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Benchmarking Working Europe 2018 ETUI Publications Are Published to Elicit Comment and to Encourage Debate

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European List Trade Union Institute Boulevard du Roi Albert II, 5, box 4 of country B-1210 Brussels Benchmarking codes + 32 (0)2 224 04 70 [email protected] www.etui.org AT Austria Working Europe BE Belgium European BG Bulgaria Trade Union Confederation Boulevard du Roi Albert II, 5 CH Switzerland B-1210 Brussels 2018 CY Cyprus CZ Czech Republic + 32 (0)2 224 04 11 [email protected] DE Germany www.etuc.org DK Denmark EE Estonia ES Spain FI Finland FR France GR Greece HR Croatia HU Hungary IE Ireland IT Italy LT Lithuania LU Luxembourg LV Latvia MT Malta NL Netherlands NO Norway PL Poland PT Portugal RO Romania SE Sweden SI Slovenia SK Slovakia UK United Kingdom US United States EA EU Member States (19) that adopted the euro before 2016 EU13 EU ‘new’ Member States that joined the EU after 2004 EU15 EU Member States that joined the EU before 2004 EU27 EU Member States that joined the EU ISBN: 978-2-87452-469-1 before 2012 D/2018/10.574/04 EU28 EU Member States that joined the EU before 2014 List The European The European of country Trade Union Institute Trade Union Confederation codes (ETUI) (ETUC) AT Austria BE Belgium The ETUI conducts research in areas of The institute’s work is organised in The European Trade Union The ETUC is the only social partner BG Bulgaria relevance to the trade unions, including accordance with the following five common Confederation (ETUC) exists to speak representing workers at European CH Switzerland the labour market and industrial relations, priorities: with a single voice, on behalf of the level in the framework of the European and produces European comparative — Policies and actions for the future of common interests of workers, at social dialogue. The ETUC works CY Cyprus studies in these and related areas. It also Europe European level. Founded in 1973, it now for a European Union with a strong CZ Czech Republic provides trade union educational and — Workers’ participation and industrial represents 89 trade union organisations social dimension, which prioritises the DE training activities and technical support in relations in 39 European countries, plus 10 interests and well being of working men Germany the field of occupational health and safety. — Sustainable development and industrial European Trade Union Federations. The and women, promotes social justice and DK Denmark policy ETUC represents 45 million members. fights exclusion and discrimination. EE Estonia The ETUI places its expertise – acquired — Working conditions and job quality in particular in the context of its links — Trade union renewal The ETUC is a democratic, independent, ES Spain with universities, academic and expert pluralistic, unified organisation, FI Finland networks – in the service of workers’ recognized by the European Union, FR France interests at European level and of the [email protected] the Council of Europe and the European strengthening of the social dimension of www.etui.org Free Trade Association as the sole GR Greece the European Union. Its aim is to support, representative, multi-sector trade [email protected] HR Croatia reinforce and stimulate the trade union union organisation at European level. www.etuc.org movement. HU Hungary IE Ireland The ETUI is composed of two departments: IT Italy — A research department with three units: Europeanisation of industrial LT Lithuania relations; Economic, employment and LU Luxembourg social policies; Working conditions, health and safety LV Latvia — An education department MT Malta NL Netherlands NO Norway PL Poland PT Portugal RO Romania SE Sweden SI Slovenia SK Slovakia UK United Kingdom US United States EA EU Member States (19) that adopted the euro before 2016 EU13 EU ‘new’ Member States that joined the EU after 2004 EU15 EU Member States that joined the EU before 2004 EU27 EU Member States that joined the EU before 2012 EU28 EU Member States that joined the EU before 2014 Benchmarking Working Europe 2018 ETUI publications are published to elicit comment and to encourage debate. The views expressed are those of the author(s) alone and do not necessarily represent the views of the ETUI nor those of the members of its general assembly. Brussels, 2018 © Publisher: ETUI aisbl, Brussels All rights reserved Print: Artoos/Hayez Kampenhout D/2018/10.574/04 ISBN: ISBN: 978-2-87452-469-1 (print version) ISBN: 978-2-87452-470-7 (online version) The ETUI is financially supported by the European Union. The European Union is not responsible for any use made of the information contained in this publication. Benchmarking Working Europe 2018 Contents Foreword ...................................................................................................5 1. Growth returns but will have to be sustained in order to heal scars and reverse re-emerging divergence ..................................7 2. Labour market and social developments ...........................................19 3. Developments in social indicators .....................................................37 4. Wages and collective bargaining: a new attempt to ensure fair wages and adequate minimum wages? .......................................53 5. Social policymaking and workers’ participation ...............................65 References .............................................................................................. 85 List of figures ..........................................................................................91 List of abbreviations .............................................................................. 93 The Benchmarking Group ..................................................................... 94 3 Foreword The past few years have seen a recovery in output growth in the European Union (EU), with recent forecasts predicting the highest growth rates since 2010: 2.4% in 2017 and 2.3% in 2018, for both the EU28 and the euro area. While this relative upswing in the economy is having a positive impact on employment rates and investment, it is far from being enough to make up for the nearly 10 years of no or slow growth, nor are all EU28 countries benefiting equally. Certain fundamental variables give reason to be cautious when it comes to policy decisions. Unemployment remains high in many countries, and wage growth and inflation have stayed relatively weak, suggesting that deep scars in the labour market have yet to be healed. The prediction that we may already be approaching the peak of growth in the business cycle while there is still labour market ‘slack’ suggests that measures to keep on supporting demand should be reinforced rather than rolled back. In addition, big uncertainties remain in the international environment, with possible moves towards protectionism in the US and the risk of great disruption when the UK formally leaves the EU in March 2019. The more lenient macroeconomic environment should be fully utilised to implement a suitable policy mix that includes: a fully fledged investment strategy for the future, with a genuine focus on research and development; a real pay rise; a halt in the deregulatory processes; allowing fiscal policy to come fully into its own; tackling the growing inequalities in the labour market; consolidating and enhancing social protection; and last but not least committing to a Europe characterised by high social standards, including in the field of health and safety. The European institutions have launched several processes that aim to shape the future of Europe, including, among others, the Proclamation on the European Pillar of Social Rights, as well as related legislative initiatives and a ‘Social Fairness Package’, and the Communication on the deepening of the European Monetary Union. These documents will form the basis for establishing the future direction of Europe, and, as has been said on several occasions, social concerns will be at the heart of these reflections. Fundamental decisions are to be taken over the coming year as to the depth of future European integration, and this process will be complemented by the upcoming discussion in May 2018 on the multiannual financial framework. The budgetary decisions that will be made then will frame how ambitious the European Union can and will be, and will set the tone for how serious the European institutions and the Member States are about ensuring that upwards social convergence is the DNA of the European project. As the analysis of Benchmarking Working Europe 2018 reveals, upwards social convergence cannot be taken for granted, and market forces are doing nothing to ensure its occurrence; rather the contrary in fact. Southern European countries are diverging from the rest of the European Union on many counts, while the ‘catching-up’ process in central and eastern Europe (CEE) towards the social standards of the western and northern regions has undeniably slowed down. It is therefore of vital importance that Europe lay the foundations for a sustainable and fair society and that governance, policy processes and budgets make this a possibility for all members of the European Union. The key priorities are to ensure a sustainable economic growth for the creation of quality jobs and better working conditions, a relaunch of the European social model based on stronger labour rights and social protection for all, and to develop more democratic values that place workers and citizens at the heart of Europe. With this year’s chosen focus – ‘on the path towards convergence?’ – the new edition of Benchmarking Working Europe sets out to assess and analyse the state of working Europe with the aid of a
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