er association. e Accor y v der (P e agr eement is binding also (cont.) y non-signator eement and er concerned b eement. y e agr . yment and w ee does not cur y Council of State needs to eements ar w (still in enactment). viousl ee or legislation. e tunity to object the decision Extension or w la egister visions of the collectiv o xamples ea; ts. dance with the abo cing and structuring single-emplo e oppor erage of the agr v v y sector) y the ne or e trade union or emplo y the pr es as e phical ar einf ppl eement. eement’ with a pr y some kind of decr espectiv der or ministerial decr cumstances that justify such an exceptional measur e agr National co ocedur ; y union. and unions ha which has concluded this agr ee that the sectoral collectiv Special committee set up b er has to a ocused on r y ed; eements (mostl y f eements b belonging to another section of the signing union, or whom the existing sectoral collectiv gr pplication agr y Decr en sector ‘a mation of the national repor en sector or geogra e a ees, e agr equest of the r y ers whose business activities and emplo The emplo y xtension pr y infor y means of official or (2) eement can be extended in accor their associations, since 1 December 2004 the consent of emplo This situation can be changed b ers’ organisation, ers in a giv y y; Extension decision published in a public r y ers in a giv eed with the signator y y collectiv ers, e economic and social cir ees. e agr ealised on r y y y can stipulate b vak Republic and f y to emplo y r ees and emplo e ar e bargaining has mainl y (1) union signs an y conditions and check eements b y members of the bargaining chambers all sectoral agr eement. Emplo . e bargaining, w to extend collectiv ced onl e agr e compan aining; adjusted b v or e used: g al status and e ees and emplo ed if ther y ees and emplo w y or decision on extension of the collectiv or collectiv e necessar leg e obligator ocess is usuall edish la e bar t f ect ar Affairs and Famil v y allo or almost all emplo e not members of emplo eness of the agr ers ar pplies also to his compan All emplo Onl y All emplo Social Act on collectiv e established in the Slo ; , e suppor aining: ar econdition f en sector ar , unless otherwise has been agr g esentativ y pr y the Minister of Labour eement a Extension can be enf ers who ar y The extension pr epr Legislativ e bar e similar y of Labour y of Labour et. v eement), y eness’ in a giv ppl or emplo tices with an extended eff also to outsiders (non-unionised emplo tions ar It is not possible under Sw the UK; The legal obligation of the sectoral collectiv a extensão) b Ministr that the agr (but not to stop it); extended with validity f is a necessar confirm r an agr The possibility to extend collectiv bargaining. bargaining. Automatic (ex lege); tiv Extension possibility off abo As all private emplo Ministr f last amendment to e study on changes in collecti v y in Act entl r visions ocedural o No major oluntarism O Comparati the pr e function of collecti v egulation of extension eements cur material pr yment Relations Act e agr ecognition and ence; eements and better r er Normati ef e agr y a special y the Labour Code; egulation (principle of v e bargaining act (extended in the 70s to y r w on collectiv le 2.1: ocess of adoption b visions b a w Labour Code since 2004 w la o T pplies) although Emplo egulated b Co-determination act Constitutional r pr Basic collectiv statutor Ne Ne the pr r in 2001 Britain has no codified constitution. a establishment of bargaining units (1999) defines the r Collectiv the public sector); Legal status y SK SE Countr PT Source: Industrial relations in Europe 2004, EIR SI UK FI

Chapter 2 Industrial Relations in Europe 2006

In Ireland too we encounter a regime legal relevance in systems in which 2. Trends and of non-binding collective agreements the approach is highly formalised, that can be registered by the Labour either in law or in voluntary sources. emerging legal Court, if the signatory parties so questions in require. The Court checks a wide It may pre-determine the contents of range of conditions in order to be sat- collective agreements at a lower the relationship isfied for the registration. The latter level, or indicate criteria according between law and makes the agreement generally bind- to which certain subject matters will ing in the same class or group. Very be assigned to a decentralised nego- collective seldom is this option used. However, tiation. When procedural agree- it is worth mentioning such an oppor- ments dealing with the organisation agreements tunity, since it confirms that core of bargaining levels and the distribu- principles are looked at by the Court tion of competences are part of After discussing the core legal status as essential elements to qualify the wider agreements, this core princi- of collective bargaining in Europe collective agreement and consequent- ple becomes even more relevant in and its supporting principles, we will ly register it. The 2001 Industrial the bargaining process and in the now give a case-based overview of Relations (Amendment) Act, amend- creation of complying mechanisms. recent trends in these national sys- ed in 2004, empowers the Labour It can legitimate or give impulse to tems of collective bargaining in Court even further to regulate by lower bargaining levels in countries Europe. binding decision pay and conditions where the cohabitation with upper of employment, when no collective levels is more difficult. agreement applies to the employer in 2.1. Decentralisation question. One central criterion the We can quote the Italian 1993 Court must be satisfied with is inde- Protocol of Agreement,(39) the 1997 The tendency to decentralise collec- pendence, namely the fact that parties and the 2003 Spanish Acuerdo tive bargaining at the company or of equal standing are not controlled Interprofessional. Equally, the tripar- enterprise level is reported in almost by one another.(38) In the Irish example tite agreement reached by the all country studies. However, many the law shows its supportive nature Spanish Socialist government in July different solutions are adopted in and in a sense its respect for 2004 tries to achieve a rationalisation countries and the functions assigned autonomous bargaining. Indepen- of the bargaining system as a whole. to decentralised agreements are not a dence of the bargaining agents can be Also the Dutch 1993 Agreement static feature, but something that can regarded as an essential and inherent reached within the Labour Foun- change rapidly. element of freedom of association dation, significantly entitled ‘A new and at the same time as an element of direction’, aimed at further decen- ‘The key picture which emerges their capacity to put in action the nor- tralisation in setting employment from the table is that the setting of mative function of a collectively conditions and allows derogations, wages and employment terms in the agreed source. sometimes in consultation with EU involves bargaining activities at works councils. different levels – the sector or branch (4) The fourth core principle has to of economic activity, supplemented do with the procedural function of In Hungary the articulation of col- with company or enterprise bargain- collective agreements and marks the lective bargaining at different levels ing and, in nearly half of the EU recent evolution of collective bar- is left to the contracting parties, economies, also with some form of gaining in original ways. Although despite the fact that the law provides national bargaining.’(40) this fourth principle may be consid- for a normative function of collective ered as optional, since it is merely agreements both at sector and plant In Poland decentralisation coincided complementary to the normative level, creating some uncertainty in with the emergence of free trade function, it may acquire a distinct the hierarchy of sources. unions – Solidarnosc in particular –

(38) Ireland, National Report, section 1.ii. (39) Italy, National Report, p. 29. (40) Industrial Relations in Europe 2004, p. 38.

46 The evolving relationship between collective bargaining and the law in the Member States Chapter 2

Table 2.2: Levels of collective bargaining involved in agreements. Unions have recently wage-setting, EU-25 requested to have wider control over decentralised bargaining.(43) Inter-sectoral Sector Enterprise In Germany single-employer agree- BE ** *** * ments have tripled since 1990, par- CZ * *** ticularly in the former GDR. DK * *** ** Furthermore, the spreading of ‘open- DE *** ** ing clauses’ in sector agreements EE * * *** increases decentralisation. This phe- EL ** *** * nomenon brings about differentia- ES * *** ** tion as a new regulatory pattern, dif- FR ** ** ferent from the uniform standards IE *** * * provided for in sector or industry IT * *** ** agreements.(44) CY ** *** LV * *** In Austria ‘organised decentralisa- LT * *** tion’ is described as a phenomenon LU ** ** mainly linked to ‘delegation’ or HU * ** *** ‘opening’ clauses, which allow some MT * *** flexibility on economic and working NL * *** * conditions – in particular working AT *** * time – at company level.(45) PL * * *** PT * *** ** The UK report proposes the image SI ** *** ** of ‘centralisation at the company SK *** ** level’ to indicate how the fulcrum of FI *** ** * collective bargaining has moved SE *** * away from the sector or industry UK * *** level.(46)

* existing level of collective bargaining The Irish report indicates that ** important but not dominant level of collective bargaining decentralised company level agree- *** dominant level of collective bargaining ments are the effect of decreased Inter-sectoral = Tripartite wage coordination or national bilateral agreements between peak unionisation in multinationals.(47) federations. Sources: Industrial relations in Europe 2004 and national reports. The same may be true for the expression decentralised agreements. In the UK, for instance, the tendency to and is still considered a choice which mechanism and then to be bound to decentralise, namely to move avoids possible excessive interfer- observe normative terms and condi- towards single employer bargaining, ences from sector level.(41) Pressure is tions of employment.(42) has been counterbalanced by a cen- put on State-owned enterprises by tralisation consisting in a move from the Ministry of Finance to enter sec- We have to highlight cases in which shop-floor to company level.(48) tor agreements, overcoming the fears bargaining agents at plant level are shown particularly in privately provided for by law. In Spain, for In Italy a long-lasting disagreement owned enterprises to be forced into a example, works councils operate with – both in academic circles and proper collective representation a clear mandate and sign 74% of plant among the social partners – shows

(41) Poland, National Report, section 5.d. (42) Poland, National Report, section 5.d. (43) Spain, National Report, section 2. (44) Germany, National Report, section 3 of the Conclusions. (45) Austria, National Report, section 3, quoting Traxler for the expression ‘organised decentralisation’. Delegation clauses in the metal industry allowed also for derogation in pejus on wages, but were not considered a suitable solution and therefore disappeared at the end of the Nineties (see section 5). (46) See United Kingdom, National Report, section 3.2.2, for references to decentralised collective bargaining taking place in privatised industries, as part of a wider decentralisation of decision-making, bringing about in some cases the weakening of unions’ bargaining position. (47) One among seventeen major multinational companies set up in Ireland recognise a trade union, as indicated in Ireland, National Report, section 2.i. (48) United Kingdom, National Report, section 3.2.2.

47 Chapter 2 Industrial Relations in Europe 2006

the difficulty of intervening in for- 2.2.1 Other actors are implicated 2.3. Collective agreements and malising the role of decentralised non-standard workers agreements. In the 2001 ‘White For example: In Austria we see a Paper’ presented by the newly elect- distinct form of decentralisation, not Whereas autonomous collective bar- ed centre-right administration it was governed by a collective agreement, gaining brought about solid innova- suggested that national agreements but by a so called ‘work foundation’. tions in the past, both in norm-setting should be reduced in their scope, in The latter, functionally comparable and in rationalising internal proce- order to liberalise recourse to decen- to a social plan, mainly deals with dural machineries, recent develop- tralised bargaining. Once more, as the consequences of restructuring. It ments can provoke a dispersion of the previously underlined, the practice brings together the social partners results achieved, unless new solutions of collective bargaining is going into and other actors, such as the are found. Large (new) groups of a different direction from the one Chamber of Commerce and the workers may either be excluded from shown by the government. A nation- Labour Market Services, in order to collective bargaining or create new wide agreement signed in 2004 by favour programmes for re-training separate domains of norm-setting. the main confederations, covering workers and facilitate their return to the artisan sector confirmed the role the labour market.(50) When compa- In this point 2.3 we summarise how of national collective agreements nies undergo serious economic con- some countries have been very inno- and indicated a wider scope for straints, even temporarily limited vative in creating new ways of col- decentralised agreements, not only wage reductions can be dealt with in lective norm-setting for a particular at the company level, but also with- works agreements – not collective new group, namely agency workers. in certain territorial areas, in order agreements – at company level.(51) to redistribute productivity and fill We can refer to Sweden, as for the pio- the gap between planned and current neering 1998 agreement guaranteeing inflation.(49) 2.2.2 Different groups are targeted agency workers hours equal to 75% of ordinary full-time work. The spreading To conclude this point on decentrali- For example: Collective agreements of agency work brought about an sation, comparative analysis reveals a on training may also be referred to increased number of national collec- picture of different bargaining levels, people seeking employment, as it is tive agreements, guaranteeing from 75 combined with different legal regimes reported in Greece, where the role of to 90% of salary of full-time work. for the coverage of the agreements in LAEK, an Independent Fund for Open ended contracts are becoming question. Particularly when plant Employment and Professional the general rule, leaving fixed-term agreements are not bargained and Training run by the social partners, is contracts as an exception. In 2000 LO signed by management and labour highlighted.(52) chose to be involved in negotiations organisations having a precise man- with the Swedish Service Employers’ date to adjust standards and even to Association and in the 2002 agreement depart from previous agreements, the 2.2.3 New roles are assigned to the wage guarantee went up to 85- outcome may be problematic in as collective agreements 90%. Working conditions applied by much as it generates uncertainty in the user company are also extended to individual employment contracts. For example in the Swedish comparable agency workers. Employment Protection Act – an example of legislation providing an Sweden must also be quoted for the 2.2. Collective agreements and active role for the social partners – it spreading effect of the innovative the consequences of is stated that agreements on redun- solutions agreed upon for agency restructuring dancy must include measures on just workers. LO set a model for SACO, cause and notice for dismissals. which signed a similar national Changes in the status of collective Agreements signed in 2004 for the agreement in 2002, introducing agreements are also caused by look- public sector also take into account 100% salary guarantee, even when ing for innovative measures to cope measures to facilitate the return to agency workers are not sent to user with restructuring. work of redundant employees.(53) companies.(54)

(49) Italy, National Report, section 3.5 and 9.3. (50) Austria, National Report, section 6. It is reported that the first work foundation was established in 1987, in the restructuring of nationalised steel industry. (51) Austria, National Report, section 6, quoting field research by Blum et al. (52) Greece, National Report, section II.D, specifying that the need to target specific groups of workers or unemployed started in the early Nineties. (53) Sweden, National Report, section 5.5. (54) Sweden, National Report, section 5.5.

The evolving relationship between collective bargaining and the law in the Member States Chapter 2

In Finland too the tendency is not to 2.4. Collective agreements and on the adaptation of working hours – treat agency workers as a separate social rights entitling each worker with a right to group and to expand to them all guar- reduce working hours after one year antees provided for in collective agree- Collective agreements can also be the of employment – to the Work and ments. It is the 2001 Employment most appropriate tool to interpret Care Act, which mostly relies on col- Contracts Act that specifies duties and widespread needs in society and to lective agreements for the regulation obligations of the user company. translate these needs into social of various kinds of leaves.(60) Agencies must comply with the mini- rights. We have to mention the right mum wages applied by the user com- to training. A recent example: In pany, unless a separate collective 2003 the French inter-professional 3. Interpreting trends agreement is applicable for the agency agreement on lifelong access to train- sector.(55) ing was signed, following three years with regulatory of intense negotiations among the schemes In Italy collective agreements can social partners.(57) Innovative contents intervene in crucial matters, according characterised this text, mainly in pro- to the new legislation on agency work viding tools for shaping an ‘individ- To understand and interpret the main provided for in the 2003 Decree ual right’ to training and creating new evolutionary trends in collective bar- reforming the labour market. For open tools to enforce such a right. gaining, summarised in the previous ended contracts intervening between section, three ‘regulatory schemes’ the user company and the agency, col- Another significant example is to be are proposed from a legal point of lective agreements can expand the list found in measures on the reconcilia- view. Schemes are thought of as of activities indicated in art. 20 of the tion of family and working life. schemes of action for the collective Decree, namely cases in which there parties; the adjective ‘regulatory’ can be recourse to agency work. This In Denmark the main bargaining describes the function of the schemes, empowers the contracting parties agents in the private sector (LO and namely the creation of rules, be they beyond the letter of the law, allowing a DA) reached an agreement in 2004 binding or not binding, normative or wider recourse to agency work. They on a central fund for parental leave, procedural. Regulatory schemes are can also indicate quantitative limits also covering small and medium- connected to one another and in some for agency workers to be required by sized companies. Decentralised cases they may overlap.(61) user companies and specify training agreements may provide an exten- obligations, financed by a special fund sion of the period during which full into which employers are bound to pay pay for parental leave is granted.(58) 3.1. Collective agreements their contribution. precede law In Greece measures on the reconcil- Collective agreements can also spec- iation of family and working life are The first regulatory scheme indi- ify the amount of a special remuner- also related to the protection of cates that collective agreements may ation due to the agency worker when health and safety and referred to the influence legislatures. A powerful no work is required. In Austria Greek Institute for Health and Safety expression of autonomous norm set- workers must be available during at Work (ELINYAE), run by the ting by collective bargaining, working time up to 38.5 hours per social partners.(59) although not strictly binding for the week. For periods of non-work work- legislature, may prepare the ground ers are entitled to the salary In the Netherlands in the years for the adoption of the same norm in (Stehzeiten) paid for 7.7 working 1994-2002 legislation on the concili- law. Legislation will in such cases be hours, based on the average salary ation of work and care was approved enriched by previous implementa- paid in the last 13 weeks preceding by governments with different orien- tion in the contractual arena.(62) A few the period of non-work.(56) tations. Solutions range from an Act examples have been selected and

(55) Finland, National Report, section 2. (56) I am grateful to Prof. U. Rungaldier for information on latest developments in collective agreements. Minimum standards for this special form of remuneration vary according to the skills of the workers. (57) CGT signed the agreement together with the other main confederations, breaking a tradition of opposition in previous negotiations. See EIRO Observer, Issue 1/2004, p. 5. (58) Denmark, National Report, section 6.2. (59) Greece, National Report, section II.D. (60) The Netherlands, National Report, section 5. (61) This is an indication of how complex legal analysis is in this field. Many variables intervene in marking the territory of a collective agreement and in integrating it in national legal systems. The enlarged EU presents in this case further challenges to comparative analysis. (62) A different matter is to provide for consultation of the social partners before adopting legislation. An extreme example is provided for in the recently enacted Portuguese Code (art. 525), holding unconstitutional legislation approved without prior consultation of the social partners at all levels, including works councils. See Portugal, National Report, section 1.

49 Chapter 2 Industrial Relations in Europe 2006

will be mentioned as indicative of In Sweden a most interesting case is bargaining and acknowledges its sta- existing practices. reported, whereby a collective agree- bility and assigns credibility to the ment providing normative and eco- social partners. The previously mentioned 2003 nomic conditions for temporary French nation-wide agreement on workers was signed in the mid 80s, life-long training inspired a 2004 when such employment contracts 3.2. Vertical hierarchy statute, which links up training with were still illegal. Subsequently, in between law and employment policies, thus showing 1991 and in 1993 all restrictions on collective agreements the influence of European guidelines temporary work have been loosened. in this matter.(63) The ground for the Innovative agreements have also In some countries collective agree- adoption of the 2004 Loi Fillon in been signed in the years 2000, aim- ments are subject to registration(68) or France was prepared by cross-sector ing at shortening the gaps between extension by decree.(69) Conferring an national collective agreements, dat- standard employment contracts and erga omnes effect to collective agreeing back to 1995, renewed in 1999 agency work. ments is the outcome achieved fol- and formulated in 2001 as a joint lowing a majority rule, namely recog- opinion, aiming at a reorganisation The Irish centralised agreement nising a general coverage to agree- of the bargaining levels. All these ‘Sustaining progress (2003-2006)’ ments signed (or approved) by unions voluntary sources brought forward includes the government’s commit- representing a majority of workers. the two inspiring principles then ment to changing maternity, adoptive enshrined in the Loi Fillon, namely and parental leave legislation. This Germany represents a clear example the majority principle for the valid led the government to ‘protect’ the of how meticulous the legislature can signature of a collective agreement maternity Bill 2003, using the argu- be in determining criteria for the and the guarantee that collective ment that it reflected previous agree- extension of collective agreements to agreements be negotiated even in ment among the social partners.(66) non-organised employers and employ- non-unionised companies.(64) ees. It is worth recalling that in this In Italy the recourse to a nation-wide country the request addressed to the Greece and Sweden offer two other collective agreement on EWC Ministry (either at the Federal or at the and different examples of how legis- proved to be the right way to set the Land level) originates from at least one latures may draw inspiration from ground for legislation transposing of the collective parties and must be collectively agreed sources. the Directive.(67) approved by a committee composed of three representatives of organisations In some fields, such as healthcare, Notwithstanding different attitudes of both employers and employees. A unemployment measures, vocational shown by national legislatures, this simple majority vote takes place with- training for part-time workers, regulatory scheme signifies that an in the committee. In addition, exten- Greek statutes simply ratify what is optimal equilibrium among legal and sion is only possible if at least 50% of in the collective agreements and voluntary sources may be reached. the workforce that would be covered appear to be a mere ‘auxiliary source Such a balance indicates that the leg- by the extended agreement is covered of regulation’.(65) islature trusts the system of collective by the negotiated agreement.(70)

(63) J. Pelissier, A. Supiot, A. Jeammaud, Droit du Travail, Paris 2004 (22nd ed), p. 283, underlining the European style in the expression granting individual employees the right to training ‘tout au long de sa vie’. About the influence of the national cross-sector collective agreement on the legislature see p. 30 ff. The agreement was itself influenced by the 2001 joint opinion signed by the European social partners. (64) A. Supiot, La riforma del contratto collettivo in Francia. Riflessioni sulla trasformazione del diritto, Giornale di diritto del lavoro e di relazioni industriali, 2005. (65) Greece, National Report, section III.7. (66) Ireland National Report, section 3. (67) Transposition of the directive on EWCs was greatly delayed in Italy and was only achieved with Legislative Decree No 74 of 2 April 2002, which was enacted just in time to avoid an infringement procedure by the Commission to the European Court of Justice The process of implementing the directive was, however, rapidly activated by the main confederations on both sides, who signed a nation-wide agreement on 27 November 1996. The agreement paved the way to company-level agreements to set up EWCs long before the transposition of the directive. See Italy, National Report, sections 2.5.B and 8.1 more broadly on the recourse to collective agreements for the transposition of European Directives. A similar solution is expected for legislation transposing the Directive on Workers’ Involvement in European Companies. See the agreement signed in March 2005 by the main Italian Confederations. Comments in F. Guarriello, La partecipazione dei lavoratori nella società europea, in DLRI, 2003, p. 1 ff. (68) This happens, for example, in some new Member States such as Romania and Slovenia. (69) Bulgaria, Hungary. (70) Data are reported in Table 1 and 2 annexed to the National Report.

50 The evolving relationship between collective bargaining and the law in the Member States Chapter 2

In Italy collective agreements in the Bulgaria, the Czech Republic, from the law. This last variable is the public sector, unlike in the private Hungary, Malta, Poland, Romania, most problematic and gives origins sector, are generally enforceable, due Slovakia, Slovenia, and Turkey. to contested debates at national level to the power recognised to a peculiar in a variety of countries. negotiating agent (ARAN), repre- In the Baltic countries too this prin- senting all public employers. Equal ciple is enforced. In Estonia the The Spanish Workers’ Statute (art. treatment for all employees covered National Court pointed out in a 1998 41) provides for derogations from by the agreement follows as a result ruling that improving statutory rights legal standards – on working time, of legislation, setting clear binding can go as far as creating new rights certain working conditions and rules for the employers.(71) in collective sources, provided that wages – whenever the employer can there is no contradiction with the prove that ‘economic, technical, On the contrary, in Denmark, where spirit of the law.(75) organisational or productive reasons’ the tradition of voluntary agreements may imperil the firm’s ‘competitive has traditionally prevailed, some In Cyprus and Greece sources are position in the market’ or its exceptions are made for agreements hierarchically organised and leave response to market demands. transposing EU Directives, which limited space for manoeuvre to Derogations may occur both at the must acquire a binding nature.(72) weaken working and economic con- individual and collective level. Art. Despite differences in the legal solu- ditions set by statutory law. 82.3 opens up spaces for negotiations adopted, the same holds true tions in pejus at plant level, provided for other Nordic countries and for Exceptions are frequent in all sys- that collective agreements at a higher Sweden in particular. tems. For example, in Poland dero- level indicate ‘conditions and proce- gations take place at plant level via dures’ according to which wages can A striking 2004 decision of the collective ‘accords’ – rather than be reduced for reasons of economic Constitutional Court of the Czech ‘agreements’ – on issues related to stability.(76) Republic is reported, holding uncon- economic constraints forcing the stitutional the ministerial procedure employer to reduce employment. As The French legislature shows in the to extend nation-wide collective previously mentioned, legal scholar- Loi Fillon that trade unions signato- agreements.(73) The argument is that ship does not disregard the recourse ries to plant agreements must gain extension beyond the signatory par- to derogations, when it is necessary their credibility – either with a major- ties breaches contractual freedom, a to introduce elements of flexibility in ity of unions signing or with no oppo- principle connected to the protection the legal system. sition by the majority – in order to of property rights. It is expected that introduce derogations both from the this decision will open the way to Even in the UK, where collective law and from agreements at a higher legislative intervention. agreements are not regulated by law, level. It is worth underlining that such a hierarchical principle governs the alternative criteria are dealt with in In Poland too procedures to grant relationship with statutory law, not national agreements, which are made the extension of sector collective allowing for derogations in pejus. binding by a ministerial decree. agreements to non-signatory parties However, the latter have become fre- generates criticism among scholars quent in working time regulations, The most recent evolution goes into and social partners, worried by an even in individual contracts of the direction of expanding the areas excessive invasion of private parties’ employment. in which derogations are allowed. In freedom to bargain.(74) fact, it can be argued that derogations As one can see, collective agree- are now the rule, since only four sub- The most common solution across all ments under this regulatory scheme ject matters – minimum wages, job countries is that collective agreements can specify legal commands and classifications, complementary sys- can only improve economic and implement them. They can also, tems of social protection, the regime working conditions. This is con- under special circumstances, intro- of funds for professional training – firmed in recent legislation in duce pejorative measures, departing are not subject to derogations.(77)

(71) See Art. 45.2 Legislative Decree 2001/165 and Italy, National Report, section 1.4.5. (72) Threats from the Commission to start an infringement procedure on the implementation of the Working Time Directive convinced the Danish government and the social partners to accept an extension of the agreement by law. (73) See Czech Republic, National Report, Conclusions. (74) Poland, National Report, section 1. (75) Estonia, National Report, section 1. (76) It is worth mentioning that all such derogatory measures have been introduced by recent legislation on bankruptcy (Ley Concorsual 2003), unusually granting powers to the Bankruptcy court (Spain, National Report, section 1). (77) A. Supiot, cit, section 2 B).

51 Chapter 2 Industrial Relations in Europe 2006

In Estonia, Article 4(2) of the The need to regulate this new phe- the main point of reference for the Collective Agreements Act states the nomenon and to amend existing statu- legislature and some form of compe- invalidity of collectively agreed terms tory law has been expressed by the tition among different levels may also and conditions less favourable for social partners, albeit with different be envisaged.(81) employees than those prescribed by accents on the solutions to be found. law. However, in connection with the It is interesting to notice that propos- It is also worth mentioning that col- need for more flexibility, legislation als put forward in 2003 by the opposi- lective agreements are often present- on working time expressly allows col- tion parties refer to the introduction of ed as sources competing with indi- lective agreements to impose flexible a majority principle, namely consen- vidual contracts of employment, in conditions (such as flexibility in daily sus expressed by two thirds of the per- as much as the latter intervene if the breaks regulations; shifts over 12 sonnel and the absence of objections, former are not stipulated. One can hours long, but not longer that 24 after four weeks from the notification insinuate that, in some delicate mat- hours; splitting the payment of holiday of the agreement to all individual ters – such as part-time and working allowances in two parts).(78) employees. time regulations – there might be an interest on the employers’ side not to The German debate on the so called Resemblances with the French enter negotiations, in order to give opening clauses inserted in sector debate and with the 2004 reform are space to individual bargaining.(82) agreements, to allow derogations at striking and so is the recourse to the the lower plant level, must also be catchword ‘modernisation’, present- Evidence shown in recent surveys, quoted. ed in both countries as a political covering collective agreements in programme and, at the same time, as some relevant economic sectors, Art 77.2 BetrVG (Act on Works a theory of legal reforms. indicates that the most representative Councils) introduces the notion of social partners are defending their works agreements, different from Modernisation is also the aim pursued space of manoeuvre, dealing intelli- those signed by trade unions and by the Italian legislature in the 2003 gently with the numerous statutory employers’ organisations or individ- reform of the labour market, enhanc- norms referring to collective ual employers. Despite the indication ing more flexible forms of employ- bargaining. in the law that works agreements ment. In some ‘new’ employment should not deal with normative contracts, such as job-sharing, collec- issues covered by collective agree- tive agreements cannot deviate from 3.3. Horizontal subsidiarity ments, art. 77.3 allows for a depar- legislation. In others, such as in con- between law and ture from such a principle and tracts providing apprenticeship, col- collective agreements empowers the employer and the lective agreements range from a max- works council to derogate from sec- imum to a minimum regarding the An original example is the regime of tor agreements both in melius and in length of the contracts themselves. In semi-mandatory law in Denmark, pejus on a discretionary basis.(79) this very complex piece of legislation closely interrelated with the transpo- several spaces are opened to collec- sition of EU Directives. In this coun- Opening clauses have been at the tive bargaining, albeit with some try the proud defence of a voluntary centre of political and academic uncertainty on the bargaining agents system created a regime of legislation debates. From the beginning of the and on the levels of negotiation. that can be derogated by collective Nineties onwards, the recourse to Unlike in previous statutes, where ref- agreements, but not by individual opening clauses has been spreading, erence was made to most representa- contracts of employment. In the com- in response to the need for more tive unions, the language now adopt- bination of statutory law and collec- flexible employment relationships. ed by the legislature is ‘comparatively tive agreements the former has a This practice also led to the introduc- representative unions’, thus indicat- ‘subsidiary’ role, once it is ascer- tion in several companies of so ing that even some unions (not neces- tained that standards are at least called ‘company pacts for employ- sarily all) may act as bargaining equal. This original solution has been ment’, often in the form of conces- agents. Furthermore, national collec- assumed valid for the transposition of sion bargaining, at times contraven- tive agreements, covering wide areas EU Directives and, at the same time, ing sector level standards.(80) of economic activities, are no longer respectful of Danish traditions.(83)

(78) Estonia, National Report, section 1. (79) Germany, National Report, sections 3.1 and 3.2. (80) Collective bargaining system under pressure, in EIRO Observer 1, 2004, p. 7. (81) Italy, National Report, sections 1.2.1 and 9.5. (82) Italy, National Report, section 9.5. (83) Denmark, National Report, section 1. Mention is made in particular of the difficult transposition of the Working Time Directive (section 8.1.4.2).

The evolving relationship between collective bargaining and the law in the Member States Chapter 2

The Netherlands and Sweden offer In Italy, on the contrary, in the trans- and on how legislation connected to similar solutions. position of the Directive – one of the employment policies forces a hier- first manifestations of the centre-right archy among legal and voluntary In the Dutch system, first in the 1953 administration in the labour law field sources, allowing the latter ample Civil Code, then in a more accentuat- – the recourse to such contracts has room for manoeuvre, even when ed way in the 1999 Flexibility and been widened, so as to raise the suspi- their effect is to lower legal stan- Security Act, semi-mandatory law cion that the way in which ‘technical, dards. indicates possible deviations to be productive, organisational and substi- agreed collectively.(84) The Supreme tutive reasons’ has been interpreted In Ireland registration of collective Court ruled it lawful to derogate from may far transcend the purpose of the agreements by the Labour Court is mandatory law in individual employ- Directive.(87) In this last example the required when collective agreement contracts, by referring to the most debatable innovation consisted ments introduce flexible standards, collective agreement, thus indicating in abandoning the previous legal tech- for example on working time regu- that the function of a collective source nique – implying a legal definition of lation, in compliance with the limits is parallel to the law. cases in which fixed-term contracts set in the EU Directive. Reference were allowed – in favour of a wide periods for the average of the 48 A similar example can be drawn formula leaving ample space on this hours limit are the leading example. from Sweden, where the 1982 issue to the parties to individual con- The Court must be satisfied that Employment Protection Act on tracts of employment. One of the lim- such agreements are not in breach fixed-term contracts states that dero- its set by the Directive at clause 3 of of EU law and have been negotiated gation can also take place at a decen- the annexed framework agreement – by representative parties.(90) tralised bargaining level. namely the existence of ‘objective conditions’ for entering the fixed- In Belgium the adoption of the Legislation on fixed-term contracts term contract – is therefore left to the Maastricht criteria led to legislation often includes references to collective individual parties entering into a con- which allows the government to agreements and may be intertwined tract of employment. However, the intervene in collective bargaining, if with the EU Directive and its transpo- social partners are not exploiting this it is envisaged that collective bar- sition into domestic law. For example, possibility of enhanced legal flexibil- gaining may endanger the competi- the excessive increase of fixed-term ity and have, so far, favoured more tiveness of Belgian economy. This contracts in Spain,(85) saluted as one formalised solutions – at times analysis is based on a comparative relevant feature of the new dynamic binding – for entering fixed term evaluation of wage policies in labour market enhanced by the contracts.(88) neighbouring countries (France, Conservative government’s reforms, Germany and the Netherlands). had to be counterbalanced by disin- In the UK the apparent compliance However, the social partners may centives to enter into such contracts. with the Directive in indicating a take the initiative to determine the Collective agreements were chosen as maximum number of years when maximum acceptable increase in the right sources in which to specify stipulating subsequent contracts wage negotiations, taking into the objective reasons for employing may be overcome by Article 8(5) of account the biannual survey pro- such contracts. the Regulation, allowing the remo- duced jointly by the Conseil val of this limit in collective or National du Travail and the Conseil In Portugal, too, in the new 2003 workforce agreements.(89) A lot Central de l’Economie, with respect Labour Code, the attitude is not in would need to be said in this regard to the economic performance of the favour of fixed-term contracts.(86) on the scope of such agreements Belgian economy.(91)

(84) For example collective agreements can deviate from the mandatory rule according to which the stipulation of four consecutive fixed-term contracts give rise to a permanent employment contract. The Netherlands, National Report, section 1.3. (85) Nearly a third of Spanish employees are on temporary contracts (http://www.eiro.eurofound.eu.int/2004/09/feature/es0409104f.html). See comments by F. Valdés Dal-Ré, Recenti riforme del diritto del lavoro in Spagna, Giornale di diritto del lavoro e di relazioni industriali, 2005. (86) On new developments in the Portuguese Labour Code see: http://www.eiro.eurofound.eu.int/2003/05/inbrief/pt0305101n.html. Additionally, on the basis of order No 255/2002 of 12 March 2002 there are financial incentives for employers who convert a fixed-term contract, on expiry, into an open-ended contract. See: http://www.eiro.eurofound.eu.int/2002/05/feature/pt0205102f.html. (87) Decree 368 of 6 Sept. 2001, transposing European Directive 99/70 and comments in S.Sciarra, The Evolution of Labour Law in Italy. 1992-2002, in The Evolution of Labour Law, vol. 2: National Reports, Luxembourg, OOPEC 2005, at http://ec.europa.eu/employment_social/labour_law/docs/ell_italy.pdf. See also L. Zappalà, in B. Caruso and M. Fuchs (eds), Labour Law and Flexibility in Europe, Baden Baden — Giuffrè 2004, p. 98 ff. (88) Italy, National Report, section 9.5. (89) C. Kilpatrick, ‘Has New Labour Reconfigured Employment Legislation?’, 32 ILJ (2003), 135. (90) Ireland, National Report, section 1.ii. (91) Belgium, National Report, section 11.1.

53 Chapter 2 Industrial Relations in Europe 2006

3.4. Tensions between public expanding scope of bargaining at (1) An ongoing discussion is taking relevance and private plant level.(93) place in most Member States on the means of collective comparability of standards and on bargaining Italy offers an interesting example in sources concurring to maintaining or the law regulating collective bargain- lowering the standards, especially in The three regulatory schemes pre- ing in the public sector. Unlike in the some areas covered by EU law – sented in this section confirm that private sector, where it all depends working time, fixed-term and part- collective bargaining is placed at the on voluntary sources, the legislature time work. It is a fact that in all such intersection of an old legal divide, intervened in the public sector with a areas examples of derogations from the public/private divide, which can strong emphasis on rationalising the law and from higher level collec- still have relevant implications. This decentralised bargaining and setting tive agreements have occurred more point is particularly central in the limits to the same.(94) frequently. The same is true in areas present comparative analysis. of labour law – traditionally covered Collective agreements generate indi- A different example can be found in by collective agreements – in which vidual rights, as does the law. Poland, where scholars have been enterprise restructuring gives rise to However, as voluntary sources they debating the legal status of collective derogatory measures and to conces- maintain a certain degree of adapt- agreements signed by workers’ repre- sions, mainly at company level.(97) ability in norm setting and may even sentatives and buyers of companies derogate from legal standards. undergoing the process of privatisa- In all such cases, it is important to tion. In 1993 the Polish Constitutional see and to stress that procedural This is the reason why a critical Court held these agreements constitu- clauses strengthen normative claus- reflection is emerging in several tional in view of guaranteeing free es, in as much as they create a more countries on how to combine free- collective bargaining.(95) The debate in rational regime of contractual obli- dom of association with the new this country is also very lively in view gations, particularly when they clari- powers that bargaining agents of establishing criteria for derogations fy references among levels of bar- acquire in matters dealt with in legis- from statutory standards, a practice gaining and specify different – at lation. It is even more critical to which is currently taking place in col- times diverging – scopes of collec- establish whether such powers lective bargaining, despite it being tive agreements. should be measured or be specifical- considered against the law.(96) ly entrusted, when the final aim of (2) Another tendency emerging from legislation coincides with the protec- the present study shows that tion of fundamental rights. 4. Conclusion strengthening the legal ground on which voluntary sources must rely For example, the 2004 French Law, This chapter has looked into some of involves clarifying criteria for the introducing the majority principle – the most recent and controversial negotiation of binding agreements, namely consensus of organisations debates taking place at national level particularly when a departure from representing the majority of workers on the relationship between law and higher standards takes place. to allow plant bargaining in deroga- collective agreements. It has done so tion from branch agreements – is a by emphasising the role of core legal This is not a diminishing or back- clear sign of how a civil law system principles assisting the evolution of wards feature in the evolution of tries to solve the tension between the collective bargaining. The overall collective bargaining. On the con- public relevance of certain rights to analysis emerging from the present trary, the evaluation we can give be guaranteed and the available pri- study confirms that the institutional now of this phenomenon is very vate means to achieve these goals.(92 ) context in the EU is solid. The ground different from the one shared in Solutions aimed at guaranteeing the rules of national labour law systems some European countries at the end enforceability of derogatory meas- have not been shaken in recent years. of the Sixties, when spontaneous ures, gaining a full consensus from However, some tendencies can be disorders were supposed to play a the majority of workers, are also cerned which challenge the traditional most innovative role in shaping aired in the debate taking place in relationship between the law and col- legal institutions. One of the rea- Germany, with regard to the lective bargaining. sons for this has to do with the fact

(92) France, National Report, section 9; J. Pelissier, A. Supiot, A. Jeammaud, Droit du Travail, Paris 2004 (22th ed.), p. 956-957. (93) Germany, National Report, section 5.2. (94) Italy, National Report, sections 1.2.2 and 1.4.5. (95) Poland, National Report, section 4. (96) Poland, National Report, section 5.b. (97) Some of these points are also highlighted in the research project on the evolution of labour law (1992-2003) and in S. Sciarra, The Evolution of Labour Law (1992-2003), vol 1: General Report, Luxembourg, OOPEC 2005 at http://ec.europa.eu/employment_social/labour_law/docs/generalreport_en.pdf

54 The evolving relationship between collective bargaining and the law in the Member States Chapter 2

that national labour markets nowa- (3) A third important tendency has to untary sources becomes as a result days require more legal certainty do with the role assigned to ‘experi- less relevant, irrespective of the cov- and more formalised rules when it mental’ or ‘temporary’ legislation, as erage of agreements and of the man- comes to establishing a relation- well as to laws aiming at ‘modernisa- date given to bargaining agents. ship between law and collective tion’. The frequent recourse to such agreements. non-legal terminology indicates that Decentralised agreements very often legislation sets itself goals which are deal with critical subject matters The critical point, therefore, is to intentionally undefined, leaving related to fundamental labour rights ascertain that within this new ‘auton- ample space for manoeuvre to law- (the right to health and safety, the omy’ of collective bargaining individ- makers and to the relevant social right of dignity and equal treatment ual contracts of employment do not partners. In this context the role of to mention a few). They are basic become a separate source of negotia- collective agreements can be crucial labour standards to which a range of tion, departing from the standards set in setting standards adaptable to dif- EU Directives refer to. It is therefore at a collective level. The spreading of ferent contracts of employment. of utmost importance that the proce- such a practice would weaken the dural rules coordinating company normative function of collective (4) Decentralised bargaining, associ- and plant bargaining are strength- agreements, up to the point of mak- ated in the early European tradition ened. In this regard, one can also ing this core principle lose all its rel- with healthy and dynamic bargaining refer to the need to look into the pro- evance, thus giving rise to an uncon- systems, is a widespread phenome- cedural regulations of a specific type trolled regulation of individual con- non in all countries of the EU. It does of decentralised collective bargain- tracts of employment. A related con- not, however, necessarily indicate a ing, namely transnational company sequence, should an escape from reg- rational and well-balanced attitude of bargaining. As part of its new Social ulatory schemes become a wide- the bargaining agents. When legisla- Agenda 2005-2010 the Commission spread phenomenon, would be the tures leave references to collective is reviewing this question. The devel- weakening of freedom of association, agreements unspecified, all bargain- opment of an optional subsidiary since no control in standard-setting ing levels may be considered suit- framework for transnational compa- would be left in the hands of repre- able, regardless of the subject matter ny bargaining is one of the options sentative organisations. to be dealt with. The hierarchy of vol- being studied.

Chapter 3 Employee representation at the workplace in the Member States(98)

Forms of information and consulta- In this chapter, the concept of This definition encompasses a wide tion at the workplace have been legal- employee representation will first be variety of participation channels and ly established and formally installed clarified within a broader theory of practices that differ with respect to in most of the EU countries. This employee participation. A second whether the participation is statutorily workplace representation can be section sketches the (new) EU prescribed or voluntary, formal or organised by works councils and/or framework directive, dating from informal, direct or indirect (by repre- trade union representatives. Work- 2002. A third section gives an sentation).(100) Importantly, participa- place representation is a distinctive overview of the different statutory tion may also vary in intensity based feature of the industrial relations sys- regulations that exist in the Member on the combined incidence or not of tem in the current European Union. States on workplace representation. the following factors: However, there is a great diversity of Proof will be given of how these sys- situations within the European Union, tems have developed in recent years 4 the degree of influence from sim- reflecting specific characteristics of within the framework provided by ple consultation to full authority industrial relations with sometimes the EU Directive. In a fourth section, in decision-making or redistribu- large variations in practice from one a brief overview will be put together tion of power; country to the other. These systems of of recent research into the practice of workplace representation have been workplace representation in the 4 the scope of participation ranging developed in Western Europe as a Member States. Fragmented national from day-to-day operational issues form of organisational or economic research and (limited) cross-country of the job at the shop floor level, democracy, mainly since the Second data from the European social survey over tactical decisions concerning World War. In their transition to mod- will be used in this final section. work organisation and personnel ern market economies the central and Based on this overview, some com- management at the plant level, to eastern European countries have also ments will be made in the conclusion long-term strategic organisational been setting-up these forms of of the chapter on how much progress decisions at the company level; employee participation. This trend has been made recently in this partic- coincided with the EU becoming ular arena of the European social 4 the timing of the participation, more and more legally active in this model. being pro-active in the preparation field of industrial relations. The 90s phase of decision or re-active in were also a period in which this form the implementation phase of a of employee participation was con- 1. Representation: decision. fronted with a management-led ‘empowerment’ movement and a a specific type of The most important dimensions are stronger dissemination of financial employee be visualised in Figure 3.4, the participatory schemes (e.g. profit employee participation cube.(101) sharing). These are reasons enough to participation undertake a comparative analysis of Advocates often point out that this feature of European industrial Employee participation can in general employee participation has the fol- relations, especially at a moment be defined as: ‘… the exercise of lowing advantages, when organised when the EU Directive which gave power by workers or their representa- in a sound way: employee representation an institu- tives over decisions within their places tional anchor within the European of employment, coupled with a modi- 4 fewer industrial disputes resulting model of industrial relations became fication of the locus and distribution from better communication bet- fully operational. of authority within the workplace.’(99) ween management and staff;

(98) This chapter is drafted by Guy Van Gyes, Hoger Instituut voor de Arbeid, University of Leuven. (99) M. Poole, R. Lansbury and N. Wailes (2001), ‘A comparative analysis of developments in industrial democracy’, Industrial Relations Journal, vol. 14, No 3, p. 491. (100) For general introductions on the issue of employee participation: A. Sagie & M. Koslowsky, M. (2000). Participation and empowerment in organisations: modeling, effectiveness and application. Thousand Oaks, Sage; F. Heller et al. (1998). Organisational Participation: Myth and reality. Oxford, Oxford University Press. (101) Adapted from: J. de Leede & J.C. Looise (1997). ‘Participatie en Besluitvorming’, In: F. Kluytmans, Leerboek personeelsmanagement, Deventer, Kluw- er bedrijfswetenschappen, pp. 429-449.

Chapter 3 Industrial Relations in Europe 2006

4 improved decision-making processes resulting in higher quality Figure 3.1: Employee participation cube decisions;

4 increased creativity, enthusiasm and commitment to corporate objectives;

4 lowered stress and increased well- being; Formal/Indirect

Formal/Direct Who? e: e: 4 better use of time and resources;

Informal/Direct

4 improved productivity including Structur service delivery; Strategic company policy (economic matters) Tactical company policy (social matters)

Operational matters (personnel job content) What? 4 increased job satisfaction resulting in reduced absenteeism; on

Information Consultation Content: Self management 4 improved personal fulfilment and Co-determinati self esteem. Degree: How?

In practice two types of employee participation have become dominant in Europe throughout the twentieth century, besides collective bargaining Figure 3.2: Dominant forms of employee participation in Europe, where a trade union acts as a counter- vailing power to negotiate wages and conceptualised in the analytical cube of employee participation working conditions. The two types are:

4 Systems of indirect participation or workplace representation, Workplace which mostly first acquired statu- representation tory recognition after the Second World War, although the first legal Formal/Indirect experiments had already occurred Formal/Direct Who? e: e: directly after the First World War,

with Germany as the prime exam- Direct Informal/Direct ple. These indirect forms of par- participation Structur Strategic company policy (economic matters) operational ticipation are structures whereby Tactical company policy (social matters) workers’ representatives generally matters Operational matters (personnel job content) What? try to influence decision-making at higher organisational levels on on Information tactical and strategic decisions; Consultation Content: Self management Co-determinati Degree: How? 4 Forms of direct participation on shop floor matters, which developed especially through the quality of working life and forces, quality circles and self- tives on a governing body of the human relations programmes of steering team work. undertaking or company board; the 60s and 70s and as part of the HRM approach of empowerment Two ground types of indirect partici- 4 An employee representation which and high-performance work sys- pation or workplace representation has to be involved in a specific tems since the 80s and 90s. can be distinguished: range of management matters, Examples of direct participation whereby the intensity of involve- are suggestion schemes, survey 4 Board-level representation or the ment can go from pure information, feedback, project groups, task right to have employee representa- through consultation to codecision.

