SBSCentre DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

TRANSPORT AND TOURISM

SOCIAL AND WORKING CONDITIONS IN THE TRANSPORT SECTOR OF THE EUROPEAN UNION

STUDY

This document was requested by the European Parliament's Committee on Transport and Tourism.

AUTHORS

PricewaterhouseCoopers Advisory Srl Italy: Giorgia Aresu –project manager Diego Artuso Elisabetta Martone Micaela Celio Claudio Ricciolio Scientific review : Prof. Patrizia Ordine

RESPONSIBLE ADMINISTRATOR

Nils Danklefsen Policy Department Structural and Cohesion Policies European Parliament B-1047 Brussels E-mail: [email protected]

LINGUISTIC VERSIONS

Original: EN

ABOUT THE EDITOR

To contact the Policy Department or to subscribe to its monthly newsletter please write to: [email protected]

Manuscript completed in October 2009. Brussels, © European Parliament, 2009.

This document is available on the Internet at: http://www.europarl.europa.eu/studies

DISCLAIMER

The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament.

Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy.

DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

TRANSPORT AND TOURISM

SOCIAL AND WORKING CONDITIONS IN THE TRANSPORT SECTOR OF THE EUROPEAN UNION

STUDY

Abstract

This study provides an overview of social and working conditions in five main transport sectors: road, railways, air, maritime and inland waterways. After a brief presentation of the economic, social and legislative framework for each sector, the study addresses specific issues such as wages and wage/pension schemes, working time, social dialogue etc. for each sector. The study then highlights the main problems/challenges for each sector and makes recommendations for further studies and legislation/political discussion at EU level.

IP/B/TRAN/FWC/2006-156-Lot6-C1-SC4 October 2009

PE 419.122 EN

Social and working conditions in the transport sector of the European Union ______

CONTENTS

LIST OF ACRONYMS 5

LIST OF TABLES 15

LIST OF FIGURES 17

EXECUTIVE SUMMARY 21

1 INTRODUCTION 31 1.1 Objective and content of the study 31 1.2 Methodology 32 2 PART I – OVERVIEW OF THE TRANSPORT SECTOR 35 2.1 The economic dimension 37 2.2 The structure of the labour market 46 2.3 The legal framework 57 3 PART II - ASSESSMENT OF SOCIAL AND WORKING CONDITIONS IN THE TRANSPORT SECTOR 65 3.1 Wages and payment systems 65 3.2 Pension schemes 83 3.3 Extent of unionised labour 87 3.4 Social dialogue 104 3.5 Working time 119 3.6 Health and safety at work 123 3.7 General quality and security of employment 139 3.8 Consequences of liberalisation of the transport sector for working conditions 152 4 PART III – MAIN ISSUES AND PROBLEMS AFFECTING THE TRANSPORT SECTORS 165 4.1 Road transport 165 4.2 Railway transport 169 4.3 Air transport 170 4.4 Maritime transport 173 4.5 Inland waterway transport 175 5 PART IV – RECOMMENDATIONS FOR FURTHER EU POLITICAL DISCUSSION, LEGISLATION AND RESEARCH ACTIVITIES 177

6 BIBLIOGRAPHY 185

ANNEX I – TRANSPORT MARKET ANALYSIS 195

3 Policy Department B: Structural and Cohesion Policies ______

4 Social and working conditions in the transport sector of the European Union ______

LIST OF ACRONYMS

AAE Association of Airline Engineers Algemeen Belgisch Vakverbond/Fédération Générale du Travail ABVV/FGTB de Belgique ACI Airport Council International European Agreement Concerning the International Carriage of ADN Dangerous Goods by Inland Waterway AEA Association of European Airlines AGCI Associazione Generale Cooperative Italiane Agv Move Arbeitgeberverband der Mobilitäts- und Verkehrsdienstleister AGVDE Arbeitgeberverband Deutscher Eisenbahnen AITI Associazione Imprese Traslocatori Italiani ALPA Airline Pilots Association Malta Associazione Nazionale delle Cooperative di Servizi e Turismo Ancst-Legacoop of the Lega delle Cooperative Auto-transport Firms National Association (Associazione ANITA Nazionale Imprese Trasporti Automobilistici) ANSP Air Navigation Service Provider ARF Amtsrådsforeningen Assoespressi Associazione Nazionale Corrieri Espressi Associazione Italiana delle Imprese di Logistica, Magazzini Assologistica Generali e Magazzini Frigoriferi ATC Air traffic controller ATM Air Traffic Management AUA Austrian Airlines Group BAG German Federal Office for Freight Transport BBG Austrian Federal Railways Act (Bundesbahngesetz ) BDO Bundesverband Deutscher Omnibusunternehmer BGL Bundesverband Güterkraftverkehr Logistik und Entsorgung BIA Bulgarian Industrial Association BNS National Trade Union Bloc (Blocul Naţional Sindical) BTB Belgische Transportbond CAI Compagnia Aerea Italiana

5 Policy Department B: Structural and Cohesion Policies ______

CANSO Civil Air Navigation Services Organisation CBA Collective bargaining agreement CC.OO. Comisiones Obreras (Spanish Trade Union) CCNR Central Commission for Navigation on the Rhine Community of European Railways and Infrastructure CER Companies CFDT Confédération française démocratique du travail Confédération française de l’encadrement – Confédération CFE-CGC générale des cadres CFTC Confédération française des travailleurs chrétiens CGB Christlicher Gewerkschaftsbund CGPME Confédération générale des petites et moyennes entreprises CGT-FO Confédération générale du travail – Force ouvrière CIG Galician Interunion Confederation International Occupational Safety and Health Information CIS Centre Confederation of Independent Trade Unions in Bulgaria CITUB (Конфедерация на независимите синдикати в България) Luxembourg Trade Confederation (Confédération CLC Luxembourgeoise du Commerce) CNEL Consiglio Nazionale dell’Economia e del Lavoro Independent Engine Drivers’ Union (Comitato Macchinisti Comu Unitari) Confartigianato Associazione Nazionale Autotrasporto di Confartigianato Trasporti Italian General Confederation of Commerce, Tourism and Services Employers (Confederazione Generale Italiana del Confcommercio Commercio, del Turismo, dei Servizi, delle Professioni e delle Piccole e Medie Imprese) Federlavoro e Servizi of the Confederazione Cooperative Confcooperative Italiane Confetra Confederazione Generale dei Trasporti e della Logistica, The Transport, Haulage and Logistics Confederation Conftrasporto (Confederazione del Trasporto, della Spedizione e della Logistica) CSA Cyprus Shipping Association CSC/ACV Confédération des Syndicats Chrétiens/ Algemeen Christelijk

6 Social and working conditions in the transport sector of the European Union ______

Vakverbond DBB Deutscher Beamtenbund, Directorate General for Employment and Social Affairs of the DG Employment European Commission Directorate General for Transport and Energy of the European DG TREN Commission DGB Deutscher Gewerkschaftsbund, DI Confederation of Danish Industries (Dansk Industri) EA European Area EBA Federal Railways Office (Eisenbahnbundesamt) EBU European Barge Union ECA European Cockpit Association ECE Economic Commission for Europe ECSA European Community Shipowners’ Associations EEA European Economic Area EIM European Rail Infrastructure Managers EIRO European Industrial Relations Observatory Solidarity Confederation of Basque Workers (majority in the ELA Basque Country) ENT Enterprise or single employer agreement ERA European Regional Airlines Association ERM European Restructuring Monitor ESAW European Statistics on Accidents at Work ESO European Shippers’ Organisation ETF European Transport Workers Federation EU European Union EU-15 European Union countries prior to 1st May 2004 EU-25 European Union countries prior to 1 January 2007 EU-27 Current EU Member States EUR Euro currency FAB Functional Airspace Blocks FAST Federazione Autonoma Sindacati dei Trasporti FAU Fachverband der Autobusunternehmungen

7 Policy Department B: Structural and Cohesion Policies ______

Fédération Royale Belge des Transporteurs et des Prestataires FEBETRA de Services Logistiques/Koninklijke federatie van belgische transporteurs Fedespedi Federazione Nazionale Imprese di Spedizioni Internazionali Fedit Federazione Italiana Trasportatori FGG Fachverband für das Güterbeförderungsgewerbe Fiap-Italia Federazione Italiana Autotrasportatori Professionali Federazione Italiana Lavoratori dei Trasporti – Confederazione Filt-Cgil Generale Italiana dei Trasporti FISI Federazione Italiana Spedizionieri Industriali Fita CNA Unione Nazionale Imprese di Trasporto Federazione Italiana Trasporti – Confederazione Italiana Fit-Cisl Sindacati Lavoratori FNCR Fédération nationale des chauffeurs routiers National Federation of Harbour Unions (Federaţia Naţională a FNSP Sindicatelor Portuare) FNTR Fédération nationale des transports routiers FoC Flags of Convenience FS Italian State Railways (Ferrovie dello Stato) FSp Fachverband der Spediteure FVC Federation of Train Crews (Federace Vlakových Cet) GdE Union of Railways Workers (Gewerkschaft der Eisenbahner) GdED Transnet Gewerkschaft GdG Gewerkschaft der Gemeindebediensteten German Engine Drivers’ Union (Gewerkschaft Deutscher GDL Lokführer) GÖD Gewerkschaft Öffentlicher Dienst und Dienstleistungen Gewerkschaft der Privatangestellten, Druck, Journalismus, GPA-DJP Papier Union of Postal and Telecommunications Employees GPF (Gewerkschaft der Post- und Fernmeldebediensteten) GWU General Workers’ Union HGV Heavy Goods Vehicle HHLA Hamburger Hafen und Logistik AG HTV Gewerkschaft Handel, Transport, Verkehr

8 Social and working conditions in the transport sector of the European Union ______

IACA International Air Carrier Association IAHA International Aviation Handlers' Association ICT Information and communication technology ILDA Irish Locomotive Drivers’ Association ILO International Labour Organisation IMPACT Irish Municipal Public and Civil Trade Union IND Industry agreement IND1 Agreement for individual industries in individual region IRN Industrial Relations News IRU International Road Transport Union ITF International Transport Workers’ Federation IWT Inland Waterway Transport Employers’ Association of Railways in Denmark (Jernbanernes JA Arbejdsgiverforening) JAA Joint Aviation Authorities LAB Nationalist Basque Trade Union LÁPB Légiközlekedési Ágazati Párbeszéd Bizottság LCC Low-cost carrier Latvian Railways Workers’ Trade Union (Latvijas Dzelzcelnieku LDzA Arodbiedriba) LFS Labour Force Survey Lithuanian Federation of Railways Workers (Lietuvos LGPF Gelezinkelininku Profsajungu Federacija) LRC Labour Relations Commission MÁV Hungarian Railways Company (Magyar Államvasutak) MDU Malta Dockers’ Union MEDEF Mouvement des entreprises de France MLC Maritime Labour Convention MPL Multi-crew Pilot Licence MS Member State/s MT Ministry of Transport (Ministerul Transporturilor) Nomenclature statistique des activités économiques dans la NACE Communauté européenne

9 Policy Department B: Structural and Cohesion Policies ______

NAT National level or interconfederal agreement NMS New Member State/s NONE No collective agreement exists ÖBB Austrian Federal Railways (Österreichische Bundesbahnen) Luxembourg Confederation of Independent Trade Unions OGB-L (Onofhängege Gewerkschaftsbond Lëtzebuerg) OLP Piraeus Port Authority OLTH Thessaloniki Port Authority Federation of Transport, Petroleum and Agricultural Workers of ΟΜΕPΕGΕ Cyprus (Ομοσπονδία Εργατοϋπαλλήλων Μεταφορών, Πετρελαιοειδών και Γεωργίας Κύπρου) Port Operators Employers' Organisation (Organizaţia Patronală OPOP Operatorul Portuar) OrSA Organizzazione Sindacati Autonomi e di Base OSA Obstructive sleep apnoea PGA Companhia Portuguesa de Transportes Aereos SA PLL LOT Polskie Linie Lotnicze LOT PNO Pan-Hellenic Seafarers’ Federation POS Pan-Hellenic Federation of Railways Workers PPS Purchasing power parities Pancyprian Federation of Labour (Παγκύπρια Εργατική PΕΟ Ομοσπονδία) RFI Rete Ferroviaria Italiana Association professionnelle royale des transporteurs de marchandises de la Communauté flamande et de la Région de SAV Bruxelles-Capitale/Koninklijke beroepsvereniging goederenvervoerders vlaams gewest en Brusselse hoofdstedelijk gewest SBS Structural business statistics SCHIG Track financing company (Schienenfinanzierungsgesellschaft) Cyprus Agricultural, Forestry, Transport, Port, Seamen and Allied Occupations Trade Union (Συντεχνία Εργατοϋπαλλήλων SEGDAMELIN Γεωργίας, Δασών, Μεταφορών, Λιμενεργατών Ναυτεργατών και Συναφών Επαγγελμάτων Κύπρου) SES Structure of Earnings Survey SIPTU Services Industrial Professional and Industrial Union SNA- Sindacato Nazionale degli Autotrasportatori di Casartigiani 10 Social and working conditions in the transport sector of the European Union ______

Casartigiani Standards of Training, Certification and Watch-keeping for STCW Seafarers STS Short-term business statistics Cyprus Workers’ Confederation (Συνομοσπονδία Εργαζομένων SΕΚ Κύπρου) TAP Transportes Aéreos Portugueses TLF Fédération des entreprises de transport et logistique de France UCC Union of Cabin Crew UFT Union des fédérations du transport Federazione Nazionale delle Attività Ferroviarie - Unione Ugl AF Generale del Lavoro Trasporti UGT Unión General de Trabajadores Uil Unione Italiana del Lavoro Uilt Unione Italiana dei Lavoratori dei Trasporti UNIT Agreement applying only to workers in the local unit Union nationale des organisations syndicales des transporteurs UNOSTRA routiers automobiles UPTR Union professionnelle du transport par route Free Union of Railways Workers (Vasúti Dolgozók Szabad VDSZSZ Szakszervezete) Ver.di Vereinte Dienstleistungsgewerkschaft VKA Vereinigung Kommunaler Arbeitgeberverbände Trade Union of Hungarian Railwaymen (Vasutasok VSZ Szakszervezete)

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12 Social and working conditions in the transport sector of the European Union ______

EUROPEAN UNION COUNTRIES (EU-27)

AT Austria BE Belgium BG Bulgaria CY Cyprus CZ Czech Republic DE Germany DK Denmark EE Estonia EL Greece ES Spain FI Finland FR France HU Hungary IE Ireland IT Italy LT Lithuania LU Luxembourg LV Latvia MT Malta NL Netherlands PL Poland PT Portugal RO Romania SE Sweden SI Slovenia SK Slovak Republic UK United Kingdom

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LIST OF TABLES

Table 2-1 People employed in maritime sectors in some Member States (2005) 52 Table 2-2 European Working Time Directive 93/104 58 Table 3-1 Some examples of pension schemes for road transport workers 84 Table 3-2 Some examples of pension schemes for railway transport workers 84 Table 3-3 Some examples of pension schemes for air transport workers 85 Table 3-4 Some examples of pension schemes for maritime workers 86 Table 3-5 Some examples of pension schemes for inland waterway workers 87 Table 3-6 Number of employers' organisations and trade unions at country level in the air transport sector 97 Table 3-7 Working time in the road sector – Directive 2002/15 119 Table 3-8 Driving time in the road sector – Regulation 2006/561 120 Table 3-9 Working time in interoperable cross-border services in the railways sector – Directive 2005/47 121 Table 3-10 Working time in the air transport sector – Directive 2000/79 122 Table 3-11 Working time in the maritime sector – Directive 1999/63 (seafarers) 123 Table 3-12 Working time in the inland waterways sector – Directive 1993/104 123 Table 3-13 Main health and safety risks in road transport 132 Table 3-14 Main health and safety risks in railway transport 133 Table 3-15 Main health and safety risks in the aviation sector 135 Table 3-16 Main health and safety risks in the maritime and inland waterways sector 137 Table 3-17 Security and quality of employment in some European railways companies 145 Table 4-1 Turnover by mode of transport in 2006 (million EUR) 195 Table 4-2 Number of enterprises by mode of transport in 2006 196

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Table 4-3 Employment by mode of transport in 2006 197

16 Social and working conditions in the transport sector of the European Union ______

LIST OF FIGURES

Figure 1-1 Methodology used for the study 32 Figure 1-2 Description of Task III 33 Figure 1-3 Description of Task IV 33 Figure 2-1 EU-27 turnover by mode of transport in 2006 and 2005, million EUR 38 Figure 2-2 Transport growth EU-27 in relation to GDP and employment in the transport sector (index numbers, year 1998=100) 41 Figure 2-3 EU-27 Employment by mode of transport in 2006 (%) 46 Figure 2-4 EU-25 Employment growth in road passenger transport (index numbers, year 2000=100) 48 Figure 2-5 EU-25 Employment growth in road freight transport (index numbers, year 2000=100) 48 Figure 2-6 EU-25 Employment growth in railway transport (index numbers, year 2000=100) 49 Figure 2-7 EU-27 Employment growth in air transport (index numbers, year 2000=100) 50 Figure 2-8 EU-27 Employment trend in waterborne transport (index numbers, year 2000=100) 51 Figure 2-9 EU-25 Employment growth in inland waterway transport (index numbers, year 2000=100) 53 Figure 2-10 EU-27 employment by age groups in the transport, storage and communication sector, volume (thousands) and quota (percentage) 54 Figure 2-11 EU-27 employment by sex in the transport, storage and communication sector, volume (thousands) and quota (percentage) 55 Figure 2-12 Employment index for land transport and transport via pipelines in EU-27- monthly seasonally adjusted data from Jan. 2008 to June 2009 - (Jan. 2008=100) 56 Figure 2-13 Employment index for water transport in EU-27- monthly seasonally adjusted data from Jan. 2008 to June 2009 - (Jan. 2008=100) 56 Figure 2-14 Employment index for air transport in EU-27- monthly seasonally adjusted data from Jan. 2008 to June 2009 - (Jan. 2008=100) 57 Figure 3-1 EA share of employees by collective pay agreement in the transport, storage and communication sector, percentage 66

17 Policy Department B: Structural and Cohesion Policies ______

Figure 3-2 Mean monthly earnings comparison between the transport, storage and communication sector and manufacturing (values expressed in PPS) in selected countries, 2006 67 Figure 3-3 Gender salary gap on mean monthly earning (PPS) in selected countries, 2006 68 Figure 3-4 Mean monthly earnings by age classes in a selected European area (euro), 2006 69 Figure 3-5 Contract salary gap on mean monthly earning (PPS) in selected countries, 2006 69 Figure 3-6 Mean monthly earnings by educational attainment in a selected European area (euro), 2006 70 Figure 3-7 Annual wages and salaries per person employed in road passenger transport (euro), 2006 72 Figure 3-8 Annual wages and salaries per number of persons employed in freight transport (euro), 2006 73 Figure 3-9 Annual wages and salaries per number of persons employed in railway transport (euro), 2006 75 Figure 3-10 Annual wages and salaries per number of persons employed in air transport (euro), 2006 77 Figure 3-11 Annual wages and salaries per number of persons employed in maritime transport (euro), 2006 79 Figure 3-12 Annual wages and salaries per number of persons employed in IWT (euro), 2006 81 Figure 3-13 Average number of working days lost per 1000 workers: comparison between the service sectors and the whole economic sectors in selected European countries, 1998 - 2007 105 Figure 3-14 European social dialogue in road transport 106 Figure 3-15 European social dialogue in railway transport 109 Figure 3-16 European social dialogue in air transport 111 Figure 3-17 European social dialogue in maritime transport 113 Figure 3-18 European social dialogue in inland waterway transport 115 Figure 3-19 EU-15 incidence rate of fatal accidents at work (per 100 000 workers) by economic activity 125

18 Social and working conditions in the transport sector of the European Union ______

Figure 3-20 EU-15 incidence rate of more than three days lost through accidents at work (per 100 000 workers) by economic activity 126 Figure 3-21 EU-15 incidence rate of fatal accidents (per 100 000 workers) by economic activity and age classes, 2006 127 Figure 3-22 EU-15 incidence rate of more than three days lost through accidents (per 100 000 workers) by economic activity and age classes, 2006 128 Figure 3-23 EA incidence rate of occupational diseases (per 100 000 workers) by economic activity and disease, 2005 129 Figure 3-24 EA incidence rate of occupational diseases (per 100 000 workers) by economic activity for selected diseases, 2001 and 2005 130 Figure 3-25 EA incidence rate of occupational diseases (per 100 000 workers) by economic activity and age classes, 2005 131 Figure 3-26 EU-27 type of employment contract (2005) 140

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20 Social and working conditions in the transport sector of the European Union ______

EXECUTIVE SUMMARY

The objective of this study is to provide an overview of the recent developments regarding social and working conditions in the EU transport sector. The study covers and analyses each of the following modes of transport: railways, road, maritime and ports, air, and inland waterways.

Economic and occupational dimension of the sector

In 2006, the overall turnover of the transport sector in Europe (road, sea, air, railways and inland waterways transport) amounted to EUR 664 500 million. The largest industry is road transport, representing 55% of the whole transport sector turnover. Other modes of transport have minor shares: air (18%), sea (14%), railways (12%), and inland waterways (1%).

The transport sector provides a considerable source of employment: in 2006, employment rates in EU-27 were equivalent to 8.9 million persons, of which 53% worked in road transport, 10% in railways, 5% in air, 2% in sea and inland waterways, and 30% in other auxiliary transport activities including travel agencies.

Between 1998 and 2007, the growth of transported goods in EU-27 was 2.8% per year, which roughly matched the economic growth of 2.4%. Passenger transport grew at a lower pace, at a rate of 1.6%. Interestingly enough, employment rates had slower growth, equivalent to 0.7% per year.

During the last quarter of 2008 when the European economy actually slid into recession, employment in the transport sector started to be impacted by the crisis. Transport demand is closely linked to economic growth and heavily dependent on the economic and manufacturing sectors’ trends for trade in goods. In addition, it is heavily dependent on consumer confidence when it comes, for instance, to consumption of goods and services, tourism expenditure, etc. Hence, in periods of economic slowdown, transport demand tends to decline. Recent data up to June 2009 indicate that the whole labour market and particularly the transport sector have been strongly impacted by the crisis. From January 2008 to June 2009, employment in ‘land transport and in transport via pipelines’, including both road and railway transport, declined by 2.7%. The air transport sector has been experiencing a dramatic fall in employment levels: in the same reference time frame, 7.6% of the jobs in the sector were lost. Also, waterborne transport has been impacted severely, but only from late 2008: from November 2008 to June 2009, 4.9% of the jobs in the sector were lost.

Wages and payment systems

A comparison with the manufacturing sector indicated that wages and salaries are higher in the air and maritime transport sectors. Road and inland waterway transport salaries and wages are well below the level for manufacturing.

The analysis revealed substantial differences in the levels of earnings amongst countries. On average, gross earnings in the transport sector are as high as in manufacturing. However, in many NMS the transport sector pays higher salaries than does manufacturing.

There is not a direct relationship between wages and the structure of collective bargaining in the different transport sectors. The highest wages are found in a sector, such as air 21 Policy Department B: Structural and Cohesion Policies ______transport, where company-level bargaining, which tends to increase flexibility of work, is predominant. The level of unionised labour, conversely, displays a direct relationship, since lower wages are found in sectors with lower levels of worker representation (e.g. road transport).

Gender salary gaps in the transport sector are consistent: on average, male employees earn 20% more than their female colleagues; however, in other sectors such as manufacturing, salary gaps are even more consistent (36% in favour of male employees).

Older employees in the transport sector (age class ‘60 years and over’) tend to receive substantially lower wages than employees of the same age in manufacturing, whereas there are no substantial earnings differences for the majority of employees in the age range 30 to 59 in the transport and manufacturing sectors. A reverse trend is revealed in the age class ‘30 years and less’, where salaries in transport are little higher than in manufacturing.

Holding a permanent contract can generally ensure higher wages: employees in the transport sector with a permanent contract earn on average 25% more than employees with a non-permanent contract.

Finally, there is a positive relationship between levels of education and earning. On average, employees in the transport sector with low education levels (pre-primary, primary and lower secondary) earn more than employees in manufacturing. By contrast, the manufacturing sector pays higher salaries to employees with high education levels (tertiary education) than does transport.

Pension schemes

To deal with the economic impacts of the ageing EU population, several MS are restructuring their social benefits and pensions schemes. In the transport sector, the restructuring has mainly been concentrated in the areas of pensions and early retirement. This also applies to air transport, where in the last decade a restructuring of the social benefit schemes involving the majority of employees has taken place. The retirement age for flight and cabin crew has been raised. Employee contributions have in many cases increased, while the generosity of benefits deriving from pension schemes has decreased. Road transport pension systems reported numerous problems due to the large number of self-employed drivers who, usually, do not have easy access to social benefits.

Unfortunately, lack of data and information did not allow an extensive analysis of the functioning of the different pension schemes in use in European MS in relation to the specificities of the transport sectors.

Extent of unionised labour

There are some striking differences in unionisation of labour between transport modes. Fragmentation in road transport is low, while in railways and air transport it is high. Union density is generally high, except in road transport, where employees tend to not aggregate in trade unions. Bargaining is performed at company level in the air transport sector, while in the other transport modes collective agreements are prevalent.

In recent years, major steps towards globalisation, diversification of ownership and/or management, deregulation and privatisation have been experienced by all transport sectors. Each of these developments has had an impact on labour relations in the various subsectors. 22 Social and working conditions in the transport sector of the European Union ______

Fragmentation in the road sector is not very high since generally there is a low number of both employers' organisations and trade unions. The coverage of employer organisations appears to be quite large in some European countries; by contrast, there is a low density of employees in trade unions. Notwithstanding this aspect, it seems that agreements between employers and employees' representatives determine important aspects such as wages, job classifications, leisure time, overtime, special leave, holidays and issues of security and flexibility.

In the railways sector, trade union representation is characterised by the presence of numerous organisations, often by reference to specific professional groups, such as engine drivers and station masters. In some countries, new trade unions were set up as a result of restructuring processes. The presence of both private and public sector employees in the same sector and, in certain circumstances, in the same company, can be a further source of fragmentation. In all analysed countries, union density is always very high. As a matter of fact, the presence of employers' organisations in the railway sector is not common, and collective bargaining is therefore carried out mainly at company level. However, multi- employer representation is present in a number of countries.

As in the railways sector, in the airline industry, due to the diversity of functions in this specific sector, most countries have a range of different trade unions. Different unions often organise cabin crew, pilots, ground staff, administrative staff and manual staff. Trade union density is generally relatively high in the airline sector as a whole and particularly for the pilots. Similarly, rates of over 90% are not uncommon in the case of cabin crew. This is not surprising because in many countries, the airline sector has a history of high levels of unionisation, reflecting the previous public status of the national carriers. With regard to low-cost airlines, trade unions have tried to recruit new members and to gain recognition for bargaining purposes. However, they encounter (and are currently encountering) resistance. Overall, there is an absence of sector negotiations in many countries, in the majority of cases bargaining takes place predominantly at company level, reflecting the fact that national carriers dominate the industry (or used to).

In the sea and coastal water transport sectors, trade unions’ domains often overlap with the demarcation of the sea and coastal water transport sectors. The sector reports high unionisation rates which, combined with the inter-union policy coordination under the ITF umbrella, helped to establish a regulatory framework for social protection of workers in the sector. Most of the countries report a high collective bargaining coverage rate, ranging from 50% to 80% or even higher.

Social Dialogue

Social dialogue represents one of the instruments of governance in the employment and social area in the European Union and in the Member States. It refers to the discussions, consultations, negotiations and joint actions undertaken by the social partner organisations representing the two sides of industry (management and labour). The study particularly focuses on the sector social dialogue, which takes place between sector employer federations and the industry federations on the trade union side. Depending on the actors involved, a further distinction is made between bipartite and tripartite social dialogue. Tripartite social dialogue involves institutions in addition to the social partners.

The development of social dialogue, reducing labour conflicts in the transport sectors, can lead to the achievement of important results for both parties involved as well as society in general. Possible benefits include: increased labour productivity, increased employer’s profits, improved socio-economic conditions for transport workers, etc. 23 Policy Department B: Structural and Cohesion Policies ______

At EU level road transport workers are represented by ETF, whereas road transport employers are represented by IRU. The way social dialogue is organised at national level differs greatly among countries. Although most European countries organise the parties’ representatives nationally, some organise them regionally or locally. Tripartism plays an important role in some countries, predominantly in the NMS. In other cases a lack of well- established social dialogue is evident.

In the railway transport sector, employees' interests are represented by ETF, whilst EIM and CER represent employers' organisations. Also at national level, social dialogue is particularly developed in the railways sector. It is possible to distinguish between two groups of countries that in recent years presented opposite trends in relation to social dialogue. The first group has been characterised by high and sometimes even increasing levels of conflict, which arose mainly out of the railways reform process. The second group has experienced a prolonged period of decreasing, or even absence of, industrial action. Austria, Estonia, France, Ireland, Italy, the Netherlands, Poland, Portugal and Spain belong to the first group. In recent years, in all of these countries, the reform of the railways sector, namely the reorganisation of incumbent railway companies, was at the centre of the conflict.

As for other modes of transport, at European level employees' interests in the air transport sector are represented by the ETF, but also by the European Cockpit Association (ECA). Company interests are represented by a number of employers' organisations active at European level: ACI Europe, AEA, CANSO, ERA, IACA and IAHA. In all MS, social dialogue mainly deals with collective bargaining over pay and working conditions. In some EU countries, predominantly in the NMS, there are also formalised tripartite social dialogue structures.

In the maritime sector, at European level employees’ interests are represented by ETF, while employers are represented by ECSA. In recent years, the sector dialogue has largely focused on the issues of employment, health, safety, and working time.

Finally, in inland waterways transport employees are again represented by the ETF while employers' views are represented by EBU and ESO. In recent years, the social partners have been discussing professional profiles as well as working time.

Working time

Working time in the road sector is regulated by Directive 2002/15 on the organisation of working time of persons performing mobile road transport activities. Self-employed drivers are currently excluded from the scope of the Directive. This has triggered several difficulties, in particular in terms of enforcement problems, increasing work-related health problems, and the increasing phenomenon of 'false' self-employed drivers, who are so declared in order to avoid them being covered by the Directive. Historically, drivers have worked long hours to increase their earnings and reach a reasonable level of take-home pay. Long hours of work, combined with overnight stays away from home, make it difficult for drivers to achieve a balance between work and home life.

In the railways sector, common European working time rules are applied only to mobile workers engaged in interoperable cross-border services in the railway sector (Council Directive 2005/47/EC). The Directive sets minimum standards, which create a level playing field for all companies. However, Member States were allowed to maintain or introduce more favourable provisions than those laid down by this Directive.

24 Social and working conditions in the transport sector of the European Union ______

Working time in air transport is regulated by Council Directive 2000/79/EC that affects all mobile workers in commercial air transport (both flight and cabin crew). Workers in air transport other than those covered by the Aviation Directive are subject to the European Working Time Directive. In the past ten years the number of duty hours has increased for flight crew and cabin crew. For air traffic controllers and ground handling staff not many changes seem to have occurred, with the main changes concerning the number of flying hours rather than total duty hours.

Working time in maritime transport is regulated by Council Directive 1999/63/EC concerning the Agreement on the organisation of working time of seafarers concluded by ECSA and FST1.

In May 2008, the social partners signed a joint agreement on labour standards in the maritime industry. The agreement includes improved provisions for seafarers on working time and rest periods.

Working time in IWT is regulated by the general Directive 1993/104 as amended by Directive 2000/34/EC, concerning certain aspects of the organisation of working time.

Health and safety at work

All European countries have legislation and rules to protect employees from occupational accidents and health risks. In the early 1990s, EU countries adopted legislation from the EU General Framework for preventive action on quality of work and employment. However, as of today, specific differences across territories still exist.

The framework was designed to pursue a health and safety policy, conduct a risk inventory and assessment, and inform employees on health and safety at work.

Health and safety at work in the transport sector reveals higher incidence rates of both fatal accidents and serious accidents. Nevertheless, between 1996 and 2006, the incidence rates of work accidents decreased in all the different transport modes. Air transport records the highest reduction (minus 54%) and the lowest incidence rate; water transport records minus 36% and land transport2 registered minus 20%.

The transport sector, when compared to all other sectors, registered a higher reduction of fatal accidents, whereas serious accidents still persist with a lower reduction of incidence rates.

Incidence rates of fatal accidents in ‘transport, storage and communications’ largely vary according to workers’ age: the ‘65 years and over’ age class records the highest incidence, while the age class ‘less than 18’ reports the lowest rate. By contrast, serious accidents in ‘transport, storage and communications’ are more frequent among younger employees than among older employees. The incidence of occupational disease in the ‘transport, storage and communication’ sector is far lower than in all the other sectors. Since data by mode of transport is not available, more detailed data would be required for understanding if this also applies to all the different modes of transport without distinction.

1 Subsequently dissolved and included in ITF / ETF. 2 Including road transport and railway transport. 25 Policy Department B: Structural and Cohesion Policies ______

Among occupational diseases, musculoskeletal, neurological and respiratory diseases and those concerned with the sensory organs record the highest incidence rates in ‘transport, storage and communication’. Between 2001 and 2005, incidence rates of these diseases more than doubled; this phenomenon was also observed in all the other sectors.

Not surprisingly, the incidence rate of occupational diseases tends to increase with the age of the worker, with only one exception: workers in the age class of ‘less than 18 years’ record an incidence rate almost 5 times higher than the older age class ‘between 18 and 24’.

General quality and security of employment

It is commonly recognised that globalisation and technological progress are rapidly changing the needs of workers and enterprises. With regard to the transport sector, companies are under increasing pressure to adapt and develop their services more quickly. This is placing greater demands on mobile workers and their ability and readiness for change. This has also resulted in a greater use of fixed-term and more flexible employment contracts, though still below the rates in other sectors. In land transport, which includes road transport and railways, there is a lower use of non-permanent (fixed term) contracts than in all the other sectors (13.8% of total), whereas in water and air transport the recourse to temporary contracts is only slightly less than in the all other sectors (average 22.3%).

As a side effect, the increasing need for flexibility has clearly affected employment security. Employment security is a complex concept that involves different dimensions, such as workers’ expectation of high job tenure in relation to a specific job, their certainty of remaining at work, , income security, and the possibility of combining paid work with private life.

Employees in the road sector usually have a permanent contract. Generally, permanent contracts are more common in road transport than in other sectors. Social security problems have risen from competition with workers from neighbouring non-EU countries, who agree to earn less for a comparable service.

It has been observed that some employees have taken more responsibility on themselves, possibly falsely declaring themselves self-employed. The Commission defines workers who are falsely self-employed as those who are self-employed in order not to fall under the scope of Directive 2002/15/EC on working time, given that they still work under the authority of a transport operator.

Another aspect to be considered is the progressively changing role of drivers. Drivers often take on duties traditionally carried out by warehouse or stock personnel. Also social skills are now often required in the driver's relationship with a client. Growing international transport means that drivers must be familiar with different languages and cultures, and be skilled in communicating with different people. Workers are generally not highly educated, and adjustments to technological and economic changes in the profession would require lifelong training.

The issue of employment security in the railway sector is closely connected to the employer’s legal status. At present the majority of railway undertakings are commercial firms under private law, in which rail workers have the status of private-sector employees. However, there are two main exceptions: national railways that still belong to the public sector, and companies that maintain a large number of civil servants among their staff. 26 Social and working conditions in the transport sector of the European Union ______

Generally, employees working in the latter companies have better employment status and conditions than those working for totally private companies.

As a consequence of the liberalisation process in the railways industry, transport operators need to increase overall productivity and to improve services’ flexibility, particularly in relation to working time, working location, and specific working tasks. This has placed increased pressure on job security.

Traditionally, air transport employees in the EU were recruited under permanent contracts, with the exception of charter airlines and airport operators also hiring staff under seasonal contracts. As of today, we are witnessing an increase in recruitment under non-permanent contracts, giving more flexibility to employers, both in terms of number of employees and personnel expenses. However, in 2006 the majority of workers were still working on a full- time basis, under unlimited contracts. From 1997 to 2006, according to Eurostat Labour Force Survey, part-time contracts recorded a strong growth (from 9% in 1997 to 19% in 2006), while the share of workers with a fixed-term contract increased at a much slower pace (from 9% in 1997 to 11% in 2006). Overall, there is a trend in the sector towards more flexibility in contracts, in particular for ground handling staff. For cabin crew the use of fixed-term contracts seems to have increased, partly as a result of the entry of new airlines to the market and more competition between airlines for pilots’ employment.

With regard to seafarers, it appears that it is not uncommon to employ crews on short-term contracts because of the cyclical and contract-driven nature of the work. However, the presentation of an accurate picture of the seafaring workforce and of its condition is rendered difficult by the specific characteristics of the industry, such as the flag and registration status and the consequent lack of clarity over ship ownership.

Following the liberalisation process in the IWT, the social conditions and job security of workers in the sector were at stake. In order to employ ‘temporary’ crew members, shipowners in Western countries laid off national employees who were on higher wages than workers from the Eastern countries. Furthermore, these members of staff were paid substantially lower wages and were entitled to limited social benefits. In relation to quality of work, it should be highlighted that freight transport in IWT is predominantly superregional and not regular. The consequences are not only that the crews are permanently away from home on business, but that they usually can only make short-term plans for their leisure time.

Consequences of liberalisation of the transport sector for working conditions

EU legislation requiring and accelerating liberalisation of the transport market has led not only to a broad reorganisation of the transport sector, but also to a consolidation process and mergers of transport operators. Since the 1980s, the transport sector has experienced an unprecedented restructuring driven by market liberalisation, commercialisation (EU- driven) and privatisation initiatives (mainly national decisions).

The Commission recognises that liberalisation is often perceived as a negative phenomenon with negative effects on employment or working conditions. However, the Commission perceives restructuring as necessary to the survival and development of enterprises bringing valuable advantages to consumers.

With liberalisation in road transport, there has been a gradual shift in activities from those companies which are exclusively dedicated to transporting, towards those which also organise freight transport and therefore the whole supply chain. Liberalisation and EU 27 Policy Department B: Structural and Cohesion Policies ______enlargement have allowed companies increasingly to make use of more affordable labour from Eastern Europe through cabotage services, as well as establishing subsidiaries in Eastern Europe. As a consequence, there is high pressure on transport workers from Western and Eastern Europe. An additional problem is the increase in the number of drivers with self-employed status who do not comply with the same obligations as employed drivers. As a result, the sector has a low level of job satisfaction and a high turnover, which has led to a shortage of experienced drivers as well as to recruitment-related issues.

In the railways sector, the key changes include the break-up of the former state-owned quasi-monopolies into different companies, both in the former EU-15 countries and in many of the NMS. This has led to the separation of passenger and freight transport service provision from infrastructure management and to a greater focus on core activities, with outsourcing of non-core activities. The impact of these developments on employment levels and on working conditions in the sector has been substantial and has often led to conflicts between social partners in this area.

Liberalisation in the air transport sector effectively removed all entry barriers, so that European carriers were free to operate on any intra-EU route. The process of phased liberalisation changed the nature of competition in European aviation and paved the way for the growth of no-frills operators. For short-haul traffic particularly, this meant existing European airlines facing a reduction in their market share as new entrants emerged. Such a competitive pressure required the rationalisation of their cost base, including reviewing workforce size.

The effect on employment was twofold: on the one hand the process of restructuring and merging that has followed liberalisation created numerous redundancies, on the other hand new market entries, the development of low-cost airlines and the start-up of new regional routes have resulted in relevant job creation.

During the past three decades, EU regulation has further opened up national markets in the sea transport sector to competition. However, the industry has been facing more serious challenges than EU liberalisation. These challenges can be mainly ascribed to the high level of globalisation in the shipping industry and to the use of ‘flags of convenience’ – a practice whereby shipowners ‘flag out’ to countries which are more attractive than European countries in terms of taxation, social legislation, safety and environmental standards. Such practices have had ‘dumping’ effects in terms of labour and social standards in EU shipping.

The EU-wide deregulation and liberalisation of transport markets has of course affected the IWT freight markets. This has resulted in changes in the employment structure of the enterprises since staff costs are the major part of the cost structure. With liberalisation, freight rates went down, sometimes dramatically. As a result, shipping companies laid off employees and ships were outsourced and registered under cheaper flags. Owner-operators in countries with high wages reacted by employing ‘temporary’ staff from Eastern countries.

This process of labour migration and mobility puts pressure on general salary levels and social security. By contrast, countries in Eastern Europe record staff shortages due to the ’drain‘ of staff to Western Europe.

28 Social and working conditions in the transport sector of the European Union ______

Recommendations

In line with the outcomes of the study the following issues were identified as worth further investigation and discussion by the European Institutions:

1. Understanding and monitoring the crisis in order to take proper corrective action. As a consequence of the current economic downturn the employment level in the transport sector in the EU-27 has been declining. The crisis is forcing employers to reduce costs. This results in reorganisation procedures, putting workers under pressure. The weaker categories of workers are likely to be strongly affected (e.g. workers with short-term contracts, workers without regular contracts, women, etc.). Past experience has shown that during crisis periods trade unions are likely to lose power, hence the maximum effort should be directed towards social dialogue to protect workers’ social conditions. 2. Investigating pension systems and early retirement for health reasons. The available information and data did not allow an investigation into whether the incidence of early retirement requests for health reasons in the transport sector is higher than in other sectors. Another aspect that could be worth analysing is the capacity of well-educated/trained mobile workers to adapt to new duties when health problems occur. 3. Cross-border collaboration between trade unions. Recent developments in market structures, particularly in the railway sector and civil aviation, have had profound consequences for relations between management and workers and their unions. It seems that, at least in some cases, this has resulted in the need for new forms of supranational labour relations. It would be interesting to investigate this topic and find out whether trade unions are still too much focused on national bargaining and do not yet have a European perspective where it might be needed. 4. Promoting gender equality actions. Women workers in the transport sector suffer from lack of visibility even if their participation in the industry is likely to grow considerably in the future. It was found that only 25.7% of workers employed in the transport sector are women and that on average, male employees earn 20% more than their female colleagues. It is clear that while employment patterns in the industry are changing, gender segregation and discriminatory practices persist. 5. Further investigating health at work. The incidence of occupational diseases in the transport sector is well below that in the manufacturing and other NACE sectors. Nonetheless, incidence rates of occupational diseases have presented relevant growth between 2001 and 2005. For instance, the incidence of musculoskeletal diseases in the transport sector has increased from 4.2 per 100 000 workers in 2001 to 11.5 per 100 000 workers in 2005. 6. Further investigating safety at work. Fatal accidents at work in the transport sector still represent a major concern, even though in the last decade, they have largely declined. Only air transport records an incidence of fatal accidents at work lower than in all other economic activities. Another concern that emerged from the analysis is that in the transport sector the incidence rate for fatal accidents in the age class ‘65 years and over’ is far above the average compared to other sectors. It would be useful to find out in which transport sectors and in which circumstances these fatal accidents occur in order to propose corrective measures. 7. Contrasting social dumping practices in road transport and promoting fair competition between road transport and other modes of transport. Following the

29 Policy Department B: Structural and Cohesion Policies ______

opening up of the road transport market, companies have been increasingly using more affordable labour from Eastern Europe through cabotage services, as well as establishing subsidiaries in Eastern Europe. The number of drivers with bogus self-employed status, who do not comply with the same obligations as employed drivers, has increased. Social dumping is creating unfair competition between road transport and other more sustainable modes of transport. Hence there should be greater supervision of compliance with rules in order to create fair and comparable framework conditions for competition between transport modes and also within the road transport sector. 8. Assessing the impact of liberalisation and privatisation processes in the railways and the air transport sectors. Extensive restructuring and rationalisation measures in the two sectors have led to huge redundancies in the workforce. Restructuring has also increased market pressures in all countries and has influenced the quantity and quality of employment. In the years ahead, this process of liberalisation and restructuring is set to continue and intensify. Even if liberalisation in the sector is likely to reduce employment levels, restructuring is necessary to foster competitiveness. Further investigation of these aspects is recommended in order to understand if employment reductions have resulted in worsening working conditions and in increasing wage differences between old work contracts and new contracts. Finally it would be useful to verify the number of workers that are employed in outsourced services and no longer covered by official statistics on employment in the transport sector (e.g. in ground handling, in railway ancillary services, etc.). 9. Preventing shortage of workers in IWT. The shortage of qualified personnel in IWT is a real challenge for the sector. This profession has a poor image associated with low working conditions, low wages and a problematic work-life balance, particularly for employees in international freight IWT. The sector is characterised by the ageing profile of the workforce and a low attractiveness to young people. In order to reverse this trend and to draw young people to join this profession, new ideas are needed. 10. Promotion of statistical data collection. Statistics on employment and indicators on the social condition of transport workers in Europe are generally not available or not provided with a satisfactory level of disaggregation. This means for instance that an indicator is available for the broad sector including ‘transport, storage and communication’ but is not available specifically for the railways sector. Hence, often, it is not possible to individually assess a specific transport mode. This is a priority issue because it limits the capacity to provide policy makers with valuable supporting studies on the matters of concern.

30 Social and working conditions in the transport sector of the European Union ______

1 INTRODUCTION

The transport sector in the European Union is divided into different transport modes. Each transport mode has its own characteristics as regards social and working conditions. The economic, political and legal framework for each transport sector is constantly changing, as are the labour market, the quality and security of employment and social and working conditions in each mode of transport. In order to get a better understanding of current development as regards the social and working conditions dimension of EU transport, the Transport and Tourism Committee of the European Parliament has requested this pre- study.

1.1 Objective and content of the study

The aim of this study is to give an overview of recent developments and key issues, as well as of best practices regarding social and working conditions in the transport business in the EU. The study assesses a broad variety of aspects: current problems, challenges and the main conflicting interests existing in each transport sector. The study covers and analyses each of the following modes of transport:

- railways, - road, - maritime transport and ports, - air transport, - inland waterways.

In the first part, the study gives an overview of the characteristics of each sector as well as potential peculiarities in certain Member States (MS). This overview comprises a concise assessment of:

- the economic dimension, - the structure of the labour market, - the legal framework related to social and working conditions.

In the second part of the study, social and working conditions in each sector are assessed. In particular, the study covers aspects such as:

- wages / payment systems, - pensions, - extent of unionised labour, - social dialogue, - working time, - health and safety at work, - quality and security of employment.