Employee representation at the workplace in the Member States Chapter 3

The chapter focuses on the second 4 The European Company Statute 4 information on the recent and prob- type of employee representation: which provides the possibility of able development of the undertak- information, consultation and/or co- some form of employee participa- ing’s or the establishment’s activi- determination by a works council tion at board level (Council Direc- ties and economic situation; and/or trade union delegation at the tive 2001/86/EC); workplace. The chapter does not deal 4 information and consultation on the with the participatory regulations of 4 A framework directive of mini- situation, structure and probable the public sector in the EU Member mum standards for informing and development of employment within States, nor with the existing systems consulting employees at company the undertaking or establishment of board-level representation in the level in all Member States (Direc- and on any anticipatory measures Member States.(102) tive 2002/14/EC). envisaged, in particular where there is a threat to employment; It is especially the latter (Directive 2. More than ever part 2002/14), which can be seen as high- 4 information and consultation on ly significant since it is the first EU decisions that can lead to substan- of the European law generalising the obligation to tial changes in work organisation social model inform and consult employees. or in contractual relations. Arguably, it establishes a European model of mandatory workplace rep- The scope of the directive is there- Within European social dialogue, resentation. fore very wide and could include the issue of employee representa- information relating to mergers and tion has a long history and has The directive is drafted in fairly broad acquisitions and business reorganisa- proven to be a highly controversial terms and allows Member States con- tions, as well as changes in terms and issue between employers’ organisa- siderable flexibility in implementing conditions of employment. tions and trade unions, but also its terms.(103) Individual Member between Member States. Despite States have discretion over the scope The directive states that information the policy complexities surround- of the consultation directive, which must be given in a timely manner ing the issue, the European Com- applies to either/or: and in such a fashion that its content mission and the Council have con- would be appropriate to enable tinued to make progress on a num- 4 undertakings employing at least employee representatives to prepare ber of initiatives to promote 50 employees in any one Member for consultation, if necessary. As for employee participation. A first State; consultation, the directive requires breakthrough came in 1994 with that the timing, method and content the establishment of the European 4 establishments employing at least of the consultation are appropriate Works Council Directive. More 20 employees in any one Member and that it takes place: recent milestones are: State. 4 at the relevant level of manage- 4 The revisions of the directive on It does not specify what information ment and representation; employee information and consulta- and consultation arrangements tion in case of collective redundan- should be established. However, the 4 in such a way as to enable employ- cies (Council Directive 98/59/EC); establishment of a standing body of ee representatives to meet the employee representatives is implicit. employer and obtain a motivated 4 Council Directive 2001/23/EC of Individual Member States are response; 12 March 2001 on the approxima- allowed to entrust employers and tion of the laws of the Member employee representatives to negoti- 4 with a view to reaching an agree- States relating to the safeguarding ate their own information and con- ment on decisions, within the of employees’ rights in the event sultation arrangements, when in scope of the employer’s power, of transfers of undertakings, busi- compliance with the general princi- that are likely to lead to substantial nesses or parts of undertakings or ples of the directive. The right to changes in work organisation or businesses. information and consultation covers: in contractual relations.

(102) For recent contributions on these matters: D. Farnham, A. Hondeghem & S. Horton (2005), Staff participation and public management reform: some international comparisons, Basingstoke, Palgrave; on board-level representation: SDA & ETUI-REHS (2005), Worker board-level representation in the new EU Member States, download January 2006: www-seeurope-network.org; HBS & ETUI, ed. (2004), Workers’ participation at board level in the EU-15 countries, download January 2006: www-seeurope-network.org. (103) For more information and background from a legal point of view: R. Blanpain (2004), Involvement of Employees in the European Union, Works Coun- cils, Company Statute, Information and Consultation Rights, Deventer, Kluwer Law International.

Chapter 3 Industrial Relations in Europe 2006

The directive includes specific provi- on the importance of employee par- rights of information and consulta- sions regarding confidential informa- ticipation in company decisions, the tion. The first differences concern tion. Employers are not obliged under directive will not harmonise the who participates and where, the sec- the directive to communicate confi- mechanics of this workplace repre- ond with how to participate. The dential information, or undertake sentation across the European legal basis for the systems can be consultation, where the nature of that Union. The reality is that there will statutory law or central collective information would seriously harm be a continued patchwork of differ- agreements. Mostly the law creates the functioning of the undertaking or ent information and consultation the national framework of workplace establishment. Also, the directive requirements in Europe. representation, only in the Nordic prohibits employee representatives countries collective agreements are from disclosing to employees, or the main legal basis. In Belgium, third parties, any information which, 3. Legal provisions of part of the system is regulated by in the legitimate interests of the law; other parts are defined by undertaking or the establishment, has information and national collective agreement. Ire- expressly been provided to them in consultation land and the UK were until recently confidence. the only Member States with no general statutory system. However, in The directive’s purpose is thus to Within the European Union various concordance with the new EU direc- establish a general framework for legal models and institutional forms tive they have been establishing new informing and consulting employees of workplace representation exist.(104) information and consultation laws in Europe. However, while a new Differences exist with regard to (see Table 3.1 for details). trans-European emphasis is placed structures of representation and

(104) For first introductions: LRD (2004), Worker representation in Europe, London, LRD Publications; ETUCO (2004), Worker representation systems in the European Union and the Accession countries, Brussels, ETUCO; Eversheds (2005), Information and consultation survey, download January 2006: www.eversheds.com.

60 Employee representation at the workplace in the Member States Chapter 3 e e) tiv gativ y (higher o er ch y system of collec e the pr een the national v oluntar els ha eements and others) v es es (but practice of opening es (betw es le Bargaining hierar No No (v bargaining) Y Y clauses) Y Y agr y ying y orks w ; e er esentation e primar ees. y er y y ers’ epr eements: esent, orks council er can onl ork es y w eements: ds e agr e of 1) e bargaining esentativ war if not pr epr emplo ormation and consultation ogativ ork agr esentativ joint union r eement when emplo er Collectiv W rade union delegation and rade union, epr rights official authorised w Collectiv Union, Shop ste T T union; not; 1. union and emplo r or largest 2. council and emplo (pr Most r at least 50 emplo sign a valid collectiv agr or inf 50 e) e) ds) esentation) war bodies f om 20-50 epr orks council: orks council) ers trustee) eshold ork or w 50 100 w Thr 5 (trade union and/or 35 (cooperation committee) 5 (shop ste Ranging fr 25 (w (when union activ 3 (TU r 5 F 20 (no union activ e e eement eement agr Legal basis collectiv Legislation agr Legislation and Collectiv Legislation Legislation Legislation y esentation in EU-25: epr le es es es es onl ers ers eneral ork ork W W pplicab esentativ esentativ esentativ esentativ kplace r epr epr epr epr or when a ers’ r ers’ r ers’ r ers’ r , ed composition: ed composition: y y y ork ork ork ork body Management & onl Management & Composition of g W Mix onl W W Mix W onl y visions of w or o e y e in orks , egulated b w union trade union; trade union r ormation and trade union orks orks council eement); al pr , y trauensleute’ or inf e agr f Leg er ‘v e v orks councils ar orks council rar oung people and senior council dominates w or non-union trustee dominates w Main body ha Dual channel, conditions Single channel: Dual channel, w set-up Single channel, Single channel, exception council, consultation (union can in a compan collectiv specific bodies exist f y management under specific Dual channels exists alongside practice not man w le 3.1: b a T ds esence war y unions ers trustee** ety esentation orks council orks council orks council ork orks council rade union rade union rade union epr & saf committees delegates Health r Cooperation Bodies W no union pr committees W W W T T Shop ste W delegates T possible when Primar DE BE DK EE EL CZ

61 Chapter 3 Industrial Relations in Europe 2006 e) viations gativ y (higher o es) er ch but de es, ell-defined ocedur y system of y system of e the pr v (cont.) e bargaining) e bargaining) oluntar oluntar ed) w ogation pr els ha v es (but with w es es es Bargaining hierar le Y No (v No (in practice y allo Y Y der collectiv No (v Y collectiv e but otherwise this council epeatibility e trade union orks council, ding national e bargaining edominant, egar esentativ ormation and consultation eements orks council rade union rade union delegation clause r rights Collectiv Repr w latter pr RSU with a non-r agr (with some majority rules) Local union T Local union section, Union and w has also the right to call a strik and official T or inf ee y orks council) orks council) bodies f orks council) eshold 50 (w delegation) 15 delegation) Thr 11 (emplo (joint committee) 15 (one person)/ 6 (personnel 50 (w 150 15 (delegates) 50 (w e y; e ork in w eement eement, oluntar collectiv Legislation and agr agr v minimalist legal frame stage of Legal basis Legislation Collectiv Legislation Legislation Legislation enactment (minimal) Legislation le es esentation in EU-25: es es es ers eneral epr ork pplicab W esentativ esentativ esentativ esentativ epr epr epr epr kplace r when a ers’ r ers ers’ r ers’ r ers’ r , union and non-union or ed composition: ed composition: y y; y y ork ork ork ork ork Management & onl onl onl body W Management & W onl Composition of g Mix W W W Mix in . y y when visions of w orks trade union trade union trade union o Onl trade union orks council ees. y TU pluralism) al pr Leg all emplo alongside council dominates (esp alongside body (RSU) elected b this does not exist then dominates w cases of Single channel, Main body Dual channels exists Single channel, trade union delegation (RSA) Single channel, Dual channel, Dual channel w Dual channels exists e le 3.1: vious) b e a T ee o pr y esentation esentativ esentation orks council orks council orks council ersonnel ersonnel rade union rade union rade union rade union rade union epr epr epr oint management r delegates T W delegation (SMEs) trade union bodies (RSU or P committee r T delegation (large Elected/nominated W r T Bodies companies) Emplo delegates T RSA) delegates J delegation (union) W P Unique delegation (merger of the tw T IT CY FR IE LU HU ES

62 Employee representation at the workplace in the Member States Chapter 3 vails e e) gativ y (higher o er ch tite bargaining at y (the specific pr y bi-par el) viation practices) e the pr v (cont.) v y le oluntar e the general) v els ha v es es (but de es es le Bargaining hierar compan Y abo No Y No (v On the contrar Y Y ys y ement eement) e eements ect wa olv ork ers’ staff has to v y union e agr e agr y e union) ork orks council eement in ds b esentativ eements and but indir y w y staff; not w needs to be at least epr , e bargaining y (internal) w esentativ y collectiv y trade union e agr e accor ed union authorised sectoral e the agr epr v ed b orks council in o ormation and consultation y union, w eements b rade union, y union; ppr authorised b a rights union or r Collectiv one r commission T Collectiv collectiv of w (monopol Register allo Onl Union, a general assembl Compan (external) collectiv b agr (limited in scope or explicitl or inf e ees’ y authorised bodies f orks council) ers’ esentativ eshold ernment 2004)*** v esent, ork o epr council) Thr 20 (emplo 50 100 (draft act of 20 (w g 10 None w pr Union or when not 5 r y TUs eement een shop agr Legal basis a non-mandator Legislation betw Legislation Legislation Legislation Legislation Legislation Legislation; Legislation No y y y y y y y esentation in EU-25: le es onl es onl es onl es onl es onl es onl es onl eneral epr y pplicab esentativ esentativ esentativ esentativ esentativ esentativ esentativ es onl epr epr epr epr epr epr epr kplace r when a ers’ ers’ r , ers’ r ers’ r ers’ r ers’ r ers’ r ers’ r or orks council) esentativ ork ork ork ork ork ork ork ork epr body Composition of g W r W W W W W W 5 (w W e orks visions of w orks orks w o w y mor exists or a limited al pr e exception) orks council as rather Leg equent time) channel f Single channel*** Dual channel, (w (usual practice) Main body alongside council dominates council slightl fr council rar Dual channel Single channel Dual channels Single channel (dual Dual channel w Single channel, le 3.1: b a ees’ ee wned T y y ers’ -union) esentation esentation esentation esentation esentation orks council orks council orks council orks council ork orks council orks council in rade union rade union rade union rade union rade union rade union epr epr epr epr epr possible (Czech W State-o 1 w delegates (inter committee W r r Emplo w r W T r Bodies council possible model) elected in 2005 (SMEs) companies delegation or commission W T r T T W Emplo T T T V T L MT NL A PL PT L SI

63 Chapter 3 Industrial Relations in Europe 2006 es) e e) tners with gativ ut the social y (higher o er ch y system of collectiv (cont.) e the pr v y). oluntar Act to the social par els ha es v v es (within the limits of labour es es (but practice of delegation claus bargaining) le No (v Bargaining hierar Y Y code) Y y orking Conditions. W Representati ees’ y ds (organised b e bargaining ving and egulation) ed union war ormation and consultation rights Register another r Collectiv Union Shop ste Union nment proposed to introduce a dual channel model b ement of Li y them. er v v al b or inf v olish go takings orks council) vities if a union representation is elected in compan bodies f eshold nment sent a draft of an Emplo under er v 50, Thr 5/50 (w 5 (trade union) 30 None oundation for the Impro hich found no appro e e y with e ork since w eement eement, eement oluntar agr v minimalist legal frame (minimal) and Legal basis Legislation Collectiv 2005 Legislation collectiv agr Collectiv agr orks councils). In 2004 the P y y y esentation in EU-25: le xist (the latter must stop its acti es onl es onl es onl eneral y e epr et. xist some w mation and consultation w xception. In 2005 the Estonian go pplicab esentativ esentativ esentativ T and BwP for the European F epr epr epr kplace r A, IA e on infor when a v , prises still e ers’ r ers’ r ers’ r or orks council ma ork ork ork y HIV W W W body Composition of g wned enter or e orks w practice visions of w w la trade trade o iles compiled b in ees of but w es ee e exception y w (in State-o y possible (f y prof al pr elated although in the ne y la ent degr esentation can our of the Czech model’: No decision as y ticipation based on eement) er Leg v e legall a ees (in non-unionised companies), as rare e epr the emplo be also non-union r union; Single channel, union-r example co-determination Main body Dual channel, committee) Single channel, agr Single channel, council rar other structur ar union (comprising diff par the signed collectiv y prises b le 3.1: b a e Czech model’: either trade union or a w y all emplo v ee T ee y y atised enter esentation v esentation esentation esentation nati orks council tners are more in f rade union rade union epr epr epr epr r Emplo r Bodies W T T Emplo r r a dual channel representation to implement the Directi par In pri Elected b Alter : Industrial Relations Countr ce *** ** SK FI * Sour SE UK

64 Employee representation at the workplace in the Member States Chapter 3

3.1. Differences in structure Figure 3.3: Basic channels of workplace representation in 3.1.1. Available channels and the EU Member States composition

Single channel; union First of all the basic composition can Single channel; union or non-union be totally different. The body can Single channel; union, if not then non-union have a general status, which means Dual channel; union dominates that it is a representation elected by Dual channel; works council complements union all employees, or it is trade-union Dual channel; works council dominates related, which means the representation is elected or nominated by the trade union and its rank-and-file in the company. The representation can be based on a single channel, i.e. only one of the above types exists, or a dual channel structure, i.e. both types of representation together. Finally, the general type can sometimes also have a mixed composition: the employer has an equal representation at the body.

Based on these structural dimensions the following basic types of workplace representation can be distinguished in the Member States:

4 Single channel employee representation by a trade union is the norm in Cyprus, Ireland, and Swe- den. It is for the moment not clear how legal revisions in Cyprus and to exist when a trade union repre- trustee) and the Netherlands (per- Ireland will affect their current sentation is chosen in the compa- sonnel representation) for small system. In Poland until now (see ny. In other words, works councils establishments. Figure 3.1) a single union channel are a complementary secondary has been dominant, except in pri- channel to a single channel trade 4 A dual channel system monopo- vatised State companies, where union representation. Poland also lised or dominated by the unions works councils still exist. wants to introduce this system. In is the case in Belgium, Denmark, Malta the Law states that where Italy, Luxembourg and Slovakia. 4 The UK, Estonia and Latvia are there is no recognised union, an countries with a single channel of employee representative may be 4 Hungary and Slovenia have also a representation, but where the law elected which exercises the rights dual channel system, but in these also contains provisions for the of information and consultation. countries the works council is election of non-unionised employ- These cases resemble the situa- more important. ee representatives, alongside tion in Finland. The Finnish legis- union delegates. The new UK law lation on ‘cooperation within 4 In France, Greece, Portugal and on information and consultation undertakings’ provides informa- Spain the works councils can be provides both possibilities. In tion, consultation and cooperative seen as complementary bodies to Estonia and Latvia the single negotiations rights to an employ- the trade union representation. channel representation is a union ee representation, which (most of delegation, but can also be a non- the time) is the trade union dele- 4 The works council may also be the union workers’ trustee. gation at the workplace, but can only statutory body of workplace be any other representation elect- representation. This is the situa- 4 In the Czech Republic and ed by the employees. This type of tion in Austria, Germany and the Lithuania, works councils are non-union employee representa- Netherlands, where the union del- allowed to exist as the single tive exists also in France (person- egation plays only a secondary channel representation, but cease nel delegation), Slovakia (workers role at workplace level.

Chapter 3 Industrial Relations in Europe 2006

A mixed composition of the works council exists in Belgium, France and Box 3.1: Recent legal initiatives in the new Member States Luxembourg. The cooperation committee in Denmark also is such a body, In the Czech Republic a secondary, complementary channel of representa- where representatives of the employer tion was established in 2001 (employee councils). In Latvia the new Labour and the employees meet each other to Law of 2002 created two types of employee representation: a trade union discuss company matters. delegation or an authorised employee representation that may be elected if an undertaking has five or more employees. The Employment and Industri- A second point of structural differen- al Relations Act of 2002 took steps in Malta to establish a secondary chan- tiation between the Member States is nel of employee representation in cases where no union is recognised at the the appropriate company-level to workplace. Since 2003 Slovakia has had a dual channel system. instigate the representative body of employees. In many EU countries A new law is at a draft stage in Estonia and Poland. In Poland the system the production unit or plant is seen as of works councils would be restricted. In Estonia, the discussion concen- the main unit for establishing the trates on a proposition to abolish the union monopoly and turning the rep- employee representation. In other resentation into an employee delegation, which has been appointed by a Member States the appropriate unit general meeting of the workers. The Cypriot government in 2005 prepared is defined as the enterprise. Other a new law establishing a general framework for information and consulta- countries like Belgium, the Nether- tion of employees, which for the first time will create a legal basis for infor- lands and Sweden have a more flexi- mation and consultation rights. In practice these rights will mainly go to ble way of defining this right unit of local trade union representatives.(105) organisation. This ‘technical’ unit can in Belgium for example be one plant or several plants of one compa- be a common threshold. It is the Republic (3), Estonia (5), and Slova- ny or even several companies togeth- norm in France for a works council, kia (5). Works council thresholds, er if they have their activities at the in Belgium for a health and safety where the system exists, range from same place or when these companies committee (which can have also a 20 (SI) over 25 (CZ) to 50 (HU, SK). have the same ownership. range of works council rights), and Poland is preparing works council in Spain. In the Netherlands it is legislation with a threshold of 100 Possibilities to complement the rep- also the threshold for a works coun- employees. resentation with a body at group- cil, but a more ‘lean’ personnel del- level exist in several Member States. egation can set up in a plant with a It is not always clear what the exis- minimum of 10 workers. In Greece tence of such a minimum workforce- 3.1.2. Workforce thresholds the threshold for a works council is size threshold means in practice. The also 50, but can be 20, when no crossing of the threshold makes it The minimum number of employees trade union is present in the compa- only statutorily possible that the pro- statutorily required to establish a ny. Thirty and 35 are respectively visioned body can be activated or workplace representation is a next the rule in Finland and Denmark. ‘triggered’ by the employees, factor of variation. Only in Portugal High thresholds for a works council although in some countries it means (for workers’ committees) and Swe- exist in Belgium and Luxembourg the employer has to make some den (trade union representation) is with 100 and 150. In Luxembourg a legally prescribed efforts to set-up there no minimum. In Italy the workforce delegation is possible the body and to check with the threshold varies by agreement from from 15 employees on. employees if there is some enthusi- sector to sector, but is in general asm to activate their information and fixed on 15 employees. In Belgium The new Member States add addi- consultation rights. Of course, this this sector variation is important for tional features to this mixed picture kind of activation procedure only determining the threshold for a of thresholds. In Malta and Cyprus, exists for statutory bodies of the gen- trade union delegation (ranging with a union channel system, no eral type (works councils). No sanc- from 20 to 50 by agreement). Very threshold is in place. No threshold tions exist in Member States for low thresholds exist in Germany rules for the trade union presence employers, who meet the threshold, and Austria, where five employees exist also in Latvia, Lithuania, but do not have an active works are enough to compose a works Poland and Slovenia. Only a very council in practice. council. Fifty employees appear to low threshold exists in the Czech

(105) Several national EIRO features.

66 Employee representation at the workplace in the Member States Chapter 3

3.2. Differences in participatory rights Box 3.2: Union learning representatives in the UK

The European picture of workplace The UK Employment Act of 2002 sets out the statutory rights of union representation gets even more com- learning representatives in firms that recognise trade unions. These union plicated, when the possible statutory learning representatives are allowed paid time off for the following rights for information, consultation functions: and co-determination are taken into account. One certainly has to make a 4 Analysing learning and training needs; clear distinction between two levels 4 Providing information and advice about learning or training matters; of participation rights: on the one 4 Arranging learning or training; hand representative participation by 4 Promoting the value of learning; means of information and consulta- 4 Consulting the employer about such activities; tion and on the other hand stronger 4 Undergoing training for their union learning representative role. rights by means of joint decision- making or co-determination. In all the Member States these provisions 4 Employment levels and condi- France and Belgium they are related are to a greater or lesser extent tions; to very specific topics (for example accompanied by rules covering: holiday regulation at the workplace). 4 Structural changes (closure, relo- Co-determination rights are general- 4 The confidentiality of information cation, merger, takeover), espe- ly regulated by collective agreements provided to employee representa- cially when collective redundan- in Sweden and Denmark. It is main- tives, especially for information, cies are at stake. ly Austria, Germany, the Netherlands which is defined as highly sensi- and Sweden, which have strong par- tive for the competitiveness of the Consultation rights on structural ticipatory rights in existence. They company; changes and employment matters are mainly apply to economic and social also common. The introduction of matters, although a German works 4 Protection rights for the represen- new technologies and new working council can also, for example, object tatives from dismissal or employ- methods are also often a matter for to an individual dismissal (under cer- ers’ harassment on grounds related consultation. The degree of formali- tain conditions).(106) Social matters to the execution of their represen- ty and the procedural steps to follow have to do with personnel manage- tational duties; for such a consultation may differ ment and policies: regulations on markedly between Member States. career management, working hours, 4 Resources to fulfil the task (train- training, dismissal and so on. The co- ing possibilities, material, com- Rights beyond information on finan- determination rights are mostly munication facilities etc.). cial and business matters are less com- accompanied by the possibility of an mon and very often accompanied by a appeal for the employer (at an arbi- 3.2.1. Information and lot of formal procedures and checks tration committee in Germany, a consultation rights and balances. However, they do exist mediation commission or court in in countries such as Austria, Belgium, the Netherlands). In Austria this co- In many Member States and in line France, Germany, Luxembourg, the determination right is the strongest with EU Directives the statutory Netherlands and Spain. and almost looks like a veto right in prescriptions establish nowadays certain matters. In Sweden, co-deter- that the employer has to give infor- 3.2.2. Co-determination rights mination is more an obligation for mation on: the employer to negotiate on the mat- Extensive co-determination rights ter with the local or national union, 4 Financial and business matters; are rather rare. In countries like when a dispute has risen.

(106) Under these provisions, the employer must inform the works council or staff council of a proposed dismissal, specifying the reasons, and give it the opportunity of stating its position on the matter. If the employer pronounces a dismissal before the council has responded or before a set period has elapsed of one week in the case of ordinary dismissals with notice and three days in the case of summary dismissals, the dismissal is invalid irrespective of whether or not it is lawful in other respects. The works council or staff council has the right to object to a dismissal if it contravenes one of the agreed company guidelines on personnel policy, if the employee could continue to be employed in a vacant job in the same establishment or another establishment of the same company, or if re-training or further training which the employer could reasonably be expected to provide or amendment of the contract of employment (subject to the consent of the employee concerned) would make continued employment possible. An objection by the works council or staff council has no direct effect on the validity of a dismissal. However, if a dismissed employee then makes an application to the courts for protection against dismissal an objection issued by the works council or staff council, if deemed by the court to be justified, means that without any further assessment of the interests involved the court rules the dismissal to be unfair. An objection also secures for the employee the right to continued employment during dismissal proceedings. See EMIRE at www.eurofound.eu.int.

67 Chapter 3 Industrial Relations in Europe 2006

Rights of co-determination in the lated by a strict procedure and the Slovakia they are explicitly for- area of economic matters are found possibility of arbitration. bidden to be involved in signing in the Netherlands and Sweden. In collective agreements. the Netherlands the law establishes a 3.2.3. Bargaining rights right of the works council to delay 4 In the Baltic countries, ‘authorised’ the implementation of measures for As a result of decentralisation trends non-union representatives have the one month on important questions. in collective bargaining, a question legal right to bargain collectively In Sweden the union right to veto of growing importance is who has with the employer at company exists for outsourcing questions. In the right to bargain a collective level, when a union is not present. Germany and Austria influence in agreement at company level. As a In Lithuania, the company collec- economic matters is more indirect general rule, local trade union tive agreement has to be approved through a referral to powers in social branches or sections have this on the employees’ side in a general matters. This tactic can also be used authority on the employee side. In assembly. in many other countries (for example many Member States this rule is France and Belgium), when restruc- accompanied by settings to decide turings with collective redundancies which union or how the unions have 3.3. Conclusion are at stake. Unions have certain to work together at company level to negotiation and consultation rights reach a collective agreement. It has This overview has shown a great and can intervene in the management to be, for instance, registered unions, variety of regulations. However, sim- process of restructuring (for example representative unions or the largest ilarities can also be detected in Belgium by the so-called Vilvo- union. throughout the EU. The available orde Law, instigated after the unilat- structures can be simplified into 5 or eral closing down of the Renault Furthermore, other points of institu- 6 types of channels. A basic pillar of plant in this Belgium town). tional difference can be noticed in information and consultation rights – this regard between the Member nowadays embedded in a range of In the new Member States, the Czech States (see last columns of Table 3.1): EU Directives – has been laid down and Latvian regulations grant some in all the Member States. Points of specific co-determination rights to 4 First of all, there is the German great difference are still the minimal the local trade union (for example set- and Austrian tradition of differen- thresholds to establish the statutory ting of holiday periods and work tiation between collective agree- body and the possibilities of co- rules). In Hungary, the works council ments (between employer(s) and determination rights. Although the has rights of co-determination on the union) and work agreements recent EU Directive definitely does allocation of welfare funds and the (between the employer and works not choose a low threshold compared utilisation of welfare facilities of the council). The latter agreement has to existing national rules, its guide- companies. Comparable rights exist more limited scope, does not nor- lines will certainly lead to a higher for the Polish local trade union repre- mally deal with pay settlements incidence of statutorily prescribed sentation, which has also a say in the and is very often the result of an thresholds. Nevertheless, the Direc- system of rewards and bonuses. Both explicit delegation clause in a tive says nothing about co-determi- these cases resemble to a certain (sectoral) collective agreement. In nation rights and even on social or extent the French case, where the the Netherlands, works councils strictly HRM matters the powers of works council manages the ‘social are in a comparable technical way workplace representations are still works’ of the company and has also increasingly involved in processes limited in many Member States important management power in the of collective bargaining. (with the exception of some coun- regulations of employee financial par- tries). ticipation schemes. Probably the 4 General works-council type bod- largest co-determination rights within ies have full bargaining rights at the CEE countries exist in Slovenia. company level only in Spain. In 4. Practices Employers must submit for approval Italy this body (RSU) has bargain- by the works council draft decisions ing rights, but the mandates are Among cross-country studies of on additional health and safety meas- the monopoly of the union. In industrial relations, company-level ures, regulations on absence from Hungary the works council has the worker representation has received work, performance assessments right to bargain when no union is only little attention. Comparative schemes, the system of merit pay, present. studies on workplace industrial rela- worker welfare facilities, promotion tions are very often limited to a study criteria and social plans in the case of 4 In countries like Belgium, the of the institutional arrangements and collective redundancies. In this last Czech Republic, Greece, France, not the actual practices. If these stud- case, approval or disapproval is regu- Luxembourg, Poland, Portugal, ies have actual practices as their

68 Employee representation at the workplace in the Member States Chapter 3

Box 3.3: Overview of recent and important legal initiatives in the (previous) EU-15

Although the recent debate in Germany focused on board-level representation, an important change in the works council law took place in 2001. The principal changes run as follows:

4 Different types of works councils are introduced (for example works councils at the divisional level of a company).

4 In small establishments (5-50 empl.) the procedure for setting up a works council is simplified. The streamlined procedure consists of a nomination of candidates by an electoral board, followed one week later by another company meeting, in which the works council members are elected directly in a secret ballot by the employees.

4 The compositional size is increased by a reduction in the employment thresholds used to determine the number of councillors.

4 New topics of influence have been determined (regarding employment protection, vocational training, team work, environmental issue, combating racism at the workplace).

4 Broadening of facilities (ICT-access, consultation of experts, setting-up of working groups).

4 Equity quota: a gender minority in an establishment has to be represented on the works council at least in proportion of the employment share.

In the Netherlands, the government issued an evaluation of the current Works Councils Act in 2003. A previous amendment with a new specific regulation for small enterprises dated from 1998. Major revisions were announced, but in the autumn of 2005 the government revoked its reform plan. Meanwhile the works council obtained the right to have full information on the remuneration policy of the company towards the top management.

New legislation of 2005 altered in France partly the system of workplace representation. First, the terms of office for elected employee representatives have been increased from two to four years. However, sector and company- level agreements may alter this term of office. Second, employees under the age of 26 will no longer be counted for the purposes of calculating the thresholds triggering mandatory elections of employee representatives — these thresholds are 11 employees for workforce delegates and 50 employees for works councils. However, these younger workers will continue to be entitled to vote and to run for office in such elections.

The Information and Consultation of Employees regulations came into force in the UK on April 6 2005. The Reg- ulation will be implemented in stages, with the final implementation for undertakings with 50 employees or more in April 2008. The obligations will only arise when a request is made by at least 10% of the employees, subject to a minimum of 15 and a maximum of 2 500 employees. It means this trigger is even higher than 10% in undertakings with between 50 to 149 employees. If a valid request is made, there are two potential scenarios. Pre-existing arrangements may already satisfy the requirements of information and consultation. This has to be checked by a ballot of the employees, whereby a minimum of 40% has to support the existing arrangement. The employer can also choose to negotiate a new agreement. If no arrangement exists, negotiations have to be started to reach an I&C agreement. All employees are entitled to a part in appointing or electing negotiating representatives. After an agreement is reached, it has to be approved by 50% of the employees (in writing or in a secret ballot). The negotiating parties have a relative freedom to determine the subject matters, methods and frequency of the information and consultation practice in the company. If no negotiated agreement is reached within the required time (six months mainly), a default statutory scheme will apply.

In 2004, the Danish social partners (LO and DA) signed an agreement on the incorporation of the EU Directive into their existing cooperation agreement. The implementation means that company-level cooperation committees will now have a duty to consult all groups of employees in the enterprise and not only those who are covered by a collective agreement between LO and DA member organisations. It is further clarified that it should be possible for employee groups outside LO to obtain representation in the cooperation committee if there is consensus about such representation.

Chapter 3 Industrial Relations in Europe 2006

Box 3.3: Overview of recent and important legal initiatives in the (previous) EU-15

In Belgium, an initiative of the unions to use the new EU directive to strengthen information and consultation rights in small companies failed until now. In Ireland the government has chosen to make a minimal transposition of the EU directive, comparable to the British case. Nevertheless, it will be the first statutory recognition of workplace representation on a general base. Until now, Ireland has a voluntarist system of employee participation, which only requires information and consultation in some specific areas (based on previous EU directives). The parliamentary approval process has encountered with great difficulty and was at the end of 2005 still not complete.

The new Portuguese Labour Code introduced considerable limitations on workers commissions’ participation rights, at the same time abolishing legal protection for their members (which existed before). Their right to elect representatives to the governing bodies of companies was explicitly restricted to public companies, independently of the will of both parties. The workers commissions’ right to be involved in enterprise restructuring was withdrawn. Further, the amount of time granted to members of workers commissions to exercise their duties was drastically reduced, as well as being redistributed among members.

subject, the research is mostly car- erage denotes the share of employees employees indicate that a trade union ried out by case studies. The varia- working in an establishment with a is active in their workplace. This per- tion in institutional complexity could workplace representation; presence centage is even lower in the Baltic be mentioned as an important cause refers to the share of establishments States. Malta – the figure is an of this lack of information. On the with a representation.(109) expert estimate – has a very low other hand, one of the interesting implantation of workplace represen- comparative investigations based on 4.1.1. In general tation. case studies concludes firmly that the shop floor representations of Around half of the workers in the These data do not tell us which of the France, Germany, Britain and Italy European Union seem to be covered workplace representations – works are to a large extent confronted with by a trade union or similar represen- councils or trade union representa- the same processes and dilemmas, tational channel at the workplace. tives – are the most important in regardless of the differences in insti- The Nordic countries Sweden and Europe. Previous survey research – tutional settings.(107) Finland have a strong density rate of the EPOC survey dating from the workplace representation (above mid-90s and limited to 10 (old) 80%). They are closely followed by Member States – showed that overall 4.1. Presence Slovenia, Denmark, the Netherlands, trade union representation was more Belgium, Italy, France and Austria. important than works councils as a Based on the European social survey Countries with a medium density type of employee representation. Tak- and other comparable data, the fol- rate (40 to 60%) are Luxembourg, ing into account the fact that many lowing density rate of workplace Ireland, Germany, Cyprus, Slovakia, works councils are dominated by representation can be constructed for the UK, the Czech Republic, Greece, union representatives (as in the the EU Member States.(108) We focus Spain, Poland and Hungary. In Por- Netherlands or Germany) or are on coverage and not presence. Cov- tugal only one in three of the statutorily the monopoly of unions

(107) C. Dufour & A. Hege (2002), L’Europe syndicale au quotidien, Brussels, PIE Peter Lang. (108) The European Social Survey (ESS) is designed to analyse the interaction between Europe’s changing institutions and the attitudes, beliefs and behav- iour patterns of its diverse populations. The data of 2002/2003 contained a couple of question on workplace representation, which will be used in this section 4 of the chapter. Reference: Jowell, Roger & Central Co-ordinating Team (2003). European Social Survey 2002/2003: Technical Report. Lon- don: Centre for Comparative Social Surveys, City University; For further information, the ESS data homepage is at: http://www.europeansocialsurvey.org/. (109) Many employers/establishments have only a few employees and are micro-enterprises. Workplace representation is most of the time not established in these micro-companies. As a result presence is always much lower in a country than the coverage. For example: in Germany coverage is above 50 %, presence is around 15 %. (IAB-data). We have only for a limited set of countries (absolute) figures on presence. As we focus in this chapter on Euro- pean comparison, we limit the density question of workplace representation here to the employee coverage.

70 Employee representation at the workplace in the Member States Chapter 3

Figure 3.4: Trade union or similar present at the workplace % of widely by sector and establishment employees (private and public sector) size. 100 4.1.2. By sector 90 In industry about half of the employ- 80 ees are covered by a workplace

70 representation according to the Euro- pean Social Survey. The metal indus- 60 try still has a higher coverage

50 compared with the other manufacturing industries. In the service 40 sector the picture is more mixed.

30 Together with the construction sector, the sales sector, hotels & 20 restaurants and the sector of person-

10 nel services have a low density rate of workplace representation. Only 0 one in three employees indicates that SI FI IE IT SE ES EL LT LV PL EE BE FR PT SK AT LU DE NL CY CZ UK MT DK HU a trade union or similar body is pres-

EU-25 ent at his/her workplace in these sectors. In the transport and commu- EU-25: weighted average Sources: survey data: AT, BE, CZ, DK, FI, FR, EL, IT, LU, PT, ES, SE only ESS data nications sector this ratio is two in 2002/2003; DE average of ESS (51%) and IAB data (53%); HU: average of ESS (43%) three. This sector is more strongly and LFS’04 (37%); IE: average of ESS (53%) and Changing workplace survey (53%); NL dominated by larger companies (rail, average of ESS (64%) and AVON Monitor (68%); PL: average of ESS (43 %) and CBOS air) and still has a considerable data (39%); SI average of ESS (73%) and expert estimate (64%); UK: average of ESS amount of publicly owned or priva- (47%) and WERS’04 (recognised union at workplace, 48%); expert estimates: CY, MT and tised companies. High density rates SK (based on survey of ’00). can be seen in the public and semi- public sectors as health, education and civil service. Table 3.2: Workplace representation by sector, This picture is most of the time con- % of employees covered firmed, when analysed by country. We simplify the sector structure for Sector % employees with trade union or similar organisation present at workplace this purpose, reducing it to three macro-sectors: industry (construc- Agriculture, mining, energy 55 tion included), services and the Metal industry 59 semi-public sector. In every country Other manufacturing 53 the semi-public sector has a much Construction 34 higher density rate of workplace rep- Sales, hotels & restaurants 32 resentation. Consistently low density Transport & communication 67 rates are seen in the private sector for Business services 48 countries such as Greece, Poland, Cultural and personal services 37 Portugal, Spain, and the UK. In these Health & social work 66 countries only around one third of Education 80 the employees in industry and serv- Civil service 76 ices have an employee representation at the workplace. In the public sector these figures are most of the time Data for HU not included, due to missing sector variable. doubled for these countries. Other Source: ESS 2002/2003, weighted, 18 Member States (AT, BE, CZ, DE, DK, EL, ES, FI, FR, IE, IT, LU, NL, PL, PT, SE, SI, UK) countries have a more differentiated density rate between industry (higher) and services (lower). This is the (as in Italy or Belgium), workplace These figures are already ranging case for Austria, Ireland, Luxem- representation is, when available to a considerably between the Member bourg, the Netherlands and Slovenia. worker, still to a large extent a union States. The presence of employee Smaller density differences exist matter in Europe. representation varies furthermore between the two sectors in Belgium,

71 Chapter 3 Industrial Relations in Europe 2006

Table 3.3: Workplace representation by macro-sector and country, % of employees covered

BE CZ DK DE EL ES FR IE IT LU NL AT PL PT SI FI SE UK Industry 64 44 63 51 35 36 61 58 67 63 66 61 39 33 80 85 88 36 Services 58 38 57 43 33 32 57 37 51 48 51 49 31 21 56 74 78 31 Public sector 78 56 81 63 64 67 78 75 87 68 84 75 68 57 88 86 95 72

*Data for HU not included, due to missing sector variable; (semi-)public sector: health, social work, education and public administration Source: ESS 2002/2003, weighted, 18 Member States.

Finland and France. In Sweden, the public sector tops everything with a Table 3.4: Workplace representation by establishment size, density rate of 95%. The lowest den- % of employees covered, EU sity rate in the table is of the service sector in Portugal (only 21%). Establishment size % employees with trade union or similar organisation present at workplace Trade union representation or works All Private sector council implementation is especially low in the private sector in many Under 10 24 18 10 to 24 41 32 countries of Eastern Europe.(110) A recent Czech survey gives some 25 to 99 58 49 100 to 499 76 71 explanation for this situation.(111) 40% of employees subscribed to the argu- 500 or more 87 86 ment that nobody is willing to form and run a trade union representation * Private sector: industry and services (Nace A-K), no data for HU. at their workplace. 30% agreed with Source: ESS 2002/2003, weighted, 18 Member States (AT, BE, CZ, DE, DK, EL, ES, FI, the statement that employees believe FR, HU, IE, IT, LU, NL, PL, PT, SE, SI, UK). a workplace representation is not necessary. 11% mentioned employers’ hostility as a reason. Indiffer- ence on the employees’ side is in to the institutional thresholds which the time higher, reducing the need other words an important reason for exist in many EU countries and for employees to organise a ‘coun- non-implementation. which could work as a barrier. Fur- tervailing’ power at the workplace. thermore, the recruiting potential is 4.1.3. By establishment size higher in larger companies: there are 4.1.4. By occupational category more people to recruit as representa- Large differences exist in the pres- tives and more topics are an HRM Workplace representation is also ence of a workplace representation by issue. Other arguments could be ‘biased’ by occupational class. A establishment size. A presence in related to the type of ownership and ‘voice’ divide runs along hierarchi- establishments with under 10 employ- personnel policy. On the one hand, a cal lines. Specific groups of profes- ees is furthermore probably due to the kind of paternalist personnel policy sionals and managerial workers fact that the establishment in this case with a strong adversarial attitude (white and blue-collar) have the is part of a larger company or organi- against unions is more common in highest probability of having an sational structure. SMEs. On the other hand, although employee representation at the working conditions are very often workplace. We could definitely see Density difference related to estab- worse in SMEs, job satisfaction and it as a factor of social inequality that lishment size is a likely effect, due organisational loyalty are most of lower-skilled manual workers in

(110) See for an overview of workplace industrial relations in the CEE countries, Chapter 4 in:H. Kohl & H.-W. Platzer, Industrial relations in central and eastern Europe: transformation and integration, Brussels, ETUI. (111) EIRO (2005), Feature ‘Trade union officials in the firm’, cz0504103f.

72 Employee representation at the workplace in the Member States Chapter 3

Table 3.5: Workplace representation by occupational class, insights from national research. We % of category with representation start with two countries with an elaborated system of works councils that Occupational class % representation at the workplace has been researched extensively in recent years: Germany and the Higher professional and managerial staff 60 Netherlands. Afterwards, we make a Lower professional and managerial staff 62 quick tour of research using the Routine non-manuals 55 quarters of the compass. Lower sales & services 46 Manual supervisors 62 Broad, full of life, intense and stress- Skilled manual workers 45 ful – this is the way a recent German Unskilled manual workers 45 survey describes the works council activities in Germany.(113) Company Source: ESS 2002/2003, weighted, 17 Member States (AT, BE, CZ, DE, DK, EL, ES, FI, restructurings, economic problems HU, IE, IT, LU, NL, PL, PT, SE, SI, UK); Data of France not included due to lack of suf- and organisational changes are the ficient occupational coding. main topics dealt with in recent years. This transformational pressure made the works councillor’s job agriculture, industry and services caused this difference, because this more difficult.(114) At the end of the have the lowest coverage rate of question was more strongly targeted 90s, research had already established employee representation. to the influence of the union, and not that in contrast to the weakening of to another or similar form of work- the German labour movement, the place representation. institute of the works council had 4.2. Influence or impact gained strength over the last decade. Comparative research, conducted at The studies showed significant 4.2.1. (Limited) comparative the end of the 90s, but limited to four improvements in the status, function- figures countries (UK, DE, FR, IT), found a ing and power status of the works result more in line with the institu- council. The scope of tasks and the In the European Social Survey, peo- tional prerogatives of participation, required competences had been ple who indicated a trade union or which we described in the previous extended. Nevertheless, consistent similar organisation was present at section.(112) The survey detected little problems were also recognised: the their workplace were asked to rate difference in the amount of consulta- presence in SMEs, especially in the the difficulty or ease this trade union tion, but significant differences service sector; the transfer of the sys- has in influencing conditions at work between the countries in the impact tem to the former East Germany and on a scale ranging from 0 to 10. or influence of the workplace repre- the costs of the system. Overall, mixed feelings dominate sentation, when consulted. German with a majority of medium ratings workplace representation with an A growing, reported ‘bottleneck’ of (4, 5 and 6 on the 10-point scale). average of 3.17 on a scale range from the German works council system is Second, the figures show consistent- 0 to 5, came top in this survey, fol- the relationship with the system of ly lower scores for the CEE countries lowed by Italy, France and the UK. In collective bargaining. Traditionally, in the sample. Third, the figures look this survey, the country with the the German system was based on a to be influenced by the institutional strongest statutory participation division of roles: the union was context. Countries with a non-union rights, Germany, thus also had, in involved in distributive collective related single channel system like practice, the highest score. bargaining at the supra-company Austria, Germany and the Nether- level, the works council dealt with lands all have below average scores. productive issues at the company Countries with a union-exclusive 4.2.2. Additional insights from level. This task demarcation meant system like Ireland, Denmark, Swe- recent national research also that a works council has no legal den, Finland, Italy and the UK all right to call a strike. In recent years, have above average scores. A We complement these cross-country the German bargaining system has methodological ‘bias’ could have figures on impact with some recent been characterised by a strong

(112) I. Kessler, R. Undy & P. Heron, ‘Employee perspectives on communication and consultation: findings from a cross-national survey’, International journal of human resource management, 15, 3, pp. 512-532. (113) C.M. Frege (2002), ‘A critical assessment of the theoretical and empirical research on German works councils’, British journal of industrial relations, 40, 2, pp. 221-248. (114) C. Schäfer et al., Zur Lage der Interessenvertretung: Die aktuelle WSI-Befragung von Betriebs- und Personalräten WSI Mitteilungen, 58, 6, 2005.

Chapter 3 Industrial Relations in Europe 2006

Table 3.6: Decentralisation of collective bargaining – assessment by members of German works councils (in %)

Decentralisation of collective bargaining Agree Disagree • strengthens the position of the employers to assert their interests 81 17 • leads to different work and pay conditions for employees covered by the same collective 75 22 agreement • does not allow the works council to exert an effective influence 53 42 • gives the works council more influence and scope to make arrangements 49 49 • better takes into account the different conditions at establishment level 48 49 • overestimates the works council 48 50

Source: WSI Works council survey 2004/2005, WSI-Mitteilungen 6/2005.

decentralisation. The number of col- ences can be detected by establish- on the company’s commercial, finan- lectively agreed ‘opening clauses’ ment size (more relevant for larger cial and technological policy appears allowing deviation from sector col- companies), collective bargaining still to be very limited. Nevertheless, lective agreements has increased coverage (it helps decoupling distribu- where the works council used to be sharply. An important area of appli- tion and productive issues), pressure considered as defensive and oriented cation is that of flexible working of other employee involvements toward established rights, it is now time arrangements. In a recent sur- schemes (direct and indirect participa- increasingly involved in the content vey, the majority of members of tion can help each other in creating the and form of organisational develop- works councils remained sceptical high-involvement, high-performing ment. A series of ‘bottlenecks’ have about the process of decentralisation workplace). Recent research on works been detected in the concrete prac- of collective bargaining. Four out of councils in the German machine tool tices of the works councils. Besides five works council members industry stresses another point.(116) It enduring mistrust by parts of the believed that the decentralisation of finds in the first place no statistically Dutch business world, which can sig- collective bargaining strengthens the significant relationship between the nificantly hamper the works coun- position of the employer. presence of a works council and (inno- cils’ activities, the following points vation) performance. However, it con- are stressed, which cause an insuffi- A lot of recent German research cludes that a specific type of works cient use of the information and con- focused furthermore on the link council, namely one which is fre- sultation rights by the works council between the ‘Mitbestimmung’ system quently asked by management to play members: skill and expertise prob- and the economic performance of a strong cooperative role in organisa- lems, lack of time and resources, companies.(115) In general, the presence tional or technological changes, has a growing work load, lack of support of a works council seems to have a positive effect on the performance. from the rank-and-file. Changing slight positive, but never a negative organisational structures are also an effect on business performance. Indi- In the last 10 years much research important factor in causing difficul- cators, used for measuring economic has also been conducted in the ties for the workplace representation: performance, are meanwhile diverse: Netherlands on the effectiveness of managerial perceptions of the busi- workplace representation (i.e. works 4 Decentralisation of labour regula- ness strength, profits, turnover, per- councils) in the country.(117) A first tions and opening clauses in regu- sonnel fluctuations, and innovations. conclusion of this research was that lations, which make the task more Three of the leading contributors to the institution has ‘grown-up’. Legal broad and complex. this performance research conclude in obligations and procedures are more a recent overview from the economic strictly followed. However, the influ- 4 Competition of direct participation. point of view: ‘excessive admiration ence or impact has not increased and of the institution is as misplaced as only stabilised. The impact on strate- 4 Internationalisation and loss of excessive revulsion towards it’. They gic company matters stays limited. responsibilities to the trans- also stressed that systematic differ- The influence of the works council national level.

(115) J.T. Addison, C. Schnabel & J. Wagner, ‘The course of research into the economic consequences of German works councils’, British journal of industrial relations, 42, 2, pp. 255-281. (116) A. Dilger (2002). Ökonomik betrieblicher Mitbestimmung: die wirtschaftlichen Folgen von Betriebsräten. München-Mering, Rainer Hampp. (117) For an overview (in Dutch): M. van der Aalst, J. van der Veen & M. van Ewijk (2004), Monitor medezeggenschap: trendrapport 2000-2003, Leiden, Ministerie van Sociale Zaken en Werkgelegenheid.

74 Employee representation at the workplace in the Member States Chapter 3

Since the election of the Labour government, the UK field of workplace Box 3.4: Task description of a Swedish shop steward representation has been dominated by a ‘partnership’ policy stream. Training In a recent research the main tasks of Swedish shop steward were sum- and information have been organised marised, that probably can be also seen as informative for the local tasks of on a large scale to mainstream this a well-functioning (union-related) worker representation in other coun- ‘practice’ in the field. It led to a stream tries.(123) The important duties are: of partnership agreements, which sometimes attracted considerable 4 Formal negotiations: they represent the members in negotiations and attention. Although a precise defini- other settlements with the employer. Tasks include reading and interpret- tion is difficult and the actual impact ing laws and agreements, planning and strategic thinking. of the phenomenon is difficult to assess, the notion is related to an 4 Being an informant: they inform members and employers about work- approach of workplace industrial rela- place-related events, rights and duties of the parties and about the union tions based on two basic propositions: organisation and ideology.

4 First, that an emphasis on cooper- 4 Arguing for union values: shop stewards are often obliged to act as ative relations around production debaters for and defenders of the union. They have to provide the infor- as opposed to distributional issues mation necessary to sustain their arguments, but desirable skills also between management and include eloquence and the ability to argue. employees (and their representative organisations) is the most 4 Personal conflict management: apart from formal disputes, shop stewards effective route to meeting chang- have to act as conciliators in personal conflicts between members, and ing business imperatives and between members and employer. They are also often exposed to conflicts attaining performance gains. themselves. Empathy is an important skill for this mediation role.

4 Second, that such cooperative 4 Continuous knowledge acquisition: they have to acquire knowledge and industrial relations facilitate support, most often from their own union, but also from external resources. mutual trust and, most significantly, mutual gains. ulate these mainstreaming efforts. In level strategic decisions is considered Partnership thus represents an a recent survey 23% of the Irish low in Ireland.(120) attempt to shift the industrial rela- employees – 18% in the private sector tions culture away from adversarial — indicated this kind of partnership The functioning of workplace represen- relationships. It is a key feature of arrangement existed in its workplace. tation is generally not questioned in the the modernisation, which the present The arrangement was defined as a Nordic countries. Research in Den- British government wants to estab- committee on which unions work mark suggests that the role and respon- lish in industrial relations.(118) with management to promote partner- sibilities of shop stewards and coopera- ship and cooperation, or to improve tion committees has developed into In Ireland, there have been attempts organisational performance. In the more involvement and co-determina- to extend the national social partner- same survey a high proportion of the tion.(121) The shop steward appears to ship at company level. Substantial employees reported being excluded have moved away from acting as a tra- funding has been made available to from major decisions which are made ditional ‘employees’ to a more of a go- mainstream cooperative industrial at their workplace. This exclusion was between role between employees and relations at company level – not with much higher for low-skilled workers management. The same remark also great success until now.(119) Currently, and the lower occupational classes. In probably applies for Sweden and a National Centre for Partnership and line with previous research, the Finland, where these representation Performance has been set up to stim- impact of employee ‘voice’ on higher- bodies are perceived to function well.(122)

(118) For a critical evaluation of this partnership stream: M. Stuart & M. Martinez Lucio, eds. (2005), Partnership and modernisation in employment relations, London, Routledge. (119) T. Dundon et. al. (2003), Organisational change and employee information and consultation. CISC, National University of Ireland, Galway. (120) P. O’Connell et al. (2005). The Changing Workplace: A Survey of Employees’Views and Experiences, National Centre for Partnership and Perfor- mance, Dublin. Download January 2006: http://www.ncpp.ie. (121) EIRO feature ‘The shop steward of the future – LO conducts major survey’, dk9811191f. (122) See for Sweden: T. Huzzard & T. Nilsson (2004), ‘Dancing queen? Partnership, co-determination and strategic unionism in Sweden’, in: T. Huzzard, D. Gregory & R. Scott eds., Strategic unionism and partnership: boxing or dancing, Basingstoke, Palgrave, pp. 86-106. (123) S. Pilemalm, N. Hallberg & T. Timpka (2001), ‘How do shop stewards perceive their situation and tasks? Preconditions for support of union work’, Economic and industrial democracy, 22, 4, pp. 569-99.

Chapter 3 Industrial Relations in Europe 2006

As already stated, trade union representation. A recent survey shows ence of workplace representation in sentation or works council imple- that information and consultation Portugal. ‘There is an enormous con- mentation is especially low in the runs in one-third of the cases as trast between legislation on workers’ private sector in many countries of planned, but in one-third of the participation rights and social reality eastern Europe.(124) Nevertheless, a cases it completely fails to do so. in Portuguese companies. (…) Portu- Czech study suggests that employees Only 21% of the established coun- gal is one of the western European and personnel management are cils meet regularly. A key point of countries with the lowest indicators in largely satisfied with the role a trade discussion in Hungary remains the terms of de facto participation in deci- union representation plays, when it is question of whether works councils sion-making.’(128) The same argument present in the company. Personnel have to be granted collective bar- has been made for Greece concerning management particularly appreciates gaining rights or not. In Slovakia, the statutory provisioned works coun- the ability to harmonise the interests works councils, which are proposed cil. In practice, the implementation of management and staff. A small as a second channel, have not been has been minimal. Partly because study by the Estonian employers’ implemented in practice, due to unions have always seen it as a kind of organisation showed that participa- trade union opposition and the low threat for their own powers, partly tion depended heavily on the inter- level of obligation placed on because management distrust the dis- ests of top management in the employers (employers only have to closure culture connected to the insti- issue.(125) The non-union workers’ set up the body when employees tution.(129) trustee, a specific type of workplace make a request for it). representation, was present in two of the eight case studies and was occu- France has a complex, but well- 5. Conclusion pied by a lower-level manager. developed system of workplace repre- Employee representation was mostly sentation, which has grown in impor- Most of the EU countries have adopt- seen by the managers questioned as tance due to the role representations ed a system in line with the EU Direc- formalistic, inefficient and not as a played in the far-reaching changes in tive. Very often this is the case because serious discussion partner. working time regulations (35-hours the EU Directive is only a basic frame- working week bargained with flexi- work, with national legislation already After the transformation at the bility arrangements). Research has going further in its statutory stipula- beginning of the 90s, Slovenia identified growing institutionalisation tions on workplace representation. opted for a dual channel system, and professionalism, but also prob- However, implementation still leads to which has resemblances with the lems of legitimacy.(127) There has been a continuing policy debate in some German system.(126) Works councils a continual decline in voter turn-out countries (for example Belgium and are particularly present in manufac- since the 1960s in the works council Ireland). The biggest statutory turing and less developed in newly elections. Non-union candidates have changes connected to the Directive are established firms. The councils experienced over the past 10 years an happening on the one hand in the pre- seem to work well and have devel- increase in their score to 23% in viously non-statutory systems of the oped a modus vivendi with the local 2003. In this regard research stresses UK and Ireland and on the other hand trade unions. In Hungary, which that legitimacy is founded on the in some eastern European countries, also chose a dual channel system, ways in which representatives main- where the Directive is used to create a works councils only seem to func- tain their links with the workforce and secondary channel of workplace rep- tion well in unionised firms. In are able to express the identity of the resentation besides the union. Previ- these firms, the works council is workforce in their dealings with man- ously weak statutory systems are in used as a kind of duplication of the agement. other words pushed by the directive to trade union representation, although revise their positions; stronger statuto- in some cases it has led to competi- Recent contributions sketch a bleak ry systems are not hampered by the tion between the two forms of repre- picture of the actual impact and influ- Directive.

(124) See for an overview of workplace industrial relations in the CEE countries, Chapter 4 in: H. Kohl & H.-W. Platzer, Industrial relations in Central and Eastern Europe: transformation and integration, Brussels, ETUI. (125) E. Kalleste & K. Jaakson (2005), Employee participation: case study of Estonian companies, Talinn, EESTI-Praxis. (126) Paragraph based on A. Toth & Y. Ghellab (2003), The challenge of representation at the workplace in EU Accession countries: Does the creation of works councils offer a solution alongside trade unions?, ILO Report Tripartite Conference Warsaw. (127) C. Guillaume & B. Mouret (2004), ‘Les élus de comité d’entreprise: de l’institutionnalisation à la professionalisation?’, Revue de l’IRES, 44, 1, pp. 39-65. See for a same point of view on the German case: D. Tech (2003), Modernisierung und Professionalisierung der Betrieblichen Interessenvertre- tung. Zum Organisationswandel einer Institution der industriellen Beziehungen, Dortmund, SFS. (128) R. Naumann (2004), ‘Portugal’, in: HBS & ETUI (ed.), Workers’ participation at board level in the EU-15 countries, electronic publication, p. 99. See also: A. Stoleroff, The balance between managerial unilateralism and joint regulation in company level employment relations: what the Portuguese case reveals regarding the compatibility of HRM and industrial relations. Paper IREC Conference, Utrecht, The Netherlands, 2004. (129) G. Romanias, ‘The workers’ councils in Greece’, G. Bruisnma et al. (1999), The Workers’ Councils and the social dialogue for the Continuous Voca- tional Training, INE, Athens, p. 31-78.

76 Employee representation at the workplace in the Member States Chapter 3

In the practice of employee represen- growing task complexity and to risk of setting up forms of workplace tation throughout Europe, we can increasing business pressures. representation. detect the same division. 4 Women are relatively underrepre- However, cumulating evidence from Workplace representation has in sented in the group of workers’ north-western Europe shows that a recent years been strengthened and representatives. well functioning employee representa- professionalised in countries with tion can play an important role in the already an institutionalised tradition 4 Coverage of employee representa- modernisation and performance of a (see the examples of Germany, the tion is also severely biased by workplace. Recent findings show also Netherlands and the Nordic coun- occupational class in Europe. Low- that modern human resource manage- tries). In these countries, the scope of skilled workers have fewer oppor- ment can go perfectly hand-in-hand the system has been broadened and tunities for employee ‘voice’. with an elaborated (union-related) deepened due to decentralisation ten- model of employee representation. dencies in the industrial relations No breakthrough has recently been Social partners have picked up this evi- system. However, problems are also detected in countries which have a dence in several countries to make a encountered in these countries: weak system of employee represen- plea for partnership (UK and Ireland), tation. In countries like Portugal, cooperative modernisation (Germany), 4 The role workplace representation Greece and many new Member high-quality co-determination (the plays and can play in small enter- States workplace representation is Netherlands) or the developmental prises: in different countries legal struggling. Certainly in the private workplace (Nordic countries).(130) changes have been implemented sector, severe representational gaps to answer this question (Germany, can be distinguished in these coun- In this regard the important interplay the Netherlands, France). tries. Resistance and mistrust are with the union presence is stressed and important factors in the explanation the need for strong statutory rights of (131) 4 The coverage of the system in cer- of these ‘gaps’. Many managers see employee representation emphasised. tain branches of the service forms of employee participation A division of work between channels sector, where it is confronted with mainly as cost-inefficient and hin- involved in distributive bargaining and management-led forms of direct dering for decision-making. Unions in production issues is important for the participation as competitor. resist the introduction of a dual- performance of a workplace representa- channel model or works councils as a tion. Who has bargaining rights at the 4 The status of the representation in complementary secondary channel, workplace level (and the accompanying a growing multi-level field of because they see these general bod- right to strike) is therefore an important corporate governance, caused by ies as a form of competition and a question to address in debating work- the network economy and interna- way to undermine the own powers. place industrial relations. Reasoning on tionalisation. This resistance and mistrust survives the same lines, a lot of authors underline well in a context of (probably grow- the importance of strong participatory 4 Rising skill needs and work load ing) employee indifference. Em- rights, especially when trade union of the representatives’ job due to a ployees see no point in taking the power is low.

(130) H.K. de Bodt-Kloosterziel (2003), Kwaliteitsbevordering medezeggenschap – gezamenlijke aanpak gewenst. Ministerie van Sociale Zaken en Werkgele- genheid. Directie arbeidsverhoudingen.Afdeling Collectieve arbeidsvoorwaardenvorming en medezeggenschap; P. Totterdill, S. Dhondt & S. Milsome (2002), Partners at work? A report to Europe’s policy-makers and social partners. Report of thet Hi-Res project. www.hi-res.org.uk; Ennals, R. & Gus- tavsen, B., eds. (1999). Work organisation and Europe as a development coalition. John Benjamins, Amsterdam; N. Kluge & B. Riess (2004), Mitbes- timmung für die zukunft: ergebnisse und fazit aus der arbeit des ‘Forum Mitbestimmung und Unternehmen’1999-2003, Gütersloh, Verlag der Bertels- mann stiftung. (131) See for example: T. Huzzard, D. Gregory & R. Scott eds., Strategic unionism and partnership: boxing or dancing, Basingstoke, Palgrave; K. Dörre (2002), Kampf um Beteiligung: Arbeit, Partizipation und industrielle Beziehungen im flexiblen Kapitalismus, Wiesbaden, Westdeutscher Verlag.

Chapter 4 Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries

1. Responding to ners to develop stronger sectoral and 2. Commission Initia- bipartite social dialogue structures. the challenge of In its 2002 and 2004 communica- tives in enlargement tions, the Commission also stressed the new Member the importance of social dialogue as a tool for better governance and States As explained in the 2004 Industrial made various recommendations for Relations in Europe report, the dif- improving the capacity and involve- In the run-up to enlargement, the ferent industrial relations traditions ment of the social partners, as well as Commission encouraged the new and practices in the new Member for monitoring the impact of the Member States to include social dia- States present a considerable chal- results of social dialogue in the new logue projects within the context of lenge for European industrial rela- Member States. the Phare programme.(132) The Com- tions. In contrast to the EU-15 Mem- mission’s 2004 communication(133) ber States, who tend to put more This chapter will first review past mentions the various projects that emphasis on bipartite collective bar- and current social dialogue capacity- have been developed to promote gaining, the main form of social dia- building initiatives in the new Mem- national, sectoral and/or regional logue in the new Member States is ber States, organised and/or funded social dialogue and to assist in the tripartite and national concertation. by European Community pro- implementation of labour market Where it does occur, collective bar- grammes, the European social part- regulations and EU directives in gaining is largely limited to company ner organisations, the International these countries. level bargaining. Furthermore, espe- Training Centre of the International cially in the new Member States of Labour Organisation (ITC-ILO) and Social dialogue capacity-building central and eastern Europe the social the European Foundation for the projects have been established in partners are confronted with organi- Improvement of Living and Working central and eastern Europe. As a vital sational weaknesses and limited Conditions in Dublin. In a final sec- element of the programme, each financial resources. From the Euro- tion an overview will be given of country could choose one or two pean perspective, this current aspect running programmes for the current twinning partners from the EU-15, of industrial relations practices in the accession countries (Bulgaria and typically the Social Affairs and central and eastern European coun- Romania), candidate countries Labour Ministries in the partner tries poses a challenge in terms of (Croatia, Turkey) and the former country, as well as national labour effective participation in European Yugoslav Republic of Macedonia. market experts with whom they social dialogue and their ability to All initiatives have produced interim would work closely on the develop- implement and monitor new genera- and final evaluation reports, which ment and implementation of the tion texts, as well as their capacity to contain details regarding the specific project activities. Project activities make use of the possibility to imple- activities undertaken during the generally included the provision of ment certain provisions in EU direc- course of the project and which com- support for setting-up sectoral dia- tives by collective bargaining. ment on the efficiency and relevance logue committees, training the social of the projects in respect of strength- partners in consultation, negotiation In helping prepare the former and ening social dialogue and preparing and language skills, as well as current accession countries for their country for EU accession. The strengthening the public authorities’ enlargement, the Commission has chapter uses the main conclusions administrative capacity for social therefore consistently highlighted from these reports. dialogue. the need for the national social part-

(132) The Phare programme is a pre-accession instrument financed by the European Commission to assist the applicant countries of central and eastern Europe in their preparations for joining the EU. (133) COM(2004) 557 final, 12 August 2004, Communication from the Commission — Partnership for change in an enlarged Europe — Enhancing the contribution of European social dialogue.

79 Chapter 4 Industrial Relations in Europe 2006

Table 4.1: Overview of past and current social dialogue twinning projects in the central and Eastern European countries

Project title Duration Twinning partner Level Objectives BG BG04-SO-01:‘Support 19 months, United Kingdom Cross-industry, To enhance the organisational for Social Partners for May 2005- (Belgium) sectoral capacity and skills of the MLSP, Social Dialogue Activities’ Nov 2006 trade unions and employers’ organisations in order to ensure their full engagement in the creation of national labour market and social policy. CZ CZ99/IB/CO-02: 17 months Denmark N.A. To help the social partners dis- ‘Development of cuss and implement necessary Social Dialogue’ reforms in social dialogue and assist in the implementation of autonomous social dialogue. EE ES2001/IB/SO-01 20 months, Finland (Ireland) Sectoral To enhance the capacity of the (EE):‘Promotion Aug 2002 – social partners to implement the of Social Dialogue Sept 2004 acquis; to strengthen dialogue on the Employers’ between them and to align and Workers labour relations legislation with Organisations Level’ EU requirements. HU HU01/IB/2001/SO-01: 21 month, Denmark Sectoral To create an institutionalised ‘Strengthening June 2002 cooperation between the social Autonomous Social to Jan 2004 partners; to reinforce bargaining Dialogue’ activity at sectoral level; to establish a better linkage between bipartite and tripartite negotiations and to prepare the social partners for their role in the sectoral dialogue at European level. LV LV01/IB-SO-01: 17 months, Germany Sectoral, national Strengthening autonomous social ‘Promotion of Bipartite 2002-03 (United Kingdom- dialogue at the different levels. Social Dialogue’ ACAS) LT LT01/IB/SO-02-TL: 6 months, Germany Sectoral To enhance the efficiency of ‘Strengthening Social Aug 2003- existing bipartite social dialogue Dialogue’ Jan 2004 structures and to strengthen social dialogue at sectoral and enterprise level. PL PL00/IB-SO-01: 24 months Denmark Cross-industry, Creation of an institution for ‘Social Dialogue’ Dec 2001- sectoral inter-sectoral dialogue and the Dec 2003 development of autonomous social dialogue. RO RO03-SO-03: 20 months United Kingdom All levels To develop the capacity of the ‘Promoting Autonomous Feb 2005- (France) ESC to provide information, social dialogue’ Aug 2006 training and assistance to the (Economic and Social social partners and to strengthen Council –ESC) their capacity to participate in the implementation and development of the acquis and the national legislation, in the field of social dialogue. RO03-SO-02: 20 months, Germany N.A. The setting-up of a management ‘Promoting Autonomous July 2004- information system on collective Social Dialogue’ March 2006 agreements and labour conflicts within the Ministry of Labour,

80 Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries Chapter 4

Table 4.1: Overview of past and current social dialogue twinning projects in the central and Eastern European countries (cont.)

Project title Duration Twinning partner Level Objectives enhancing the social partners’ knowledge base and tools for collective bargaining. SK SK00/IB-SO-01: 24 months, Netherlands National, sectoral, Implementation of relevant ‘Development of Social Nov 2001- (United Kingdom- company European directives on works Dialogue on the Bipartite Nov 2003 ACAS) councils into Slovak legislation, as Level’ well as the overall improvement of the capacity and position of the social partners in Slovakia. SL SI.0101.04:‘Enhancement 18 months, None, but some N.A. To support the social partners’ and Development of Sept 2002- cooperation with capacity-building efforts through Social Dialogue’ April 2004 Germany bipartite social dialogue; to assure an efficient implementation of social dialogue in Slovenia and to link the work of the social partners more closely to the implementation of EU policies.

2.1. Short overview by An important aspect of the project A final important aim of the project country was to make a contribution from the was to strengthen social dialogue at industrial relations side to the adapta- national level. A vital step forward in (a) Under the project ‘Development tion of the Czech labour market regu- this respect was an agreement of Social Dialogue’, the Ministry of lations to the European requirements, between the social partners concern- Social and Labour Affairs of the in order to ensure that EU directives ing the future development of social Czech Republic and its Danish are implemented in the Czech labour dialogue, including comprehensive twinning partners endeavoured to market and that Czech positions in recommendations for possible future help the national social partners dis- relation to the directives are being dis- steps to further improve social dia- cuss and implement the necessary cussed with the social partners. logue practices within both employer reforms in social dialogue, assist in and employee organisations in the the implementation of autonomous A further major component of the Czech Republic. social dialogue practices and project were activities to strengthen increase the number of collective social dialogue at enterprise level. (b) In Estonia, a project to promote agreements. Initiatives in this field aimed at social dialogue at the employers and improving the dissemination of workers level was launched in An initial assessment report information on the new regulations, August 2002 between the Finnish described the situation of social dia- as well as the recruitment of more Ministry of Labour, the Department logue in the Czech Republic, as well employers and employees to partici- of Enterprise and Employment of the as possibilities and barriers for fur- pate in social dialogue. However, the Republic of Ireland and the Ministry ther development of social dialogue. project showed that progress is still of Social Affairs of Estonia. The The report helped improve the social needed to secure comprehensive project focused on capacity-enhanc- partners’ information-base and com- workers’ representation at the entering measures for the social partners mon understanding of necessary prise level. The Danish experts rec- and bringing Estonian legislation on actions to be taken in order to sup- ommended the creation of a forum in labour relations in line with EU port social dialogue. Moreover, order to continue encouraging requirements. based on three reports analysing the employers and employees at enter- Czech, German and Austrian sys- prise level to establish systems of The project notably led to the estab- tems of extending collective agree- workers’ representation. According lishment of a tripartite working ments, a list of recommendations to to the experts, the forum should con- group in the Estonian Ministry of optimise procedures concerning the sist of representatives from central Social Affairs. Its main function extension of collective agreements in unions and local shop stewards of was to prepare legislation facilitat- the Czech Republic, were approved companies, as well as of representa- ing the implementation of the at the relevant working group tives from central employers’ organi- acquis communautaire (henceforth meetings. sations and local companies. ‘acquis’) and to align the relevant

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labour legislation drafts with EU As a supporting activity, the twin- employers’ and employees’ associa- legislation. The twinning partners ning partners also organised a semi- tions. Important in this respect was further conducted 12 training seminar on European works councils the creation of a policy document on nars for the trainers, involving both (EWCs), in order to increase the bipartite social dialogue at national, employee and employer representa- knowledge of the social partners on regional and sectoral level. However, tives, as well as members from the the nature and functioning of EWCs the German twinning partners Tripartite Regional Employment and on how EU directives are imple- emphasised the need to further Council and organised several study mented in other EU Member States. strengthen bilateral structures, espe- tours to Brussels and Finland. The cially in the Latvian regions and project also produced a social dia- Overall, the twinning partners municipalities. logue toolkit for branch and enter- agreed that the project had a notice- prise levels. During the project peri- able impact and was therefore rated (e) The Lithuanian project, which od the number of collective agree- positively by the participants and was launched in December 2002, ments increased from 30 to 164 and experts. However, the partners con- aimed to enhance the efficiency of there are indications that this figure cluded in their evaluation also that existing bipartite social dialogue will continue to rise. the sustainability of the project structures and to promote social dia- results will depend upon how legal logue at sectoral and enterprise level. (c) The Hungarian project on social and financial conditions can be sta- The main beneficiaries of the project dialogue was started under the super- bilised in the long run. Sustainability were the Tripartite Council, as well vision of the Hungarian Ministry of – it is stated – also requires further as the key social partner organisa- Economy and Transport in 2001 and efforts to increase the participation tions in Lithuania. The project part- transferred to the Ministry of and motivation of employer organi- ners developed an initial report on Employment and Labour (MoEL) in sations in social dialogue. This is the situation of social dialogue in January 2003. Together with the particularly true for small and medi- Lithuania, which assessed three Danish twinning partners who joined um-sized enterprises (SMEs). dimensions of the national industrial the project in November 2002, the relations system: social partners and the MoEL sought (d) The Latvian project to promote to develop an institutional basis for bipartite social dialogue involved the 4 the organisational strength of sectoral bipartite social dialogue. Latvian Ministry of Welfare (MoW), trade unions and employers organ- Coverage of sectoral collective the National Tripartite Cooperation isations; agreements had previously been lim- Council (NTSP), as well as the Lat- ited and sectoral social dialogue had vian social partners organisations, 4 structures and activities at sectoral been virtually absent in Hungary. i.e. the Latvian Confederation of and enterprise level; Employers Organisations (LDDK) An important step in the develop- and the Latvian Trade union Confed- 4 possibilities and barriers to the ment of sectoral social dialogues was eration (LBAS) together with the future development of social dia- therefore the signing of a framework German Ministry of Economics and logue in Lithuania. The report was agreement by the Sectoral Council in Labour and the Advisory Concilia- followed by an action plan includ- July 2003, which established the tion and Arbitration Service (ACAS) ing recommendations for strength- principles of operation of Sectoral from the UK. ening social dialogue in Lithuania. Dialogue Committees (SDCs). By the end of the project, 28 SDCs and Among the activities organised by During the project the social partners a supporting secretariat for each the project partners was a training expressed their desire to hold semi- Committee were established. Legal seminar on industrial conflicts for nars on the underdeveloped practice regulation guarantees their inde- public conciliators, managed by of sectoral wage agreements in pendence. The government is, how- experts from ACAS and which Lithuania. Thus, during the six- ever, responsible for the basic princi- resulted in the creation of a hand- month duration of the project, Ger- ples of their operations providing a book for conciliators. The project man wage contract experts organised sort of quality assurance. The Sec- has also led to the creation of a a series of one-day workshops for the toral Council has been a specialised homepage for the social partners, social partners on ‘wage negotiations body set up in 2002 by the Hungari- www.socialaisdialogs.lv, which pro- and wage contracts’ in the textile and an tripartite social dialogue with the vides access to collective agreements clothing, retail and building sectors. responsibility of directing the sec- and social acts concluded between The German project leader provided toral dialogue twinning programme the social partners. an overview of collective bargaining under the EU’s Phare programme, practices and industrial relations in and assisting in the establishment of In their final report, the project part- Germany and examples of actual bipartite sectoral social dialogue ners maintained that the project has wage agreements in the three sectors committees. contributed to the strengthening of translated into Lithuanian. In May

Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries Chapter 4

2003 a major national conference process of settling collective labour (h) In Slovenia, the main aim of the was organised on the subject of disputes. Finally, a draft amendment social dialogue project was to assure ‘Social dialogue within companies’ to the law on mediation was prepared an efficient implementation of social and the role of works councils, man- and the Danish partners produced a dialogue and link the work of the agement and unions. large number of recommendations to social partners more closely to the ensure the sustainability of the implementation of EU policies. It The project contributed to the results. further aimed to strengthen bipartite development of new legislation on social dialogue and to support the social dialogue in Lithuania: the (g) In Slovakia, the project sought to social partners’ capacity-building adoption of a new labour law in develop bipartite social dialogue at efforts. January 2003 and a revision of the all levels. The twinning partners legislation regarding works coun- from the Dutch Ministry of Social In order to achieve its goals, the part- cils (finally adopted in October Affairs and Employment (MSAE) ners organised training seminars on, 2004). In June 2003 a consultation and the British Advisory, Concilia- for example, European social dia- paper on the amendment of the tion and Arbitration Service (ACAS) logue, the importance and scope of Trade Union Law was developed by reported a satisfactory reinforcement social dialogue, collective bargaining, the project experts and submitted to of permanent social dialogue at sectoral social dialogue as well as the Ministry for Social Security and national, branch and company level, workshops on communication skills Employment. as well as collective bargaining prac- and the use of electronic media. The tices at central branch/sector and communication networks of the social (f) The Polish social dialogue proj- company level. partners were notably improved ect focused on the strengthening of through the establishment of a central autonomous social dialogue. The A specific aim of the project was to project website and two web portals privatisation and restructuring pro- contribute to the adaptation of the for both, employer organisations and cesses in many sectors in Poland Slovak Labour Code to EU law and trade unions, a collective agreements increased the need for social dia- to facilitate the implementation of monitoring system, as well as parame- logue at the sectoral level and for the European directive on EWCs ters for analysis and comparison of the independent social partners. Togeth- into Slovak legislation. Due to pro- nature of collective agreements. A er with the Danish twinning part- tracted negotiations on the Labour report covering good European ners, who joined the project in Code and the apparent hesitation of practice, organisation and working November 2002, the social partners Slovak companies to establish methods of the collective agreement and the Polish Ministry of Employ- EWCs, the project was not able to register was also presented. ment and Labour aimed to develop give full substance to the implemen- an institutional basis for a bipartite tation of works councils to the Finally, the programme provided social dialogue. extent as foreseen in the Covenant. support in the preparation of the However, legislation now exists in Economic and Social Council Act The project notably resulted in the Slovak law which covers the estab- (ESC). A report on ‘Representa- creation of the institution for inter- lishment and implementation of tiveness and ESC Eligibility Crite- sectoral dialogue and the establish- EWCs. ria’ covering background documents, ment of a social dialogue roundtable a review of EU and national practice, for European integration. The con- The project further resulted in the as well as the scope of tripartite and tinuation of the roundtable was production of a manual to help bipartite dialogue has been prepared ensured by a regulation signed by the maintain the network of social part- and translated into Slovene. The pro- Minister of Economy, Labour and ners involved, various training sem- ject’s final report included a number Social Policy, which defines its inars and a visibly improved overall of recommendations on tackling the future role, competences and sources position of social partners. The controversial issue of how to assess of financing. twinning partners expressed their whether trade union and employers’ hope that the knowledge acquired confederations should be considered The sectoral social dialogue was pro- during the project will help to as nationally representative, and on moted through the establishment of a assure the permanent training of the industrial relations role played by bipartite dialogue in four sectors: experts in social dialogue, con- Slovenia’s compulsory-membership textiles, metals, chemicals and food tribute to the development of social business organisations, the Chamber industry. Further measures included dialogue in enterprises and organi- of Commerce and Industry and the a training-the-trainers concept which sations where social dialogue Chamber of Crafts. aimed to raise awareness of social currently does not exist or is inef- dialogue practices among the Polish fective and help reinforce perma- In 2004 and 2005 projects to social partners and the setting-up of nent social dialogue at national, enhance the effectiveness of social a mediation system to assist the branch and company level. dialogue practices were also

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launched in the two acceding coun- and national legislation in the labour 2.2. Challenges faced by the tries Romania and Bulgaria. law field. It will further set up a social partners in the management information system on implementation of the (i) The Bulgarian project objective is collective agreements and labour projects to enhance the organisational capacity conflicts, including the development and skills of the Ministry of Labour of a national database and webpage Feedback from the national twinning and Social Policy (MLSP), trade within the Ministry, as well as the experts and the social partners has unions and employers’ organisations development of communication revealed challenges which reduced in order to ensure their full engage- tools for the social partners through, the effectiveness of the projects or ment in the creation of national labour for example, a webpage and e-mail delayed some of the planned project market and social policies. The project accounts for the social partners. activities. aims to have a social dialogue system in place, by January 2007, that identi- After an initial country inception In Estonia, for example, high staff fies, analyses and implements labour report on bipartite social dialogue turn-over resulted in a loss of institu- market policy and social inclusion on assessing the situation of collective tional memory, which resulted in dif- central and local level. bargaining at all levels and the repre- ferent recommendations on revi- sentativeness of existing social part- sions, leading to delays in their With the help of the British twinning ner organisations, a draft strategy on approval. Fluctuating political sup- partner, a training programme for the promotion of the development of port was a further problem in Esto- political decision-makers at national social dialogue was developed. The nia, as the project was initiated and and local level, as well as employees project foresees the training of planned in early 2002, but a subse- in public administrations and social experts of MLSSF and social partners quent change in government had a partner organisations was developed on all issues concerning the acquis, negative influence on the project and for implementation in 2005. The pro- collective bargaining and practices of contributed to straining relations gramme also foresees training semi- the EU Member States, as well as between the social partners. nars on social dialogue for 350 social training on mediation and concilia- partner representatives, training on tion of industrial disputes. Similarly, in Slovakia many of the specific management needs for indi- planned project activities were vidual senior managers, as well as The second twinning project involves affected by elections and differing the development of operational pro- experts from the independent British opinions about the introduction of cedures, manuals and a comput- advisory service ACAS and the the new Labour Code. This had a erised system for the monitoring and French Ministry of Employment, negative impact on the time and evaluation of the programme. Work and Social Cohesion, as well as involvement which MOSLAF offi- the French Economic and Social cials could allocate to the project. (j) In Romania, there are two simul- Council. The project aims to strength- Moreover, economic difficulties in taneous and mutually reinforcing en the capacity of the Romanian Eco- the run up to EU accession, such as social dialogue Phare projects. nomic and Social Council (ESC), to high unemployment rates or neces- Launched in July 2004, the first proj- provide information, training and sary pension reforms, created ten- ect is a cooperation between the assistance to the social partners and to sions between the government and Romanian Ministry of Labour and strengthen their capacity to partici- the social partners. Social Solidarity (MLSSF) and the pate in the implementation and devel- German Federal Ministry of Eco- opment of the acquis and national The Czech project leaders voiced nomics and Labour and the German legislation. It further supports the concerns as to whether the positive Confederation of Trade Unions ESC’s development into an organisa- results achieved under the project are (DGB). Its objective is to strengthen tion that is able to design and promote presented to a broader audience. The the MLSSF’s capacity to facilitate standards, as well as guides and report recommends the creation of a and promote the development of methodologies for the social dialogue national institute for social dialogue, bipartite social dialogue and to at different levels.(134) The project has which conducts research, documen- strengthen the social partners’ capac- also contributed to the implementa- tation, training and public relations to ity to contribute to and to participate tion of the body of EU labour law in enhance the efficiency and visibility in the implementation of the acquis Romania. of social dialogue.

(134) Details on the activities and progress of this project are available at the following website: www.ces.ro

Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries Chapter 4

Finally, the project partners general- went several steps further. The main In order to achieve these ambitious ly noted a lack of representation and objective of SME-FIT was to build up goals, training seminars were carried participation of employers’ organisa- information and awareness at the out on subjects such as capacity tions in workshops, training sessions level of SMEs regarding the acquis in building, competition policy and tax- and study tours. It was in general the fields of standardisation, certifi- ation, environment, intellectual prop- recommended that more efforts have cation, quality management, safety at erty rights, the internal market, public to be made to involve the employer’s work, environment and social affairs procurement and social affairs. side much more in social dialogue. and employability. It further aimed to strengthen the institutional capacity In the second round of seminars, the of SME associations in the candidate experts who were trained in the first 3. Social partner countries and new Member States. round disseminated their acquired know-how and experience in their initiatives with Among the activities implemented home countries. Seminars were held regard to were: ‘train the trainers’ seminars, in each of the acceding countries and providing training on relevant chap- the federations in these countries enlargement ters of the acquis to a number of arranged these seminars with sup- experts from the CEEC; an informa- port from EU-15 federations. Com- Beside the European Commission and tion campaign which provided panies were also offered the opportu- national administrations, the European enlargement-related sector and or nity to share information and experi- cross-industry social partner organisa- branch-specific information directly ence on subjects related to the acquis tions took initiatives on their own in to businesses through the develop- and they have benefited from adviso- recent years in support of national and ment of brochures each covering ry and coaching services from their European social dialogue in the new another sector; the selection of twin- federations. Member States, as well as the current ning partners to provide experts on EU accession and candidate countries. specific topics and branches; and UNICE-BOSMIP has helped busi- These projects received the financial seminars covering project manage- ness federations in the new Member support of the Community through ment with a focus on European States and their members to famil- either the Phare programme or through projects.(137) iarise themselves with the relevant the Commission’s social dialogue parts of the acquis, and reinforced budget headings administered by the A further BSP II project is the the capacity of business federations DG Employment, Social Affairs and UNICE-BOSMIP – ‘Business to deliver adequate services to their Equal Opportunities.(135) Organisations as Single Market Inte- members (for example in EU lobby- gration Players’, which ran from ing and EU project management). In collaboration with its partner organ- June 2003 to November 2004.(138) Its isations, the European Association of main objective was to strengthen the In 2003, the European cross-industry Craft, Small and Medium-sized Enter- business federations in the new social partners (UNICE-UEAPME, prises (UEAPME) organised the Member States and acceding coun- CEEP, ETUC) launched their ‘SME-FIT’ project designed to help tries. The programme specifically so-called ‘Integrated Programme’ small enterprises and SME organisa- sought to allow business to support aimed to enhance the capacity of the tions in the new Member States famil- the reform process in their countries, social partners to participate in Euro- iarise themselves with the acquis. It enable federations to contribute to pean social dialogue.(139) It receives was part of the Business Support the legislative process and the for- financial support through the EC Project II (BSP II) and included partic- mation of economic policy, create budget heading 01 for industrial rela- ipants from 24 SME associations com- business and development opportu- tions and social dialogue and is open ing from the new Member States, the nities for individual member compa- to social partners from all new Mem- EU-15 and the candidate countries. nies, improve information and advi- ber States and Romania and Bulgar- sory services to individual member ia, as well as other candidate coun- The project built on the achievements companies and reinforce federations tries. It consists of four pillars: of the activities under BSP I(136) but as social partners.

(135) As explained in the 2004 Industrial Relations in Europe Report, these three budget headings have different but reinforcing aims: to promote the development of the social dialogue at cross-industry and sectoral levels; to facilitate information and training measures for workers’ organisations; and finally to strengthen trans-national cooperation in the development of employee involvement in multinational undertakings and promoting and supporting the Community acquis. (136) For information about BSP I, see the following website: http://www.ueapme.com/business-support/. (137) The following website contains detailed information on the project activities: http://bosmip.unice.org/Content/Default.asp?. (138) For further information on the project see the following link: http://www.ueapme.com/business-support %20II/index.htm. (139) For more detailed information on the project see the following website: http://212.3.246.118/Content/Default.asp?PageId=371.

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The first pillar of the programme is a ings, interactive training sessions training workshops were organised, joint project addressing the needs of on EU social dialogue issues for the as well as study trips to Brussels the Member States’ social partners in same experts and the preparation of attended by both specialists from the order to effectively participate in the a tool to audit human resource training centre and the national European social dialogue. The pilot competences. employers’ representatives from the project started in 2003 with national countries involved. seminars being held in Poland, Hun- As a fourth pillar two resource cen- gary, Czech Republic, Slovakia and tres for employers and trade unions At the first workshop in Budapest Lithuania. The project was later have been established in order to the participants gave presentations extended to cover Slovenia, Estonia respond to the needs of the social on their current national situation and Latvia. partners in the new Member States, and expressed their desire to providing in-depth information on enhance their skills in the areas of Between December 2003 and June social dialogue issues and past and information management, strategic 2004,(140) a two-day seminar with rep- present activities of the European planning, lobbying and negotiation. resentatives of the national social social partners, assistance on EU Each country then developed an partners was held in each participat- funding opportunities for projects action plan, identifying the main ing country with the aim of identify- and assistance on project tendering challenges they faced and fields of ing what needed to be done at the and management.(141) activity. At a second workshop in national level in order to strengthen Prague these action plans were their capacity to represent the view revised and adjusted. of their members in the European 4. Initiatives by social dialogue. Each national semi- In April/May 2004 consultative mis- nar included discussions in small the International sions were carried out to all partici- working groups, regular plenary Training Centre of pating countries, their main purpose feedback forums and consensus being networking, as well as the fol- building sessions. The social part- the International low-up of the action plans and con- ners consequently developed action Labour sultations on a potential extension of plans. the project. The implementation and Organisation validity of the national action plans The second pillar of the integrated was continuously evaluated and at programme is a study on restructur- The Commission has further co- the end of the project an external ing in the new Member States. It financed capacity-building initia- evaluator assessed their impact and aims to provide the social partners tives organised by the International sustainability. with material on the specific chal- Training Centre of the International lenges facing the new Member Labour Organisation (ITC-ILO),(142) Moreover, several bilateral cooper- States in view of a prospective dis- such as the ‘EMPACT’ and ation agreements were signed cussion on EU social and employ- ‘ACTRAV’projects designed respec- between the different organisations ment policies after enlargement to tively to enhance the capacity of the and representatives of the various enable them to influence the social employers’ and workers’ organisa- organisations have been sent to policy agenda and identify relevant tions to participate effectively in Brussels with the aim of establish- issues for future joint work. European social dialogue. ing an office in Brussels and a permanent membership of UNICE to The third pillar focuses on compe- facilitate and increase lobbying at tence development for the Euro- 4.1. EMPACT oriented to EU level. Following this project, pean social dialogue and aims to employers’ organisations almost all participating employers’ overcome the skills mismatch of the organisations made changes to their social partners in the new Member Launched in December 2003, the internal structure, established new States which were identified during ‘EMPACT’ project for employer committees and developed services the 2004 national seminars. The organisations set up training pro- responsible for EU projects, as well project included a mentoring programmes for the administrative and as new policies on, for example, gramme for employer representa- professional staff of the participating social protection and international tives in EU social dialogue meet- employers’ organisations. Several relations.

(140) A second round of national seminars is foreseen in all these countries between May 2005 and April 2006. (141) For further information on the resource centre consult the following website: www.unice.org/erc. (142) The ITC was established in 1964 by the International Labour Organisation and the Italian government in Turin, Italy, as an advanced vocational training institute. The Centre provides training and related services that develop human resources and institutional capabilities. They thereby aim to contribute to achieving the ILO’s goal of decent work for women and men.

Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries Chapter 4

The participants also expressed the International (UNI) and ETUC who tion established a project on social desire for a second phase of the proj- provided teaching support and expert- dialogue and EMU in the candidate ect, concentrating on strategic plan- ise. countries together with the Swedish ning, training of staff and involving Work Life and the EU Enlargement more of the new Member States, as There were several training semi- project. Its aim was to bring togeth- well as stronger networking with nars, a workshop in Brussels and a er employers, trade unions, govern- their counterparts in the EU-15 distance learning course via the ments and researchers in order to Member States and with EU offi- Internet. Examples of seminar topics assess how social dialogue can best cials. They further argued that the covered are ‘social dialogue in be utilised in preparation for EMU nature of the transition process Europe and the role of trade unions and to assist the candidate countries necessitated a constant review of the in the postal and telecommunications in adapting to the Maastricht EMU tools in order to ensure their contin- sector’, ‘industrial relations with a convergence criteria by using social ued relevance. National experts focus on collective bargaining sys- dialogue as a tool. The project could be commissioned to undertake tems in Europe’, ‘collective bargain- specifically focused on the develop- such assessments. It was also ing strategies’ and ‘globalisation and ment of conflict resolution mecha- acknowledged that employers’ trade unions’. nisms in the ten acceding countries. organisations tend to target larger It initially covered Estonia, Hun- companies and that therefore more The intermediate evaluations of the gary, Malta, Poland and Slovenia services targeting SMEs should be project revealed that the participants and was extended to Cyprus, Czech developed. faced difficulties in the implementa- Republic, Latvia, Lithuania and tion of social dialogue due to nation- Slovakia in 2003. al political developments, lack of 4.2. ACTRAV targeted to coordination between local and After a first round of meetings at trade unions national unions and national trade national level the Foundation invited union confederations, different pri- the tripartite national teams consist- Similarly, the ITC-ILO programme orities within the organisation, as ing of representatives from govern- for workers’ activities (ACTRAV),(143) well as weak employers’ organisa- ments, trade unions and employers’ aimed to strengthen the capacity of tions in the postal and telecom sec- organisations to two workshops in workers’ organisations, particularly in tors. It was consequently proposed Vienna in May 2002 and again in the postal and telecom sectors, to par- that any future activities should May 2003 in order to discuss and ticipate effectively in social dialogue, involve employers’ organisations in prepare national development proj- collective bargaining and concerta- the training sessions. ects. At a workshop in Prague in tion at local, national and European October 2003, the national reports level. It sought to raise awareness and on this topic were discussed together to facilitate exchange of practices and 5. Projects set up by with government representatives and experiences amongst workers’ organi- social partners from Estonia, Hun- sations in the accession countries and the European Foun- gary, Malta, Poland and Slovenia, their EU counterparts. It was hoped dation for while a second workshop in January that this would identify best practices 2004 involved national tripartite in economic and financial analysis of the Improvement of teams from Cyprus, Czech Republic, enterprises and promoting enterprise Living and Working Latvia, Lithuania and Slovakia. The and sectoral agreements. national conflict resolution develop- Conditions ment projects drafted during these The project also encouraged and sup- two events were presented and ported the creation of a workers’ The European Foundation for the analysed at a social dialogue and organisation network within the Euro- Improvement of Living and Work- conflict resolution conference in pean Trade Union Confederation ing Conditions in Dublin, a Euro- Slovenia in March-April 2004.(144) (ETUC). It was carried out in close pean Union agency, also launched a cooperation with the European feder- number of projects in the industrial As part of its 2005 Work Pro- ation of Telecom and Postal sectors relations sphere to prepare for gramme, the Foundation recently belonging to the Union Network enlargement. In 2002, the Founda- launched capacity-building projects

(143) For further information on the project see: http://www.itcilo.org/actrav/english/index.htm (144) For further information and links to specific components and workshops, which took place during the programme, follow the link: http://www.eurofound.eu.int/areas/industrialrelations/socialdialogue.htm

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for social dialogue in the new Mem- partners and the will to reach agree- (FIEC) and the European Federation ber States (project No 0318).(145) The ments. It further emphasised the of Building and Woodworkers aim of these projects is to bring need to anticipate and adapt to (EFBWW), as well as the EWC of together social partners, government changing situations, a better balance the Lafarge company presented representatives and academic resear- between tripartite and bipartite social examples of autonomous bipartite chers to investigate how to develop dialogue, to strengthen the mecha- social dialogue in the fields of unde- social dialogue capacities for pro- nisms for the settlement of labour clared work and health and safety. moting employment, better working dispute, as well as the need to sup- The Commission declared that it conditions and industrial relations in port the reform of labour legislation would be ready to consider a follow- these countries. in order to bring it into conformity up to the event, provided that social with ILO standards and European partners found it useful. practices. 6. Social dialogue A further important capacity-build- The social partner organisations in ing tool in the region is the Stability capacity-building the Western Balkan countries Pact (SP),(147) which provides a bridge projects in stressed that the challenges for between the Western Balkans, the social dialogue in the region includ- candidate countries in SEE, and the the candidate ed the great diversity across the Republic of Moldova. The pro- countries and region: in some countries economic gramme is co-financed by the Com- and social councils are more consol- mission and is targeted at the south potential candidate idated, the institutional framework is eastern European countries of Alba- almost completed and current work nia, Bosnia and Herzegovina, Croatia, countries in focuses on capacity building. In FYR of Macedonia, Federal Repub- the Western other countries, however, economic lic of Yugoslavia (including Kosovo (146) and social councils are currently and Montenegro). Romania and Bul- Balkans being created with the help of inter- garia may also participate in relevant national organisations. projects. In October 2005, the Commission organised a conference on strengthen- The social partners further noted a The overall aim of the SP for south ing social dialogue in the Western lack of respect of national govern- eastern Europe (SEE) is to foster an Balkans in Skopje, specifically target- ments for their autonomy, difficulties environment of lasting peace, ing Bosnia and Herzegovina, Croatia, in implementing and enforcing democracy, prosperity and stability the former Yugoslav Republic of agreements, the reluctance of foreign in the region of south eastern Macedonia, Serbia and Montenegro, investors to facilitate the establish- Europe. It reflects the will of the and Kosovo. The conference built on ment of trade unions amongst their countries in this region to develop a the success of the 2004 social partner workforce, and the power exerted by shared strategy for stability and conferences in Ljubljana and Istanbul, the ministries of labour upon social growth of the region and to cooper- which aimed to highlight the impor- partners. ate with each other and major donors tance of social dialogue as an instru- to implement that strategy. ment of social policy in the accession The conference also devoted a ses- and candidate countries respectively sion to European social dialogue at There are three working tables under in the run-up to enlargement. the sectoral and company level. The the programme, the first dealing construction sector was chosen due with democratisation and human The conference highlighted the to its importance for the Balkans rights issues, the second with eco- importance of social dialogue as a region. Social partners from the sec- nomic reconstruction, cooperation vital pillar of European democracy, toral committees of the European and development, and the third with the need for the autonomy of social Construction Industry Federation security issues.(148) Under Working

(145) For a list of all the Foundation’s projects in 2005 see http://www.eurofound.eu.int/research/projects.htm. (146) The candidate countries are Turkey, Croatia and the former Yugoslav Republic of Macedonia. Countries aspiring candidate status are Albania, Bosnia- Herzegovina, Serbia and Montenegro and the Kosovo. (147) On 10 June 1999, at the EU’s initiative, the Stability Pact for South Eastern Europe was adopted in Cologne. In the founding document, more than 40 partner countries and organisations undertook to strengthen the countries of SEE in their efforts to foster peace, democracy, respect for human rights and economic prosperity in order to achieve stability in the whole region. The Stability Pact is a political declaration of commitment and a framework agreement on international cooperation to develop a shared strategy among all partners for stability and growth in south eastern Europe. The Euro- pean Commission and World Bank were appointed to coordinate the economic assistance measures for the region. They jointly chair a High-Level Steering Group in which the finance ministers of the G8 countries and the country holding the EU presidency work together with the representatives of international financial institutions and organisations and the special coordinator.