31 Policy Department B: Structural and Cohesion Policies ______

In the third part are highlighted the main issues and problems that require more attention in the future, for each of the transport sectors analysed. Furthermore, contrasting opinions between employers' and employees' organisations as regards issues/problems for each of the sectors are briefly described.

1.2 Methodology

The study was performed on the basis of a breakdown into four main tasks, carried out consecutively (Figure 1-1). During Task 1, existing studies/position papers, specific reports, Commission and Council impact assessments, analyses already made and specific reports on the examined topics were reviewed.

Figure 1-1 - Methodology used for the study

Task I Task II Task III Task IV OVERVIEW SURVEY ASSESSMENT EVALUATION / RECOMMENDATION

• Overview of existing recent • Survey with materials from selected stakeholders studies, websites, database. Assessment of: • Main differences between Member States • Peculiarities of some • Evaluation of the main Member States issues/problems/challenge • Specific characteristics of s per sector each sector • Recommendations for EU • Similarities between intervention sectors

During Task II an extensive stakeholders’ consultation was undertaken in order to obtain more detailed information for the analysis. The survey encompassed the following main activities:

- review of existing background information provided by the EU, - additional research into published stakeholder positions, - face-to-face/telephone interviews with stakeholders, who provide an EU-wide perspective, - face-to-face/telephone interviews with stakeholders for specific case studies.

The consultation of interested parties involved identifying the major stakeholder groups and evaluating their importance. The selection of the stakeholders to be consulted on the topics examined was an important issue: choosing the most representative stakeholders can, in fact, improve the effectiveness of participation in the consultation process, thus helping to obtain more detailed information for the analyses.

The results of Tasks I and II provided input for Task III (Figure 1-2). The assessment produced results in terms of:

- the main differences between MS,

32 Social and working conditions in the transport sector of the European Union ______

- peculiarities of some MS, - specific characteristics of each sector, - the main differences in each sector.

Figure 1-2 – Description of Task III

Extent of Quality and Payment Working Health and Wages unionised security of Pensions systems time safety labour employment

Main differences between Member States Peculiarities of some Member States

Specific characteristics of each sector Similarities between sectors

The results of Tasks II and III provided input for Task IV (Figure 1-3). The indicators selected for the assessment of social conditions of workers within each transport sector were wages/payment systems, pension schemes, extent of unionised labour, working time, health and safety at work, quality and security of employment, and social dialogue. These indicators made it possible to highlight problems, peculiarities, conflicting interests and challenges in each transport sector and the main differences between MS as well as the peculiarities of some MS and specific characteristics of each transport sector. As a result, general recommendations for further studies and political discussion and/or legislation at EU level have been proposed.

Figure 1-3 – Description of Task IV

Main differences between Member States Peculiarities of some Member States

Specific characteristics of each sector Similarities between sectors

Main problems and challenges per sector and recommendations for further studies

33 Policy Department B: Structural and Cohesion Policies ______

34 Social and working conditions in the transport sector of the European Union ______

2. PART I – OVERVIEW OF THE TRANSPORT SECTOR

Part I of the study gives an overview of the characteristics of each sector as well as of potential peculiarities in certain MS. The overview on the different transport sectors was based on some main tasks: review of the literature and data collection, which encompassed the review of existing studies/position papers and specific reports on some legislative issues and other relevant questions; assessment, for each transport sector analysed (road, railways, aviation, maritime, inland waterways), of three chosen dimensions3:

(1) economic dimension, (2) structure of the labour market, (3) legal framework relating to working and social conditions.

(a) In order to assess the economic dimension, the following indicators were quantified, for each transport sector:

Indicators Level of detail

Turnover By country

Performance in terms Aggregate at the EU of transported freight/ level passengers

Aggregate at the EU External trade level

(b) For the assessment of structure of the labour market, the following indicators were quantified, for each transport sector:

Indicators Level of detail

Employment level per By country mode of transport

Employment growth By country rate

3 For the assessment of the three above dimensions , within each transport sector, some selected indicators were used which were chosen because they appeared the most significant with regard to the aim of the analysis and quantifiable in terms of data availability. This latter issue has to be considered of major importance, since comparisons between the different transport sectors and between Member States when analysing a single transport sector were among the purposes of the study. A proper comparison can be made only when comparable data are available for all transport sectors and for all (or the majority of) Member States. Some considerations on data availability and gaps, as well as some indications on how to fill the gaps, are provided at the end of this section. 35 Policy Department B: Structural and Cohesion Policies ______

(c) The legal framework for social and working conditions in each transport sector has been described based on the main EU provisions regarding working time, driving time and training and recognition of competences. Legislation on health and safety issues has been examined in Part II of the study.

Inland Road Rail Aviation Sea Transport Waterways Transport Transport Transport Transport

Directives on working time

Directives on driving time

Directives on recognition of competences

The data needed to quantify the indicators chosen for the assessment of the three descriptive dimensions of the different transport sectors and, as regards Part II of this study, for the assessment of transport workers’4 social conditions, were collected through:

- desk researches on official websites (Eurostat, European Parliament, European Commission, International and European Trade Unions Associations and Employers' Organisations, national affiliates, other European research institutes and foundations – e.g. European Industrial Relations Observatory (EIRO), etc.);

- analysis of available documents and previous studies (see Bibliography); - primary sources (Survey and direct interviews with selected stakeholders - see Annexes II and III). With regard to data availability, it must be mentioned here that there are incomplete employment statistics and almost no European data or comparative studies available regarding working conditions in the transport sector. Data are especially missing in the following areas:

- development of work contracts (typical and limited work contracts, temporary employment), - investment in training, continuous training and number of apprenticeships, - health and safety and occupational accident statistics, - relationship between work intensity, stress and sick leave.

A more detailed description of data and information missing is provided in the conclusions.

4 As described in Part II of the study, social conditions of transport workers were analysed through the assessment of the following issues, with reference to each transport sector and for the different Member States: - Wages/payment systems; - Pensions; - Extent of unionised labour; - Working time; - Health and safety at work; - Social dialogue; - Quality and security of employment. 36 Social and working conditions in the transport sector of the European Union ______

2.1. The economic dimension

Since economic trends constitute the basis for social developments in the transport sector, observation of the economic dimension of the different transport sectors, using some selected indicators, can help to understand the main factors underlying the development of the employment level and conditions in the sector.

In particular, a strong relationship can be found between the profitability of the sector and the development of employment. For example, in sectors or in periods5 in which profits are under pressure, employers are forced to implement reorganisations, often with negative employment consequences. A strong relationship can also be found between the development of employment and economic development, even if it is less strong than the relationship between employment and profitability.

Accordingly, in order to illustrate the economic dimension of the five transport sectors analysed in this study the following indicators have been chosen:

- sector turnover: given the strong direct relationship between profitability of the sector and development of employment, this indicator allows an understanding of the transport sector's market value;

- number of enterprises: the indicator was chosen as descriptive of the dynamics within the transport sectors: a growing number of enterprises over time can indicate growth in the sector's economic dimension;

- performance indicators: traffic-related indicators are, together with turnover, the most important feature describing the economic dimension of the transport sector: there is no doubt that growth of the market (well indicated by an increase in traffic) has a positive effect on the level of employment in the sector.

In addition, this chapter provides some considerations regarding the effects of volatile fuel prices on the sector and a preliminary assessment of impacts of the current economic and financial crisis on the transport sector.

2.1.1. Turnover

The turnover of the transport sector in Europe (road, sea, air, railways and inland water transport) amounted to EUR 664 500 million in 2006. In comparison to 2005, turnover in the transport sector in 2006 increased by around 9% for the modes taken into account as a whole. As shown in Figure 2-1, in 2006 road freight transport turnover amounted to EUR 280 000 million, while road passenger transport amounted to EUR 91 000 million 6.

5 This could be the case of the current economic and financial crisis. 6 For road transport, data for freight and passenger transport are provided, since road transport is, in terms of turnover, the most important mode of transport in Europe. 37 Policy Department B: Structural and Cohesion Policies ______

Figure 2-1 – EU-27 turnover by mode of transport in 2006 and 2005, million EUR

300,000

250,000 2005 2006

200,000

150,000

100,000

50,000

- Road Freight Road Sea transport Air transport Railways Inland water transport passenger transport transport

Source: EU energy and transport in figures: statistical pocketbooks 2007/2008 and 2009.

Italy, France, United Kingdom and Spain recorded the highest turnover value for road freight transport. In most European countries, except Bulgaria and Greece, the total turnover of road freight transport had been increasing until recently. In several countries, such as Denmark, Germany, Austria, Portugal, Finland and United Kingdom, the increase in turnover of transport of passengers by road has been greater than the increase in turnover of freight transport by road, although the absolute turnover figures remain much higher in freight transport by road.

Air transport held second position in terms of composition of the total turnover (EUR 120 000 million) in 2006. Airline traffic increased further in 2003 (after a decline attributed to the war in Iraq), particularly due to the growth of low-cost and regional airlines. However, full-service and charter airlines have lost passengers during the last few years. In financial terms, full-service airlines and tour operators posted overall losses, after a return to profitability in 2002, and the low-cost sector experienced a marked decline in its profits. The airline sector has also undergone a significant upheaval over the past two decades, due to factors such as:

- progressive liberalisation, leading to the appearance of numerous low-cost airlines; - the severe economic downturn of the early 1990s, which exposed weaknesses such as overcapacity, low productivity, high costs and undercapitalisation; - the terrorist attacks of 2001, which dented confidence in air travel; - the high price of fuel that reached a historic peak in July 2008.

Railway transport produced around EUR 78 000 million of turnover in 20067. In recent years, the railway sector in the European Union has undergone a huge process of change, triggered by market liberalisation, which came about as a result of EU legislation in the area. However, despite its overall decline in recent decades the sector still has major potential, particularly in the light of growing traffic congestion on European roads and the ever-increasing demand for efficient modes of passenger and freight transport.

Turnover in maritime transport in 2006 amounted to EUR 90 000 million. In terms of volume, 90% of Europe’s freight exchanges with the rest of the world are seaborne. Maritime transport services, including offshore activities, are essential for helping European companies compete globally. Among EU MS, short sea shipping is a key element in

7 Eurostat, EU Energy and Transport in figures, Statistical Pocketbook 2009. 38 Social and working conditions in the transport sector of the European Union ______reducing congestion, ensuring territorial cohesion and promoting the sustainable development of the European continent. With more than 400 million sea passengers a year travelling through European ports, passenger ships and ferry services have a direct impact on the quality of life of citizens on islands and peripheral regions. Shipping represents one of Europe's largest export industries, providing deep sea transport services between Europe and the rest of the world, as well as in cross trades between third countries. European shipping is present in all segments of the sector in all regions worldwide. Transport of freight and passengers at sea generated € 24.7 billion in 2006 as a net contribution to the EU balance of payments. In terms of added value, the traditional maritime sectors represent a share of 1.09% in the total GDP of EU-27 and Norway.

EU 27 total turnover in inland waterway transport (IWT) in 2006 was estimated at EUR 5 500 million: the four largest IWT countries – Germany, the Netherlands, Belgium and France – were responsible for more than 80% of this turnover figure8. Operating costs vary significantly from one area to another and from one trip to the next, depending on navigation conditions and on the type of vessel. For reasons of commercial confidentiality and the expense of collecting and forwarding them – especially for small enterprises – data and statistics are rarely available. Where available, they often do not appear to be comparable.

Data on the composition of turnover per country is reported in ANNEX I – TRANSPORT MARKET ANALYSIS.

2.1.2. Enterprises

The highest number of enterprises is found in road transport. The majority of these companies are very small: in 2006 63% had a single employee and 93% less than 10 employees. In the same year, road freight transport (600 000 firms) represented 63% of the total number of enterprises. Road passenger transport (329 758 firms) held second position, accounting for 35% of the total number of enterprises in the transport sector (road, sea, air, railways and inland water transport)9. As in the case of turnover, the number of companies in road freight transport outnumbers the number of companies providing passenger transport.

Compared to the overall road transport sector, the other modes of transport occupy significantly fewer enterprises (in 2006, companies operating in road freight and passenger transport accounted for 81% of the total number of enterprises in the transport sector all modes included10). Especially in the air transport and railways sectors a few companies lead the market. In the air transport sector, with 3 450 enterprises in 2006 operating air transport services, the market can be divided into three sections:

- the 'full-service' sector, which includes national carriers and also other airlines such as Air Europa, BMI British Midland and Spanair; - the 'low-cost' sector, such as Ryanair and easyJet; - the tour operator sector, which includes groups such as MyTravel and Thomas Cook.

IWT and maritime transport accounted respectively for 8800 and 10 150 firms in 2006. The IWT industry has undergone a decade of major changes leading to a reduction in the number of enterprises and vessels and the volume of employment in virtually all countries.

8 Eurostat, EU Energy and Transport in figures, Statistical Pocketbook 2009. 9 Ibidem. 10 Road, sea, air, railways, inland water transport, pipelines, travel agencies and tour operators, other auxiliary transport activities. 39 Policy Department B: Structural and Cohesion Policies ______

In this context, larger companies (mainly the formerly state-owned companies in Eastern Europe) have been split into smaller units. A large part of the European IWT sector is characterised by vertical disintegration: the IWT supply chain is formed by a series of separate functions performed by different companies. For instance, large forwarding companies are responsible at the logistics level, whereas many small and medium-sized broker companies act as intermediaries between shippers and skippers. The four countries with the highest numbers of enterprises are the Netherlands, France, Germany and Italy.

Italy, Greece and Poland are the largest maritime nations in Europe in terms of the number of seafarers. Some 35 000 shipping sector workers were registered in Italy in 2003, constituting approximately 12% of the total seagoing population in the European Union. Of the 35 000 active seafarers some 27 000 were working on vessels flying the Italian flag. Some 19 000 seafarers out of a total of 35 000 were of EU origin in 2003. Poland also provided 35 000 jobs in the European Union, on vessels registered in Poland and/or under other flags. Greece followed Poland and Italy closely with nearly 31 000 seafarers (11% of the total shipping sector workforce in Europe), even though the Greek seafaring workforce declined by a fifth (21%) between 1994 and 2004. Over the same period, the proportion of foreign seafarers in the Greek fleet grew from 34% to 43%. Greek shipping companies employ a further 11 000 individuals ashore. Other important maritime nations are the United Kingdom, making up 9% of the total workforce, followed by Cyprus (8%), the Netherlands (7%) and Latvia (6%) 11.

Figures available for 200612 show that most MS control a higher number of vessels than the number registered in their own flag fleets register, and man them with varying levels of their nationals as officers and ratings. The exceptions to this are Poland and Latvia, where there are many more officers and ratings than national flag vessels, thus confirming their employment on other foreign flag vessels. The number of shore-based personnel in the maritime industries appears to be at least 10 times the number of serving seafarers, and the turnover figure gives some indication of the important contribution these industries make to the European economy. To meet these challenges, the EU has acted to devise a global strategy to make the EU fleet competitive again, by means of ‘positive measures’, to improve on-board safety and environmental protection through strict enforcement of international standards within the EU, and to ensure a level playing field for those carrying goods by sea between EU ports13.

Railway transport encompasses the lowest number of enterprises, since usually there are incumbent railways companies that maintain a dominant position. Typically, the former incumbent is a state-owned commercial company, which heads a group structure where all former activities of the national railways company have been reallocated through a process of ‘subsidiarisation’, i.e. the creation of a number of subsidiaries for the different activities formerly carried out by the single organisation. This structure usually features the separation of service provision and infrastructure management, often achieved through the establishment of separate entities for real estate management, travel services, financial services and so on. These developments can be highly complex and there are instances of railways holding companies with more than 100 subsidiaries, as in the case of the French National Railways (Société Nationale des Chemins de Fer Français, SNCF). Even if the overall situation suggests that incumbent companies have maintained a significant national monopoly, there are signs nevertheless that the European policy of market liberalisation has generated a change within the European railway sector and influenced the strategies of various national actors.

11 ECOTEC, Exhaustive analysis of employment trends in all sectors related to sea or using sea resources, 2006. 12 ETF and ECSA, The mapping of career paths in the maritime industries, 2006. 13 Sectoral social dialogue, available at http://ec.europa.eu/social/home.jsp?langId=en. 40 Social and working conditions in the transport sector of the European Union ______

The number of enterprises by mode of transport in each MS is reported in ANNEX I – TRANSPORT MARKET ANALYSIS.

2.1.3. Performance by mode of transport in relation to the carriage of goods and passengers

The growth of goods transport in EU-27 between 1998 and 2007 was 2.8% per year, which roughly matched the economic growth of 2.4% in that time frame. However, passenger transport grew at a lower pace at a rate of 1.6%%14. In the same period, the increase of employment in the transport sector was on average, 0.7% per year.

Figure 2-2 describes the performance of freight and passenger transport (in thousand millions of tonne-kilometres and passenger kilometres) with reference to EU-27 compared to GDP growth and employment growth in the transport sector. From 1998 to 2007, road freight transport held first position, showing a constant increase in terms of billions of tonne-kilometres with growth rate per year of 3.5%. Maritime freight transport has likewise shown a constant increase in the same time frame (2.7%) while freight transport by railways and inland waterways has remained stable over time, 1.6% and 0.8% respectively. Regarding passenger transport, road and air transport have shown significant growth in the last nine years in terms of number of passengers. Road passenger transport increased by 1.4% between 1998 and 2007, while in the same time frame the growth rate of air passenger transport was 3.7 %.

Figure 2-2 – Transport growth EU-27 in relation to GDP and employment in the transport sector (index numbers, year 1998=100)

Source: Elaboration of data on EU Energy and Transport in figures, Statistical Pocketbook 2009; Employment in the transport sector based on elaboration on data from EUROSTAT short term business statistics (1) passenger cars, powered two-wheelers, buses & coaches, tram & metro, railways, intra-EU air, intra-EU sea (2) road, railways, inland waterways, oil pipelines, intra-EU air, intra-EU sea

14 Elaboration on EU energy and transport in figures, Statistical pocketbook 2009. 41 Policy Department B: Structural and Cohesion Policies ______

As shown in the figure above, there is a strong relation between GDP growth and transport of freight: between 1998 and 2003 the two indicators followed almost the same path; in 2004 freight transport experienced an upsurge compared to GDP, finally in the time frame 2005 – 2007 the two indicators showed a similar growth trend.

In addition, passenger transport seems to be strongly dependent on GDP growth even if in this case rates of growth of passenger transport are constantly lower than rates of growth of GDP.

Employment trends seemed to be somehow related to growth in freight transport and passenger transport; however, it is clear that other factors had also influenced employment in this time frame. It is interesting to note that employment in the sector was starting to grow in 2005 after a declining period between 2001 and 2004. Hence, the transport sector started to experience the need to hire new workers one year after it experienced an upsurge in freight transport demand and to a lesser extent in passenger transport demand.

2.1.4. Effects of volatile fuel prices

Oil prices reached a historic peak in July 2008 and subsequently started to fall in response to changing supply and demand conditions when expectations of a major economic slowdown or recession started to prevail.

Despite recent price volatility, the authoritative World Energy Outlook 2008 of the International Energy Agency assumes that the crude oil import price will average $100 per barrel (in constant 2007 dollars) until 2015 and rise subsequently to $120 by 2030. High oil prices can have a significant impact on numerous industries, including the transport sector in particular because of its dependence on oil products.

Higher fuel costs have manifold effects on the logistics chain, including an increased use of intermodal transport or changes in the management of stocks. There is not yet a viable alternative to fossil fuels for road transport, and other modes of transport offer limited substitution possibilities. Road transport enjoys a considerable comparative advantage when it comes to speed and flexibility. Trains and inland waterway vessels are not adequate for door-to-door delivery but their role could increase in long-distance transport, if the intermodal shift induced by relatively high fuel prices was to persist.

As regards passenger transport, in 2008 it was observed that, faced with unprecedented fuel prices at the pump, American and European drivers began to purchase less fuel, switching to more efficient cars, driving less and using public transport more often. It remains to be seen whether these behavioural changes are transitory or permanent considering that in the short term fuel prices are not expected to reach peak prices again.

2.1.5. Consequences of the economic crisis

At the time of issuing this report, the EU economy is clearly suffering from the ongoing global economic crisis, which has deepened and broadened in recent months. Recently- released data confirm that the EU had slid into technical recession by the fourth quarter of 2008, as economic activity fell for a third consecutive quarter15.

15 Eurostat: news-release euro-indicators 19/2009 (13 February 2009).

42 Social and working conditions in the transport sector of the European Union ______

Within this context, the European Commission16 has stated that ‘The unprecedented crisis in international financial markets has created major challenges for the EU. Coordinated action at EU level by all 27 MS has been effective in stabilising Europe's banking system. […] Nevertheless, the financial crisis is not yet over and is already feeding into a serious downturn affecting the wider economy, hitting households, businesses and jobs. The shocks hitting the European economy are expected to both reduce the potential growth rate in the medium term and cut actual growth significantly in 2009 and 2010. As investment shies away from risk, productivity will be put under downward pressure and innovation may suffer. […] Measures might include funding for transport, energy and high technology, and tax cuts to increase demand for energy-efficient goods and services.’

Moreover, given the current difficulties of the European economy, the European Commission17 has recently said that ‘Any state aid should be channelled through horizontal schemes designed to promote the Lisbon objectives, notably research, innovation, training, environmental protection and in particular clean technologies, transport and energy efficiency. The Commission will temporarily authorise MS to ease access to finance for companies through subsidised guarantees and loan subsidies for investments in products going beyond EU environmental standards’.

The expected prolonged recession in large economies of the ECE region18 will have various effects on the transport sector. Growth of transport services will decline broadly in line with GDP trend. Freight traffic will be affected by the projected decline or stagnation in merchandise trade. Passenger traffic will see shifts to public transport modes, providing that they are available19.

According to available statistics, freight transport growth decelerated more significantly than GDP growth across the ECE region. The pattern of slowdown differed across markets and transport modes. All transport modes have been and will continue to be affected negatively by the weakening consumer and investment demand20.

The International Road Transport Union (IRU) published in January 2009 its Road Transport Indices for 200921. Based on GDP, road freight volumes and registrations of new commercial vehicles, tracked in 16 OECD countries22, the IRU Indices indicate a decrease in economic growth and stagnation of new vehicle registrations and road freight volumes. For the beginning of 2009, the IRU indices forecast:

- a decrease in GDP by 0.3%, in comparison to an overall increase of 1.5% in 2008; - a flat growth of 3275 mio. tonnes of road transport volumes, as in the fourth quarter of 2008; and - a stagnation of new vehicle registrations after an overall increase of 0.7% in 2008.

16 Communication from the Commission: From financial crisis to recovery: A European framework for action (COM/2008/706) (29/10/2008). 17 Communication from the European Commission: A European Economic Recovery Plan (COM/2008/800) (26/11/2008). 18 ECE region (Economic Commission for Europe) include Europe and North America. 19 United Nations – Economic and Social Council, review of the transport situation in UNECE Member Countries and of emerging development trends, Note by the Secretariat, ECE/TRANS/2009/3, 17 December 2008. 20 Ibidem. 21 http://www.iru.org/index/en_media_press_pr/code.955/lang.en 22 Austria, Belgium, Denmark, Finland, France, Greece, Ireland, Italy, Luxemburg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland United Kingdom 43 Policy Department B: Structural and Cohesion Policies ______

Community of European Railways and Infrastructure Companies (CER) statistics23 indicate that rail freight traffic has strongly declined in Europe since mid 2008. The figures worsened in January 2009 with freight traffic volumes declining by about 35% compared to January 2008. By contrast rail passenger traffic saw an increase on passenger-km by 2.2%, from 541 billion passenger-km in 2007 to 553 billion in 2008. However, the latest figures, which CER collected from its members in spring 2009, show a fall in numbers related to the current economic crisis: for countries in Central and Eastern Europe passenger-km fell by 5% in January 2009 compared to January 2008, while for EU-15 countries it was around 2% less.

UIRR statistics24 indicate that road-railways intermodal traffic increased rapidly in Europe in 2007 when it jumped 9% over the previous year. Growth of intermodal transport slowed down in the first eight months of 2008 to 5.4%. Service quality has improved only slightly with less than 60% of international intermodal trains arriving on time.

Europe’s air transport industry has been considerably weakened initially by the escalation in fuel prices during 2008 and more recently by the worldwide economic downturn and the consequent fall in business and consumer confidence. Most industry analysts believe that the effects of the economic downturn on aviation will last longer and be more far-reaching than the more transitory effects of ‘9/11’.

IATA25 reported that international scheduled traffic in May 2009 registered a passenger demand decline of 9.3% compared to the same month in the previous year while freight demand was down by 17.4%. The 17.4% decline in international cargo demand is a relative improvement compared to the 21.7% drop in April. Since December 2008, cargo demand has been moving sideways in the -20% range. International passenger demand weakened from the -3.1% recorded in April 2009 to -9.3% in May 2009. But both of the two months have been slightly stronger than the 11.1% decline reached in March 2009.

During the first four months of 2009, the passenger traffic data of the airlines associated with the Association of European Airlines revealed the extent of current downturn; compared to the corresponding time frame of 2008, passenger traffic was down 9.5%26. Nor do figures on freight traffic offer any relief. Association of European Airlines (AEA) data for the first four months of 2009 are pointing to a freight market decrease of close to 17.5%27.

This trend has been confirmed also from data on traffic at the airports. Figures from Airport Council International (ACI) Europe indicates that while the last five years (2002-2007) saw passenger traffic growing by more than 40%, 2008 saw both passenger and freight traffic quickly decreasing quarter after quarter. By December 2008, more than 80% of European airports were registering traffic decreases, with the fall averaging –7.7% for passenger traffic and –21.4% for freight traffic28. Recently the situation has further deteriorated: the latest ACI EUROPE quarterly figures (January-March 2009) indicated a decrease of -12.4% for passenger traffic and -23% for

23 Community Of European Railway and Infrastructure Companies (CER), Towards a Sustainable Rail Network, Annual Report 2008, May 2009. 24 United Nations – Economic and Social Council, review of the transport situation in UNECE Member Countries and of emerging development trends, Note by the Secretariat, ECE/TRANS/2009/3, 17 December 2008. 25 IATA, Press Releases & Briefs: Passenger Decline Stabilizes - Some Improvement in Freight, No. 30, 25 June 2009. 26 Association of European Airlines: Traffic Update (15 June 2009). 27 Ibidem. 28 ACI Europe on the Crisis - Empower Europe’s airports to boost economic recovery (March 2009). 44 Social and working conditions in the transport sector of the European Union ______freight traffic, with close to 90% of European airports losing traffic29. ACI Europe forecasts an overall decrease of -5% for passenger traffic and -15% for freight traffic at European airports for 2009. Passenger traffic is expected to keep decreasing in the coming months because of the unusual gap between the decreases in freight and passenger traffic. Freight traffic has historically been a barometer for international trade and its present levels reflect the deep impact of the crisis on businesses and, more generally, the economy. Furthermore, there appears to be still a negative demand/supply mismatch in the market, and airlines will make further capacity cuts in the coming months.

The global financial and economic crisis has of course consequences for global and European shipping30. Shipping being a cyclical business, a downward cycle was expected after an exceptional boom period for an unusually long time. However, the downward cycle has been strongly reinforced by the financial and economic crisis.

International shipping rates fell rapidly in the second half of 2008 and are bound to remain subdued in 2009 while the quantities shipped (both liquid and dry bulk) keep declining.

The continuous success of European shipping in world markets cannot be taken for granted. The current crisis of the international financial system, its impact on the real economy and the sluggish recovery prospects in different parts of the world have affected seaborne trade and thus the different branches of the shipping industry. A number of major challenges have been identified by experts consulted by the Commission and are briefly reported below31.

In a recession period, short sea shipping is a perfect vehicle for stimulating intra-EU trade exchanges and thus supporting recovery of growth in the EU and its neighbouring countries. Afterwards, when the European and world economy will have recovered from the current financial crisis, international trade will grow and this will require a maritime transport system able to deliver advanced logistical solutions.

Moreover, recent developments in the energy markets, including the cutting off of pipelines for gas supplies, have underlined the strategic importance of LNG32 tanker-ships for ensuring a stable and long-term solution to guarantee reliable energy supplies to the EU. In a wider context, those developments serve as a reminder of the importance of the fleet, in all its branches of activity, for the well-being of European citizens and of the European economy as a whole.

Operators involved in the provision of maritime transport services and European maritime transport as such will face significant challenges in the years to come33. They will have to cope with fluctuations in sea-borne trade, the negative impact of the financial crisis and other external factors, such as the risk of overcapacity in certain market segments, the rise of protectionist measures affecting world trade, environmental concerns related to climate change, volatility in energy and other commodities markets and loss of European maritime know-how because of the scarcity of skilled human resources.

29 ACI EUROPE pushes for crisis relief at European and national levels Report by Robert O’Meara (June 2009) available at http://www.airport-business.com/2009/06/aci-europe-pushes-for-crisis-relief-at-european-and- national-levels/. 30 European Community Shipowners' Associations, ECSA Newsletter N. 8/08 31 European Commission, The European Union's maritime transport policy for 2018, MEMO/09/16, Brussels, 21 January 2009. 32 Liquefied natural gas. 33 This expectation is confirmed by the outcomes of a recent report by PricewaterhouseCoopers: German Shipping companies caught between pirates and the economic crisis (Survey of 101 decision-makers at German ocean shipping companies (July 2009). 45 Policy Department B: Structural and Cohesion Policies ______

Finally, competitive advantages given by third countries to shipping businesses entail a real risk of delocalisation of head offices and maritime industries outside Europe. Often the position of European operators is undermined by unfair competition, which results from lax enforcement of safety, security, environmental and social standards in certain parts of the world. Achieving effective governance of maritime affairs and an international fair and level playing field for maritime transport remains a crucial challenge to the global community.

Section 0 provides a preliminary assessment of the possible effects of the current crisis on the transport sector labour market.

2.2. The structure of the labour market

This section intends to examine the employment levels and evolutions in each transport mode. Furthermore, it provides a preliminary assessment of the impacts of the current financial and economic crisis on the transport sector labour market.

2.2.1. Total employment per transport mode

According to the latest available data34, the transport sector occupies an important position in the EU and is a key factor in modern economies. Transport provides a considerable source of employment: in 2006 the transport services sector employed about 8.9 million persons in EU-27. Almost two thirds (63%) of them worked in land transport (road, railways, inland waterways), 2% in sea transport, 5% in air transport and 30% in supporting and auxiliary transport activities (such as cargo handling, storage and warehousing, travel and transport agencies, tour operators).

Figure 2-3 – EU-27 Employment by mode of transport in 2006 (%)35

32%

21%

2% 5%

25% 10% 5% 0% 0% Road Freight transport Road passenger transport Sea transport Air transport Railways Inland water transport Pipelines Travel agencies & tour operators Other auxiliary transport activities

Source: EU energy and transport in figures, Statistical pocketbook 2009

From a national perspective, the available data (2006) indicate that around 60.6% of total transport employment in EU-27 was located in five MS – Germany (14.8%), France (12.7%), the UK (12.2%), Italy (10.9%) and Spain (10.0%). Other MS that accounted for significant levels of employment in the transport sector included Poland (6.6%), the Netherlands (4.0%), Romania (3.3%) and the Czech Republic (3.0%)36.

34 EU Energy and Transport in figures, Statistical pocketbook 2009. 35 Road passenger transport includes urban public transport. 36 EU Energy and Transport in figures, Statistical pocketbook 2009. 46 Social and working conditions in the transport sector of the European Union ______

The distribution of employment by transport subsector also highlights important differences between the MS in relation to their geographical location or area of specialisation. For example, employment in sea and air transport is particularly important in countries that have longer coastlines or that are relatively isolated geographically – Cyprus, Malta, Ireland and Greece. Conversely, employment in railways and inland waterway transport seems to be more important in some Central European countries, such as Slovakia, the Czech Republic and Hungary. On the other hand, auxiliary services, which include tourist services, constitute an important source of employment in countries that are popular tourist destinations, such as Malta or Cyprus; these services are also important employers in countries such as Germany or the UK, which are particularly specialised in cargo handling, storage and logistics. The importance of railway transport in the new Member States (NMS) should also be underlined37.

From a gender-specific perspective, women's participation in the transport sector is growing; nevertheless, as a whole, women’s involvement can still only be regarded as minor, particularly in certain subsectors. In fact, transport is one of the most gender- segregated sectors of the economy: in 2005, just 20.5% of the EU-27 transport workforce consisted of women, in comparison with an overall female employment rate of 43.5% of total employment. Nevertheless, the presence of women in the transport sector has slightly increased since 2001, when women comprised 19.8% of the transport workforce compared with 20.5% in 200538. From a national perspective, it is clear that women's employment in the transport sector is limited in all of the EU-27 MS. The available data indicate that female employment was particularly low in the case of Poland, Greece and Bulgaria, constituting less than 16% of total transport employment. In contrast, in the same year women accounted for between 25% and 28% of total employment in the sector in countries such as Cyprus, Estonia and Malta. The strong presence of tourism-related transport activities and the small size of the national economies may explain these results, particularly in the cases of Cyprus and Malta39.

Road transport

Commercial road transport occupies an important position on the overall socio-economic ladder of the transport sector. Being the mode of transport that conveys the majority of passengers and goods to their final destinations, road transport is indispensable to tourism, trade and the well-being of any economy. International transport and logistics companies are purchasing modern vehicles and spending more on technology, crews, containers and management than ever before. International expansion provides employment for workers in developed and developing countries. This increases opportunities not only for drivers but also for managerial, administrative and other service-related positions. In the EU-27, of the 8.9 million persons employed in transport services in 2006, freight and passenger road transport accounted for around 53% of employment, making it the largest single employer by far.

The figure below shows the employment trend in road passenger transport for EU-25 in the period 2000 – 2006.

37 Innovative gender equality measures in the transport industry, European Foundation for the Improvement of Living and Working Conditions, 2007. 38 Innovative gender equality measures in the transport industry, European Foundation for the Improvement of Living and Working Conditions, 2007. 39 Ibidem. 47 Policy Department B: Structural and Cohesion Policies ______

Figure 2-4 – EU-25 Employment growth in road passenger transport (index numbers, year 2000=100)

116 111.4 111.6 112 109.1 109.7 108 106.8

104 100.0 100

96

92 2000 2001 2002 2003 2004 2005 2006

Source: Years 2000-2003: EUROSTAT (2002 is not available) Year 2004: Energy and Transport Pocketbook 2006 Year 2005: Elaboration on data from Energy and Transport Pocketbook 2007 Year 2006: Elaboration on data from Energy and Transport Pocketbook 2009

People employed in passenger road transport in EU-25 have constantly been increasing over the observed period. In 2006, the number of employed workers in this sector was 12% higher than in 2000.

Figure 2-13 describes the trend of employed workers in road freight transport in the EU-25 in the period between 2000 and 2006.

Figure 2-5 – EU-25 Employment growth in road freight transport (index numbers, year 2000=100)

120 117.9 114.4 112.8 108.5 110

101.5 100.0 100 95.6

90

80 2000 2001 2002 2003 2004 2005 2006

Source: Years 2000-2003: EUROSTAT Year 2004: Energy and Transport Pocketbook 2006 Year 2005: Elaboration on data from Energy and Transport Pocketbook 2007 Year 2006: Elaboration on data from Energy and Transport Pocketbook 2009

As shown in the figure above, the number of employed workers in road freight transport has been experiencing a great increase over recent years. Specifically, in 2001 the number of people employed declined by about 4% but from 2002 it registered only positive changes. In 2006, the number of employed workers in this sector was 18% higher than in 2000.

Hence, the expansion of the road transport sector both in terms of volumes and of turnovers has resulted in a growing demand for additional staff.

48 Social and working conditions in the transport sector of the European Union ______

Railway transport

Railways have had a crucial impact on economic development in most countries, but in recent years they have been facing a decline for various reasons. However, new challenges related to transport needs, energy markets and environmental impact are likely to revive their importance in the future. Figure 2-6 shows the decline of employment in the railway sector in the EU-25 over the period 2000 – 2006. Unfortunately, comparable statistics on previous years are not available.

Figure 2-6 – EU-25 Employment growth in railway transport (index numbers, year 2000=100)

110

100.0 100 93.8 94.4

90 88.0 86.7

79.7 78.5 80

70

60 2000 2001 2002 2003 2004 2005 2006

Source: Years 2000-2003: EUROSTAT Year 2004: Energy and Transport Pocketbook 2006 Year 2005: Elaboration on data from Energy and Transport Pocketbook 2007 Year 2006: Elaboration on data from Energy and Transport Pocketbook 2009

As shown in the figure, the sector has experienced a dramatic reduction of the number of people employed. Between 2000 and 2006 employment reduction in the EU railway sector amounted to an average of almost 22% of overall employment (or about 230 000 jobs). Figures provided by the European Transport Workers Federation (ETF)40 confirm this declining trend in employment in railways: in Belgium 3000 jobs were lost from 2003 to 2005; in France 3500 jobs were lost in 2005; in Austria the reduction of jobs in railways was 7000 from 2003 to 2006, and 12 000 losses are expected by 2010; in Poland figures indicate 11 000 jobs lost between 2004 and 2006. In the Czech Republic and in Slovakia 6000 jobs were lost between 2004 and 2008, while in Slovenia 7000 railway employees are expected to lose their jobs by 2010.

The main reasons behind these phenomena are the major changes that have taken place in the railway sector over the past two decades. In Europe, nationwide railways monopolies have been subject to step-by-step decline as governments can no longer bear the increasing financial burdens from unprofitable, state-owned activities. Restructuring has been carried out in many countries. Railways restructuring has had a severe impact on the level of staffing of the companies involved. Consequently, there have been many complaints by employees’ representatives about excessive staff reductions, multi-skilling, contracting out, longer working hours, lack of training and inadequate levels of investment in the railways.

Air transport

In recent years, a number of events and new market dynamics have influenced civil aviation and consequently the workers in the industry. Figure 2-7 describes the trend of employment in the air transport sector over the time frame from 1998 to 2008.

40 ETF, Employment and working conditions - Trends in the railway sector, ETF, RMMS meeting 5 July 2005. 49 Policy Department B: Structural and Cohesion Policies ______

Figure 2-7 – EU-27 Employment growth in air transport (index numbers, year 2000=100)

110

100.0 98.8 100 97.3 97.4 95.9 96.4 94.2 94.9 94.8 93.2 90.2 90

80 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Eurostat, Short term business statistics (April 2009)

In the observed time frame the employment level in the sector was characterised by a cyclical trend: in 2008 there were 5.2% fewer workers employed in the industry than in 2000 but still 4.6% more than in 1998.

Events in the United States on 11 September 2001 led directly to a sharp fall in passenger demand. Airlines were forced to reduce capacity in an industry that was already in crisis before that date. This was the start of a restructuring process in the industry that still continues. Several major airlines disappeared as part of that process.

The airline industry has also been facing the rapid growth of low-cost airlines. In May 2006, 27% of intra-EU seat capacity for scheduled flights was accounted for by low-cost carriers. This compares strikingly with the same share of just over 6% in May 2001.

In addition, as described in section 0, the aviation industry has recently faced unprecedented growth in fuel costs that had a direct impact on profits. As a result, many airlines had to suspend flights and discontinue services.

Three distinct phases can be recognised in the development of employment in airlines in the EU over the last two decades41: - 1990-1995: in this time frame many of the largest EU-15 airlines carried out major changes in their organisations; as a result, employment decreased from 366,000 to 338,000 employees, a decrease of 8%;

- 1995-2000: in this time frame on the wave of economic growth, employment in EU-15 airlines grew substantially from 338 000 to 400 000 jobs, a growth of 18%; in particular in 1999 there was a strong increase in airline employment in EU-15;

- 2000-2005: in this time frame the industry once more experienced a drop in the employment level; between 2000 and 2006 employment reduction in the EU-27 civil aviation sector amounted to an average of almost 6.8% of overall employment;

- 2005-2008: in this time frame the number of workers employed in the EU-27 in the air transport industry grew by a total of 1.6%.

41 Social developments in the EU air transport sector, Ecorys, January 2008.

50 Social and working conditions in the transport sector of the European Union ______

It is interesting to observe that different types of airlines have also experienced different employment developments42. - Network carriers: AEA statistics indicate that the number of people employed by network carriers in the EU in 2005 was approximately at the same level as in 1997.

- Regional carriers: employment in regional airlines in the past 10 years has grown at a steady pace. In terms of employment, the regional carriers represent a small proportion of employment in the sector as a whole (approximately 50 000 jobs in the whole of the EU, including non-ERA carriers). - Charter/leisure carriers: charter/leisure airlines represented in the International Air Carrier Association (IACA) employ approximately 50 000 persons. As IACA also represents members from outside the EU-15, part of this employment is based outside the EU-15.

Finally, as regards non-airline employment, available figures43 indicate that employment within EU-15 airport operators over the time frame 1997-2006 remained stable at around 90 000 employees. Between 1997 and 2001 employment decreased by 2%. In the period 2001-2006 there was a recovery in the employment level.

In conclusion, it can be affirmed that economic growth, the profitability of the sector and the level of competition greatly influence the development of employment in the sector.

Maritime transport

The Community maritime transport sector's share of the total world fleet has been declining steadily. Together with increasing concentration and deregulation in the sector, this has led to a substantial decline in the number of employees.

Figure 2-8 shows the trend of employment in waterborne transport in the EU-27 over the period 1998 – 2008.

Figure 2-8 – EU-27 Employment trend in waterborne transport (index numbers, year 2000=100)44

130 123.3

120 110.9 110 101.9 100.0 101.7 97.7 98.7 99.3 98.8 100 96.9 95.4

90

80 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Eurostat – Short term business statistics (April 2009)

42 Information is derived by Eurostat – Short term business statistics and Ecorys - Social developments in the EU air transport sector, January 2008. 43 Social developments in the EU air transport sector, Ecorys, January 2008. 44 It is important to remember that waterborne transport includes both maritime and inland waterway transport, with the latter accounting for about 19% of the total in terms of employment in 2006. 51 Policy Department B: Structural and Cohesion Policies ______

Since 1998, the number of EU-27 nationals working in the sector has declined dramatically. In 2002 the number of seafarers was almost 28% lower than in 1998. From 2002 employment in this sector has reversed this trend and started to grow slowly. In 2008 the number of seafarers employed in the EU-27 was back at the same level as eight years before.

In 2006,45 the number of people employed in sea transport was 171 440 (EU-27) (ANNEX I – TRANSPORT MARKET ANALYSIS).

The most recent available data on employment in maritime transport generally refer to 2005. The following data are available for some EU countries46:

Table 2-1 - People employed in maritime sectors in some Member States (2005)47 Number of Number of Total number Total number officers ratings of seafarers of people (deck and employed in engineers) maritime sectors Denmark 5 500 4 000 9 500 81,000 Germany 4 428 n.a n.a >200 000 Greece 14 000 5 000 18 747 n.a Italy n.a. n.a. 18 000 n.a Latvia 7 500 10 000 17 500 500 Netherlands 3 858 1 002 4 860 135 600 Poland 19 000 26 000 45 000 n.a Spain 15 000 10,000 25 000 n.a Sweden 5 300 6 700 12 000 200 000 UK 12 032 9 621 22 653 250 000

As shown in table above, in the majority of MS the officers outnumber the ratings. The number of shore-based personnel in the maritime industries appears to be at least 10 times the number of serving seafarers. Western Europe (together with North America and Japan) remains an important source for officers, but growing numbers of officers are now recruited from the Far East and Eastern Europe. Eastern Europe has recently become an increasingly large supplier of seafarers, with high numbers from countries including the Ukraine, Croatia and Latvia. Other major labour supply countries include Greece, Russia and the United Kingdom48.

Inland waterway transport

Approximately 43 500 people worked in the IWT sector in 200649, which accounted for 0.5% of the total transport workforce and 19% of total waterborne transport workforce. The majority are employees, the rest are small operators owning between one and three vessels. Figure 2-9 shows the trend of employment in this sector in the EU-27 in the period between 2004 and 2006. In this time frame the workforce employed in this sector increased by 6.1%.

45 European Commission: EU Energy and Transport in figures, Statistical pocketbook 2009. 46 The mapping of career paths in the maritime industries, Southampton University, 2006 (Study promoted by the ECSA and the ETF with the support of the European Commission). 47 Ibidem. 48 Numbers and nationality of world's seafarers, Shipping Facts Information about the international shipping industry , available at: http://www.marisec.org/shippingfacts/worldtrade/. 49 European Commission: EU Energy and Transport in figures, Statistical pocketbook 2009. 52 Social and working conditions in the transport sector of the European Union ______

Figure 2-9 – EU-25 Employment growth in inland waterway transport (index numbers, year 2000=100)

108 106.1

104 102.8

100.0 100

96 2004 2005 2006

Source: Year 2004: Energy and Transport Pocketbook 2006 Year 2005: Elaboration on data from Energy and Transport Pocketbook 2007 Year 2006: Elaboration on data from Energy and Transport Pocketbook 2009

Unfortunately, comparable statistics from previous periods are not available. However, in Figure 2-8 on the basis of the results of the Pine Project50 it seems that over the time frame 1995 – 2004 the labour market for crew members has decreased: in many cases the traditional generation-to-generation succession within family companies was interrupted because the potential successors decided to leave the IWT industry. According to UNECE51, at present the lack of workers in Western Europe is mitigated by an inflow of trained and skilled labour from Central and Eastern European countries.

The distribution of employment by mode of transport in 2006 for each Member State is shown in detail in ANNEX I – TRANSPORT MARKET ANALYSIS.

2.2.2. Age and gender profiles of employees

Figure 2-10 shows employment distribution by age groups in the EU-27 transport, storage and communication sector, in 2000 and 2008. The chart on the left, expressed in terms of volume, reveals a reduction in the number of employed persons for the ‘between 15 and 24 years’ and ‘between 25 and 49 years’ age groups. In analysing the age groups quota on total employment (chart on the right), the ageing of persons employed in the transport sector is apparent; in fact, the ‘50-64 years’ quota of total employment increases from 20% in 2000 to 24.6% in 2006, and the ’65 years and over’ quota from 0.6% to 1.1%.

Eurostat data are available only for the aggregated sector of transport, storage and communication. In future it would be useful to extend the collection of information by Eurostat to make it possible to analyse the ageing of employed workers in each mode of transport.

50 PINE Prospects of Inland Navigation within the enlarged Europe, Final Concise Report. March 2004. 51 UNECE, ECONOMIC COMMISSION FOR EUROPE INLAND TRANSPORT COMMITTEE, Working Party on Inland Water Transport, Workshops on inland navigation matters, March 2006. 53 Policy Department B: Structural and Cohesion Policies ______

Figure 2-10 EU-27 employment by age groups in the transport, storage and communication sector, volume (thousands) and quota (percentage)

10,000 100 8,870 2000 2000 9,000 90 8,115 2008 2008 8,000 80 71.2 7,000 70 66.8

6,000 60

5,000 50

(thousands) 4,000 40 2,989 (percentage) 3,000 2,487 30 24.6 20.0 2,000 20 1,015 919 8.2 7.6 1,000 10 77 129 0.6 1.1 0 0 15-24 25-49 50-64 65 years 15-24 25-49 50-64 65 years years years years and over years years years and over

Source: Eurostat - Employment and unemployment Labour Force Survey (May 2009).

Figure 2-11 reports employment volume and quota disaggregated by sex in the EU-27 transport, storage and communication sector. Men predominate in this sector. From 2000 to 2008, the number of employed persons decreased for both females and males. The male and female quotas of total employment do not reveal significant variations; the female quota increases from 25.5% to 25.7% while the male quota records a reduction of 0.2%. Unfortunately, Eurostat data disaggregated by sex are not available for all modes of transport and when available cover only a few EU countries; there are datasets for principal railways enterprises, goods road transport enterprises, inland waterways transport enterprises, aviation and airport enterprises52. It would be interesting to extend the analysis by gender to all modes of transport.

52 The dataset ‘Employment in principal railway enterprises by sex’ includes the following EU countries: AT; BE; BG; CZ; DE; DK; EE; ES; FI; FR; GR; HU; IE; IT; LT; LU; LV; NL; PL; PT; RO; SE; SI; SK and UK. However, in considering the 1995-2005 time frame, data are not available for BG; EE;FR; HU; IE; LU; NL and UK. The dataset ‘Employment in goods road transport enterprises by sex’ covers the EU countries: AT; CY; CZ; DE; DK; EE; ES; FI; FR; HU; IE; IT; LT; LU; LV; MT; NL; PL; PT; RO; SE; SI; SK and UK. However, in considering the 1995-2005 period, data are not available for: DE; DK; EE; FI; FR;HU; IE; IT; NL; PT; RO; SE; SK and UK. The dataset ‘Employment in inland waterways transport enterprises by sex’ contains the following EU countries: AT; BG; CZ; DE; FI; HU; LT; LV; NL; PL; RO and SK. In the 1995-2005 time frame, data are not available for: BG; CZ; DE; FI; HU; LT and NL. The dataset ‘Employment in aviation and airport enterprises by gender’ includes the following EU countries: CY; CZ; EE; IE; LT; LV; PT; SE; SI and SK. Data are collected from 2001 to 2007. In considering this period, aviation enterprises data are not available for EE; IE; SE AND SK, while air enterprises data are not available for PT; SE and SK. In these datasets, even when data at country level are available, there are several gaps by year in the periods taken into account. 54 Social and working conditions in the transport sector of the European Union ______

Figure 2-11 EU-27 employment by sex in the transport, storage and communication sector, volume (thousands) and quota (percentage)

Source: Eurostat - Employment and unemployment Labour Force Survey (May 2008).

2.2.3. Effects of crisis on employment

The transport sector is heavily dependent on overall economic activity – as it is essential for trade of goods – and on consumer confidence – when it comes, for instance, to consumption of goods and services, tourism expenditure, etc. Hence, transport demand is closely linked to economic growth. In periods of economic slowdown, transport demand tends to decline. Indeed transport, including air, land and sea, is one of the sectors most gravely affected by the financial crisis.

Recent data covering the period up to May 2009 suggest that the crisis has had a severe impact on the whole labour market. Unemployment is rising, job vacancies are still falling and companies continue to announce substantial job reductions across several sectors53.

Up until April, the average unemployment rate in the EU continued to be less affected by the sharp economic slowdown and declines in confidence than in the US. The April unemployment rate in the EU had increased by 1.8 percentage points compared to one year earlier, while in the US it had increased by 3.9 percentage points.

The economic crisis mostly affected sectors that predominantly employ a male workforce, as a consequence men workers were more severely affected than women. This has reversed the historic gap between women and men, with the male unemployment rate starting to exceed the female rate for the first time. The downturn has also impacted on young people, especially young men, resulting in rising unemployment54.

With regard to the transport sector, from September 2008 to mid-May 2009, including cross-national EU cases, the European Restructuring Monitor (ERM)55 registered 41 300 announced job losses, against 13 600 job gains in a total of 91 cases.

53 European Commission, Employment Social Affairs & Social Conditions: EU employment situation and social outlook (June 2009). 54 Ibidem. 55 European Restructuring Monitor (ERM) website: http://www.eurofound.europa.eu/emcc/index.htm 55 Policy Department B: Structural and Cohesion Policies ______

Specific data on employment for the transport sectors up until June 2009 are made available by Eurostat. Figure 2-12 shows the employment trend in EU-27 for land transport and transport via pipeline.

Figure 2-12 Employment index for land transport and transport via pipelines in EU-27 – monthly seasonally adjusted data from Jan. 2008 to June 2009 – (Jan. 2008=100)

Source: Elaboration on Eurostat - Short-term business statistics (September 2009)

As shown in the figure above, employment in land transport and in transport via pipelines, which includes both road and rail transport, was affected by the crisis during the last quarter of 2008 (when the European economy actually slid into recession) and the first two quarters of 2009. From January 2008 to June 2009, employment in the sector declined by 2.7%.

Figure 2-13 reports the recent monthly employment trend in the waterborne transport sector in EU-27.

Figure 2-13 – Employment index for water transport in EU-27- monthly seasonally adjusted data from Jan. 2008 to June 2009 - (Jan. 2008=100)

Source: Elaboration on Eurostat - Short-term business statistics (July 2009)

According to statistics provided by Eurostat the waterborne transport sector has been hit more severely by the crisis than land transport during 2009, but it has also benefited from a robust growth in the period before the crisis. Hence, in the time frame January 2008 to November 2009 the employment rate increased by 4.5%, while in the following period (November 2009 to June 2009) 4.9% of jobs in the sector were lost.

Figure 2-14 shows the employment changes in the air transport sector in EU-27.

56 Social and working conditions in the transport sector of the European Union ______

Figure 2-14 –Employment index for air transport in EU-27 – monthly seasonally adjusted data from Jan. 2008 to June 2009 - (Jan. 2008=100)

106 Air transport

104

102 100 100,1 99,5 99,4 99,7 100 98,9 98,9 99,0 98,5 98,0 98 97,1 95,9 96 94,8 93,8 94 93,4 93,0 92,7 92,4 92

90 2008M01 2008M02 2008M03 2008M04 2008M05 2008M06 2008M07 2008M08 2008M09 2008M10 2008M11 2008M12 2009M01 2009M02 2009M03 2009M04 2009M05 2009M06 Source: Elaboration on Eurostat - Short-term business statistics (July 2009)

As shown in the figure the air transport sector has been experiencing a dramatic fall in the level of employment because of the economic downturn. In the time frame from January 2008 to June 2009 employment in the sector decreased by 7.6%. These figures are confirmed by ERM statistics: nearly 40% of the total number of announced job losses in the transport sector and only minor gains (5% of total new jobs) were reported in the air transport sector.

In conclusion, it was observed that the current economic downturn that followed the financial crisis has severely affected employment levels in the transport sectors. In particular, air transport and to a lesser extent waterborne transport were severely affected by large job losses.

However, while the expectation for the coming periods remains bleak, there are some tentative signs that the pace of deterioration may be moderating. In the whole EU economy the number of announced job losses observed in April-May has halved compared to the preceding months. Economic sentiment including firms' employment expectations and consumers' unemployment expectations, although it remains pessimistic, improved after deteriorating for more than two years56.

2.3. The legal framework

The legal framework relating to employment and working conditions in the different transport sectors mainly includes EU Directives and Regulations addressing the following issues:

- working time, - driving time, - training and recognition of competences, - admission to the occupation.

The provisions of the most relevant acts relating to the social and working conditions of transport workers are described in this section. Legislation addressing health and safety issues in the different transport sectors is presented in section 0.

56 European Commission, Employment Social Affairs & Social Conditions: EU employment situation and social outlook (June 2009). 57 Policy Department B: Structural and Cohesion Policies ______

2.3.1. Working time

For all the sectors, the basic Directive is Council Directive 93/104/EC of 23 November 1993 concerning certain aspects of the organisation of working time. Working time is the period during which the worker is working, at the employer's disposal and carrying out his activity or duties, in accordance with national laws and/or practice. Table 2-2 shows the main provisions of the Basic Directive:

Table 2-2 – European Working Time Directive 93/104

Average weekly Daily rest Weekly rest Night work working time

11 consecutive hours 24 hours plus the 11 8 hours in any 24-hour Max 48 hours per 24-hour period hours' daily rest period

Directive 2000/34/EC amending Directive 93/104/EC extends the provisions of the basic directive to ‘mobile workers’, i.e. any worker employed as a member of travelling or flying personnel by an undertaking which operates transport services for passengers or goods by road, air, or inland waterways.

Directive 2003/88/EC concerning certain aspects of the organisation of working time is an essential piece of legislation in the field of labour law. The Working Time Directive has been transposed in each of the 27 MS. It seems that in certain countries such as Italy the national legislation is perfectly in line with the European Directive, whereas in several other MS such as Austria, Belgium, Germany, Luxembourg or Sweden the national rules are stricter than the ones defined in the European Directive. Box 1 provides a brief description of the main provisions.

Box 1- Some key provisions of Directive 2003/88 Daily rest (Article 3): Workers are entitled to a minimum daily rest period of 11 consecutive hours per 24-hour period. Breaks (Article 4): Every worker is entitled to a rest break where the working day is longer than six hours. Weekly rest period (Article 5): Every worker is entitled to an uninterrupted rest period of 24 hours for each seven-day period plus the 11 hours' daily rest. Maximum weekly working time (Article 6): The average working time for each seven-day period, including overtime, cannot exceed 48 hours. Paid annual leave (Article 7): Workers are entitled to paid annual leave of at least four weeks. Night work (Article 8): Normal hours of work cannot exceed an average of eight hours in any 24- hour period; for night workers whose work involves special hazards or heavy physical or mental strain: a maximum of eight hours in any period of 24 hours during which they perform night work. Mobile workers (Articles 2.7 and 20): ‘any worker employed as a member of travelling or flying personnel by an undertaking which operates transport services for passengers or goods by road, air or inland waterway’. Articles 3 (daily rest), 4 (breaks), 5 (weekly rest period) and 8 (length of night work) do not apply to mobile workers. Workers on board sea-going fishing vessels (Article 21): Directive does not apply to ‘seafarers’ as defined in clause 2 of the European Agreement annexed to Council Directive 1999/63/EC. The Directive shall not apply to any worker on board a seagoing fishing vessel flying the flag of a Member State but it states that Member States shall, however, take the necessary measures to ensure that any worker on board a seagoing fishing vessel flying the flag of a Member State is entitled to adequate rest and to limit the number of hours of work to 48 hours a week on average calculated over a reference period not exceeding 12 months.

58 Social and working conditions in the transport sector of the European Union ______

In the context of the transport sector Directive 2003/88/EC applies to all modes, but different provisions regulate working time in the specific transport sectors; in detail:

- Directive 1999/63/EC and Directive 1999/95/EC (seafarers) provide for the replacement of the basic Directive's general provisions with more specific requirements; - Directive 2000/79/EC (civil aviation); - Directive 2005/47/EC (railways, cross-border workers) provides for specific rules for mobile workers engaged in interoperable cross-border services in the railway sector (see section 0). - Directive 2002/15/EC, Regulation No 561/2006 and Directive 2006/22/EC (road transport)57.

Further details of the regulatory framework for working time in each transport sector are provided in Chapter 0.

2.3.2. Driving time

The European Community has set specific regulations on driving time in road transport, railway transport and air transport that are briefly described below.

Road transport Regulation (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport The main provisions include the following.

- The daily driving period shall not exceed nine hours, with an exemption twice a week when a maximum period of 10 hours is allowed. - There can be six driving periods per week. - The total weekly driving time may not exceed 56 hours and the total fortnightly driving time may not exceed 90 hours. - The daily rest period shall be at least 11 hours, although by way of exception this may be reduced to nine hours three times a week. - There is provision for a split rest period of three hours followed by nine hours to make a total of 12 hours’ rest per day. - Weekly rest is 45 continuous hours, which can be reduced to 24 hours. - Compensation arrangements apply for reduced weekly rest periods. - Breaks of at least 45 minutes (separable into 15 minutes followed by 30 minutes) should be taken after four and a half hours at the most.

Railway transport Council Directive 2005/47/EC of 18 July 2005 on the Agreement between CER and ETF on certain aspects of the working conditions of mobile workers engaged in interoperable cross- border services in the railway sector implements an agreement between the social partners in the various sectors at European level. The agreement strikes a balance between the need to ensure adequate protection of the health and safety of mobile workers in interoperable cross-border services and the need for flexibility in running railway transport enterprises in an integrated European railways network.

57 Directive 2006/22 of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 and repealing Council Directive 88/599/EEC 59 Policy Department B: Structural and Cohesion Policies ______

The main provisions include the following.

- A daily rest period of 12 consecutive hours and breaks of between 30 and 45 minutes are granted to workers. - Daily driving time is limited to nine hours on a day shift and eight hours on a night shift. - Employers have greater flexibility, as under exceptional circumstances they can shorten the daily rest periods to nine hours instead of 11 as provided for in the Working Time Directive. - The MS may introduce more favourable provisions than those laid down in the Directive. Furthermore, the Directive may not be used to justify a lower level of protection for workers where better protection is afforded under existing national legislation.

Air transport Regulation (EC) No 1899/2006 of the European Parliament and of the Council of 12 December 2006 amending Council Regulation (EEC) No 3922/91 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation, providing harmonised safety standards of a high level, including in the field of flight and duty time limitations and rest periods.

The provisions on flight and duty time limitations and rest requirements are set out in Subpart Q of Annex III of the Regulation, taking into account the limits and minimum standards already established in Directive 2000/79/EC. The limits set out in that Directive should always be respected for mobile workers in civil aviation.

The main provisions include the following.

- Total duty periods shall not exceed 190 duty hours in any 28 consecutive days, spread as evenly as practicable throughout this period, and 60 duty hours in any seven consecutive days. - The maximum basic daily FDP is 13 hours and can be extended by up to one hour. - The minimum rest which must be provided before undertaking a flight duty period starting at home base shall be at least as long as the preceding duty period or 12 hours, whichever is the greater. When on minimum rest away from home base, the operator must allow for an eight-hour sleep opportunity taking due account of travelling and other physiological needs. - An operator shall ensure that the minimum rest provided as above outlined is increased periodically to a weekly rest period, being a 36-hour period including two local nights, such that there shall never be more than 168 hours between the end of one weekly rest period and the start of the next. - Airport standby will count in full for the purposes of cumulative duty hours.

2.3.3. Training and recognition of competences

The European Commission has set specific provisions on training and recognition of competences between MS for all transport modes.

Road transport In road transport, training and recognition of competences is governed by the following EU legislation:

Council Directive 96/26/EC of 29 April 1996 on admission to the occupation of road haulage operator and road passenger operator and mutual recognition of diplomas, certificates and

60 Social and working conditions in the transport sector of the European Union ______other evidence of formal qualifications intended to facilitate for these operators the right to freedom of establishment in national and international transport operations; In this context, the Directive’s most relevant provision is that MS must accept as sufficient proof the certificates and documents issued by another Member State.

Regulation (EC) No 484/2002 of the European Parliament and of the Council of 1 March 2002 amending Council Regulations (EEC) No 881/92 and (EEC) No 3118/93 for the purposes of establishing a driver attestation (Driver’s Licence); This regulation aims to establish a uniform Community attestation permitting the effective checking of the regularity of the employment status of drivers from third countries employed by hauliers in the MS and engaged in the international carriage of goods.

Council Directive 2003/59/EC of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers, amending Council Regulation (EEC) No 3820/85 and Council Directive 91/439/EEC and repealing Council Directive 76/914/EEC aimed at enabling drivers to meet the new demands arising from the development of the road transport market by obliging existing drivers to undergo periodic retraining in the skills essential for their profession in order to maintain their qualification of driver. The directive also requires that the State makes arrangements to approve training programmes and certify trainers delivering those programmes.

As a result professional drivers in the European Union can no longer work solely on the basis of their driving licence but are required to acquire knowledge of the construction and main component parts of a vehicle, general knowledge of transport and administrative procedures and practical experience of driving goods or passenger vehicles.

Railway transport A study carried out in 200258 highlighted the wide diversity of national legislation on certification conditions for train drivers, the resulting administrative complications for railways undertakings that wish to operate on the networks of the MS, and the associated operational difficulties in organising cross-border services. The Commission has therefore proposed a single certification model for train driving personnel attesting both to their compliance with certain requirements, including basic fitness for the job, and to their driving skills.

Directive 2007/59/EC of the European Parliament and of the Council of 23 October 2007 on the certification of train drivers operating locomotives and trains on the railways system in the Community, establishes minimum requirements which applicants should meet to obtain a licence or harmonised complementary certificate. The Directive lays down the conditions and procedures for the certification of train drivers operating locomotives and trains on the railways system in the Community. It specifies the tasks for which the competent authorities of the MS, train drivers and other stakeholders in the sector, in particular railways undertakings, infrastructure managers and training centres, are responsible. This Directive applies to train drivers operating locomotives and trains on the railways system in the Community for a railways undertaking requiring a safety certificate or an infrastructure manager requiring a safety authorisation.All train drivers must have the necessary fitness and qualifications to drive trains and hold the following documents:

(a) a licence demonstrating that the driver satisfies minimum conditions as regards medical requirements, basic education and general professional skills. The licence

58 European Commission, DGTREN, Training and staff requirements for railway staff in cross-border operations, December 2002. 61 Policy Department B: Structural and Cohesion Policies ______

must identify the driver and the issuing authority and state the duration of its validity. The licence must comply with the requirements of Annex I, until the Community certification model is adopted, as provided for in paragraph 4; (b) one or more certificates indicating the infrastructures on which the holder is authorised to drive and indicating the rolling stock which the holder is authorised to drive.

The requirements each certificate has to comply with are listed in Annex I of the Directive.

Air transport Council Directive 91/670/EEC of 16 December 1991 on mutual acceptance of personnel licences for the exercise of functions in civil aviation

The main provisions of the Directive are as follows.

- 'A Member State shall accept, without undue delay or additional tests, any licence issued by another Member State together with privileges and certificates pertaining thereto. - Any person holding a private pilot's licence issued by a Member State shall be permitted to fly aircraft registered in another Member State.’

Council Regulation (EEC) No 3922/91 of 16 December 1991 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation. This Regulation concerns the harmonisation of technical requirements and administrative procedures in the field of civil aviation safety, particularly those applicable to the operation and maintenance of aircraft and to persons and organisations involved in those tasks. The common technical requirements and administrative procedures, specified in Annex III, apply to all aircraft. MS must accept certification granted by another Member State or body acting on behalf of another Member State to persons or bodies under its jurisdiction who are responsible for the maintenance of products or the operation of aircraft.

Some of the provisions regarding technical requirements for aircraft and personnel introduced by this Regulation have been amended by:

 Regulation (EC) No 1592/2002 providing common rules in the field of civil aviation and establishing a European Aviation Safety Agency, which establishes an appropriate and comprehensive framework for the environmental certification of aeronautical products as well as for the definition and implementation of common technical requirements and administrative procedures in the field of civil aviation;  Regulation (EC) No 1900/2006 and Regulation (EC) No 8/2008, partly amending and supplementing the common technical requirements and administrative procedures set out in Annex III of Regulation 3922/91;  Regulation (EC) No 8/2008, providing new requirements for both aircraft and personnel, following scientific and technical progress. The Regulation establishes that the flight and cabin crew have to be trained according to new requirements set in Subpart N and Subpart O.

Inland waterway transport Council Directive 87/540/EEC of 9 November 1987 on access to the occupation of carrier of goods by waterway in national and international transport and on the mutual recognition of diplomas, certificates and other evidence of formal qualifications for this occupation

62 Social and working conditions in the transport sector of the European Union ______

The main provisions are listed below.

- ‘The condition of professional competence shall consist in the possession of the standard of competence accepted by the authority or body appointed for this purpose by each Member State. - Member States shall recognise the certificates ,,,, which have been issued by another Member State as sufficient proof of professional competence.”

Maritime transport Directive 2001/25/EC of the European Parliament and of the Council of 4 April 2001 on the minimum level of training of seafarers The training of seafarers plays a major role in maritime safety and in the protection of the maritime environment. It is therefore essential to define a minimum level of training for seafarers in the Community having regard to training standards agreed at international level.

The main provisions oblige Member States to:

- take the measures necessary to ensure that seafarers serving on ships are trained as a minimum in accordance with the requirements of the Standards of Training, Certification and Watch-keeping for Seafarers (STCW) Convention and SOLAS Convention; - mutually recognise certificates held by seafarers who are nationals of another MS.

This Directive has been amended by Directive 2003/103/EC, aimed at simplifying recognition of certificates by introducing a centralised and harmonised recognition procedure at Community level for third countries that comply with the STCW Convention. The new rules lay down a specific procedure for the withdrawal of recognition and for the regular monitoring of the conformity of third-country legislation with the STCW Convention.

63 Policy Department B: Structural and Cohesion Policies ______

64 Social and working conditions in the transport sector of the European Union ______

3. PART II - ASSESSMENT OF SOCIAL AND WORKING CONDITIONS IN THE TRANSPORT SECTOR

In Part II of the study, the specific social and working conditions in each transport sector are analysed. Analyses focus on the following aspects:

- wages and payment systems, - pensions, - extent of unionised labour, - social dialogue, - working time, - health and safety at work, - general quality and security of employment.

All these variables have been analysed for each of the transport sectors examined in this study. According to data availability, information is given for EU-27 and EU-25. In other cases, when data are not found for each Member State, examples are taken from specific case studies. In particular, the main differences between MS are highlighted.

3.1. Wages and payment systems

In this section, data on the level of wages and a description of the structure of payment systems in use are provided for each mode of transport and for each MS. The description of the payment systems is provided when information is available, providing examples from specific countries, illustrating the most important characteristics of the various systems. Payment systems are determined by the following aspects:

- how wages are settled (collective agreements, company agreements etc); - use of bonuses, special allowance, compensation; - type of payment (performance-related, hourly based, fixed income etc).

Some conclusions can be drawn regarding the structure of wage determination, according to the structure of industrial relations and of collective bargaining, as shown in the following table.

Where sectoral bargaining is predominant, collective agreements on wages, work organisation and flexibility, reorganisation and employment reductions, etc. are legally binding for all companies in the sector. Conversely, where bargaining at company level is predominant, greater flexibility of arrangements (on the employer's side) is generally found.

65 Policy Department B: Structural and Cohesion Policies ______

Transport sector Sector bargaining Company bargaining

Only in some countries (e.g. Road transport Predominant Ireland, UK, Latvia, Lithuania, Cyprus) Present to a limited extent (e.g. Railway transport Predominant Germany) Absent in many countries (no industry- Air transport Predominant wide agreement) Maritime transport Predominant In some cases (e.g. Spain) Inland waterway Only for owner of tug-boats (One Predominant transport employer only)

Figure 3-1 shows the quota of employees by collective pay agreement in the transport, storage and communication sector for a selected European Area59 (EA). The data refer to the Eurostat Structure of Earnings Survey (SES) 2002 and 2006. In the selected EA, the quota of employees covered by collective pay agreements decreases from 78.3% in 2002 to 68.2% in 2006. In both reference years, the enterprise or single employment agreement (ENT) represents the prevalent collective pay agreement. According to the SES definition, the ENT covers only those workers with the same employer regardless of size; the agreement may cover only certain local units or groups of employees within the enterprise. Unfortunately, the available data does not cover all EU-27 countries; moreover, the dataset refers only to the aggregated transport, storage and communication sector.

Figure 3-1 EA share of employees by collective pay agreement in the transport, storage and communication sector, percentage

50% 2002 44.7% 45% 2006

40%

35% 32.2% 31.8% 30%

25% 21.7% 20%

15% 12.7% 9.6% 9.3% 8.7% 10% 7.9% 8.1% 5.9% 3.6% 5% 2.0% 1.1% 0.6% 0.0% 0% ENT IND IND1 NAT OTH UNIT NONE UNK

Source: Elaborations on Eurostat - Labour Force Survey 2006 (April 2009). Notes: ENT: Enterprise or single employer agreement ; IND: Industry agreement; IND1: Agreement for individual industries in individual region; NAT: National level or interconfederal agreement; NONE: No collective agreement exists; OTH: Any other type of agreement; UNIT: Agreement applying only to workers in the local unit; UNK: Unknown. EA - European Area includes the following countries: BG; CY; CZ; DE; EE; ES; HU; IE; LT; LV; NL; PL; SI; SK and UK.

It should be noted that, despite the greater flexibility in contracts and employment conditions, the highest wages are found in sectors where company-level bargaining is predominant (e.g. air and railway transport); conversely, the lowest wages can be found (with the exception of maritime transport, where wages are above the average) in those

59 European Area includes the following countries: BG; CY; CZ; DE; EE; ES; HU; IE; LT; LV; NL; PL; SI; SK and UK. The selection of countries depends on data availability. 66 Social and working conditions in the transport sector of the European Union ______where collective bargaining is predominant (road and inland waterway). The figures presented later in the section show this phenomenon.

3.1.1. Earnings: comparison between the transport and manufacturing sectors

The data presented in this section refer to the Eurostat SES 2006. Figure 3-2 compares mean monthly earnings expressed in purchasing power parities (PPS) between the transport, communication and storage sector60 and the manufacturing sector for selected countries and the average figure (EA)61. According to the SES definition, monthly gross earnings in the reference month cover remuneration in cash paid before any tax deductions and social security contributions payable by wage earners and retained by the employer, and are restricted to gross earnings that are paid in each pay period during the reference month. For the selected EA, there is a slight difference in monthly earnings between the two sectors with a gap of 0.3% in favour of the manufacturing sector.

Figure 3-2 Mean monthly earnings comparison between the transport, storage and communication sector and manufacturing (values expressed in PPS) in selected countries, 2006

3500

3000

2500

2000

1500

1000

500

0 BG LT LV SK EE HU PL CZ CY SI ES EA DE NL IE UK Transport, storage and communication Manufacturing Source: Elaborations on Eurostat - Labour Force Survey 2006 (April 2009). Notes: EA - European Area refers to the following countries: BG, CY, CZ, DE, EE, ES, HU, IE, LT, LV, NL, PL, SI, SK and UK.

In the NMS with the exception of Lithuania the salaries are higher in the transport sector than in manufacturing, but substantially below the European average. In Spain and the UK, the salaries of the two sectors are substantially aligned; in Ireland transport salaries are 8.3% higher than manufacturing salaries; finally in Germany and the Netherlands salaries in the transport sector are lower than in manufacturing.

Figure 3-3 shows the gender salary gap for selected countries; among the selected countries, only Lithuania records a positive salary gap in favour of female employees (5%) for the transport sector.

60 Specific data for different transport modes are not available, hence data provided in this section will generally refer to the transport, communication and storage sector. 61 The selected EA refers to the following countries: BG, CY, CZ, DE, EE, ES, HU, IE, LT, LV, NL, PL, SI, SK and UK. 67 Policy Department B: Structural and Cohesion Policies ______

Figure 3-3 Gender salary gap on mean monthly earning (PPS) in selected countries, 2006

50%

40%

30%

20%

10%

0%

LT SI BG PL HU LV DE SK ES CZ EA UK IE EE NL CY -10% Transport, storage and communication Manufacturing

Source: Elaborations on Eurostat - Labour Force Survey 2006 (April 2009). Notes: EA - European Area refers to the following countries: BG, CY, CZ, DE, EE, ES, HU, IE, LT, LV, NL, PL, SI, SK and UK.

For the selected EA, the indicator reveals a salary gap in favour of male employees in both sectors, but at a higher intensity for manufacturing (36%) compared to transport (20%). The majority of analysed countries are characterised by the same phenomenon, with the exception of Cyprus and to a lesser extent the Netherlands and Ireland. In the latter two countries salary gaps between female and male employees are similar in the transport and manufacturing sectors. In Cyprus, the gender salary gap in the transport sector is by far the highest in Europe (42%).

Figure 3-4 refers to the monthly earnings distribution among age classes expressed in euro in a selected EA. Results indicate a significant difference between sectors in the 60 years and over age class with a positive gap for the manufacturing sector. A reverse trend is revealed, with a lower intensity, in the first three classes.

68 Social and working conditions in the transport sector of the European Union ______

Figure 3-4 Mean monthly earnings by age classes in a selected European area (euro), 2006

2500

2000

1500

1000

500

0 Less than 30 years Between 30 and 39 Between 40 and 49 Between 50 and 59 60 years and over years years years

Transport, storage and communication Manufacturing

Source: Elaborations on Eurostat - Labour Force Survey 2002 and 2006 (April 2009) Notes: The selected European area refers to the following countries: BG, CZ, DE, EE, ES, HU, IE, LT, LV, PL, SI and SK.

The contract salary gap (Figure 3-5) indicates the difference between two classes of employment contract: fixed term (except apprentice and trainee) and indefinite duration. In the transport sector, only Estonia and Latvia reveal a positive gap in favour of non- permanent employment contracts, of 10.8% and 0.9% respectively (also in the manufacturing sector for Latvia).

Figure 3-5 Contract salary gap on mean monthly earnings (PPS) in selected countries, 2006

40%

30%

20%

10%

0%

-10% EE LV SK NL HU CZ DE EA UK PL ES SI

-20% Transport, storage and communication Manufacturing

Source: Elaborations on Eurostat - Labour Force Survey 2006 (April 2009) Notes: EA - European Area refers to the following countries; CZ, DE, EE, ES, HU, LV, NL, PL, SI, SK and UK.

As a general trend, the selected countries record a contract salary gap in favour of permanent contracts, with a higher intensity for the manufacturing sector. The average gaps in the EA are 30% for the manufacturing sector and 20% for the transport sector.

69 Policy Department B: Structural and Cohesion Policies ______

Figure 3-6 analyses monthly earnings in terms of the educational level62 of employees. The positive relation between levels of education and earnings is much stronger in the manufacturing sector, with an increase of 112% between the first level (pre-primary, primary and lower secondary) and the third one (tertiary education), compared to 83% in the transport sector. The transport sector records higher earnings up to the upper secondary and post-secondary non-tertiary education level, with positive gaps compared to the manufacturing sector, at 8.7% (first educational class) and 0.6% (second educational class).

Figure 3-6 Mean monthly earnings by educational attainment in a selected European area (euro), 2006

3500

3000

2500

2000

1500

1000

500

0 Pre-primary, primary and lower Upper secondary and post- Tertiary education (average) secondary (average) secondary non-tertiary education

Transport, storage and communication Manufacturing

Source: Elaborations on Eurostat - Labour Force Survey 2006 (April 2009). Notes: EA - European Area refers to the following countries: BG, CY, CZ, DE, EE, ES, HU, IE, LT, LV, NL, PL, SI, SK and UK.

As shown by the figures presented in this section there are substantial differences in the levels of earnings between countries, however, generally at European level the following main conclusions can be drawn briefly.

- On average in Europe monthly gross earnings in the transport sector are as high as in manufacturing. However, in many NMS the transport sector provides higher salaries than manufacturing. - The gender salary gap in the transport sector is consistent (20% in favour of male employees) but still less intensive than in manufacturing (36% in favour of male employees). - There are no substantial monthly earnings differences for employees of the transport and manufacturing sectors with ages between 30 and 59. By contrast, in age class 60 years and over the manufacturing sector grants higher salaries than the transport sector. A reverse trend is revealed in the age class 30 years and under where salaries in the transport sector are higher than in manufacturing. - On average, employees in the transport sector with a permanent contract earn 25% more than employees with non-permanent contracts.

62 The first class ‘Pre-primary, primary and lower secondary’ includes a mean value for the following levels of education: pre-primary, primary education or first stage of basic education, lower secondary or second stage of basic education. The class ‘tertiary education’ includes the following levels: tertiary programmes with academic orientation, tertiary programmes with occupational orientation and second stage of tertiary education leading to an advanced research qualification. 70 Social and working conditions in the transport sector of the European Union ______

- There is a positive relation between levels of education and earnings. On average, employees in the transport sector with a low level of education (pre-primary, primary and lower secondary) earn more than employees in manufacturing. By contrast, the manufacturing sector grants higher salaries to employees with higher levels of education (tertiary education) than does the transport sector.

The following sections analyse gross wages levels and payment systems63 in each transport sector. Unfortunately, figures on net wages and salaries are not available. This lack of information seriously affects the capacity to assess the real social conditions of the workers in these sectors since gross wages and salaries cannot be considered reliable indicators of the economic wellbeing of workers.

3.1.2. Road transport

Level of wages

Figure 3-7 shows the annual average wages and salaries per person employed in the road passenger transport sector in 2006. According to the available data, the selected EA records average pro-capita wages and salaries in road passenger transport significantly lower than in the manufacturing sector, with a negative gap of 32%.

63 The wages and salaries data refers to the total remuneration, in cash or in kind, payable to all persons counted on the payroll (including home workers), in return for work done during the accounting period regardless of whether it is paid on the basis of working time, output or piecework and whether it is paid regularly or not. Wages and salaries include the values of any social contributions, income taxes, etc. payable by the employee even if they are actually withheld by the employer and paid directly to social insurance schemes, tax authorities, etc. on behalf of the employee. Wages and salaries do not include social contributions payable by the employer. Wages and salaries include: all gratuities, bonuses, ex gratia payments, ’thirteenth month payments‘, severance payments, lodging, transport, cost-of-living and family allowances, tips, commission, attendance fees, etc. received by employees, as well as taxes, social security contributions and other amounts payable by employees and withheld at source by the employer. Wages and salaries which the employer continues to pay in the event of illness, occupational accident, maternity leave or short-time working may be recorded here or under social security costs, dependent upon the unit's accounting practices. Payments for agency workers are not included in wages and salaries. Definitions of Structural Business Statistics Regulation (Commission Regulation (EC) No. 2700/98 of 17 December 1998) variables (13 32 0). 71 Policy Department B: Structural and Cohesion Policies ______

Figure 3-7 – Annual wages and salaries per person employed in road passenger transport (euro), 2006

Manufacturing EA IE LU DK BE UK IT AT FR FI SE DE CY ES SI PT GR HU CZ SK EE PL LV LT RO MT BG

0 5000 10000 15000 20000 25000 30000 35000 40000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both manufacturing and road passenger EA include all EU-27 countries excluding NL; data based on estimates for BG, CY, MT and SK.

The road freight transport sector (Figure 3-8) presents a slightly smaller gap: wages and salaries are on average 31% lower than in manufacturing. In the road freight transport sector, Luxembourg records the highest value while Bulgaria has the lowest wages and salaries per person employed.

72 Social and working conditions in the transport sector of the European Union ______

Figure 3-8 – Annual wages and salaries per number of persons employed in freight transport (euro), 2006

Manufacturing EA LU DK NL UK BE FI FR AT SE IE DE IT CY ES PT SI MT EE HU CZ SK GR LT PL LV RO BG

0 5000 10000 15000 20000 25000 30000 35000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both manufacturing and road freight EA include all EU-27 countries; data based on estimates for CY, IE and MT.

According to a Eurofound study64, the general issue of remuneration levels in the road transport sector is emerging as a problem in several countries. Among the examples reported in the study is the protest by Hungarian trade unions against a practice among employers of using daily allowances and other payments to make up between 70% and 80% of drivers’ pay, rather than the normal salary. This practice could bring social instability since these payments are not pensionable. According to the study65 the problem of low pay is a relevant issue for the Bulgarian road transport sector and for Irish drivers.

Payment system

In many countries, wages are based on collective agreements66 which often include: bonuses, compensation rules, regulations on expenses etc. Employees can receive an extra allowance for working shifts, driving at night, working with dangerous goods and

64 Impact of the working time directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007. 65 Ibidem. 66 EU road freight transport sector: Work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004. The study collected information on working conditions, health and well- being of the employed and self-employed in the 15 EU Member States. 73 Policy Department B: Structural and Cohesion Policies ______performing dirty or hazardous work. Employees can also receive compensation for expenses while travelling and for training67. Article 10 of Reg. 561/2006 prohibits any payments related to distances travelled and/or the amount of tonnes carried68. According to the Eurofound Study69, performance-related wages endanger road safety because they encourage drivers to disregard safety regulations. The existence of performance-related wages is rather difficult to prove, since many companies in road haulage have two payroll accounts: an unofficial one with payments based on kilometres travelled and/or tonnes carried and an official one where the same payments are converted into hourly wage rates. Moreover, official on-the-book wages tend to be lower than the real ones, helping the company to save on social security contributions, but ultimately meaning that drivers receive lower unemployment and pension benefits70.

3.1.3. Railway transport

Level of wages

Figure 3-9 shows the available annual wages and salaries per number of persons employed in the railway transport sector in selected European countries. In the EA, wage and salary levels in railway transport are in line with the manufacturing sector. Wages and salaries in Eastern European countries are well below the average wages and salaries.

67 EU road freight transport sector: Work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004. 68 (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport and amending Council Regulations (EEC) No 3821/85 and (EC) No 2135/98 and repealing Council Regulation (EEC) No 3820/85. Article 10(1): ’A transport undertaking shall not give drivers it employs or who are put at its disposal any payment, even in the form of a bonus or wage supplement, related to distances travelled and/or the amount of goods carried if that payment is of such a kind as to endanger road safety and/or encourages infringement of this Regulation’. 69 EU road freight transport sector: Work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004. 70 To prepare the consolidated report on the road transport sector and the sub-sector freight transport by road, the national reports of all 15 Member States were used, based on a literature review as well as on quantitative and qualitative analyses of national data and information. 74 Social and working conditions in the transport sector of the European Union ______

Figure 3-9 – Annual wages and salaries per number of persons employed in railway transport (euro), 2006

Manufacturing

EA

LU

DK

UK

AT

FI

IT ES

DE

SE

PT

SI

HU

EE

PL

0 10000 20000 30000 40000 50000 60000 70000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both Manufacturing and Railways EA includes AT, DE, DK, EE, ES, FI, HU, IT, LU, PL, PT, SE, SI and UK; data based on estimates for CY, DK, MT, PT and SI.

Payment system

In recent years, working conditions in the railway sector have changed considerably in many European countries71. According to the Eurofound study72, the main objective of transport operators is to increase overall productivity, which affects working time, working location and specific working tasks. The Study also reports a greater emphasis on the individual performance of the different employees and the fact that performance-related pay is gaining importance for all employees, depending on the specific requirements and activities.

Some data on payment systems in the railway transport sector is available on the basis of the survey carried out for the present study and presented in the following Box. Unfortunately, information on this issue is partial and does not allow for a general assessment.

71 Employment, industrial relations and working conditions in the European rail transport sector, European Foundation for the Improvement of Living and Working Conditions, 2006. 72 Ibidem. 75 Policy Department B: Structural and Cohesion Policies ______

Box 2 – Examples of payment systems The following information on payment systems in the railway transport sector refers to the survey carried out for the present study.

Portugal: payment systems are established by collective agreements. Bonuses are rarely awarded at management's discretion. Extra compensation is sometimes allowed for certain high management positions. Belgium: wages are established by fixed salary scales. Bonuses are allowed for night and weekend work, bilingualism, etc and they are based on an appreciation coefficient. Special allowances are given for dangerous work. Bulgaria: wages are determined according to collective agreements. For those employees who are not members of a trade union that is party to the collective agreement, and have not joined the collective agreement, there is the possibility of individual negotiation with the employer, the employer having the obligation to inform the trade unions about agreed conditions that are different from those in the collective agreement. Overtime is paid, for which the amounts fixed in the collective agreement are considerably larger than those in national legislation. Germany: there are bonuses to compensate for difficulties and extraordinary expenses, and work- related allowances like a Sunday-working allowance, shift allowance and night work bonus. Slovakia: there is provision for bonuses for holidays, night work, shift work, driving alone (for drivers) and extra working hours .

3.1.4. Air transport

Level of wages

The air transport sector records the highest level of wages and salaries compared to both the manufacturing sector (Figure 3-10) and the other modes of transport. In the selected EA, air transport reveals a positive gap of 44% with the manufacturing sector.

Wages and salaries in Eastern European countries are well below the average with the exception of Slovenia where the wages and salaries are in line with the European average.

76 Social and working conditions in the transport sector of the European Union ______

Figure 3-10 - Annual wages and salaries per number of persons employed in air transport (euro), 2006

Manufacturing EA LU DK AT DE FR BE FI UK SI ES PT SE GR IT CY HU PL SK EE LV LT CZ RO MT BG

0 10000 20000 30000 40000 50000 60000 70000 80000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both Manufacturing and Air EA includes EU-27 countries minus IE and NL; data based on estimates for CY, CZ, DK and MT.

Payment system

The remuneration package for workers in the air transport sector includes extra payments or variable wage components73. According to the Ecorys study, air transport workers are generally perceived as being well paid for their job. Nonetheless, the study indicates that there have been major changes in the remuneration package of air transport staff in the past ten years disaggregated by the following categories: flight and cabin crew, air traffic controllers and ground handling staff.

Flight and cabin crew

The survey carried out by Ecorys reports two main elements in the wage setting: seniority and flexible/variable component. In most traditional airlines in EU-15, seniority is still the basis for remuneration of both flight and cabin crew. Furthermore, the share of variable or flexible wage components for flight crew and cabin crew seems to have increased74. The

73 The payment system section for air transport is based on the analysis of the main results of the Ecorys study on Social developments in the EU air transport sector, December 2007. 74 According to the data published by the pilots’ trade union ECA, the share of flexible wage components for flight crew in low cost carriers is significantly higher than in full service carriers (FSCs). According to ECA, the proportion of the variable component in the total pay of flight crew at a typical low cost carrier is around 25% , whereas at the average FSC it is 3%. The analysis also shows that among low cost carriers there is considerable 77 Policy Department B: Structural and Cohesion Policies ______survey reports the introduction of flexible wage components in both traditional and low cost airlines. Remuneration is increasingly linked to productivity and the financial results of the company, and often to the number of flying hours for flight crew. Moreover, many traditional airlines have introduced new wage scales for recently hired employees.

Since 1997, social benefits have been restructured, mainly concentrated in the area of pensions and early retirement. The survey reports that many airlines across the EU carried out austerity drives relating to the additional pension schemes of flight crew and cabin crew.

Air traffic controllers

According to the majority of trade unions and employers interviewed in the Ecorys study, wages for air traffic controllers have increased keeping pace with, or exceeding, the national average pay increase. According to the Civil Air Navigation Services Organisation (CANSO), new air traffic controllers employed by privatised providers report wage increases, while the average wage increases are in line with collective agreements for the public sector concluded with state providers. As a matter of fact, privatised providers like NATS or DFS were able to offer more competitive remuneration packages, while air traffic controllers hired before privatisation usually received remuneration on the basis of public- sector agreements.

Ground handling staff

In the Ecorys survey, half of the trade unions report that remuneration has lagged behind inflation and the national average wage increases in the past ten years. On the employers’ side, more than half of the interviewees state that in their organisation the wages have increased in line with the national average wage increases; for one-third, wages in their organization have lagged behind inflation.

3.1.5. Maritime transport

Level of salary

The available data for maritime transport wages and salaries are shown in Figure 3-11. As for air transport, maritime transport reveals higher wages and salaries compared to the manufacturing sector, with a gap of 29% in the selected EA. Furthermore, as for other modes of transport, wages and salaries in Eastern European countries are well below the European average.

variety in the share of the variable component in wages (Source: Social developments in the EU air transport sector, Ecorys, December 2007). 78 Social and working conditions in the transport sector of the European Union ______

Figure 3-11 – Annual wages and salaries per number of persons employed in maritime transport (euro), 2006

Manufacturing EA BE UK LU DK FR FI DE IT ES SE GR PT SI CY MT LV LT PL AT HU RO

0 10000 20000 30000 40000 50000 60000 70000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both Manufacturing and Maritime EA includes EU-27 countries minus BG, CZ, EE, IE, NL and SK; data based on estimates for CY and MT.

In Italy the renewed National Collective Agreement, signed in 2005 by the social partners, set minimum wages for 2006 for the various professionals in this sector. The figures listed below give a picture of the situation.

. The minimum wage for officials in 2006 was around EUR 2900 per month, plus an extra allowance between 3.33 and 5.29 euros/day according to career level. . For non-official professionals on board the minimum wage ranged in the same year from EUR 1800 to EUR 1300 per month plus allowances ranging from 2.42 to 2.32 euros/day, according to their career levels. . Technicians on board were paid EUR 900 – 1300 per month with extra allowances between 0.47 and 1.64 euros/day, according to their skills.

Payment system

Data on payment systems in use in maritime transport are not easy to find in literature; however, some non-exhaustive information was collected through the survey developed for the present study.

In Denmark, there are nationwide collective agreements with locally negotiated additions in the various ports. Wages are partly collectively agreed (per hour and/or prices per tonnes)

79 Policy Department B: Structural and Cohesion Policies ______

- furthermore there is higher pay for work outside ‘regular’ working hours. In addition, the national payment system is based on collective agreements between trade unions and employees’ organisations. Some of them are sector-specific, such as in merchant shipping, others are stipulated on a regional level, such as those for fishing fleets, others are national, such as those regarding ports; extra pay and bonuses are awarded to compensate shift and night work.

In Cyprus, wages are established through local negotiations between the employers' associations and the employees' unions. Bonuses are allowed for war-zone and long service hours. The long service bonus is applied retroactively, following the successful completion of seven months' service and for each month thereafter as stipulated in the wage scales. A tanker allowance, equivalent to 5% of the total monthly wages as defined in the tanker wage scale, is also awarded.

In Romania, wages are established through collective agreements, in compliance with national legislation in force and with collective labour agreements. Bonuses and allowances are offered at company level for management personnel, for members of the board of administration and of tender committees and for social insurance.