Social dialogue capacity-building initiatives in the new Member States, accession and candidate countries Chapter 4

Table II, the ‘Initiative for Social organisations, for example in Roma- the availability of independent, Cohesion’ (ISC), attempts to ensure nia and Moldova. structured and representative organi- the sustainability of the reform sations, especially on the employers’ process by underpinning economic Moreover, the participants agreed on side. The weakness of bipartite reform with improvement in the the establishment of a joint working social dialogue – particularly in the social sector and to improve the group between the Bulgarian social sectors – was strongly emphasised social systems throughout SEE partners and the Ministry of Labour throughout the conference. A plea countries. The initiative emphasizes to develop the legislation necessary was made that sectoral dialogue the need for capacity-building meas- for the establishment of specialised should be the object of a particular ures and the strengthening of institu- labour courts. The responsible minis- effort, both on the part of the public tions. Projects are underway in the ters participating in the Forum also authorities and of the social partners following areas: health, social pro- committed themselves to increased in the coming years. In line with tection, employment and labour mar- regional cooperation in view of their these detected weaknesses, the point ket policy, social dialogue, as well as common aim to improve employ- was also made that the involvement housing policy. ment policies. of social partners from the new Member States in the European (sec- The Stability Pact’s strategy and The ISC Action Plan for 2005 priori- tor) social dialogue could still be approach for its ISC was revised sub- tises the implementation of measures improved. The fragmentation of stantially during 2004.(149) Most to deal with long-term unemploy- organisations on both sides of indus- notably, it redefined its overall mis- ment, the creation of opportunities trial relations in some countries was sion statement, establishing concrete for women and young people, the seen as one of the major problems in objectives for its five areas of activi- integration of labour inspection and this regard. ty – employment, social dialogue, health and safety as principles to social protection, housing, and observe in all work environments, as It should be noted, however, that the health. The 2004 objectives in the well as the strengthening of institu- social partners are autonomous and area of social dialogue included the tionalised communication among that capacity-building continues to continued strengthening of the governments, workers and employers be a bottom-up process depending capacities of employers’ organisa- on issues of employment policy. on the will and efforts of the social tions and trade unions, including the partners themselves. The project establishment of labour courts in the reports have also shown that the vis- SEE region. Moreover, each labour 7. Conclusion ibility and use of social dialogue, as administration developed a work well as the strength of the social plan on ‘Strengthening social The results and largely positive eval- partners often depends on the will of dialogue’. uations of the various social dialogue national governments to promote capacity-building initiatives in the social dialogue practices and to In October 2005, a joint meeting new and prospective Member States implement the relevant labour between the European Trade Union described in this chapter are encour- market legislation. Confederation Balkan Forum and the aging, and the various project activi- South East European Employers’ ties have had a considerable impact Nonetheless, the specific projects Forum in Sofia discussed how to on the development of social dia- conducted by the European social strengthen social dialogue in the logue in the region. However, at the partners and other European agen- region, and in particular how to settle conference on the promotion of cies have led to concrete achieve- labour disputes. Among the key social dialogue in an enlarged ments, strengthening the position of results, outlined at the meeting, were Europe, organised by DG Employ- the social partners and increasing increased support for the introduction ment and Social Affairs in Ljubljana the use of social dialogue and of mechanisms for labour dispute set- in January 2004, important weak- collective bargaining practices tlement, the publication of a compar- nesses were still detected.(150) A first throughout the region of central and ative analysis of the treatment of conclusion was that despite progress eastern Europe. Capacity-enhancing labour disputes in selected Western an independent and voluntary social social dialogue projects remain a European countries and SEE and the dialogue still needs to find its feet in vital tool in guiding the current and setting-up of twinning programmes many of the new Member States. prospective candidate countries for cooperation between employers’ Doubts were raised in this regard on towards accession to the EU.

(148) Further information on the SP can be found at the following website: http://www.stabilitypact.org/about/default.asp (149) For further information on the ISC and Working Table II – Economic Reconstruction, Development and Cooperation, follow the link: http://www.stabilitypact.org/wt2/041117-progrep.asp (150) European Commission DG Employment and social affairs (2004), Promoting social dialogue in an enlarged Europe, Lublijana, 9-10 January 2004, Luxembourg: Office for Official publications of the European Communities.

Chapter 5 European social dialogue developments

1. Introduction Box 5.1: 20 years of European social dialogue 2005 has been a notable year for (151) European social dialogue. It has Consultation and cooperation between the social partners began in the 60s and seen the 20th anniversary of the dis- 70s within the advisory committees, the standing committee on employment cussions, negotiations and joint and the tripartite conferences on economic and social questions. However, it actions by European social partners, was in 1985, with the launch of a bipartite social dialogue on the initiative of which have been initiated by then the then President of the Commission, Jacques Delors, that the dialogue Commission President Jacques really began to evolve into a forum for negotiation on a European level. Delors in 1985. Some weeks after taking office in January that year, he When we retrace the evolution of the cross-industry social dialogue in Europe convened the presidents and secre- since then, we can see three distinct stages: taries-general of the European Trade Union Confederation (ETUC), of the During the first period (1985-1991), the bipartite activities mainly led to the European association of private adoption of resolutions, declarations and joint opinions without any binding employers UNICE and the European power. association of public employers The signing, on 31 October 1991, of an agreement between the social partners, CEEP in Val Duchesse, a castle on which was later incorporated into the Protocol on Social Policy, itself annexed the outskirts of Brussels. This round to the Maastricht Treaty (1993), marked the beginning of the second period. of talks launched a series of meet- After this, agreements negotiated by the European social partners could, if they ings between European trade union so desired, be given legal force through a decision by the Council, which would and employers representatives at dif- then be transposed into the legislation of each Member State. The agreement ferent levels, which led to the adop- of 31 October 1991 was integrated into Articles 138 and 139 of the Treaty of tion of joint opinions, binding agree- Amsterdam, and led to the implementation of three agreements through Coun- ments and other joint texts and to an cil directives (on parental leave in 1995, on part-time work in 1997 and on institutionalisation of bipartite social fixed-term contracts in 1999). dialogue at European level (see Box 5.1 and Table 5.1). The third period was inaugurated in December 2001, when the European interprofessional social partners presented a ‘joint contribution’ to the Laeken European Council. This phase is characterised by the growth in independence 1.1. Twenty years of European and autonomy of the European social dialogue. The foundations of this new social dialogue era were bolstered the following year atthe Social Dialogue Summit in Genval on 28 November 2002 when the social partners adopted their first joint multi- The 20-year history of European annual work programme for 2003-2005. social dialogue was commemorated at the Social Dialogue Summit on This more autonomous social dialogue can also be seen in the second 29 September 2005 at Palais d’Eg- method chosen by the social partners for implementing the negotiated Euro- mont in Brussels, chaired by Com- pean agreements in Article 139(2), namely ‘in accordance with the proce- mission President José Manuel Bar- dures and practices specific to management and labour and the Member roso. It was a moment of nostalgia States’. This method was chosen for the ‘autonomous’ agreements conclud- for the ‘pioneers’ of social dialogue ed on telework (2002) and work-related stress (2004). In both cases, the but also of forward-looking reflec- social partners committed to directly implementing them at a national level tion. Jacques Delors recalled that through their member organisations. They also provide for monitoring pro- European integration had never cedures, notably through implementation reports.The Commission has pro- worked without a social dimension, vided support and assistance throughout this evolution, in accordance with of which European social dialogue the role assigned to it by Article 138 of the Treaty.

(151) European social dialogue refers to the discussions, consultations, negotiations and joint actions undertaken by the social partner organisations representing the two sides of industry (management and labour) at European level. It has a clearly defined legal basis in Articles 138 and 139 of the EC Treaty. Social dialogue takes two main forms — a bipartite dialogue between the European employers and trade union organisations, and a tripartite dialogue involving interaction between the social partners and the public authorities. European social dialogue has resulted in a variety of outcomes, including the adoption of over 300 joint texts by the European social partners. Combining the values of responsibility, solidarity and participation, European social dialogue complements the national practices of social dialogue and industrial relations which exist in all Member States. Further- more, it is the essential means by which the social partners assist in the definition of European social standards, and play a vital role in the governance of the European Union.

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Table 5.1: Key events 1985-2006

Dates Key events 1985 Launch of the bipartite dialogue, initiated and supported by the Commission, traditionally called the ‘Val Duchesse process’, after the venue of the first meeting.The social partners begin to adopt non-binding joint opinions. 1991 As part of the intergovernmental conference of 1991, the social partners negotiate the agreement of 31 October which proposes reform of the Treaty’s decision-making provisions in the field of social policy.These proposals are integrated practically word for word into the Protocol on Social Policy annexed to the Maastricht Treaty. 1993 Commission Communication on the implementation of the Protocol on Social Policy [COM(1993) 600 final]. 1995 Conclusion of negotiations on parental leave, the first framework agreement concluded under Article 139 and implemented by a Council directive. 1996 Commission Communication on the development of the social dialogue at a European level [COM(1996) 448 final]. 1997 Conclusion of a second framework agreement, implemented by directive, on part-time work.The provisions of the Protocol on Social Policy are integrated into the Treaty of Amsterdam under Articles 138 and 139. 1998 The Commission Communication entitled ‘Adapting and promoting the social dialogue at a European level’ [COM(1998) 322 final] defines the criteria for the creation, composition and management of the Sectoral Dialogue Committees and marks a new departure for the sectoral social dialogue within Europe. 1999 Conclusion of the third framework agreement, implemented though a directive, on fixed-term contracts. 2000 European Council of Lisbon (23-24 March): heads of state and government draw up a strategy for the European Union’s economic and social development until 2010. Implementing the Lisbon agenda requires the active participation of the social partners. The Nice European Council (7-10 December) approves the Social Policy Agenda.This document emphasises the importance of the social dialogue in promoting competitiveness, solidarity and an appropriate balance between flexibility and security in employment. 2001 Joint contribution of the social partners to the Laeken European Council, demanding a more autonomous social dialogue. 2002 Commission Communication ‘The European Social Dialogue, a force for innovation and change’ [COM(2002) 341 final]. A new generation of texts enlarges the social partners’ role in implementation and monitoring: • in March, the social partners adopt a Framework of Actions for the lifelong development of skills and qualifications, which will be implemented through the open method of coordination; • in July, they conclude an agreement on teleworking, the first ‘autonomous’ Article 139 framework agreement, which they will implement and monitor themselves. To develop their autonomous social dialogue, the social partners adopt their first joint multi-annual work programme (2003- 2005) during the Social Dialogue Summit in Genval (28 November). 2003 First Tripartite Social Summit for Growth and Employment (20 March), with the Council Presidency, the President of the Commission and top-level representatives from the social partners (on the basis of the Council’s decision of 6 March 2003). 2004 Commission Communication ‘Partnership for change in an enlarged Europe – Enhancing the role of European Social Dialogue’ [COM(2004) 557 final]. Adoption of the second autonomous framework agreement on work-related stress. 2005 Mid-term review of the Lisbon strategy:The European Council (22-23 March) reiterates the importance of the social partners’ active involvement in order to achieve the strategy’s objectives on growth and employment. Conclusion of the Framework of Actions on gender equality, identifying work priorities for the national social partners. Social Dialogue Summit: 20 years of European social dialogue (29 September). 2006 First European sectoral social dialogue conference (13 March). Presentation of the second joint multi-annual work programme (2006-2008) at the Tripartite Social Summit (23 March). First multi-sectoral agreement signed on crystalline silica (25 April).

was a crucial component. European agreements and frameworks of commitment to tackle existing and and national social partner represen- action. coming challenges for the European tatives recollected the considerable labour markets through a constructive achievements over the past 20 years: President Barroso and Commissioner dialogue followed by concrete action. the historical agreement of 31 Octo- Vladimír Špidla shared their thoughts They also officially launched their dis- ber 1991, incorporated into the EC on the fields that social dialogue cussions on the next multi-annual Treaty; the framework agreements of should cover over the coming years, work programme for European social the second half of the 1990s, trans- namely demographic change, restruc- dialogue (2006-2008). formed into EU directives, the multi- turing and better integration on the annual work programme for 2003- labour market. The leaders of the Sectoral social dialogue developed at 2005 and the recent autonomous European social partners renewed their a later stage than its cross-industry

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counterpart, but has risen in impor- are attached to their dialogue as a under former Dutch Prime Minister tance in the past few years. This means of fixing working and pay Kok in autumn 2004, the Commis- development was honoured by the conditions, of settling workplace sion proposed a comprehensive mid- first European sectoral social dia- issues, of ensuring adaptability of term review of the Lisbon strategy in logue conference which took place on workers and of improving the situa- January 2005,(153) based on two key 13 March 2006 in Brussels, bringing tion on the labour market. More gen- principles: refocusing on the priori- together trade unions and employer erally, social dialogue is thought to ties of growth and jobs through a representatives from all sectors repre- guarantee a fair balance between the considerable reduction of objectives sented in the sectoral social dialogue interest of workers and companies. and targets; enhancing ownership of committees with the participation of the Lisbon agenda through improved Commissioner Špidla. Three main In response to what should be done governance, streamlined processes themes were debated: anticipating in a new partnership of the EU and and stronger involvement of all stake- and managing change; strengthening Member States, the Commission holders. This aim implied a strength- social dialogue in an enlarged communication recommends inter ened cooperation with social partners Europe; and answers to demographic alia a ‘renewal of social dialogue at at all levels. The report called for a challenges. The conference highlight- all levels’. Social dialogue should ‘renewed partnership between the ed the increasingly important role of contribute to develop a common Member States and the Union – with the sectoral social partners in address- understanding of the challenges the full involvement of the social ing issues such as better working con- faced and mobilise support for the partners’. This approach was ditions, vocational training and glob- solutions proposed. The paper also endorsed by the Spring European alisation, central to the EU’s Growth calls on social partners to ‘better Council of March 2005 and followed and Jobs strategy. articulate what they do at each by the adoption of the Integrated level’, i.e. improve their capacities to Guidelines on Growth and Jobs implement European social dialogue (2005-2008)(154) and the Community 1.2. Social dialogue – results at national level and increase Lisbon Programme.(155) a European value ownership of the Lisbon agenda by national social partner organisations. European politics in the second half 2.1. Declaration on mid-term of 2005 was marked by the constitu- The social model debate thus also review of the Lisbon tional crisis in Europe and efforts by strengthened the European approach strategy the UK Council presidency to create of governance and partnership. Dis- consensus among European leaders cussions and negotiations by The European social partners at on the modernisation of the Euro- employer and trade union organisa- cross-industry level (ETUC, pean social model and new forms of tions are widely considered to be UNICE/UEAPME, CEEP) support- social justice in the face of globalisa- crucial, on the one hand, to make ed this refocusing exercise and the tion and demographic change. In the Europe more competitive and, on the new emphasis placed on governance run-up to the informal summit at other hand, to guarantee a ‘social and partnership. Their joint declara- Hampton Court, near London, the dimension’ to Europe in order recon- tion on the mid-term review of the European Commission issued a con- nect it with its workers and citizens. Lisbon strategy of March 2005 states tribution on ‘European values in the that ‘Europe’s weakness in terms of globalised world,(152) well received by growth and employment needs to be Member State governments and the 2. Contributing to the addressed’. This can be only be done press. by ‘improving our competitiveness in Lisbon objectives high added value products and serv- As one of the shared values under- through tripartite ices’ though innovation, technology pinning all European social models, and productivity. The declaration the paper names ‘a strong tradition consultation also states that ‘Europe cannot com- of social dialogue and partnership pete with low wage countries for between governments, industry and 2005 also saw the relaunch of the labour intensive products’. trade unions – even if the detailed Lisbon strategy in a more focussed mechanisms vary considerably and actor-driven form. Following the The trade union side insisted, howev- between Member States’. Both work- rather negative assessment of er, that this refocusing on growth and ers and companies all over Europe progress by the high-level group jobs could not mean that social poli-

(152) Commission Communication of 20 October 2005 (COM(2005) 525 final). (153) Commission Communication ‘Working together for growth and jobs – A new start for the Lisbon Strategy’ of 2 February 2005 (COM(2005) 24 final). (154) http://ec.europa.eu/growthandjobs/pdf/integrated_guidelines_en.pdf. (155) Commission Communication ‘Common Actions for Growth and Employment: The Community Lisbon Programme’ of 20 July 2006 (COM(2005) 330 final).

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cy would be relegated to the second both in the implementation and the two succeeding Council presidencies). row. The social partners therefore assessment of results. Beyond the regular Tripartite Social developed in their declaration a joint Summit meetings ahead of the Spring understanding of a number of key European Council in March each year, elements of the concept of competi- 2.2. Tripartite Social Summit all EU presidencies in the second tiveness: innovation, employability, for Growth and Employ- semesters since 2003 (Italy, the efficient social protection systems, a ment Netherlands, United Kingdom, Fin- supportive public environment and land) have decided to convoke extraor- basic principles for environmental Since its formal establishment in 2003, dinary meetings in autumn on specific and macroeconomic policies. the Tripartite Social Summit for issues (see Table 5.2). Growth and Employment has proved a The declaration further supported useful tool for the Commission and the The social partners have valued the stepping up efforts on improving Council Presidency to evaluate opportunity to address Europe’s lead- governance in the Lisbon process progress and discuss particular aspects ers ahead of important decisions in with a view to bridging the delivery of the Lisbon strategy with EU and European politics and to make com- gap. It also stressed the importance national social partners as well as panies´ and workers´ concerns on of involving social partner both at heads of government and employment current EU dossiers heard. They also national and at the European level, ministers of the troika (current and the regularly informed the Commission

Table 5.2: Panorama of Tripartite Social Summits since 2003

Date Council Presidency Event Themes 20 March 2003 Greece Tripartite Social Summit Presentation by the social partners of the first follow-up for Growth and report of the framework of actions for the lifelong develop- Employment ment of competencies and qualifications 11 December 2003 Italy Extraordinary Tripartite Discussion of the report of the Employment Taskforce chaired Social Summit by Wim Kok (‘Jobs, jobs, jobs’) 25 March 2004 Ireland Tripartite Social Summit Presentation of the second follow-up report on lifelong learn- for Growth and ing and of a report on national social partners’ actions on Employment employment 5 November 2004 the Netherlands Extraordinary Tripartite Discussion of the report from the High Level Group on the Social Summit Lisbon strategy chaired by Wim Kok (‘Facing the challenge’) 22 March 2005 Luxembourg Tripartite Social Summit Discussion on the mid-term review of the Lisbon strategy for Growth and Employment Social partners’ contributions: • Joint declaration on the on the mid-term review of the Lisbon strategy. • Joint contribution on the European Youth Initiative • Presentation of the framework of actions on Gender Equality • Presentation of the third follow-up report on lifelong learning and of the second report on employment. 24 October 2005 United Kingdom Informal Tripartite Social Debate on the European economic and social model in the Summit (London) face of globalisation – preparation of the Hampton Court informal summit. 23 March 2006 Austria Tripartite Social Summit Discussion on the National Reform Programmes and the for Growth and Annual Progress Report (Lisbon Strategy) and related dossiers Employment Social partners’ contributions: • Work programme of the European social partners 2006-2008 • Evaluation report of the Framework of actions for the lifelong development of competencies and qualifications

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and Council Presidents of new joint term strategies adopted earlier this year The Commission proposed to hold initiatives and progress made in their including the involvement of the social an extraordinary tripartite social autonomous social dialogue. Euro- partners. In the case of the Nether- summit in autumn 2006, an initiative pean heads of government have taken lands, Sweden and Denmark, separate taken up by the forthcoming Finnish the habit of regular consultation of documents detailing the social part- presidency. The aim of this meeting social partners at EU level – a tradi- ners’ contributions have been annexed will be to identify concrete steps to tion shared by many Member States – to the NRP. In Luxembourg a truly tri- make progress with regard to the thereby enhancing the acceptance of partite effort has been made, based on actions proposed in the annual European Council decisions by cru- the tradition in this country. The progress report and in particular to cial stakeholders. importance of a partnership approach, deal with the impact of globalisation reflected by more extensive consulta- and demographic change on tion of the social partners, is also evi- Europe’s labour markets. The Spring 2.3. Involvement of social dent in the case of Belgium, Cyprus, European Council of March 2006 partners at national level Estonia, Spain, Latvia, Lithuania, again insisted in its conclusions(157) Hungary and Malta, although it is not that an ‘effective renewed partner- As proposed by the Commission and always clear how substantial their con- ship for jobs and growth will require agreed by the European Council in tribution has been at this stage and will an active contribution and responsi- March 2005, the 25 EU Member be in the implementation phase. In a bility of the social partners’. States drew up their National number of Member States, particularly Reform Programmes (NRP) in the new ones, the tripartite bodies autumn 2005, outlining their three- which exist and which could have 2.5. Partnership in year strategy on employment, micro- formed the basis for a partnership the implementation of economic and macroeconomic policy, approach, have apparently not been European cohesion policy on the basis of the integrated guide- involved or only in a limited way. In lines adopted at European level. In France, social partners have been con- The partnership principle is funda- doing so, they were expected to sulted only after the NRP had been mental to the implementation of closely involve the national social submitted to the Commission. European cohesion policy. It implies partner in recognition of the key con- close cooperation between the Com- tribution they can make to the objec- mission, the authorities at national, tive of growth and jobs. 2.4. Annual progress report regional and local level in the Mem- ber States as well as social partners The national reform programmes for In its annual progress report,(156) the and other non-governmental organi- the Lisbon strategy indicated that in Commission has pointed out that it sations in the different stages of the practically all Member States, the expects that the involvement of the implementation cycle of the Structur- social partners have at least been social partners will be more substantial al Funds. The Regulations governing informed and in most cases consult- and visible in the implementation the 2000 – 2006 as well as the 2007 – ed in some manner in the process, phase of the strategy. Stronger social 2013 programming periods call for although to varying degrees. How- partnership was also considered cru- ‘close cooperation’ in the prepara- ever, the NRP are, in principle, cial by the Employment Committee in tion, implementation, monitoring and government papers. its report to the Council. In the field of evaluation, although it is for the adaptability of enterprises and work- Member States to establish national Sometimes, as in Ireland, where the ers, including labour mobility, compre- rules or practice for their inclusion. partnership approach is very promi- hensive policy strategies have not yet Annual consultations on cohesion nent, the major political document is been systematically developed in the policy take place between the Euro- the National Partnership Agreement, national reform programmes. In this pean-level economic and social part- and the NRP is derived from this. The context, continuing strong inputs from ners and the Commission. Finnish NRP has a large consensus social partners are needed and the based on the tripartite incomes policy Commission will develop, together Various evaluations on the impact of agreement. The Slovak and Slovenian with the Member States, a set of com- partnership in the Structural Funds NRP are based on national medium- monly agreed principles on flexicurity. have drawn attention to the added

(156) Commission Communication ‘Time to move up a gear – The new partnership for growth and jobs’ of 25 January 2006 (COM(2006)30 final, Part 1). (157) Council document 7765/06.

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value that partnership can bring to the with technological change, globali- ties, both at Member State and EU implementation of cohesion policy sation and ageing. Flexicurity is level. However social partners can through enhanced legitimacy, greater defined as a set of policies that make a serious contribution and they coordination, increased institutional attempts to simultaneously enhance have done so at various occasions in capacity of all actors, transparency, the flexibility of labour markets and the past: through the cross-industry and better absorption of funds through employment security. The notion has agreements on part-time work (1997) improved selection of projects and been highlighted in the context of and on fixed-term work (1999), dissemination of information to the remarkable performance of the through sectoral agreements on potential project promoters. labour markets in some Member working time (maritime transport, States, in particular in Nordic coun- civil aviation) and non-binding In the implementation of European tries and the Netherlands, which guidelines and recommendations. Social Fund (ESF), in particular, the have introduced reforms that can be social partners are important direct referred to as flexicurity models. 3.1.1. Modernisation of actors on the ground. Therefore, the employment relations: promotion of partnerships, pacts and It is considered as a modern way of telework initiatives through networking of rel- defining employment and social evant stakeholders, such as the social policy, guaranteeing a win-win situ- Telework is considered as a possible partners, is one of the priorities in the ation for employers and workers. tool to bring necessary flexibility new ESF-Regulation. As social part- Thereby flexibility, encompassing into employment relations, which ners in many Convergence Regions external (i.e. recruitment and dis- can be in the shared interest of the still lack capacity (see Chapter 4 in missal) and internal aspects (i.e. company and the worker. However, it this report) an appropriate amount of work organisation, working time) as has to be introduced in a way that is the ESF resources shall be allocated well as wage aspects, is beneficial not detrimental to workers’ rights to capacity building measures of not only for the employer, but also and employment security. Following social partners in those regions. the worker. On the other hand, secu- this approach, ETUC (along with the rity, in the form of job security, Eurocadres/CEC liaison committee), employability security or income UNICE/UEAPME and CEEP signed 3. Policy security, can also be in the interest of a European framework agreement on developments in the employer. telework on 16 July 2002. bipartite social Flexicurity can be promoted through This agreement was their first joint efforts in three related areas:(158) ‘autonomous’ agreement, i.e. to be dialogue implemented by the member organisa- 4 labour laws and collective agree- tions of the signatory parties at nation- In their bipartite social dialogue at ments allowing for sufficiently al level. Article 139(2), which the European level, social partners, both flexible work arrangements and agreement refers to, establishes the cross-industry and sectoral develop reducing labour market segmenta- possibility to implement a social part- autonomous initiatives that contribute tion und undeclared work; ner agreement ‘in accordance with the to the achievement of the Lisbon procedures and practices specific to objectives in a wide range of areas: 4 reliable and responsive lifelong management and labour and the Mem- flexicurity, restructuring demographic learning systems and active labour ber States’. The implementation change and quality of work. market policies; should be carried out within three years after the date of signature, i.e. by 4 sustainable social security sys- July 2005. The agreement foresees that 3.1. Flexicurity tems combining the need to facili- a joint report on the actions of imple- tate mobility and labour market mentation taken will be prepared in the The concept of ‘flexicurity’ has participation with the provision of fourth year by an ad hoc working gained prominence during the past adequate income support. group, under the responsibility of the few years, reflecting the fact that it Social Dialogue Committee.(159) This can provide a response to the accel- Introducing such reforms is primarily report drafted by the signatory parties eration of economic change linked the responsibility of public authori- is due in July 2006.

(158) These aspects are highlighted in the Annual Progress Report of the European Commission on the Lisbon Strategy: ‘Time to move up a gear – The new partnership for growth and jobs’ of 25 January 2006 (COM(2006) 30 final, Part 1). (159) The Social Dialogue Committee, established in 1992, is the main body of cross-industry bipartite social dialogue at European level. It meets 3-4 times a year, allowing both sides of industry (employers and trade unions) to exchange views, formally adopt negotiated texts and plan their joint activities. It is composed of 60 members (30 per delegation) both from the European secretariats and the national social partner organisations.

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What can already be said at this partners’ permanent institution. In methods to monitor and follow-up stage is that implementation initia- Ireland, social partners have updated the implementation of future Euro- tives in various Member States have their existing code of practice in the pean framework agreements and been ongoing over the past few light of the EU-level text. ensure tangible impact on the years, including in some new Mem- ground. ber States, although their social part- In Portugal and Hungary, the legisla- ner organisations, members of the tor has taken up the issue of telework 3.1.2. Lifelong learning and European federations, had not joined in the context of recent reforms of training the European social dialogue by the the respective Labour Codes. It has time of signature. The pace and to be verified to what extent these Efficient and responsive vocational extent of efforts has, however, varied legislative changes have taken into education and training and lifelong considerably in different countries, account the principles contained in learning systems are part of the con- depending on the motivation of the European social partner agree- cept of flexicurity. They are a means actors involved as well as the tradi- ment. of enhancing workers’ and compa- tions and the current context of nies’ flexibility, enabling them to industrial relations. Implementation of the telework quickly adapt to new technologies agreement is, however, not only tak- and changes in demand on global Also tools employed differ signifi- ing place at the national level. The markets. On the other hand, they pro- cantly in their nature and scope: In European social dialogue commit- vide some security to workers as they several countries, social partners tees in the electricity and the local ensure their employability and facili- chose the classic option of collective and regional government sectors tate occupational mobility. This posi- bargaining. Notably in Belgium, have adopted joint statements on tive impact of training and lifelong France, Italy, Luxembourg and Fin- telework, referring to the cross- learning is recognised by the social land, national employer and worker industry agreement and calling upon partners who are involved in the organisations have conducted negoti- their affiliated member organisations organisation of vocational training in ations on separate agreements to to contribute to the implementation the Member States. At European transpose the European text into of the agreement at national level. level they have launched a number of their national context. In other coun- initiatives to step up efforts by their tries (e.g. Spain), the principles set The social partners’ implementation national member federations in the by the telework agreement have been report will provide more comprehen- field of lifelong learning. incorporated in framework agree- sive information about the state of ments covering a range of issues. implementation. It will be based on Evaluation of the cross-industry Due to national traditions, telework the information provided by the Framework of actions on compe- has been dealt with in Austria national member federations on the tence development through sector negotiations, while content of their measures, the the Finnish deal gives guidelines for process followed, the main aspects At cross-industry level, ETUC, sectoral collective agreements to be taken into consideration while trans- UNICE/UEAPME and CEEP adopt- concluded on this issue. posing the European text in the ed in 2002 a ‘Framework of actions national situation, the reasons for the for the lifelong development of com- Social partners in countries with choice of a certain instrument and petence of competencies and qualifi- little tradition of national social dia- the impact at national, sector and cations’. It identified four priorities logue at central level have opted for company level. This report will be and called upon their member feder- different approaches. The UK social followed by in-depth analysis by the ations to implement them: partners have issued, together with European Commission on the state the government department, a of implementation and the impact on 4 identification and anticipation of brochure giving guidance to employ- the ground. competencies and qualifications ers and workers introducing tele- needs; work. It is intended to explain how Since the autonomous agreement on the principles of the European agree- telework is the first in its kind, its 4 recognition and validation of com- ment might best operate in the implementation is a first-time expe- petencies and qualifications; context of the UK labour market. In rience and is being followed closely the Netherlands trade unions and by stakeholders and researchers. In 4 information, support and guidance; employer organisations have opted the light of the results of this exer- for recommendations issued by the cise, European social partners will 4 mobilisation of resources. Labour Foundation, the Dutch social have to develop efficient working

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Table 5.3: Comparison between a framework agreement and a framework of actions

Text Framework agreement on telework, Framework of actions for the lifelong 16 July 2002 development of competencies and qualifications, 28 February 2002 Follow-up ‘In the context of Article 139 of the Treaty, this ‘The member organisations of UNICE/UEAPME, CEEP and provisions European framework agreement shall be implemented ETUC will promote this framework in Member States at all by the members of UNICE/UEAPME, CEEP and ETUC appropriate levels taking account of national practices. (and the liaison committee EUROCADRES/CEC) in Meetings can be organised at national level for presentation accordance with the procedures and practices specific of this document. Given the interest of the matter under to management and labour in the Member States. consideration, the social partners also decide to transmit This implementation will be carried out within three this document to all interested players at European and years after the date of signature of this agreement. national levels.The social partners will draw up an annual Member organisations will report on the implementation report on the national actions carried out on the four pri- of this agreement to an ad hoc group set up by orities identified.After three annual reports, the social part- the signatory parties, under the responsibility of ners will evaluate the impact on both companies and work- the social dialogue committee.This ad hoc group will ers.This evaluation can lead to an update of the priorities prepare a joint report on the actions of implementation identified.The ad hoc group on Education and Training will taken.This report will be prepared within four years after be entrusted with this evaluation, which will be presented the date of signature of this agreement.’ in March 2006.’ Follow-up Implementation of the agreement by national Promotion and initiatives by national social partners dur- given social partners by July 2005 ing 2002-2005 Monitoring • Joint implementation report by European social • Three annual follow-up reports by social partners (with partners, based on national reports, due by July 2006 national fiches), March 2003-2005 • Upon expiry of the implementation period, monitoring • Evaluation report by social partners, March 2006 of the agreement by the Commission to assess the extent to which it has contributed to the achievement of the Community objectives

The framework of action is a of the framework of action. ing provisions to foster validation in process-oriented text, inspired by the Although it does not offer a quanti- companies, sectoral initiatives to Open Method of Coordination. The tative analysis, the report states develop occupational priorities identified at European that the text has delivered ‘a clear standards, further development of level are promoted in Member States message and a sense of focus to competence-based qualifications at all appropriate levels by the national social partners in most systems, initiatives to help low- national social partner organisations. countries’, as well as an impetus skilled workers, unemployed, older Annual reports are drawn up on the for change. workers and immigrants to step into national actions carried out to fol- the qualifications system and efforts low-up on the European text. Three The report first provides an to enhance the transparency of those annual follow-up reports have been overview of the various actions that systems. In the field of information, issued (2003, 2004, and 2005), pro- have been implemented in 20 Mem- support and guidance (priority 3), viding an inventory of social partner ber States and Norway. It shows that social partner actions included initiatives in national fiches of the issue of competence develop- awareness raising on training oppor- almost all EU Member States. ment has been intensively debated tunities for workers, consultancy by social partners and that a variety services for companies, and devel- The framework of action required of tools has been used for actions in opment and review of guidance that after three annual reports, the all four priority areas: On identifica- facilities that offer access to tailored social partners would evaluate the tion and anticipation of needs (prior- information. Concerning the mobili- impact on both companies and ity 1), social partners reported joint sation of resources (priority 4), workers. This evaluation, to be pre- studies and surveys on companies’ national social partners developed sented by March 2006, could lead needs, monitoring of trends, action approaches of shared responsibility to an update of the priorities iden- plans at sectoral levels and develop- and co-investment, notably through tified. The evaluation report, ing employers-led sector skills bod- individual learning accounts or adopted by the Social Dialogue ies. As regards recognition and vali- learning vouchers, the pooling of Committee in January 2006, gives dation (priority 2), the report men- resources and the development of a positive assessment of the impact tions collective agreements includ- bipartite or tripartite training funds.

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In total more than 350 examples of ments to improve training systems ence centres to establish the trans- initiatives have been reported in the and provision in a way that is adapt- parency of diplomas and certificates (non-exhaustive) national fiches of ed to their field of economic activity. exist or are being developed in the three annual reports, of which Therefore many sectoral social dia- approximately half of the ‘old’ EU- over 70 represent good practices by logue committees have launched 15 Member States. In terms of individual companies. The frame- activities of their own. financing continued training, several work of actions has both supported countries – such as France, the pre-existent actions and helped to Following the agreement signed on Netherlands, Belgium, Italy and bring about new initiatives. In the vocational training in agriculture in Spain – have established mutual new Member States, it has encour- December 2002 by the European funds into which enterprises pay a aged social partners to get involved social partners, the agricultural certain proportion of the payroll. in national discussions on the reform employers’ organisation (GEOPA) of lifelong learning systems. In sev- organised a seminar in September Social partners in the Horeca sector eral instances, it has led to the cre- 2004 to carry out a first assessment (EFFAT and HOTREC) adopted in ation or the reform of tripartite fora of the implementation of the agree- June 2004 specific guidelines for on education and training as well as ment. A questionnaire had been sent training and development in their (re)launched social dialogue on life- to GEOPA member organisations in sector, with particular emphasis on long learning. The report recognises, the ‘old’ EU-15 Member States. The the needs of SMEs. These guidelines, however, that the number of innova- responses in the form of summary based on a number of best practice tive solutions for mobilising notes for each country outline the examples, cover skills needs, training resources (priority 4) was limited developments in four articles of the plans, motivation, career paths, men- and that more has to be done to original agreement – organisation of tor models, recognition of qualifica- spread tailored information and raise vocational training, skills assess- tions and partnership. motivation of both workers and com- ment, validation of vocational skills panies for competence development and transparency of diplomas. They In March 2006, the sectoral social (priority 3). also summarise the financing of con- partners in the road transport sector tinuing vocational training. (ETF and IRU) signed joint recom- The evaluation report affirms that mendations on employment and the follow-up and reporting work has The report highlights the differences training in logistics, which is a con- lead to mutual learning across bor- and similarities across the Member stantly evolving sector. These recom- ders and has enhanced the perception States. It emphasises that in five mendations build on the results of a of competence development as a countries – Denmark, Sweden, Fin- European project on logistics jobs shared interest for employers and land, the UK and Austria – the Euro- and aim at promoting specific workers. It has enabled European pean agreement has led to negotia- actions in logistics in accordance social partners to contribute in sub- tions on the possibility of transposing with the four priorities identified in stance to the European cooperation the agreement to the national context. the cross-industry framework of process on vocational training In terms of organisation of training, actions (see p.97). (‘Copenhagen process’). the social partners are involved to varying degrees. In defining training In the chemical industry, social The report finally states that the four policy, the social partners are partners (ECEG and EMCEF) adopt- priorities identified remain valid, but involved to some extent in all coun- ed in September 2004 a joint decla- does not give indications as to how tries except Greece. In almost all ration that underlined the lack of European social partners will contin- countries, the social partners are skills facing the chemical industry ue their work on education and train- strongly involved in the implementa- and stated the mutual interest of ing. This will be decided in the tion of training policy when training employers and workers investing in framework of their new work pro- takes place in training centres. them. A working party was set up to gramme for 2006-2008, where life- develop an in-depth analysis of the long learning features prominently. The report notes that skills assess- situation relating to skills, qualifica- ments, as advocated by the agree- tions and lifelong-learning and to Sector initiatives on lifelong learn- ment, have not yet become widely exchange good practices of the dif- ing and training implemented or understood outside ferent national systems. France, although negotiations were Vocational training and lifelong planned or had started in Belgium, 3.1.3. Active inclusion of learning is not only an important the UK and Sweden. All Member the people furthest from topic for the cross-industry social States have established or planned the labour market dialogue, but increasingly for the schemes for the validation of voca- sectoral social dialogue. Sector tional skills with varying degrees of Most Member States have put in social partners can develop instru- sophistication, while national refer- place comprehensive social assistance

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policies and activation policies to aspects concerning activation and tance to their new member organisa- bring excluded people back to the access to the labour market could be tions. In their second joint work pro- labour market, but there is still a subject of negotiation between social gramme for 2006-2008, ETUC, sizeable hard core of people with lit- partners. After the first stage consul- CEEP and UNICE/UEAPME agreed tle prospect of finding a job who, for tation and the analysis of the respons- to complete the national studies, that reason, remain at risk of falling es, the Commission will formulate its enlarge them to cover the old EU-15 into poverty and social exclusion. recommendations in 2007 on the Member States and on that basis pro- The main challenge is to ensure that basis of which it may proceed to the mote and assess the ‘orientations for social protection policies effectively second phase of the consultation reference’. contribute to mobilising people who process. are capable of working while achiev- 3.2.1. Sector initiatives ing the wider objective of providing a decent living standard to those who 3.2. Anticipation of change Several economic sectors in Europe are, and will remain, outside the and restructuring are facing restructuring due to the labour market. globalisation of markets, increased Flexicurity as a guiding concept for competition, deregulation and liber- In February 2006 the Commission employment and social policy is par- alisation pressures. The second- has adopted a communication ticularly relevant in a context of con- phase consultation called upon sec- ‘Concerning a consultation on stant economic change due to global toral social dialogue committees to action at EU level to promote the markets and technological progress. get more involved on restructuring active inclusion of the people fur- Anticipating and managing change issues, to develop ways of anticipat- thest from the labour market’ and restructuring of industrial sectors ing structural change and to ensure a (COM(2006) 44 final). This com- or companies has become vital for monitoring and alert function at munication launched a public con- public authorities and social partners. regional and sector level. sultation based on article 138 of the Only by adapting quickly and effi- Treaty on possible guidelines for ciently to economic change can In response to the challenges of action at EU-level. ‘Active inclu- European enterprises remain compet- restructuring, the ship-building sion’ has been defined as a compre- itive and workers remain employable. social partners jointly developed a hensive policy mix combining three ‘tool box’ containing information elements, namely: (i) a link to the In 2005, the Commission called about legislation and best practice labour market through job opportu- upon the European social partners to across Europe to help deal with cycli- nities or vocational training; (ii) become more involved in the ways cal fluctuations in demand. The tool income support at a level that is and means of anticipating and man- box project aims to increase compa- sufficient for people to have a dig- aging restructuring.(160) The second- nies’ capacity to react flexibly to nified life; and (iii) better access to phase consultation (Article 138 EC changing market conditions while services that may help some indi- Treaty) encouraged them to adopt retaining employment and a highly viduals and their families in enter- mechanisms to apply and monitor skilled workforce. Carried out in col- ing mainstream society, supporting their ‘orientations for reference’ in laboration with the European Moni- their re-insertion into employment this field.(161) These best-practice toring Centre for Change (EMCC) of (through, for instance, counselling, guidelines had been drawn up by the the Dublin Foundation, the project healthcare, childcare, lifelong cross-industry social partners on the involves a survey of 11 countries to learning, ICT training, psychologi- basis of case studies, but did not establish a comprehensive list of cal and social rehabilitation). foresee any implementation or follow- existing instruments, their legal basis up activities. and financial support as well as their The Commission invited social part- effectiveness. In particular it aims to ners, public authorities and other civil The social partners reacted to the examine instruments in the areas of society stakeholders to give their consultation with individual opin- working time, work organisation, opinions on possible directions for ions, but did not present a joint such as secondment schemes and future action at European level in sup- approach. However, they continued financial measures, such as perform- port of national policies to promote their joint studies on economic and ance related pay. The intention is to more effective integration of people social change in the 10 new Member provide a point of reference to the excluded from the labour market, States in the framework of their ‘inte- social partners and to facilitate dis- including the issue as to whether the grated programme’ of technical assis- cussions on the most suitable tools.

(160) Communication from the Commission ‘Restructuring and employment’ of 31 March 2005 (COM(2005) 120 final), constituting the second phase of consultation of the European social partners. (161) ‘Orientations for reference in managing change and its social consequences’, adopted by the European cross industry social partners (UNICE/UEAPME, ETUC, CEEP) on 16 October 2003.

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In addition to the general challenges involve the regional collaboration In this text, both trade union and of globalisation, the sugar industry and/or integration of national service employers acknowledge the ‘positive faces very significant restructuring providers, such initiatives impinge role these bodies can play in improv- in the face of the reform of the EU on the future of the service providers ing the information flow between sugar market entering into force in and should be launched through a workers and management, allowing 2006. With a view to conform the ‘bottom-up approach’. for consultation of workers on rele- EU to WTO commitments, sugar vant cross-border issues affecting the production will ultimately have to be A joint statement, of September group, developing a corporate cul- reduced by 35%. 2004, announced the development of ture in transnational groups and an action plan addressing operational gaining acceptance for necessary The social partners in the sector have and technical issues, consultation change’. The text, however, also responded to the challenges posed by procedures, institutional and cultural referred to the cost and complexity restructuring in a number of ways. issues (to cultivate a blame-free inci- of organising transnational informa- The 2003 Code of Conduct devel- dent reporting mentality). The social tion and consultation in EWC. oped by the European social partners partners’ reports on these four issues, deals with restructuring, encourag- presented in November 2005, devel- The ‘lessons learned’ further name a ing the affiliate members to go oped joint solutions to the challenges number of necessary conditions for beyond national and European legis- facing air traffic management in effective functioning of EWC: lation on information and consulta- Europe. They stressed that the air tion and recommending measures to navigation services providers (the 4 the establishment of a climate of improve the employability of work- employers) have to play a central role mutual trust and of informal rela- ers. Annual reports on progress have in every stage of the development of tions between management and been published each February. the functional airspace blocks and worker representatives in the that staff need to be consulted at EWC, which can be encouraged In December 2005, the social part- every stage to respect the principles by openness on the side of man- ners developed an electronic practi- of the bottom-up approach. agement to release information at cal guide to accessing structural an early stage, and a constructive funds for the sugar industry. It fea- 3.2.2. European Works Councils attitude in the search for solutions tures an interactive facility enabling on the workers’ side; swift access to the applicable funds European works councils (EWC)(162) depending on the location of each have an essential role to play in antic- 4 the ability to understand complex individual factory. The work pro- ipating and managing restructuring issues discussed in the EWC and gramme of the sectoral social dia- operations in multinational companies the quality of communication; this logue committee of the sugar indus- and groups.(163) The abovementioned can be promoted through training try for 2006 continues to place an second-phase consultation on restruc- action on language and content emphasis on the social aspects of turing therefore also covered EWC issues as well as assistance by restructuring. and called upon social partners to pro- experts on the workers’ side; mote best practice in the way that Following the adoption in March EWC operate, with a view to making 4 the reconciliation of different 2004 of the Single European Sky, an them more effective, especially as cultures and practices in industri- ambitious Commission initiative to regards their role as agents for change. al relations, which can be over- reform the architecture of European come notably by assigning an air traffic control, the air traffic man- In 2004, after the first-stage consulta- important role to European sectoral agement social partners (CANSO tion on EWC, the cross-industry federations. and ETF) in the framework of the social partners decided to discuss the sectoral social dialogue committee in functioning of EWC in the enlarged The social partners’ joint text also civil aviation jointly organised a European Union on the basis of a num- points to the challenges ahead for conference on functional airspace ber of company cases studies. From EWC, namely the difficulty to find blocks (which aim at increasing the this experience, UNICE/UEAPME, worker representatives in the new size of the airspace in order to make ETUC and CEEP drew conclusions in Member States and the need to the provision of air traffic services a text entitled ‘Lessons learned on organise meaningful information more efficient, whilst maintaining a European Works Councils’, adopted in and consultation without creating high level of safety). As these blocks April 2005. undue delays and uncertainties and

(162) European works councils have been established by Directive 94/45/EC. (163) See also section 2.2.1 in Chapter 6.