3.1.6. Inland waterway transport

Level of wages

Figure 3-12 shows annual wages and salaries per person employed by IWT. In IWT, the European average wages and salaries are below the level of the manufacturing sector with a negative gap of 33%, which is the highest gap among the modes of transport that have been analysed.

As for other modes of transport, in West European countries labour costs are approximately three to four times higher than in Slovakia, Hungary or Poland.

According to UNECE75, at present the lack of workers in Western Europe is mitigated by an inflow of trained and skilled labour from Central and Eastern European countries. In these cases, the salary level in Western Europe, being significantly higher than in Central or Eastern Europe, provides for some compensation. However, one has to bear in mind that as the income disparities between various markets in Europe are diminishing, the wage level will be less and less attractive. The declining trend of wages and of working conditions in the sector is being counteracted through some training programmes and initiatives aiming at improving social standards (e.g. the NAIADES Programme).

75 UNECE, ECONOMIC COMMISSION FOR EUROPE INLAND TRANSPORT COMMITTEE, Working Party on Inland Water Transport, Workshops on inland navigation matters, March 2006. 80 Social and working conditions in the transport sector of the European Union ______

Figure 3-12 – Annual wages and salaries per number of persons employed in IWT (euro), 2006

Manufacturing EA DK LU AT BE DE FI FR SE IT UK NL ES PT LT HU SK PL RO SI BG

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

Source: Elaborations on Eurostat - Short-term business statistics (April 2009) Notes: Both Manufacturing and Inland water EA includes EU-27 countries minus CY, CZ, EE, GR, IE, LV and MT; data based on estimates for BG.

Payment system

Data on the payment system in IWT is not available on the basis of documents and/or studies. However, the survey carried out for the present study allowed some information for Belgium to be collected. In Belgium, payment systems are established through collective agreements. Bonuses are allowed for extra qualification certificates (e.g. radar certificate) and extra compensation is payable for Sundays, work during bank holidays, and tank cleaning.

3.1.7. Key findings – level of wages and payment systems

Concerning the level of wages, the figures presented in this chapter show that the highest wages are found in air and maritime transport, whilst the lowest wages exist in road transport and IWT.

Comparison with the manufacturing sector indicated that wages and salaries are higher in the air and maritime transport than in manufacturing, whereas road transport and IWT salaries and wages are well below salaries and wages in the manufacturing sector.

It is not always possible to confirm a direct relationship between wages and the structure of collective bargaining in the different transport sectors since, as mentioned above, the highest wages are found in sectors (e.g. air transport) where company-level bargaining, which tends to increase flexibility of work, is predominant. The level of unionised labour, conversely, displays this direct relationship, since lower wages are found in sectors with lower levels of worker representation (e.g. road transport).

81 Policy Department B: Structural and Cohesion Policies ______

The level of wages is also found to be an inverse function of job security76 as testified by the lower level of wages found in railway transport than in air transport or maritime transport.

Some conclusions can also be drawn on the impact of the structure of payment systems on the social conditions of workers. Higher wages and use of incentives and bonuses should make the sector more attractive; however, given the efficiency of the use of bonuses and allowances for the employers, they have an observable impact on workers' life balance, safety and gender equality.

This practice is not positive for workers' safety and life balance, and it does not favour equality in employment opportunities. In particular, the use of bonuses for irregular working times (i.e. weekends, evenings, overtime hours and shift work), which is common in road, railways and maritime transport, can be regarded as having a negative impact on workers' life balance, as well as on gender equality and on workers’ safety, as they are encouraged to work for longer hours or during the nights etc.

Payments based on a fixed income plus a performance-related share and an hourly based share can be found very commonly in road transport, despite the provisions of Reg. 561/2006, which does not allow any performance-related payment (Art. 10). Different types of payments include hourly wages combined with performance-related bonuses, fixed-sum payments and purely performance-related payments. Payments based on a fixed income plus an hourly based share are also found in maritime transport, where wages are partly collectively agreed (per hour and/or prices per tonne).

As a consequence of performance-related payments, time literally becomes money. Drivers are tempted to complete the route as fast as they can, placing them under permanent time pressure and encouraging flouting of mandatory driving time and rest period regulations.

However, experience suggests that the existence of performance-related wages is rather difficult to prove, since many companies in road haulage have two payroll accounts: an unofficial one with payments based on kilometres travelled and/or tonnes carried and an official one where the same payments are converted into hourly wage rates. Moreover, official on-the-book wages tend to be lower than the real ones, helping the company to save on social security contributions, but ultimately meaning that drivers receive lower unemployment and pension benefits77.

In air transport, conversely, variable wages are based on company performance and productivity. In the past ten years the share of variable wage components for flight crew and cabin crew has increased. An increasing part of the remuneration of flight and cabin crew is based on productivity and company performance. Both traditional airlines and low- cost companies (LCCs) use variable wage components. On average, the share of the variable wage in total remuneration is higher in LCCs than in the traditional airlines.

Such systems appear fairer than those based on the worker's performance. Employers and trade unions feel that the total remuneration package of flight crew has kept pace with or even increased above the rate of national average pay increases in recent years.

76 As will be explained in section 0, job security in the railway sector is generally higher than in other modes of transport. See also Figure 3-26 that shows a lower incidence of temporary contracts in land transport (including railways) than in water and air transport. 77 EU road freight transport sector: Work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004. 82 Social and working conditions in the transport sector of the European Union ______

Finally, it should be noted that the level of remuneration is always a major concern for trade unions in all the transport sectors.

3.2. Pension schemes

A description of the pension systems applied in the different transport sectors can help to provide a better understanding of the social conditions of workers. They are an indicator of social benefits and social protection in the different transport sectors, although they appear of minor importance compared to wages, representation of workers and payment systems, which directly affect the social conditions of workers.

In line with EU-wide actions to overcome the economic effects of the ageing EU population, the restructuring of social benefits in the different transport sectors has mainly been concentrated in the area of pensions and early retirement. Major problems regarding the pension system can be found in road transport, due to the large number of self-employed drivers, who, usually, do not have easy access to social benefits.

In this chapter, pension schemes used in each mode of transport are presented. Data are not available for all countries. Accordingly, some examples based on the answers to the survey performed for the present study are reported. Pension schemes are described in terms of:

- years of work after which a worker can retire; - age of retirement; - percentage of the salary.

Unfortunately, the data and information collected and hereafter presented do not allow an extensive analysis of the functioning of the different pension schemes in use in EU MS in relation to the specificities of the transport sector and transport modes.

In particular, it would be important to know what provisions Member States have put in place to assist mobile workers who encounter difficulties in reaching retirement age as a consequence of health problems connected with their profession. Furthermore, where such provisions are present, it should be ascertained whether they apply to all the sectors or to specific sectors including the transport sectors. Finally, it could be beneficial to carry out research into the incidence of early retirement requests for health reasons in the transport sector compared to other sectors.

3.2.1. Road transport

Examples of pension schemes in the road sector obtained from the survey performed for the present study are shown in the following table.

83 Policy Department B: Structural and Cohesion Policies ______

Table 3-1 - Some examples of pension schemes for road transport workers

Years of work Minimum age of Country after which a Percentage of salary retirement worker can retire When the worker is part of a family, 75% of salary becomes pension. When living alone, 60% of salary becomes pension. When Belgium 35 60 retiring after only 35 years of work, there is a reduction of 22% of pension. After 40 years of work there is a reduction of 12.5% of pension. France 29 years on average 55 75% of income

60 – 65, depending on Depends on when the Depends on the number of years he Netherlands the number of years of worker started worked; with a full pension 70% work in the sector A very small number of schemes remain Highest pension related to final salary (50-66%). Most are 60 (Women) 65 (Men) UK payable after 40 years ‘defined benefit’ schemes where the pension (to be equalised) of contributions payable depends on the performance of underlying investments.

Source: Survey performed for the present study

3.2.2. Railway transport

The table below provides some examples of pension schemes for railway transport workers in different countries. This information was obtained from the survey developed for this study. Unfortunately, further information from other sources is not available.

Table 3-2 - Some examples of pension schemes for railway transport workers

Minimum age of After how many years Country Percentage of salary retirement of work

Belgium n.a. 20 maximum 75%

Czech 65 35 50% of last salary Republic

Hungary 62 75%

It is necessary to participate Normally, an employee with 45 years The regular age to get a for a period of 5 years in the of contributions gets 67% of the net retirement pension is Germany social pension programme to income. But the amount depends on currently 65 and will be get a regular retirement the effective payment of the raised to 67 in 2029. pension insurance contributions. 35 (if 56 or 57 years old) Italy78 56-57years 80% 40 (whatever age)

Luxembourg from 57 years upwards 40 years 70% - 80%

Men: 65 It is not related to years of Poland About 80% Women: 60 work

Portugal 65 40 80%

60 years women 30 years (minimum) Romania 65 years men 35 years (minimum)

Spain 65 35 Maximum pension is EUR 3074

Source: Survey performed for the present study

78 Source: Macchinisti uniti web site, 2008. 84 Social and working conditions in the transport sector of the European Union ______

As shown in the table above, pension schemes in the railway transport sector differ widely between countries.

3.2.3. Air transport

In the last decade, a restructuring of the social benefits offered to the majority of air transport employees has taken place in Europe79. In line with EU-wide actions to overcome the economic effects of the ageing EU population, restructuring of social benefits has mainly been concentrated in the area of pensions and early retirement. The retirement age for flight crew and cabin crew has been raised. In addition, many airlines across the EU carried out austerity drives relating to the additional pension schemes of flight crew and cabin crew. The level of contributions from staff has in many cases increased while the generosity of benefits has decreased.

Unfortunately, information on pension schemes adopted by different countries is lacking. The table below provides information only in relation to Italy and Sweden that was derived from the outcomes of the survey developed for the present study.

Table 3-3 - Some examples of pension schemes for air transport workers

Years of work after Minimum age Country which a worker can Percentage of salary of retirement retire The pension scheme for flight crew considers both years of contribution and the contractual salary (mixed system) 55 years and/or 30 years' contributions: full Italy80 52-55 years 30 pension 52 years and/or 30 years' contributions: full pension minus a percentage between 10% (for 52 years old) and 2% (for 55 years old) Varies depending on pension scheme. Normally 60- Sweden 67 40 for full benefits 70 %.

Source: Survey performed for the present study

3.2.4. Maritime transport

As for other modes of transport, it is difficult to collect comparable information about maritime transport pension schemes from literature or from recent studies. However, for a number of countries the table below provides information derived from the survey developed for this study.

79 Social developments in the EU air transport sector, Ecorys, 2007. 80 UIL trasporti website, February 2007. 85 Policy Department B: Structural and Cohesion Policies ______

Table 3-4 - Some examples of pension schemes for maritime workers

Minimum Years of work after Country age of which a worker can Percentage of salary retirement retire

The ‘Special schemes for: miners, seafarers, journalists and members of a flight crew in the civil aviation sector’ state that a wage earner who can prove 168 months' employment at sea on a vessel registered in Belgium81 n.a. 168 months Belgium is entitled to receive a pension created in proportion to 1/14th a year. The amount of retirement pension is nonetheless reduced when the seafarer receives a pension under another scheme. An insured person is entitled to old age pension at the age of 63 if: - he satisfies the contribution conditions and 400 months for Public has weekly average of insurable earnings Cyprus 63 Sector employees equal to 70% of the weekly amount of the basic insurable earnings, or - he was entitled to invalidity pension immediately before reaching the age of 63. No requirement for any number of years. For early retirement: Unknown. The workers have a personal 25 years - the worker pension account to which the employer pays 67 (62 for pays a sum equal to 7 8% and the worker 4% of his total income Denmark early days' unemployment every month - the pension company is retirement) benefit per year in owned partially by trade unions and these 25 years to earn employers' organisations the right to early retirement Italy (scheme based 57 35 95% on contributions)82 Italy (scheme based 60 on age - applied to (women)-65 20 Unknown workers employed (men) after 1995)83 The minimum period is 60 for 15 years. Normal Romania women and period is 30 years for n.a. 65 for men women and 35 years for men.

Spain 65 35 100%

State pension percentage depending on Generally 65 years, economic growth in Sweden, but may be Sweden n.a. could be lower in some between 65%-75% of salary if workers sectors have worked enough years 60 (women) The full pension (flat rate pension) is only UK84 n.a. – 65 (men) paid if the contribution conditions are met.

Source: Survey performed for the present study

3.2.5. Inland Waterway transport

The following table presents the situation of pension schemes in IWT for Belgium and Germany. The information provided is extrapolated from the survey conducted for the present study. Unfortunately, information on other countries is not available.

81 LPA – Landespensionsamt website: http://www.rvponp.fgov.be. 82 Available at: http://www.inas.it/aree/335-pensione-di-anzianità-dei-lavoratori-marittimi.asp. 83 Available at: http://www.inas.it/aree/258-pensione-di-vecchiaia-per-i-lavoratori-marittimi.asp. 84 The Seafarers' Benefits Advice Line website: http://www.seabal.org.uk/. 86 Social and working conditions in the transport sector of the European Union ______

Table 3-5 - Some examples of pension schemes for inland waterway workers

Minimum age of Years of work after which a worker can Percentage of Country retirement retire salary

After 35 years early retirement is possible in the sector providing that the person concerned has Normally at 65 but 60% but based on a Belgium worked 35 years and, during the last 10 years, possible at 58 maximum (ceiling) has worked 5 years in the sector. Regular retirement after 45 years of work Germany 65 35 60 %

Source: Consultation of stakeholders for the present study

3.3. Extent of unionised labour

There are some striking differences in unionisation of labour between transport modes. While fragmentation in road transport is low, it is higher in railways and air transport. Union density is generally high, except in road transport, where employees tend not to aggregate in trade unions. Bargaining is performed at company level in air transport, while in the other transport modes collective agreements are prevalent.

In the reviewed scientific literature,85 it was argued that fragmentation of trade unions is likely to result in lower bargaining power for employees. Conversely, decentralised bargaining (at company level) can achieve appreciable results for employees in terms of contractual salary increase, where the employer has the market power of setting prices / tariffs and can thus levy on earnings to remunerate employees.

Furthermore, it was argued that because of past economic crises the trade unions have usually lost power, although there are differences between countries. Generally, economic crises have a negative effect on employment levels: during economic crises new entrant workers are typically employed in sectors with low union density; salary bargaining is affected by inflation to a lesser extent; finally, labour disputes and strike actions are in decline as is the role of trade unions.

Relations between management and workers and their unions have been affected by the rapid developments in market structures, particularly in the civil aviation and railways sectors. The emerging EU regulation of certain aspects of working conditions, which traditionally were agreed upon through national and/or sector negotiations, may necessitate the development of forms of supranational labour relations86 (see following section 0). As was previously suggested this issue should be further investigated.

In recent years, important steps towards globalisation, diversification of ownership and/or management, deregulation and privatisation have been experienced by all the transport sectors. Each of these developments has had an impact on labour relations in the various subsectors.

In civil aviation, for example, the new operating environment gives airlines' management greater opportunities for changes in working conditions. Airline management demands an increased labour performance at a lower cost, more flexibility and productivity. This has become a matter of concern among unions, which are now developing new strategies (for

85 Daniele Checchi and Jelle Visser, Pattern persistence in European trade union density, European Sociological Review 2005, 21(1): 1-22 86 Otherwise stated, the finding of the current section refers to Bert Essenberg (Sectoral Activities Department, ILO), 1999, Labour relations in a changing industry, Symposium on the Social and Labour Consequences of Technological Developments, Deregulation and Privatization of Transport, discussion paper No 1. 87 Policy Department B: Structural and Cohesion Policies ______example the organisation of regular meetings between all unions active in companies participating in the same airline alliance) to face these challenges.

In the railways sector, major changes began in the early 1990s, driven by restructuring, privatisation, commercialisation, deregulation and open access. Private companies have seen opportunities to access the railways market. Furthermore, the EU railways policy has sought to encourage the entry into the railways market of new operators or new groupings of companies. The deregulation of road freight transport has had implications for employment, wages, working conditions and, possibly, for safety. These have been major concerns for trade unions, employers, several governments and supranational organisations.

In this new operating context, the trade unions are currently acting over wages and job cuts in the industry due to privatisation processes.

The difficulties of the trade unions are common knowledge, although the issues vary greatly from one country to another. Among the causes are the dispersal of the workforce resulting from labour market flexibility, and the growing gap between workers with stable jobs and the growing number of other, often less skilled, workers with unreliable employment opportunities. In this context, social dialogue is a powerful tool that has helped to solve difficult problems and it can foster social cohesion.

The extent of unionised labour is analysed below with regard to each transport mode. Three dimensions are taken into consideration:

- fragmentation: the number of trade unions (high/low number of trade unions); - trade union density: the number of workers affiliated with trade unions out of the total number of workers in a sector;

- industrial relations/collective bargaining, which refers to the way contracts are negotiated and the way other aspects of work (overtime, special leave and holidays) are settled.

The main trade unions and employers’ organisations operating in road, railways and air transport (no official data are available for maritime and IWT) are listed in Annex II.

3.3.1. Road transport

Fragmentation and trade union density

Fragmentation in the road sector is not very high since generally there is a low number of both employers' organisations and trade unions. The coverage of employers and employees gives an indication of their strength, i.e. the number of people they can organise from a certain position in the sector. This information, however, does not necessarily demonstrate the coverage of collective agreements. There may be a very low union density, yet 90% of the employees in the sector are covered by collective agreements. Perhaps the best indicator of the percentage of employees covered by collective agreements is the coverage of employers87.

87 European Foundation for the Improvement of Living and Working Conditions, 2004, EU road freight transport sector: Work and employment conditions 88 Social and working conditions in the transport sector of the European Union ______

According to the results of a Eurofound Study88, the coverage of employer organisations appears to be quite large in some European countries. By contrast, union density is generally quite low. An overview of the main social partners involved in bargaining in the road transport sector in some EU countries is given below89.

In Austria, active trade unions in road transport are the white-collar Union of Salaried Employees, Graphical Workers and Journalists (Gewerkschaft der Privatangestellten, Druck, Journalismus, Papier, GPA-DJP); the blue-collar Transport and Services Trade Union (vida), the successor union of the former sector-related Commerce, Transport and Traffic Workers’ Union (Gewerkschaft Handel, Transport, Verkehr, HTV), and two other blue-collar trade unions which merged in December 2006. The Union of Local Authority Employees (Gewerkschaft der Gemeindebediensteten, GdG) represents employees working in scheduled passenger transport for local or regional bus operators owned by cities and municipalities. On the employers' side, the Federal Organisation of Road Transport of Goods (Fachverband für das Güterbeförderungsgewerbe, FGG), the Federal Organisation of Haulage Contractors (Fachverband der Spediteure, FSp) and the Federal Organisation of Bus and Coach Operators (Fachverband der Autobusunternehmungen, FAU) exist. A range of agreements cover the various subsectors within the road transport sector; separate agreements exist in the country for blue-collar and white-collar workers.

In Belgium, among trade unions the Eurofound study reported the Belgian Transport Union (Belgische Transportbond, BTB), affiliated to the socialist Belgian General Federation of Labour (Algemeen Belgisch Vakverbond/Fédération Générale du Travail de Belgique, ABVV/FGTB) and ACV-Transcom, affiliated to the General Christian Trade Union (Confédération des Syndicats Chrétiens/ Algemeen Christelijk Vakverbond, CSC/ACV). On the employers' side the following organisations can be found. The Trade Association of Road Haulage Operators in the Flemish Community and Brussels-Capital Region (Association professionnelle royale des transporteurs de marchandises de la Communauté flamande et de la Région de Bruxelles-Capitale/Koninklijke beroepsvereniging goederenvervoerders vlaams gewest en Brusselse hoofdstedelijk gewest, SAV) mainly represents smaller companies in the sector and is strongly represented among Flemish employees. The Professional Road Transport Federation (Union professionnelle du transport par route, UPTR) mainly represents smaller companies. The Royal Belgian Federation of Transport and Logistic Service Providers (Fédération Royale Belge des Transporteurs et des Prestataires de Services Logistiques/Koninklijke federatie van belgische transporteurs, FEBETRA) represents large companies.

In Bulgaria on the trade union side the study includes the Confederation of Transport Trade Unions in Bulgaria and the Trade Union of Autotransport Workers in Bulgaria, both of which are affiliated to the Confederation of Independent Trade Unions in Bulgaria (Конфедерация на независимите синдикати в България, CITUB) and the Federation of Workers in Transport. Among employers' organisations the Bulgarian Chamber of National Transport, affiliated to the Bulgarian Industrial Association (BIA), and the Corporation of Auto Transport of Bulgaria are recorded.

With regard to trade unions in Germany the United Services Union (Vereinte Dienstleistungsgewerkschaft, ver.di); with around 2.3 million members, is affiliated to the Confederation of German Trade Unions (Deutscher Gewerkschaftsbund, DGB). Another DGB-affiliate organising employees in the sector is the Transport, Service and Networks Union (Transnet Gewerkschaft GdED), which has 250 000 members with its main roots in

88 Ibidem 89 The findings of the current section refer to European Foundation for the Improvement of Living and Working Conditions, 2007, Impact of the working time directive on collective bargaining in the road transport sector 89 Policy Department B: Structural and Cohesion Policies ______railway transport. Transnet cooperates closely with Verkehrsgewerkschaft GDBA, affiliated to the German Federation of Career Public Servants (Deutscher Beamtenbund, DBB). The Trade Union of Public and Private Services (Gewerkschaft Öffentlicher Dienst und Dienstleistungen, GÖD) is affiliated to the Christian Confederation of Trade Unions (Christlicher Gewerkschaftsbund, CGB). Employers are represented by the Federation of Freight Transport by Road and Logistics (Bundesverband Güterkraftverkehr Logistik und Entsorgung, BGL), in addition to the Federation of German Bus Entrepreneurs (Bundesverband Deutscher Omnibusunternehmer, BDO), which represents regional private bus and coach associations. The Municipal Employers’ Association (Vereinigung Kommunaler Arbeitgeberverbände, VKA) represents public transport companies. A few companies are also organised in the Employers’ Association of Mobility and Transport Service Providers (Arbeitgeberverband der Mobilitäts- und Verkehrsdienstleister, Agv Move), covering German Railways (Deutsche Bahn) companies, which also owns road transport companies.

French trade unions active in the road transport sector include: the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT), the French Confederation of Professional and Managerial Staff – General Confederation of Professional and Managerial Staff (Confédération française de l’encadrement – Confédération générale des cadres, CFE-CGC), the French Christian Workers’ Confederation (Confédération française des travailleurs chrétiens, CFTC), General Confederation of Labour (Confédération générale du travail, CGT), General Confederation of Labour – Force ouvrière (Confédération générale du travail – Force ouvrière, CGT-FO) and the autonomous union the National Federation of Road Transport Drivers (Fédération nationale des chauffeurs routiers, FNCR). The main employers' body is the Union of Transport Federations (Union des fédérations du transport, UFT); then the National Road Haulage Federation (Fédération nationale des transports routiers, FNTR) is also active in France. The National Federation of Automobile Road Haulage Operators’ Unions (Union nationale des organisations syndicales des transporteurs routiers automobiles, UNOSTRA) organises SMEs and is a member of the General Confederation of Small and Medium-sized Enterprises (Confédération générale des petites et moyennes entreprises, CGPME). The Federation of French Transport and Logistics Companies (Fédération des entreprises de transport et logistique de France, TLF) has 10 000 members and is a member of the national employers' body, the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF).

In Italy, fragmentation of representation appears quite high. Among trade unions, the study reports the following: the Italian Transport Workers’ Federation – General Confederation of Italian Workers (Federazione Italiana Lavoratori dei Trasporti – Confederazione Generale Italiana dei Trasporti, Filt-Cgil), the Italian Federation of Transport – Italian Confederation of Trade Unions (Federazione Italiana Trasporti – Confederazione Italiana Sindacati Lavoratori, Fit-Cisl) and the Italian Transport Workers’ Union (Unione Italiana dei Lavoratori dei Trasporti, Uilt), affiliated to the Union of Italian Workers (Unione Italiana del Lavoro, Uil). In addition, the following unions operate in the sector: the National Railways Workers Federation (Federazione Nazionale delle Attività Ferroviarie - Unione Generale del Lavoro Trasporti, Ugl AF), the autonomous unions joined together under the second-level organisation OrSA (Trasporti dell’Organizzazione Sindacati Autonomi e di Base) and the Independent Trade Union Federation of Goods Transport and Logistics (Trasporto merci e logistica della Federazione Autonoma Sindacati dei Trasporti, FAST). However, these unions have only low levels of representativeness and do not sign the sector’s industry-wide agreement (contratto nazionale di categoria).

90 Social and working conditions in the transport sector of the European Union ______

On the employers' side there is even greater diversity. The General Transport and Logistics Confederation (Confederazione Generale dei Trasporti e della Logistica, Confetra) is structured into national sector federations, including those representing the transport sector, namely: Italian Removal Association (Associazione Imprese Traslocatori Italiani, AITI); Associazione Nazionale Corrieri Espressi (Assoespressi); Associazione Italiana delle Imprese di Logistica, Magazzini Generali e Magazzini Frigoriferi (Assologistica); Federazione Nazionale Imprese di Spedizioni Internazionali (Fedespedi); Federazione Italiana Trasportatori (Fedit); Federazione Italiana Spedizionieri Industriali (FISI). The Transport, Haulage and Logistics Confederation (Confederazione del Trasporto, della Spedizione e della Logistica, Conftrasporto), which belongs to the Italian General Confederation of Commerce, Tourism and Services Employers (Confederazione Generale Italiana del Commercio, del Turismo, dei Servizi, delle Professioni e delle Piccole e Medie Imprese, Confcommercio). Then, the Auto-transport Firms National Association (Associazione Nazionale Imprese Trasporti Automobilistici, ANITA), the Associazione Nazionale delle Cooperative di Servizi e Turismo of the Lega delle Cooperative (Ancst-Legacoop) are also active in the sector together with the following: Federlavoro e Servizi of the Confederazione Cooperative Italiane (Confcooperative), Associazione Nazionale Autotrasporto di Confartigianato (Confartigianato Trasporti), Federazione Italiana Autotrasportatori Professionali (Fiap- Italia), Unione Nazionale Imprese di Trasporto (Fita CNA), Produzione e Lavoro section of the Associazione Generale Cooperative Italiane (AGCI), Sindacato Nazionale degli Autotrasportatori di Casartigiani (SNA-Casartigiani).

Industrial relations/collective bargaining

As mentioned above, there is a low density of employees in trade unions in the road transport sector. However, according to the findings of the above study90, it seems that the agreements between employers’ and employees' representatives determine important aspects such as wages, job classifications, leisure time, overtime, special leave, holidays and issues of security and flexibility. Further, it was reported that in many countries, collective agreements are at least as important as regulatory measures or sometimes even more important (e.g. Denmark). A brief description of bargaining mechanisms in use in the 27 MS91 is set out below. For the sake of clarity, countries were grouped under four different categories: - countries where bargaining takes place at company or multi-company level, - countries where bargaining takes place only at national level, - countries where bargaining takes place at a number of levels, - countries where there is no evidence of collective bargaining taking place.

In a few countries, bargaining at company level is the predominant form in the road transport sector. This is the case of countries such as Ireland, the UK, Denmark, Latvia, Lithuania and Cyprus, where bargaining takes place at company level. Specifically, in Denmark, most of the agreements are multi-employer sector agreements. There might be a few adoption agreements (tiltrædelsesoverenskomster) with single companies, but they are not numerous.

90 European Foundation for the Improvement of Living and Working Conditions, 2004, EU road freight transport sector: 91 The information provided isextracted from the Report ’Impact of the working time directive on collective bargaining in the road transport sector‘- European Foundation for the Improvement of Living and Working Conditions (2007) and Contributing Country articles. 91 Policy Department B: Structural and Cohesion Policies ______

In a few countries bargaining takes place only at national level:

- In Estonia a sector collective agreement is signed between the Union of Estonian Automobile Enterprises and the ETTA. It is one of the two collective agreements extended at sector level. The agreement covers all employers and employees engaged in domestic carriage of passengers and goods and international carriage of passengers. - In Finland there are three national collective agreements concerning the road transport sector: the collective agreement of truck drivers, the collective agreement of bus drivers and the collective agreement of oil and tanker drivers. - In France the road transport sector is covered by a national collective agreement on Road Transport and Auxiliary Transport Activities. A specific agreement ‘concerning night work in freight transport by road, auxiliary transport activities and removals’ was signed in November 2001 by all the unions in the sector. - In Greece the social partners in the sector sign five annual collective labour agreements for five different branches, which regulate terms of pay and working hours. They are national occupation-level agreements. - The private road transport sector in Luxembourg has two components: the buses (passenger transport) sector and the goods transport sector. Each sub-sector has its own collective agreement. - In Portugal there are a number of similar national sector collective agreements that cover different branches of road transport. - In Slovenia there is a sector collective agreement for road passenger transport, while the collective agreement for road cargo transport was cancelled in 2003 and since then there has been no new agreement.

In a large number of countries, bargaining takes place at different levels.

- In Austria generally, collective agreements are concluded separately for white-collar and blue-collar workers. Apart from a few collective agreements concluded for several distinct public utilities running their own passenger transport services, separate agreements are also concluded for the subsectors of road transport of goods and of haulage contractors. Collective bargaining coverage is 100%. - In Belgium separate joint committees exist for blue-collar and white-collar workers. Urban and local public bus drivers are covered by a separate local public transport joint committee. Two-year agreements are concluded as part of the overall Belgian social programming, which starts every two years with a ‘guiding’ inter-sector agreement. Collective agreements are negotiated for the whole (sub) sector and are legally extended, so the coverage is 100%. Sometimes these sector collective agreements are supplemented with company agreements (in the large companies). - In Bulgaria collective agreements are concluded at sector level (entire transport sector including separate section for road transport) and at enterprise level with trade union organisations (almost in 97% of them). In the sector collective agreement the principles and general framework of the collective agreement at enterprise level are defined. - In the Czech Republic sector collective bargaining takes place at enterprise level and at sector level. - In Germany, bargaining takes place at regional and company level in the road transport sector, resulting in over 1000 agreements covering different sections of freight and passenger transport. - In Hungary, two sector agreements are in place, as well as seven multi-employer agreements and 39 single-employer agreements. - In Italy, as a standard practice in the country, a national sector-level collective agreement is in place for the road transport sector, and this sets a framework for collective bargaining at company level.

92 Social and working conditions in the transport sector of the European Union ______

- In Latvia collective agreements are concluded in enterprises where trade unions are established. On 13 June 2006 the social partners signed a sector tripartite agreement on a socio-economic partnership. Company-level agreements are renewed each year. Collective agreements cover subjects such as pay, working time, working hours, holidays, social benefits, and controls and checks on drivers, as far as these comply with existing legislation. - In the Netherlands bargaining takes place at both sector and company level; company-level agreements sometimes improve on sector-level provisions, notably in areas such as pay, or exist where companies are not members of an employers' organisation. - In Poland, a sector agreement is in place in road transport, in addition to a range of single-employer agreements. - In Romania, a sector agreement is in place, within the framework of which multi- company agreements are negotiated. - In Slovakia, both sector- and enterprise-level agreements exist. - In Spain, regional sector agreements are in place and company agreements are concluded within the framework of these agreements.

Finally, Malta proves to be an exception in this instance, with no evidence of collective bargaining taking place in the road transport sector, as the majority of operators are self- employed and own their own vehicle.

As shown in this section, road transport bargaining can take place at different levels (national vs. company level) or be multi-level depending on the country. However, in the large majority of countries bargaining is multi-level.

3.3.2. Railway transport

Fragmentation and trade union density

In the railways sector, trade union representation is characterised by the presence of numerous organisations, often by reference to specific professional groups, such as engine drivers and stationmasters. For instance, in Poland there are 28 union organisations in the railways sector, including some company unions; in Italy there are 12 unions, in Slovakia 10 unions and in France and Slovenia 9 unions92.

In some countries, the setting-up of new trade unions resulted from restructuring processes and conflicts that have arisen from them, often focused on the protection and promotion of the interests of specific groups. For example, in Italy this occurred in the mid- 1980s with the establishment of the Independent Engine Drivers’ Union (Comitato Macchinisti Unitari, Comu); and in Ireland in the mid-1990s at Irish Rail, where the Irish Locomotive Drivers’ Association (ILDA) was established on account of dissatisfaction with the 1994 Irish Rail productivity deal. However, Irish Rail does not formally recognise ILDA. In Spain, the transformation of RENFE was accompanied by the emergence of small organisations with particular or radical demands that contributed to an increasing level of conflict. In the Czech Republic, the Federation of Train Crews (Federace Vlakových Cet, FVC) was founded in 1991 to represent train conductors, chief guards and other professional workers.

In contrast with the typical fragmentation of trade union representation, in Austria there used to be a single union for all railways workers, the Union of Railways Workers

92 The findings of the current section refer to European Foundation for the Improvement of Living and Working Conditions, 2005, EIRO thematic feature Industrial relations in the railway sector. 93 Policy Department B: Structural and Cohesion Policies ______

(Gewerkschaft der Eisenbahner, GdE) that has recently merged into VIDA. In other countries, reduction of fragmentation resulted from the merging of trade unions into sector federations. In Greece, for example, some 20 unions form the Pan-Hellenic Federation of Railways Workers (POS). In Latvia, 108 trade unions came together to establish the Latvian Railways Workers Trade Union (Latvijas Dzelzcelnieku Arodbiedriba, LDzA). In Lithuania, the largest of the three trade unions active in the railways sector, the Lithuanian Federation of Railways Workers (Lietuvos Gelezinkelininku Profsajungu Federacija, LGPF), groups together 23 trade union organisations. In Romania, the 483 unions that existed before the reorganisation of SNCFR in 1998 merged into the present five organisations.

The presence of both private and public sector employees in the same sector and, in certain circumstances, in the same company, is a source of fragmentation. However, there are examples of cooperation between unions aiming to reduce the complexity of negotiations and prevent a weakening of the trade union side. In Germany, at DB AG the unions Transnet Gewerkschaft GdED (Transnet) and Verkehrsgewerkschaft GDBA (GDBA) have formed a joint bargaining association, while the German Engine Drivers’ Union (Gewerkschaft Deutscher Lokführer, GDL) has sometimes insisted on holding parallel but separate negotiations.

In all countries analysed in the Eurofound study, union density is very high. For example in Ireland, union density reaches nearly 100%. In countries such as Austria, Belgium, Finland, Greece, Poland, Portugal and Slovenia, density is around 90%, and is generally well above the national average.

According to the study, industrial relations continue to be centred on the incumbent railways companies; as a matter of fact, the presence of employers' organisations in the railway sector is not common and collective bargaining is therefore mainly carried out at company level. In some cases, railways companies are direct members of employers' confederations (Estonia, Latvia, the Netherlands, Norway, Romania and Slovenia), while in a limited number of cases, the creation of sector organisations is linked to specific objectives (Poland and Italy).

However, multi-employer representation is present in a number of countries. For example in Austria, following the railways reform the Federal Organisation of Railway transport (Fachverband der Schienenbahnen) gained collective bargaining representation. The shift of responsibility was sanctioned by the 2004 collective agreement.

In some cases, there is a fragmentation of associational representation on the employers’ side as in Denmark, where the State Employer Authority (Personalestyrelsen) bargains for civil servants at railways company DSB, the Danish Regions (Amtsrådsforeningen, ARF) represents regional railways and other companies are members of the Employers’ Association of Railways in Denmark (Jernbanernes Arbejdsgiverforening, JA); in Germany, non-state railways are members of the employers' organisation of German railways companies (Arbeitgeberverband Deutscher Eisenbahnen, AGVDE) or bargain independently, whereas DB AG is represented by Agv MoVe.

In summary, the findings suggest that:

- the sector is characterised by the presence of numerous trade union organisations; - in some countries, the restructuring processes have resulted in the setting-up of new trade unions;

94 Social and working conditions in the transport sector of the European Union ______

- Austria is the exception to the typical fragmentation of trade unions; in other countries as well, a number of trade union organisations have joined sector federations, thereby reducing extreme fragmentation; - the presence of both private and public employers in the railways is a source of fragmented representation; - in all countries, union density is very high; - employers' organisations in the railway sector are not common, and collective bargaining is mainly carried out at company level. However, multi-employer representation is present in a number of countries.

Industrial relations/collective bargaining

The European Foundation for the Improvement of Living and Working Conditions has recently published a study on the representativeness of the European social partner organisations in the railways sector93. The findings relevant for this section are reported briefly below.

The fragmentation of trade unions and in some cases the overlapping of domains have resulted in rivalries over bargaining rights in several countries, namely Belgium, the Czech Republic, Estonia, Ireland, Italy, Lithuania, Portugal and Romania. In some cases, these rivalries have led trade unions to compete over bargaining goals or to be formally excluded from collective bargaining.

According to the above study the railway sector is characterised by extremely high collective bargaining coverage94: the large majority of EU countries for which data are available record a coverage rate of 90% or more. The rate of collective bargaining coverage in the railway sector is generally higher than in other economic sectors95: as a result of a comparison with figures on cross-sector collective bargaining coverage in EU-2596 MS, the railways sector’s bargaining coverage is higher in the majority of countries for which comparable data are available.

Multi-employer bargaining is usually predominant in those countries where employer organisations conduct collective bargaining. However, Spain, Denmark and Slovenia are exceptions. In Spain and Denmark, the employer organisations do not represent the main operator, thus covering only a minor proportion of the sector’s employees. In Slovenia, multi-employer bargaining can be considered predominant in little more than a third of the countries for which data are reported. Single employer bargaining occurs and involves only one company in several countries, such as Belgium, Bulgaria, Ireland, Lithuania and Slovenia. Nevertheless, the bargaining coverage rate is above 90% in all of these cases.

In some countries, there are extension schemes designed to extend the scope of a collective agreement to the employers not affiliated to the signatory employer organisation. However, extension schemes can only be applied to multi-employer agreements, the widespread practice of single-employer bargaining limits their use even in cases where labour law provides for such schemes. Extension practices are common in Finland, Latvia, the Netherlands and Romania.

93 European Foundation for the Improvement of Living and Working Conditions , 2008, Representativeness of the European social partner organisations: Railways sector 94 The sector’s rate of collective bargaining coverage is defined as the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector 95 see Marginson, P. and Traxler, F., ‘After enlargement: Preconditions and prospects for bargaining coordination’, in Transfer, Vol. 11, 2005, pp. 423–438 96 Member States which joined EU prior to the entry of Bulgaria and Romania on 1 January 2007. 95 Policy Department B: Structural and Cohesion Policies ______

In conclusion, it was found that the railway sector is highly unionised if compared to the other economic sectors. This applies also to the new European MS that joined EU in 2004 and 2007, where trade unions are rather weak in many other sectors of the economy but not in the railways sector. As a result of the high economic concentration of the sector, in the majority of countries the railways companies have not joined together in employer organisations, with the consequence that single-employer bargaining is more common than multiemployer bargaining. The combination of strong trade unions and economic concentration has resulted in a relatively high rate of collective bargaining coverage, regardless of whether single-employer bargaining or multiemployer bargaining prevails in a country.

3.3.3. Air transport

Fragmentation and trade union density

As in the railway sector, most countries have a range of different trade unions representing staff in the airline industry, due to the diversity of functions in this sector. Different unions often organise cabin crew, pilots, ground staff, administrative staff and manual staff. Country-specific information extracted from a study by the European Foundation for the Improvement of Living and Working Conditions97 is set out below.

97 European Foundation for the Improvement of Living and Working Conditions, Industrial relations in the airline sector, 2005. 96 Social and working conditions in the transport sector of the European Union ______

Table 3-6 – Number of employers' organisations and trade unions at country level in the air transport sector No of No of general No .of specific No of other Country employers' trade unions trade unions for sector specific organisations pilots trade unions Austria 1 2 - -

Belgium 2 3 1 -

Denmark 1 5 2 4 No employers' Finland - 1 3 organisation France 5 + 1 6 3 6 No employers' Germany 1 1 2 organisation No employers' Greece - 26 organisation No employers' Hungary 1 1 4 organisation No employers' Ireland 2 - - organisation Italy 2 > 5 3 3

Luxembourg Unknown 1 1

Malta Unknown 1 1 2 No employers' The Netherlands 3 1 3 organisation No employers' Poland 3 2 2 organisation Slovakia 1 1 - 3

Slovenia 2 1 1 2

Spain 2 2 1 2

Sweden 1 4 2 - No employers' UK 2 1 2 organisation Source: Extrapolation from European Foundation for the Improvement of Living and Working Conditions, Industrial relations in the airline sector, 2005 and other country-specific sources

In some countries, general trade unions, such as white-collar unions, represent airline industry workers as well as workers in other industries. For instance in Germany, the United Services Union (Ver.di) is a general union for the services sector, but it represents ground staff and is also aiming at organising cabin crew and pilots.

In most countries there is a separate and often independent trade union for pilots. For instance in Germany, pilots’ interests are represented by the trade Union 'Vereinigung Cockpit'. With regard to SAS Airlines, dedicated pilots' unions exist for pilots in Denmark, Norway and Sweden, although they bargain together with SAS management for a single agreement covering all SAS pilots. Other specialist and technical workers have independent unions in a number of countries.

Some countries do not have a dedicated sector employers' organisation for the airline industry. This is the case in the UK, the Netherlands, Poland, Ireland, Finland, Hungary, Germany and Greece. In such cases, airlines may belong to general or wider transport employers' organisations. In Finland, the absence of an employers' organisation is due to

97 Policy Department B: Structural and Cohesion Policies ______the dominance of the national carrier Finnair, which belongs directly to the Confederation of Finnish Industries. In Ireland, Aer Lingus and Ryanair conduct their own negotiations (with trade unions in the case of Aer Lingus) and representation, while in Germany, Lufthansa bargains directly with the trade unions.

Where there are employers' organisations, they tend to be more centralised than the trade unions, often with one main organisation. To give some examples, in Sweden the employers' organisation for the sector negotiates around 10 national sector agreements with trade unions. In France, the main employers' organisation for this sector has a membership of more than 200 firms. In Denmark, the Confederation of Danish Industries (Dansk Industri, DI) represents the country’s two largest airlines - SAS and Maersk Air. It also represents international airlines with a small base in Denmark, such as British Airways, Lufthansa Cargo and Thai Air. In Spain there are two main employers' organisations for the airline sector, following a split in the previous single main organisation. There are also two main employers' organisations operating in this sector in Slovenia, Italy and Belgium.

According to the results of the above mentioned Eurofound Study98, trade union density is generally relatively high in the airline sector as a whole and particularly so in the case of pilots, where density rates can approach 100%. Similarly, rates of over 90% are not uncommon in the case of cabin crew. This is not surprising because in many countries, the airline sector has a history of high levels of unionisation, reflecting the previous public status of the national carriers. One exception appears to be Slovakia, where the average union density in the airline sector is estimated to be around 36%, as many airlines are non- unionised.

With regard to the low-cost airlines, trade unions have tried to recruit new members and to gain recognition for bargaining purposes. However, they have faced (and are currently facing) hostility, for example from the Irish-based carrier Ryanair, which attempts not to recognise trade unions. Considerations on the impact of low-cost airlines on industrial relations in the aviation sector are presented in the following section (see Box 3).

Industrial relations/collective bargaining

There are different collective bargaining structures in the airline industry in European countries, due to the different types of employees working in this sector. Overall, there is an absence of sector negotiations in many countries, most likely because, in many cases, the national airline dominates the sector and due to the frequent absence of a sector employers' organisation.

In the majority of countries bargaining takes place predominantly at company level, reflecting the fact that national carriers dominate the industry, or used to until recently, in most countries. This is the case, for instance, in the following countries.

- Austria: there are only company-specific agreements, in contrast to the practice of concluding multi-employer accords in other sectors. - Denmark: all negotiations take place at company level. Although there is a sector agreement, the overall industry sector agreement, which covers ground staff members of trade unions operating in this sector if they are employed by SAS, Maersk Air and Cimber Air (which are all members of the DI), issues such as pay and working

98 European Foundation for the Improvement of Living and Working Conditions, Industrial relations in the airline sector, 2005. 98 Social and working conditions in the transport sector of the European Union ______

conditions are determined by direct negotiations between unions and airline managements. - Germany: Lufthansa bargains directly with ver.di and the VC pilots’ union. The result is a range of general framework collective agreements for Lufthansa ground staff, flight staff and apprentices. - France: cabin crew employees of Air France are covered by company-level agreements governing working time, working conditions for flights and other activities, rest periods and tours. - Italy: there is no industry-wide agreement; the national-level contract has always been the one applying to Alitalia employees, which is technically a company-level agreement. - Netherlands: KLM employees are covered by three separate company-level agreements, covering ground staff, cabin crew and pilots - though these agreements are concluded by the same bargaining parties simultaneously. - Poland: LOT employees are covered by a single company-level collective agreement. - Spain: employees of Iberia are covered by three different company-level agreements - for pilots, cabin crew and ground staff.

In addition, there are other countries where bargaining takes place at company level. These include: Greece, Hungary, Ireland (within the framework of national-level social partnership agreements) and the UK, where bargaining is conducted by five national sectional panels, representing pilots, cabin crew, ground and support services, clerical grades and management. In Slovenia, an agreement covers the largest airline, Adria, while the collective agreement for the commercial sector applies to employees of other airlines operating in Slovenia, which are foreign-owned. However, the most important level of bargaining in Slovenia is deemed the company level.

The emergence of LCCs has deeply changed the nature of industrial relations. Ryanair can be considered a good example of how industrial relations and the trade unions' role in the aviation sector have changed following the entry into the market of the low-cost carriers.

99 Policy Department B: Structural and Cohesion Policies ______

Box 3 – The impact of low-cost airlines – the Ryanair case study In recent years Ryanair has had a number of disputes with trade unions in various countries across Europe over its ‘non-union policy’99. The company has resisted many trade union efforts to gain recognition, and this has been the subject of much campaigning by the International Transport Workers’ Federation (ITF)100. In Ireland, Ryanair had significant impact on industrial relations. In 2004 the IMPACT trade union took a case to the Labour Court for recognition and representation rights for pilots. However, following the judgment of the Labour Court, in February 2007 the Supreme Court ruled that the Labour Court had failed to follow fair procedure in determining that it had jurisdiction to decide on a range of industrial relations issues referred to it by the trade union101. A re-hearing of the case was ordered, and this was initially set for January 2008. In any re-hearing, the company is expected to argue forcefully that a collective bargaining unit was in operation up to the time it was dismantled by the trade union102. In 2007 a four-year agreement was set. According to Ryanair the newly reached four-year agreement would ‘significantly improve’ pay, rosters, and terms and conditions of employment for the 59 Dublin-based pilots directly involved. The deal was reached following local discussions between Ryanair management and the pilots involved. The pilots formally put forward a set of proposals to the airline, which then accepted the terms of these proposals. The pilots then engaged a solicitor to verify whether a majority of the pilots accepted the provisions of the agreement and the company subsequently accepted the terms in a majority vote. All of the events were documented by the company. The IMPACT, which represents an unspecified number of Dublin pilots, claimed that the proposals were not prompted by representations from the pilots, as suggested by the company. Moreover, the trade union underlined that the agreement would have no impact on other claims being taken by certain pilots against Ryanair103.

Another case in Belgium may be significant in this regard. The dismissal of three Belgian employees by Ryanair after a year’s probation was contested as, under Belgian law, a probation period can last nine months at the most104. The case was taken to court, with Ryanair arguing that the workers were covered by Irish legislation as they had been hired in Ireland and were employed on Irish contracts of employment. However, the Belgian court in Charleroi stated that even if Ryanair workers are employed on Irish contracts, in this case Belgian laws take precedence, because it considered Charleroi airport to be the place of employment. This case has had a considerable impact on the aviation sector, as it is the first instance of the place of employment being used as the principal criterion for determining which law is applicable to an airline’s workers105. The decision is based on Belgian law, although the cabin crew members had to sign an Irish contract and their wages were deposited in a Dublin bank. The Court ruled that the basic principles of the labour law of the employees’ permanent work base should apply. This decision was based on the fact that the employees started and finished their daily duties at Charleroi Airport (Belgium) and had stronger social ties to Belgium than to Ireland. In France, air transport unions have demanded that both Ryanair and EasyJet accept that their employees in France are covered by French labour law, and are lobbying the government to intervene106. In November 2007, the Labour Court of Velletri, which is the responsible court for Ciampino airport, ruled that Ryanair must recognise the Italian Trade Union Organisation ‘FIT CISL Comparto Volo’ in order to negotiate important legal terms and conditions applicable to Ryanair employees107. On 12 March 2008, the expected confrontation between the leaders of the Fit Cisl union and Ryanair took place108, but the meeting ended with no agreement. With regard to the other low-cost companies, in August 2007 the German carrier Air Berlin reached its first ever collective labour agreement with unions representing the airline’s pilots and cabin crew. Air Berlin, which has historically opposed union recognition, has been forced to address the issue as a result of the airline’s expansion. It has not only developed organically but increased its operations through the acquisition of German carriers DBA and LTU, both of which have longstanding union recognition109.

99 European Foundation for the Improvement of Living and Working Conditions, Unions criticise Ryanair’s industrial relations practices, November 2003 100 European Foundation for the Improvement of Living and Working Conditions, Industrial relations in the airline sector, 2004 101 European Foundation for the Improvement of Living and Working Conditions, Supreme Court ruling will affect ‘right to bargain’ law, 2007 102 European Foundation for the Improvement of Living and Working Conditions, Pay agreement at airline subject to company’s non-unionised status, 2007 103 Ibidem. 104 European Foundation for the Improvement of Living and Working Conditions, Ryanair under fire at Charleroi, 2003 105 European Foundation for the Improvement of Living and Working Conditions, Industrial relations in the airline sector, 2004. 106 Ibidem. 107 ITF, Court in Italy cleared way for union work in Ryanair! 28 November 2007. Available at: http://www.itfglobal.org/campaigns 108 ITF, Ryanair continues to be confronted by Italian union, 12 March 2008. Available at: http://www.itfglobal.org/campaigns 109 ITF, Air Berlin seals first collective agreements with pilots, cabin crew, 8 August 2007. Available at: http://www.itfglobal.org/campaigns. 100 Social and working conditions in the transport sector of the European Union ______

3.3.4. Maritime transport

Fragmentation and trade union density

Data on trade union density and on collective bargaining in maritime transport are mainly derived from the survey. Accordingly the information provided refers to the countries of respondents unless otherwise indicated.

In Cyprus, the Cyprus Shipping Association (CSA) is active on behalf of the employers. Trade unions include the Federation of Transport, Petroleum and Agricultural Workers of Cyprus (Ομοσπονδία Εργατοϋπαλλήλων Μεταφορών, Πετρελαιοειδών και Γεωργίας Κύπρου, ΟΜΕPΕGΕ), affiliated to the Cyprus Workers’ Confederation (Συνομοσπονδία Εργαζομένων Κύπρου, SΕΚ), and the Cyprus Agricultural, Forestry, Transport, Port, Seamen and Allied Occupations Trade Union (Συντεχνία Εργατοϋπαλλήλων Γεωργίας, Δασών, Μεταφορών, Λιμενεργατών Ναυτεργατών και Συναφών Επαγγελμάτων Κύπρου, SEGDAMELIN), affiliated to the Pancyprian Federation of Labour (Παγκύπρια Εργατική Ομοσπονδία, PΕΟ)110.

In Denmark, 3F organises dockers, warehouse workers and other blue collar workers. White collar workers are organised in other unions (e.g. HK for office and trade).

In Italy, CONFITARMA is the national association of shipowners, while workers in maritime transport are represented by FILT-CGIL, FIT-CISL and UILTRASPORTI, which are social partners in the process of collective bargaining in the maritime sector.

In Malta the Malta Dockers’ Union (MDU) has recently been formed as an offshoot of the GWU.

In Romania the most influential trade union organisation in this sector is the National Federation of Harbour Unions (Federaţia Naţională a Sindicatelor Portuare, FNSP), affiliated to the National Trade Union Bloc (Blocul Naţional Sindical, BNS). The employers are represented by the government through the Ministry of Transport (Ministerul Transporturilor, MT), the harbour administrations and the Port Operators Employers' Organisation (Organizaţia Patronală Operatorul Portuar, OPOP111).

In Spain generally there is one trade union for each branch of the maritime sector. The vast majority of workers belong to trade unions CC.OO and UGT, even though there are other trade unions. In addition there are also regional trade unions such as ELA, CIG and LAB. Trade union density in Spain is very high, considering that 80% of workers belong to CC.OO and UGT.

In Sweden collective bargaining agreements (CBAs) govern the Swedish labour market, so the bargaining process is very important.

Major achievements as regards social conditions of workers in the sector were recently accomplished in Germany, where ver.di won a major concession in their struggle to prevent the sell-off of half of Hamburger Hafen und Logistik AG (HHLA), the company that runs the port of Hamburg. The dockers threatened to refuse to work overtime from 1 February 2007. They were concerned that the new owner would be unlikely to remain a member of

110 Eurofound – European Industrial Relation Observatory: Representativeness of the European social partner organisations: Post and courier services – Cyprus, 2008. 111 Eurofound – European Industrial Relation Observatory: Port workers initiate protest action against illegal work, 2008. 101 Policy Department B: Structural and Cohesion Policies ______the employers' association and would no longer pay workers the nationally negotiated wages. A number of large operators were reportedly interested in the sale112.

The survey developed by Eurofound113 shows a high unionisation rate in the sea and coastal water transport sector. Trade unions’ density is 50% or higher in more than half of trade unions, between 15% and 49% in around 32% of trade unions, and less than 15% for 13.5% of trade unions. However, these high-density rates do not imply a strong position of the unions in the sector. Inter-union policy coordination under the ITF umbrella compensates for the unions’ poor ability to regulate employment terms114. Moreover, the study reports that trade unions’ domains often overlap with the demarcation of the sea and coastal water transport sector (45.3%). Overlap could result from cross-sector domains or multi-sector domains covering contiguous sectors, while sectional overlap is less frequent (20.9%) and usually results from domain demarcations for categories of employees organised across more sectors.

Industrial relations/collective bargaining

The above mentioned Eurofound study115 reports a collective bargaining coverage rate of 80% or higher in 10 of the 21 countries for which data are available (namely Austria, Belgium, Denmark, Germany, Greece, Finland, France, Italy, Latvia and Lithuania). The coverage rate is below 50% in Cyprus, Estonia, Ireland, Luxembourg, Portugal, Spain and possibly Slovenia. In the Czech Republic there are no collective agreements due to the lack of domestic employers with unionised employees.

3.3.5. Inland waterway transport

Information on the extent of unionised labour in IWT is generally lacking in literature, Hence the analysis presented in this section cannot be considered sufficiently exhaustive.

Fragmentation and trade union density

According to the outcome of the survey conducted for the present study, in Belgium there is low fragmentation of trade unions in the IWT sector. The main employers' organisation is the Algemeen Actiecomité en Unie der Continentale Vaart. With regard to employees’ representatives, the Belgian Transport Workers' Union holds 80% of representation, the ACV - Transcom 20 % and ACLVB has few members.

Industrial relations/collective bargaining

Collective labour agreements for inland navigation, which set the requirements for labour conditions, exist in several European countries, among others in the Netherlands, Belgium and Germany. Examples of countries without collective agreements in IWT include Luxembourg and France.

A collective European labour agreement does not exist. Recently, the CCNR (Central Commission for Navigation on the Rhine) has proposed negotiating a collective agreement

112 ITF website, Port Industry Update, Issue 6, April 2007. 113 European Foundation for the Improvement of Living and Working Conditions, 2008, Representativeness of the European social partner organisations: Sea and coastal water transport. 114 Ibidem. 115 European Foundation for the Improvement of Living and Working Conditions, 2008, Representativeness of the European social partner organisations: Sea and coastal water transport. 102 Social and working conditions in the transport sector of the European Union ______together with employers, employees and government. ETF has drafted a framework agreement for collective agreements in Europe116.

3.3.6. Cross-border cooperation between trade unions

The rapid developments in market structures, particularly in the railway sector and civil aviation, have had profound consequences for relations between management and workers and their unions. The emerging EU regulation of certain aspects of working conditions, which traditionally were agreed upon through national and/or sectoral negotiations, may necessitate the development of forms of supranational labour relations.

One example of such new forms of labour relations is the cross-border cooperation between Hungarian and Austrian trade unions on the privatisation of MAV Cargo in Hungary, described in Box No 4.

Box 4 – Cross-border cooperation between trade unions: Hungarian and Austrian railways unions117 The Hungarian Minister of Economic Affairs and Transport announced in November 2007 that an Austro-Hungarian consortium had won the bid for the privatisation of MÁV Cargo Zrt – the freight transport branch of the Hungarian Railways Company (Magyar Államvasutak, MÁV). With the acquisition of MÁV, RCA has become the third largest railways company after the German Deutsche Bahn and the French SNCF. The first contact between the Austrian and Hungarian railways unions on this issue took place in early 2007 when MÁV had announced a call for tenders for MÁV Cargo, and RCA expressed interest in it. The trade unions declared in the course of the tender process that they preferred the Austro- Hungarian consortium because its offer included a guarantee to continue employing MÁV Cargo employees for the next three years. The other reason for their support of the consortium was the proposal to offer employees 5% of the shares at half of current market price. The signatories to the trade union agreement included representatives of the Free Union of Railways Workers (Vasúti Dolgozók Szabad Szakszervezete, VDSZSZ), the Trade Union of Hungarian Railwaymen (Vasutasok Szakszervezete, VSZ), the transport section of the Austrian trade union VIDA,and the works councils of MÁV Cargo, RCA and GYSEV. The agreement deals with various issues, providing a framework for all members of the employee side in Austria and Hungary. Employees of MÁV Cargo earn at least 40%–60% less than their colleagues at RCA, which was one of the most important issues to be resolved through the agreement. The agreement also addresses the employment of engine drivers: both countries’ trade unions concur that drivers must be employed in their own country.

The case reported in the box is a positive example of collaboration between trade unions of two different European MS in finding a solution to issues arising from the privatisation and merger of two companies originally based in different countries.

It should be interesting to find out if this can be considered an isolated case or if it represents a new trend in Europe. In this respect, it could be useful to open a debate on current roles of trade unions and their willingness and capacity to develop a European perspective in addressing the future challenges and risks that result from the opening of the market.

116 Prospects of inland navigation within the enlarged Europe, DG TREN, 2004. 117 Eurofound - European Industrial Relation Observatory, Cross-border cooperation between Hungarian and Austrian railway unions, 2008. 103 Policy Department B: Structural and Cohesion Policies ______

3.4. Social dialogue

Social dialogue represents one of the instruments of governance in the employment and social area in the European Union and in the MS. It refers to the discussions, consultations, negotiations and joint actions undertaken by the social partner organisations representing the two sides of industry (management and labour).

A key distinction is made between cross-industry social dialogue and sectoral social dialogue that takes place between sector employer federations and the industry federations on the trade union side. This section will deal mainly with sectoral social dialogue. Depending on the actors involved, a further distinction is made between tripartite and bipartite social dialogue. Tripartite social dialogue takes place between institutions, sector employer federations and trade unions, whereas bipartite social dialogue involves discussions only between the social partners.

The development of social dialogue by reducing labour conflicts in the transport sectors can conctribute to the achievement of important results for both parties involved and for the whole of society:

- increased labour productivity. - increased employer’s profits. - improved socio-economic conditions for transport workers, - improved working environment, - better conditions for new entrants, - reduced impact on the macroeconomic system as a consequence of reduced number of strikes, - improved social climate.

The Commission, in its Communication on ‘The European social dialogue, a force for innovation and change118‘, expressed the view that the sector level ‘is the proper level for discussion on many issues linked to employment, such as working conditions, vocational training and industrial change, the knowledge society, demographic patterns, enlargement and globalisation’. European sectoral social dialogue is an instrument of EU social policy and industrial relations at sector level between the European trade union and employer organisations of a specific sector of the economy. In September 2006, there were 33 sectoral social dialogue committees, which had produced a wide range of joint texts and agreements.

This section provides an analysis of stoppages of work caused by labour disputes connected with terms and conditions of employment between employers and workers, or between workers themselves in the services sector. In addition this section describes the organisation of social dialogue in the five transport sectors examined both at the European and national level. At the European level, the main actors are presented and at the national one the analysis focuses on the organisation of social dialogue and on the main issues giving rise to conflict. In the case of the maritime and inland waterways sectors, information on social dialogue is only available at the European level.

118 COM (2002) 341 final of 26 June 2002. 104 Social and working conditions in the transport sector of the European Union ______

3.4.1. Labour disputes in the services sector

As is well known, labour disputes are not always solved by social dialogue but in some cases are connected with stoppages of work that can be the result of strikes or lockouts depending on whether the worker or the employer is responsible. Figure 3-13 compares the number of working days lost per 1000 workers in the service sector and in all economic sectors. Unfortunately, this information is not available specifically for the transport sector and for transport modes but only for the aggregate of services including trade, hotels and restaurants and transport and communications.

Figure 3-13 – Average number of working days lost per 1000 workers: comparison between the service sectors and the whole economic sectors in selected European countries, 1998 - 2007

Working days lost per 1000 w orkers

140 Services 120 All sectors

100

80

60

40

20

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Elaborations on Eurostat – Labour market statistics (April 2009) Note: Service sector includes: NACE G H I - Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; hotels and restaurants; transport, storage and communications European countries considered: BE, CY, DE, DK, ES, FI, HU, IE, IT, LT, LV, MT, NL, PL, PT, RO, SE, SK and UK

As shown in the figure above the number of working days lost due to labour disputes in the services sector were significantly high between 1998 and 2000. In this period the number of working days lost was high also for the whole economy but still lower than for the services sector. In recent years the number of working days lost has substantially declined for both services and all sectors, however it is interesting to note that in 2007 this indicator hit another peak for service sectors.

These figures are quite interesting because they show that recourse to labour strikes has progressively been reduced over the last 10 years. One reason could be the increased recourse to social dialogue. However, more accurate analysis would only be possible with data referring to transport sectors.

105 Policy Department B: Structural and Cohesion Policies ______

3.4.2. Road transport

European level

ETF represents Europe’s road transport workers119 whilst European road transport employers are represented by IRU for the purposes of the sector’s social dialogue. The member associations of the IRU represent the passenger transport sector, the professional goods transport sector and own-account transport120 (Figure 3-14).

Figure 3-14 – European social dialogue in road transport

Social partners

EMPLOYEES ’ ORGANISATION EMPLOYERS ’ORGANISATION

ETF – European IRU – International Transport Workers Road Transport Federation Union

The European road transport social partners set up an informal dialogue for the first time in 1965. The road transport sectoral dialogue committee was created in 1999 and the internal rules of procedure were adopted in 2000. Some recent outcomes of the road transport sectoral social dialogue are listed below121.

- Economic and sector policies: IRU and ETF adopted in 2000 a joint opinion in support of a legislative initiative concerning drivers from third countries driving vehicles registered in the European Union and carrying out intra-Community road transport services. A joint opinion on social dialogue and EU enlargement was issued in 2003. - Training and lifelong learning: in 2005 the Committee adopted joint recommendations on employment in training and logistics aimed at improving workers' skills and competences, improving the quality of logistic services and facilitating the mobility of workers. A joint recommendation was adopted in 2006 on employment and training in logistics and common criteria for adequate motorway rest facilities were defined 122. - Working conditions: in 2002, the committee working group on urban public transport carried out a study on insecurity in local public transport. At a subsequent conference, recommendations were made to promote social dialogue at company level as the best tool to prevent insecurity and the feeling of insecurity. Further recommendations concerned the collection of information and the application of good practice in relation to human resources, technology, the organisation of work and its impact on the individual.

119 ETF was created at a founding congress in Brussels on 14-15 June 1999. The ETF brings together former members of the Federation of Transport Workers’ Unions in the European Union (FST – now dissolved) with European affiliates of the International Transport Workers’ Federation (ITF). 120 Eurofound, 1998, The sectoral social dialogue in transport: Working time firmly on top of the agenda. 121 Recent developments in European Sectoral Social Dialogue, European Commission, DG Employment, 2006. 122 Website of European Commission Employment, Social Affairs and Equal Opportunities, Social dialogue. 106 Social and working conditions in the transport sector of the European Union ______

In 2007 the social partners came to a joint position on articles and aspects of Regulation (EC) 561/2006 (social legislation related to road transport) which according to their assessment required clarification and enforcement guidance. In October 2007 the social partners also adopted a common declaration on illegal employment123.

Recently (May 2008) social dialogue was successful in finding a common position between IRU and the ETF that jointly called upon the European Union institutions to introduce a '12- day' driving derogation to EU Driving and Rest Time Rules124.

In November 2008 the social partners adopted the Work Programme 2009-2010125 that focuses on the following issues: improving rest facilities, award and recognition of qualifications for non-mobile workers in logistics, transposition into national law of the Driver Training Directive, better enforcement of EU driving and rest time rules.

National level

The way social dialogue is organised at the national level differs greatly among the various countries.

Although most European countries organise the parties nationally, some organise them regionally/locally (e.g. Austria, Denmark, Greece). The latter option results in many more collective agreements. In Spain, social bargaining is organised at provincial level. Although only three labour unions negotiate the collective agreements, they are regionally organised, or separately organised per large enterprise126.

Depending on the national social dialogue process, tripartism plays an important role in some countries, predominantly in the NMS. The box below provides some examples of successful social dialogue.

123 Common IRU and ETF Declaration on Illegal Employment, Adopted at the Plenary Meeting of the Sectoral Social Dialogue, which took place on the 16th of October 2007. 124 IRU website. 125 Sectoral Dialogue Committee Road Transport, Work programme 2009-2010, adopted on 18 November 2008. 126 European Foundation for the Improvement of Living and Working Conditions, 2004, EU road freight transport sector: Work and employment conditions. 107 Policy Department B: Structural and Cohesion Policies ______

Box 5 – Example of national social dialogues In the Czech Republic, the regulation which transposes the Working Time Directive was discussed at national tripartite level in the Council of Economic and Social Agreement of the Czech Republic. During these tripartite discussions, employers and trade unions expressed a number of criticisms in relation both to the consultation process (which was too short according to the employers) and the content of the proposed regulation. The government examined the objections put forward by the social partners in this tripartite forum and incorporated their proposals into the final wording of the regulation127. In Latvia, the social partners and government signed a sector-level tripartite agreement on socioeconomic partnership in the road transport sector in June 2006. Social dialogue is successful in the Latvian road transport sector because the sector is covered by the country's fourth largest trade union and one of the country’s largest employer organisations128. In Romania sectoral social dialogue takes place at both bipartite and tripartite levels. The social partners in the road sector play an active role in the collective bargaining process on labour relations issues129. France has a long and successful tradition in social dialogue in road transport. In 1994, the social partners (employers and employees) reached an agreement, the Contrat du Progrès, which led to a far-reaching improvement of working conditions in road transport of goods. The Contrat du Progrès was gradually implemented, beginning in 1995. Key aspects covered by the Contrat du Progrès are: gradual reduction in working time, recognition of and payment for all hours worked; compulsory initial and ongoing training130.

In some of the NMS, where social dialogue is not as firmly established as it is in the rest of EU, a lack of social dialogue is evident in the road transport sector. In Lithuania, for instance, collective bargaining only takes place in companies in which strong trade unions are present131. In Bulgaria, social dialogue is weak in the road transport sector due to low trade union density and few employer representatives132. Unfortunately, it was difficult to find further evidence on this issue; it would nevertheless be worth the European Parliament investigating this topic further in the future.

According to DG-Employment there are a number of pending issues where the social dialogue has not yet been successful. This is the case for instance of the code of conduct for subcontracting or training of drivers, on which employers are reluctant to reach agreements133.

In conclusion, social dialogue is an important instrument in the road transport sector. However, it is not sufficiently developed in countries where collective bargaining only takes place in companies in which strong trade unions are present or the sector is characterised by low presence of trade unions.

127 European Foundation for the Improvement of Living and Working Conditions, 2007, Impact of the working time directive on collective bargaining in the road transport sector. - Czech Republic. 128 Eurofound - European Industrial Relation Observatory, Impact of the working time directive on collective bargaining in the road transport sector - Latvia, 2007. 129 ILO, 2008, Social dialogue perspectives in Romanian Road Transport. 130 European Foundation for the Improvement of Living and Working Conditions, 2004, EU road freight transport sector: Work and employment conditions. 131 European Foundation for the Improvement of Living and Working Conditions, 2007, Impact of the working time directive on collective bargaining in the road transport sector - Lithuania. 132 European Foundation for the Improvement of Living and Working Conditions, 2007, Impact of the working time directive on collective bargaining in the road transport sector - Bulgaria.. 133 ETF, Restructuring and Developments in the Transport Sector, Background paper, October 2007. 108 Social and working conditions in the transport sector of the European Union ______

3.4.3. Railway transport

European level

The Joint Committee on Railways was established in 1972, though its work was interrupted for six years between 1976 and 1982. This was followed by a railways sectoral social dialogue committee in 1999, when the internal rules of procedure were established134. Again employees' interests are represented by ETF, whilst European Rail Infrastructure Managers (EIM) and CER represent employers' organisations.

Figure 3-15 – European social dialogue in railway transport

Social partners

EMPLOYEES’ORGANISATION EMPLOYERS’ORGANISATION

ETF – European EIM – European Transport workers Infrastructure federation Manager

CER – Community of European Railways

At European level social dialogue proved to be a successful instrument for promoting an agreement on working conditions between social partners. CER and ETF negotiated two agreements in 2003 and 2004 that were innovative and groundbreaking for the European Railways Social Dialogue. In these agreements, the social partners were able to define their own terms and conditions for the workers concerned. The agreement on ‘Working conditions for mobile railways workers assigned to cross-border interoperability services’ became European legislation (Directive 2005/47/EC) in July 2005. The content of the agreement on a ‘European locomotive drivers’ licence’ was integrated in the Commission’s draft directive on the certification of train crews within the 3rd Railways Package135.

It is also worth mentioning that between 2000 and 2006 the sectoral dialogue committee working groups carried out several projects that produced reports on the use of new technologies in training, on work organisation, on the employability concept, on interoperability, on the representation of women in the various railways professions, and on the sectoral social dialogue after enlargement136.

The CER, EIM and ETF have differing views on the liberalisation of rail passenger transport, which has been a key priority on the EU legislative agenda over the last few years. However, they do share views on, for instance, the question of infrastructure policy or fair competition between transport modes. In a joint declaration addressed to the European Commission in May 2006, for example, they jointly requested that the Commission speed up its work on the internalisation of external costs in infrastructure charging. The European

134 Recent developments in European Sectoral Social Dialogue, European Commission, DG Employment, 2006. 135 The social dialogue in the rail sector, ETF and CER Information Seminars in Tallinn and Bucharest, 2006 . 136 Sectoral Social Dialogue in Railways sector, European Commission, Employment, social affairs and equal opportunities, available at http://ec.europa.eu/social/home.jsp?langId=en 109 Policy Department B: Structural and Cohesion Policies ______

Railways Agency started its work in 2005 and many of its tasks will affect railways safety, qualifications of workers and working conditions.

In their last work programme,137 the social partners set the issues to be addressed in the coming years: European licence; working conditions of mobile workers engaged in interoperable cross-border services; impact of European rail freight restructuring on employment; ERTMS ‘test tracks’ and the system's impact on employees; technical specifications for interoperability; gender equality; insecurity and feeling of insecurity in local public transport; concept of employability; and demographic change and attractiveness of the sector.

In conclusion, social dialogue at European level proved to be a useful instrument in finding a common position between the social partners and in promoting the development of common EU policies and legislation.

National level

Social dialogue is also particularly well developed in the rail sector at national level.

It is possible to distinguish between two groups of countries with opposite trends in relation to social dialogue in recent years. The first group has shown high and sometimes even increasing levels of conflict, which arose mainly out of the railways reform process. The second group has experienced a prolonged period of decreasing, or even absence of, industrial action.

Austria, Estonia, France, Ireland, Italy, the Netherlands, Poland, Portugal and Spain belong to the first group. In all of these countries, the reform of the railways sector, namely the reorganisation of incumbent railways companies, was at the centre of the conflict in recent years.

In countries in which conflict is relatively low, the institutional framework exerts a decisive impact. For example, in Denmark and Germany, the exclusion of civil servants from the right to strike has played a significant role138.

The overall climate of industrial relations and social dialogue can contribute to reducing conflict, for example by increasing the effectiveness of dispute resolution tools. In Belgium, for instance, social dialogue appears to be effective. Despite strong criticism by unions of the reorganisation plan, actual conflict has been quite rare and only two days have been lost due to strike action since 2000139.

3.4.4. Air transport

European level

As in the other transport committees, employees' interests are represented by the ETF, but also by the European Cockpit Association (ECA).

Company interests are represented by a number of employers' organisations active at European level: ACI Europe defends the interests of almost 300 airports in 43 countries;

137 Sectoral Dialogue Committee Rail Transport, Work Programme 2008-2009, Adopted in 22 May 2008. 138 European Foundation for the Improvement of Living and Working Conditions, 2005, EIRO thematic feature Industrial relations in the railway sector. 139 Ibidem. 110 Social and working conditions in the transport sector of the European Union ______

AEA could be seen to represent the (previously) state-owned airlines across Europe; CANSO; the European Regional Airline Association (ERA), as the name suggests, represents the interests of regional airlines in the EU; IACA is the international organisation representing air carriers; and the International Aviation Handlers' Association (IAHA).

Figure 3-16 – European social dialogue in air transport

Social partners

EMPLOYEES’ORGANISATION EMPLOYERS’ORGANISATION

ECA - European ACI Europe - Airports Council Cockpit Association International

ETF - European AEA – Association of Transport Workers' European Airlines Federation

CANSO - Civil Air Navigation Services Organisation

ERA - European Regions Airline Association

IACA - International Association of Charter Airlines

IAHA - International Aviation Handlers' Association

The civil aviation social dialogue committee was established in 2000 and the internal rules of procedure were adopted in 2003.

The committee has proven to be a valuable instrument since it was established. Among others, social partners have signed the following documents140:

- a European-level agreement on working time for mobile staff in the civil aviation industry, concluded on 22 March 2000; this was signed by ETF, ECA, AEA, ERA and IACA; the agreement applies to mobile staff in civil aviation and regulates annual leave, maximum annual working time, maximum annual 'block flight time', minimum monthly rest and minimum annual rest days; it was given legal effect by means of an EU Directive (2000/79/EC); - a joint opinion (in 2001) on the crisis in air transport following September 11, calling upon the Councils of Transport and Finance Ministers to approve measures to provide assistance to the aviation sector to address both economic and social factors affecting the future of the industry; - ETF and CANSO signed in 2004 the joint statement ‘Social partners: key players in the functional airspace blocks’ (FABs), addressing operational and technical issues as well as financial and human resources issues141;

140 European Foundation for the Improvement of Living and Working Conditions, 2005, Industrial relations in the airline sector. 141 Industrial relations in the airline sector, European Foundation for the Improvement of Living and Working Conditions, 2004. 111 Policy Department B: Structural and Cohesion Policies ______

- a joint statement on quality, safety and training in the ground handling sector, concluded on 21 January 2005.

The sector partners in European civil aviation (ETF, ERA, AEA and IACA) agreed in 2005 to undertake a survey and a comparative analysis in order to provide the interested parties with an objective understanding regarding cabin crew licensing, recruitment and vocational training in the different MS. It was agreed that the report would be a purely comparative legal assessment and would not include policy recommendations for the future. The report was delivered in March 2007142.

The ETF supports the Single European Sky and stressed that policy-makers should be ready to involve workers in every step of the design of a unified air traffic management (ATM) system in Europe. This was also the core ETF message at the Conference Towards a More Performing European System in Europe, organised by the European Commission on 22 January 2008 in Brussels, soon after unions lashed out at the Commission for calling Single European Sky a ‘success’ in the High Level Group report that missed out consultation of workers. Furthermore, safety issues connected to the creation of the Single European Sky have also become central to the EU social partners. In this regard, the ETF raised serious concerns over the lack of safety references in the report and, in particular, over the lack of attention to incident and accident reporting systems and the way they should be harmonised in Europe143.

CANSO and the ETF, as the recognised social partners respectively representing air traffic management employers and employees within the European Social Dialogue, jointly organised a conference on Functional Airspace Blocks in Paris on 8 and 9 October 2007, with the support of the European Commission. This was the second conference on FABs organised by CANSO and ETF. The first conference was held in Palermo, Sicily in 2004 following the publication of the Single European Sky Regulations. Following that conference, through a number of sub-groups and the support of the European Commission, the social partners delivered a ‘Report by the Social Dialogue ATM Work Group on the implications of FABs’ in January 2007. This work culminated in the joint CANSO-ETF statement for the second Single European Sky package (issued on 28/02/2008)144 providing for a bottom-up approach and ongoing dialogue with all aviation stakeholders, primarily aiming at building trust, at adding operational value and at making ATM more efficient and cost-effective and increasingly sustainable for the environment.

The current work programme of the social partners focuses on training and qualifications in the ground handling sector, on the promotion of a healthy workplace for air crew, on the anticipation and management of change linked to the single European sky (ATM), on improving the EU legislation linked to ‘Just Culture’, and on external factors having social implications145.

Hence, social dialogue in civil aviation at European level is well established. Two organisations for employees and six organisations for employers are actively contributing to the dialogue and to the development of common positions on many industry issues.

142 Rules and regulations governing cabin crew in the EU25, EGOA, March 2007. 143ETF website, Press area: Single European Sky design cannot omit workers’ participation, 24 January 2008. 144 CANSO-ETF joint statement for SES II-final, 28 February 2008. 145 Sectoral Dialogue Committee Civil Aviation, Work programme 2008-2009, Adopted at the plenary meeting 4 June 2008. 112 Social and working conditions in the transport sector of the European Union ______

National level

As for other modes of transport, social dialogue is used in all MS for collective bargaining over pay and working conditions. In some EU countries, predominantly in the NMS, there are also formalised social dialogue structures. For example, in Slovakia, tripartite negotiations take place, focusing on changes in legislation related to the airline industry. In Hungary, a sectoral social dialogue committee for the airline sector (Légiközlekedési Ágazati Párbeszéd Bizottság, LÁPB) has been set up, comprising representatives of five organisations on the employers' side and 12 on the employees' side146.

3.4.5. Maritime transport

European level

At European level the social dialogue in the sector has largely focused on the issues of employment, health and safety and working time. As shown in Figure 3-17, employee interests are represented by ETF, while employers are represented by the European Community Shipowners Association (ECSA)147.

Figure 3-17 – European social dialogue in maritime transport

Social partners

EMPLOYEES’ORGANISATION EMPLOYERS’ORGANISATION

ETF - European ECSA - European Transport Workers‘ Community Federation Shipowners‘ Association

The social dialogue committee was initially established in 1999.

So far, dialogue between social partners has allowed for the adoption of a number of agreements and other common documents. These include:

 a set of guidelines entitled ‘equal opportunity and diversity in the European shipping industry: Eliminating workplace harassment and bullying’ (2004); the guidelines aimed to help shipping companies eliminate harassment and bullying on board ships and implement effective company policies on equal opportunities148;

 a joint agreement on Maritime Labour Standards (9 November 2007), aiming at incorporating into Community law some of the provisions of the International Labour Organisation Maritime Labour Convention 2006 (ILO MLC 2006). Negotiations between social partners leading to the conclusion of such an agreement started on 29 September

146 European Foundation for the Improvement of Living and Working Conditions, 2005, Industrial relations in the airline sector. 147 In addition to the ECSA, employers' organisations for the fishery sector include Europeche, the representative association of national organisations of fishing enterprises in the EU with member organisations in Belgium, Denmark, Germany, Greece, Ireland, Italy, Malta, Spain, Sweden, the Netherlands and the UK, and the General Confederation of Agricultural and Fisheries Cooperatives (COGECA), representing about 30,000 agricultural and fishery cooperative enterprises, with members in all Member States as well as in Romania and Bulgaria. 148 Sectoral social dialogue, available in the website of European Commission Employment, Social Affairs and Equal Opportunities, Social dialogue. 113 Policy Department B: Structural and Cohesion Policies ______

2006, following a Communication from the Commission on the strengthening of maritime labour standards adopted by the Commission itself on 15 June 2006 (COM(2006) 287 final). The inclusion of certain provisions of the ILO MLC 2006 in the ‘acquis communautaire’ by means of an EU directive will require all MS to transpose the contents into their national legislation, thus rendering an internationally agreed instrument legally binding at EU level. In concluding their Agreement, the social partners stress the need to have labour standards applicable to all seafarers on board vessels. To ensure a global level playing field, ETF and ECSA have also agreed that their agreement enters into force on the date that the ILO MLC 2006 enters into force. The social partners requested the Commission to start working on a proposal for a Council decision through which the provisions contained in their agreement would be effectively implemented at Community level149. The Commission welcomed the agreement and on 2 July 2008 issued a Proposal for a Council Directive COM(2008)422 implementing the Agreement concluded by the ECSA and the ETF on the MLC 2006 on 19 May 2008150. The new Directive also amends Directive 1999/63/EC concerning the Agreement on the organisation of working time of seafarers and will add a complementary regulation regarding the maritime sector in the field covered by Council Directive 94/33/EC of 22 June 1994 on the protection of young people at work. This incorporation into Community law would create binding standards and would strengthen the International Labour Organisation (ILO) standards at international, European and local level. Consequently, substandard working conditions and social dumping would be reduced and more and better jobs would be created in the maritime sector151.

In December 2008, the Social Partners ETF/ECSA met in Plenary in order to agree a work programme for 2009. The new programme covers a wide range of issues such as seafarer recruitment and training, the Commission Communication ‘Reassessing the regulatory social framework for more and better seafaring jobs in Europe’, the Maritime transport policy 2008-2018, health and safety in the maritime sector, maritime safety, security/the seafarers’ ID and the Social Partners Agreement on the ILO MLC. On the latter point, the social partners made an appeal to the Employment Council not to deviate from the Social Partners Agreement in the implementing Directive. The social partners also issued the statement on piracy152 referred to below.

As can be deduced, social dialogue in the maritime sector is well established at European level and it has proven to be a valuable instrument for promoting the adoption of balanced positions between the social partners on a large number of issues. The contribution from sectoral social dialogue often positively influenced the activity of the Commission.

3.4.6. Inland Waterway transport

European level

Social dialogue has been conducted in the industry since 1967 (between 1967 and 1980 in the form of a joint advisory committee and subsequently as a joint committee). Employees are again represented by the ETF while employers' views are represented by the European Barge Union (EBU) and the European Skippers’ Organisation (ESO) (Figure 3-18). The social dialogue committee was established in 1999.

149 Ibidem. 150 ETF website: news on-line July 2008. 151 Website of European Commission Employment, Social Affairs and Equal Opportunities, Social dialogue. 152 European Community Shipowners’ Association, ECSA Newsletter N. 8/08 114 Social and working conditions in the transport sector of the European Union ______

Figure 3-18 – European social dialogue in inland waterway transport

Social partners

EMPLOYEES’ORGANISATION EMPLOYERS’ORGANISATION

ETF – European EBU – European Transport workers Barge Union federation

ESO - European Skippers‘ Organisation

In recent years EBU, ESO and ETF have been discussing professional profiles as well as working time. The main areas of work of the inland waterway transport sector committee for social dialogue are in the fields of:

- integrating organisations from NMS and candidate countries; - training and lifelong learning: the social partners are drawing up an inventory of professional qualifications in the EU, aiming to enhance mobility and to reach equivalence in professional qualifications; the final objective could be the definition of EU-wide professional qualification requirements; - working time: according to the committee, the Working Time Directive does not take into account the specific needs of the sector, such as a definition of periods of availability. The parties entered officially into negotiations in January 2008 with a view to reaching an agreement on working time after a number of preparatory talks during the last couple of years. With this agreement, the parties wish to adapt the general rules on working time which are currently applicable to them (Directive 2003/88/EC concerning certain aspects of the organisation of working time) to the specific circumstances of the sector, like the crewing of vessels, qualification of on-call duty, reference periods, etc153.

In April 2009, the social partners adopted the work programme for 2009 and 2010154; the document focuses on 5 areas:

- reaching a social partner agreement on working time for the inland waterways sector; - establishing EU job profiles for all functions in inland waterways and the establishment of EU minimum standards for training and education in inland waterways; - discussing and exploring scope for agreement on the establishment of a social partner standard on manning requirements; - improving onboard working and living conditions and access to port side facilities; - combating unfair competition in inland waterways.

153 European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities Unit F.1: Industrial Relations in Europe, September 2008. 154 Sectoral Social Dialogue Committee Inland Navigation: Work programme 2009-2010, April 2009. 115 Policy Department B: Structural and Cohesion Policies ______

The NAIADES Action Programme of the EC identifies the improvement of working and social conditions in the sector as one of the central challenges to increasing the attractiveness of the sector155. A constructive dialogue between social partners at European level is one way to address these objectives156.

3.4.7. Social dialogue to address current economic crisis

Social dialogue could be used by European governments to seek consensus between social partners on objectives of the national policies to address the current economic crisis and on the practical proposals. Within this context, the box below provides a description of recent outcomes of social dialogue in Spain and in Luxembourg.

155 ETF, Restructuring and Developments in the Transport Sector, Background paper, October 2007. 156 COM (2007) 770 final. 116 Social and working conditions in the transport sector of the European Union ______

Box 6 - Social dialogue seeks to address the economic crisis Spain157 In Spain the Government announced a package of measures to revitalise the Spanish economy. Given the current economic crisis, the employers are calling for more radical measures, such as increased flexibility and less costly dismissal provisions. The social partners agree with the Government’s diagnosis about the seriousness of the impact of the economic crisis on business activity and employment. They also concur that the crisis in the Spanish economy, caused by an adjustment in the construction sector, has been aggravated by external factors, in particular, the international financial crisis and the price of oil, which have resulted in inflationary pressures and the tightening of credit conditions for companies. Among the challenges identified for addressing the current situation is the priority issue of employment and the need to move towards a more balanced pattern of growth and development, based on improving labour productivity and business competitiveness. The Government’s proposals presented to the social partners included actions for boosting the economy such as: - liberalising and increasing railways freight transport; - adopting measures for restructuring the public airport management operator, Spanish Airports and Air Navigation; - introducing a new law on ports, in order to promote competition among Spanish ports and in the provision of auxiliary services within them. CEOE, as the leading employer organisation at national level, believes that the measures are welcome but insufficient to deal with the crisis and is calling for more exceptional measures. The trade union confederations CC.OO and UGT have rejected such proposals. Moreover, their respective federations in the transport sector have already expressed their opposition to the Government’s plans, which they see as a step towards privatisation of the public transport network. Luxembourg158 In February 2009, it was reported that the social partners and the Government of Luxembourg were negotiating within the framework of the tripartite committee in order to reach an agreement on a plan to address the economic crisis. Trade unions point to the job-loss figures and fear that redundancy programmes will multiply. However, the authorities and economic analysts remain confident. The haulage section of the Luxembourg Trade Confederation (Confédération Luxembourgeoise du Commerce, CLC) claimed that it was among the most seriously affected by the economic crisis and demanded for the 300 companies it represents the same conditions for awarding partial unemployment measures as those which apply to industry (the job retention instruments offered by Luxembourg legislation). By contrast, the Committee for the Economy judged that the haulage sector was not in crisis. Hence, only those haulage companies that have experienced difficulties due to an ‘economic dependency link’ with an industry in crisis have been granted the right to partial unemployment benefit for their personnel. Professionals in the sector have spoken out against this situation, stating that ‘the vast majority of hauliers’ are unable to take advantage of this measure for preventing redundancies.

As described above, on the one hand, the Spanish Government and social partners agreed on the Government’s diagnosis and on objectives of social dialogue to address current challenges. On the other hand, the social partners and particularly the trade unions expressed their opposition to the Government’s proposals on further liberalisation of the transport sectors. Also in Luxembourg the social partners expressed concern at the measures taken by the Government: particularly they called for job protection of

157 Eurofound - European Industrial Relation Observatory, Social dialogue agenda seeks to address economic crisis, November 2008. 158 Eurofound - European Industrial Relation Observatory, Mix of confidence and scepticism in face of economic crisis, February 2009. 117 Policy Department B: Structural and Cohesion Policies ______employees in the road transport sector to be reinforced, applying some job retention instruments which apply to industry.

At the moment, is not possible to assess to what extent social dialogue can help to address the current crisis. However, in the examples reported, social dialogue is playing an important role in seeking a balanced agreement between social partners on plans to cope with the crisis.

3.4.8. Key findings: social dialogue in the different transport sectors

Social dialogue is a governance instrument in the employment and social area in the European Union and its MS. The development of social dialogue reduces labour conflicts in the transport sectors and can thus contribute to the achievement of important results for employees, employers and society as a whole.

This chapter has shown some positive developments for social dialogue in the transport sector over the last decade, and the European social partners have concluded several framework agreements at both European and national levels. Social partners’ priorities which are common to the different transport sectors are:

- working conditions (especially working time and wages), - training and lifelong learning, - equality and representation of women, - safety and training (especially for civil aviation), - attractiveness of the sector and job retention (especially in the maritime and IWT transport sectors).

Social dialogue is one of the main pillars of the social model in many MS and at EU level. It provides a platform for organising the collective voices of workers and employers, in particular in establishing criteria for fair working conditions and contributing to social peace, social cohesion, contained wage inequalities and access to lifelong learning.

A number of pending issues representing key challenges for European social dialogue in the different transport sectors are included in the agenda for coming years:

- key challenges in road transport: improving rest facilities, award and recognition of qualifications for non-mobile workers in logistics, transposition into national law of the Driver Training Directive, better enforcement of EU driving and rest time rules; - key challenges in railways: European licence, working conditions of mobile workers engaged in interoperable cross-border services, the impact of European rail freight restructuring on employment, ERTMS ‘test tracks’ and the system's impact on employees, technical specifications for interoperability, gender equality, insecurity and feeling of insecurity in local public transport, concept of employability, demographic change and attractiveness of the sector; - key challenges in the field of civil aviation: training and qualifications in the ground handling sector, workplace health promotion (air crew), anticipation and management of change linked to the single European sky (ATM), ‘Just Culture’, and external factors having social implications; - key challenges in maritime transport: seafarer recruitment and training, the Commission Communication ‘Reassessing the regulatory social framework for more and better seafaring jobs in Europe’, the Maritime transport policy 2008-2018, health and

118 Social and working conditions in the transport sector of the European Union ______

safety in the maritime sector, maritime safety, security/ seafarers ID and the social partners agreement on the ILO MLC; - key challenges in IWT: working time for the inland waterways sector, EU job profiles for all functions in inland waterways and EU minimum standards for training and education in IWT, standard on manning requirements, improvements in onboard working and living conditions and access to port side facilities, unfair competition in inland waterways.

3.5. Working time

The following paragraphs describe EU sector regulations on working time for the different modes of transport. Some examples of current working hours in the different transport sectors (for which data are available) are also reported.

3.5.1. Road transport

Working time in the road sector is regulated by Directive 2002/15 on the organisation of working time of persons performing mobile road transport activities. Directive 2002/15 affects mobile workers who are participating in road transport activities covered by EU drivers' hours rules. This includes drivers, members of the vehicle crew and any others who form part of the travelling staff. Self-employed drivers are currently excluded from the scope of the Directive. This has triggered several difficulties - in particular in terms of enforcement problems, increasing work-related health problems and the increasing phenomenon of 'false' self-employed drivers who are so declared in order to avoid their falling under the scope of the Directive159 (see also section 3.7.1) In October 2008, the European Commission adopted a proposal to modify the Directive, to tackle these problems (COM(2008) 650). The new proposal aims at ensuring that the existing working time rules apply to all employed professional drivers, including false self-employed workers. However, in March 2009 the European Parliament’s Committee on Employment and Social Affairs after the first reading of the proposal called on the Commission to withdraw its proposal and take appropriate steps together with Parliament to submit a new proposal.

Working time provisions are summarised in Table 3-7. Driving times are regulated by Regulation 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport. Workers in road transport, other than those subject to the Road Transport Directive (2002/15), are subject to the European Working Time Directive.