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while at the same time respecting Social partners at all levels are con- the situation of young people in edu- confidentiality requirements. The cerned with the challenges raised by cation, training and their integration text finally recognises that the good demographic ageing. They have into the labour market. functioning is a learning process in stepped up their efforts to increase constant evolution and requires entry into the labour market for The commerce sector social partners efforts from both sides to overcome young people, make it attractive for (UNI-Europa Commerce and Euro- possible misunderstandings and ten- older workers to stay employed for Commerce) supported the European sions. In a similar way to the ‘orien- longer and to achieve a better worklife Youth Pact and informed the Com- tations for reference’, the text does balance. The new work programme mission about their intention to start not include any provisions for fol- of the European cross-industry discussions and negotiations on the low-up or monitoring, but the social social partners clearly recognises the integration of young people in the partners have committed to promote urgency to develop actions in this retail trade labour market. The com- their ‘lessons learned on EWC’ field. merce social dialogue committee had among their member federations. already adopted, in 2002, voluntary 3.3.1. European Youth Pact and guidelines supporting age diversity in At sectoral level, synergies have Active Ageing their sector of activity. These guide- been created in several cases lines have been followed up through between sectoral social dialogue In March 2005, the European Coun- concrete actions by certain national committees and European works cil decided to adopt the European social partner organisations as well as councils of large companies or Youth Pact(165) with a view to improv- individual companies. groups active in that particular sector ing the education, training, mobility, of the economy. Results of the social vocational integration and social The European social partners in the dialogue in commerce have thus inclusion of young Europeans. The construction, Horeca (hotel, restau- been followed-up by EWC of multi- aim of the EU leaders was to ensure rant, café) and cleaning industries national retail companies. the overall consistency of initiatives also welcomed the European Youth in these areas and to define common Pact, stating that the recruitment of lines of action. qualified young people is vital for 3.3. Demographic change the sustainability of their sectors. The social partners at cross-indus- They announce activities to attract Ageing is one of the most urgent try level and in several sectors and retain young workers by improv- challenges facing Europe in the broadly welcomed this initiative. In a ing the image of their sector. This coming years. The Commission’s joint declaration, ETUC, CEEP and shall be achieved through informa- Green Paper of March 2005(164) has UNICE/UEAPME recalled their tion and awareness-raising on job pointed to the basic demographic achievements and commitments on opportunities, promotion of educa- trends that can be observed in all integrating young people into the tion and training and the improve- Member States: low birth rates, labour market and called for a ‘truly ment of working conditions (e.g. increases in longevity and the over- intergenerational approach’, taking more day-time work in the cleaning all ageing of the population. In into consideration actions for youth industry). terms of impact on the labour mar- and active ageing strategies at the ket, this implies the urgent need to same time. The questions of youth Although the ageing workforce has better integrate young people, to integration and active ageing have been a major concern of the Euro- develop a ‘working life-cycle’ been taken up by the 2006-2008 pean social partners over the past approach and to find a new place in work programme as a key challenge. few years, it has not featured promi- society and on the labour market for nently among the themes of Euro- older people. The Hampton Court Their annual joint report on the fol- pean social dialogue. informal summit has confirmed low-up to their framework of actions demographic change as a priority on the lifelong development of com- 3.3.2. Gender equality area for the European Union and the petences and qualifications and their Commission will adopt a Communi- joint report on national social part- Ensuring equal opportunities for cation during the Finnish Presidency ners’ actions to implement the Euro- men and women in the professional in the second half of 2006, outlining pean employment strategy also high- context and guaranteeing a better its approach. light specific initiatives to improve worklife balance is the best way to

(164) The Commission Green Paper: ‘Confronting demographic change: a new solidarity between the generations’ of 16 March 2005 (COM(2005) 94 final) launched a wide public consultation on the EU’s role in facing up to demographic change. (165) ‘European Youth Pact’, annexed to the Presidency Conclusions of the Brussels European Council, 22 and 23 March 2005 (Council document 7619/1/05 REV1).

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bring more people, and women in framework on equal treatment In most countries, there were already particular, to the labour market and between women and men. initiatives ongoing with regard to gen- to promote higher birth rates. In this der equality, but the framework of perspective, the European Commis- Prior to agreeing on the final text, action was considered as a useful sion adopted in March 2006 a the social partners held various sem- additional tool. Some organisations Roadmap for equality between inars examining good practice cases had launched joint or unilateral proj- women and men,(166) outlining six pri- of ways in which social partners are ects, such as drafting manuals, guides ority areas for EU action on gender contributing to achieving gender and brochures, organising seminars equality for the period 2006-2010: equality on the labour market. On the and conferences, etc. In several cases equal economic independence for basis of these case studies, they iden- the initiatives were tripartite, i.e. in women and men; reconciliation of tified four priorities on which they cooperation with the government. In private and professional life; equal ask national social partners to take some countries, the framework of representation in decision-making; action during the next five years: actions was being taken into consider- eradication of all forms of gender- ation in collective bargaining rounds based violence; elimination of gen- 4 addressing gender roles; and some trade unions had formulat- der stereotypes; and promotion of ed recommendations or clauses for gender equality in external and 4 promoting women in decision- their member organisations to be inte- development policies. This strategy making; grated in collective agreements. document underlines the important role of social partners in reducing 4 supporting worklife balance; and The social partners in the railway discrimination and gaps between sector carried out in 2004-2005 a men and women and encourages 4 tackling the gender pay gap. project on the representation and bet- their work at both cross-industry and ter integration of women in the differ- sector levels. The member organisations of the sig- ent professions of the sector. The final natory parties have undertaken to pro- report takes stock of the situation and The March 2006 European Council mote the framework of actions in practices in the main railway compa- adopted a ‘European Pact for Gen- Member States at all appropriate lev- nies of four countries. It identifies der Equality’(167) (following the els taking account of national prac- obstacles to be removed (such as cul- model of the European Youth Pact of tices. The national social partners will tural stereotypes, the low number of March 2005), encouraging action at draw up an annual report on the women workers in technical jobs, EU and Member State level to close actions carried out in the Member wage discrimination which is often gender gaps and combat gender States on the four priorities identified. linked to overtime and night shifts, stereotypes in the labour market, to On this basis, the European Social the difficulty to reconcile work and promote a better worklife balance Dialogue Committee will prepare an family life and cases of mobbing and and to reinforce governance trough overall European report. After four sexual harassment) and proposes an gender mainstreaming and better annual reports, the European social ‘Equal Opportunities Path’ with a list monitoring. partners will evaluate the impact on of actions to be undertaken. These both companies and workers. This include, for instance, the dissemina- In March 2005 the cross-industry evaluation can lead to an update of the tion of a positive image of female rail- social partners, UNICE/UEAPME, priorities identified and/or an assess- way workers and the development of CEEP and ETUC, agreed on a ment on whether or not additional non-discriminatory criteria for access framework of actions on gender action is required in one or more of to the different railway professions. equality. This is their second frame- the priority areas. work of actions, with the first one addressing the question of lifelong The first follow-up report will be pre- 3.4. Quality of work learning (see above). The document pared for the end of 2006. Social part- is intended as a social partner contri- ners already held an exchange on The Lisbon Strategy is not only com- bution to the implementation of the action taken in Member States so far. mitted to creating more jobs, but also Lisbon objectives in terms of remov- It appeared that many national organ- better jobs. Quality of work has ing disincentives to labour force par- isations had jointly or individually therefore been a focus of EU ticipation by women and reducing translated the framework of action in employment and social policy over the gender pay gap. It is also intend- their respective language and dissem- the last few years. As recalled by the ed to complement the EU legislative inated the text among their members. new Integrated Guidelines(168) in

(166) Commission `communication ‘A Roadmap for equality between women and men 2006-2010’ of 1 March 2006 (COM(2006) 92 final). (167) ‘European Pact for Gender Equality’, annexed to the Presidency Conclusions of the Brussels European Council, 23 and 24 March 2006 (Council document 7775/06). (168) See Council decision of 12 July 2005 on Guidelines for the employment policies of the Member States (2005/600/EC).

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2005, efforts to raise employment healthy working environment and industry and other industrial sectors rates go hand in hand with improving working organisation are also per- have negotiated the first multi-sec- the attractiveness of jobs, quality at formance factors for the economy toral agreement on protecting work- work and labour productivity and for companies. The EU strategy ers against silica crystalline dusts. growth, and reducing the share of for health and safety at work for The agreement has been formally working poor. The quality of jobs, 2002-2006(170) recognises this by signed in April 2006 (see Box 5.2). including working conditions, organ- adopting a global approach to well- isation of working time, health and being at work, taking account of Musculoskeletal disorders safety at work and other workplace changes in the world of work and the issues, is crucial to strengthen social emergence of new risks, especially Musculoskeletal disorders represent inclusion and to attract more people of a psycho-social nature. It is based one of the most important problems to the labour market. Over the last on consolidating a culture of risk of health in the workplace in few years, quality of work has been prevention and on combining a vari- Europe. Following the Article 138 one of the areas where social part- ety of political instruments – legisla- consultation, the social partners in ners have been most active. tion, social dialogue, progressive the agriculture sector (EFFAT and measures and best practices, corpo- GEOPA) signed an agreement in 3.4.1. Working conditions in rate social responsibility and eco- November 2005 on the reduction of the railway sector nomic incentives. the exposure of workers to the risk of musculoskeletal disorders. They The Council adopted on 18 July 2005 Among the initiatives foreseen by recognise the considerable frequen- a Directive(169) which implements the the strategy are plans to extend the cy of musculoskeletal disorders agreement on certain aspects of the scope of the directive on ‘carcino- (MSD), defined as ‘troubles affect- working conditions of mobile railway genic agents’ and to adapt existing ing the main articulations of the workers assigned to interoperable legislation to the emerging problem human body [...] caused by repeated cross-border services concluded on of musculoskeletal complaints so as gestures, loading and uploading of 27 January 2004 between the Com- to take better account of ergonomics heavy weights, whole body vibra- munity of European Railways (CER) at the workplace. In accordance with tions or bad postures’, in their sector and the European Transport Workers’ Article 138 EC Treaty, European and the negative consequences for Federation (ETF). The agreement social partners have been consulted workers, employers and social secu- seeks to establish common minimum both on the protection of workers rity systems. Aiming to maintain health and safety standards for mobile from risks related to exposure to car- agriculture as an attractive sector for workers in the European railway cinogens, mutagens and substances workers, they agree that additional freight market, which was liberalised which are toxic for human reproduc- measures are necessary. in March 2003. tion and on musculoskeletal disorders at work in 2004. Although the The ‘agreement’, which in the typol- The aims of the text are to avoid com- subjects have not been taken up ogy proposed by the Commission petition solely based on differences in jointly by the cross-industry social can be defined as a framework of working conditions and to contribute partners, some sectors particularly actions, calls on national social part- to the improvement of rail transport. concerned with these health and ners to implement concrete actions The main provisions of the agreement safety problems have responded to in two fields: first, improving knowl- annexed to the directive cover daily the first-phase consultations by edge about work-related MSD in rest at home, daily rest away from launching own initiatives. agriculture; and second, setting up home, breaks, the minimum weekly concrete prevention policies. To rest period and the maximum driving Crystalline silica improve the knowledge of the phe- time of the workers concerned. Mem- nomenon, it suggests that ‘national ber States shall comply with the provi- In the wake of the Commission con- observatories of agricultural workers sions at the latest by 27 July 2008. sultation on carcinogenic agents in health and safety’ be created by 2004, the risks of the exposure of social partners in each Member 3.4.2. Health and safety at work workers to silica crystalline have States with the support of the appro- caught the attention of several indus- priate national bodies. Their task Occupational health and safety are try sectors. Seventeen European would be to centralise statistics on essential elements in terms of the social partner and industrial organi- MSD and compile a register of good quality of work, but a safe and sations representing the extractive practices regarding the prevention of

(169) Directive 2005/47/EC. (170) Commission Communication ‘Adapting to change in work and society: a new Community strategy on health and safety at work 2002–2006’ of 11 March 2002 (COM(2002) 118 final).

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Table 5.4: Article 138 consultations 2004-2006

Date Subject Social partners’ contribution Result 2004 Revision of the working-time First phase of consultation launched Commission adopted a proposal in directive in December 2003. September 2004 amending the working Second phase of consultation May-July time directive. 2004. Social partners declined invitation Discussions ongoing in the Council and to enter negotiations. European Parliament. 2005 Violence at the workplace and First phase of consultation Social partners’ negotiations at cross- its effects on health and safety January-March 2005. industry level started in February 2006, at work with the aim of concluding an autonomous agreement by end of 2006. 2005 Revision of the European works First phase of consultation councils directive (94/45/EC) April-May 2004. Second phase of consultation March-May 2005 in conjunction with second phase of consultation on restructuring (COM(2005) 120 final of 31 March 2005). 2005 Simplification of the health and First phase of consultation safety at work directives concerning April-May 2005. the reports on their practical Second phase of consultation implementation October-December 2005. 2006 Active inclusion of the people First phase of consultation furthest from the labour market March-April 2006. COM(2006) 44 final. 2006 Extension of the scope of First phase of consultation April – Multi-sectoral agreement on crystalline the directive on carcinogenic July 2004. silica. substances (90/394/EEC) 2006 Musculoskeletal disorders First phase of consultation Framework of actions (‘Agreement’) in November 2004 – January 2005. the agriculture sector. 2006 Strengthening of maritime First phase of consultation labour standards(171) June 2006 – September 2006 risks. A European-level observatory risks. Best practices gathered by the and a survey of companies’ working is also proposed. observatories should be rolled out to practices in this field. On this basis, all farms and agricultural enterprises. they drew up good practice guide- As regards the organisation of risk lines in which the outcomes of the prevention, the text suggests to the The framework of action foresees to research phase were integrated and national member organisations to set up a monitoring committee, with- set up a thematic website.(172) help organising national information in the sectoral social dialogue com- and training programmes for workers mittee for agriculture, responsible The project findings show that work and employers concerning the pre- for evaluating MSD prevention poli- in the telecommunications sector vention of MSD with the objective of cies in the Member States and the encompasses a range of activities heightening awareness of the risks. follow-up of the text. which can be broadly divided into Modules on MSD prevention should those relating to a service techni- be integrated in initial and continuing Social partners in the telecoms sector cian’s work and those associated training programmes, and employers (UNI-Europa Telecom and ETNO) with an office or contact centre envi- in SME should be provided with have recently completed a project on ronment. In general terms, the for- methods and documents for carrying MSD which consisted in research mer is more likely to include tasks out the evaluation of MSD-related covering existing scientific literature such as manual handling, working at

(171) Communication from the Commission under Article 138(2) of the EC Treaty on the strengthening of maritime labour standards [COM(2006) 287 final]. (172) http://www.msdonline.org.

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Box 5.2: Multi-sector negotiations on crystalline silica

In April 2006, the first agreement covering a number of industrial sectors in the history of European social dialogue was concluded on the theme of prevention of occupational exposure to respirable crystalline silica, a hazardous chemical agent. This autonomous agreement, to be implemented at national level in accordance with the procedures and practices specific to social partners and the Member States, is also the first in its kind signed in the field of health and safety at work.

The sectoral social partners IMA Europe, EMCEF, EMF, EUROMINES and 13 industrial organisations at Euro- pean level, representing the mining industry and related industrial sectors (aggregates, cement, ceramics, extractive industry, foundries, glass, industrial minerals, mineral wool, mining, mortar, natural stones, pre-cast concrete), signed the text entitled ‘Agreement on Workers’ Health Protection through the Good Handling and Use of Crys- talline Silica and Products Containing It’.

Through the implementation of good practices, the agreement aims at improving the protection of over 2 million workers employed in the EU by the signatory sectors from exposure to respirable crystalline silica and at enhancing compliance with EU and Member States’ existing workers health and safety legislation.

The agreement also provides recommendations and tools for monitoring of dust exposure, health surveillance, training and research. Each site will establish a monitoring system for the implementation of the good practices. For this purpose, an employee (e.g. the team leader of a site) will be specifically designated by the employer for each site. Employers will report progress made in the implementation process every second year, starting in 2008 (reporting of 2007 data). Each level will be involved in this reporting exercise, from the local sites to the sector associations of the 25 EU Member States. A bipartite monitoring council shall issue a summary report which will be forward- ed to the signatory parties and their members, the European Commission and the national authorities responsible for workers’ safety.

This text constitutes a strong commitment by the signatory parties. At the conclusion of the negotiations, employers’ and workers’ representatives as well as the Commission expressed their satisfaction regarding this positive development. They insisted that the successful negotiation paved the way for putting workers’ health protection and exposure prevention at the centre of the signatory sectors’ concerns and efforts.

The agreement will enter into force within six months, but will remain open for signature by employers and employees of sectors not yet involved and willing to join.

height and use of vibrating tools, Working conditions in the maritime 3.4.3. Well-being at work whereas the latter is principally con- transport sector The abovementioned EU strategy for cerned with the use of display screen health and safety identifies new social equipment and associated devices. The social partners at European risks linked to changing work organi- level have been very active in the sation, and especially more flexible For both types of activities, the proj- establishment and the adoption of ways of organising working time and ect illustrates general principles of the ILO consolidated maritime managing human resources on a more good ergonomic practice that can be labour convention (CMLC), 2006. individual level. ‘Emerging’ illnesses applied to work in other economic With a view to facilitating the imple- such as stress, depression, anxiety, sectors as well. It identifies the types mentation of the Convention, they violence at work, harassment and of MSD most likely to occur in the have set up a specific working group intimidation are often caused by industry and the activities with which in the framework of their social dia- workplace-related circumstances and they are associated. It further details logue committee. It will analyse have a considerable impact on work- a number of telecommunications related issues, elaborate a joint initi- ers and companies. The past few years tasks, quantifying the MSD risks and ative and possibly reach agreement have therefore seen social partners highlighting a range of preventive on the adaptation of Community focusing on issues related to well- measures employed by companies. labour law. being at work.

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Stress at work One and a half year after the signa- In the meantime, some sectoral ture of the agreement, translation social dialogue committees have Further to the consultation of social into most of the official languages joined in the efforts to implement partners on work-related stress in and beyond (languages of the Euro- the stress agreement. Referring 2002, the cross-industry social part- pean Economic Area and the candi- explicitly to the cross-industry text, ners signed their second autonomous date countries) had been carried out the social partners in the electricity agreement on the issue in October or were under way. In some cases, (Eurelectric, EPSU and EMCEF) 2004. As in the preceding agreement the translated text had still to be and the construction industries on telework (see p.105), they stipu- approved by one or more national (EFBWW and FIEC) both issued late that the agreement had to be organisations. The agreement had joint texts, respectively in Decem- implemented by all the member generally been disseminated, but ber 2004 and in January 2006, in organisations of the signatory parties actions to inform affiliates of nation- which they adhere to the principles (UNICE/UEAPME, CEEP and al organisations still had to be contained in the cross-industry ETUC), in accordance with the pro- improved. In many countries, discus- agreement and undertake to monitor cedures and practices specific to sions had been launched bilaterally the follow-up within their sectors. social partners in each Member between employers and trade unions State. Moreover, the agreement had or in tripartite bodies. Real progress Violence and harassment to be applied within three years of in the implementation of the text signature, i.e. in October 2007. could, however, only be reported in a Further to the Article 138 consulta- limited number of cases: national tion of the social partners on viol- In terms of content, the agreement collective agreements giving guide- ence at the workplace and its effects aims to increase the awareness and lines to lower bargaining levels on health and safety at work understanding of employers and (Spain, Sweden), a guidance bro- (January 2005), the cross-industry workers of the phenomenon of work- chure drawn up by the national social social partners held a seminar in related stress. It provides them with a partners and the relevant government May 2005, with the aim of under- framework to prevent or manage department (UK) and planned cross- taking a first exchange of views on problems linked to stress at the industry negotiations (Finland, Lux- how violence and harassment were workplace. The text contains a embourg, Poland): In some coun- being dealt with at the national level. description of stress as a physical tries, the item will be dealt with in The phenomenon was analysed and psychological state, establishes the respective tripartite social dia- under its triple dimension of physical responsibilities of employers and logue forum (Slovenia, Hungary). and psychological (‘bullying’, ‘mob- workers and identifies guidelines for bing’) violence and sexual harass- preventing, eliminating and reducing General challenges in implementing ment. Both sides agreed that the stress-related problems. the text include the fact that work- European level could make a useful related stress is sometimes not per- contribution, and there was a consen- From their previous experience with ceived by national actors as a prior- sus that efforts should focus in the the telework agreement, the social ity, next to high unemployment, first instance on prevention and partners had learned that a proper increasing labour market flexibility, awareness-raising. implementation can only be expected wages and restructuring. In a num- if the social partners at national level ber of countries the issue of imple- ETUC, CEEP and UNICE/UEAPME receive appropriate information and menting the agreement in the public subsequently informed the Commis- effective assistance from their Euro- sector was raised, since the public sion of their intention to launch nego- pean organisations. ETUC therefore employers are not always represent- tiations on violence and harassment developed a project that assisted ed by the EU social partners. In at work. After approval of negotiation national organisations in translating general, the precedent of the tele- mandates by their respective deci- and understanding the text and in work agreement helped to pave the sion-making bodies, negotiations identifying and proposing methods to way for a smoother implementation started in February 2006. The social implement the agreement. The process at national level. However, partners expect to finalise them with actions foreseen included the draw- it also showed the difficulties and the conclusion of their third ing-up of an interpretative guide of limits of this implementation ‘autonomous agreement’ in Novem- the agreement, aiming at helping method. A full evaluation in the ber 2006. their members to properly put the form of the social partners’ imple- provisions of the agreement into mentation report is expected by Social partners in the sea transport practice. October 2007. sector have also been addressing the

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topic of violence and harassment. In ment to work on CSR. The partners ing arrangements, efforts to create December 2004, they completed a plan to analyse the current approaches sustainable jobs – alleviating the project developing guidelines for taken by the electricity companies to problems of seasonal work – and shipping companies on eliminating the question of CSR, focusing in par- training. In order to implement, mon- workplace harassment and bullying. ticular on the social dimension. They itor and review developments, the The guidelines have been widely dis- planned to collect existing texts on European social partners invited seminated throughout the sector and a CSR in the companies, analyse EU national member organisations to video and CD-ROM training package and international reference texts, pub- disseminate and discuss the initiative have also been prepared. This initia- lish a CSR report based on the Global and promised to regularly monitor tive was also a contribution to imple- Reporting Initiative (GRI) standards, progress in the suggested areas for menting effective company policies analyse the critical success factors of acting. Best practices will also be on equal opportunities and diversity. CSR and analyse the social responsi- regularly disseminated among bility pillar of the companies accord- national member organisations. 3.4.4. Corporate social ing to the suggested performance indi- responsibility cators as developed by the GRI, in A joint statement from the banking areas such as occupational health and social partners (FBE, ESBG, EACB Corporate social responsibility (CSR) safety and relations with communities and UNI-Europa) in May 2005 drew as an important factor of improving and stakeholders. A working group attention to the conference held in quality of work continues to attract was established for this purpose. December 2005 at which best prac- and retain interest among the social tices in training, learning and develop- partners. There is a widely shared In the postal sector the European ment; core labour standards; work- understanding of the concept, in line social partners (UNI Europa Postal life balance; internal communica- with the definition offered by the and PostEurop) issued a joint state- tions and equal opportunities were Commission(173) as the effort of com- ment on CSR in November 2005. shared. The statement reiterated the panies to integrate social and environ- This highlighted the expansion of the commitments on lifelong learning, mental concerns into their business website on social responsibility to encouraged improvements to inter- operations and into their interactions include a new collection of good nal communications and emphasised with stakeholders on a voluntary practices relating to lifelong learning the importance of core standards in basis. Social partners in different sec- and CSR more generally. The social job security, discipline and grievance tors choose to emphasise different partners committed themselves more handling. They agreed to follow up aspects of CSR, while a common generally to promoting CSR through the issue within their sectoral social thread is a particular stress on the daily business activities, raising dialogue committee. social pillar. In their joint texts, social awareness of CSR in the European partners across the sectors recognise postal sector through dialogue and The social partners in the sugar sector and underline the contribution that exchange of information and famil- (EFFAT and CEFS) continue to pub- CSR can make to adding value to and iarising members with existing good lish annual monitoring reports on the enhancing growth in their own sec- practices and initiatives. Code of Conduct first drawn up in tors, as well as more broadly promot- 2003. The second monitoring report in ing the Lisbon goals. In its latest Com- In December 2004, the social part- February 2005 highlighted the publi- munication on CSR,(174) the Commis- ners in the Horeca industry (Hotrec cation and dissemination of a brochure sion indicated that it will continue to and EFFAT) published an initiative on CSR in the sugar industry which promote and support CSR initiatives on CSR encouraging action beyond has been widely distributed both with- by stakeholders, including social part- the existing legal requirements in in the profession and externally. The ners. The sectoral social dialogue areas such as equal opportunities and third monitoring report in February committees are an important mecha- working conditions. They plan to col- 2006 underlined the efforts made by nism in this regard. lect and disseminate best practices social partners and sugar companies to across a range of areas. In particular, manage restructuring in a responsible In the electricity sector the social part- in its self-proclaimed role as the ‘liv- way and presented three new examples ners (Eurelectric, EPSU and EMCEF) ing room’ of society, the Horeca sec- of good practice. The 50 most up-to- published a joint declaration in tor emphasises the importance of date examples of best practice will also December 2004 stipulating that further action against discrimination. Other be kept on the website of the social work be undertaken after their agree- areas of focus include flexible work- partners.

(173) Commission Green Paper ‘Promoting a European framework for corporate social responsibility’ of 18 July 2001 (COM(2001) 366 final); Commission Communication ‘Corporate social responsibility: a business contribution to sustainable development’ of 2 July 2002 (COM(2002) 347 final). (174) Commission Communication ‘Implementing the partnership for growth and jobs: making Europe a pole of excellence on corporate social responsibility’ of 22 March 2006 (COM(2006) 136 final).

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Table 5.5: Social partner joint texts between January 2004 and April 2006

Sector Title of joint text Agreements implemented in accordance with Article 139(2): minimum standards Cross-industry • Framework agreement on work-related stress, 8 October 2004 Extractive industry • Agreement on workers health protection through the good handling and use of crystalline (and 11 industrial sectors) silica and products containing it, 25 April 2006 Railways • Agreement on certain aspects of the working conditions of railway mobile workers assigned to interoperable cross-border services, 27 January 2004 • Agreement on the European licence for drivers carrying out a cross-border interoperability service, 27 January 2004 Process-oriented texts Agriculture • European agreement on the reduction of workers’ exposure to the risk of work-related musculoskeletal disorders in agriculture, 21 November 2005 Construction • Joint recommendation on the prevention of occupational stress in the construction sector, 10 January 2006 Cross-industry • Framework of actions on gender equality, 22 March 2005 Local & regional government • Joint statement on telework, 12 January 2004 Joint opinions and tools Agriculture • Health and Safety in Agriculture. best practices and proposals for action, 23 November 2004 Banking • Joint Statement – Employment and Social Affairs in the European Banking Sector: Some aspects related to CSR, 18 May 2005 Chemical industry • Joint Declaration on the establishment of a formalised sector dialogue committee for the European Chemical Industry, 27 September 2004 • Joint Position on REACH, June 2005 Texts adopted before the formal establishment of a sectoral social dialogue committee • Memorandum of Understanding on Responsible Care, 19 February 2003 • Joint statement on the New European Chemicals Policy (REACH), 27 November 2003 • Joint Position Paper on Education,Vocational Training and Lifelong Learning in the European Chemical Industry, 10 September 2004 Civil aviation • Joint Statement: Social Partners – Key Players in the Functional Airspace Blocks, 18 September 2004 (CANSO and ETF) • Joint Statement on Quality, Safety and Training in the Ground Handling Sector, 21 January 2005 (ACI Europe and ETF) • Statement on the Air Traffic Controllers Licence Draft Directive, 16 June 2005 (CANSO and ETF) • Joint statement on the South East European Functional Airspace Blocks Approach, 23 February 2006 (CANSO and ETF) Cleaning industry • Common recommendations of the European social partners for the cleaning industry, 1 March 2004 • Joint declaration: Selecting best value for the public procurement of cleaning services, 17 September 2004 Commerce • Statement on promoting employment and integration of disabled people in the European commerce and distribution sector, 28 May 2004 • Commitment to support the European Youth Initiative, 16 March 2005 • Joint Statement on the Directive on Services in the Internal Market, August 2005 Construction • Joint statement on the European Commission’s proposal for a directive on services in the internal market, (COM(2004) 002), 2 April 2004 • Joint statement on the European Week for Safety and Health at Work, 30 April 2004 • Second joint statement on the European Commission’s proposal for a directive on services in the internal market, 9 November 2004 • Joint Declaration on the occasion of the European Health & Safety Summit 2004 in Bilbao, 22 November 2004 • Joint Statement on Young People, 4 March 2005 • Third joint statement on the European Commission’s proposal for a directive on services in the internal market, 19 May 2005

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Table 5.5: Social partner joint texts between January 2004 and April 2006 (cont.)

Sector Title of joint text Cross-industry • Joint declaration on the mid-term review of the Lisbon strategy, 15 March 2005 • Joint contribution on the EU Youth Initiative, 22 March 2005 • Lessons learned on European Works Councils, 7 April 2005 Electricity • Joint statement on the future skills needs in the European electricity sector, 22 June 2004 • Joint statement: South East European Energy Community, 15 December 2004 • Joint declaration on work-related stress, 15 December 2004 • Corporate social responsibility and the European electricity sector, 15 December 2004 Extractive industry • Joint statement on general questions of health and safety in raw materials extraction, 18 November 2004 • Joint statement: Need for a European Mineral Resources Strategy, 22 November 2005 Footwear • Joint statement on marking of origin of footwear imported from third world countries, 21 January 2006 Horeca • Joint recommendation: Guidelines for training and development, especially in SMEs, in the hotel, restaurant and café sector, 11 June 2004 • An initiative for improving corporate social responsibility (CSR) in the hospitality sector, 10 December 2004 • Common reply to the Commission consultation (31 January 2005) on:‘2006 – European Year of Mobility for Workers – Towards a European Labour Market’, 2 March 2005 • Young people and the hospitality industry – Contribution to the European Youth Initiative, 21 March 2005 Leather/tanning • Joint declaration on the EU Origin Marking Scheme, 16 January 2006 Live performance • Declaration on enlargement of the European social dialogue in the performing arts sector, 18 April 2004 • Joint declaration on the Unesco Convention on the protection and promotion of the diversity of cultural expressions in relation to the GATS-negotiations within the WTO, 23 November 2005 Local & regional government • Joint statement on EU employment policy, 19 May 2005 Personal services • Declaration on the evolution of professional hairdresser training in Europe, 21 September 2005 • Convenant on Health and Safety, in particular the Use and Handling of Cosmetic Products and their Chemical Agents, between European Social Partners in the hairdressing industry, 21 September 2005 Postal services sector • Joint statement on Corporate Social Responsibility, 23 November 2005 Private security • Joint declaration:Towards a European model of private security, 15 October 2004 Railways • Recommendation on the revision of the Eurovignette Directive, 27 May 2004 • Report on the representation and better integration of women in the different professions of the railway sector,April 2005 Road transport • Joint recommendations on employment and training in logistics, 31 March 2006 Sea fisheries • Position regarding the Commission’s proposal for a Council regulation on the European Fisheries Fund (COM(2004) 497 final), June 2005 Sea transport • Guidelines to shipping companies: Equality of opportunity & diversity in the European shipping industry – Eliminating workplace harassment and bullying, 16 December 2004 • Report on the mapping of career paths in the maritime industries, 27 September 2005 Sugar • Joint position: Commission Green Paper on preferential rules of origin, 2 April 2004 Tanning/leather • Contribution of the social partners of the European leather industry to the EU spring summit, 24 March 2004 Telecommunications • Guidelines for customer contact centres, 15 June 2004 • Good practice guidelines for the prevention of musculoskeletal disorders within the telecommunications sector, 20 October 2005 Procedural texts Horeca • Rules of procedure of the Social Dialogue Committee in the hotel, restaurant and café sector at European level, 11 June 2004 Inland waterways • Rules of procedure for the European sectoral social dialogue Committee in the inland waterway transport sector, 9 June 2005

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Table 5.5: Social partner joint texts between January 2004 and April 2006 (cont.)

Sector Title of joint text Tanning/leather • Procedural rules of the sectoral dialogue committee in the leather/tanning sector, 13 September 2004 Follow-up reports Cross-industry • Second follow-up report on the framework of actions for the lifelong development of competencies and qualifications, 5 March 2004 • 2004 Report on social partner actions in Member States to implement Employment Guidelines, 5 March 2004 • Third follow-up report on the framework of actions for the lifelong development of competencies and qualifications, 22 March 2005 • 2005 Report on social partner actions on employment in Member States, 22 March 2005 • Evaluation report of the framework of actions for the lifelong development of competencies and qualifications, 25 January 2006 Sugar • First Report on the Code of conduct on Corporate Social Responsibility, 26 February 2004 • Second Report on the Code of conduct on Corporate Social Responsibility, 28 February 2005 • Third Implementation Report (2005) on the Code of conduct on Corporate Social Responsibility, 28 February 2006

4. Strengthening dialogue which aims to make the mentation of texts. These efforts implications as well as the rights and respond to the mutual interest of working methods obligations resulting from social both sides, both to guarantee an as partner texts more transparent. It pro- equal level as possible of implemen- Social dialogue is widely recognised posed broadly four categories of tation across the EU and to strengthen as an essential element of European texts: agreements establishing stan- the credibility and reputation of governance. Over the past few years, dards in accordance with Article social dialogue. social partners have not only focused 139(2) of the EC Treaty (both direc- on making progress on policy issues, tive-based and autonomous agree- In many, though not all, instances, but have strived to improve the func- ments); process-oriented texts social partners have also followed tioning of social dialogue. The Com- (frameworks of action, guidelines, the typology of results proposed by mission communication of August codes of conduct, policy orienta- the Commission, in a joint effort to 2004(175) had identified key chal- tions); joint opinions and tools; and make the outcomes of social dia- lenges that social partners have to procedural texts. logue more comprehensible for their face if they intend to improve the member organisations and third par- results and impact of European The social partners generally ties. The new work programme for social dialogue. The communication welcomed the Commission commu- 2006-2008 of the cross-industry suggested strengthening the links nication and followed many of the social partners refers to the negotia- with other levels of social dialogue, recommendations made. The cross- tion of an ‘autonomous’ agreement mainly national and sectoral, but also industry social partners have contin- to be implemented by social part- in companies. This is particularly uously developed their working ners, whereas the previous agree- important to ensure a proper imple- methods to enhance the impact of ments (on telework and stress) were mentation of the so-called ‘new gen- their texts on workers and companies defined as ‘voluntary’. eration texts’, i.e. instruments used in the Member States. The follow-up by social partners which they under- of the implementation of their frame- More generally, this work pro- take to follow-up themselves, rather works of action and autonomous gramme foresees a specific action of than relying on the EU institutions agreements was frequently raised in the EU social partners to ‘further and Member States. their Social Dialogue Committee or develop their common understand- specific working groups. Specific ings of [their] instruments and how The communication also proposes a projects have been designed to they can have a positive impact at the new typology of results of social improve the track record in imple- various levels of social

(175) Commission Communication ‘Partnership for change in an enlarged Europe – Enhancing the contribution of European social dialogue’ of 12 August 2004 (COM(2004) 557 final).

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Box 5.3: New social dialogue website

The European Commission has launched, in January 2005, a new website, dedicated to European social dialogue. It is both a source of information for the general public wishing to learn more about social dialogue and a valuable tool for social partners, researchers and other professionals who work on social dialogue issues on a day-to-day basis.

The website is part of the Commission’s efforts to improve information and knowledge about social dialogue and industrial relations. It is available in English, French and German and contains several sections, both informative and practical.

Apart from a general introduction and background on the history, the functioning, different forms, legal basis of social dialogue and information on social partner organisations, the website contains more specific information on cross-industry social dialogue and the work of the sectoral social dialogue committees.

It also provides the following features:

4 Studies on representativeness of social partners organisations and list of organisations consulted under Article 138 EC Treaty.

4 Recent Article 138 consultations.

4 Information on enlargement and capacity-building for social partner organisations in the new Member States and candidate countries.

4 Legal texts, communications and publications related to social dialogue.

4 Reports on industrial relations in European Commission.

4 Recent outcomes of European social dialogue (social partner texts, work programmes, etc.).

4 Information on grants and the social dialogue budget headings.

4 Relevant news.

An essential element is a new database that contains joint texts adopted by European social partners since 1985. There are currently over 400 entries, and texts can be searched for according to several criteria (sector, theme, type and addressee of text). The database is regularly updated with new texts adopted by social partners at cross-industry level or in the sectoral social dialogue committees.

The website is accessible via the European Commission’s Europa website (section on employment and social affairs) or directly at: http://ec.europa.eu/employment_social/social_dialogue/.

dialogue’. This work will be based on 4.1. Work programmes for synergies between different levels their experiences with the and sectors. autonomous agreements on telework The social partners, both at cross- and stress as well as the frameworks industry and sector level, have The cross-industry work proof actions on lifelong learning and strengthened the coherence and pre- gramme adopted at the Social Dia- gender equality. The work prog- dictability of their respective social logue Summit in Genval (near Brus- ramme also states that its ‘quality of dialogue by adopting annual or sels) in November 2002 for the peri- outcome [...] implies a renewed focus multi-annual work programmes. This od 2003-2005 has, in the view of the on jointly agreed measures accompa- development has been encouraged social partners themselves, been nied by effective use and efficient by the Commission, since it ‘useful to better focus the European organisation of follow-up provisions improves transparency of the social social dialogue over the past three and monitoring activities’. dialogue and enhances possibilities years and to enhance its autonomy’.

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Social partners have carried out The work programme has enabled social dialogue deals with ‘major almost all of the 19 distinct activities the social partners to conduct a bet- concerns of Europe’s workers and foreseen. Among the work prog- ter medium-term planning of their employers’. ramme’s greatest achievements are joint activities and has strengthened the successful negotiation of a the autonomous social dialogue. It In detail, the social partners agreed framework agreement on work-related has, however, not prevented the on the following actions: stress (2004) as well as the frame- social partners from reacting to work of actions on gender equality Commission consultations or jointly 4 The social partners will undertake (2005). In terms of structural work, discussing other issues. Some initia- a joint analysis of the key chal- the social partners have successfully tives that could not be fully devel- lenges facing Europe’s labour developed a capacity-building pro- oped in substance under their first markets, looking at issues such as: gramme to assist social partners of work programme (e.g. youth, active macroeconomic and labour mar- the new Member States joining in ageing, and undeclared work) have ket policies; demographic change, the EU social dialogue. been carried over to their next one. active ageing, youth integration, mobility and migration; lifelong Other important achievements The successful implementation of learning, competitiveness, innova- include: their first joint work programme has tion and integration of disadvan- led social partners to continue this taged groups on the labour mar- 4 three annual follow-up reports exercise. At the Social Dialogue ket; balance between flexibility (2003-2005) and the evaluation Summit in September 2005, they for- and safety; undeclared work. report (2006) of the Framework mally started their discussions on the of actions for the lifelong devel- next agenda for social dialogue. At 4 On that basis, they will make opment of competencies and this occasion, the Commission com- joint recommendations to the qualifications; municated its ideas on the topics the European and national institu- new work programme should cover tions and will define priorities for 4 two annual reports (2004, 2005) in its view, given the current chal- a framework of actions on on social partner actions in Mem- lenges on the labour market: demo- employment by social partners. ber States to implement the graphic change, flexicurity, restruc- employment guidelines; turing and integration on the labour 4 They will negotiate an auto- market. After some months of nego- nomous agreement, either on the 4 two joint texts on restructuring tiation, a final draft was finally integration of disadvantaged (‘orientations for reference’, agreed at the Social Dialogue Com- groups on the labour market, or 2003) and European works coun- mittee in January 2006. on lifelong training. cils (‘lessons learned’, 2006); After final approval by the European 4 They will finalise their negotia- 4 joint studies on economic and organisations decision-making organs, tions on an autonomous agree- social change in the 10 new EU the Work Programme of the Euro- ment on violence and harassment Member States (2005-2006); pean social partners for 2006-2008 at work, aiming to conclude in was presented to the Commission November 2006. 4 a joint declaration on employ- and the Council at the Tripartite ment of people with disabilities Social Summit in March 2006. It is 4 Regarding restructuring, they will (2003); clearly centred on the Lisbon strate- extend their joint studies carried gy and covers a wide range of issues, out so far in the new Member 4 the launch of the negotiations on but, contrary to the last work pro- States to all Member States and violence at work (2006); gramme, it does not constitute a will promote and evaluate their ‘shopping list’ of individual initia- joint texts in this area (‘orienta- 4 monitoring of the implementation tives. Instead, the authors decided to tions for reference’ and ‘lessons of the autonomous agreements on formulate it in a more strategic way, learned on EWC’). telework and stress; embedding it in the current challenges facing the EU. According to 4 The social partners will continue 4 joint seminars on mobility the text, ‘the European social part- their work of capacity building of (2003), restructuring (2003), gen- ners want to contribute to and pro- their member organisations in the der equality (2004), European mote growth, jobs and the moderni- new Member States and the can- works councils (2004), active sation of the EU social model’. didate countries. ageing (2005) and undeclared Rather than only listing the initia- work (2005), based on a number tives, the programme focuses on key 4 They will continue to report on of case studies. challenges, in order to ensure that the implementation of their

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autonomous agreements on tele- 4.2. New sectoral social European level. Wishing to further work and on stress and to monitor dialogue committees develop their initiatives in the field of the framework of action on gen- training, they have set up a working der equality. There are currently 33 sectoral social group to deal with these issues. Other dialogue committees covering over current issues are the follow-up of the The social partners clearly see this 50 % of the economy. Since mid- Responsible Care initiative, indus- text as their agenda for the auto- 2004, three new sectoral social trial policy and health and safety at nomous social dialogue and do not dialogue committees have been set up the workplace. exclude taking up other topics. and another request is currently being They state that they do not consider examined by the Commission, in In June 2006, the 32nd sectoral their work programme as an order to verify that the organisations social dialogue committee at EU exhaustive list and ‘may decide to submitting the demand are sufficient- level was launched for the steel up-date it in the light of develop- ly representative of the economic sec- industry, bringing together the Euro- ments in the EU. Furthermore they tor they claim to represent. This check pean Metalworkers’ Federation will continue to monitor the imple- is carried out following the estab- (EMF) and the European Confedera- mentation of the European Growth lished criteria for representativeness tion of Iron and Steel Industries and Jobs Strategy’. as European social partner. (Eurofer). Eurofer was founded in 1976 and its members are steel com- The Commission has welcomed the The sectoral social dialogue commit- panies and national steel associations work programme as a useful contri- tee of the chemical industry was cre- throughout the European Union. bution to the achievement of the Lis- ated in December 2004. Before that EMF, established since 1971, is the bon objectives, complementing the date the social partners of the chemi- umbrella organisation representing European institutions’ and Member cal industry had already established 65 metalworkers’ trade unions from States’ actions. In accordance with an informal social dialogue through 30 countries, including all 25 EU its role assigned by Article 138 EC their common declaration of Decem- Member States. EMF already acts as Treaty, the Commission will provide ber 2002. The employees are repre- European social partner in the ship- its support for implementing the sented by the European Mine, Chem- building social dialogue committee work programme. The Spring Euro- ical and Energy Workers Federation created in 2003. pean Council of March 2006 wel- (EMCEF) which organises 128 Euro- comed the new multi-annual work pean trade unions in 35 countries with The steel industry’s social partners programme as a ‘valuable instru- more than 2.5 million members. The have consolidated their dialogue for ment’ in the context of the renewed employers are represented by the decades under the ECSC Treaty with partnership for growth and jobs. European Chemical Employers the aim of boosting the global compet- Group (ECEG). The member organi- itiveness of the European steel indus- The Commission has also urged the sations of the ECEG stand for compa- try and stimulating job-creation. Dur- sectoral social partners to adopt nies that employ about 90% of the ing the inaugural meeting, the social annual or multi-annual work pro- workers in the industry. partners adopted their rules of proce- grammes as a means of better dure and their work programme for organising the work of their social Before formally setting up their 2006-2008. The new committee will dialogue committees. For 2005 and committee, the social partners signed deal with the topics of health and safe- 2006, all sectoral social dialogue a memorandum of understanding on ty through the exchange of good prac- committees have drawn up joint Responsible Care in February 2003. tices, the evolution of training needs work plans, albeit with variations The aim of this initiative is to and tools in the context of demograph- in detail and ambition. Several improve and communicate the safety, ic changes and of competition for themes are recurrent in a large health and environmental perform- highly skilled workers, as well as the number of these work programmes: ance of the industry, thus protecting structural changes within the Euro- training and lifelong learning, employees, neighbours, consumers pean and global steel industry. diversity and equal opportunities, and the environment. restructuring, undeclared work, Social partners from the hospital sec- youth integration, corporate social In September 2004 the social part- tor – the European Federation of Public responsibility and social dialogue ners agreed on a joint position paper Service Unions (EPSU) and the Euro- in the new Member States and can- on education, vocational training and pean Hospital and Healthcare didate countries. Table 5.6 shows lifelong learning in the European Employers' Association (HOSPEEM) the different issues covered by cur- chemical industry. Therein they iden- – launched the 33rd sectoral social dia- rent or recent work programmes in tify responsibilities and tasks both for logue committee in September 2006. the various sectoral social dialogue the industry and the employees and EPSU and HOSPEEM had been work- committees. their respective representatives – on ing for five years – with the support of company level, regional, national and the European Commission – to

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Box 5.4: New cross-industry social dialogue work programme for 2006-2008

Work Programme of the European Social Partners 2006-2008

UNICE/UEAPME, CEEP, ETUC (and the liaison committee EUROCADRES/CEC) reiterate their support for the Lisbon Strategy aimed at turning Europe into the most competitive knowledge-based economy in the world, capable of sustainable economic growth, with more and better jobs and greater social cohesion. Europe’s weakness in terms of growth and employment needs to be addressed in order to face the challenges of demographic change, globalisation and technological innovation.

The European social dialogue work programme for 2003-2005 has successfully contributed to the implementation of this strategy. It has also been useful to better focus the European social dialogue over the past three years and to enhance its autonomy. The European social partners notably negotiated two framework agreements on telework and work-related stress, two frameworks of actions on lifelong learning and gender equality and developed a programme to assist social partners of the new Member States joining in the EU social dialogue.

Through this second work programme for 2006-2008, the European Social Partners want to contribute to and promote growth, jobs and the modernisation of the EU social model. ETUC, UNICE/UEAPME and CEEP see this work programme as a means of further reinforcing the social partners autonomy. Its quality of outcome in the enlarged EU implies a renewed focus on jointly agreed measures accompanied by effective use and efficient organisation of the follow-up provisions and monitoring activities.

The European Social Partners believe that their new work programme should focus on Europe’s major economic and social challenges, in order to ensure that the social dialogue at European level deals with the major concerns of Europe’s workers and employers. They will employ a variety of tools in order to realise it.

In order to contribute to enhancing Europe’s employment and growth potential and the impact of the European social dialogue, the social partners undertake to make a joint analysis on the key challenges facing Europe’s labour markets, looking at issues such as

4 macroeconomic and labour market policies;

4 demographic change, active ageing, youth integration, mobility and migration;

4 lifelong learning, competitiveness, innovation and the integration of disadvantaged groups on the labour market;

4 balance between flexibility and security;

4 undeclared work.

On that basis, they will

1. decide appropriate joint recommendations to be made to EU and national institutions, and

2. define priorities to be included in a framework of actions on employment by the social partners, and

3. negotiate an autonomous framework agreement on either the integration of disadvantaged groups on the labour market or life long learning. In order to define their respective mandates, they will explore different possibilities.

Furthermore, the European social partners will

4. negotiate a voluntary framework agreement on harassment and violence in 2006;

5. complete the national studies on economic and social change in the EU 10, enlarge them to cover the EU 15 and on that basis promote and assess the orientations for reference on managing change and its social consequences and the joint lessons learned on EWCs;

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Box 5.4: New cross-industry social dialogue work programme for 2006-2008 (cont.)