Table 3-7 – Working time in the road sector – Directive 2002/15

Average weekly Daily working time Break Night driving working time Max 8 hours (10 hours Max 48 hours (60 30-minute break after if an average of eight hours if an average of 6 hours of work, or a hours a day is not 48 hours per week is 45-minute break after Max 10 hours exceeded within two not exceeded within a between 6 and 9 hours months) period of 4 months) of work

159 REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the consequences of the exclusion of self-employed drivers from the scope of the Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities COM(2007)266. 119 Policy Department B: Structural and Cohesion Policies ______

Table 3-8 – Driving time in the road sector – Regulation 2006/561

Daily driving time Weekly driving time Daily rest Weekly rest

Daily rest period must May not exceed 56 be at least 11 hours, Weekly rest is 45 Max 9 hours but may hours and the total but, as an exception, continuous hours, be increased to 10 fortnightly driving time may be reduced to 9 which can be reduced hours twice a week may not exceed 90 hours three times a to 24 hours160 hours week

The information on working time in road transport provided below is generally taken from the third European Survey on Working Conditions carried out in 2000 and consolidated in a report published in 2003161. Hence, these data represent the sector situation prior to the transposition of Directive 2002/15/EC into the Member States’ national laws.162

According to the findings of the Survey, the percentage of employees working standard hours in road transport is relatively low. All countries mention high average working hours. In this sector the percentage of employees working more than 40 hours a week is high compared with national levels in the wider economy; the same is true for working overtime. In Denmark, 67% of employees in freight transport by road work more than 45 hours a week. This tallies with the fact that freight transport by road is characterised by very high demands for efficiency and the need to maximise usage of the vehicles, bearing in mind the high investment costs. In Belgium, 24% of drivers work more than the maximum of 12 hours one, two or three days a month, and 21% work more than 12 hours two or three days a week. Employers state that it is almost impossible to decrease the working time of professional drivers because drivers do not want to earn less, do not want to share ‘their’ truck, and want to keep a good relationship with clients. In Austria working weeks of between 70 and 80 hours are fairly common in international transport. In Spain, working hours in the sector remained high throughout the 1990s, compared with the downward trend registered for the national average. In the United Kingdom, 60% of employees in the sector work more than 48 hours a week, compared with 17% in the economy as a whole.

Historically, drivers have worked long hours to increase their earnings and reach a reasonable level of take-home pay. Long hours of work, combined with overnight stays away from home, make it difficult for drivers to achieve a balance between work and home life. While working hours in the sector are high in France, they have decreased significantly since the implementation of the Contrat du Progrès in 1995. Hours worked in road passenger transport tend to be shorter than in freight transport by road. In the Netherlands, 47% of drivers regularly work more than 55 hours a week.

According to the findings of the above Study163, employees in the transport sector have more non-standard working patterns, compared with the national average in the wider economy. The transport sector is characterised by unsocial working hours: work is done during the evening, night and morning and also during weekends and holidays. These findings were confirmed by the results of the survey developed for the present study (see Box No 7).

160 In the event of a reduced rest period, the reduction shall be compensated by an equivalent period of rest taken en bloc before the end of the third week following the week in question. 161 Outcomes of the surveys regarding road transport were consolidated in the following report: European Foundation for the Improvement of Living and Working Conditions, EU road freight transport sector: Work and employment conditions, 2004. 162 Deadline for transposition was supposed to be 23 March 2005. 163 Deadline for transposition was supposed to be 23 March 2005. 120 Social and working conditions in the transport sector of the European Union ______

Box 7 - Non-standard working times/working patterns in road transport164 Austria: employees in the sector carry out shift work on a regular basis more often than the national average. Belgium: the percentage of transport employees on permanent night work (14%) is much higher than the national average (2%), while 60% of drivers sometimes work at night, and 25% work one to three nights a week. Spain: more than 75% of surveyed employees sometimes drive at night. Denmark: just 42.5% of employees in the sector work permanent day shifts compared with a national average of 80%, while as many as 31.5% work irregular hours compared with a national average of 9%. United Kingdom: drivers are less likely to work formal shift patterns than those in other occupations. Weekend work is common and working at night is extensively used to make use of the road network when it is relatively empty.

3.5.2. Railway transport

Working time in the railway sector is regulated by Council Directive 2005/47/EC of 18 July 2005 on the Agreement between the CER and the ETF on certain aspects of the working conditions of mobile workers engaged in interoperable cross-border services in the railway sector (Table 3-9). The Directive entered into force on 27 July 2005 and the MS have now to transpose it into their national laws within three years at the latest. It means that the new rules have been mandatory for the whole railway sector since 27 July 2008.

The Directive sets minimum standards that create a level playing field for all companies, applying to workers engaged in interoperable cross-border services in the railways sector. However, MS were allowed to maintain or introduce more favourable provisions than those laid down by this Directive.

Hence, the European minimum standards can play the role of a barrier for downward competition when collective agreements do not apply to the whole sector but only to individual companies .

Table 3-9- Working time in interoperable cross-border services in the railways sector – Directive 2005/47

Daily rest away Driving time over Daily rest at home Breaks Driving time from home two-week period

Minimum of 12 45 minutes (when consecutive hours working time 9 hours for a day per 24-hour longer than 8 8 consecutive shift and 8 hours period (reduced to hours) hours per 24-hour for a night shift Max 80 hours a minimum of period 30 minutes (when between 2 daily nine hours once working time rest periods every 7-day between 6 and 8 period hours)

3.5.3. Air transport

Working time in air transport is regulated by Council Directive 2000/79/EC (Aviation Directive) of 27 November 2000, concerning the European Agreement on the Organisation of Working Time of Mobile Workers in Civil Aviation concluded by AEA, ETF, ECA, ERA and IACA. This Directive affects all mobile workers in commercial air transport (both flight crew

164 Survey performed for the present Study. 121 Policy Department B: Structural and Cohesion Policies ______and cabin crew). Workers in air transport other than those covered by the Aviation Directive are subject to the European Working Time Directive (Table 2-2). The limits and minimum standards already established in Directive 2000/79/EC have been taken into account by Regulation 1899/2006165, as explicitly stated in its introductory notes.

Table 3-10- Working time in the air transport sector – Directive 2000/79

Max annual working Annual flight time Days free of all service time

7 days per month and at least 96 days per 2000 hours 900 hours year

A survey by Eurofound166 has shown that the number of duty hours (per month or per year) has increased for flight crew and cabin crew in the past ten years. For air traffic controllers and ground handling staff not many changes seem to have occurred. Although the figures were lower than for operational pressure, duty hours were also one of the few areas in working conditions where some employers saw an increase over the past ten years. In the interviews, trade unions and employers stated that the main changes in the past ten years had concerned the number of flying hours rather than total duty hours. As mentioned before, the minimum requirements regarding the number of flying hours for flight and cabin crew in the EU are regulated in Directive 2000/79.

Furthermore, in the interviews employers stated that they honour the rules laid down in the Directive and stay well below the maximum allowed number of flying hours for flight crew and cabin crew as laid down in the Directive. Some employers who were interviewed indicated that in the past ten years they had increased flexibility to allow flight crew to fly more hours in a certain period and fewer hours in another period. Pilots' trade unions interviewed stated that, on average, the annual number of flying hours that an airline was demanding from flight crew had moved closer to the maximum number allowed by Directive 2000/79.

To summarise, according to the findings of the above survey the following conclusions can be drawn.

- In three out of the seven airlines that responded to the questionnaire the number of duty hours for flight crew increased in the time frame 1997-2007. - Six airlines that responded said the number of duty hours for cabin crew had increased. - The vast majority of the pilots' trade unions that responded had seen an increase in the number of duty hours for the flight crew they represent in the past ten years.

3.5.4. Maritime transport

Working time in maritime transport is regulated by Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of working time of seafarers concluded by ECSA and the Federation of Transport Workers Unions in the European

165 Regulation (EC) No 1899/2006 of the European Parliament and of the Council of 12 December 2006 amending Council Regulation (EEC) No 3922/91 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation. 166 The survey is quoted in the Study ’Social developments in the EU air transport sector. A study of developments in employment, wages and working conditions in the period 1997-2007‘, ECORYS (commissioned by the European Commission – DG TREN), December 2007. 122 Social and working conditions in the transport sector of the European Union ______

Union167 (FST). The European Working Time Directive covers non-mobile workers in maritime transport.

Table 3-11- Working time in the maritime sector – Directive 1999/63 (seafarers)

Daily working time Max hours of work Min hours of rest

14 hours in any 24-hour 10 hours in any 24-hour period; 8 hours with 1 rest day per week period; 72 hours in any 72 hours in any 7-day period 7-day period

In May 2008, the social partners in the maritime shipping industry signed a joint agreement on labour standards in the maritime industry168. The agreement includes improved provisions for seafarers on working time and rest periods. Following the signing of the agreement, on 2 July 2008 the European Commission proposed a Council Directive (COM (2008) 422 final) to implement the terms of the agreement169. The new directive will expressly amend Council Directive 1999/63/EC.

3.5.5. Inland Waterways

Working time in IWT is regulated by Directive 1993/104 as amended by Directive 2000/34/EC, concerning certain aspects of the organisation of working time. The main provisions are summarised in the following table.

Table 3-12- Working time in the inland waterways sector – Directive 1993/104

Minimum rest period Rest break Rest period

When the working day is longer Per seven-day period, every 11 consecutive hours per 24- than six hours its duration must worker is entitled to an hour period be laid down in collective uninterrupted period of 24 hours agreements plus the 11 hours' daily rest

3.6. Health and safety at work

This section presents the main health and safety risks in the five transport sectors analysed in this study. When relevant, distinctions for health and safety risks are made by occupation within the specific sector. The section also illustrates the relevant legislation concerning safety in each sector.

Violence and stress at work are a source of occupational risk in the transport sector that has attracted increasing attention over recent years. Violence and stress are distinct from each other, but they can interact, since stress is believed to be at least partly a result of violence and vice versa. Moreover, both occupational stress and violence may be addressed simultaneously. Violence at work can be defined as incidents where employees are abused, threatened, assaulted or subjected to other offensive behaviour in circumstances related to their work. Violence includes both physical and non-physical violence170.

167 The ETF brings together former members of the FST – now dissolved with European affiliates of the ITF. 168 European Foundation for the Improvement of Living and Working Conditions, Maritime agreement to form basis of new EU directive, 2008. 169 On 13 February 2009 the COUNCIL OF THE EUROPEAN UNION (Education, Youth and Culture) adopted the Council Directive implementing the Agreement on the Maritime Labour Convention, 2006 and amending Directive 1999/63/EC. 170 ILO Fact Sheet, Violence and stress in transport, 2007. 123 Policy Department B: Structural and Cohesion Policies ______

The main tasks of transport workers include the transport itself, the provision of information to and the supervision of the ‘social safety’ of the travelling public, the inspection of tickets and prevention of vandalism and violent behaviour. Staff working in the transport services – including airline and airport services, ferry, train, bus and taxi services – are potentially those most at risk of physical or psychological violence171.

All European countries have legislation and rules to protect employees from occupational safety and health risks, though there are wide differences in the dates when they came into force and the content of the rules. In the early 1990s, the EU countries adopted legislation from the EU General Framework for preventive action on the quality of work and employment172. This framework resulted in some harmonisation, although specific differences still exist. Broadly speaking, this framework was designed to establish:

- the pursuit of a health and safety policy; - the application of a risk inventory and assessment; - that employees are to be informed and advised about health and safety at work; - that a report on occupational accidents and diseases should be sent to the Labour Inspectorate (and to Eurostat)173; - certain policy aspects on which employees should be informed (Works Councils Act etc.); - that the help of a certified occupational health and safety service should be called in; - that an in-house emergency and first-aid service should be available (to a certain standard).

Other directives on health and safety include:

- Directive 2002/15/EC on the organisation of the working time of persons performing mobile road transport activities. This directive establishes minimum requirements in relation to the organisation of working time, in order to improve health and safety,

- Council Directive 2000/54/EC on the protection of workers from risks related to exposure to biological agents at work,

- Council Directive 2000/39/EC establishing a first list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC on the protection of the health and safety of workers from the risks related to chemical agents at work,

- Council Directive 99/92/ on minimum requirements for improving the safety and health protection of workers potentially at risk from explosive atmospheres,

- Council Directive 93/103/EC of 23 November 1993 concerning the minimum safety and health requirements for work on board fishing vessels (thirteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC).

Although not specific to transport workers, some recent updates are worth mentioning, including Directive 2007/30/EC amending Council Directive 89/391/EEC, its individual

171 Ibidem. 172 EU road freight transport sector: Work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004. 173 Eurostat collects on a regular basis statistical data on public health and health and safety at work from the Member States which provide such data on a voluntary basis (see next section). 124 Social and working conditions in the transport sector of the European Union ______

Directives and Council Directives 83/477/EEC, 91/383/EEC, 92/29/EEC and 94/33/EC, which introduced new rules with a view to simplifying and rationalising the reports on the implementation of the Community rules on the safety and health of workers provided for by the aforementioned Directives.

3.6.1. Overview of health and safety statistics in the transport sector

Data presented in this section refer to the Eurostat Health and safety at work statistics. Figure 3-19 shows incidence rates of fatal accidents at work by selected economic activities in EU-15. In the framework of the European Statistics on Accidents at Work (ESAW), an accident at work is a discrete occurrence in the course of work which leads to physical or mental harm. A fatal accident at work is defined as an accident which leads to the death of a victim within one year of the accident. According to the available data, from 1996 to 2006 the incidence rate decreased for all the modes of transport and all economic activities. Among the different modes of transport, air transport records the highest reduction (minus 54%) and the lowest incidence rate. However, it is also important to note that in 2006 only air transport registered an incidence of fatal accidents at work lower than in economic activities overall. Water transport, land transport and transport via pipelines registered incidence rates of fatal accidents at work considerably higher than for economic activities overall.

Figure 3-19 EU-15 incidence rate of fatal accidents at work (per 100 000 workers) by economic activity

-36% 30 26.4 1996 -20% 25 2006 20.4 20 16.3 16.8 15 -34% -54% 10 5.3 5.7 3.5 5 2.6

0 All economic activities Land transport and Water transport Air transport transport via pipelines

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009) Notes: All economic activities includes the following NACE categories: Agriculture, hunting and forestry; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication.

Figure 3-20 refers to the incidence rate of accidents at work resulting in more than three days’ absence from work (serious accidents). As for fatal accidents, from 1996 to 2006 a decline occurred for all the economic activities considered. Compared to the economic sectors as a whole, all the modes of transport record higher incidence rates and minor percentage decreases in the period in question.

125 Policy Department B: Structural and Cohesion Policies ______

Figure 3-20 EU-15 incidence rate of more than three days lost through accidents at work (per 100 000 workers) by economic activity

7000 1996 -13% 6000 2006 -7% 5000 -29% -3% 4000

3000

2000

1000

0 All economic Land transport and Water transport Air transport activities transport via pipelines

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009). Notes: All economic activities includes the following NACE categories: Agriculture, hunting and forestry; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication.

Figure 3-21 analyses the incidence rate of fatal accidents by classes of age. In each class, the transport rates are far above the average rates for total economic activities; the ‘between 25 and 34 years’ age class records the highest gap (66%) between transport and total economic activities. For the transport sector, it is interesting to note the exceptional incidence rate peak observed for the ’65 years and over’ age class. This issue should be further investigated. It would be interesting to understand in which transport sectors these fatal accidents mainly occur and in which circumstances, in order to propose corrective measures.

126 Social and working conditions in the transport sector of the European Union ______

Figure 3-21 EU-15 incidence rate of fatal accidents (per 100 000 workers) by economic activity and age classes, 2006

30

25 24

20

15 11.3 11.2

10 8.3 6.4 5.8 5.4 4.4 4.2 5 3.0 2.5 2.2 2.2 1.3

0 Less than Be tw e e n 18 Be tw e e n 25 Be tw e e n 35 Be tw e e n 45 Be tw e e n 55 65 years 18 years and 24 and 34 and 44 and 54 and 64 and over years years years years years

Transport, storage and communication All economic activities

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009). Notes: Less than 18 years class data for Transport, storage and communication is estimated. All economic activities includes the following NACE categories: Agriculture, hunting and forestry; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication.

When looking at the rates of serious accidents (Figure 3-22), the transport sector shows the highest value in the ‘between 18 and 24 years’ age class. Compared to fatal accident rates, for serious accidents the gaps between transport and total economic activities are minor (up to 28% in the ‘between 25 and 34 years’ age class).

127 Policy Department B: Structural and Cohesion Policies ______

Figure 3-22 EU-15 incidence rate of more than three days lost through accidents (per 100 000 workers) by economic activity and age class, 2006

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

0 Less than Be tw e e n Be tw e e n Be tw e e n Be tw e e n Be tw e e n 65 years 18 years 18 and 24 25 and 34 35 and 44 45 and 54 55 and 64 and over years years years years years

Transport, storage and communication All economic activities

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009) Notes: All economic activities includes the following NACE categories: Agriculture, hunting and forestry; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication.

Figure 3-23 compares incidence rates by disease categories in the transport, manufacturing and all economic sectors (all NACE branches174). An occupational disease is a case of disease recognised by the national authorities as being caused by a factor at work. The incidence rate of occupational diseases is the number of incidents of occupational diseases per 100 000 persons in employment during the reference year175.

Surprisingly, as shown in Figure 3-23, incidence rates of all diseases are far lower in the transport, storage and communication sector than in the manufacturing and all economic sectors overall. However, it should be pointed out that these figures refer not only to the transport sector but also to the storage and communications sectors: hence, in order to draw more accurate conclusions it would be useful to have a new set of data referring to each transport mode.

174 NACE (Nomenclature statistique des activités économiques dans la Communauté européenne). 175 The harmonised data on occupational diseases are collected in the framework of the European Occupational Diseases Statistics (EODS), on the basis of a methodology developed in 1997. 128 Social and working conditions in the transport sector of the European Union ______

Figure 3-23 EA incidence rate of occupational diseases (per 100 000 workers) by economic activity and disease, 2005

28.7 Total 78.8 165.9

11.5 Musculoskeletal 30 diseases 73.4

5.1 Diseases of sensory 10.1 organs 24.9

4.3 Neurologic diseases 16.5 32.7

3.2 Respiratory diseases 11.3 15.3

2.8 Cancers 4 6.8

1.1 Skin diseases 5.6 10.6

0.1 Infections 0.4 0.4

0 20 40 60 80 100 120 140 160 180

Manufacturing All NACE branches Transport, storage and communication

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009). Notes: EA data refer to 12 MS (Belgium, Denmark, Spain, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Sweden and United Kingdom) for the 2001 data. From 2002 onwards the data refer to the same countries, except for Ireland. ‘All NACE branches’ includes the following categories: Agriculture, hunting and forestry; Fishing; Mining and quarrying; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication; Financial intermediation; Real estate, renting and business activities; Public administration and defence; compulsory social security; Education; Health and social work; Other community, social, personal service activities; Activities of households; Extra-territorial organizations and bodies; Unknown NACE branch.

The highest incidence rates in the transport sector are observed for musculoskeletal diseases, diseases of the sensory organs, and neurological and respiratory diseases. Figure 3-24 shows the evolution over time for these disease categories. From 2001 to 2005, incidence rates increased in all four categories; the incidence of musculoskeletal diseases increased from 4.1 to 11.5 in the transport sector and from 15.2 to 30 in all the economic sectors.

Even if the incidence of occupational disease in the transport sector is far below that of all the economic sectors as a whole, it has nevertheless more than doubled in just four years. Once again, a more detailed investigation would be needed to understand the reasons behind this fact and possibly adopt corrective measures.

129 Policy Department B: Structural and Cohesion Policies ______

Figure 3-24 EA incidence rate of occupational disease (per 100 000 workers) by economic activity for selected diseases, 2001 and 2005

Musculoskeletal diseases Diseases of sensory organs 32 30 20 28 16 24 20 15.2 12 10.1 16 11.5 12 8 5.1 4.5 8 4.2 4 2.3 4 0 0 2001 2005 2001 2005 2001 2005 2001 2005

Transport, storage All NACE branches Transport, storage All NACE branches and communication and communication

Neurologic diseases Respiratory diseases 20 20 16.5 16 16 11.3 12 12 8.5 7.7 8 8 4.3 3.2 4 1.9 4 1.5

0 0 2001 2005 2001 2005 2001 2005 2001 2005

Transport, storage All NACE branches Transport, storage All NACE branches and communication and communication

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009). Notes: Infections data for Transport, storage and communication is estimated. EA data refer to 12 MS (Belgium, Denmark, Spain, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Sweden and United Kingdom) for the 2001 data. From 2002 onwards the data refer to the same countries, except for Ireland. ‘All NACE branches’ includes the following categories: Agriculture, hunting and forestry; Fishing; Mining and quarrying; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication; Financial intermediation; Real estate, renting and business activities; Public administration and defence; compulsory social security; Education; Health and social work; Other community, social, personal service activities; Activities of households; Extra-territorial organisations and bodies; Unknown NACE branch.

Figure 3-25 analyses the incidence rate of occupational diseases by classes of age in 2005. According to the available data, rates in the total economic activities sector are far above rates in the transport sector, especially in the ‘between 55 and 64 years’ age class. Only the ‘less than 18 years’ age class reveals an inverse trend, with an incidence rate of 26.2 in the transport sector against an 11.2 rate in ‘all NACE branches’.

130 Social and working conditions in the transport sector of the European Union ______

Figure 3-25 EA incidence rate of occupational diseases (per 100 000 workers) by economic activity and age classes, 2005

160 142.9 140

120

97.6 100 78.8 80 64.1 57.1 60 45.2 40 32.6 28.7 26.5 29.4 22.9 20 11.2 14.5 5.7 0 Total Less than 18 Betw een 18 Betw een 25 Betw een 35 Betw een 45 Betw een 55 years and 24 years and 34 years and 44 years and 54 years and 64 years

Transport, storage and communication All NACE branches

Source: Elaborations on Eurostat - Health and safety at work statistics (May 2009). Notes: Less than 18 years class data for Transport, storage and communication is estimated. EA data refer to 12 MS (Belgium, Denmark, Spain, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Sweden and United Kingdom) for the 2001 data. From 2002 onwards the data refer to the same countries, except for Ireland. ‘All NACE branches’ includes the following categories: Agriculture, hunting and forestry; Fishing; Mining and quarrying; Manufacturing; Electricity, gas and water supply; Construction; Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; Hotels and restaurants; Transport, storage and communication; Financial intermediation; Real estate, renting and business activities; Public administration and defence; compulsory social security; Education; Health and social work; Other community, social, personal service activities; Activities of households; Extra-territorial organisations and bodies; Unknown NACE branch.

3.6.2. Road transport

The road transport sector is at risk in terms of ambient conditions (noise, vapours, danger, vibrations, high/low temperatures and radiation), ergonomic conditions, non-standard working hours and long working hours, as well as organisational risks such as heavy job demands, lack of control and inability to develop skills at work. The unfavourable position on ‘discrimination’ means that workers in the road transport sector can be affected by physical violence, harassment and discrimination from colleagues and the public/passengers. The most significant hazardous conditions for the sector are shown in Table 3-13.

131 Policy Department B: Structural and Cohesion Policies ______

Table 3-13 - Main health and safety risks in road transport

Type of activity Hazardous conditions

- Increased risk of road accidents due to lengthy driving periods (esp. for long-haul truck drivers), incl. at night, in bad weather and road conditions, and through traffic jams (risk is increased by fatigue due to long driving hours, short rest periods, drowsiness, hunger and thirst, consumption of alcohol, driving at high speeds due to the bonus wages system); - ergonomic hazards (back and other injuries caused by lifting excessive weights or using the wrong lifting technique); truck drivers especially may suffer from back, leg, arm and hand pains, caused by uncomfortable sitting for long periods and vehicle vibrations176 ; - pains in the lower back and in the joints (of legs and hands/arms) caused by prolonged driving, sometimes over bumpy roads, and/or inadequate seats; overexertion while moving or otherwise handling bulky and heavy loads, equipment, etc; digestive tract disorders caused by irregular eating, bad dietary habits and stress; hypnotic hallucinations during periods of drowsiness, and psychic disorders Truck and bus caused by mental and emotional stress factors; visual discomfort and drivers eye problems caused by inadequate illumination and eyestrain (esp. when driving in the dark on interurban roads)177; - industrial hearing loss caused by long-term exposure to loud engine noises; - exposure to chemical, radioactive or biological hazards associated with their load (truck drivers); - skin diseases/conditions (dermatitis, skin sensitisation, eczema, etc.) caused by chemicals: cleaning compounds, antifreeze and brake fluids, petrol, diesel oil, oils, etc178; - working excessive hours without adequate rest; psychological and physiological stress and fatigue caused by adverse traffic conditions; - poor road surfaces, bad weather, night driving, infectious diseases of passengers (bus drivers)179; - exposure to peer violence (e.g., in roadside cafeterias, etc.) and to petty and gang (incl. organised) crime attracted by valuable cargo (as regards crime risks, see also further ahead in the text).

Source: ILO, Safe-work bookshelf, 2007.

Furthermore, research in the UK suggested that because of driver lifestyles, heavy goods vehicle (HGV) licence holders are susceptible to a higher prevalence of obstructive sleep apnoea180 (OSA), a breathing disorder that causes temporary closing of the airways and a cessation of breathing during sleep – often hundreds of times a night. Sufferers are often unaware of the condition and its night-time effects but may experience extreme daytime fatigue and impaired function.

Safety risks for truck drivers also include road freight related crimes. Aggression against drivers is emerging as a growing problem in some countries181. The Eurofound study reported the example of Luxembourg, where a significant increase in aggression against

176 ILO, International Occupational Safety and Health Information Centre (CIS), International Hazard Datasheets on Occupation, 2008. 177 Ibidem. 178 Ibidem. 179 See also the ILO Guidelines for the transport sector on HIV/AIDS+WORK ’Using the ILO Code of Practice on HIV/AIDS and the world of work‘, December 2005. 180 For further information see the Respironics-SASA initial study outcomes: available at http://www.osaonline.com/study_outcome.asp 181 Impact of the working time directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007. 132 Social and working conditions in the transport sector of the European Union ______bus drivers has been reported in recent years. In Belgium, in July 2006, a collective agreement was concluded, providing for psychological counselling services for truck drivers who have been the victims of violence or theft182. Unfortunately, there are few figures on driver and cargo related crimes (except those concerning the theft of vehicles), and they are apparently very difficult to derive from the available crime statistics183.

3.6.3. Railway transport

The development of railways into a more dynamic industry, with more innovation, more operators including new entrants, and a wider range of suppliers, makes safety regulation even more important, to ensure safety. In the following table, the main hazardous conditions associated with the railway transport sector are listed.

Table 3-14 - Main health and safety risks in railway transport

Type of activity Hazardous conditions

- Exhaust emissions; - Noise; Whole-body vibration; Administration and train - Electromagnetic fields; operations - Radio-frequency fields; - Shift work; - Musculoskeletal injury; - Rundown accidents. - Skin contamination with waste oils and lubricants; - Exhaust emissions; - Welding emissions; - Brazing emissions; - Thermal decomposition products from coatings; - Cargo residues; Maintenance of rolling - Abrasive blasting dust; stock and track - Solvent vapours; equipment - Paint aerosols; - Confined spaces; - Noise; - Hand-arm vibration; - Electromagnetic fields; - Shift work; - Musculoskeletal injury; - Rundown accidents. - Exhaust emissions; - Ballast dust/spilled cargo; - Welding, cutting and grinding emissions; - Abrasive blasting dust; - Solvent vapours; Maintenance of track - Paint aerosols; and right of way - Confined spaces; - Noise; Whole-body vibration; - Hand-arm vibration; - Electromagnetic fields; - Radio-frequency fields; - Shift work; Musculoskeletal injury; Rundown accidents.

Source: ILO, Safe work bookshelf, 2007

182 Ibidem. 183 Study on the feasibility of organising a network of secured parking areas for road transport operators on the Trans European Road Network, NEA, January 2007. 133 Policy Department B: Structural and Cohesion Policies ______

The box below reports the results of a survey on workplace violence in the UK railways. This represents the typical risks connected with this profession.

Box 8 – Health and safety in railway transport: Workplace Violence Survey in the UK

In 2006, RMT conducted a questionnaire on workplace violence, from which it appeared that 71% of respondents were working alone when assaulted. Almost two thirds of the assaults were over ticket or fare disputes. Several interviewees felt that they were left to put into practice some particularly ‘difficult corporate policies drawn up by managers in offices who would never have to deal with the frustration of passengers’. Drugs and alcohol as sole reasons for assault were cited in 27% of cases, which is lower than was previously thought. According to the survey, 40% of incidents reported to the British Transport Police brought no response from them. The lack of response led to a general feeling of resignation among transport staff (more than a third of all incidents are not even reported). However, 51% of the incident reports had successful results with convictions ranging from fixed penalty notices to custodial sentences. As a result of the attacks, around 30% of respondents took time off work and out of these, 60% took more than three days off. The Department for Transport claims that the average cost of an assault on railways staff is £1040.

3.6.4. Air transport

According to the Ecorys study on social development in air transport184, the amount of operational pressure that air transport employees have to work under has increased. For flight and cabin crew, the increase in operational pressure seems to result from tighter scheduling of flights, an increase in the responsibilities of the crew, and an increase in duties to be carried out between shifts. The flexibility of employment contracts and the increased importance of variable wage components also contribute to the operational pressure felt by individual crew members. For air traffic controllers and ground handling staff not many changes seem to have occurred; duty hours are also one of the – few – areas in working conditions where some employers recognise an increase. For flight crew the rest time between shifts appears to have changed far more than rest time during shifts; for them this constitutes the second main change in the past ten years, after the increase in operational pressure.

The most significant risks in the air transport sector are shown in Table 3-15.

184 Social developments in the EU air transport sector, Ecorys, December 2007. 134 Social and working conditions in the transport sector of the European Union ______

Table 3-15 - Main health and safety risks in the aviation sector

Type of activity Hazardous conditions

- Noise exposure; Airways facilities - Working on or near live electrical parts including exposure to high maintenance voltage, fall hazards while working on elevated radar towers or using personnel climbing poles and ladders to access towers and radio antennae; - PCB exposure when handling older capacitors and working on utility transformers; microwave and radio-frequency exposure. Air traffic controllers and - Visual problems; stress; ergonomic issues while working at the flight services consoles. personnel - Poor cabin air quality; - Aircraft noise; - Radiation exposure; - Ergonomic problems (work for many hours in a sitting but unsettled Flight crew position and in a very limited working area); - Flight fatigue and recovery185; - Psychological stress; - Exposure to a large number of people in a confined space.

Source: ILO, Safe-work bookshelf, 2007.

In the aviation sector, the following legislation protects employees from occupational safety and health risks:

- Council Directive 2000/79/EC of 27 November 2000 concerning the European Agreement on the Organisation of Working Time of Mobile Workers in Civil Aviation concluded by AEA, ETF, ECA, ERA and IACA. The Council Directive provides for: . at least four weeks’ paid annual leave and specific health and safety measures appropriate to the nature of the work. This leave may not be replaced by an allowance in lieu, except where the employment relationship is terminated; . a free health assessment before employees are assigned and thereafter at regular intervals, subject to medical confidentiality requirements; . an obligation on the employer to adapt the pace of the work to the worker and to inform the competent authorities of this if required; . health and safety protection appropriate to the nature of the work, including appropriate services and means of prevention and protection; . a maximum annual working time of 2000 hours, with the total flight time limited to 900 hours, spread as evenly as practicable throughout the year; . a certain number of days free of all service (7 days per month and at least 96 days per year).

- Regulation 1899/200611 launched new harmonised safety standards at EU level.

185 This issue covers the broad spectrum of activity encompassing crew scheduling practices-length of duty periods, amount of flight time (daily, monthly and yearly), reserve or standby duty periods and availability of time for rest both while on flight assignment and at domicile (source: ILO, Safe-work bookshelf, 2007).

135 Policy Department B: Structural and Cohesion Policies ______

- Standards for European civil aviation. With the regulation JAR OPS 1186 the standards agreed by the Joint Aviation Authorities (JAA) were translated into uniform EU legislation applicable in all MS. The so-called EU-OPS laid down in the regulation187 fulfils a safety goal, but also includes minimum standards for the duration of flights and shifts, as well as rest periods for flight and cabin crew. One of the outstanding issues of EU-OPS is common safety and training requirements for cabin crew. EU-OPS 1 entered into force on 16 January 2007 and applies from 16 July 2008. On that date, all aeroplanes operating for the purpose of commercial air transportation must comply with the requirements of EU-OPS. EU-OPS contains several requirements which affect cabin crew but which are not contained in JAR- OPS 1. In order to meet the requirements of EU-OPS, operators should satisfy themselves that each cabin crewmember has successfully completed all elements of initial safety training in accordance with OPS 1.1005. In addition, operators should ensure that each cabin crew member has successfully passed all the checks required by OPS 1.1025, including that for initial safety training. Currently, it is the responsibility of the operator to approve any cabin crew training organisation they may choose to use. Such training organisations may provide certain elements of initial training on behalf of the operator, but the operator remains responsible for delivering the attestation. Operators retain responsibility for maintaining training records for each cabin crew member188.

3.6.5. Maritime and inland waterway transport

Working at sea is considered among the toughest of professions189; therefore it is important to improve the safety and training of ships’ crews and ensure that they have good living and working conditions. Most Community texts relating to health and safety issues and to the prevention of accidents at work on a broad basis are also applicable to workers at sea. Moreover, in the mid-1990s, specific Community legislation was introduced relating to the working hours of sailors and the levels of safety training they receive and is supposed to be enforced by port state authorities190.

The main health and safety risks in the maritime and inland waterways sector are shown in Table 3-16.

186 JAR-OPS 1 is the Joint Aviation Requirement for the operation of commercial air transport (aeroplanes). Any commercial airline within the European Union flying jet or propeller aircraft has to comply with this standard. Compliance is governed through the issuance of an Air Operator Certificate (AOC) and an Operator's Licence (OL). EU-OPS 1 refers to EU regulations specifying minimum safety and related procedures for commercial passenger and cargo fixed-wing aviation. The legislation is known officially as ’Council Regulation (EEC) No 3922/91 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation‘, modified by Regulation (EC) No 1899/2006 (see following footnote). OPS Part 1 prescribes requirements applicable to the operation of any civil aeroplane for the purpose of commercial air transportation by any operator whose principal place of business and, if any, registered office is in a Member State, hereafter called operator. 187 Regulation (EC) No 1899/2006 of the European Parliament and of the Council of 12 December 2006 amending Council Regulation (EEC) No 3922/91 on the harmonisation of technical requirements and administrative procedures in the field of civil aviation (Text with EEA relevance). The Commission amended Reg. 3922/91 to add a new Annex III (EU-OPS 1). 188 Civil Aviation Authority, Safety regulation group, Communication 09/2008 (March 2008). 189 Maritime transport policy - Improving the competitiveness, safety and security of European shipping, European Commission’s Directorate-General for Energy and Transport, 2006. 190 Ibidem. 136 Social and working conditions in the transport sector of the European Union ______

Table 3-16 - Main health and safety risks in the maritime and inland waterways sector

Type of activity Hazardous conditions - Unguarded or exposed moving objects or their parts, which strike, pinch, crush or entangle; - Objects can be mechanised (e.g. fork-lift) or simple (hinged door); - Static (e.g. batteries) or active (e.g. generators) sources of electricity, their distribution system (e.g. wiring) and powered devices (e.g. motors), all of which can cause direct electrical- induced physical injury; Maritime and - Adverse auditory and other physiological problems due to inland waterways excessive and prolonged sound energy; operations - Slips, trips and falls resulting in kinetic-energy-induced injuries; - Acute and chronic disease or injury resulting from exposure to organic or inorganic chemicals and heavy metals; - Disease related to unsafe water, poor food practices or improper waste disposal; - Disease or illness caused by exposure to living organisms or their products; Injury due to non-ionising radiation.

Source: ILO, Safe work bookshelf, 2007

According to several Scandinavian studies, seafaring is characterised by a high mortality rate, particularly among unskilled and semi-skilled ratings on deck and in the engine room191. In the International Journal of Epidemiology articles, the excess of mortality among Danish seafarers could be explained by diseases like lung cancer and cirrhosis of the liver – both related to lifestyle – and accidents192.

In sea transport, the ILO has established a number of conventions and recommendations relating to shipboard work, such as the Prevention of Accidents (Seafarers) Convention 1970 (No 134) and Recommendation 1970 (No 142), the Merchant Shipping (Minimum Standards) Convention 1976 (No 147), the Merchant Shipping (Improvement of Standards) Recommendation 1976 (No 155), and the Health Protection and Medical Care (Seafarers) Convention 1987 (No 164). The ILO has also published a Code of practice for accident prevention on board ship at sea and in port, the provisions of which should be considered as the basic minimum requirements for protecting seafarers' safety and health193.

Some recent major achievements in the field of social conditions of maritime workers were accomplished through the ILO MLC adopted on 23 February 2006, which incorporates the conventions and recommendations on maritime labour adopted by the ILO since 1919 into a single consolidated text to serve as a basis for the first universal Maritime Labour Code.

The Council adopted a Decision on 7 July 2007 authorising MS to ratify the ILO MCL 2006 in the interests of the European Community, preferably before 31 December 2010194. The social partners decided to engage in negotiations and signed a joint agreement concerning the MLC. The EC Proposal for a Directive implementing the Agreement concluded by ECSA and ETF on the MLC 2006 and amending Directive 1999/63/EC responds to the request by the social partners. The Directive provides for minimum requirements, leaving the MS free

191 ‘Influence of Occupational Accidents and Deaths Related to Lifestyle on Mortality among Merchant Seafarers’, International Journal of Epidemiology, Vol. 25, No. 6, Great Britain, 1996. 192 Ibidem. 193 Accident prevention on board ship at sea and in port (2nd edition). Code of practice, International Labour Organization, 1996. 194 2007/431/EC: Council Decision of 7 June 2007 authorising Member States to ratify, in the interests of the European Community, the Maritime Labour Convention, 2006, of the International Labour Organisation. 137 Policy Department B: Structural and Cohesion Policies ______to adopt measures which are more favourable to workers in the area concerned. Its aim is to explicitly guarantee the levels of protection of workers already achieved and ensure that only the more favourable standards of occupational protection apply. In the same context, the aim of the proposal is also to ensure that the general principle of the responsibility of the employer, as provided for in Article 5 of the Framework Directive 89/391/EEC, is not affected by the Agreement, which allows for limitations of the shipowner's responsibility in certain circumstances. The Directive also establishes that the social partners agreement shall not enter into force before the Maritime Labour Convention 2006 enters into force195.

The great majority of Community provisions in the field of health and safety of workers at work adopted under Article 137 EC apply in full to the area covered by the EC’s proposal and in particular the provisions of:

- Council Directive 2000/54/EC on the protection of workers from risks related to exposure to biological agents at work;

- Council Directive 2000/39/EC establishing a first list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC on the protection of the health and safety of workers from the risks related to chemical agents at work;

- Council Directive 99/92/ on minimum requirements for improving the safety and health protection of workers potentially at risk from explosive atmospheres;

- Council Directive 93/103/EC of 23 November 1993 concerning the minimum safety and health requirements for work on board fishing vessels (thirteenth individual Directive within the meaning of Article 16 (1) of Directive 89/391/EEC);

- Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage improvements in the safety and health of workers at work and of its individual Directives, within the meaning of Article 16(1) of that Directive;

- Council Directive 92/29/EEC of 31 March 1992 on the minimum safety and health requirements for improved medical treatment on board vessels;

- Council Directive 83/477/EEC of 19 September 1983 on the protection of workers from the risks related to exposure to asbestos at work as modified by Directives 91/382/EEC and 2003/18/EC.

In the inland waterways sector, the following legislation protects the health and safety of workers:

- European Agreement Concerning the International Carriage of Dangerous Goods by Inland Waterway (ADN), entered into force on 29 February 2008, and amendments adopted for entry into force on 1 January 2009.

3.6.6. Key findings - health and safety at work

The data analysis on health and safety at work in the transport sector reveals the following. - Incidence rates of both fatal accidents and serious accidents are higher in the transport sector than in the economic sectors as a whole.

195 COM(2008) 422 final: Proposal for a Council Directive implementing the Agreement concluded by the European Community Shipowners' Associations (ECSA) and the European Transport Workers' Federation (ETF) on the Maritime Labour Convention, 2006 and amending Directive 1999/63/EC, Brussels, 2008. 138 Social and working conditions in the transport sector of the European Union ______

- Incidence rates of accidents at work decreased both in the different transport modes and in all the economic sectors over the period 1996-2006. The reduction of serious accidents was lower in the transport sector than in the economic sectors overall, by contrast the reduction of fatal accidents was higher in the transport sector than in the other sectors. - Incidence rates of fatal accidents in transport storage and communications sectors largely vary according to workers’ ages: the ’65 years and over’ age class records the highest incidence, while the age class ‘less than 18’ reports the lowest rate. By contrast serious accidents in ‘transport, storage and communication’ are more frequent among younger than among older employees. - The incidence of occupational diseases in the transport, storage and communication sector is lower than in all the other sectors as a whole, however, more detailed data would be required for a fuller understanding of whether this applies to all the different modes of transport. - ,Musculoskeletal, neurological and respiratory diseases and diseases of the sensory organs have the highest incidence rates among occupational diseases in the transport, storage and communication sector.

3.7. General quality and security of employment

It is commonly recognised that globalisation and technological progress are rapidly changing the needs of workers and enterprises196. According to the European Expert Group on Flexicurity197, four main factors can be highlighted as the reasons behind the change:

1. international economic integration (globalisation); 2. the rapid development of new technologies, particularly in the information and communication areas; 3. the demographic ageing of European societies, together with relatively low average employment rates and high long-term unemployment; and 4. the development of segmented labour markets in many countries where both relatively protected and unprotected workers coexist.

With regard to the transport sector, companies are under increasing pressure to adapt and develop their services more quickly. This is placing greater demands on transport companies to help their workers acquire new skills and on mobile workers with regard to their ability and readiness for change198. This has consequently resulted in a greater use of fixed-term and more flexible employment contracts, though to a lower extent than in other sectors.

Figure 3-26 compares the shares of non-permanent and permanent contracts in ‘land transport, water and air transport’ and in ‘all the sectors’. In land transport, which includes road transport and railways, there is a lower use of non-permanent contracts (fixed term) than in all the other sectors. In water and air transport the recourse to temporary contracts is only slightly more limited than in all the other sectors.

196 Success Story: Synergetics nv, Intalio. Available at http://www.intalio.com/customers/success-stories/success- story-synergetics-nv/. 197 European Expert Group on Flexicurity , Flexicurity Pathways Turning hurdles into stepping stones, June 2007. 198 Success Story: Synergetics nv, Intalio. Available at http://www.intalio.com/customers/success-stories/success- story-synergetics-nv/. 139 Policy Department B: Structural and Cohesion Policies ______

Figure 3-26 – EU-27 type of employment contract (2005)

100% 90% 86.2% 77.7% 76.6% 80% 70% 60% 50% 40%

30% 22.3% 23.4% 20% 13.8% 10% 0% Land Transport (road Water and air transport All sectors transport and railways and supporting activities transport) Non permanent contract Permanent contract

Source: European Foundation for the Improvement of Living and Working Conditions, Fact sheets on Land transport and on Water and air transport, 2009

Unfortunately, these data are not available separately for each transport mode; hence more accurate considerations are not possible.

As a side effect, the increasing need for flexibility has clearly affected employment security. Employment security is a complex concept that involves different dimensions. In particular, existing literature199 on the subject distinguishes between four different forms of security:

- job security – this concerns the expectation of high job tenure in relation to a specific job; - employment security – this takes into account the degree of certainty of a worker to remain at work, even if the worker does not necessarily choose the same employer; - income security – this relates to the protection of income in case of such occurrences as illness, unemployment or maternity, which can involve a break in paid work; - combination security – this is associated with the possibility for workers to combine paid work with their private life and social responsibilities, such as family duties or recreational activities.

There is no specific literature on the effects of increasing flexibility and decrease of job / employment security on transport workers. However, according to a recent survey200 regarding all the economic sectors, it seems that European citizens accept the need for adaptation and change. 76% of Europeans agree that lifetime jobs with the same employer are not common anymore. 76% of Europeans also consider that being able to change easily from one job to another is a useful asset to finding a job nowadays. 72% of people said work contracts should become more flexible to encourage job creation. Finally, 88% of citizens said that regular training improves one’s job opportunities.

199 See: Standing, G., Global labour flexibility: Seeking distributive justice, London, Macmillan Press, 1999; and Wilthagen, T., Tros, F. and van Lieshout, H., Towards ‘flexicurity’? Balancing flexibility and security in EU Member States, Paper presented at the 13th World Congress of the International Industrial Relations Association (IIRA), Berlin, September 2003. 200 European Employment and Social Policy, Special Eurobarometer 261, October 2006 cited in Towards Common Principles of Flexicurity: More and better jobs through flexibility and security, EC, July 2007. 140 Social and working conditions in the transport sector of the European Union ______

In the following sub-sections the general quality and security of employment in each transport mode is discussed. According to available data, the elements taken into consideration are:

- type of contract (permanent, fixed-term, subcontracted, full-time, part-time, etc); - access to social protection (insurance, special pension schemes); - legal status of employers.

Unfortunately, only limited data are available on this subject for the maritime and inland waterways sectors.

3.7.1. Road transport

According to a Eurofound Report201 employees in the road sector usually have a permanent contract. Generally, permanent contracts are more common in road haulage than in the national economy in general. In transport of persons, the percentage of permanent contracts is often lower than in freight transport by road.

The Study indicates that social security problems arise from competition with workers from neighbouring non-EU countries, as these agree to earn less for a comparable service. Moreover, the Study reported the cases of Austria, Germany, Luxembourg and Portugal, where employees in the sector tend to have to take more responsibility for their work, nearly the same level of responsibility as if they were self-employed. The Commission defined workers who are falsely self-employed as those who are declared as being self- employed for social security purposes, but who in fact work under the authority of a transport operator202.