6. continue their work of capacity building for the social dialogue in the new Member States, extend it to candidate countries, and examine how the employers and trade union resource centres providing technical assistance to the 10 new Member States could provide help to social partners of all EU countries;

7. report on the implementation of the telework as well as the work-related stress agreements and on the follow up to the framework of actions on gender equality;

8. based on the implementation of the telework and stress agreements and the frameworks of actions on the lifelong development of competences and qualifications and on gender equality, further develop their common understanding of these instruments and how they can have a positive impact at the various levels of social dialogue.

CEEP, UNICE/UEAPME and ETUC consider that this work programme does not constitute an exhaustive list. The social partners may decide to up-date it in the light of developments in the EU. Furthermore, they will continue to monitor the implementation of the European Growth and Jobs Strategy.

23 March 2006

formalise this sectoral social dialogue EC Treaty, by providing technical pean social dialogue was carried out at European level. The new committee facilities for social dialogue commit- in 2004-2005. The evaluation exam- monitors the social, economic and tees and ensuring coordination ined the results and impacts employment consequences of EU poli- between social partners and European achieved to date of projects support- cies in the health sector. It will also institutions. It also funds, by means of ed under the three social dialogue examine how demographic, technolog- three budget headings, various initia- budget headings(176) over the period ical and structural changes within hos- tives by social partners at European, of 2000-2004 and identified ways in pitals in Europe affect employment. national and regional/local levels as which the financial measures to pro- Their first work programme for 2006- well as initiatives to improve knowl- mote social dialogue can be 2007 covers the areas of recruitment edge of industrial relations. improved and adapted to meet the and retention of personnel in the hosp- future needs of an enlarged EU. ital sector, the age profile of the hospital As far as social partners are con- workforce and the new skill require- cerned, these project often focus on Over the examined period, a total of ments for the workforce in the sector. the preparation of European social EUR 141.2 million was allocated to dialogue through best practice and projects across the three budget Social partners in the gas sector have comparative studies or other re- headings. Taking the period as a submitted a request to formally estab- search, on the elaboration of joint whole, commitments for budget lish a sectoral social dialogue tools, on implementation and follow- headings 04 03 03 01 and 04 03 03 committee. The Commission is cur- up of European social dialogue 02 have been more or less equal and, rently examining the representative- results and finally capacity-building together, account for just over four- ness of the organisations. Reflections activities in favour of national social fifths (81.1%) of the European are ongoing on the prospects of estab- partner organisations, in particular in social dialogue financial instru- lishing social dialogue in the field of the new Member States and candi- ments’ commitments. Since 2000, central public administrations. date countries (see Chapter 4). there has been an increase of around 10% each year in the overall level of 4.3.1. Evaluation of the Financial commitments. 4.3. Use of financial Instruments in Support of instruments European Social Dialogue The evaluation shows that a large number of European social partner The European Commission supports At the request of the Commission, organisations benefited from Com- social dialogue, in accordance with an external evaluation of its finan- munity support. A total of 1 011 the task assigned by Article 138 of the cial instruments in support of Euro- projects were carried out by 525

(176) The three budget headings are: 04 03 03 01: Industrial Relations and Social Dialogue, established specifically to promote development of the social dialogue at cross-industry and sectoral levels; 04 03 03 02: Information and Training Measures for Workers’ Organisations; and 04 03 03 03: Informa- tion, Consultation and Participation of Representatives of Undertakings, which aims at strengthening trans-national cooperation in the development of employee involvement in multinational undertakings and promoting and supporting the Community ‘acquis’.

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Table 5.6: Topics covered by sectoral social partners’ work programmes

Topics es eing) w g e a ork) outh ety w activ y (y elong learning ph gra pacity-building ne orking conditions raining/ lif esponsibility Member States T Restructuring Demo integration, Ca Gender equality/ anti-discrimination W (including tele Sectoral policy initiativ Sectors Health and saf Corporate social r Agriculture x/f x f x x Audiovisual f x/f Banking x f x x/f Chemical industry f x/f x/f Civil aviation x/f x/f x/f Cleaning industry xx Commerce x/f x/f x x Construction x/f x/f x f Electricity xx x f x Extractive industry x x/f f Footwear f x x/f Furniture f Hospital (new) Horeca x/f f Inland waterways xx Insurance x Live performance x x/f f Local and regional government x f x/f f Personal services f x/f x Postal services f f f x/f Private security x x/f Railways x/f x x/f x Road transport x/f x/f Sea fishing x x x/f Sea transport xxxf Shipbuilding x/f x/f f Steel (new) Sugar x/f x x/f Tanning and leather x/f x/f x/f Telecommunications f x/f f f x x Temporary work fffx Textile and clothing x/f x/f x/f x/f x/f Woodworking ff f x = initiatives ongoing or carried out in past few years f = future initiatives planned in work programmes

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Table 5.7: Sectoral social dialogue committees

Sectors Employees’ Employers’ Date of creation organisations organisations Agriculture EFFAT GEOPA/COPA 1999 Audiovisual EFJ, EURO-MEI, FIA, ACT,AER, CEPI, EBU, 2004 FIM FIAPF Banking UNI-Europa EACB, ESBG, FBE 1999 Chemical industry EMCEF ECEG 2004 Civil aviation ECA, ETF ACI EUROPE,AEA, 2000 CANSO, ERA, IACA Cleaning industry UNI-Europa EFCI 1999 Commerce UNI-Europa Eurocommerce 1999 Construction EFBWW FIEC 1999 Electricity EMCEF, EPSU Eurelectric 2000 Extractive industry EMCEF APEP,Euracoal, 2002 Euromines, IMA Footwear ETUF:TCL CEC 1999 Furniture EFBWW UEA 2001 Hospitals EPSU HOSPEEM 2006 Horeca EFFAT Hotrec 1999 Inland waterways ETF EBU, ESO 1999 Insurance UNI-Europe ACME, BIPAR, CEA 1999 Live performance EAEA Pearle 1999 Local and regional EPSU CEMR 2004 government Personal services UNI-Europa EU Coiffure 1999 Postal services UNI-Europa PostEurop 1999 Private security UNI-Europa CoESS 1999 Railways ETF CER, EIM 1999 Road transport ETF IRU 1999 Sea fishing ETF Europeche/Cogeca 1999 Sea transport ETF ECSA 1999 Shipbuilding EMF CESA 2003 Steel EMF Eurofer 2006 Sugar EFFAT CEFS 1999 Tanning and leather ETUF:TCL Cotance 2001 Telecommunications UNI-Europa ETNO 1999 Temporary work UNI-Europa Euro CIETT 2000 Textile and clothing ETUF:TCL Euratex 1999 Woodworking EFBWW CEI-Bois 2000 Sectors having submitted a formal request to create a committee Gas EMCEF, EPSU Eurogas -

different social partner organisations of the priorities of European social between the activities supported by with approximately 185 000 direct dialogue financial instruments, such the European social dialogue finan- beneficiaries, i.e. the participants in as increasing participation in Euro- cial instruments and key policies the various conferences, workshops pean social dialogue, supporting the including the Lisbon Strategy, the and seminars held across the different implementation of the European new Social Policy Agenda and projects. Employment Strategy, increasing measures to promote better Euro- awareness of key European legisla- pean governance. The evaluators Projects generally combined three tion, and helping social partner also found that the additionality of main types of activity – research, organisations to implement it. the funding was considerable, i.e. capacity-building, conferences and that the majority of the actions car- seminars. The majority of activities Community added value was also ried out would not have taken place contributed directly to one or more judged to be high with a clear link without the funding possibilities.

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The report further underlines that and Jobs, encompassing European and to promote health and safety and many projects have supported objec- institutions, Member States, social well-being at work. tives relating to EU enlargement by partners and civil society is part of helping social partner organisations better and more participative gover- In order to maintain and enhance its in these countries prepare for adop- nance at EU level. Social partners relevance in the years to come, Euro- tion of the Community acquis. This are key actors to drive forward the pean social dialogue will need to applies both to specific legislation modernisation of the European focus increasingly on strategies to on, for example, European Works social model at all levels. tackle demographic change and to Councils (EWC) but also to Euro- achieve better participation in the pean social dialogue itself. Indispensable economic and social labour market, in particular of disad- reforms in Europe will only be suc- vantaged groups. High unemploy- The external evaluation, which has cessful if employers and workers ment, in particular of young people not been finalised yet, found that sign up to them. Their representa- and the ageing workforce are the there was scope for wider dissem- tives share the responsibility with main concerns of Europe’s workers, ination of the results of project activ- public authorities to meet the chal- companies and societies. ities. More emphasis could be placed lenges of globalisation and ageing on the dissemination and sharing of and their impact on the labour Social partners also need to ensure information on project outcomes at a market. Cooperative and consensus- that the results of European social dia- European level. driven attitudes by all actors are logue benefit its final beneficiaries, crucial requisites to successful i.e. companies and workers. Better consultation, dialogue and negotiation. links and synergies between different 5. Conclusion levels of social dialogue have to be In recent years European social part- established, in particular to improve As underlined by its rapid develop- ners, both at cross-industry and sec- follow-up of social dialogue results at ment, European social dialogue toral level, have delivered useful national and company levels. To remains an essential contribution to contributions to improve lifelong achieve this goal, social partners have and instrument of European employ- learning and to achieve equal oppor- to further strengthen their working ment and social affairs policy. The tunities between men and women. methods, in particular as dissemina- partnership approach of the rein- They have developed instruments to tion of joint texts, monitoring and forced Lisbon Strategy for Growth better anticipate and manage change reporting of progress is concerned.

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1. Introduction 2. Labour law consecutive Employment Councils could reach no agreement on the Legislative action during the refer- 2.1. Working time new proposal and a decision has ence period was carried out in the been postponed to 2006. areas of labour law, health and safety 2.1.1. Review of the working time at work, anti-discrimination, equality directive The main modifications of the May between men and women and free 2005 proposal are the following: movement of workers including On 22 September 2004, the Com- social security issues.(177) mission adopted a proposal (a) On-call time amending the Working Time Legislative acts were proposed or Directive 2003/88/EC. The Com- 4 a new paragraph allows the calcu- adopted with a view to recast exist- mittee of the Regions and the Eco- lation of the inactive part of on- ing legislation, in the fields of health nomic and Social Committee gave call time on the basis of an aver- and safety at work, equality between their opinions on this proposal on age number of hours or a propor- men and women and free movement 14 April and 11 May 2005 respec- tion of on-call time; of workers. This is in line with the tively. The European Parliament European policy aiming at better had its first reading on 11 May 4 a new paragraph lays down that regulation and simplification. Work 2005. Following this, the Commis- the inactive part of on-call time is currently underway in the area of sion presented on 31 May 2005 an cannot be taken into account in labour law aiming at consolidating, amended proposal and which calculating the 11 hours daily modernising and simplifying exist- is currently under discussion rest or the 24 hours weekly rest ing rules. before the Council. However, two period.

The Commission services deployed significant efforts in monitoring the Box 6.1: Why a revision of the Working Time Directive? correct implementation and application of the EU law. It is to be expected that these efforts will gain The original Directive incorporated two important possible derogations: increased priority in the future, in the light of the significant legislative 4 The ‘opt-out’ clause, permitting Member States not to apply the activity during the past few years and maximum 48-hour limit at all, on the basis of voluntary agreements with the massive extension of EU rules as individual workers (Article18). a result of enlargement. The Com- mission’s technical assistance was 4 The four-month reference period for calculating average working time instrumental in the transposition and can be extended to one year, although only in specific cases, on the basis implementation of the relevant EU of collective bargaining (Article 17). acquis in the Member States. The Commission was under a legal obligation to re-examine the two dero- In the field of social dialogue, there gations within seven years of the Directive’s implementation. In December was a new development: The Euro- 2003, it started the a consultation on revision of the Directive. pean sectoral social partners concluded in January 2004 a European Furthermore, in the last five years, three important rulings by the European agreement concerning working con- Court of Justice (the SIMAP, Jaeger and Pfeiffer cases), have confirmed that ditions in the cross-border railway ‘on-call working time’ – when the employee must be available at work – sector. At the request of the social should be defined as working time under the terms of the Directive. Compen- partners, this agreement was later satory rest time must be provided. Some Member States have resisted these implemented by way of a legally judgements and used them as a reason for applying the opt-out, especially in binding Council Directive. the health sector, to doctors working on call in hospitals for example.

(177) For previous developments in legislation see Industrial Relations in Europe Report 2004, p. 109.

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(b) Reference period Box 6.2: The Dellas case as a new example of the Court rulings on The text now foresees that, in case of on-call time(178) annualisation of the working time by law, Member States must take the In successive rulings (SIMAP,(179) Jaeger,(180) Pfeiffer,(181)) the European Court measures necessary to ensure that: of Justice has held that on-call time performed by a worker where he is required to be physically present on the employer’s premises must be 4 the employer informs and con- regarded in its entirety as working time within the meaning of the Directive. sults the workers and/or their representatives in good time con- In the case at issue, the French Conseil d’État asked the Court whether a strict- cerning the introduction of such a ly proportional system of equivalence, which consists in taking into account reference period; the total number of hours of presence and applying a weighting mechanism to them which reflects the lower intensity of work done during periods of inac- 4 the employer takes the measures tivity, can be regarded as compatible with the objectives of the Directive. necessary to avoid or overcome any risk relating to health and safe- The judgement of the Court was much-awaited, essentially in view of the on- ty that could arise from the intro- going review of the Directive, but also because Advocate General Ruiz- duction of such a reference period. Jarabo Colomer proposed in his opinion that the Court relaxes the definitions and allows the intensity of the work performed to be taken into consideration. (c) Opt-out In its judgement of 1st December 2005, the Court did not follow the Advo- 4 Opt-out must be laid down by cate General’s suggestion and clearly stated that the Directive ‘does not collective agreement or by law; provide for any intermediate category between working time and rest periods and (…) that the intensity of the work done by the employee and his/her 4 Workers having opted-out cannot output are not among the characteristic elements of the concept of ‘work- work more than 55 hours in any ing time’’ (point 43). It reiterated that ‘the fact that on-call duty includes week; some periods of inactivity is thus completely irrelevant’.

4 Opt-out will be available only for The Court therefore held that the Directive ‘must be interpreted as preclud- a period not exceeding three ing legislation of a Member State which, with respect to on-call duty per- years following the date of imple- formed by workers in certain social and medico-social establishments dur- mentation of the Directive by ing which they are required to be physically present at their workplace, lays Member States (usually three down, for the purpose of calculating the actual working time, a system of years after adoption of the Direc- equivalence such as that at issue in the main proceedings, where compli- tive); ance with all the minimum requirements laid down by that directive in order to protect effectively the safety and health of workers is not ensured’. 4 Member States making use of the opt-out may, ‘for reasons relating to their labour market arrangements’, ments aimed at improving compati- 2.1.2. Sectoral working time ask for the option to be extended bility between working and family regulation: the railway beyond the period of three years. life. Member States should also take sector The Commission shall decide on the measures necessary to ensure the response to this request, giving that employers inform workers in On 18 July 2005 the Council adopt- reasons for its decision. good time of any changes in the pat- ed Directive 2005/47/EC, hereby tern or organisation of working time giving a legal status to the conclud- (d) Reconciliation of work and and that workers are able to request ed Agreement between the Com- family life changes to their working hours and munity of European Railways patterns, and that employers are (CER) and the European Trans- A new Article sets down that Mem- obliged to examine these requests port Workers’ Federation (ETF) on ber States should encourage the taking into account employers’ and certain aspects of the working con- social partners to conclude agree- workers’ needs for flexibility. ditions of mobile workers engaged

(178) Judgement of the ECJ of 1 December 2005 in case C-14/04. (179) Judgement of the ECJ of 3 October 2000 in case C-303/98. (180) Judgement of the ECJ of 9 October 2003 in case C-151/02. (181) Judgement of the ECJ of 5 October 2004 in joined cases C-397/01 to C-403/01.

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in interoperable cross-border serv- It gives employers greater flexibility tation of the social partners on cor- ices in the railway sector.(182) as it provides for the possibility of porate restructuring and European reducing the daily rest periods to 9 works councils. The year before, the Community of hours instead of the 11 in the work- European Railways (CER) and the ing time directive. The Commission’s Communication European Transport Workers’ Federa- highlights three areas where EU tion (ETF) had agreed on certain Greater flexibility is also introduced action can help: more focused coor- working conditions, in particular rest for rest periods away from home, dination between EU policies periods, working time and driving which benefits employers but also (notably employment, industrial and periods to be applied throughout the reduces the amount of time rail enterprise, trade and competition EU rail market. Subsequently, they workers will spend away from home. policies); adapting the regulatory requested the Commission to imple- framework including a Green Paper ment that agreement by way of a on the Evolution of Labour Law in Council act, in accordance with Arti- 2.2. Employee participation 2006; funding, in particular through cle 139 of the EC Treaty, making it a proposal to establish a fund aimed thus binding in all Member States. 2.2.1. Restructuring – Revision of to provide support to areas and work- Following this request, the Commis- the European Works Coun- ers affected by restructuring; and sion presented a proposal for a direc- cils Directive developing partnerships. tive on this issue on 8 February 2005. The issue of corporate restructuring As regards enterprise and industrial The Directive is a major step forward and industrial policy is high on the policy, the Commission continues to in the development of social dia- agenda of the European Union, in line implement the revamped industrial logue and strikes the right balance with the renewed Lisbon Strategy, policy which it proposed in April between employers’ and workers’ built around the need to generate sus- 2004(186) and has issued a communica- interests in the railway sector at a tainable growth which benefits all.(183) tion on the sectoral dimension of time when the international freight The European Council of 22 and 23 industrial policy.(187) In particular, this market is being opened up to compet- March 2005 stated in particular that involves a reinforced sectoral and ition. ‘new forms of work organisation and regional follow-up, as better anticipa- greater diversity of contractual tion of change is dependent on a bet- Directive 2005/47/EC addresses the arrangements for workers and busi- ter knowledge of sectors, their out- special needs of the specific group of nesses, better combining flexibility look, and the levers which can be rail workers engaged in interoperable with security, will contribute to adapt- used to promote growth and employ- cross-border services, who were ability. Emphasis should also be ment, in particular in the sectors like- excluded from the original 1993 placed on better anticipation and man- ly to experience significant changes working time directive but later cov- agement of economic change.’(184) in the short term. As regards employ- ered by most of its provisions. ment and training issues, it involves The Commission adopted a Com- the European sectoral social dialogue It gives these workers more protec- munication ‘Restructuring and committees where appropriate. tion by stipulating a daily rest period Employment’(185) on 31 March 2005. of 12 consecutive hours (instead of This Communication sets out the The second phase of consultation of the 11 in the working time directive), measures to be developed or the social partners on both restruc- daily breaks of between 30 and 45 strengthened around the various turing and European works councils, minutes, and 24 ‘double weekly rest means that the Union can use included in the Communication periods’ (i.e. 48 hours instead of 24) regarding anticipation and man- ‘Restructuring and Employment’, in a year. It also lays down maximum agement of corporate restruct- consists of calling on the social driving periods of 9 hours for a day uring. It constitutes at the same partners to become more involved in shift and 8 hours for a night shift. time the second stage of the consul- the ways and means of anticipating

(182) Previously, the Council has adopted similar working time directives based on a sectoral agreement (seafearers in 1998 and civil aviation in 2000). (183) See also the section 3.2.2. in Chapter 5. (184) Point 33 of the Presidency Conclusions 7619/05. (185) Communication from the Commission Restructuring and employment – Anticipating and accompanying restructuring in order to develop employment: the role of the European Union’ (COM(2005)120 final) from 31 March 2005. (186) Communication ‘Accompagner les mutations structurelles: une politique industrielle pour l’Europe élargie’ (COM(2004)274 final). (187) Commission Communication ‘Implementing the Community Lisbon Programme: A Policy Framework to Strengthen EU Manufacturing — towards a more integrated approach for Industrial Policy" — COM(2005) 474 final of 5.10.2005; Commission Staff Working Paper ‘Implementing the Community Lisbon Programme: A Policy Framework to Strengthen EU Manufacturing — towards a more integrated approach for Industrial Policy EU Industrial Policy — SEC(2005) 1215 of 5.10.2005; (available online at http://www.ec.europa.eu/enterprise/enterprise_policy/industry/industrial_2005.htm).

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and managing restructuring. They 4 implementing mechanisms for cooperative societies. Under the are the key players in terms of effec- applying and monitoring existing Directive, employee participation tive action on the restructuring front, guidelines on restructuring, and a schemes should apply to cross-bor- the best way identified to effectively discussion on the way forward; der mergers where at least one of the anticipate change being through merging companies already operates social dialogue, involving the social 4 encouraging adoption of the best under such a scheme. Employee partners (employer and employee practices set out in the existing participation in the newly created organisations). The Commission is guidelines on restructuring; company will be subject to negotia- thus urging the European social part- tions based on the model of the ners to be more proactive in tackling 4 promoting best practice in the way Directive on involvement of employ- restructuring. that European works councils ees in the European Company (SE). operate, to make them more effec- As early as January 2002, the Com- tive, more especially as regards mission had made the social partners their role as agents for change; 2.3. Temporary agency work aware of the restructuring issue, ask- ing them to pinpoint and develop 4 devising a common approach to The Commission’s proposal for a throughout Europe instances of good the other points in this Communi- directive in this area is still blocked practice in terms of restructuring. cation which are of concern to before the Council despite the They subsequently spelled out refer- them, especially training, mobility, efforts of the Dutch presidency to ence guidelines for managing the sectoral dimension and the find a breakthrough at the end of change. anticipatory aspect. 2004. The aim of the European Agency Workers Directive, is to In April 2004, the Commission The Commission follows the work of create a kind of parity between the launched a first phase of consulta- the social partners and intends to working conditions and benefits of tion on revising the European look at the progress made at the 2006 temporary workers and perma- Works Councils’ Directive. Around Tripartite Social Summit. nently employed ones. It is a con- 750 European works councils are in tinuation of the policy of creating operation, covering 13 million 2.2.2. Cross-border Mergers parity for all ‘atypical’ workers (as employees all over Europe. Euro- Directive has been implemented for part- pean works councils have an essen- time workers). tial role to play in anticipating and On 26 October 2005, the European managing restructuring operations. Parliament and the Council adopt- The Directive proposes that there Here again, the social partners have ed Directive 2005/56/EC on cross- should be equal treatment of perma- undertaken a Europe-wide review to border mergers of limited liability nent and agency workers in respect establish principles or guidelines companies.(188) This directive regu- of working time, pay, specified based on an examination of existing lates, among others, the issue of maternity rights and prevention of councils. employee participation in the com- discrimination. The basic framework pany resulting from the merger. of the proposed directive is that: In the light of this work and these contributions, the Commission takes The Directive will facilitate mergers 4 temporary agency workers should the view that there is a need for of limited-liability companies on a not be given less favourable basic more European social dialogue input cross-border basis, which at present employment conditions than a simon these two closely linked ques- are impossible or entail prohibitive ilar permanent worker, unless this is tions, as part of the partnership for costs. It sets up a simple framework objectively justified. A temporary growth and jobs which lies at the drawing largely on national rules agency worker is only entitled to heart of the reinvigorated Lisbon applicable to domestic mergers and this protection after six weeks of Strategy. The Commission is there- avoids the winding up of the working for the end user company. fore encouraging the European acquired company. The Directive The basic employment conditions social partners to intensify ongoing covers all limited-liability compa- covered by this protection would work and to start negotiations with a nies, with the exception of undertak- include pay, the duration of work- view to reaching an agreement ings for collective investment in ing time, night work, paid holidays, among themselves on the requisite transferable securities (UCITS). rest breaks and actions taken to ways and means for: There are special provisions for combat unlawful discrimination;

(188) OJ L 310 of 25.11.2005, p. 1.

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4 temporary agency workers should be kept informed of permanent Box 6.3: Chronology of the Temporary Agency Work Directive vacancies available at the end user company; In 1990, the Commission put forward proposals to create a minimum level of consistency between different types of contracts, and proposed legisla- clauses preventing the temporary 4 tion in three areas: part-time work, fixed-term contracts and temporary agency worker from joining the work. end user at the conclusion of the workers’ assignment will be null In 1995, the Commission launched a process of consultation with the Euro- and void. pean social partners — employers’ and workers’ representatives — leading to the start of negotiations between the two sides a year later. The social The provision causing most alarm is partners reached agreement in the areas of part-time work and fixed-term the requirement of equal pay. As cur- contracts, which were formalised as EU Directives in 1997 and 1999 rently drafted, the directive would respectively. require that a temporary agency worker (with six weeks’ service) be In May 2000, the social partner organisations ETUC, UNICE and CEEP paid at the same rate as if they had launched talks on a temporary work agreement, but after a year of negotia- been taken on by the end user as a tions it became clear that the employers were not going to accept that tem- permanent worker, by reference to porary agency workers’ conditions should be on an equal footing with staff the end user’s pay scales and/or col- in the user company. lective agreements. In the absence of a deal between the two sides of industry, in 2002, the The European Parliament and Council European Commission put forward its own proposal for a Temporary already adopted resolutions in favour Agency Work Directive. of action to protect temporary workers more than 20 years ago. The European Commission submitted a draft Direc- 2.4.2. Coordination of Cooperative Society with regard to tive in 1982 that was never adopted. the transposition of the involvement of employees. Since directives the transposition involves provisions With a view to provide support to with a transnational dimension, the 2.4. Facilitation and Member States in transposing direc- Expert Group has endeavoured to monitoring of tives, the Commission has been seek ways of avoiding any contradic- implementation in using the method, whereby a group tions and incoherencies between the the Member States of national experts is composed in various national systems by exchang- order to coordinate the implementa- ing information and coordinating the tion. Recently this has been the case transposition work to be completed 2.4.1. Implementation/application for the implementation of the Euro- by August 2006. reports pean Cooperatives Directive. In 2004, Commission services pre- Given the similarities between the pared a working paper on the imple- As was the case with Directives European Cooperatives Directive mentation of Directive 91/383/EEC 94/45/EC (European Works Coun- and the European Company Direc- supplementing the measures to cils) and 2001/86/EC (workers’ tive, the expert group based itself on encourage improvements in the safe- involvement in the European Compa- the work already accomplished in ty and health at work of workers with ny), the Commission set up an Expert preparing the transposition of the a fixed duration employment rela- Group composed of national experts latter. Furthermore, it focused on the tionship or a temporary employment and the social affairs counsellors in aspects which are particular to the relationship. Furthermore, another order to provide a forum for dis- European Cooperatives directive report from the Commission dealt cussing the arrangements for the (e.g. Articles 8 and 9). A total of 3 with the application of Directive transposition into national legislation days’ meetings were held in 2005 on 94/33/EC on the protection of young of Directive 2003/72/EC supple- the basis of 18 working documents people at work.(189) menting the Statute for a European presented by the Commission.

(189) See, in this regard, http://ec.europa.eu/employment_social/labour_law/documentation_en.htm#23.

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The expert group achieved its objec- the social partners of the candidate adopted Directive 2006/25/EC on tives in the given timeframe. It is countries, and permitted a detailed the minimum health and safety expected that its work will have con- discussion and exchange of experi- requirements regarding the expo- tributed to a smooth transposition ence between the existing and future sure of workers to risks arising and implementation of a complex Member States. from physical agents (artificial corpus of legal provisions. The min- optical radiation).(193) utes and working documents are now published online.(190) 3. Health and safety The Directive on exposure of workers of workers to optical radiations is the fourth and 2.4.3. The challenge of last separate directive following the enlargement decision in 1999 to split the Commis- 3.1. Risks arising from sion’s original proposal for ‘physical Following the 2004 enlargement, the physical agents agents’ directive. Separate directives Commission launched a wide-rang- on mechanical vibration, noise and ing series of studies with the aim of 3.1.1. Electromagnetic fields electromagnetic fields have already reviewing the process of implemen- been adopted. The Directive lays tation of the EU labour law acquis in On 29 April 2004, the European down exposure limit values for the the enlarged European Union. The Parliament and the Council adopted exposure to artificial sources of opti- studies should cover not only the Directive 2004/40/EC on the mini- cal radiation above which no worker new Member States for the transpo- mum health and safety require- may be exposed. It requires employers sition and application of all direc- ments regarding the exposure of to carry out risk assessments and gives tives in the field of labour law, but workers to the risks arising from details on the measures the employer also the EU-15 Member States, for physical agents (electromagnetic has to take to protect employees. The the more recent acquis. fields).(192) Directive also includes provisions on workers’ rights to information, train- The studies are being prepared by The Directive lays down limit values ing, consultation and health surveil- independent national experts and are for exposure to electrical, magnetic lance. The Directive does not cover expected to be finalised by April and electromagnetic fields which are natural optical radiation, from sources 2007. static or magnetic or vary in time, such as the sun, but only covers artifi- with frequencies of up to 300 GHz, cial sources of optical radiation. It The Commission is currently moni- above which no worker may be applies to all areas of activity without toring the transposition of the labour exposed to. It also sets action values exception. law acquis in the candidate countries. which require employers to take pre- This monitoring is quite advanced as ventive measures as provided for in regards Romania and Bulgaria whose the Directive. Employers must ensure 3.2. Carcinogens or mutagens accession is envisaged for 2007. With that workers exposed to this particu- regard to Croatia and Turkey, the lar risk receive adequate information 3.2.1. Directive 2004/37/EC on screening exercise is under way. and training. The Directive also carcinogens or mutagens contains provisions concerning In order to provide technical assis- appropriate health surveillance for On 29 April 2004, the European tance to the acceding countries, DG workers exposed to risks from elec- Parliament and the Council adopt- Employment and Social Affairs tromagnetic fields. The new Direc- ed Directive 2004/37/EC on the organised, in collaboration with tive applies to all areas of activity protection of workers from the TAIEX,(191) several seminars on without exception. risks related to exposure to car- issues such as information and con- cinogens or mutagens at work sultation of workers and working 3.1.2. Artificial optical radiation which is the codified version of time. These seminars brought Directive 90/394/EEC and of its together experts, representatives On 5 April 2006, the European two amendments (Directives from the public administration and Parliament and the Council 97/42/EC and 1999/38/EC).(194)

(190) These documents can be found online at: http://ec.europa.eu/employment_social/labour_law/documentation_en.htm#11. (191) TAIEX is the Technical Assistance and Information Exchange Instrument of the Institution Building unit of Directorate-General Enlargement of the European Commission. Its aim is to provide to the new Member States, candidate countries, and the administrations of the Western Balkans, short- term technical assistance, in line with the overall policy objectives of the European Commission, and in the field of approximation, application and enforcement of EU legislation. (192) OJ L 159, 30.4.2004, p. 1. (193) OJ L 114, 27.4.2006, p. 38. (194) OJ L 158, 30.4.2004, p. 50.

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The Carcinogenic Agents Directive the social partners at Community values in implementation of Coun- 90/394/EEC has been amended level on musculoskeletal disorders cil Directive 98/24/EC and amend- twice in the past. The first time to at work. ing Directives 91/322/EEC and include a binding limit value for ben- 2000/39/EC.(201) zene, the second one to extend the Work-related musculoskeletal disor- Directive to mutagens and include ders are nowadays one of the major In implementation of Directive binding limit values for hardwood safety and health problems, which 98/24/EC, a second list of Communi- dust and vinyl chloride monomer. affects both women and men in all ty indicative occupational exposure The three texts have been the object sectors of activity throughout the limit values is established for 33 of a codification exercise leading to European Union; as a result, they chemical agents listed in the Annex a unique consolidated text: Directive also represent a major cost burden of the Directive. For any chemical 2004/37/CE. for industry and society. agent for which indicative occupational exposure limit values are 3.2.2. Consultation of the social At present, there is no specific legal established at Community level, partners on carcinogens, provision focusing on work-related Member States are required to estab- mutagens and reproductive musculoskeletal disorders. Howev- lish a national occupational exposure er, several European Directives – limit value taking into account the toxicants such as Directives 89/391/EEC(195) Community limit value, but may On April 2004, the Commission (framework), 89/654/EEC(196) (work- determine its nature in accordance launched, in accordance with Arti- place), 89/655/EEC(197) (work equip- with national legislation and practice. cle 138 of the EC Treaty, the first ment), 90/269/EEC(198) (manual han- stage of the consultation of the dling of loads), 90/270/EEC(199) (dis- 3.4.2. Non-binding guidelines social partners at Community level play screen equipment) and on the protection of workers from 2002/44/EC(200) (vibration) – apply On 21 December 2004, the Com- risks related to exposure to car- to musculoskeletal disorders and its mission issued, in accordance with cinogens, mutagens and reproduc- prevention. Directive 1998/24/EC, guidelines of tive toxicants at work. a non-binding nature to assist The Commission has asked the Member States in pursuance of the The Commission has asked the social partners at European level on Directive, and in drawing up their social partners at European level on the possible direction of a Community national policies on the protection the possible direction of a Commu- initiative addressing all significant of the health and safety of workers nity initiative aiming to extend the risk factors of work-related muscu- form the risks related to chemical scope of the ‘Carcinogens and loskeletal disorders and laying down agents at work. Mutagens Directive’ to substances minimum health and safety require- toxic for reproduction, to revise the ments for the protection of workers These Guidelines cover analytical occupational exposure limits values from problems arising or likely to methods for the measurement of the (OELVs) for carcinogens listed in arise from exposure to these risk fac- indicative occupational exposure the Directive, and to establish tors in all workplaces. (see also Sec- limit values of the chemical sub- OELVs for some carcinogens, muta- tion 3.4.2 of Chapter 5 in this report) stances; identification, assessment gens and reproductive toxicants, not and control of risks arising from the yet included in the Directive. presence of hazardous chemical 3.4. Chemical agents agents in the workplace; general principles for preventing risks relat- 3.3. Musculoskeletal disorders 3.4.1. Directive 2006/15/EC ed to hazardous chemical agents and specific prevention and protection On 9 November 2004, the Commis- On 7 February 2006, the Commis- measures for controlling these risks; sion launched, in accordance with sion adopted Directive 2006/15/EC and medical surveillance and biolog- Article 138 of the EC Treaty, the establishing a second list of indica- ical monitoring of workers exposed first stage of the consultation of tive occupational exposure limit to lead and its ionic compounds.

(195) OJ L 183, 29.6.1989, p. 1. (196) OJ L 393, 30.12.1989, p. 1. (197) OJ L 393, 30.12.1989, p. 13. (198) OJ L l56, 21.6.1990, p. 9. (199) OJ L 156, 21.6.1990, p. 14. (200) OJ L 177, 6.7.2002, p. 13. (201) OJ L 38, 7.2.2006, p. 36.

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3.5. Violence at work This regulation has amended Regu- report to the Commission, at regular lation (EC) No 2062/94 with the intervals, on the practical implemen- On 23 December 2004, the Com- aim of improving the efficiency and tation of the provisions of the direc- mission launched, in accordance effectiveness of the Agency and its tives concerned. with Article 138 of the EC Treaty, management structures. the first stage of the consultation The final provisions of these direc- of the social partners at Communi- tives prescribe different intervals for ty level on the protection of the 3.7. Implementation progress the submission of the national reports health and safety of workers from and simplification of to the Commission, either every five violence at work. Questions of vio- Health and Safety Direc- years or every four years. These dis- lence and harassment at the work- tives parities in the periodicity of the differ- place are of growing interest in ent national reports on practical Europe. implementation make the exercise 3.7.1. Practical implementation of extremely complex and burdensome. In its communication on a new Health and Safety Directives Community strategy on health and On 5 February 2004, the Com- These disparities will be harmonised safety 2002-2006, the Commission mission adopted a communication by a proposal of directive to be announced that it would ‘examine on the practical implementation of adopted by the Commission. The the appropriateness and scope of a the provisions of the Health and purpose of such a future proposal Community instrument on bullying Safety at Work Directives 89/391 will be to harmonise the periodicity and violence at the workplace’. The (Framework), 89/654 (Workplaces), of the reporting exercise to five years Commission has therefore consult- 89/655 (Work Equipment), 89/656 and to include other health and safe- ed the social partners at European (Personal Protective Equipment), ty directives, ‘asbestos’ directive level on the subject of all forms of 90/269 (Manual Handling of Loads) (83/477/EEC), ‘biological agents’ violence at the workplace, including and 90/270 (Display Screen Equip- (2000/54/EC) directive and the ‘car- bullying. In this regard, the Com- ment).(203) cinogens or mutagens’ directive mission was fully aware that the (2004/37/EC), which, currently, do social partners at European level This report examines how the not provide for the drafting and sub- have already included the subject of Framework Directive of 1989 and mission of national reports. harassment in their joint work pro- five of its individual Directives have gramme 2003-2005. The Commis- been transposed and are applied Furthermore, it would be a unique sion did not intend to take the place within the 15 old Member States. It implementation report, containing a of the social partners, but to con- also draws conclusions from the general part with general principles tribute to the discussion of the application – and in some domains and common aspects applicable to measures necessary with regard to rather the lack of proper application all the Directives, complemented by violence at the workplace. Social – for Europe’s health and safety leg- specific chapters which would cover partners’ negotiations at cross- islation and its impact on the economy aspects specific to the Directives in industry level started in February and society. question. 2006, with the aim of concluding an autonomous agreement by end of 3.7.2. Simplification and 2006. rationalisation of 4. Equality rights implementation reports 3.6. European Agency for 4.1. Anti-discrimination During 2005, the Commission directives: implementation Safety and Health at Work launched the first (1 April) and the second (11 October) stages consulta- and impact On 24 June 2005, the Council tions with the social partners at adopted Regulation (EC) No Community level on the simplifica- The deadline for transposition of 1112/2005 amending Regulation tion of the various final provisions of the two Anti-discrimination Direc- (EC) No 2062/94 establishing a certain directives in the field of tives adopted in 2000 expired in European Agency for Safety and health and safety at work which pro- 2003, 1 May 2004 for the ‘new’ Health at Work.(202) vide that the Member States must Member States. All the Member

(202) OJ L 184, 17.7.2005, p. 5. (203) COM/2004/0062 final.

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Directive 2000/43/EC(205) imple- Box 6.4: Communication on the implementation of the Health and Safety ments the principle of equal treat- at Work Directives ment between persons irrespective of racial or ethnic origin (‘Racial Equality Directive’). This Directive Prevention is the guiding principle for occupational health and safety legis- covers direct and indirect discrimi- lation in the European Union. EU-wide minimum requirements for health nation, as well as harassment, in the and safety protection at the workplace have been adopted. The report exam- fields of employment, education, ined how the Framework Directive of 1989 and five of its individual direc- social protection (including social tives have been transposed and are applied within the Member States. security and healthcare), social advantages, goods and services The EU legislation reportedly has had a positive influence on the national (including housing) available to the standards for occupational health and safety. The statistical evidence as well public. as the national reporting on achievements point to an important improvement in terms of health and safety protection. Directive 2000/78/EC(206) establishes a general framework for equal treat- Continued high risk areas largely coincide with the sectors and types of jobs ment in employment and occupation on which the report underlines major shortfalls in proper application, show- (‘Employment Equality Directive’). ing the case of a consolidation of compliance with the health and safety This Directive prohibits direct and acquis to further bring down the number of accidents. Sticking out are indirect discrimination, as well as small and medium-sized enterprises. Also the public sector shows signifi- harassment, in employment and cant shortcomings. High-risk workers are also found amongst the young, training on the grounds of religion or those on temporary contracts and those with low qualifications. belief, age, disability and sexual ori- The growing complexity of work processes, trends in working conditions entation. It includes specific require- and changes in the types of risks encountered as a result, call for a transpar- ments on reasonable accommodation ent and systematic approach to health and safety at work. Yet, with the for disabled persons. exception of the bigger companies, safety and health are seldom an integral part of companies’ overall management process. The Directives have helped to raise significantly the level of protection To clarify and solve misunderstandings and to correct any defective situa- against discrimination across the EU, tion that may occur in the application of the legislation is an urgent task. and to provide a uniform level of Labour inspectorates have a crucial role to play here: using labour inspec- protection across the EU. They have tors as agents of change to promote better compliance in SMEs, first led to the introduction of legal provi- through education, persuasion and encouragement and through increase of sions covering certain grounds in enforcement, where necessary. The entry into force of the new EU health some Member States for the first and safety legislation does not appear to have boosted the number of inspec- time (particularly sexual orientation tions. In their reports, the Member States point to a chronic lack of and age). They have clarified rights resources in their labour inspectorates to cover all aspects of the new legis- and obligations by introducing new, lation, particularly in the SMEs. detailed definitions of direct discrimination, indirect discrimination and harassment. States had to amend their national upon their right, under EU law, to legislation in order to transpose non-discrimination. The Com- These Directives prohibit discrimi- the Racial Equality and Employ- mission has also set up a network of nation in the employment sphere ment Equality Directives. independent legal experts in anti- (recruitment, employment and work- discrimination law, to report on ing conditions, promotion, pay, dis- The Commission places great developments in the Member missal, vocational training, self- emphasis on the application of States.(204) Reports by the Commis- employment, occupation) on all these Directives in practice, and has sion on the application of the grounds. They give bodies such as examined the legislation of the Racial Equality Directive and the trade unions and associations the Member States which transposes Employment Equality Directive right to help victims of discrimina- them. Without a full and correct will be adopted in 2006 and trans- tion make formal complaints. In transposition of the Directives, mitted to the European Parliament addition, the Member States must individuals will not be able to rely and the Council. promote dialogue with the social

(204) See, in this regard, http://ec.europa.eu/employment_social/fundamental_rights/policy/aneval/legnet_en.htm. (205) OJ L 180 of 19.7.2000, p. 22. (206) OJ L303 of 2.12.2000, p. 16.

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partners in order to foster equal treat- pean Court of Justice. After reaching munity law in the Member States. In ment and to encourage them to political agreement on 8 December particular, it is currently examining include anti-discrimination rules in 2005, the common position was the transposition of Directive collective agreements. adopted in March 2006. On 1 June 2002/73/EC amending Directive 2006, during its second reading, the 76/207/EEC on the implementation The Directives have broadened the European Parliament adopted a reso- of the principle of equal treatment scope of protection against racial lution approving the Directive. It was for men and women as regards discrimination beyond employment signed on 5 July 2006 and is present- access to employment, vocational to cover other areas of daily life, ly awaiting publication in the Offi- training and promotion, and working such as education, social protection cial Journal. condition. It is further carrying out a (including social security and health- thorough analysis of the implemen- care), social advantages and access 4.2.2. Equal treatment in tation of the entire acquis commu- to goods and services (including the access to and supply of nautaire in the field of equal treat- housing). This was new for the goods and services ment of men and women in the majority of Member States. They Member States that acceded to the have led to the establishment of new On 13 December 2004, the Council EU in May 2004. specialised bodies at national level, adopted Directive 2004/113/EC or the reinforcement of existing bod- implementing the principle of In this context, the Commission ies, in order to provide assistance to equal treatment between men and makes extensive use of its network victims of discrimination and to women in the access to and supply of independent legal experts on the promote equality. of goods and services.(208) application of Community law on equal treatment between men and This Directive is based on Article 13 women. In the years 2004-2006, 4.2 Equality between women of the Treaty and establishes for the the network produced a compre- and men first time the principle of equal hensive overview of national legis- treatment of men and women out- lation transposing the equal 4.2.1. Recasting of seven equal side the employment field. It pro- treatment Directives in all the treatment Directives hibits direct and indirect discrimina- Member States in a series of bul- tion as well as harassment based on letins.(209) It further provided in- On 21 April 2004, the Commission sex, as regards access to and supply depth reports on the transposition adopted a proposal for a directive of goods and services. The use of of Directive 2002/73/EC in general of the European Parliament and of sex-based actuarial factors in insur- and of one of its central provisions the Council on the implementation ance resulting in different premiums obliging the Member States to of the principle of equal treatment for men and women is banned in establish bodies for the promotion of men and women in matters of principle, but Member States may of equal treatment. employment and occupation (recast decide not to apply the ban in cases version).(207) where sex is a determining factor in the assessment of risk based on rele- 5. Free movement of The proposal simplifies and updates vant and accurate actuarial and the existing Community legislation. statistical data. Nevertheless, all workers and social It merges seven directives on equal Member States must ensure that security treatment of men and women in the insurance costs related to pregnancy fields of pay, access to employment, and maternity (e.g. health insurance) 5.1. Free movement of vocational training, working condi- are attributed equally to both men tions, occupational social security and women. workers schemes and on the burden of proof in discrimination cases into one single 4.2.3. Monitoring of On 29 April 2004 the European coherent instrument. Beyond an the implementation of Com- Parliament and Council adopted exercise of mere consolidation, some munity law Directive 2004/38/EC on the right limited substantive amendments of citizens of the European Union have been introduced in order to The Commission attributes utmost and their family members to move modernise Community law and importance to a reinforced control of and reside freely within the terri- incorporate case-law of the Euro- the proper implementation of Com- tory of the EU.

(207) COM(2004) 279 final, 21 April 2004. (208) OJ L 373, 21.12.2004, p. 37. (209) These are accessible on the Internet: http://ec.europa.eu/employment_social/gender_equality/legislation/bulletin_en.html.

130 Review of European legislation 2004-05 Chapter 6

This directive brings together the 5.2.2. Proposal for 5.3. Portability of complex body of legislation that an implementing regulation supplementary pension existed in this area. It eliminates to Regulation (EEC) rights the need for EU citizens to obtain a No 883/2004 residence card, introduces a perma- The Commission presented on 20 nent right of residence after five Further to the adoption of Regula- October 2005 a proposal for a years, defines more clearly the situ- tion (EEC) No 883/2004 on 31 directive on improving the porta- ation of family members and January 2006 the Commission has bility of supplementary pension restricts the scope for the authori- presented a proposal for its imple- rights. This directive intends to ties to refuse or terminate residence menting regulation which is a support the Commission’s ‘Jobs and of EU citizens who come from prerequisite for Regulation (EEC) Growth’ strategy by making it easi- another Member State. Member No 883/2004 to apply. er for workers to move jobs and States had until 30 April 2006 to countries. It comes at a time of transpose this directive. The new Regulation (EEC) No increased focus on supplementary 883/2004 on the coordination of pensions in the EU, with many social security schemes will eventu- countries introducing reforms in 5.2 Coordination of social ally replace Regulation (EEC) No anticipation of the effects of ageing security schemes 1408/71. It fundamentally reforms populations. and simplifies the rules for the coord- 5.2.1. Regulation (EEC) ination in the field of social security, The proposal is designed to reduce No 647/2005 thus improving the protection for the the obstacles to mobility within and citizen. The proposal for the new between Member States caused by On 13 April 2005, Council and implementing Regulation will have present supplementary pension European Parliament adopted to be adopted by Council and Euro- schemes provisions. These obsta- Regulation (EEC) No 647/2005 pean Parliament under the codeci- cles relate to: the conditions of which is one of the yearly amend- sion procedure which may not be acquisition of pension rights (such ing regulations of Regulation before the end of 2007. as different qualifying periods (EEC) No 1408/71 on the coordi- before which workers acquire nation of national social security The proposal defines essentially the rights), the conditions of preserva- schemes. procedures and steps which in prac- tion of dormant pension rights tice are necessary to ensure a uni- (such as pension rights losing value It is necessary to regularly amend form application of the principles of over time) and the transferability of Regulation (EEC) No 1408/71 in coordination laid down in Regulation acquired rights. The proposal also particular to update it in reaction to (EEC) No 883/2004. In particular, seeks to improve the information changes to national social security the procedures clarify the obligations given to workers on how mobility legislation and the case law of the of the social security institutions may affect supplementary pension Court of Justice of the European amongst each other as well as the rights. Communities. This helps to ensure mutual obligations between institu- that the application of the different tions and insured persons. national legislations does not 5.4. European Health Insur- adversely affect persons exercising 5.2.3. Proposal for Annex XI of ance Card their rights to free movement within Regulation (EEC) the EU. No 883/2004 The transitional period which was granted to a number of Member Regulation (EEC) No 647/2005 The Commission adopted a fur- States following the launching of reduces in particular the number of ther proposal regarding Regula- the European Health Insurance special non-contributory benefits to tion (EEC) No 883/2004: it con- Card on 1 June 2004 ended on 31 which special coordination rules cerns especially entries by Mem- December 2005. Therefore, the apply. These benefits, which are listed ber States into Annex XI of this European Health Insurance Card is in Annex II a of Regulation (EEC) regulation. now distributed in all EU Member No 1408/71, had to be re-examined States as well as Iceland, Liechten- in the light of the criteria developed Annex XI lists the special provisions stein, Norway and Switzerland by the recent jurisprudence of the which Member States may apply when since 1 January 2006. This card Court of Justice of the European applying their national legislation. It is replaces the E-forms which were Communities. As a result, the benefits necessary for the proper application of previously needed to obtain health- which are no longer mentioned have social security coordination rules, and care during a temporary stay in a to be exported, i.e. be paid to a thus the functioning of social security Member State other than the one of person in another Member State. coordination in Member States. insurance.