201 European Foundation for the Improvement of Living and Working Conditions, EU road freight transport sector: Work and employment conditions, 2004 202 Report from the Commission to the Council and the European Parliament on the consequences of the exclusion of self-employed drivers from the scope of the Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities COM(2007)266 final. 141 Policy Department B: Structural and Cohesion Policies ______

Box 9– Social protection of road transport workers: the Austrian case study The false self-employment issue received particular public attention in Austria in early 2002203. The so-called ‘quiet partnership’ model was developed and deployed by one of Austria’s largest road haulage companies with more than 1000 trucks, more than 400 of them located in Austria. In this model, the driver (silent partner) acquires a share of the company by signing over his truck as company property. Since most drivers do not have their own truck, the owner of the company offers them rental contracts for trucks through a legally separate firm. Therefore, the truck remains the property of the company, while the truck driver officially becomes an independent entrepreneur, even if he receives the same orders from management as dependent employees do. Moreover, silent partners receive a share of the profits, leaving them with the risks, but only a small part of the gains. According to the Austrian Chamber of Labour, after deduction of taxes and social security contributions, some silent partners earned less than 56 cents per hour worked. Union representatives have also stressed that victims are not only drivers but also public health insurance and pension funds that lose contributions that would have been mandatory for regular dependent employees204. According to the national statistics provider - Statistik Austria, in 2004 6939 self-employed people were working in land transport (excluding taxi operation); only 1.5% of people in the scheduled passenger land transport sector were self-employed205. In 2004, 9,438 out of 11 446 companies (82.5%) were such micro-companies (workforce of less than 10 workers) with a total aggregate employment (including employees, self-employed people and agency workers) amounting to 26 333, among whom were 17 410 dependent employees. According to the Study, this implies that the lion’s share of the sector’s around 10 400 self-employed people are most probably solo self-employed people (individual entrepreneurs) running their businesses mainly as taxi or lorry drivers on their own account. The Study reports that an indefinite, but allegedly considerable number of illegal foreign lorry drivers are employed by Austrian transport companies, often under unsafe and precarious conditions and illegal contracts of employment (some of these workers may not be covered by official employment statistics)206.

Overall, employees have easier access to benefits than the self-employed, as the latter normally have to insure themselves, generally at a high cost207. For instance, according to the Study, in the Netherlands only half of the self-employed insure themselves for these risks.

This problem is likely to remain unless Directive 2002/15/EC is extended to self-employed drivers. As shown in section 0 the Commission has recently adopted a Directive addressing this issue: after a first reading by the European Parliament, in March 2009 the Commission was asked to modify its proposal.

In comparison with other workers, self-employed drivers currently208 report more work- related health problems, wish to work fewer extra hours and are less satisfied with the balance between work and family life209.

203 European Foundation for the Improvement of Living and Working Conditions, EU road freight transport sector: Work and employment conditions, 2004. 204 Ibidem. 205 Impact of the Working Time Directive on collective bargaining in the road transport sector - Austria, European Foundation for the Improvement of Living and Working Conditions, 2007. 206 Ibidem. 207 EU road freight transport sector: work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, consolidated report, 2004. 208 Report from the Commission to the Council and the European Parliament on the consequences of the exclusion of self-employed drivers from the scope of the Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities COM(2007)266 final. 209 Ibidem. 142 Social and working conditions in the transport sector of the European Union ______

Box 10 – Self-employment in road transport210 The proportion of self-employed drivers in the road transport sector varies significantly between countries, ranging from as high as almost 100% to as low as 1%. Countries with an high incidence of self-employment: In Malta most of the operators in the transport sector are self-employed. In Portugal, the proportion of self-employed drivers is significant, amounting to one third of all drivers. In Slovakia, the majority of people working in the road transport sector are self employed, with only around 30% of workers having employee status. In the Czech Republic, 93.8% of business entities in road transport are run by self- employed workers. In Denmark, some 8200 out of a total 58 200 workers in road transport are self employed. The proportion of self-employed workers in the Italian road transport sector is 161 854 workers compared with 372 134 employed workers. Countries with a low incidence of self-employment: In Luxembourg, according to the Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschaftsbond Lëtzebuerg, OGB-L), only 1% of drivers are really self employed. In Romania, the number of self- employed drivers is reported to be insignificant. In some countries, such as Cyprus, the proportion of self-employed drivers depends on the type of activity. In Cyprus, the largest numbers of self-employed people work in road freight transport and in private taxi transport; out of a total of 4700 employees in the sector, 2151 were working owners, 2547 were employees, and two people were family members working without pay. By occupational activity, the largest numbers of self-employed workers are concentrated in road freight transport and the transport of persons by private taxi in both rural and urban areas. The highest concentration of employees is found in the mass transport of persons by urban, interurban, rural and tourist bus, as well as by interurban taxi. In other countries, the proportion of self-employed drivers is falling. In Belgium, one-person companies account for about a third of the total number of companies. At the beginning of this decade Hungary faced the problem of ‘false self-employment’. Hundreds of people with self-employed status in the country worked as drivers of other companies’ trucks, acting as employees despite their nominal status of self-employed worker. However, this problem has now been minimised thanks to checks and controls. A similar problem arose in Luxembourg. As a result of the cases illustrated above, the EU denounced the trend towards false self- employment of drivers in the country. The European Commission is seeking to address this issue.

Employers' organisations claim that there is a shortage of truck drivers211. In fact the truck driving profession does not seem appealing since it involves long hours spent driving, little social recognition, and depending on the type of transport it might also require a high level of qualification.

According to the outcomes of a Eurofound Report212, countries like Lithuania, Finland, Belgium, UK and the Czech Republic face the problem of labour shortages in the road transport sector. In the Czech Republic, the situation is being exacerbated by the fact that some Czech drivers are moving to the UK or other countries to work. In the UK, recruitment and retention difficulties are ongoing, due to issues such as a perceived ‘long hours culture’ and a high incidence of having to work away from home.

Other aspects to be considered are the progressive restructuring of the driver's role due to the emergence of new arrangements in operations and logistics management. Drivers' tasks have been widened and diversified. Drivers often have to do work traditionally carried out by warehouse or stock personnel, and social skills are now often required in the driver's relationship with a client. The driver is increasingly the client's sole contact with the

210 Information provided in the box was extracted from: Impact of the Working Time Directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007 (All data refer to 2005 unless specified otherwise). 211 Direct interviews with IRU representative conducted for the present study. 212 Impact of the working time directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007. 143 Policy Department B: Structural and Cohesion Policies ______transport organisation. Growing international transport means that drivers must be familiar with different languages and cultures, and be skilled in communicating with different kinds of people. Workers are generally not highly educated, although drivers carrying dangerous substances have additional vocational training. Adjustments to technological and economic changes in the profession require lifelong training. Hence, additional training courses, beyond those that are absolutely necessary, could lead to a better quality of work in the sector.

3.7.2. Railway transport

The issue of security of employment in the railway sector is closely connected to the legal status of the employer. While at present the vast majority of railways undertakings are commercial firms under private law in which railways workers have the status of private- sector employees, there are two main exceptions:

- national railways that still belong to the public sector; - companies that maintain a large number of civil servants among their staff.

The process of liberalising the railways industry has increased market pressures in all countries and has influenced the quantity and quality of employment in the European railway sector as a whole (see also section 0).

Such developments have put increased pressure on the security of jobs, because, for example, many precarious jobs have emerged. As is well known, increasing overall productivity is the main objective of transport operators, another being improving the flexibility of services, but this has implications, particularly in relation to defining working time, working location and specific working tasks.

Table 3-17 shows some examples of countries where railways companies either belong to the private sector or employ civil servants. In both cases, as shown in the table, workers benefit from special status, similar or identical to public-sector employees. Generally, employees working in these companies have better employment status and conditions than those working for totally private companies.

144 Social and working conditions in the transport sector of the European Union ______

Table 3-17 – Security and quality of employment in some European railways companies

Type of Country Company railways Employment quality and security company

Employees partially benefit from public contract Austria OBB Private employment conditions

Special status deriving from the fact of belonging to a public company, e.g. protection against dismissal after Belgium SNCB-NMBS Public 5 years of work, 36-hour working week, more favourable social security schemes

DSB staff are civil servants. Their employment Denmark DSB Private conditions are regulated by legislation on public service employment and collective bargaining

Special status. Special pension system, job security France SNCF Public and career paths close to those of civil servants

Civil service officials still represent almost 20% of overall employment. They are still entitled to several Germany DB AG Private specific types of protection in the fields of job security, pay and pension provisions.

Conditions of employment are the same as those for Greece OSE group Private employees of public utilities and services.

Employment relations at MÁV, GYSEV and private companies are regulated by the Labour Code, which is applicable to the so-called competitive section of the Hungary213 MÁV and GYSEV Public economy regardless of the ownership of the undertakings. Therefore, employees of the publicly owned MÁV and GYSEV do not enjoy any special status compared to other employees. A single national collective contract for all employees working in railways (both passengers and freight – Italy214 FS group Public about 105 000 workers) has replaced (in 2004) the previous different company-based contracts.

Special status similar to those of civil servants with Luxembourg SNCFL Public particular employment and pension conditions

The collective agreement of NS-Reizigers plays a dominant role. A pay rise of 3% was concluded for 2006, plus a bonus of €300. Employees on sick leave Netherlands215 NS Public will receive 100% and 90% of their salary, respectively, in the first and second year. This is above the average agreed at national level. On 1 January 2005 This company The status of the workers is that of public company the railway sector was split into two workers rather than civil servants, with contracts was liberalised after organisations, regulated by the Workers' Statute (Estatuto de los Spain216 six decades of which will Trabajadores). Railways workers have no special monopoly by continue to be protection or security in comparison with workers of RENFE. public other public or private companies.

Source: Elaborations on ‘Industrial relations in the railways sector’, European Foundation for the Improvement of Living and Working Conditions, 2005

213 Thematic Features on industrial relations in the railway sector – Case of Hungary (2005), available at http://www.eurofound.europa.eu/eiro/2005/04/word/hu0504103t.doc. 214 CNEL website. 215 Profile of the rail transport sector in the Netherlands, European Foundation for the Improvement of Living and Working Conditions, 2006. 216 European industrial observatory on line: Thematic Features on industrial relations in the railway sector – Case of Spain, 2005. 145 Policy Department B: Structural and Cohesion Policies ______

Some examples of employment contracts and conditions applied in the railway sector in some MS are reported below in Box No 11.

Box 11 – Quality and security of employment in the railway sector in some EU countries Italy217 With regard to employment security, the ‘Autoferrotranvieri’ national agreement that was signed in December 2004 regulates the use of the new forms of employment provided for by the 2003 ‘Biagi’ labour market reform law. In the Ferrovie dello Stato (FS) group, the employers accepted trade union demands to lay down strict rules for the use of these new forms of employment and prevent the use of those not seen as consistent with the characteristics of the public transport sector. - ‘On call’ jobs may not be used and temporary agency work may be used only in exceptional cases where fixed-term contracts cannot be used instead. - Job-sharing and tele-work may be used on a voluntary basis among employees on open-ended contracts. All these forms of employment together may apply to no more than 2% of the total workforce. - Fixed-term contracts may have a minimum duration of 30 days and a maximum duration of 12 months, which may be extended for another 12 months. - The number of workers on fixed-term, part-time contracts cannot exceed 35% of employees with open-ended contracts in companies with up to 50 employees, 25% in companies with 50–500 employees and 20% in companies with more than 500 employees. Germany With regard to job security, in February 2005 a package of collective agreements was concluded at Deutsche Bahn AG (DB AG). The settlement provides for protection against dismissal for all employees with at least five years' service until the end of 2010, and lump-sum payments worth EUR 50 for each month from July 2005 until June 2007218. With regard to the quality of employment on the German railways, it must be mentioned that, since August 2002, DB AG has offered its employees the services of the European agency ‘Familienservice GmbH’, which provides employee assistance and work-life balance packages. Families and parents get support to create flexible working time arrangements; Familienservice also offers relative-care and private financing models. DB AG also includes benefits for railway trips in its employment package219. Belgium220 Société Nationale de Chemins de Fer Belges (SNCB) - Nationale Maatschappij der Belgische Spoorwegen (NMBS) workers are divided into two categories. - Statutory staff make up more than 95% of the workforce. This group has the benefit of the status of SNCB/NMBS employees. This status is of undeniable value to the employee, since he cannot be made redundant after five years of service. Furthermore, since the SNCB/NMBS has its own social security fund, the workers are given more favourable conditions than is the case in private companies in the event of illness, invalidity etc. In addition, they have the advantage of a more generous specific pension scheme. - Non-statutory staff are staff employed by the SNCB/NMBS under a classic employment contract (in accordance with the Law of 03.07.1978 relating to employment contracts) and temporary staff. According to the law, such hiring is not allowed unless it is in response to exceptional and temporary staffing needs, or for jobs requiring specialist or auxiliary skills, or for temporary replacements. Denmark221 The majority of the employees in the railway sector (about 2/3) are statutory civil servants. The remaining are contractual staff solely employed under collective agreements. Civil servants’ basic employment conditions and pension schemes are regulated by the law. Nevertheless, their working conditions and wages are subject to negotiations between the employers and trade unions. With regard to the statutory civil servants, the Act on Statutory Civil Servants prescribes that an employee who becomes unemployed should in the case of unemployment be offered an appropriate position (anywhere in Denmark) or be offered a special allowance (ordinary salary for three years).

217 Profile of the rail transport sector in Italy, European Foundation for the Improvement of Living and Working Conditions, 2006. 218 European industrial observatory on line: New agreement on job security signed for railway employees, 2005. 146 Social and working conditions in the transport sector of the European Union ______

In conclusion, even if developments in the sector have put increased pressure on the security of jobs, it seems that the widespread presence of former incumbents, together with the status of civil servants enjoyed by many railways employees, ensure relatively high job security in the sector compared to the other transport sectors.

3.7.3. Air transport

There is a range of approaches to the employment of staff in the airline sector. In some airlines, ground staff are employed directly. This is the case in many of the national carriers. In others, check-in and cargo-baggage handling positions are outsourced222.

Traditionally, air transport employees in the EU were recruited under permanent contracts and usually spent their whole career at the same company. There were exceptions like charter airlines and airport operators also hiring staff under seasonal contracts during peak summer time. Recruitment under non-permanent contracts started before 1997, giving more flexibility to employers, both in terms of the number of employees and personnel expenses. However, in 2006 the majority of workers were still working on a full-time basis and under unlimited contracts. According to Eurostat Labour Force Survey, from 1997 to 2006 part-time contracts recorded a strong growth (from 9% in 1997 to 19% in 2006), while the share of workers with a fixed-term contract increased at a much slower pace (from 9% in 1997 to 11% in 2006)223.

The Ecorys survey reports diverse trends in flight crew contracts. A number of airlines and network carriers, but also some point-to-point carriers, show no changes in their policy or even a return to permanent contract recruitment, such as in markets where demand for qualified flight crew has increased in recent years. At the same time, a small number of airlines have started working with flight crew on very short contracts (3 to 6 months) or through temporary employment agencies.

In the Ecorys survey, both employers and trade unions confirm an increase of fixed-term contracts for cabin crew from 1997 to 2007, which seems to be generated by the entry of new airlines to the market which work under more flexible terms.

Air traffic controllers are traditionally hired when they leave school, trained by the Air Navigation Service Provider (ANSP) and recruited under a full-time, unlimited-term contract; flexible contracts are not common. According to the Survey, there have not been many changes in the past ten years, apart from a slight trend towards more part-time contracts and more fixed-term contracts.

The Survey reports the perception of an increase in fixed-term and temporary contracts for ground handling staff in the past ten years224.

With regard to the national situations, it appears that the majority of employees in the airline sector work full time and with long-term contracts. At Air France-KLM group, for example, the percentage of part-time employees for the company as a whole amounted to

219 Profile of the rail transport sector in Germany, European Foundation for the Improvement of Living and Working Conditions, 2006. 220 European industrial observatory on line: Thematic Features on industrial relations in the railway sector – Case of Belgium, 2006. 221 European industrial observatory on line: Thematic Features on industrial relations in the railway sector – Case of Denmark 2005. 222 Industrial relations in the airline sector, European Foundation for the Improvement of Living and Working Conditions, 2005. 223 Social developments in the EU air transport sector, Ecorys, December 2007. 224 Ibidem. 147 Policy Department B: Structural and Cohesion Policies ______

22% in 2007. The number of employees was 110 369 in 2007, staff with a permanent contract representing 94% of overall jobs225. Full-time work is prevalent also at Lufthansa (consolidated with Swiss), where in 2008, 73.5% of the 107 800 workers were employed on a full-time226 contract.

At the Hungarian national carrier MALÉV, the vast majority of employees (84.3%) work on a full-time basis227. In Slovakia, it is reported that around 95% of employees in the sector work on full-time and open-ended contracts228. This is also the case in Austria, although part-time work is more prevalent among flight attendants and there are also some cases of fixed-term employment in small airlines, linked to seasonal business229.

Fixed-term contracts are widely used by the Greek Olympic Airlines, a practice that increases during the summer season. In Finland, it is reported to be common practice to offer cabin crew fixed-term contracts at the start of their career. In Hungary, fixed-term contracts tend to be linked to seasonal work during the summer (in connection with the increase in chartering activities)230.

Overall, there is a trend in the sector towards more flexibility in contracts, in particular for ground handling staff. For cabin crew the use of fixed-term contracts seems to have increased, partly as a result of the entry of new airlines to the market and more competition between airlines with regard to the employment of pilots231.

225 Air France-KLM group, Corporate Social Responsibility Report 2007-08. 226 Lufthansa, Annual Report 2008. 227 Malév Ltd. Annual Report 2007 228 European industrial observatory on line: Industrial relations in the airline sector, 2005 229 Ibidem. 230 Ibidem. 231 Ibidem. 148 Social and working conditions in the transport sector of the European Union ______

Box 12 – Employment contracts in the low-cost companies: some recent developments Eurofound 232 reports that many carriers have modified terms and conditions of employment for new employees, such as fixed-term contracts, operating a two-tier pay system or the practice of subcontracting. Moreover, in LCCs low fares are mainly achieved by employing fewer people on less favourable terms than the established airlines do233. In recent years, Ryanair and EasyJet have both opened multiple bases across Europe. Ryanair for example feeds its network with aircraft from London Stansted, Charleroi and other airports. Staff operating from these bases are in most cases stationed (semi-)permanently at that base234. At EasyJet, cabin crew are currently employed on a permanent contract235. According to an Ecorys study236, the establishment of multiple bases across Europe by single airlines raises questions concerning the labour laws which are applicable to staff operating from these bases (see also Box No 3). By definition, different labour laws apply in each EU Member State where bases are located. However, a law of one state could apply to certain situations arising on the territory of another state by virtue of conflicting rules of law of the latter. The issue mainly centres on the question of whether employees who are based across Europe should work under the labour laws of the Member State where the establishment through which they are engaged is located, or under the labour laws of the particular MS where the employees are based237. In 2007, EasyJet and Ryanair failed in their joint challenge to overturn a French legal requirement that the crews of aircraft based in France be subject to French labour law when operating outside the country. France's administrative court threw out the complaint and ordered both airlines to pay court costs. Although the Rome Convention permits EU-based companies to conclude contracts under any EU country's jurisdiction, in the case of employment contracts the Convention also guarantees protection under the statutory rights of the country where an employee habitually carries out his work in performance of the contract even if he is temporarily employed in another country. In practice this makes it very difficult for any international business to consolidate standardised terms and conditions under the jurisdiction of any single EU country because the convention will always provide the highest level of legal protection for mobile employees that is potentially available238.

According to the Ecorys study239, workers in the EU air transport sector feel that they are well equipped to perform their job; only 15% of employees feel the need for further training.

The basis for training of flight crew members is typically a combination of the licensing requirements and of training programmes developed by the airframe manufacturers as well as by specialised training organisations240. In 2006, the Multi-crew Pilot Licence (MPL) was introduced, aiming to qualify the holder to perform co-pilot tasks on aircraft operated with more than one pilot and to complement existing ways of qualifying as a co-pilot for multi- crew operations241. According to the Ecorys survey, both employers and trade unions perceive an increase in the skill requirements for flight crew. The increase in technological innovation and computerisation has made the job significantly more demanding. In spite of this the trade unions perceive a decrease in the number of hours of initial and professional training for flight crew in the past ten years242.

232 Industrial relations in the airline sector, European Foundation for the Improvement of Living and Working Conditions, 2005. 233 Industrial relations in the airline sector, European Foundation for the Improvement of Living and Working Conditions, 2005. 234 Social developments in the EU air transport sector, Ecorys, December 2007.. 235 See EasyJet website, available at: http://www.easyjet.com/ 236 Social developments in the EU air transport sector, Ecorys, December 2007. 237 Ibidem. 238 Reuters, UPDATE 2-Court tells EasyJet, Ryanair to use French job Law, 13 July 2007 (available at: http://www.reuters.com/article/tnBasicIndustries-SP/idUSL138248420070713). 239 Social developments in the EU air transport sector, Ecorys, December 2007 240 Restructuring of civil aviation: Consequences for management and personnel, ILO, 2001. 241 Social developments in the EU air transport sector, Ecorys, December 2007. 242 Ibidem. 149 Policy Department B: Structural and Cohesion Policies ______

Training of ground handling staff relates mainly to safety and security. Ground handling staff operating near aircraft or with machines receive at least a minimum of safety instructions. According to the Survey, trade unions consider that there has been a decline in the quality of initial training received by ground handling staff. Regarding the quality of professional training, trade unions see neither an improvement nor a decline in quality, whilst employers suggest an improvement in the quality of both initial and professional training243.

Initial training of air traffic controllers (ATCs) is mainly provided by employers or ANSP. The content of training is to a great extent laid down in regulations from national aviation authorities and also from EUROCONTROL. Employers assess that the quality of both initial and professional training has improved and the number of hours of initial and professional training has increased, while trade unions do not perceive changes in the quality of initial and professional training244.

3.7.4. Maritime transport

The exact nature of contractual relationships in maritime transport for port workers depends on the type of port and on the local regulations on employment. For example, in the UK where ports are privatised, an increase in traffic will often be handled by current levels of staffing rather than hiring new staff. Flexible employment contracts allow staff to fulfil different roles, and in some instances to work at more than one port. Such flexibility also means that new traffic may not have a major impact on the number of staff employed at the port. Therefore, new traffic should not result in new recruitment but extra hours worked by existing staff. There are also opportunities for transferring staff from other locations. Cardiff stevedores, for example, operate at ports other than Cardiff. Staffing levels in UK ports are generally kept as low as possible in order to keep costs down, so an increase in staff may not be proportionate to the increase in traffic245.

With regard to seafarers, it is widely recognised that the presentation of an accurate picture of the seafaring workforce and of its condition is rendered difficult by the specific characteristics of the industry, such as the flag and registration status, the lack of clarity over ship ownership and the lack of systematic data collection at European level. However, it seems that it is not uncommon to employ crews on short-term contracts. In addition, the cyclical and contract-driven nature of the work is seen to provide insufficient job security246, thus making this sector unattractive for young people. All these factors are likely to affect negatively the employment security and external perception of the work. Box No 13 provides an example of how these problems represent a high priority in Greece.

243 Ibidem. 244 Ibidem 245 Intermodality in freight transport: Ports and hinterland, Maritime Transport including Short Sea Shipping, Atlantic Transnational Network of Economic and Social Partners, Accessibility Working Group, April 2006. 246 Study: Employment trends in all sectors related to the sea or using sea resources. Final report for the European Commission, DG Fisheries and Maritime Affairs, Ecotec, September 2006. 150 Social and working conditions in the transport sector of the European Union ______

Box 13 – Unemployment and job insecurity among Greek seafarers247 In March 2005, the Pan-Hellenic Seafarers’ Federation (PNO) organised two 48-hour strikes in the Greek maritime sector, in support of a variety of demands related to wages, employment, social insurance and back pay owed to redundant workers. With regard to job security, combating unemployment and improving maritime workers’ social insurance protection, the PNO’s demands, apart from those expressed in the context of the strikes, can be summarised as follows: - curbing the trend for Greek ships to fly flags of convenience (FoC), which has brought about a steady decrease in jobs for Greek maritime workers, a drop in the amount of foreign exchange emanating from shipping and a weakening of the Greek Seafarers' Pension Fund finances; - upgrading main pensions and readjusting them, along with parallel increases in pensions in line with those laid down in the collective agreements; - substantially improving the healthcare services provided to maritime workers and their families; - eradicating the use of intermediaries in finding employment, particularly for maritime workers on ships sailing to overseas destinations, where a great number of maritime workers are forced to pay large amounts to such brokers in order to find work; and - prohibiting the common practice of employing retired maritime workers, which should only be allowed when there is a lack of maritime workers under retirement age.

On the employers' side, labour flexibility is a key element for shipping operating in a global competitive environment with a global labour market for seafarers248. According to an ECSA report249, the alternative approach of promoting restrictive measures in an attempt to preserve the jobs of European seafarers would have the opposite effect to that intended. It would lead to lack of competitiveness, loss of market share, a shrinking of EU fleets and, inevitably, loss of European jobs. Furthermore, in their view, European shipping companies should also continue to be able to employ residents of other MS, reflecting the cost of living and taxes in that other Member State. In their opinion, this approach guarantees that European seafarers from MS with lower costs of living are not deprived of their right to compete within the Community.

3.7.5. Inland waterway transport

Information on security of jobs in IWT is generally lacking or outdated, thus this section will mainly focus on the quality of work.

However, it is known250 that following the process of liberalisation the social condition and job security of workers in the sector were put at stake. Apparently, ship-owners in Western countries laid off national employees on high wages compared to the ones paid in the Eastern countries in order to employ ‘temporary’ crew members from Poland, the Czech Republic or south-eastern Europe251. Furthermore, these staff were paid substantially lower wages and were entitled to limited social benefits.

With concern to the quality of the work, it should be highlighted that freight transport in inland navigation is predominantly superregional and in many cases international. Beside a limited share of regular transportation, for example with containers, a large part of this transport is carried out on demand. The consequences are not only that the crews are

247 European Industrial Relations Observatory on line: Strikes held in maritime industry, 2005. 248 ECSA annual report 2006-2007, ECSA, 2007. 249 ECSA, Developing Skills and Maintaining Employment in the Maritime Industries - A Background Note, 2008, Draft Note sent in response to the survey performed for the present Study. 250 See also section 3.8.5 for a better description of this topic. 251 PINE Prospects of Inland Navigation within the enlarged Europe, Final Concise Report. March 2004. 151 Policy Department B: Structural and Cohesion Policies ______permanently away from home on business, but furthermore they are usually only able to plan their leisure time252 in the short term.

Because of this and in the context of frequently long working hours for people employed in this field of inland navigation, a private life comparable to that which is open to persons employed in other professions is not possible or only in a reduced manner. Thus, these conditions represent substantial disadvantages of the profession compared with other competing professions.

3.8. Consequences of liberalisation of the transport sector for working conditions

EU legislation requiring and/or accelerating liberalisation of the transport market has led not only to a broad reorganisation of the transport sector but also to a consolidation process or mergers. Since the 1980s, the transport sector has experienced an unprecedented restructuring driven by market liberalisation, commercialisation (EU-driven) and privatisation initiatives (mainly national decisions). Restructuring involved rapid internationalisation, driven mainly by (cross-border) mergers and acquisitions, bankruptcies, emerging conglomerate suppliers (multi-market) and private-sector growth at the expense of public-sector suppliers.

According to the Commission, the internal market as a whole and liberalisation of particular sectors such as transport, energy, postal services and telecommunications has allowed European consumers to benefit from lower prices and new services, which are generally more efficient and consumer-friendly. Also in the Commission's view, this has created more jobs and increased prosperity in the EU and, as a result, made the European economy more competitive253. With regard to the restructuring of enterprises, the Commission recognises that it is often perceived as a negative phenomenon with negative effects on employment or working conditions. However, from its point of view, restructuring is often necessary for the survival and development of enterprises. Therefore, the Commission highlights the importance of ensuring that restructuring is managed in such a way as to meet not only economic but also social requirements. As workers do not automatically move from one sector to another and new jobs are not necessarily taken up by the people affected by restructuring, it is necessary that restructuring is part of a long-term vision of the development and direction of the European economy in order to ensure that the changes help to increase the competitiveness of the EU. On the other hand, the effects on employment and working conditions should be as short-lived and limited as possible254.

3.8.1. Road transport

The completion of the European internal market in 1992 and also the dynamics of globalisation and the development of IT initiated considerable restructuring in the road freight transport sector255. The former intra-EU freight transport, which was traditionally a fragmented market and characterised by small and medium-sized companies, began to be opened up to competition. In 1998, the transport market for both goods and passenger

252 Ibidem. 253 DG Competition website (2006). 254 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, 31/03/2005. 255 Unless otherwise indicated, the information provided in this section was extracted mainly from Restructuring and Developments in the Transport Sector - Background paper, ETF with the support of the European Commission, October 2007. 152 Social and working conditions in the transport sector of the European Union ______carriage was fully liberalised256, and thus transport operators based in the EU could supply transport services between any MS257.

As a consequence of liberalisation a gradual shift in activities has been happening from those companies which are exclusively dedicated to transporting, towards those which also organise freight transport and thus the whole supply chain related to transport. Those logistics companies aim to manage the flow of goods, to respond as quickly as possible to just-in-time demands, to guarantee door-to-door delivery and to reduce inventory costs, using minimal stocks. Further, a trend towards mergers and concentration of large companies with other large companies has been observed. As a result, an increasing number of mega-logistic providers are managing and controlling the transport and related services market while micro and medium-sized companies are working as subcontractors for them.

Liberalisation and EU enlargement has allowed companies to make increasing use of cheap labour from Eastern Europe through cabotage services, as well as by establishing subsidiaries in Eastern Europe. As a result high pressure is created on the transport workers of both Western and Eastern Europe (see Box No 14).

An additional problem is the increase in the number of drivers with self-employed status, who do not comply with the same obligations as employed drivers and further undermine positive developments258. As a result, the sector has a low level of job satisfaction and a high turnover of workers, which has led to a shortage of experienced drivers, as well as to problems of recruitment.

Hence this process has in certain circumstances resulted in negative consequences for the living and working conditions of international road transport drivers. However, the increase in international trade, which has stimulated the sector, has created additional employment in the sector and related sectors such as warehousing.

256 Council Regulation (EEC) No 3118/93 of 25 October 1993 lays down the rules for inland cabotage. It consolidates the internal market for the transport of goods by road by removing restrictions on carriers in the European Union (EU). The cabotage regime has applied fully since 30 June 1998. It was phased in over the period 1 January 1994 to 30 June 1998. 257 Further liberalisation in passenger and freight road transport is expected to enter into force soon. The new Regulation on Common rules for access to the market for coach and bus services (amending Regulations (EEC) No 92/684 and (EC) No 98/12) was modified by the European Parliament at second reading on 23 April 2009. Similarly, the new Regulation on Access to the market in the carriage of goods by road to or from the territory of a Member State or passing across the territory of one or more Member States (repeal of Regulation (EEC) No 92/881 and Directive 2006/94/EC) was most recently modified by the European Parliament at second reading on the same day. 258 At the time of writing the problem is under discussion within the European Commission and European Parliament (cf. section 0) 153 Policy Department B: Structural and Cohesion Policies ______

Box 14 - Social dumping in road transport259 As a result of liberalisation, in the early 2000s Eastern European carriers were increasingly penetrating the Western European market. According to the German Federal Office for Freight Transport (BAG), for example, in that time frame some 1200 vehicles from various Central and Eastern European countries conducted most of their haulage operations within the internal market of the European Community (at that time EU-15). In that period the main distinguishing feature of these carriers’ operations and that of the other operations was that they legally or illegally could exploit the fact that low wage and welfare costs for drivers from non-EU-15 countries gave such carriers a competitive edge over EU-15-based companies, which were bound by collective agreements, when it came to transporting goods within the European Union. With the enlargement of the European Union in 2004 and 2007, Eastern European carriers have partially lost this competitive advantage, however the problem still subsists. Some of these Eastern European companies were subsidiaries or branches of haulage undertakings based in EU-15 countries, which created or acquired them. Their drivers worked for EU-15-based enterprises, often on the basis of labour-hiring arrangements which were already envisaged at the time when the non-EU-15 company was acquired. In fact, the companies based outside the territory of EU-15 were centrally controlled by their EU-15 parent companies. In other cases, the administrative seat of the undertaking was actually relocated to a non EU-15 Member State in order to make surveillance of company activities more difficult. In Austria, for example, some enterprises concluded bogus contracts with foreign companies to enable drivers from outside the EU to drive Austrian-registered vehicles ‘for the foreign company’. The fictitious establishment of company headquarters was also a familiar practice in Italy and Luxembourg. In this case, enterprises sought to take advantage of the lower welfare charges that were levied on employers in those countries. In a case reported in the Netherlands in 2000, a company owner was charged with having employed 28 Polish drivers illegally, i.e. without proper employment contracts; these drivers allegedly worked for the Polish ‘subsidiary’ of the company, which was actually a mere letterbox company (report in Le Lloyd of 7 December 2000). In many other cases these companies were German with offices in Belarus, Bulgaria, France, Austria or the Netherlands. The drivers were often Turkish, Belarusian or Bulgarian nationals. This practice is known as the ‘Willi Betz phenomenon’ and is generally conducted within the bounds of the law260. The observation of current trends in road transport indicates that the problem is still unsolved, although a legislative process is under way, and this is also confirmed by a recent joint opinion of social partners on this topic (i.e. the joint opinions of IRU and ETF on third-country drivers of EU vehicles engaged in intra-Community road transport and on illegal employment in the road transport industry, issued in 2007).

3.8.2. Railway transport

EU legislation has been one of the driving forces for restructuring in the railway sector since the beginning of the 1990s. More recently, the first two Railways Packages from 2001 and 2004 determined the complete institutional restructuring of the sector, and the restructuring of the incumbent companies themselves261. The resultant gradual liberalisation of the railways freight market is now the driving force behind the restructuring of the railways market itself, but is far from being completed yet.

259 Unless otherwise indicated information provided in this box was extracted from: European Parliament - Directorate-General for Research - Division for Agriculture, Regional Policy, Transport and Development, The effects on the road haulage business of social dumping by operators from third countries, 2001. 260 On 25 February 2008 Thomas Betz, CEO of German haulage giant Willi Betz, was sentenced to five years' imprisonment after a regional court considered the company's ongoing legal dispute. Some of the charges concerned bribes totalling millions of euros alleged to have been paid to officials from various Eastern European countries in order to acquire licences for branch offices in their countries. In particular, prosecutors accused Thomas Betz of paying €4.5m for permits in Georgia and Azerbaijan between 1998 and 2003, which resulted in a massive €183m boost to its gross profit. (http://www.roadtransport.com/Articles/2008/02/25/129959/willi- betz-ceo-set-for-five-years-in-prison.html). 261 Eurofound – European Monitoring Centre in Change: Employment, Industrial relations and working conditions in the European rail transport sector, 2006. 154 Social and working conditions in the transport sector of the European Union ______

As reported by Eurofound-EMCC262, the key changes include the break-up of the former state-owned, quasi-monopolies into different companies, both in the former EU-15 countries and in many of the NMS. This has led to the separation of passenger and freight transport service provision from infrastructure management and to a greater focus on core activities, with outsourcing of non-core activities. Another key development has been the opening-up of markets to new entrants. As a result of these developments, the railway transport sector has become much more heterogeneous in all MS. Box No 15 provides some examples of restructuring in the sector as a result of liberalisation.

Box 15 – Incumbents and entrants in the railway sector in some European countries263

Austria Incumbent: Austrian Federal Railways (Österreichische Bundesbahnen, ÖBB) The Federal Railways Act 2003 (Bundesbahngesetz , BBG) came into force on 1 January 2004 and transformed the government-owned ÖBB into a holding company heading up several legal entities specialising in services, passenger transport, railways cargo and infrastructure. The ÖBB Holding AG was set up on 20 April 2004 and is only responsible for the strategic orientation of the group, as it does not carry out any operative tasks. The separate Track Financing Company (Schienenfinanzierungsgesellschaft, SCHIG), which finances railways construction and maintenance by charging a fee for using the tracks, is integrated into the group. Contrary to employees of the small, private railways companies, who are employed on the basis of normal private-law regulations, the employees of the ÖBB are workers with particular protection. In recent years, the legal status of railways workers has been under debate and their employment regulations have been altered. Entrants: Many railways companies and firms operating in related fields are private enterprises now. Belgium Incumbent: Belgian National Railways (Société Nationale des Chemins de Fer Belges/Nationale Maatschappij der Belgische Spoorwegen, SNCB/NMBS) Since 1 January 2005, the SNCB/NMBS has been divided into three distinct public enterprises: SNCB-Holding, which owns Infrabel, the infrastructure manager, which is responsible for managing and developing the Belgian public railways network; and SNCB-Opérateur, the railways operator, which is responsible for the transport of domestic and international passengers and freight. SNCB- Holding employs all workers, who are then posted to Infrabel or SNCB-Opérateur, thereby ensuring the single status of all group employees. The government owns 99.9% of SNCB-Holding, while the latter owns 100% of SNCB-Opérateur and 50% plus one share of Infrabel (with only 20% of the voting rights). The rest of Infrabel is owned by the government. Entrants: The freight company Dillen & Le Jeune Cargo (D&L Cargo) has operated on the Belgian network since 2002. In addition, other private operators (SC Intercontainer-Interfrigo; SA CMI Traction; SA Trainsport) have been awarded a railways licence by the Ministry of Transport but are still waiting for their safety certificate. Germany Incumbent: German Railways (Deutsche Bahn AG, DB AG) DB AG is a holding company with five divisions: passenger transport; transport and logistics; passenger stations; track infrastructure; and services. These divisions are responsible for the respective subsidiary companies, including Railion for freight transport and DB Netz, the infrastructure manager. The Federal Railways Office (Eisenbahnbundesamt, EBA) deals with infrastructure access issues. Entrants: A number of railways companies operate on the German network for both passenger and freight transport. The so-called non-state-owned railways cover locally and regionally operating passenger transport establishments and a great number of freight operators. These companies are partly under the ownership of local authorities, partly in private ownership or a mixture of both.

262 Ibidem. 263 Information provided in this Box is extracted from: Eurofound – European Monitoring Centre in Change: Employment, Industrial relations and working conditions in the European rail transport sector, 2006. 155 Policy Department B: Structural and Cohesion Policies ______

Among the competitors of the DB AG are a number of internationally operating companies. The French-based Veolia Environment is the most important one in Germany with its subsidiary Connex. Other competitors include the French Keolis, which is active in German local transport, EuRailCo – a joint venture of the French companies Transdev and RATP – and the Swiss SBB, which mainly operates in the freight sector. These companies account for 1% of the long-distance passenger transport market and 12% of the short-distance passenger transport market. Italy Incumbent: Italian State Railways (Ferrovie dello Stato, FS). FS is a fully government-owned holding company which heads up a large group of companies. Since the late 1990s, the group structure has included Trenitalia as the railways operator and Rete Ferroviaria Italiana (RFI) as the infrastructure manager. Trenitalia is organised through different divisions for long-range passenger transport, local passenger transport and freight transport. Some of the group subsidiaries are joint ventures with private investors, such as those responsible for the management of the railway stations (Grandi Stazioni and Centostazioni). Entrants: There are a number of traditional local railways, often owned by local authorities. Twenty-eight operators provide regional railways services, controlled by the government as well as by regional or urban councils. Ferrotramviaria and SSIF are privately owned operators, thus not under the government’s control. Each operator mainly offers services on its ‘own’ independent railways network. Only a few operators have recently started to offer services on the RFI network. There are some new operators in freight transport: currently, 12 freight transport companies are competing on the market with Trenitalia. The new players can be divided into the following three groups. - Five operators are entirely controlled by companies which already had concessions for regional passenger transport on dedicated networks and are now exploring new opportunities: Ferrovie Nord Cargo, Ferrovia Adriatico-Sangritana, Sistemi Territoriali, FER and ACT Reggio Emilia. - Three new companies have been created in order to enter the railways business: Rail Traction Company, Del Fungo Giera and Serfer (controlled by Trenitalia). - There are four foreign companies (active directly or through Italian branches): SBB Cargo Italia, Railion Italia, Hupac, SNCF. There are also some joint ventures in international passenger transport, essentially between FS and single foreign national railways. The law envisages competitive tendering for the allocation of local railway transport franchises, but so far implementation has been slow.

As explained in the above report264, restructuring is a critical issue, since railways companies are usually among the largest employers in each country. Nevertheless, efforts to reduce the social impact of redundancies have been made through the combination of various ‘soft’ measures. Such measures include the blocking of recruitment, i.e. the use of natural turnover, and voluntary resignations with economic incentives, or different forms of early retirement, sometimes financed through specific funds, as was the case in countries such as Belgium, the Czech Republic and Spain. For instance, between 1998 and 2004 more than 11,000 Czech railways workers (or some 12% of the number initially employed) took advantage of economic incentives for voluntary redundancy, funded by the Government through a specific social programme that accompanied the whole railways reform process265.

Another common feature of internal reorganisation is the outsourcing of some activities which were formerly performed directly by the railways undertaking. For instance this was achieved by establishing subsidiary companies responsible for ancillary services, which were sold or developed into joint ventures (e.g. travel agency activities of the Norwegian

264 Eurofound – European Monitoring Centre in Change: Employment, Industrial relations and working conditions in the European rail transport sector, 2006. 265 Ibidem. 156 Social and working conditions in the transport sector of the European Union ______

NSB and the Danish DSB). Also other ancillary services such as cleaning services and maintenance have often been contracted out266.

According to the Eurofound study267, the impact of these developments on employment levels and on working conditions in the sector has been substantial and has often led to conflicts between social partners in this area. The shedding of jobs in the railways sector, which essentially relates to the incumbent railways companies, was a prominent feature of developments in the early 2000s. As described in section 0, between 2000 and 2006 employment reduction in the railway sector of EU-27 MS amounted on average to 22% of overall employment (or about 230 000 jobs). These are the most recent official statistics available, however, according to figures on announced job creation and reduction268 in the sector, it seems that the declining trend in employment due to restructuring processes is still continuing.

3.8.3. Air transport

Between 1987 and 1993, the European Union introduced a series of measures culminating in ‘the third package’ that introduced the freedom to provide services within the EU and, in April 1997, the freedom to provide ‘cabotage’: the right for an airline of one Member State to operate a route within another Member State269. Once fully implemented, the third package effectively removed all entry barriers, so that European carriers were free to operate on any intra-EU route.

The process of phased liberalisation changed the nature of competition in European aviation and paved the way for the growth of no-frills operators, in particular the emergence of easyJet and Ryanair as major players in the European market270. For incumbent European airlines, the collective impact of the third package was that they were for the first time exposed to competition from any EU carrier that wished to operate a service on routes between any two points in the EU. For short-haul traffic particularly, this meant existing European airlines facing a reduction in their market share as new entrants emerged. Such competitive pressure required the rationalisation of their cost base, including reviewing workforce size271.

The effect of liberalisation of the air transport market has been to stimulate a huge increase in demand for air travel, also as a result of many new market entries.

During the same time frame the employment level in the sector was characterised by an unsteady trend: in 2008 workers employed in the industry were 5.2% more than in 1998, but 5.2% less than in 2000 (see Figure 2-7 in section 0). Hence, the effect on employment is not clear: on the one hand the process of restructuring and merging that has followed liberalisation created numerous redundancies, on the other hand new market entries, the development of low-cost airlines and the start-up of new regional routes have resulted in job creation (Box No 16 reports some recent cases of job creation and cuts in the sector). It should be pointed out that in the same period civil aviation was influenced by a number of events272 in addition to the new market dynamics caused by the liberalisation process. It

266 Ibidem. 267 Ibidem. 268 According to data extracted from the Eurofound - European Monitoring Centre in Change, in the period 2008 to early 2009 the number of announced job reductions due to restructuring outnumbers the number of job creations due to business expansion. 269 Social developments in the EU air transport sector, Ecorys, December 2007. 270 CAP 749 The Effect of Liberalisation on Aviation Employment Economic Regulation Group, Civil Aviation Authority, 2004. 271 Ibidem. 272 For a full description of employment trends and their driving forces please refer to section 0 157 Policy Department B: Structural and Cohesion Policies ______is therefore difficult to understand the extent to which liberalisation has affected the workers in the industry.

Box 16 – Restructuring and Business expansion in air transport: recent trends273 Job creation Ryanair in the time frame 2003 – early 2009 announced the planned creation of 2250 jobs in different MS as a result of its business expansion. By contrast, in the same period Ryanair announced the planned reduction of about 880 to 1150 jobs. These included 130-400 redundancies following the acquisition of Buzz and 300 redundancies for which it was offered the opportunity of relocating. Aer Lingus announced in February 2009 that it intends to create 160 new jobs at Gatwick Airport. The jobs are being created as the airline is introducing new routes. Berlin Airport: New Jobs Created by Low-Cost Traffic274 At Berlin-Schönefeld the overall effect on employment triggered just by the low-cost sector led to the creation of more than 2000 new jobs (2005 data). 750 direct employment contracts were created at Berlin-Schönefeld alone. EasyJet alone took on more than 250 people from Berlin and Brandenburg. Further jobs were created at the airport, at the GSI handling company, in the catering and hotel sectors, at security companies and at service companies based close to the airport. EasyJet, the British low-cost airline firm, in January 2007 announced its intention to open a new base of operations in Barajas Airport in Madrid, which was expected to create 423 new jobs.