131 Chapter 6 Industrial Relations in Europe 2006

6. Conclusion: 4 The relationship between law and dialogue should be taken at all collective agreement is evolving. levels and social partners should future perspectives Collective agreements function as be empowered to fully play their important tools adjusting legal prin- role under changed circum- The Commission announced, in its ciples to specific situations. The stances; social dialogue should be communication of 9 February 2005 relative importance of collective promoted, while respecting the on the Social Agenda 2005-2010, agreements has significantly diversity of national solutions and several actions in the area of labour increased over time (see Chapter 2). principles like transparency and law with a view to increasing the democracy. quality and productivity of work, and 4 New forms of regulation have anticipating and managing change. emerged, including in particular 4 Promoting adaptability: Measures the open method of coordination. should be taken to increase the The publication of a Green Paper on These new forms of regulation capacity to adapt to new situations the evolution of labour law, and the have in many instances been and to allow for swift transitions ensuing public debate that it will instrumental for pushing forward between employment relation- launch, will play a key strategic role a number of positive initiatives. ships. Increased flexibility should for future developments in this field. be complemented by appropriate The Green Paper is expected to 4 Developments in non-standard work and new forms of security (‘flexi- analyse current trends in new work such as agency work or econo- curity’), including social security patterns and the role labour law can mically dependent work are becom- systems and an active labour market play in tackling these developments, ing more widespread. Together with policy, that ease transitions. There by providing a more secure working more traditional forms of non- should be special attention given environment and by encouraging standard work like part-time or to lifelong learning. more efficient transitions on the fixed-term work, these changes in labour market. The Commission’s work patterns pose continuing 4 Inclusive labour law and fight objective in launching a debate in challenges for labour law and against precarious employment 2006 on the development of labour employment policy. They can have situations: Appropriate solutions law complements its focus on simp- beneficial effects both for employers are needed for non-standard lification in the context of the broad- and employees on the condition that work and to establish a minimum er Better Regulation initiative. they are attractive and that a common ‘floor of rights’ for all workers; ‘floor of rights’ is guaranteed. particular focus should be put on The Green Paper will draw inter alia economically dependent work upon a series of studies on the evolu- 4 ‘Flexicurity’ and ‘adaptability’ are and agency work; key issues tion of labour law in the EU-15 during key concepts that should be include the promotion of a ‘free 1992-2002. The country studies car- supported by all relevant actors. A choice’ approach and ensuring ried out by the independent experts at clear shift from the idea of ‘job that all those active in the labour national level were complemented in security’ to ‘employability’ and market be entitled to equal rights 2004 by a synthesis report by Prof. ‘employment security’ can be and equal opportunities. At a Sciarra of Florence University.(210) Its observed. Training and lifelong minimum these rights should conclusions were discussed at a learning are core aspects to make include health and safety, equality Dutch Presidency conference on these concepts work. A performing and a guarantee of quality in labour law which was held in Leiden social safety net and an active work. on 30 September/1 October, 2004. labour market policy are also The coverage of this series of studies important elements in this respect. 4 Effective implementation of fun- on the evolution of labour law will be damental rights: The implemen- enlarged in order to include the 10 The following conclusions reflect the tation and demarcation of funda- new Member States, Bulgaria and broad consensus among participants mental rights require particular Romania. These new studies will be at the Dutch Presidency Conference attention. Consideration also launched in 2006. about possible future orientations and needs to be given to ways to issues to be examined: secure full and effective compli- The report by Prof. Sciarra highlights ance with established rights to key trends with which policy-makers 4 Support for social dialogue: preventing them from being in the EU have been confronted in Measures (both by Member States undermined. recent years. These trends include: and the EU) to support the social

(210) See Chapter 2 for more discussion of the results of the these studies.

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In addition to the Green Paper, the Commission will proceed with the review of existing legislation wherever justified, in line with the Social Agenda 2005-2010. In particular, legislative work is expected to be carried out with the aim of updating Directive 2001/23/EC (transfer of undertakings), by taking into account cross- border transfers, and to consolidate the various legal provisions on workers’ information and consultation.

133

Chapter 7 Trends and potential risks in the EU labour market(211)

The need to put a stronger emphasis Section 2 identifies structural prob- of work with potential precarious- on job creation and economic growth lems that some trends may create or ness in the context of combating is one of the main policy conclusions reinforce. Finally Section 3 discusses poverty. emphasised in the mid-term review under which circumstances these of the Lisbon Strategy. While signif- structural problems could lead to an 1.1.1. Greater diversity in employ- icant employment creation is expected increased vulnerability for certain ment contracts (external to be associated with reaching the groups or types of workers. numerical flexibility) Lisbon employment targets, other developments are expected to generate economic growth such as the 1. Driving forces: Fixed-term contracts consolidation of an open market of goods in an enlarged EU-25, the lib- push factors and The increase in fixed-term contracts eralisation of services, and a policy incentives occurred in the early 1990s in the EU progressive improvement in human Member States; only in the last few capital as well as research and devel- years have they begun to increase in opment. Economic growth could not 1.1. Facts about flexibility of most of the 10 new Member States be sustainable – and employment and three candidate countries. creation could not remain a long- working conditions term process – if it is not also based While permanent contracts remain on strong educational and social Flexibility and flexible work are the most common labour contract policies. terms used to describe a wide range form, fixed-term contracts are on the of work styles and employment prac- rise in the majority of countries. As a In this perspective the present chap- tices. Broadly speaking, they are percentage of total employment, fix- ter aims to illustrate new possible used to describe all kinds of employ- term employment increased from risks in the evolving world of work in ment which differ from the tradition- 11.7 in 1998 to 14.2 in 2005 in the the EU. The analysis in this chapter al 9-5 full time job with a permanent EU. The most noticeable increases will not address the question of contract. The ‘flexible’ aspect of occurred in Poland (from 5.4 of total employment and of the efficiency of these types of jobs can in different employees to 25.5), Portugal (from the policies undertaken to fight instances relate more to the employ- 17.2 to 19.5), Sweden (from 12.9 to unemployment per se but instead the ees, or to the employer, or to both. 16.2) and the Netherlands (from 12.7 impact of the policies implemented That is, from the employees’ point of to 15.2). Some countries display by governments, enterprises and view, flexible work may allow more decreases, in particular Ireland (from social partners on the quality of freedom to organise their employ- 8.8 to 2.5) and the UK (from 7.0 to employment. At the same time, the ment to fit in with other parts of their 5.5). A few countries present a analysis will focus on non-standard life. For an employer, the flexibility percentage of fixed-term employ- working conditions in order to iden- may come with the ability to organise ment well above the average in 2005, tify the factors that may create or labour resources more in line with i.e. Sweden (16.2), Slovenia (17.0), reinforce the vulnerability of certain the varying needs of customers, or Finland (18.1), Portugal (19.5), categories of workers. These cate- with peaks and troughs of demand. Poland (25.5) and the well-known gories would not fit the Lisbon target In this context the chapter will focus case of Spain with 33.3. of creating ‘more and better jobs’ on greater diversity in employment and represent a challenge to social contracts (external numerical flexi- Fixed-term contracts in 2005 mainly cohesion and sustainability. bility), including certain forms of concern young employees aged self-employment and flexible work- below 30 with 54.6 per cent of them Section 1 provides a picture of the ing time arrangements (internal being under such contracts in Spain, main trends in working and employ- numerical flexibility). Finally also 49.3 per cent in Poland and 42.3 per ment conditions as well as of the the related issue of low wage cent in Slovenia. The percentage of actions taken in this area. Then, employment is presented as a form younger workers with this status has

(211) Draft prepared by F. Eyraud and D. Vaughan-Whitehead, International Labour Organisation (ILO), on the basis of the information collected in an ongoing EC-ILO project The Evolving World of Work – Progress and Uncertainties in Working and Employment Conditions in Europe with the participation of I. Beleva and V. Tzanov (Bulgaria), V. Franicevic (Croatia), R. Vaskova (Czech Republic), H. Pedersen (Denmark), P. Mehaut (France), B. Nacsa (Hungary), A. Hamandia (Germany), S. Portet (Poland), A. Surubaru (Romania), R. Munoz de Bustillo Llorente (Spain), J. Lundberg (Sweden), and D. Grimshaw (UK).

135 Chapter 7 Industrial Relations in Europe 2006

Figure 7.1: Employees on fixed-term contracts in Member States, male colleagues of the same age, but 1998 and 2005 also in Finland (48 per cent for women and 36 per cent for men), 35 35 Sweden (46 per cent versus 36 per

1998 2005 cent), and even Cyprus (25 per cent 30 30 against 15 per cent). The opposite seems to be true for Lithuania 25 25 (12 per cent for men compared with

ees 5 per cent for women) but also for y 20 20 Latvia. This may be because of the more permanent nature of employment contracts in the public sector 15 15 where there is a higher proportion of

% of total emplo women than men. As is shown in 10 10 Figure 7.2 the share of fixed-term employment of all employees is less 5 5 than 10% for employees aged 30 years and over compared with more 0 0 than 30% for young persons. 0 FI SI IE IT ES PL SE EE BE EL LT LV SK FR PT LU AT DE NL -1 CY RO HR BG CZ MT DK UK HU EU-15 EU-25 NM Temporary agency work CY and MT:1998 data are for 2000. Source: Eurostat, EU Labour Force Survey. Another form of temporary work should particularly be taken into consideration, although its share of total employment is still relatively Figure 7.2: Employees on fixed-term contracts by age group in low despite a rapid increase in the Member States, 2005 mid- to late 1990s in most Member 60 60 States: agency work. Unfortunately, the quality of the data in this area is < 30 > 30 not fully satisfactory as not all agen- 50 50 cies are included.(212) However, Table 7.1 based on CIETT statistics gives 40 40 some interesting indications.

Some form of inverse relationship ees <30 and >30 y 30 30 appears to hold between the use of this type of job and fixed-term con-

20 20 tracts; the UK being the main user here while featuring a relatively low rate of fixed-term work. Similarly, % of total emplo 10 10 the decrease of agency work contracts in the Netherlands could be

0 0 related to the increase in the use of SI FI IE IT SE ES EL LV LT PL 10 EE BE FR PT SK AT

LU fixed-term contracts. DE NL BG CY - HR CZ UK RO MT DK HU EU-25 EU-15 NM As for fixed-term contracts, agency work could be a port of entry on the Source: Eurostat, EU Labour Force Survey. labour market toward a more permanent contract. In Sweden for instance, doubled since 1998 in these two by this form of employment contract, some governmental surveys indicate countries. Also to be noted is that, in especially in Slovenia, where 48 per that around 60% of those who are some countries, young women seem cent of women under 30 are affected hired through an interim agency end to be more affected than young men compared with 38 per cent of their up getting employment at the interim

(212) For a more detailed analysis of the statistical shortcoming, see European Foundation For the Improvement of Living and Working Conditions, temporary agency work in the European Union, EFILWC, 2002, 98p.

136 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 7

Table 7.1: Agency workers as a percentage of the total workforce 2000 and 2004

BE DK DE EL ES FR IE IT LU HU NL AT PL PT SL SK FI SE UK 2000 0.30 0.87 0.96 2.10 1.38 4.50 0.96 4.7 2004 2.20 0.23 1.00 0.1 0.90 2.10 1.25 0.63 2.50 1.35 2.50 1.38 1.20 0.90 0.5 0.5 0.60 1.00 5.10

Source: CIETT (European Confederation of Private Employment Agencies). agency’s customer company. The rate is less than 50% in the UK and esti- Figure 7.3: Part-time employment in the total economy in Member mated at 30% in France. Being a ‘reg- States, 1998 and 2005 ular’ agency work employee could be 50 50 a choice of working life. It is estimated that 20-25% of employees in 1998 2005 France chose this type of contract 40 40 deliberately. However, in most cases temporary agency contracts are ees concentrated in low-skilled jobs. Tem- y 30 30 porary agency work is still a new form of employment in most of the new Member States. It is often considered 20 20 that this is due to the use of other form % of total emplo of non-regular contract and particularly self-employment ‘contracts’. 10 10

Part-time work 0 0 0 SI FI IE IT ES SE EL LV LT PL EE BE FR SK PT AT LU DE Part-time work has increased in most NL BG CY -1 HR CZ UK RO MT DK HU EU-15 EU-25

of the EU countries, from 15.9% of NM the total employed population in CY, MT and PL:1998 data are for 2000; IE 2005 = 2004. 1998 (average among the 25 EU Source: Eurostat, EU Labour Force Survey. countries) to 18.5% in 2005 in EU- 25. However, disparity remains high the U.K., Sweden, Germany, Austria, of the EU-15 in 2005, men aged 15-29 among countries. Part-time work Denmark and Belgium. Apart from represent 19.4% (10.2 for all men) and remains rare in all new EU Member the Netherlands, the biggest increases their female colleagues 33.2% (38.2 for States. The main reason is still the affected Luxembourg (+7.9), Bel- all women). low level of wages, which explains gium (+6.1), Germany (+5.8), Italy workers’ willingness to accumulate (+5.4) and Austria (+5.2). These increases are accompanying working hours to improve their the growth of the service sector, and income and living standards.(213) On Even though there is an increase of men particularly activities such as hotel the employers’ side, this type of flex- working part-time (having reached in and restaurant work, service to the ibility is not yet integrated in work 2005 just over 10% of employees in persons, etc., which allow forms of organisation. Only a slight increase DK, SE and UK and more than 20% in work organisation well suited to a is to be noted during the period in NL), particularly in the service sector, segmentation of working time. For these countries. Undoubtedly, the women constitute the big majority of instance, in Sweden, a new type of Netherlands is by far the biggest user part-time workers and their share is arrangement has emerged where of part-time work with 46.2% of the increasing. The percentage of young employees are on ‘stand by’ and employees in 2005. In addition, the workers is also rising (19.4% of only work when there is a need for percentage has increased drastically: employees aged 15-29 on part-time extra work: the number of such part- it was 38.8% in 1998. Most of the contract in 2005 against 16.1% in 1998) time arrangements grew from northern European countries exhibit maintaining, to a lesser extent though, 40 000 in 1990 to almost 145 000 by a high percentage (above 20%): the gender pattern. In the service sector 2005.(214)

(213) Thus confirming the peculiar nature of part-time work in these countries already identified in the Industrial Relations Report 2004. (214) Nelander, S. and Goding, I, Anställningsformer och arbetstider, LO, 2005.

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Figure 7.4: Male part-time employment in industry and services Self-employed without employees in Member States, 1998 and 2005 Self-employment is a very heteroge- 50 50 neous category. Self-employed people can be employers (self-employed 1998 2005 with employees) or individual work- 40 40 ers under a self-employment contract (self-employed without employees).

ees A part of this last category is a flexi- y 30 30 ble form of employment to which enterprises are increasingly having recourse. It is also a type of employ- 20 20 ment encouraged by some govern-

% of total emplo ments to help unemployed people to get a job, and particularly the young 10 10 unemployed, as an alternative to salaried employment. Although the share of self-employed has fallen in 0 0 many Member States the EU average SI FI IE IT ES SE EL LV LT PL 10 EE BE FR PT SK AT LU DE NL BG CY - HR CZ UK RO MT DK HU has increased slightly over the last EU-15 EU-25 NM decade, representing 10.3% of total CY, MT and PL:1998 data are for 2000; IE 2005 = 2004. employment in 2005 in the EU. Source: Eurostat, EU Labour Force Survey. However, quite large variations could be observed among countries, which are mainly due to variations in agri- Figure 7.5: Female part-time employment in industry and services culture which generally represents in Member States, 1998 and 2005 the main part of the group of self- employed people without employees. 75 75 1998 2005 Outside agriculture where self- employed people without employees 60 60 constitute 47% of total employment in EU in that sector, this group of self-

ees employed is also important (more than y 45 45 10% of the total employed) in construction (16%), distribution (12%), business services (16%) and in per- 30 30 sonal and community services (15%)

% of total emplo This is not to say that these shares are due to false self-employed. They 15 15 reflect mainly the specific industrial structures of the countries. However, case studies show that this type of self- 0 0 employed often represents employees SI FI IE IT SE ES EL LV LT EE PL BE FR PT SK AT LU DE NL BG CY HR CZ UK RO MT DK HU in economic terms who have been EU-25 EU-15 NM-10 requested by their employer to shift CY, MT and PL:1998 data are for 2000; IE 2005 = 2004. from a regular employment contract to Source: Eurostat, EU Labour Force Survey. a self-employed status. Data is hard to come by, for example in Italy it has Many countries have developed vulnerable when part time is been estimated that its incidence part-time employment as a flexible imposed on them. According to the amounts to 28% of self-employment, arrangement to improve the labour EU Labour Force Survey, up to 20% but in other countries, where this form market situation. At the same time of part-time workers would prefer to of employment has been studied it it can also make workers more work full-time. stands at much lower levels.(215)

(215) EU research on social sciences and humanities: Precarious employment in Europe, ESOPE, Luxemburg 2005.

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Even though self-employment without Figure 7.6: Proportion of employees working part-time because they employees does not represent a mas- could not find a full-time job, 1998 and 2005 sive quantitative phenomenon, the trend is steady and defines a popula- 70 70 tion of workers at risk. Some evidence 1998 2005 seems to suggest that self-employment 60 60 is often more of a survival strategy than a job-search strategy. A recent 50 50 study came to the conclusion that self- ers ork employed in Spain are more at risk of 40 40 becoming poor.(216)

t-time w 30 30 To conclude this short review of non- standard contracts: while they concern % of par only a minority of workers, despite 20 20 increasing trends in practically all the dimensions considered, these forms 10 10 have become quantitatively as well as structurally a substantive feature of 0 0 SI FI IE IT SE ES EL LT LV PL EE 10 BE FR PT SK AT LU DE NL BG CY - HR CZ UK RO MT DK the labour market. It remains, howev- HU EU-25 EU-15 er, difficult to evaluate precisely the NM percentage of precarious workers CY, MT and PL:1998 data are for 2000; IE 2005 = 2004. among them and the situation is quite Source: Eurostat, EU Labour Force Survey. diverse among Member States.

1.1.2. Flexible working time Figure 7.7: Self-employed without employees in Member States, arrangements (internal 1998 and 2005 numerical flexibility) 30 30

1998 2005 Flexibility in working time 25 25

The most recent data on flexible 20 20 working time arrangements are ed y found in a comprehensive survey carried out by the European Founda- 15 15 tion on the Improvement of Living and Working Conditions in more than 21 000 European workplaces % of total emplo 10 10 with 10 or more employees.(217) The main results are the following. Flex- 5 5 ible working time arrangements are in operation in almost half (48%) of workplaces with 10 or more employ- 0 0 SI FI IE IT SE ES EL LV LT PL 10 EE BE FR PT SK AT LU DE NL BG CY - HR CZ UK RO MT DK ees in Europe. The degree of work- HU EU-15 EU-25 ing time flexibility varies greatly NM between EU countries. For example, CY, MT and PL:1998 data are for 2000; IE 2005 = 2004. working time arrangements allowing Source: Eurostat, EU Labour Force Survey. the accumulation of hours are prac- tised in more than 50% of establishments in Finland and Sweden, but in Portugal or Cyprus. Some 61% of faction results from the introduction only about 10% to 15% in Greece, managers state that higher job satis- of flexible working time arrangements.

(216) Mercader-Prats, M., ‘La pauvreté menace les jeunes espagnols au moment où ils s’émancipent’, Economie et Statistique, INSEE, no 283-384-385, 2005, pp. 75-89. (217) European Foundation fort he Improvement of Living and Working Conditions: Survey on working time and work-life, First results Dublin 2006. The survey was carried out between autumn 2004 and spring 2005 and covered are the former 15 and 6 of the new member States (CY, CZ, LV, HU, Pl and SI).

139 Chapter 7 Industrial Relations in Europe 2006

Even more than 70% of the employ- instance a working time banking a greater recourse to shift work in the ee representatives support this account – and can be taken off as days new Member States and candidate appraisal. A better adaptation of of leave. The categories concerned countries (with a proportion of working hours to the workload is may also vary by countries and by sec- employees concerned that is nearly reported by 54% of managers and by tors. While men are generally more double the norm). over 60% of employee representa- frequent users of flexitime in certain tives. Lower absenteeism (27%) and countries like France, Ireland and Fin- The countries where shift work is most a reduction in paid overtime (22%) land, women were generally found to widespread (in both industry and servic- are other positive effects mentioned be more likely to use flexitime. In es) are Poland, Croatia, Slovenia, Slova- by managers. However, about 35% some sectors like banking flexitime is kia and the Czech Republic. In Poland of employee representatives men- more prevalent among highly skilled, 40.6% of women and men in industry tioned a reduction in paid overtime. non-manual workers while in other and 37% of men and 27% of women in Generally, employee representatives sectors it can also be applied in more services are concerned by shift work. confirm the assessments of man- elementary occupations. Poland is followed by Croatia (31% for agers in those workplaces where both gender in industry and 36% for both were interviewed. Shift work men and 33% for women in services) and Slovenia (31% for women and men In 2001, one in five employees had In 2004, one employee out of five in industry; 31% and 29% in services). flexitime, i.e. they could schedule their reported normally undertaking shift More than one third of male and female daily working hours beyond or below work in the EU. This number hides employees in industry (slightly less in their contractual number of hours important differences by country but services) also work in shifts in the Czech within certain limits. The credit hours also by sector of activity – although as well as in the Slovak Republic. In can be accumulated – through for less by gender. We can first observe Latvia, shift work is more common in

Table 7.2: Proportion of employees reporting working usually in shift work, 2004 (2000 in parentheses)

Industry Male Industry Female Services Male Services Female BE 19.8 (18.4) + 14.4 (12.2) + 6.9 (6.1) + 7.0 (5.7) + CZ 31.2 (na) 34.9 (na) 28.1 (na) 26.4 (na) DK 7.2 (5.1) + 6.2 (3.9) + 4.4 (6.2) - 6.1 (6.8) - EE 19.0 (17.1) + 30.8 (29.8) + 20.2 (23.2) - 16.6 (20.2) - EL 13.7 (9.8) + 10.9 (7.8) + 26.0 (18.4) + 15.8 (11.5) + FR 19.6 (20.7) - 15.9 (16.6) - 6.4 (6.8) - 4.9 (5.5) - IT 17.3 (18.2) - 14.2 (14.5) - 22.6 (21.7) + 18.1 (17.0) + CY 4.2 (3.8) + 4.7 (4.4) + 13.4 (13.1) + 9.1 (7.6) + LV 19.5 (na) 25.5 (na) 26.4 (na) 22.3 (na) LT 11.7 (15.3) - 26.7 (33.5) - 11.7 (20.3) - 8.9 (5.4) + HU 25.4 (25.6) - 28.0 (27.7) + 17.7 (15.6) + 15.7 (13.3) + MT 26.3 (21.4) + 21.7 (23.2) - 25.3 (28.6) - 16.7 (12.2) - AT 23.0 (20.4) + 16.5 (15.1) + 19.5 (17.3) + 16.6 (12.9) + PL 40.6 (na) 40.6 (na) 36.5 (na) 27.7 (na) PT 15.6 (7.1) ++ 17.5 (4.4) ++ 20.6 (11.6) ++ 15.7 (12.9) + SL 30.9 (28.8) + 38.7 (33.5) + 28.5 (28.7) - 30.8 (30.0) + SK 31.7 (na) 38.4 (na) 26.5 (na) 21.7 (na) FI 23.0 (23.9) - 22.3 (25.7) - 19.7 (21.0) - 26.8 (26.3) + SE 19.1 (21.0) - 16.8 (18.8) - 17.7 (20.0) - 24.0 (29.8) - UK 21.5 (19.8) + 8.7 (9.4) - 23.5 (18.7) + 17.2 (15.1) + HR 31.2 (na) 31.7 (na) 36.3 (na) 33.3 (na)

EU-25 21.5 18.7 18.3 15.3 EU-15 19.1 13.7 16.8 14.0

NM-10 33.0 35.6 28.9 23.6

Source: Authors’ comparative compilation from the working time data of the European Industrial Relations Review and other sources.

140 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 7

services, with 26% of male and 22% of Figure 7.8: Proportion of employees working both Saturday and Sun- female workers affected. day, 2005

Shift work concerns fewer workers 70 70 in agriculture (8% in EU) but is Usually Sometimes much more common for women in 60 60 this sector and a widespread phenomenon in countries like the Czech 50 50 Republic where 31% of women in ed agriculture work in shifts. y 40 40 The trend toward shift work is on the increase in the new EU Member States 30 30 especially in the industrial sectors. For % of all emplo instance in Slovenia the proportion of 20 20 female workers in shift work in industry has increased by 5 points between 10 10 2000 and 2004. Shift work does not seem to have expanded only in new 0 0 SI FI IE IT ES SE LT PL EE EL LV PT BE FR SK AT LU DE CY NL CZ UK DK RO HR MT

EU Member States since it is also HU EU-15 EU-25 booming in Portugal (it doubled in NM-10 industry and services both for male ES 2005 = 2004. and female), but also in Greece and Eurostat, EU Labour Force Survey. Austria. It slightly increased in the UK, Denmark and Belgium, whilst it decreased in France and Sweden. In Figure 7.9: Proportion of employees usually working at night, 2005 the countries where this phenomenon had not yet developed extensively until 20 20 2000 it seems to be increasing significantly. In the countries where the process had already reached high levels in industry in 2000, it slightly 15 15 decreased since then but tended to expand in the service sector. This is the ed y case in Austria, for instance, where 10 10 shift work has been increasing significantly in services – the highest rates

being found in the health and social % of all emplo care sector (35.5%), followed by hotels 5 5 and restaurants (27.2%). This means that women, who are predominant in the two service sectors, are particularly affected by shift work, a finding that 0 0 SI FI IE IT ES SE EL LV LT PL EE BE FR PT SK AT LU DE NL BG CY HR CZ UK RO MT DK is confirmed by the rate of progression HU EU-15 EU-25 of shift work in services in most NM10 countries. BG 2005 = 2004 Eurostat, EU Labour Force Survey. This expansion of shift work practices is influencing working condi- in reconciling work and family life, ment of week-end work. An indicator tions such as working rhythms – since shifts are often combined with for working during weekends is the often more intense in companies that increased number of unsocial hours proportion of employees working have implemented shift work – and on Saturday or Sunday or both. both Saturday and Sunday. working hours – that may be less numerous because shared among dif- Weekend work Sector-wise speaking working on ferent shifts. Shift work – especially both Saturday and Sunday occurs for those doing their shift at night – The increased recourse to shift work mostly in agriculture, followed by also often leads to more difficulties has also often led to a parallel develop- services and industry. In 2005 it was

141 Chapter 7 Industrial Relations in Europe 2006

the most developed in Slovakia, Malta, Estonia, but also in Austria, Figure 7.10: Employees on low wages in Member States, 2002 Denmark, and France. Since 2000 it increased the most in Slovakia, Aus- 60 60

tria, the Czech Republic, France and To t al Men Women Italy. It also slightly increased in 50 50 Slovenia, Croatia, Spain, Belgium y and Portugal. gor 40 40 Night work 30 30 ees in each cate

Night work is often developed along y with shift work which generally involves night-shifts. Night work is 20 20

most used in the Slovak Republic, % of emplo

Malta and in the UK, where more 10 10 than 10% of employees usually work at night. 0 0 SI FI IE IT ES SE EL LT LV PL EE BE FR PT SK AT LU DE NL BG CY CZ UK RO MT DK Contract on stand by HU EU-25 Contracts on stand-by – that is where Source: Structure of Earnings Survey, 2002. employees have no control over their working schedule, nor over their Figure 7.10 shows that some of the broad sector breakdown, low wages employment schedule since they are new Member States as well as Bul- are especially common in distribution, both decided according to the demand garia and Romania, but also Portugal hotels and restaurants as well as in of the company at its own discretion – and the UK have a high ratio of low- business services. While nearly 32% have also been developing. Although wage earners (more than 30% of of all employees with a low level of they represent a small minority of employees paid under 60% of the education in the EU are in the low workers on average (less than 2-3%) average wage). On the other hand, in wage category (nearly 50% of all they have been on the increase in cer- Denmark and Italy this share is 11%, female employees), 6.8% of all tain countries; in particular the and in Belgium, Finland and Sweden employees with a high educational Netherlands where it concerns 2.5% below 6% of all employees. The gap level only earn a low wage, for female of men and 6% of women and Sweden between men and women, affected employees this share is even more (respectively 2.5 and 4.5%). They by low wages, tends to be larger in than 10%. It has also to been observed have been rapidly increased over the old Member States. All in all, that in certain cases minimum wage recent years in Sweden. Similarly, in while in the EU nearly 25% of all regulation is not complied with. In Austria they affect 5% of all employ- employees are paid at less than 60% both cases the wages paid to these ees, and are much more frequent in of the average wage, this percentage workers could be very low. Non- sectors such as hotels and restaurants is close to 17.4% for men and nearly payment of wages is also a serious and community, social and personal double (33.8%) for women. problem in some countries. This is services activities where they reach particularly the case in Poland. A nearly 10%. Other more refined data tends to show report published by the Polish nation- that the share of employees at 60% of al labour inspectorate reveals that two 1.1.3. The incidence of low wages the average wage is much higher for out of three companies examined are persons on fixed-term contracts than still not paying their employees cor- In addition to flexible employment for permanently employed persons. In rectly. It seems that the situation has contracts and working time arrange- most Member States it is also clearly improved since 2002 in terms of non- ments the most recent data on low visible that younger persons up to 30 payment of wages but deteriorated as wages (less than 60% of the aver- years are more often affected by low regards the level of payment. More age/median wage) is very illustra- wages than persons older than 30 companies pay below the minimum tive. In fact, low wage employment years. The differences according to wage.(218) What makes this situation and working poverty are among the age and contract duration are compar- quite worrying is that the first affected main forms of precariousness in atively larger in the old Member States are workers coming from poorly employment. than in the new ones. Looking at a developed areas.

(218) EIRR, February 2005, p. 19. See also Rapport de la Commission d’experts pour l’application des conventions et recommandations, 2006, OIT, Genève, p. 369.

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1.2 Developments in labour from the EU-15, under the justifica- crimination against this category of market policy: boosting tion of international competition and worker is in force in countries like employment as the main the need to maintain employment. Finland, France, Greece, Italy, Aus- target There is first more flexibility tria, Portugal and Spain. Indeed, concerning maximum working hours social partners have played a major Governments have played a central with new legislation and collective role in elaborating collective agree- role in encouraging flexibility meas- agreements for instance in Austria, ments in what has become – because ures at enterprise level, generally France, and Germany allowing of its increasing size – a ‘sub-sector’. with the aim of boosting employment increases to such limits. Decentrali- and reducing unemployment. Social sation of social dialogue also con- Action has also been taken against partners have also been active at all tributes to greater individual flexibility false self-employed status, in partic- levels, national, branch and enterpris- on working time. Government meas- ular in the Member States that joined es, depending on the countries. ures regarding retirement are also the EU in 2004. Indeed, it is prohib- having an impact on the labour mar- ited by law but quite widespread in Facilitating exit and entry … ket for the oldest workers. After hav- Hungary, for instance for truck driving encouraged early retirement in ers, security guards, journalists or in In their attempt to fight unemploy- the restructuring process, most gov- the building industry. It is also the ment, many governments in the EU ernments have radically changed case in the Czech Republic in several have adapted their labour markets in direction, promoting postponement branches of the service sector. In a way that also promotes the different of the retirement age in order to cope these countries as in others, meas- forms of atypical employment: tem- with the consequences of an ageing ures have been taken to reinforce porary work, part-time, self-employ- society and the problem of financing labour inspections and sanctions. ment, etc. However, whilst this may pension and social security systems. Undeclared work is also an area lead to increased insecurity for work- where governmental policies have ers concerning their future contrac- However, governments as well as been active. The case of Bulgaria tual relationship with the enterprise social partners have not moved in deserves specific attention. The it may also lead to better security if only one direction – encouraging country managed to reduce drastically this policy is recognised as effective more flexible forms of employment the number of employees without in ensuring low unemployment rates. – but also in the other, that is, limiting any form of contract (from 115 800 The best- and best-known – exam- the risks associated with these workers in 2000 to 73 400 in 2005). ple is Denmark, which has taken a employment forms. series of different measures to Finally, many countries have tried increase rotation between jobs by …while limiting the social cost of to regulate fixed-term contracts removing obstacles to hiring and fir- ‘flexibilisation’ before and after the 1999 EU Direc- ing employees. This has not lead to tive on the matter. Spain, for job insecurity as it has been based on In the UK, often quoted as an example instance, has tried to limit the scope a solid activation and safety net (the of labour market ‘flexibilisation’, the and excesses of short-term con- so-called Danish flexicurity system). government recently decided to bet- tracts through three reforms of the ter monitor and control the activities labour law in 1994, 1997 and 2001. The pace, the focus and the depth of of the so-called gang-masters (who More recently, the Spanish Ministry reforms aiming at introducing more specialise in the deployment of over- of Labour proposed reforms that flexibility have been quite disparate seas workers). In 2005, it established will allow temporary employment among countries. For instance, the a new agency, the Gangmasters contracts to be converted into per- probationary period after recruit- Licensing Authority, which has the manent ones, reducing the high ment is quite diverse among member specific remit of curbing the number of temporary contracts. countries. From an average of 12 exploitation of workers in industries This would apply to workers who months in the UK, 9 to 12 (depend- such as agriculture and horticulture. have two or more years’ experience ing on the category) in Denmark, to It also stepped up efforts to regulate in any particular company and to 1 to 2 weeks in Italy or 1 to 2 months the whole interim agency world. workers who were originally in France. Germany has also promot- Interim agencies’ work has been recruited by temporary work agen- ed flexibility, notably through finan- heavily regulated in most countries. cies. A preliminary agreement on cial and tax incentives but also The Czech Republic introduced a the proposals was signed by the through recourse to new employment law in 2004 protecting temporary Spanish government, the employ- forms: temporary work, self-employ- workers in particular from the non- ers’ organisations and the unions in ment and part-time work. payment of social and health insur- April 2006. Polish law restricts the ance; Germany implemented its first use of successive fixed-term con- An increase in working time is legislation on the matter in 1972. In tracts and requires employers to dawning in many countries, mainly the EU-15, the principle of non-dis- inform temporary workers about

143 Chapter 7 Industrial Relations in Europe 2006

vacant permanent posts in their Protecting the working poor 2. Identifying enterprises. Interestingly, some collective agreements have been very General wage moderation is encour- structural innovative. A national agreement aged in many Member States. Nev- drawbacks has been concluded for 40 000 ertheless, wage regulation by gov- employees in Spain’s telemarketing ernment as well as social partners is sector providing more security on a today more focused on issues like The introduction of more flexibility wide range of working conditions. discrimination and low wages. Sim- aims primarily at increasing or sav- It is stated for instance that the total ilarly to employment flexibility, ing jobs. In other words, flexibility number of structural staff on fixed- wage containment is often consid- does not refer primarily to job quali- term contracts should not exceed ered a part of policies aimed at ty. This section addresses the job 40% of the permanent work- boosting employment. Low pay is in quality issue, making a distinction force.(219) However, agreements on any case an indicator of low quality between two main potential draw- job security generally take the form jobs whose consequences in terms backs in the quality of employment: of concession bargaining introduc- of vulnerability should be analysed the long-term prospect of the jobs ing more flexibility in working differently depending on the charac- created and the sustainability of the time, work organisation or wages in teristics of particular jobs. In this working conditions of such jobs. favour of maintaining or increasing context, the minimum wage appears the number of jobs. Agreements of is one of the most important income the Spanish type directly address- policy tools.(220) 2.1. Poor long-term prospects ing the question of job contracts are for the jobs created less usual. Table 7.3 shows that minimum wages have been increased in most countries The basic reasoning behind the flexi- Working conditions for women are over the period. Progression has been bilisation of labour contracts is that particularly affected by family con- particularly high in new EU Member even short-term experience acquired straints. Alongside greater flexibility, States and candidate countries with by a series of precarious jobs may governments have also tried to ensure the exception of Poland in the more facilitate access to more secure jobs. a better work and family-life balance recent period. The main risk with temporary con- through legislation on, for instance, tracts is that they may constitute traps parental leave, following EU direc- The percentage of workers covered that would undermine the long-term tives in this regard. Legislation also by the minimum wage show that its employability of these categories of tries to avoid the risk that working role in protecting low- paid workers workers. This is this potential draw- part-time leads to lower standards in is quite variable among the coun- back that is analysed in this section. term of conditions of employment tries. In France, Latvia and Romania, and particularly wages and social a significant proportion of workers is In most countries, temporary jobs, benefits. Conversely a Danish law directly affected by the minimum whatever the contracts, are low- states that an employer cannot fire an wage. In the other countries its skilled jobs. In addition, while tradi- employee who refuses to accept a impact on low wages seems more tionally restricted to a few specific part-time job. Measures regarding limited. As more women than men sectors, like retail or agriculture, it is extended welfare services and espe- are likely to have a low or very low now spreading to all economic cially childcare facilities, which have wage, increases of minimum wages activities. In Germany, the rise of been implemented in most countries, benefit more to women that men, temporary work has mainly occurred could also greatly help the flexibility reducing discrimination at the low in the low qualification segment of of the labour market. levels of the wage scale. the labour force.(221)

(219) EIRR, July 2005, pp. 27-29. (220) F. Eyraud and C. Saget, The fundamentals of minimum wage fixing, ILO, Geneva, 2005.

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Table 7.3: Statutory minimum wages in Europe (2004)

Level of MW as % of AW Change of MW in % % of full time workers on MW 2001/2004 2001/2006 total men women BE 46 (2002) 4.0 8.2 : : : CZ 39 17.5 (2002/2004) 32.8 (2002/2006) 2.0 2.1 3.0 EE 35 34.1 (2002/2004) 62.2 (2002/2006) 5.7 4.8 6.6 EL : 14.3 24.9 : : : ES 38 32.3 45.8 0.8 0.6 1.1 FR : 6.3 8.2 15.6 IE 50 17.2 28.1 3.1 2.7 3.9 LV 39 33.3 50.0 13.6 (2003) 13.1(2003) 14.1 (2003) LT 38 16.3 27.9 12.1 LU 50 8.8 16.5 18.0 15.8 21.8 HU 41 6.0 (2002/2004) 25 (2002/2006) 8.0 9.5 6.4 MT 49 5.0 (2002/2004) 12.1 (2002/2006) 1.5 1.7 0.9 NL 46 7.2 7.9 2.1 1.6 3.8 PL 35 8.4 18.3 4.5 4.2 4.8 PT 41 9.2 15.4 5.5 4.0 7.5 SI 44 32.1 45.2 2.0 SK 34 9.2 23.9 1.9 0.8 1.2 UK 38 9.8 24.4 1.4 1.3 1.7 BG 43 37.9 83.9 5.1 (2002) 6.1 (2002) 4.2 (2002) RO 34 60.0 (2002/2004) : 12.0 11.4 12.8

All the figures are from 2004 unless otherwise indicated. Source: Eurostat (New Cronos db Population and social conditions/Labour market/Earnings/Minimum wages), extraction date 4.9.2006 More to read: Eurostat, Statistics in Focus 9/2006 – Minimum Wages 2006.

The same is true for temporary 1998 to 43.7 in 2005 in EU-15). tracting of temporary workers from agency work. In France, it is highly employment agencies. By allocating concentrated on low-skilled blue- Even though the situation varies the lowest skilled tasks to temporary collars and young workers and even among countries, the percentage of workers, these have fewer opportuni- if fixed-term contracts can be used workers on very short contracts is ties to increase their skills through as a screening device for hiring, they increasing in most countries. In addi- on-the-job training and they risk are also more often ending in unem- tion, temporary contracts serve as a being trapped in a low-skilled jobs ployment. Similarly, in the UK, stepping-stone primarily for educat- cycle. But this is also true of formal agency jobs are mostly found in lowed workers, while for workers with training. In most EU countries to-middle skilled occupations such less education and for women, tem- temporary workers have much less as clerks, secretarial staff, routine porary contracts are often a dead-end access to training. A recent study has operative, numerical clerks and job. shown that in EU15, enterprises despatch workers. Therefore, low- invest less in training for temporary skill jobs make it difficult for these Studies in the UK suggest(222) that workers.(223) categories of workers to acquire during the late 1990s employers enough qualifying experience in reduced the scope of their internal However, some countries have tried order to find better jobs. In 2005 in labour market (with relatively secure to cope with this situation. In Ger- the EU, 42.5% of fix-term contracts and well-paid jobs) and shifted many many, in 2004, the government were less than 6 months and the per- jobs to the secondary labour market, together with the social partners centage is increasing (from 36.2 in entailing in many instances the con- agreed on a three years national

(221) Jahn and Rudolph, 2002: ’Zeitarbeit _ Teil I: Auch für Arbeitslose ein Weg mit Perspektive’, IABKurzbericht No 20 from 28.8.2002. and ‘Zeitarbeit _ Teil II: Völlig frei bis streng geregelt: Variantenvielfalt in Europa’, IABKurzbericht No 21 from 29.8.2002. Bundesanstalt für Arbeit. (222) Grimshaw, D. and Carroll, M. (2006) ‘Adjusting to the National Minimum Wage: constraints and incentives to change in six low paying sectors’, Indus- trial Relations Journal 37 (1) pp. 22-47. (223) Nienhüser W. and Matiaske W., Temporary agency work in 15 European, Industrial Relations Journal, January 2006, pp. 64-77.

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Figure 7.11: Share of employees on fixed-term contracts of less In the same vein, it should be noted than 6 months in Member States, 2005 that in many countries the public sector has jobs with low wages as well 90 90 as precarious employment, particu- 1998 2005 larly in the education and health sec- 80 80 tors. In addition, the subcontracting of some public services to the private 70 70

m contract sector could lead to a situation where 60 60 this outsourcing from the public to ed-ter

ix the private sector may increase the 50 50 incidence of low paid jobs. ees on f y 40 40 An increase in working hours, in 30 30 shift and night work, in unsocial hours and other flexible working 20 20 time arrangements has an important % of all emplo impact in two areas: health and safety 10 10 and reconciling work and family life. (228) 0 0 Recent studies have shown that SI FI IE IT SE ES EL LV LT PL EE BE FR PT SK

AT these changes that are accompanying LU DE NL BG CY HR CZ UK RO MT DK HU EU-25 EU-15 NM10 new ways of organising work have, Eurostat, EU Labour Force Survey. in many cases, increased work intensity(229). The increased intensity of work has direct effects on health and pact for training which contributes gories of workers who need it the safety. At the same time, there is a to drastically reduce the surplus of most: low educated, women, immi- common trend in most EU Member vocational training applicants.(224) grants and temporary workers.(226) States the number of occupational In France, a national agreement accidents that are serious or fatal has and a new law introduced in 2003 fallen, generally due to better pre- and 2004 have tried to stimulate 2.2. Inequality in working vention and information at enterprise training by increasing the employ- conditions level. ers training levy. But the most significant measure is the establish- Non-standard jobs often lack long Accidents and work-related illnesses, ment of an ‘individual right to term prospects and may have draw- however, are more widely extended training’. Indeed, employers still backs regarding other conditions of across sectors, with a notable an decide on the content of the train- employment thus questioning their increase in the number of accidents in ing making sure that it fits enter- social and economic sustainability. the services sector. At the same time, prises needs. This training runs The issue is a serious one as job-cre- there is an increase in the number of during normal working hours. In ation is mainly occurring in the sectors psychosocial illnesses due to stress addition, the reform has introduced that tend to accumulate lower stan- and a poor psychosocial environment. an individual training leave allow- dards of working conditions, namely In Denmark, the number of cases ing the employee, who is granted retail trade, hotel and restaurant, other increased from 3% of total occupa- leave, to decide on the content of service activities and domestic staff.(227) tional diseases in 1996 to 16% in the training.(225) It remains that Not only is the share of temporary 2003. The reasons for this are diverse those who suffer the most from workers the highest, but wages are also and not only linked to the work itself. insufficient training are the cate- comparatively low. The difficulty of balancing private

(224) Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (2005): Die Chance nutzen _ Reformen mutig voranbringen, Jahresgutachten 2005/06. (225) For a more detailed summary of the reform, see the French monograph. (226) OECD, Employment outlook, 2003, Paris. (227) In these sectors, respectively over the period 2000-2005, job growth was in EU-25: +0.7, +2.8, +2.4 and +6.2 and job growth was negative in most of the other sectors. (228) See for instance Karin Halldén, ‘Globalization, work intensity and health inequalities: A cross-national comparison’ (Forthcoming in I. Lundberg (ed.): Work and social inequalities in health in Europe, 2005). (229) Work intensity is rather complex to identify, however, and even more complex to assess statistically. However, there are different sources of intensification: one is the pace of work that is working rhythms; another concerns the quantitative demands or workload resulting from a large number of assignments and deadlines. A rapid pace of work does not necessarily involve many deadlines. Finally, one should also try to identify qualitative aspects such as motivation, relations between colleagues, teamwork, and so on.

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The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 7

and working life also plays a major Decentralisation of collective bargain- imply a long-term problem. In addi- role in the matter. Working time flex- ing may have an indirect negative tion, while certain risks of vulnera- ibility may help resolve the dilemma impact on vulnerable workers. bility can neutralise each other, risks but could also be a negative factor Taking the case of wages, in Ger- can also cumulate. When risks are when employees have a limited say in many, where the extension procedure frequently accumulated by certain work organisation. Obviously the risk is not as widely used as in Finland or categories of workers they may be is high for precarious and/or unpro- Italy, the percentage of workers cov- channelled along some sort of ‘vul- tected workers. Working time flexibil- ered by branch agreements in retail nerability or risk vectors’; the com- ity, whatever the form, could increase for example is 55.(231) In Sweden and bination of risks threatening these new health and safety risks which Denmark collective agreements are workers with remaining in some may undermine the progress made on not as protective for temporary con- long-term exclusion situation or trap. traditional work accidents. These new tract workers – especially those risks should be analysed not only at working through interim agencies – work but also in conjunction with the which explains the lower wages, 3.1. Individual risks do not constraints of the private life. The way longer working time and poorer con- always imply exclusion flexible work, or shift work is ditions at work in general. At the organised can thus make the whole same time, working under individual Unemployment is undoubtedly the difference for work and family contracts or working longer and greatest risk. To remain excluded balance, workers’ satisfaction and irregular hours (often at home if self- from the labour market often leads thus productivity. employed, or at night) also diminish- more quickly and deeply to social es workers’ participation in social exclusion. Employment insecurity, In a context of high unemployment dialogue. This is sometimes a prob- however, is another risk — notably and very low wages parents could be lem for the union movement. A through the multiplication of short- obliged to accumulate working hours recent study made by the Finnish term contracts or self-employment in order to sustain their family. It is Institute on employees found that with a higher risk of unemployment, only in the public sector and in one important factor of the decrease etc. Other risks are more related to certain activities of the tertiary sec- of union membership in Finland is employment quality, like low wages, tor that parents have the choice to the fact that youth have difficulty to working long hours or at unsocial work less and thus have more flexi- find a permanent job.(232) hours or under stressful working bility in reconciling work and family. rhythms, as well as being confronted In conclusion, certain types of flexi- with higher health and safety risks. Another example is the British econ- bility arrangements could produce No access to training, as well as not omy that is suffering from a ‘hidden drawbacks damaging workers and having access to direct participation brain drain’ due to the very low pay the quality of jobs. This is why it is channels or social dialogue and col- and poor career prospects for part- essential that employment policies lective agreements may obviously time workers, who are predominantly and collective agreements give due also influence all other conditions at female; a process that would lead to consideration to these qualitative work. These individual risks have significant productivity losses. As a aspects of jobs. The following and been changing both in nature and result most part-timers were found to last section tries to identify at which also in their scope. They often hit the work well below their potential, stage and under which circumstances same – most vulnerable – categories leading to a significant underuse of low standard working conditions put of workers but also may affect new talent applying to some 5.6 million workers at risk. profiles of workers as well. In terms part-time workers or about a fifth of of the sustainability of employment- the entire British working popula- creation and quality of work as well tion. 20% of those reporting working 3. Vulnerability: as with a view to fostering more under their potential also indicated cohesion in society it would seem to not to have found any part-time job long-term traps be important to keep a close eye on that would use their skills, qualifica- for some groups developments with regard to the fol- tions or experience, and nearly a lowing groups on the labour market. fifth feel held back because career These developments deserve also opportunities with their current When a worker is exposed to one major attention in collective bargain- employer are limited.(230) type of risk this does not necessarily ing and social dialogue at all levels.

(230) According to the recent report Britain’s hidden brain drain, Equal Opportunities Commission, London, 2005. (231) Euronline, Minimum wages in Europe, European Foundation, 2005, p. 15. (232) UIMM, Social International, decembre 2005, p.18.

147 Chapter 7 Industrial Relations in Europe 2006

(1) First of all, groups usually consid- Roma are the most affected. In Subcontracting, which often brings ered to be the most vulnerable contin- Bulgaria ethnic minorities such as lower working conditions is also a ue to remain under continuous expo- Roma or Turkish have a much lower process that deserves particular atten- sure to the above identified risks. level of employment security. Immi- tion, especially when it is practiced on grants also appear to meet difficul- a large scale. More than 90 per cent of Clearly, women are more affected by ties in the world of work of many Romania’s production in clothing is low wages (in EU-25: 33.8% of Member States. In Sweden for the result of sub-contracting for both women are low paid against 17.4% instance there is a high percentage of large multinational groups and small of men) as well as young workers (in working poor among the self- foreign enterprises. A similar process EU 25, 40.4% of workers under 30 employed, a category dominated by is also observed in Bulgaria not only are low paid, against 19.3% for immigrants who have great difficul- in textile but also wood industries. workers above 30).(233) They are also ties finding a place in the regular often over represented among atypi- Swedish labour market. (3) Risks do not necessarily lead to cal forms of employment. vulnerability. The case of low pay is Lower educated workers are also rather illustrative. Moreover certain Young people continue to remain a more at risk. This seems to be the case risks can compensate other risks.In category at risk. They are particular- for instance with regard to interim the UK 2.1 million people reported ly exposed to precarious labour con- agency work with the low-skilled tem- that they ‘are doing lower-skilled tracts and low wages. Measures porary worker often being compelled work than they are capable of because taken to secure employment may fur- to accept less favourable conditions it is less demanding and stressful than ther lower their working conditions. and thus being more vulnerable. jobs they have had in the past’.(236) In The temporary work contracts this specific case the risk of over already mentioned mainly concern (2) At the same time new develop- stress has been neutralised through a young employees aged under 30. ments put workers at risks. new job that may however bring new Almost one third of the young types of risks such as risks of lower employees in the EU work on a fixed A new risk, in particular in some new pay or of inadequate training opportu- term contract. (see Figure 7.2 for market economies from central and nities. In other cases long working more detail). eastern Europe, is related to the time can be compensated by higher restructuring process and privatisa- wage compensations. Older people are also more at risk.(234) tion that has led to massive layoffs and They often have more problems in thus increased both the insecurity of Other examples can illustrate how facing changes in organisation, on employment and the unemployment one risk can counteract another one. the labour market and working risk. This has particularly affected While it is true that the self-employed conditions. A new form of atypical young people, older people, but also for instance in Denmark – especially employment contract had been intro- women. Restructuring also increases in construction, agriculture, services duced in Germany. Workers above 52 the risk for managers and white-collar and retail – are more affected by more could easily and repeatedly be workers, including a health risk from difficult working conditions – by offered short-term contracts. But this more pressure at work. lower pay, less access to training, and regulation was found to violate the also much longer working time, antidiscrimination principle by the Employees in the services sector involving greater stress, health conse- European Court of Justice. Physical seem to be increasingly confronted quences and work/life balance prob- conditions at work also impact by different types of risks. In this lems – their psychosocial work envi- directly on their employment, and sector night work (cleaning teams ronment was found to be more often on their decision to retire as etc.) and unsocial hours over the satisfactory as they report more varia- shown in the UK and Sweden.(235) week-end (in supermarkets and other tion in the tasks performed. shops) are the most frequent. More- In some countries barriers to entry to over it is in services that there is the In Sweden interim agency work has the labour market are particularly highest proportion of working poor led many immigrants to accept strong for minority groups. In Hun- (cleaning or other services to house- adverse working conditions but has gary, Slovakia and many other new holds or elderly and disabled people nevertheless allowed them to inte- and future EU Member States the etc.). grate into the labour market – thus

(233) All the following figures are from the Structure of earnings survey, 2002. (234) See the results of the 57th Eurobarometer survey of 15 European Union countries in A. Marsh and M. Sahin-Dikmen: Discrimination in Europe, 2003. (235) ‘Factors affecting the labour market participation of older workers’, Humphrey, A., Costigan, P., Pickering, K, Stratford, N. and Barnes, M., UK Department for Work and Pensions Research report No 200, 2003. (236) UK Equal Opportunity Commission, op. cit.

148 The social partners as membership organisations: an overview of forms and trends in the Member States Chapter 7

reducing their risk of remaining remain trapped along what could be workers are low educated whereas the unemployed. In certain new small called ‘vulnerability vectors’. percentage for high educated is 6.8, service businesses of the new and the gap being again generally much future EU Member States high wages For example, low pay does represent a smaller in high wages economies. are associated with high employment possible entry into a vulnerability vec- insecurity. Highly qualified young tor. Women are more affected by low A specific at-risk process regarding workers generally get very good jobs wages, something however that should women is also related to the combina- and are well paid but suffer from very be analysed together with the huge tion between low pay and part-time high stress. differences that exist between perma- work. Involuntary part-time work nent and temporary workers, women associated with the increasing rate of being over represented among this lat- divorce can create vulnerable situa- 3.2. Vulnerability vectors ter category of contracts. Indeed the tions for women. Studies and statistics leading to social exclusion wage precariousness factors are show that poverty mainly hits single cumulative, the worst pattern being mothers. In Sweden, the number of Through a combination of risk young women with temporary con- single parent households has increased factors, however, workers may find tracts. Education can then act as an by 30% during the last decade, 80% of themselves in a situation of long- additional discriminatory factor on the these single parents being single moth- term social exclusion when they top of it: in the EU, 31.7% low paid ers. Low pay and part-time jobs may

Table 7.4: Employment rate of women aged 25-49 with and without children under 6 and distribution by hours worked, 2005

No child Working Working 1 child Working Working under 6 more less than under 6 more than less than than 30 30 hours 30 hours 30 hours hours BE 75.8 67.9 32.1 70.7 65.4 34.6 CZ 85.5 96.4 3.6 38.7 87.8 12.2 DK ------DE 77.5 62.3 37.7 52.5 38.8 61.2 EE 86.3 94.4 5.6 53.7 88.5 11.5 EL 61.1 89.5 10.5 55.5 87.2 12.8 ES 64.0 80.6 19.4 57.3 72.4 27.6 FR 78.7 79.6 20.4 68.3 74.6 25.4 IE ------IT 62.2 72.4 27.6 54.8 63.6 36.4 CY 72.3 89.0 11.0 69.0 86.1 13.9 LV 81.8 92.1 7.9 56.0 86.2 13.8 LT 83.7 87.1 12.9 75.6 80.9 11.0 LU 73.7 70.3 29.7 65.7 59.6 40.4 HU 77.3 96.0 4.0 38.6 90.9 9.1 MT 33.1 72.5 27.5 29.4 75.7 24.3 NL 79.4 50.0 50.0 71.1 24.5 75.5 AT ------PL 70.9 86.3 13.7 57.9 81.2 18.8 PT 77.0 90.6 9.4 77.9 92.7 7.3 SI 85.1 96.0 4.0 84.9 96.7 3.3 SK 70.9 97.0 3.0 42.1 96.8 3.2 FI 84.3 91.4 8.6 71.2 88.4 11.6 SE ------UK 80.4 69.4 3.6 64.5 44.4 55.6 EU-25 75.1 73.6 26.4 60.4 62.0 38.0 EU-12 74.7 91.3 29.7 61.6 58.9 41.1 NM-10 76.5 91.3 8.7 51.0 85.3 14.7

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Chapter 7 Industrial Relations in Europe 2006

therefore lead to unsustainable societal In fact while the employment rate of Individualisation of employment problems. Families with a high number women without a child under 6 was conditions and pressure on compa- of children are also at greater risks for in 2005 slightly higher in the new nies and workers from increased instance in Poland or the UK, but also Member States than in the EU-12 – competition especially combined elsewhere in the EU.(237) 76.5 per cent compared with 74.7 per with other societal developments – cent – this rate drops to 51 per cent such as housing, changing family Atypical employment can constitute a as soon as women have a child under structures, with an increase in the stepping stone to the labour market 6 compared with 61.6 per cent in the number of single parents, and oth- and thus represent an essential tool for EU-12. In Hungary it even drops to ers – have put many workers at risk escaping from vulnerability and social 39 per cent, and in the Czech Republic of social exclusion and have exclusion. On the other hand it can and Slovakia 39 and 42 per cent increased the number of the work- also represent entry into a vulnerabili- respectively (Table 7.4). ing poor. ty vector when combined with other adverse conditions. For young work- It thus seems to be essential to pay ers, for instance, atypical employment 4. Conclusion more attention to the vulnerability seems to have influenced not only vectors. In this respect, the quality of their wage levels but also several fam- Employment-creation is key to jobs created is one important factor, ily-related matters. For instance the ensure prosperity in the EU. Howev- in terms of their durability, skills combination of low wages and irregu- er, recent employment creation has development opportunities, working lar work contracts often impedes them also brought about a rise of atypical conditions, including wages, as well from having access to housing. and precarious employment. The as work and family life balance but Joint Employment Report 2005/2006 also on the impact that jobs have on Difficulties encountered by women of the European Commission and the longer-term career and live prospects in reconciling work and family life Council notes that the current bal- of the employees. may also be significant. In some new ance between flexibility and security Member States tougher labour mar- in many Member States has led to Increased vulnerability may well kets seem to represent one major increasingly segmented labour mar- question in the end the social sus- cause of lower employment rates of kets, with the risk of augmenting the tainability of working practices and mothers with young children. In a precariousness of jobs, damaging deteriorate social cohesion. If context of high unemployment, with sustainable integration in employ- employment was only created men ready to accumulate long hours ment and limiting human capital through new forms of flexibility at for low wages, the new employers of accumulation.(238) This situation may the margin of the labour market or private businesses hesitate to employ lead to the creation of vulnerability if these were not accompanied by women who might leave to have chil- traps not just for people that are new forms of security this might dren and thus not only interrupt their excluded from the labour market but have a negative influence on the activity but also claim maternity also for those that actually are long term economic growth poten- leave and benefits. employed, even if only occasionally. tial and employment enhancement.

(237) Economie et Statistiques, Les approaches de la pauvreté à l’épreuve des comparaisons internationals, No 383-384-385,INSEE, 2005, p. 60. (238) Council (Employment, Social Policy, Health and Consumer Affaires) (7347/06) Joint Employment Report 2005/2006.

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Chapter 8 Industrial relations and economic performance: an overview of research results(239)

The Lisbon agenda offers the strategic then examine the way industrial rela- terms. In the context of an increas- vision of a Europe which would rein- tions are regarded as factors of ingly internationalised economy, force its social cohesion while striv- performance in the main empirical other efforts are devoted, explicitly ing to become the most competitive and theoretical studies. In a final or implicitly, to the search for indica- knowledge economy. The social part- section, we shall attempt to define tors of economic ‘attractiveness’, as ners are invited to participate in the and evaluate the place accorded to is the case with the World Economic implementation and evaluation of industrial relations in the Lisbon Forum indexes in particular. this project. Notably the industrial Strategy with regard to the issues relations’ and related dimensions of arising from changes in the model of Table 8.1 presents an analytical sur- competitiveness, notably those performance and social development. vey of the most prominent indica- depending on social dialogue and tors. These must be viewed with cau- involving its players, constitute the tion, however. The more we depart subject of this chapter. 1. Measurements and from the traditional measurements of national accounting and internation- The productive nature of social international al statistical standards and the more expenditures is an old question, as is comparisons of we add new dimensions, the more that of the nature and measurement the indicator is fragile and the rank- of wealth and private and social performance ings subject to doubt. The quality of ‘well-being’. Underlying the exami- the sources, the choice of the data, nation of the foundations of growth Economic efficiency is generally the extent of the fields covered by and competitiveness, that of the measured in terms of the increase in the variable studied (well-being, European social model becomes all the wealth produced. The traditional human capital, social capital, securi- the more crucial insofar as the pres- measurement of this increase is the ty, poverty, health, education, etc.), ent economic growth regime is often GDP and its derived aggregates. The the different kinds of weights used in accompanied by an intensification of measurement of national accounts, the composition of the indexes, the competition and inequalities.(240) It is instituted at the close of the Second fragility of certain forms of calcula- legitimate to aspire to a social World War, is universally employed tion, or even the use of opinion polls, Europe, in the sense of a model of by international bodies but subject to make the results uncertain and often social equity, simply because this growing criticism. unstable. equity is an intrinsic value, that of justice. But economic efficiency is There are now numerous alternatives This list is not exhaustive. The number becoming a structural imperative, to the increase in the GDP as the sole of indicators is exploding and their and the social dimension has to be measurement.(241) These have essen- evaluation is far from simple. If none justified not only in its own terms tially sought to broaden the classic of them explicitly takes into account but in terms of economic efficiency approach by integrating a large number the quality or characteristics of and as a productive factor. Over the of other aspects of development – industrial relations, most integrate long run, can social expenditures be human, social, health and environ- information on labour and social considered solely as costs or can they mental. Behind this proliferation of security standards. The weighting also be seen as investments? This indicators, however, lies dissatisfac- and monetarisation of qualitative question is addressed to all the tion with the fact that traditional variables is sometimes combined economic and social players and in measurements do not represent, or with subjective data. Certain bodies particular, the partners of the no longer represent, the related ele- propose spreadsheets and invite European Social Dialogue. ments of growth and social well- the reader to simulate alternative being. Some of them, notably the weights. We shall begin by considering the UNDP’s human development’ indi- main indicators evaluating and rank- cators, seek to estimate the outcome’ The media success of certain indexes ing the different countries in terms of of growth and not just the direct should not mask the methodological growth and performance. We shall reading of performance in economic difficulties and numerous criticisms

(239) This chapter was drafted by Professor Henri Nadel, University of Paris VII. (240) Cf. Com (2005) 299 final. (241) J. Gadrey and F. Jany-Catrice (2005) Les nouveaux indicateurs de richesse, Paris, La Découverte.

151 Chapter 8 Industrial Relations in Europe 2006

Table 8.1: Measurement and international comparison of economic performance

GDP,GNP,etc. National account. ‘…measures consumption incompletely, ignoring the value of leisure and longer life GDP/ capita, etc. International spans, … ignores the value of accumulation for future generations.As an average, comparability GDP per capita gives no indication of the likelihood that an individual will share in prosperity nor of the degree of anxiety with which individuals contemplate their futures.’ Osberg and Sharpe GCI. (Growth World economic Three pillars: quality of macroeconomic environment, state of public institutions, techno- Competitiveness index) forum J. Sachs and logical readiness. Combination of hard data and executive opinion survey, distinguish- J. Mac Arthur ing core and non-core innovators, taking account of judicial independence and levels of corruption. Little room for labour standards. Tax Misery Forbes Cumulates the top highest marginal rate in the various taxes. Index of ‘attractiveness’. GCI’ (Global IMD, Institute for Ranks the ability of nations to create and maintain an attractive environment for competitiveness index) Management investment. Built on a holistic approach of development encompassing multiple vari- Development ables of economic growth, labour standard, employment, education, productivity and innovation. HDI (Human UNDP ‘going beyond income to assess the level of people’s long-term well-being’. Development Index) Index of Social Miringoff ‘well-being of youth, accessibility of healthcare, the quality of education, and the ade- Health quacy of housing’ IWB, (Index of Osberg and Sharpe, Effective per capita consumption flows. Net societal accumulation of stocks of Economic well-being) Center for the Study productive resources, Income distribution, economic security. of Living Standards WISP Richard Estes, Education, health status, women’s status, military expenditure, economy (including (Weighted Index of University of employment and income distribution), demography, environment, social chaos (politi- Social Progress) Pennsylvania cal rights, corruption, war victims, refugees), cultural diversity and welfare effort. 1970-2000, European ranking PSI (Personal Canadian Council on Economic, health and social welfare security. security index) Social Development Compares ‘objective’ indicators of personal security with more subjective results obtained through polling data.

directed at the very principle of between individual States of the US firms the high ranking of the coun- ranking and standardisation. And the can also be of the same order as those tries of northern Europe, which com- utilisation of these comparative of the international index. bine the criteria of performance and indexes is also called into question. A quality of social relations, although given country can thus receive an Table 8.2 illustrates the diversity of considerable differences are found overall low rank because of a given the results provided by certain indi- there too. Finland (which is in 6th attractiveness indicator when at sec- cators with regard to the competi- position in the IMD for 2005, behind toral or territorial level there are many tiveness and performance of the the first-ranking US) comes out on contrary examples of foreign invest- European economies. (For Table 8.2 top for the Europe of 15. However, it ments. The ‘Tax Misery’ index, for and throughout the rest of the chap- is ranked ninth in the ‘Tax Misery’ example, is a form of benchmarking ter, we have limited ourselves to the index, where Ireland arrives in first which ranks countries in function of Europe of 15 for reasons of homo- place. The countries of the centre and the simple adding up of the marginal geneity and availability of sources). south of the Union are relatively dis- tax rates (such as income and wealth persed depending on the indicators. taxes, social security contributions At first glance, Table 8.2 brings out Thus, a typology distinguishing the and VAT). On this basis, Hong Kong heterogeneous results from one indi- UK and Ireland from the countries of has the lowest ranking and arrives in cator to another with regard to the the north, centre and Mediterranean first place and France in last place. ranks of the different countries in the would be confirmed by the ‘Tax Mis- But the ‘Tax Misery’ differences world indexes. A second look con- ery’ index, where the first two come

152 Industrial relations and economic performance: an overview research results Chapter 8

Table 8.2: Measurement and international comparison of economic performance, EU-15

GCI/ 2005 GCI/ 2005 IMD / 2005 IMD / 2005 Tax Misery WEF WEF/ EU World EU (15) Index 2003 (15) ranking ranking Forbes / ranking EU(15) ranking BE 31 13 24 10 14 DK 4 3 7 2 5 DE 15 6 23 9 4 EL 46 14 50 14 10 ES 29 11 38 12 8 FR 30 12 30 11 15 IE 27 10 12 4 1 IT 47 15 53 15 12 LU 25 9 10 3 3 NL 11 4 13 5 7 AT 21 7 17 7 11 PT 22 8 45 13 6 FI 1 1 6 1 9 SE 3 2 14 6 13 UK 13 5 22 8 2

Sources: Growth Competitiveness Index (GCI), World Economic Forum (WEF), Institute for Management Development (IMD), Forbes. out ahead, but less clear-cut on the 2. Competitiveness opment – sometimes stemming from basis of the WEF index.(242) non-measurable externalities (the and economic universal advances of knowledge). Table 8.3 compares UNDP data, and performances: notably its ‘Human Development’ And this is the problem: there is no indicator for 2002 and 2003, to the the place of direct, immediate causal connection classic GDP indexes (per capita industrial relations between democracy and social secu- GDP, in purchasing power parities). rity on the one hand and performance on the other. But there is no contra- Although the human development As shown by attempts to define diction either. The European social indicator is more pertinent to devel- alternative or complementary indi- model, even if it is not always well oping countries, because it attempts cators relative to those of the stan- defined, offers an undeniable pro- to draw on the social and education- dard monetary wealth used to com- gramme for a model of democracy al factors of economic take-off, its pare different countries worldwide, (which is not always the case for dissemination and reputation are the social dimension of development competitive, high-performance coun- instructive for our argument. Over- is sought after as a condition of tries elsewhere in the world) whose all, the European countries are at the development or even attractiveness. members share the common values top of this world index, which gives Thus, education, training, funda- of citizenship, social rights, cohesion decisive weight to the democratic mental and applied research, and social protection. The Charter of basis of social rights and labour and ‘human capital’, ‘social capital’, Fundamental Rights of the European employment standards in the Union. health and so on are seen by the Union, along with the other texts of The indicator turns out to be unsta- international institutions as motors EU Treaties, clearly marks this Com- ble, however: for example, from one of performance and competitive- munity advance. These values consti- year to the next, Luxembourg and ness. They are at once inputs of tute the exceptional nature of the Austria are classified in a very dif- growth and results of processes – of European project and the Treaties call ferent way. long-term or very long-term devel- upon the partners of the Social

(242) There is a growing literature on the typology of welfare States in Europe. Two broad ranking systems may be singled out. The one stemming from the framework established by G. Esping-Anderson (1990) considers three models while the other would add a fourth ‘anglo-saxon’ model. Most authors also insist on the hypothetically dependent nature of these indexes: the historic specificity of the national trajectories often wins out over the illusion of a conversion towards one, two or three models of social protection systems. The typologies, for all their practical interest, should be used with caution.

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Table 8.3: Human Development Index and GDP, EU-15

HDI 2002. HDI HDI 2003 HDI GDP/Cap GDP/Cap World 2002: EU (World 2003: EU (World EU (15) ranking (15) ranking) (15) ranking) ranking ranking ranking BE 6 3 9 4 12 4 DK 17 10 14 7 15 7 DE 19 11 20 12 13 5 EL 24 13 24 14 29 14 ES 20 12 21 13 23 13 FR 16 9 16 9 15 8 IE 10 5 8 3 3 2 IT 21 14 18 11 17 9 LU 15 8 4 1 1 1 NL 5 2 12 5 10 3 AT 9 4 17 10 14 6 PT 26 15 27 15 32 15 FI 13 7 13 6 18 10 SE 2 1 6 2 20 12 UK 12 6 15 8 19 11

Sources: UNDP and OECD.

Dialogue to participate actively in the importance of the configuration and quality of labour and employment definition of this European model. complementarity between industrial standards.(243) It is not easy to disen- relations and other institutions of tangle the different factors (which There is a considerable body of labour, employment and social would presume eliminating the theoretical and empirical literature protection. This issue comes up social relations institutions in order dealing with the influence of differ- again within the European Union, to evaluate the resulting transforma- ent forms of industrial relations on where it is necessary to articulate tions of employment standards). performance in an increasingly international industrial-relations systems nationalised world. It is noteworthy, and create European-scale coordinat- It is necessary to consider first of all moreover, that this question should ing bodies, to encourage the autono- the macroeconomic impact of the become a preoccupation of the large my of the Social Dialogue and the quality of the social relations of international institutions, where participation of the social partners in labour, followed by the consequences countries of extremely different lev- the governance of the Union. Given on one industry or sector and finally els of development are represented. the level of development of the Euro- at the level of the firms, which can This is indeed a sign that, along with pean countries compared with most themselves be differentiated in several other institutions in society, they play of the other nations in the world, as respects (even though good micro- or should play a major role. well as the Union’s potentialities, we economic performances do not auto- can only be rigorous in terms of matically guarantee macroeconomic The findings of these comparative quality. The main findings of these results going in the same direction). studies carried out for all the coun- studies evaluating the impact of We have organised the survey in the tries in the world are relatively modest industrial relations on economic following way: the different columns with regard to the impact of industrial performances are summarised in distinguish industrial-relations sys- relations on growth and economic Table 8.4. tems which are highly coordinated or performance. Very briefly stated, have a high level of unionisation from these studies do not indicate one Analysing the influence of industrial those with little coordination, infre- model as the best means of promot- relations on performance entails the quent collective bargaining or low ing performance but reveal the measurement of their impact on the rates of coverage (in Europe, as

(243) ‘Comparative studies reveal little systematic difference in economic performance between countries that enforce the two relevant labour standards (freedom of association and the right to collective bargaining) and countries that do not. This is partly a reflection of the difficulties of isolating the effects of labour standards from other determinants of economic performance and suggests that the impact of labour standards can perhaps best be analysed on a case-by-case basis’ (Aidt T. and Tzannatos Z. (2002) Unions and Collective Bargaining: Economic Effects in a Global Environment, Washington DC, World Bank).

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Table 8.4: Economic performance and industrial relations, an analytical survey

High unionism and/or Low unionism and/or low coordinated high coordinated collective bargaining collective bargaining Macro-economic outcome Comparatively better Since then, low coordination tends to be worse than high coordi- (unemployment, inflation, performance in the 80s nation or no coordination at all real wage flexibility, etc.) and 90s Employment growth No robust answer Unemployment Lower and less persistent Since then, high bargaining coordination tends to reduce unem- in the 80s and 90s ployment Labour or total factor Indeterminate Indeterminate productivity, levels or growth Profitability Lower in US, UK, Japan, no No robust result in the recent period assessment for the EU Wage distribution Compressed Wider wage distribution Fringe benefits Higher Discrimination (especially No systematic difference nor determination gender) Product market No substantive clear cut influence competition. Multi-unionism Countries with competing unions tend to have worse results for unemployment and inflation. Hours worked Lower, overtime work is Higher, overtime less remunerated better remunerated Job mobility Voluntary job turnover is lower, long-term tenure is higher R and D spending in firms Seems slightly lower in UK and USA in unionized firms, but not in other developed countries Training Better elsewhere in the world, there is no viability of this situation but empiri- tion rates. As with density, the rate of necessary correlation between the cal studies do not provide answers on coverage correlates with a more rate of collective agreement coverage this point. egalitarian distribution of wages. and union density). One close correlation should be Figure 8.1 gives an overview to better The international comparison does emphasised: union density goes hand situate the various wage bargaining not bring out any significant differ- in hand with more limited income systems in relation to trade union ence in performance between the inequalities and more limited wage density across the EU, notably in countries reinforcing fundamental distribution. This principle is veri- terms of the level of coordination. rights in the areas of industrial rela- fied in Europe as elsewhere: equity tions and those which prohibit or is neither an obstacle nor a condition The balance between the costs and limit them. Fortunately, this aspect for performance or attractiveness, as advantages of having a dense, coor- no longer concerns the EU but it we have seen, but union presence is a dinated system or one which is weak clearly remains a problem at the level factor of wage cohesion. and decentralised (supposing that the of international institutions (ILO, choice exists after the fact) has also World Bank, etc.). A country’s per- Bargaining coverage is most often generated a vast literature.(244) The formance thus does not depend (in associated with an increase in real indicators selected for this evaluation the short term at least) on the exis- wages (albeit without any convinc- are subject to controversy. But there tence of social rights. We can ing impact on productivity), lower is, however, consensus on one deci- obviously question the long-term employment rates and higher infla- sive principle: low coordination has

(244) Calmfors L., (1993) Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey OECD Economics Department Working Papers 131; Henley, A., and Euclid Tsakalotos, E. (1993) Corporatism and Economic Performance: A Comparative Analysis of Market Economies, Vermont, Elgar Brookfield; Layard, R., Nickell, S. and R. Jackman (1991). Unemployment: Macroeconomic Performance and the Labour Market. Oxford, Oxford University Press; Visser J., (2004), Industrial Relations in Europe 2004, European Commission.

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Figure 8.1: Net trade union density and weighted wage bargaining labour, employment and social pro- coordination index, EU-25 tection. In other words, ‘It is the package of institutions that matters’.(246) 70 This finding is common to various SI FI BE theoretical and empirical approaches DK 60 NL to the social relations of labour and

x AT SE the analysis of the diverse trajectories IE (247) 50 ES of today’s economies.

DE IT PT 40 LU With regard to the micro-economic con- FR EL CY sequences of collective bargaining, their SK MT specific nature means that they can only 30 HU

aining coordination inde LV be studied seriously case by case. g 20 EE UK Most analytical studies arrive at sim- age bar CZ

W LT ilar, fairly modest conclusions: 10

4 It is not possible to copy national 0 models. 0 10 20 30 40 50 60 70 80 90 100

Trade union density 4 The most efficient configuration consists of a system of negotiation and coordination of representative Trade union density: see Figure 1.1; Wage bargaining coordination index, calculated by Visser in Indus- trial relations in Europe 2004, p. 45 (see there for detailed information). The index takes into account players which is densely implanted the way peak federations of unions and employers at the national and or sector level coordinate the wage and covering a large part of the bargaining process in the country (explicit or implicit). The degree of coordination is furthermore firms and employees. weighted by the coverage rate of this collective bargaining process. Finally, the measure is for comparability reasons transformed to have an index ranging from 0 to 100. A higher figure on the index stands for a higher degree of coordination for which the detailed explanation depends on the level of coordi- 4 The participation of industrial- nation and the collective bargaining coverage rate. relations players in political and institutional debates offers a decisive means of improving the envi- usually led to poorer results than growth of wages, labour supply, ronment necessary for growth. high coordination or no coordination reactivity to wage crises and for the Such a real participation implies at all. flexibility of real wages. The same is that the different parties involved true for labour productivity as well in social governance see this coor- However, in macroeconomic terms, as for total productivity.(245) dination as a common good. the tests carried out at world level show few convincing relationships Once a country has a democratic sys- This is clearly the meaning given to between industrial relations and tem of association, regardless of the the Social Dialogue in the context of macroeconomic performance. This is model, what is crucial is the quality of the European Employment Strategy, the case for unemployment, inflation the complementarity between this and it is one of the components of a and employment rates, for the real system and the other institutions of desirable European Social Model.

(245) ‘The least robust results relate to productivity, training and pay systems. The impact of unions on productivity levels (in terms of both labour productivity and total factor productivity) is empirically indeterminate’ (Aidt T. and Tzannatos Z. (2002), Unions and Collective Bargaining: Economic Effects in a Global Environment, Washington DC, World Bank). (246) Aidt T. and Tzannatos Z. (2002), Unions and Collective Bargaining: Economic Effects in a Global Environment, Washington DC, World Bank. (247) Hall P. and Soskice D. (2001), Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, Oxford, Oxford University Press; Boyer R., (2004), Une théorie du capitalisme est-elle possible?, Paris, Odile Jacob; Crouch C. (1993) Industrial Relations and European State Tradi- tions, Oxford, Oxford University Press; Amable B. (2003) The Diversity of Modern Capitalism, Oxford, Oxford University Press, etc.

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3. Industrial relations the traditional roles of employers and accreditation are becoming critical organisations and trade unions in the challenges for the social partners. For in Europe and management of the economy that they the unions, what is involved is a new the new growth have to respond to in order to con- service to be created and managed as tribute to economic performance. well as a base of operations for their regime participation in the governance of the 1. The transition to the knowledge knowledge society. And symmetrical- Dating from the emergence of indus- economy underlines the importance ly, for employers, there is a real oppor- trial capitalism in the 19th century, the of the ‘human capital’ approaches at tunity to generate pro-active coordina- social relations rooted in longstanding the same time that it reinforces tion with labour, where the goal of national histories are now confronted trends towards the individualisation performance presumes relations based by rapid, profound changes in a com- of the employment relationship. on confidence and loyalty. petitive, ‘post-industrial’ economy which is largely dominated by market The factors of performance now lie This zone includes a decisive element, finance and internationalisation, and more in collective and individual which has as yet been little explored: where information technologies are skills and competences, notably in the the role of industrial relations in the transforming the modes of organisation ability to replenish constantly chang- dynamics of innovation. The introduc- and production. European integration ing knowledge, than in rigid organisation of ’innovation-friendly industrial is increasingly becoming a motor for tional routines. Company and organi- relations’ in Europe has been studied the democratic political participation sational flexibility and dense social by G. Van Gyes.(249) This research of the social partners, creating a space networks are a necessity; the impor- brings out the complexity of the indus- where they can enhance the value of tance of the latter is particularly trial relations/innovation tandem and their representativeness at national stressed by ‘social capital’ approach- stresses that the workplace is the level, broaden it and reinforce it at EU es.(248) Here, industrial relations are essential locus for the identification level. responsible for agreements concern- and construction of real participation ing qualifications, wage scales and the between the social partners on this But the transformations of the new definition and organisation of careers, strategic point. After the Taylorist era, growth regime generate displace- the management of which depends on which exacerbated the division ments of the role and place of indus- new principles. The authority of work between planning and execution, the trial relations, which are found at the collectives, which in principle requires participation of wage earners in the juncture of production relations and cooperation between the social part- dynamics of innovation is a real chal- social protection systems. The forms ners, is weak when subject to the prin- lenge. Indeed, it is difficult to imagine of conflict and coordination between ciples of shareholder value and this Europe becoming the most high- employees, employers and public situation might further weaken the performance knowledge society while authorities are changing. The role of notion of the ‘learning’ or ‘socially perpetuating the defects of the social the industrial-relations institutions is responsible’ company. The new division of a bygone era. Nor will also being refocused, along with their regime involves more emphasis on the innovation-friendly industrial relations fields of action and practices, notably individualisation of skills and compe- be introduced without corresponding in terms of collective bargaining. The tences. ‘flexicurity’ measures for the work- importance of certain areas of negoti- force beyond the individual workplace. ation is diminished and the sites of The logic of employability puts more confrontation are displaced, notably emphasis on the individual responsi- 2. The crisis of the ‘Welfare State’ towards the company. The new issues bility of workers. They are now called sums up the numerous challenges do not yet always have the same read- upon to anticipate changes in qualifi- faced by European societies. Since ability as the old ones, or the social cations and bear a part of the risk. The the end of the post-Second World War partners have not yet addressed them. crucial issue here is a reorientation of boom period, the challenge of some- labour relations towards a new partner- times rising inequalities remains to be The Lisbon Agenda indicates a group ship. Lifelong learning is a difficult faced in many member countries. of strategic directions for the European process to coordinate collectively social partners. The transition to a because it implies a differentiation Social-protection costs have risen in knowledge economy, the modernisa- among workers’ individual abilities to proportion to the slowdown of growth tion of the Welfare State and increased train themselves. The creation of new and to increased expenses tied to competition following from globalisa- methods of training and appropriation unemployment and greater life expec- tion and liberalisation are challenges to of skills, their codification, recognition tancy. On the funding end, national

(248) R.D. Putnam (2000) Bowling Alone: the Collapse and Revival of American Community, New York, Simon and Schuster. (249) G. Van Gyes (2003) Industrial Relations as a Key to Strengthening Innovation in Europe, Innovation Papers nr. 36, European Commission, Luxem- bourg.

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social-protection policies are required which require constant efforts to over- However, while the existing empirical to introduce profound reforms in a come certain contradictions between research on productivity, employment financially and socially sustainable way the individual and social returns of growth, product market competition which often implies reducing and investment into human capital and and research and development spend- restructuring allocations and indirect social protection. ing gives either indeterminate or non- incomes. This situation also constitutes robust results, it appears that income a challenge for the social partners. 3. There can be a tension between the inequalities and wage distribution are globalisation of economic activities more limited, average wages, fringe With the gradual change of the and the national context of industrial benefits and training are higher and economic growth regime the rationale relations. One manifestation of this unemployment is on the whole lower of social security is shifted. Its central phenomenon is visible in State inter- and less persistent in systems with principle would no longer be redistrib- vention (however, to largely varying high union density and high coverage utive justice but rather social protec- degrees of intensity) in the fixing of by collective bargaining. Most impor- tion policy in a wide sense with a wages, and in particular minimum tantly, however, the complementari- mission of fostering human resource wages, direct participation in social ties and interrelationships between investment, inclusion and social pacts and the possibilities to extent the system of industrial relations and cohesion. The activation of social negotiated agreements.(250) The same the wider organisation of the society policies expresses this trend by also is true in the case of social policy, in economic and social terms largely stressing the individual responsibility where state intervention takes multi- makes it possible to reach different in the face of continuing adaptation to ple forms. J. Visser rightly insists on objectives of economic and employ- change. Challenges to stable profes- the weakening of the role of national ment performance in different ways sional careers are increasingly regard- sectoral negotiations ‘from hard to depending on the national circum- ed less as reasons for acquiring life- soft law’, which he sees as character- stances and pathways of adaptation. long rights than as opportunities in a istic of industrial relations in Europe. constantly changing world. Thus, The decentralisation of negotiations As an answer to the challenge of glob- social protection is no longer under- in the context of the single currency, alisation European integration is stood as a safety net: in this complex the diversification of productive based on the very idea of the need to period of transition social protection activities which blurs the notion of establish a solid EU-wide entity systems, rather than protecting from sector, the non-price dimension of where social cohesion permits changes, would seek to provide the competitiveness at international level addressing the dynamics of a world means for change. are all factors which weaken sector- market beyond economic competition based negotiation or encourage alone and building on the European Here we can also observe the chal- employers to request exception values, which, inter alia, are based on lenges posed to industrial-relations clauses.(251) solid social dialogue at all levels. This models. The trend towards greater issue is strategic for the future of a individual responsibility takes differ- social Europe and social dialogue ent forms, even though it is widespread 4. Conclusion processes in various forms undertaken among all the different ideas or nation- at European level represent a means al types of social protection in the This short overview of various of coping with the global challenges countries of the Union. The adaptation attempts to identify the role of and the at a level that adds to the purely and modernisation of national social challenges to industrial relation sys- national or sectoral ones. protection systems thus involves the tems with regard to their impact on respective social partners in various economic performance tends to show The Lisbon Strategy encourages the ways. It reduces trade unions’ role of that we are faced with complex matters European social partners to expand defending rights of their members and which forbid a simplistic approach and the field of their activities to take on increases their responsibility for their easy policy conclusions. The contested the challenges of the knowledge members’ employability. Employers nature of indicators of economic per- economy, welfare State reform or seek to invest in their human capital, formance and classifications of indus- globalisation. Their potential field rather than facing increased labour trial relations systems makes a defini- of competence is vast and it is cru- costs through what seem to be less tive statement of the relationship – cial that the political determination profitable social contributions. Here particularly in quantitative terms – of the players be sufficiently we may be facing complex challenges difficult to achieve. engaged.

(250) We also see the social partners abandoning their authority over certain domains of social security to the State (as is the case in France, for example). (251) ‘In my view, the most significant recent institutional development in European industrial relations is the conflict over the use of opening, hardship, inability to pay, opt-out or drop-out clauses, allowing firms under certain conditions to negotiate or unilaterally apply lower pay rates or longer working hours with their workforce than what is stipulated in the sectoral agreement’ (Visser J. (2004), Recent trends and persistent variations in Europe’s industrial relations, Dutch Social and Economic Council, EIRO (http://www.ser.nl/publicaties/default.asp?desc=b23574)).

158

Tables

List of tables

Table 1.1: Trade union structure in the Member States, EU-25 ...... 20 Table 1.2: Total union membership, 2004 or 2003, in thousands ...... 24 Table 1.3: Net trade union membership density according to various characteristics ...... 26 Table 1.4: Two contrasting groups of union membership probability in Europe ...... 28 Table 1.5: Structure of employers’ confederations in the EU Member States, 2004-2005 ...... 34 Table 1.6: Comparison of membership figures according to surveys that we use in the chapter, and other sources ...... 40 Table 2.1: Normative function of collective bargaining: legal status and extension procedures as examples ...... 43 Table 2.2: Levels of collective bargaining involved in wage-setting, EU-25 ...... 47 Table 3.1: Legal provisions of workplace representation in EU-25: bodies for information and consultation ...... 61 Table 3.2: Workplace representation by sector, % of employees covered ...... 71 Table 3.3: Workplace representation by macro-sector and country, % of employees covered ...... 72 Table 3.4: Workplace representation by establishment size, % of employees covered, EU ...... 72 Table 3.5: Workplace representation by occupational class, % of category with representation ...... 73 Table 3.6: Decentralisation of collective bargaining – assessment by members of German works councils (in %) ...... 74 Table 4.1: Overview of past and current social dialogue twinning projects in the central and Eastern European countries ...... 80 Table 5.1: Key events 1985-2006 ...... 92 Table 5.2: Panorama of Tripartite Social Summits since 2003 ...... 94 Table 5.3: Comparison between a framework agreement and a framework of actions ...... 98 Table 5.4: Article 138 consultations 2004-2006 ...... 105 Table 5.5: Social partner joint texts between January 2004 and April 2006 ...... 109 Table 5.6: Topics covered by sectoral social partners’ work programmes ...... 117 Table 5.7: Sectoral social dialogue committees ...... 118 Table 7.1: Agency workers as a percentage of the total workforce (2000 and 2004) ...... 137 Table 7.2: Proportion of employees reporting working usually in shift work, 2004 (2000 in parentheses) . . . 140 Table 7.3: Statutory minimum wages in Europe (2004) ...... 145 Table 7.4: Employment rate of women aged 25-49 with and without children under 6 and distribution by hours worked, 2005 ...... 149 Table 8.1: Measurement and international comparison of economic performance ...... 152 Table 8.2: Measurement and international comparison of economic performance, EU-15 ...... 153 Table 8.3: Human Development Index and GDP, EU-15 ...... 154 Table 8.4: Economic performance and industrial relations, an analytical survey ...... 155

159 Figures and boxes Industrial Relations in Europe 2006

List of figures

Figure 1.1: Trade union density, EU-25, 1995-2004 ...... 25 Figure 1.2: Density rate of employers’ organisations, EU-25 ...... 37 Figure 3.1: Employee participation cube ...... 58 Figure 3.2: Dominant forms of employee participation in Europe, conceptualised in the analytical cube of employee participation ...... 58 Figure 3.3: Basic channels of workplace representation in the EU Member States ...... 65 Figure 3.4: Trade union or similar present at the workplace, % of employees (private and public sector) . . . . 71 Figure 7.1: Employees on fixed-term contracts in Member States, 1998 and 2005 ...... 136 Figure 7.2: Employees on fixed-term contracts by age group in Member States, 2005 ...... 136 Figure 7.3: Part-time employment in the total economy in Member States, 1998 and 2005 ...... 137 Figure 7.4: Male part-time employment in industry and services in Member States, 1998 and 2005 ...... 138 Figure 7.5: Female part-time employment in industry and services in Member States, 1998 and 2005 ...... 138 Figure 7.6: Proportion of employes working part-time because they could not find an full-time job, 1998 and 2005 ...... 139 Figure 7.7: Self-employed without employees in Member States, 1998 and 2005 ...... 139 Figure 7.8: Proportion of employees working both Saturday and Sunday, 2005 ...... 141 Figure 7.9: Proportion of employees usually working at night, 2005 ...... 141 Figure 7.10: Employees on low wages in Member States, 2002 ...... 142 Figure 7.11: Share of employees on fixed-term contracts of less than 6 months in Member States, 2005 . . . . . 146 Figure 8.1: Net trade union density and weighted wage bargaining coordination index, EU-25 ...... 156

List of boxes

Box 1.1: Ongoing merger process between the two most important international trade union confederations ...... 22 Box 1.2: Trade union membership as comparative indicator of trade union mobilisation strength ...... 23 Box 1.3: European Social Survey as main data source ...... 27 Box 1.4: Students and self-employed as new target groups for union organising ...... 30 Box 1.5: Polish union debate on political independence ...... 31 Box 1.6: International social movement unionism and social forums ...... 31 Box 1.7: Some of the recent union merger activities in the European Union ...... 32 Box 1.8: Union representativeness: recent examples of national discussions ...... 33 Box 1.9: Employers’ organisations and active labour market policies ...... 33 Box 1.10: The French MEDEF as prime example of restructuring as employer’s confederation ...... 38 Box 2.1: Synthesis of a comparative labour law project ...... 41 Box 3.1: Recent legal initiatives in the new Member States ...... 66 Box 3.2: Union learning representatives in the UK ...... 67 Box 3.3: Overview of recent and important legal initiatives in the (previous) EU-15 ...... 69 Box 3.4: Task description of a Swedish shop steward ...... 75 Box 5.1: 20 years of European social dialogue ...... 91

160

Industrial relations and economic performance: an overview research results Boxes

Box 5.2: Multi-sector negotiations on crystalline silica ...... 106 Box 5.3: New social dialogue website ...... 112 Box 5.4: New cross-industry social dialogue work programme for 2006-2008 ...... 115 Box 6.1: Why a revision of the Working Time Directive? ...... 121 Box 6.2: The Dellas case as a new example of the Court rulings on on-call time ...... 122 Box 6.3: Chronology of the Temporary Agency Work Directive ...... 125 Box 6.4: Communication on the implementation of the Health and Safety at Work Directives ...... 129

161 Websites and documents Industrial Relations in Europe 2006

Useful websites and documents

Employment, Social Affairs and Equal Opportunities DG social dialogue website: http://ec.europa.eu/employment_social/social_dialogue/index_en.htm Employment, Social Affairs and Equal Opportunities DG social dialogue grant website: http://ec.europa.eu/employment_social/social_dialogue/grants_en.htm European Industrial Relations Dictionary: http://www.eurofound.eu.int/areas/industrialrelations/dictionary/index.htm European Foundation for the Improvement of Living and Working Conditions – http://www.eurofound.eu.int European Industrial Relations Observatory: http://www.eiro.eurofound.eu.int European Monitoring Centre on Change: http://www.eurofound.eu.int/emcc/emcc.htm European Working Conditions Observatory (EWCO): http://www.eurofound.eu.int/ewco/

Cross-Industry Social Partners

UNICE: http://www.unice.org CEEP: http://www.ceep.org UEAPME: http://www.ueapme.com ETUC: http://www.etuc.org Resource Centres: http://www.resourceetuc.com – www.unice.org/erc

European Sectoral Social Dialogue Committees' websites

Postal Services Sectoral Social Dialogue Committee website: http://www.PostSocialDialog.org Sugar Sectoral Social Dialogue Committee website: http://www.eurosugar.org

European Trade Union Institutes

European Trade Union Institute (ETUI): http://www.etui-rehs.org/ European Centre for Workers' Questions (EZA): http://www.eza.org

Useful documents

Recent developments in the European Sectoral Social Dialogue: 2006 Social Dialogue Summit, 20 years of European Social Dialogue, 29 September 2005 http://ec.europa.eu/employment_social/social_dialogue/docs_en.htm ‘Industrial Relations in Europe’ reports 2000, 2002, 2004 ‘Report of the High Level Group on Industrial Relations and Change in the European Union’ http://ec.europa.eu/employment_social/social_dialogue/reports_en.htm Commission Communication, ‘Social agenda 2005-2010’, COM(2005) 0033 final, 9 February 2005 http://ec.europa.eu/employment_social/social_policy_agenda/social_pol_ag_en.html ‘Employment in Europe 2006’ http://ec.europa.eu/employment_social/employment_analysis/employ_en.htm ‘Joint Employment Report 2005/2006’ http://ec.europa.eu/employment_social/employment_strategy/employ_en.htm ‘Time to Move Up A Gear’ The European Commission's 2006 Annual Progress Report on Growth and Jobs http://ec.europa.eu/growthandjobs/annual-report_en.htm

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