Job losses Malév, the recently privatised Hungarian airline, now belonging to Airbridge Zrt., started at the end of 2007 a massive programme of redundancies, affecting 9% of the company's employees. Behind the restructuring was the goal of rationalising the organisation and improving efficiency by reducing the number of departments and administrative staff. The Alitalia group has implemented several restructuring plans in recent years. In September 2004, the company cut 3750 jobs but failed to improve significantly the financial position of the group. Again in 2007 the Italian state-owned airline cut 1000 jobs involving the loss of 450 ground staff positions, 400 flight attendant positions, and 150 pilot positions. The job losses were the result of the group's continually fragile financial position. The reorganisation plan also made provision for a reduction in the number of flights run by the group and a relative shift of the group's operations from Malpensa airport in Milan to Fiumicino airport in Rome. In December 2008, Alitalia's new owners, the Italian investor group Compagnia Aerea Italiana (CAI), acquired the 'old' Alitalia and merged with Air One. CAI acquired the more profitable parts of the 'old' Alitalia, while the Italian Treasury Ministry kept all Alitalia's debts and its least profitable parts (the so-called 'bad company'). From 13 January 2009, Alitalia started a new phase as a private company. The new Alitalia has 12 600 employees, down from the previous 21 500 employees of the combined 'old' Alitalia and Air One, the smaller Italian airline, which merged with Alitalia. The new operator has 148 aircraft compared with 173 in the old fleet. BAA, the British airports operator, in 2007 announced a cut of up to 2000 jobs. The cuts were planned in most departments. The firm owns Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Aberdeen and Southampton airports. The airline Transportes Aéreos Portugueses's (TAP) purchase of Companhia Portuguesa de Transportes Aereos SA (PGA) was to lead to job losses for 220 of PGA's employees in 2007. The takeover affected about 30% of the PGA’s workers. Out of a total of 746 workers at PGA, 475 remained in the company while 51 were contracted by TAP. Most of these 51 workers were cabin crew and also pilots and maintenance workers. The collective dismissal of the remaining 220 workers was initiated by Portugália in July 2007. Of these employees, 141 worked in Portugal,

273 Unless otherwise indicated information provided in the Box was extracted from: European Foundation for the Improvement of Living and Working Conditions, European Restructuring Monitor database. 274 One Year of Low-Cost Traffic at Berlin SXF, Berlin Airport, 26 October 2004. Available at http://www.berlin- airport.de/EN/Presse/index.html 158 Social and working conditions in the transport sector of the European Union ______

corresponding to 30% of the company’s workforce, and the others worked in Spain, France and Italy. This process was strongly opposed by trade unions, who claimed that workers' rights were infringed in terms of wages, seniority benefits and other terms and conditions. PGA was to hire a company specialising in outplacement in order to support the workers facing dismissal in finding a new job. In February 2009, the Scandinavian airline company SAS, partly owned by the Norwegian, Swedish and Danish states, announced a cost-saving plan resulting in the loss of 3500 jobs. The restructuring measures include outsourcing, production cutbacks and reorganisation. This follows several major cost cuts implemented in previous years. The unions seem to agree on the merger strategy and accept downsizing, but fear the consequences. The time schedule and exact distribution of job losses between the three countries are still to be decided, which eventually could lead to disagreements between the 39 unions from the different countries and between unions and management. AIR France KLM has announced that it will cut 1000 to 1200 jobs by the end of 2009. The restructuring will take place through the exit of temporary workers and natural retirement. The division of job losses between France and the Netherlands is not yet clear. In 2008, KLM already made between 1000 and 1500 temporary workers redundant. Polskie Linie Lotnicze LOT (PLL LOT), the Polish national airline, will make 250 employees redundant by the end of 2009. The redundancies will affect office and administrative personnel and technicians working at the domestic airports in Bydgoszcz, Gdańsk, Katowice, Krakow, Poznań, Rzeszów, Szczecin, Warsaw, and Wrocław.

The introduction of competition has also had an important impact on recent developments in the ground handling market275. Because of increased competition, the position of employees in this part of the sector has changed rapidly. More flexibility has been demanded from the companies operating in ground handling and therefore also from their staff276. According to a ground handler interviewed277, EU tenders for airside ground handling require high competition on costs and this has consequences for working conditions and can generate severe problems at airports, such as lack of apron capacity in relation to traffic demand. Trade unions have a similar position, and they believe that liberalisation of ground handling services will lead to thousands of redundancies in Europe278. This conclusion is not accepted by the AEA279, which considers that there is no evidence of any worsening of working conditions following the liberalisation of ground handling services.

For air traffic controllers the developments in the past ten years have not had a large influence on employment, wages and working conditions in terms of reduction in the number of fixed-term contracts. Liberalisation of the EU air transport market seems to have not directly influenced Air Navigation Service Providers (ANSPs). Employment figures for ANSP organisations in EU-15 are only available for the period from 2001 to 2004280: employment in EU-15 between 2001 and 2004 increased by 4.2 percent from 33 239 employees to 34 658 employees and in 2005 decreased to 33 077. The development in the number of employees seems to have affected air traffic controllers in particular. The number of technical support staff, on the contrary, decreased between 2001 and 2004, with the exception of 2003 when there was a strong increase281.

275 Social developments in the EU air transport sector, Ecorys, December 2007. 276 Ibidem. 277 Survey developed for the present study: Frankfurt Airport Services Worldwide. 278 ETF Contribution to the Commission Conference Future Of Aviation Regulation in Europe - Brussels, September 20, 2006. 279 AEA Policy paper on ground handling, June 2007. 280 European Commission: Social developments in the EU air transport sector, Ecorys, 2007. 281 It is not possible to make conclusive statements concerning the decrease in technical support staff in the years 2001, 2002 and 2004. One reason for the decrease could be that research and development in such fields as safety and system engineering were outsourced to specialised ICT companies and/or shared between ANSPs. The share of technical support staff might even decrease further in the near future as soon as European ANSPs 159 Policy Department B: Structural and Cohesion Policies ______

In conclusion as confirmed also by the Ecorys study282, it is almost impossible to isolate the direct and indirect effects of the EU liberalisation of the sector on the developments in employment, wages and working conditions.

Indeed, there are many explanatory factors283 that intervened, and above all, also intertwined with the effects of EU liberalisation. However, it is clear that the new context shaped by the liberalisation and deregulation created new opportunities for the growth of air transport in the EU.

3.8.4. Maritime transport

During the past three decades, EU regulation has further opened up national markets of the sea transport sector to competition.

In particular, Regulation (EEC) No 4055/86 gave Member State national shipping companies (and non-Community shipping companies using ships registered in a Member State and controlled by Member State nationals) the right to carry passengers or goods by sea between any port of a Member State and any port or off-shore installation of another Member State or of a non-Community country. Moreover, the EU ‘cabotage’ rules (Regulation 3577/92) ensured that maritime transport services within a Member State, i.e. purely national connections, could be offered by companies of other MS.

However, the industry has been facing more serious challenges than the EU liberalisation. These challenges can be mainly put down to the following factors284:

- the high level of globalisation in the shipping industry; - the use of ‘FoC’ – a practice whereby ship-owners ‘flag out’ to countries which are more attractive than European countries in terms of taxation and social legislation, along with safety and environmental standards285; and - the establishment of ‘international registers’ in Europe, which are functional equivalents to ‘FoC’.

Such practices have had ‘dumping’ effects in terms of labour and social standards in EU shipping.

In the view of trade unions286 although not all vessels under FoC are substandard vessels, they are often used as a tool to enable ship owners to operate under the minimum social and environmental standards and to contract labour on lower wages from third countries. Furthermore, the trade unions complain that in the long term, using substandard shipping is becoming an obstacle to socially sustainable development in the maritime transport sector.

start to use a more similar technical infrastructure in the framework of the Single European Sky. Similar systems across Europe ultimately require less technical staff (engineers) for maintenance. 282 European Commission: Social developments in the EU air transport sector, Ecorys, 2007. 283 Among others: Financial Crisis 1999-2004, 9/11 terrorist attacks, SARS, 2007/08 increases in fuel prices 284 Representativeness of the European social partner organisations: Sea and coastal water transport, European Foundation for the Improvement of Living and Working Conditions, 2008. 285 By international standards, Europe plays a dominant role in the industry. While only a minority of ships worldwide fly the flag of an EU Member State, more than 40% of the world’s fleet is controlled by EU shipping companies. 286 ETF with the support of the European Commission, Restructuring and Developments in the Transport Sector - Background paper, October 2007. 160 Social and working conditions in the transport sector of the European Union ______

As reported by Eurofound287, over the past 20 years the number of EU seafarers in EU shipping has declined by more than 40%, while employment among non-EU or non- European Economic Area (EEA) seafarers has increased by 19%. This is because the latter are paid wages up to 60% below that of EU nationals. Such a trend affects EU ratings in particular, along with officers to a lesser extent.

However, employers’ organisations288 believe that the globalisation presents particular challenges in the area of maritime employment in a European context of generally high labour costs. Hence the need to ensure that European shipping can continue to effectively and fairly compete in the global market should always be taken into account by the EU policy in this area.

According to the ETF background paper289, as far as port workers are concerned, contrary to other transport sectors and despite two attempts by the Commission to legislate on market access to port services, the port sector has not yet been subject to an EU-driven liberalisation process. However, the Paper reported that the sector has experienced major privatisation in the last decade and that access to the port services market is largely liberalised. Ports play a crucial role in the transport chain since they turn out to be nodal points of logistics chains and for intermodal transport systems. In addition, technological innovations and developments, such as automation, introduction of IT and containerisation, have had great influence on ports' work. New actors have emerged and new links between them, as users and producers have developed. In this regard, the growing role played by global network terminals, i.e. global companies that have container terminal interests in more than one geographical region, should be taken into account, since there is evidence that the way they operate can affect intra-port competition. All this on the one hand could have negative repercussions on labour standards, as long as competition is meant to be based on mere cost reduction, on the other hand could have a positive impact in terms of transport traffic expansion and consequent need for additional labour force.

The recent rejection by the European Parliament of the Port Package II290, which would have introduced sweeping changes and liberalisation in the operation of ports, for example authorising ships’ crews to unload ships themselves and ship owners to run freight terminals, is believed to have been important for the future of the port sector. Indeed, according to the trade unions, the proposal would have meant the loss of thousands of jobs and the deterioration of social standards291. For some port operators and employers’ organisations, the proposed measures did not go far enough towards creating greater competition for the provision of different port services. Some critics say that the Ports Package II would have achieved the contrary of what it set out to do, namely to secure the future of European ports292.

287 Representativeness of the European social partner organisations: Sea and coastal water transport, European Foundation for the Improvement of Living and Working Conditions, 2008. 288 ECSA, Developing Skills and Maintaining Employment in the Maritime Industries - A Background Note, Draft Note sent in response to the survey performed for the present study. 289 ETF, Restructuring and Developments in the Transport Sector - Background paper, October 2007. 290 The Port Package II programme would have liberalised port services by permitting shipping firms to appoint independent contractors to load and unload ships. It also would have ended terminal operators' monopolies on cargo handling. There was widespread industry opposition to the proposal. 291 Parliament rejects port services directive, EurActive News. Published: Wednesday 18 January 2006 | Updated: Thursday 19 January 2006. 292 Ibidem. 161 Policy Department B: Structural and Cohesion Policies ______

3.8.5. Inland waterway transport

In principle, the IWT market was fully deregulated on 1 January 2000 by virtue of Directive 96/75293. A further liberalisation took place in 2003 when the capacity regulation policies in the EU became inactive294. The systems of fees, fines, checks and controls that were connected to such policies disappeared as well.

The EU-wide deregulation and liberalisation of transport markets has of course affected the IWT freight markets. This has resulted in changes in the employment structure of the enterprises since staff costs are the major part of the cost structure. With liberalisation, freight rates went down, sometimes dramatically295. As a result, according to the PINE study296 the shipping companies laid off employees, and ships were outsourced and registered under foreign flags that made the business cheaper (e.g. Luxembourg). The owner-operators of countries with high wages (Germany, France, the Netherlands) reacted by employing ‘temporary’ staff from Poland, the Czech Republic or South-eastern Europe. This process of labour migration and mobility puts pressure on the general salary levels and social security. By contrast, countries in Eastern Europe note staff shortages due to the ‘drain’ of staff to Western Europe. According to a study297 carried out for the social partners of the Danube Commission, the qualified labour force will be reduced by at least 5000 workers by 2013 if the shortage trend continues. The social partners call for the establishment of a ‘training institute’ for the Danube region, more specifically a ‘school ship’ which can easily combine theoretical and practical training.

The inland navigation sector went through major restructuring, in particular in the NMS, to meet the requirements of the inland waterway market in the EU. Former state-owned companies were privatised, companies merged, the river cruise ship industry emerged and so called ‘letter box’ companies were established. However, inland navigation expanded into new markets such as transport of maritime containers, waste and recycling, and dangerous goods. The Commission presented an integrated European Action programme, called NAIADES, in 2006, to promote inland navigation and rebalance freight transport in Europe. This is seen by the industry as positive input into a sector whose share in the whole transport industry continues to fall far short of realising its full potential. Regarding working conditions, the sector is first and foremost confronted with a serious shortage of skilled labour. Due to the work-life imbalance and atypical working hours, jobs are not very attractive. Besides, according to trade unions298 on river cruise ships, precarious, underpaid work is flourishing.

293 Council Directive 96/75/EC of 19 November 1996 on the systems of chartering and pricing in national and international inland waterway transport in the Community. 294 Regulation (EEC) No 1101/89 introduced measures designed to reduce structural overcapacity in the inland waterway transport sector by means of vessel-scrapping schemes coordinated at Community level and by introducing a capacity-regulation mechanism, known as the ’old for new‘ rule, which imposed conditions for bringing new capacity into service. The Regulation expired on 28 April 1999 and the Council adopted Regulation (EC) No 718/1999 laying down arrangements for a four-year transitional period during which the ratio was gradually to be reduced to zero, i.e. all the existing conditions for bringing new vessels into service were to be removed. Upon the expiry of this period (29 April 2003), the capacity-regulation mechanism was to become a standby mechanism and the "old for new" rule could no longer be reactivated, accompanied or not by structural improvement measures, unless there was a serious market disturbance. 295 PINE Prospects of Inland Navigation within the enlarged Europe, Final Concise Report. March 2004 296 Ibidem. 297 IVDS, Berufs profile der Binnenschiffahrt im Donauraum, Wien, March 2007. 298 ETF, Restructuring and Developments in the Transport Sector - Background paper, October 2007.

162 Social and working conditions in the transport sector of the European Union ______

3.8.6. Key findings: consequences of liberalisation of transport services

The opening-up to competition of national transport markets across the European Union and the removal of physical and technical barriers to free movement of people and goods, achieved through EU policies, have broadly contributed to the opening-up of the transport market. That applies in particular to road, sea and air transport and, to a lesser extent, to railways. Furthermore, EU legislation requiring and/or accelerating the liberalisation of the transport market has led not only to a broad reorganisation of the transport sector but also to a consolidation process or mergers in the sector.

A major problem reported is the practice of social dumping that is found in all the transport sectors but especially in the road and waterborne transport sectors due to the difficulties of European legislation in achieving a system of fair competition between the different modes of transport and the different regions. There is growing competition within the EU (especially from the NMS) and from the EU's neighbouring countries. This widespread social dumping arises from the non-application of European legislation, or from a huge difference in the application of this legislation in the various MS. The absence of homogeneity in the rules determines a distortion of competition that has repercussions on working conditions. The distortion of the rules of competition or the establishment of companies in other countries (especially NMS on non-EU Member States) makes it possible to employ workers with contracts entailing lower wages and social protection or in some other cases higher flexibility. This problem was reported for all modalities, albeit the railway sector seems to be less affected.

The restructuring of the railways sector, which essentially relates to the incumbent railways companies, has resulted in prominent job reduction: between 2000 and 2006 employment reduction in the railway sector amounted on average to 22% of overall employment. By contrast, it is not clear whether liberalisation affected the level of employment in air transport: on the one hand the process of restructuring and merging created numerous redundancies, on the other hand new market entries, the development of low-cost airlines and the start-up of new regional routes have resulted in creation of a new transport demand and a consequent need of new labour force.

Maritime transport experienced an impressive decrease in the number of EU seafarers employed: the number of EU seafarers in EU shipping has declined by more than 40% over the past 20 years, while employment among non-EU or non-EEA seafarers has increased by 19%. However in this case it was found that this process has mainly to be put down to the effects of globalisation and to the practice of the flag of convenience.

Finally, liberalisation also affected the social conditions of workers in IWT: as a consequence of it many shipping companies in Western Member States registered their ships under cheaper flags and laid off employees with high wages to employ ‘temporary’ staff from south-eastern Europe.

163 Policy Department B: Structural and Cohesion Policies ______

164 Social and working conditions in the transport sector of the European Union ______

4. PART III – MAIN ISSUES AND PROBLEMS AFFECTING THE TRANSPORT SECTORS

The present study has been requested by the European Parliament as a pre-study, aimed at providing an overview of key issues in the sector and outlining current problems, challenges and the main conflicting interests to be dealt with in the future.

Accordingly, in this chapter the main issues and problems affecting each sector are highlighted, on the basis of the outcomes of the analysis presented in the previous sections and of an extensive examination of existing documents, surveys and on desk research on official websites (Eurostat, European Parliament, European Commission, International and European Trade Unions Associations and Employers Organisations; national affiliates; other European research institutes and foundations – e.g. EIRO; etc.), as well as drawing on the survey performed for the present study.

4.1. Road transport

4.1.1. Health and safety issues

Despite major achievements in some areas (ergonomic positions, working time regulation, etc.), health and safety issues remain a major problem in road transport.

Attention to ergonomic design has grown but, despite improvements, musculoskeletal (particularly back) problems persist. Long sitting periods – one of the psychosocial risk factors proven to cause musculoskeletal problems – in addition to longer working hours and increases in the pace of work, the quality of infrastructure and equipment and the scarcity of adequate rest facilities – may explain this persistent health outcome. Physical risks are also increasing, such as the risk of being robbed (freight transport) or assaulted (transport of persons).

Working hours

In many countries, the social partners – especially the trade unions – are worried about the health and safety of drivers in the road haulage sector; in particular, many believe that this sector is being threatened by long working hours and fatigue despite the implementation of Directive 2002/15.

The table below summarises the contrasting opinions of the social partners on rules affecting road freight and passenger transport.

165 Policy Department B: Structural and Cohesion Policies ______

Issue Employers’ organisations Trade unions

Generally, trade unions agree with the obligation to work shorter hours. However The Directive forces drivers to work less than they there is concern about the cuts in wages. used to do, based on a three-week average. There Working is concern about the loss of competitiveness. Employee representatives want the Hours employers to raise wages and alter wage (Directive Furthermore, employers claim a shortage of structures in order to address the ‘long hours 2002/15) personnel, particularly of drivers, which is the culture’. occupational group that is most affected by the new Directive. Unions generally state that a major problem of the sector is not the lack of legislation but failure to abide by legislation. Oppose the end of the 12 day derogation, which was supposed to benefit drivers through improved working and social conditions. However, in practice they claim that drivers' conditions have been worsened300: - Drivers have experienced reduced income 12 days rule resulting from shorter hours and less (This rule has overtime opportunities, as well as lost been the overseas and long shift work bonuses. The object of a additional costs of running tours (around 14% joint per trip), fleet reductions and bankruptcies in statement by the sector entail job losses. Growth in IRU and the temporary driver contracts may become a This derogation should be strategically ETF issued in very prominent feature of the industry, as introduced into a more specific report dealing April 2008. stable permanent jobs are cut back and with road market access for passenger On 4 June replaced with temporary work contracts, transport, through which the 12-day rule 2008 the secured only for peak season periods. could become effective again. European - More significantly, disrupted working patterns Parliament For the ETF Road transport section, drivers’ and the requirement to take more weekly rest 301 voted to weekly rest must be upheld to : away from home and family - due to the introduce a - improve road safety, affecting both bus derogation’s loss - threaten to ruin a driver’s twelve-day drivers and road users work-life balance. Under the old rules, drivers continuous could look forward to extended periods of - safeguard drivers’ health and safety driving weekly rests at home, further lengthened by derogation for - ensure drivers’ work-life balance. compensation for reduced rest periods. drivers engaged in - Coach drivers are by the nature of their work international sociable individuals. Those conducting long- coach tours in distance tours will often find themselves Europe299.) building a rapport and becoming part of the tour group. The legal requirement to change

drivers after six days through a tour will undermine this driver-client relationship, adding further to the deterioration of job satisfaction. Employers’ associations, accordingly, require that the EU Institutions restore the 12 day derogation.

As explained in section 0, there is a low density of employees in trade unions in the road transport sector; hence it is not certain if all workers actually agree on trade unions’ positions. As suggested by the employers’ organisations, some drivers are disappointed with the reduced income resulting from shorter hours and less overtime opportunities or with the obligation to take longer rests when away from home, among other factors.

299 http://www.iru.org/index/cms-filesystem-action?file=12days/ETOA_PR_12june2008.pdf. 300 Coach Tourism and the Loss of the 12 Day Derogation, IRU position paper, 2008. 301 http://www.itfglobal.org/etf/etf-press-area.cfm/pressdetail/1875.

166 Social and working conditions in the transport sector of the European Union ______

Rest facilities

The subject of adequate rest facilities has emerged as a relevant issue in some countries. In Finland, for example, both the trade unions and employers recognise that there is a shortage of adequate facilities, particularly in eastern and northern Finland; due to the large distances involved, the organisation of rest stops can pose a particular challenge. In Germany, the quality and quantity of rest facilities is also an issue302. In November 2008 the social partners adopted the Work Programme 2009-2010303, which identifies the improvement of rest facilities as a priority.

Poor infrastructure and equipment304

In some countries, the quality of the infrastructure is perceived to be more of a health and safety risk for drivers. In Poland, for instance, heavy vehicle traffic on the roads is reported to be a particular problem, together with the alleged deterioration of the road network and dangerous driving conditions. In Greece, many vehicles are reportedly 30 years old or more, and the social partners are demanding subsidies and tax breaks to enable drivers to renew or replace their vehicles. Poor infrastructure is also reported to be a problem in Bulgaria, due to the bad condition of many roads. In Cyprus, concern is growing about the unsuitable road infrastructure in relation to urban transport, together with the presence of older vehicles.

Aggression against drivers305

Aggression against drivers is emerging as a growing problem in some countries (see section 0). This issue would need to be further investigated and addressed by future EU policy. Unfortunately, existing crime statistics in the EU do not match very well with the needs of transport policy-making and should be improved. Furthermore, data (when available) is difficult to compare, and frequently different concepts are used in the various MS. As it turns out, the availability of statistical data is primarily limited to figures related to the theft of vehicles.

4.1.2. Wages306

The general issue of wages in the road transport sector is emerging as a particular problem in various countries. In section 0 it was shown that wages in the sector are lower than in other transport sectors. More specifically the average wages in road passenger transport are 32% lower than in the manufacturing sector, similarly, in road freight transport wages are 31% lower than in manufacturing sector.

Payments based on a fixed income plus a performance-related share and an hourly-based share are very common in road transport, mostly in the form of performance-related payments for kilometres travelled and/or tons carried. Different types of payments include hourly wages combined with performance-related bonuses, fixed-sum payments and purely performance-related payments. Such forms of payments, which violate Article 10 of

302 Impact of the working time directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007. 303 Sectoral Dialogue Committee Road Transport, Work programme 2009-2010, adopted on 18 November 2008 304 Impact of the working time directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007. 305 Ibidem. 306 Ibidem.

167 Policy Department B: Structural and Cohesion Policies ______

Regulation 561/2006307, means that time becomes money, thus putting drivers under permanent time pressure and encouraging non-compliance with mandatory driving time and rest period regulations.

The direct impact on wages in some countries of the transposition of Directive 2002/15 is worthy of mention. In the UK, the main effect of the Directive has been to force employers to reduce the average working time for their mobile workers, often with no loss of pay by means of increasing holiday entitlements and/or increasing hourly rates of pay. Conversely, as suggested in the previous section in some other countries this has led to a reduction in income for drivers.

The table below compares the contrasting opinions of social partners in evaluating level of wages in the sector in connection with the entry into force of the new rules on working time.

Issue Employers’ organisations Trade unions

Wages are among the issues mentioned by Employees in the sector, particularly employers’ representatives, and regarded as drivers, work excessively long hours, a difficult part of the collective agreements. mainly due to the low wages. The earnings are considered overall to be largely satisfactory. They need to earn more money than the Level of basic wage. In accordance with Directive However, because of the increased payment 2002/15, the unions are in favour of competition and falling carriage prices, distinguishing between periods of companies in freight transport report having availability that are considered as problems maintaining the current regulation working time and periods of availability where the operating time, including waiting that are not considered as working time. periods, is paid as working time.

4.1.3. Shortage of qualified personnel

The present shortage of qualified personnel, particularly drivers, is a real challenge (see section 0). The driving profession remains associated with poor working conditions, low wages and a problematic work-life balance, particularly for international drivers.

In addition, a progressive restructuring of the driver's role was observed due to the emergence of new arrangements in operations and logistics management. As a result, drivers often are required to carry out new duties. Growing international transport means that drivers must be skilled in communicating with different kinds of people. Moreover, adjustments to technological and economic change in the profession require lifelong training.

In addition, the unions are in favour of better training provisions. Some unions take the position that, instead of using repressive measures to improve road safety, the emphasis should be on prevention and training.

Hence, it would be advisable to identify policies for developing a training culture in an effort to ensure greater employment opportunities.

307 Article 10(1): ’A transport undertaking shall not give drivers it employs or who are put at its disposal any payment, even in the form of a bonus or wage supplement, related to distances travelled and/or the amount of goods carried if that payment is of such a kind as to endanger road safety and/or encourages infringement of this Regulation’.

168 Social and working conditions in the transport sector of the European Union ______

4.2. Railway transport

4.2.1. Increased level of industrial conflict following the restructuring processes

The railway sector in all European countries has faced or is facing the developments following the opening up of the market at different times and to different extents: huge decreases in railways employment, job insecurity, outsourcing of activities, an increase in work intensity, pressure on working conditions and demands for greater geographical flexibility and job flexibility.

It is worth remembering (see section 0) that between 2000 and 2006 employment reduction in the railway sector of EU-27 MS amounted on average to 22% of overall employment (or about 230 000 jobs). This has often led to conflicts between social partners in this area.

Numerous recent examples of trade unions’ and workers' actions against redundancies in the railway transport sector due to restructuring processes tend to confirm these indications, giving an idea of the increasing level of conflict in the sector, which has traditionally experienced a relatively low level of conflict because of the widespread presence of former incumbents.

In this respect, as shown in section 0, it should be highlighted that activities and outcomes of the European social dialogue in the railway sector have emphasised the importance of social dialogue itself for the overall climate of industrial relations.

The table below describes the different views of the social partners on the main issues and challenges that are affecting this sector308.

308 Sources used: - ‘Industrial relations in the railways sector’, European Foundation for the Improvement of Living and Working Conditions, 2004. - ‘Employment, industrial relations and working conditions in the European rail transport sector, European Foundation for the Improvement of Living and Working Conditions’, 2006. - Survey performed for the present study.

169 Policy Department B: Structural and Cohesion Policies ______

Issue Employers’ organisations Trade unions

Redundancies are necessary. Soft measures in some cases have accompanied redundancies. Such In some cases, trade unions agreed on Employment measures include the blocking of the diagnosis made by employers. On the reduction recruitment, i.e. the use of natural other hand trade unions always strongly (Restructuring) turnover, and voluntary resignations oppose any plan to reduce employment. with economic incentives, or different forms of early retirement, sometimes financed through specific funds. The employers share the view that the opening-up of the railways market to Preservation of the existing work increased competition must be based protection levels. Harmonisation of work on fair conditions and reciprocity. Like Liberalisation regulations must be realised through the the unions, they underline the and extension of the highest protection importance of safety standards and privatisation standards currently granted to railways quality of service and have expressed workers, with a view to avoiding ‘social some concerns that liberalisation might dumping’. prove detrimental to these priority objectives.

4.2.2. Comparative disadvantage309

Social and working conditions in the railway sector are affected by the system requirements and existing EU and national legislation (e.g. concerning working time, drivers' licences, safety directive/safety management systems). The safety standards of the railway sector are already very high, in particular in comparison to the road sector. With a view to improving railways' performance, social partners share views on the question of infrastructure policy or fair competition between transport modes. In a joint declaration addressed to the European Commission in May 2006, for example, CER and ETF submitted a joint request that the Commission speed up its work on the internalisation of external costs in infrastructure charging (see also section 0)310. Creating fair framework conditions for transport economics, in particular a level playing field for infrastructure access charging in all transport modes, is an important condition for achieving a modal shift.

Social partners, therefore, believe that the internalisation of external costs in infrastructure access charges must be achieved in future EU legislation. Achieving interoperability of the European railways system is also vital to improving railways competitiveness for international freight business and, in the long term, to reducing costs.

4.3. Air transport

4.3.1. Level of employment

In section 0, it was explained that economic growth, the profitability of the sector and the level of competition that followed liberalisation have had a great influence on the development of employment in the sector. It was found that in the last decade the employment level in the sector was characterised by an unsteady trend: employment increased from 1998 to 2000, then it fell in the time-frame 2001 to 2005 and finally it was back to slow growth in the following years (see Figure 2-7 in section 0) until the next crisis.

309 Survey performed for the present study. 310 CER and ETF, The Social Dialogue in The Rail Sector, Information Seminars in Tallinn and Bucharest – 2006.

170 Social and working conditions in the transport sector of the European Union ______

It appears that employment among certain occupational groups (pilots, cabin crew) has increased over time, whilst it has declined or stagnated amongst other groups (cleaning, catering, baggage handling, ticketing and sales). However, it should be considered that such decline could be explained by the outsourcing of activities by airlines to companies not included in the air transport sector by official statistics.

As many airlines have embarked upon large-scale restructuring, the topic of restructuring has been a very specific focus of debate in recent years. For trade unions, the aim has been to secure employment and this has led to some concessions on flexibility in terms of both pay and working time.

4.3.2. Wages and working conditions

The remuneration package for workers in the air transport sector includes extra payments or variable wage components. Workers in the air transport sector in general are well paid for their job compared to other sectors. In section 0 it was shown that on average, they earn 44% more than workers in the manufacturing sector.

Nevertheless, there could be considerable differences in wages and working conditions between employees working for major airlines and those employed by low-cost carriers (see Box No 3). This practice has resulted in inter-union conflicts as well as industrial action (see section 0).

For many airline groups, a relative or absolute deterioration in pay in recent years has stemmed from nominal wage reductions or pay freezes, often as a ‘solidarity’ contribution to the survival of the airline. Some airlines have introduced two-tier wage systems, with lower starting levels and slower wage progression for those entering the industry.

The table below provides a summary of the positions or the proposed solutions from the social partners with regard to the main issues related to the liberalisation process and the consequent restructuring, the entry into the market of LCCs and the diminishing of non- fixed-term contracts and wages311.

311 Sources used: - ‘Industrial relations in the airline sector’, Eurofound, 2005. - Survey performed for the present study. - ITF survey – The industrial landscape of low-cost carriers, October 2002. - No To More Deregulation In The Civil Aviation Industry, Yes To Better Quality Jobs And Social Rights, ETF position paper, March 2005. - http://www.itfglobal.org/etf/ryanair-campaigns.cfm.

171 Policy Department B: Structural and Cohesion Policies ______

Issue Employers’ organisations Trade unions

In the case of traditional carriers, unions Many carriers have modified terms have been concentrating on negotiating and conditions of employment for new acceptable terms and conditions for their Effects of employees, for example, employing members in those carriers undergoing recent new recruits on fixed-term contracts restructuring. adverse or operating a two-tier pay system. events on The practice of subcontracting has With regard to the new low-cost airlines, the industry also increased, particularly in the case trade unions have been trying to recruit new of ground handling and catering members and gain recognition for bargaining operations. purposes. However, they often have faced hostility by the companies. Employers are against collective bargaining. They support the idea that Trade unions are in favour of a responsible Wages all salary negotiations must be local, wage evolution with limits set by collective company-based, with no frame of agreements. reference. Employers are in favour of fixed-term Fixed-term employment contracts that can be Trade unions are in favour of open-ended agreements terminated at the employer's contract schemes. convenience. Low-cost airlines are a challenge for trade unions, as, in order to achieve lower costs, Although many LCCs operate the these airlines often employ fewer staff on same terms and conditions for staff as Working terms and conditions that are less favourable traditional companies, there is often conditions – than elsewhere in the sector. Unions have pressure on trade unions to accept low-cost therefore been monitoring the situation in wage cuts and less favourable terms companies low-cost airlines closely, focusing on trying and conditions, particularly in the case to ensure union recognition and terms and of new recruits. conditions in line with national carriers and longer-established airlines. The working conditions will be worse in the Due to increasing competition, new company; therefore employees’ Outsourcing outsourcing of non-core business organisations are against outsourcing - but activities is necessary. they have no legal means to prevent it.

4.3.3. Skills shortages

The industry is currently facing a debate on how to recruit, maintain and keep a workforce in the face of competition from other industries, as well as on how to ensure that ‘human- factor’ incidents and problems of fatigue are minimised. Debates at the 2007 ERA workshops312 regarding the impact of rational workforce planning and of better training of maintenance personnel and pilots and aircrews on safety and costs in the aviation industry provide a relevant example, .

Conclusions from the workshops have confirmed the general decline of the idea of the aviation industry as a ‘glamorous’ one313, because of pressure, stress, unfavourable working conditions, mainly for maintenance workers, historically poor pay for maintenance technicians, suffering from being labelled as 'manual workers', lack of proper training for technicians who become supervisors, and cheaper labour coming in from abroad. As a

312 http://www.eraa.org/inside-era/generalassembly/Workshop/Workshop2007.php. 313 ERA 2007 Assembly - workshop on ’Talent spotting: Is this industry still ‘sexy’ and how do we recruit and train without the traditional apprenticeships or guaranteed ‘jobs for life’?’ - Heather Darwin, Managing Director, Line Up Aviation Personnel Presentation to the workshop, October 2007.

172 Social and working conditions in the transport sector of the European Union ______major result of the workshops, the necessity for airlines to continuously train existing employees in order to retain their workforce314 has also emerged.

Accordingly, trade unions continue to focus on the importance of: ensuring that the staff of national carriers retain their employment terms and conditions and enjoy employment guarantees; increasing trade union membership and recognition in the new airlines; and ensuring that the presence of new, low-cost airlines does not have a detrimental impact on overall terms and conditions in the sector.

4.4. Maritime transport

4.4.1. Poor image of the sector

A main concern in this sector is the poor image of the maritime profession that has been resulting in low numbers of young people taking up education or training in this field and low attractiveness caused by long absences from home. Indeed, these factors present a real threat to the European shipping industry. Currently, over 25% of officers from OECD countries are over 50 years old, and well over 50% are over 40. The impact of their retirement, without adequate numbers of well trained and experienced replacements, could be severe315.

The sector suffers from an image of being ‘old-fashioned and hard work’ with young people lacking knowledge about today’s high-tech vessels. For example, the growth in the short sea shipping sector demands new skills; ship manoeuvres are becoming more complicated and need to be faster, which requires in-depth knowledge of new computer and electronic systems. This information about the changes in the job profile of a seafarer as an increasingly technical and skilled profession has not reached young people in many countries, and many maritime schools across Europe have seen severe declines in the number of young people choosing to study maritime subjects. An exception to the decline in young people taking up education in this field is provided by Belgium: greater investment in marketing has improved the image and reputation of the sector, and registrations for maritime studies increased316.

In addition, working conditions on board vessels – including long absences from home – are considered to make the sector less attractive. While some of these are indeed inherent in the nature of the sector, new ways of addressing work organisation and work patterns may well contribute to improving working conditions and therefore raising the image of the sector.

4.4.2. Increasing employment of seafarers from third countries

Employers’ organisations are worried about the increasing shortage of seafarers and the constant shortage of quality engineers. In their opinion317, in order to be competitive the European shipping companies should continue to be allowed to employ residents of other MS reflecting the cost of living, taxes etc. in that other State.

314 ERA 2007 Assembly - workshop on ’Workforce Retention and Motivation: Train to Retain‘ - Richard Lewis, Managing Director, Marlborough Presentation to the workshop, October 2007. 315 Exhaustive analysis of employment trends in all sectors related to sea or using sea resources, ECOTEC, 2006. 316 Ibidem. 317 ECSA, Developing Skills and Maintaining Employment in the Maritime Industries – A Background Note, 2008, document drawn up for the present study.

173 Policy Department B: Structural and Cohesion Policies ______

By contrast, employees’ organisations318 express concern over the preference of ship owners for employing seafarers from third countries with the effect of losing important maritime skills from Europe; more specifically, concern is raised over equality in employment terms and conditions between third-country and EU nationals. In their view, it is essential for maritime workers that social partners work to secure the ILO Consolidated Maritime Labour Standards as soon as possible and to ensure full implementation of the standards by all parties.

4.4.3. Social Dumping

The use of ‘FoC’, the establishment of an international register in Europe along with the high level of globalisation of the sector has had ‘dumping’ effects in terms of labour and social standards in EU shipping (see section 0).

According to trade unions319, vessels under FoC are often used as a tool to enable ship owners to operate under the minimum social standards and to contract labour on low wages from third countries. To counteract social dumping, employees are also proposing that quotas be established for European workers on board EU vessels, an idea that shipowners continue to resist.

By contrast, the employers320 believe that globalisation presents particular challenges in the area of maritime employment in a generally high-labour-cost Europe.

4.4.4. Harassment and bullying

As previously explained there is currently a major shortfall in the number of Europeans embarking on careers at sea. However, cases of harassment and bullying on board EU vessels can contribute to the low attractiveness of this profession.

Harassment and bullying are causes of intimidating and hostile working environments, stress, lack of motivation, unsatisfactory work performance, absenteeism, resignations and high costs321. In some cases, those committing acts of harassment and bullying are believed to do so intentionally. In many other cases there are actions which could be classed as harassment and/or bullying that are carried out unwittingly and result from outdated management styles as opposed to any deliberate negative intention. Hence, the adoption and encouragement of management styles that do not involve aggressive and intimidating behaviours would also make an important contribution to the eradication of workplace harassment and bullying.

In 2003, the social partners322 carried out, with the support of the European Commission, a project to assist shipping companies to eliminate harassment and bullying on board ships and to implement effective company policies on equal opportunities throughout the MS of

318 Reassessing the regulatory social framework for more and better seafaring jobs in the EU, ETF response to the first phase consultation of the Social Partners at Community level, February 2008. 319 ETF, Restructuring and Developments in the Transport Sector - Background paper, October 2007. 320 ECSA, Developing Skills and Maintaining Employment in the Maritime Industries - A Background Note, Draft Note sent in response to the survey performed for the present study. 321 Harassment includes any inappropriate and unwelcome conduct which, whether intentionally or not, creates feelings of unease, humiliation, embarrassment or discomfort to the person on the receiving end. Bullying is a particular form of harassment that includes hostile or vindictive behaviour, which can cause the recipient to feel threatened or intimidated. 322 European Community Shipowners' Associations (ECSA) and the European Transport Workers' Federation (ETF)

174 Social and working conditions in the transport sector of the European Union ______the EU. The project was concluded with the production of combined guidance323 to shipping companies and others in the shipping industry on what they can do in order to eliminate harassment and bullying.

4.4.5. Career progression

Another concern for the industry is the career progression from sea-based employment to a career ashore. The process of progressing to a career ashore is different for deck officers, who often find it more difficult to find shore-based employment than engineering officers, who would seek opportunities in well-defined areas where their skills are in demand. The main reason for decreasing opportunities for deck officers is the greater integration of the ships' agencies, ports, ship brokerage and freight forwarding businesses into a wider logistics industry, which has resulted in greater detachment of that sector from seafaring. Engineer officers are widely sought after in such professions as inspector and surveyor with shipping, management, classification and insurance companies, as well as in operational functions with shipping and management companies, shipyards and engine manufacturers, etc. Former officers make attractive employees in shore-based professions and progress from the middle to top management. However, due to the general lack of management or business qualifications, very few progress further. It is difficult to assess whether the lack of qualifications is the primary cause of the lack of progression of the ex-seafarers into top management. One important factor may be differences in the scope of management responsibilities at sea (that focus on technical and operational functions) and current qualifications of top management with predominantly financial and commercial backgrounds.

4.5. Inland waterway transport

4.5.1. Contract laws

It is of great importance that manning and regulations on working hours are harmonised in order to create good and equal working conditions throughout the Union. Contract law is mostly based on national regulations, and therefore not harmonised on an international level. This relative legal uncertainty entails a number of practical obstacles to the further development of inland navigation.

The problem was recently pointed out also by the European Commission, which in a recent working document324 states: ‘Today a skipper who wants to sail through the EU’s inland waterway network is faced with coexisting sets of rules stemming from the European Union, from CCNR or from the Danube Commission. While some of these rules are equivalent, they are not identical and mutual recognition of the respective certificates is not ensured.’

The non-recognition of professional qualifications hampers job mobility between the different corridors within the inland navigation sector, not only, but especially from Central and Eastern European EU MS, to the Rhine. This issue includes the harmonisation of boat

323 ECSA, ETF - Guidelines To Shipping Companies: Equality Of Opportunity & Diversity In The European Shipping Industry, Eliminating Workplace Harassment & Bullying (July 2005) 324 Commission staff working document: Accompanying document to the Report on the impact assessment of proposals aiming to modernise and reinforce the organisational framework for inland waterway transport in Europe - SEC(2008) 23

175 Policy Department B: Structural and Cohesion Policies ______masters’ certificates as well as recognition of other professional qualifications and harmonised manning requirements between the Rhine, the Danube and the Community.

4.5.2. Shortage of skilled personnel

Despite the productivity gains achieved in the last decades, several European countries are faced (or will be faced) with a shortage of skilled employees. According to a recent study325, in most European countries the lack of competent personnel is mentioned as a significant barrier to the industry. As mentioned in section 0, Western countries are partially solving this problem by hiring staff from Eastern Member States or non-EU countries, inversely Eastern Member States claim ‘drain’ of staff to Western Europe.

Furthermore, according to the findings of the above study, in some countries the causes for the shortage of personnel could be the lack of suitable training facilities. However, it seems that the fundamental problem is that jobs in the industry are simply not attractive enough to attract young people to the profession. The latter reason seems to be more plausible since in countries where training facilities exist the same problem of staff shortages occurs.

As a consequence of the modernisation of the sector and higher employment of information and communication technology (ICT) on EU vessels, it is not clear how many workers with various qualifications will be required by the industry in the near future. On the one hand, a number of staff with ICT skills are likely to be needed, on the other hand the number of staff needed as a whole could be reduced due to automation of certain functions.

4.5.3. Quality of work

Workers employed in freight transport in inland waterways are often away from home for long periods and in addition do not have the possibility of planning their leisure time because of the irregular nature of this kind of profession (see section 0). These constitute relevant drawbacks for these professions: the quality of private life of people employed in this sector is generally not comparable to the quality of life of people employed in other sectors.

These disadvantages could primarily be compensated by other positive conditions in the sector of inland navigation, for example a positive image, good earning possibilities and good social standards (e.g. regarding health insurance and pension schemes etc.). However - as demonstrated elsewhere - in inland navigation these conditions are often not or only insufficiently fulfilled.

325 DG Energy and Transport of the European Commission: Final Report for the ’Study on Administrative and Regulatory Barriers in the field of Inland Waterway Transport’ – Part A, NEA, 2008.

176 Social and working conditions in the transport sector of the European Union ______

5. PART IV – RECOMMENDATIONS FOR FURTHER EU POLITICAL DISCUSSION, LEGISLATION AND RESEARCH ACTIVITIES

This section provides some indications for further political discussion to be pursued at the EU level, involving all parties in the field (national governments, trade unions, employers' organisations and all the partners involved in social dialogue). The recommendations are based on the outcomes and on the main issues emerging from the analysis of the different transport sectors for all the different topics addressed by the study.

1. Understanding and monitoring the crisis in order to take proper corrective action

In section 0 it was shown that, as a consequence of the current economic downturn, employment levels in the transport sectors have been declining. From January 2008 to March 2009, land transport employment declined by 2.7%; in the air transport sector, almost 7.6% of workers lost their jobs; while in the waterborne transport sector, starting from November 2008 job losses were 4.9% of the total.

Hence, a number of new issues are now clearly arising and should be addressed by policymakers.

- Labour security: unemployment of weaker categories of workers (e.g. workers with short-term contracts, workers without regular contracts, women, etc.) is likely to have a major effect; - Quality of jobs: the crisis is requiring employers to cut costs; this could result in reorganisation, thus putting workers under pressure. - Change of role of trade unions: during the crisis period trade unions are likely to lose power, hence maximum efforts should be put into social dialogue in order to protect workers’ social conditions.

2. Investigating pension systems and early retirement for health reasons

There is no exhaustive information or studies to compare pension schemes in use in each transport sector in each European country. Information would be required in relation to:

- minimum required working years, - retirement ages, - pension values.

It would be interesting to investigate whether the incidence of early retirement requests for health reasons in the transport sector is higher than in other sectors. An additional aspect worth analysing is whether mobile workers with higher educational/training levels have lower incidence of early retirement than other mobile workers. If confirmed, this could be explained either by a lower exposure to fatigue, or by a higher opportunity for well- educated workers to adapt to new duties.

Within this context, it would be beneficial to know what MS have done, specifically, to analyse ‘ad hoc measures’ established by MS to assist mobile workers encountering difficulties in reaching retirement age.

177 Policy Department B: Structural and Cohesion Policies ______

3. Cross-border collaboration between trade unions

As described in section 0, recent developments in market structures, particularly in the railway sector and civil aviation, have had profound consequences for relations between management and workers and their unions. It seems that, at least in some cases, this has resulted in the need for new forms of supranational labour relations.

It would be interesting to investigate this topic to gain an understanding of whether trade unions are still too much focused on national bargaining and do not yet have a European perspective.

4. Promoting gender equality actions

One issue to be addressed concerns the lack of visibility of female transport workers, whose participation in the industry is likely to grow considerably in the future. Only 25.7% of workers employed in the transport sector are women and, on average, male employees earn 20% more than their female colleagues.

It is clear that while employment patterns in the industry are changing, gender segregation and discriminatory practices persist. Hence, it is advisable to plan future studies in the field of gender equality in the transport sector.

5. Further investigating health at work

The assessment of health at work in the transport sectors (section 0) has highlighted that the incidence of occupational disease in the transport sector is well below manufacturing and NACE sectors overall. Nonetheless, between 2001 and 2005, the incidence rate of occupational disease grew considerably . For instance, the incidence of musculoskeletal diseases in the transport sector has grown from 4.2 per 100 000 workers in 2001 to 11.5 per 100 000 workers in 2005.

Further investigation of these issues was suggested to understand the reasons behind the increase in occupational health diseases in the transport sector. The availability of more detailed statistics as indicated under point (11) should facilitate the analysis. Given that musculoskeletal diseases represent the main occupational disease in the sector, the promotion of tools to assess the total load/overload on the body’s musculoskeletal system should be considered326.

6. Further investigating safety at work

In the last decade, even though fatal accidents in the transport sector have largely declined, they still represent a major concern. In water and air transport, fatal accidents have declined respectively by 36% and 54%. However, it should be emphasised that in 2006, only air transport registered an incidence of fatal accidents lower than in all other economic activities.

Another concern, emerging from the analysis, relates to the age class ‘65 years and over’, where incidence rates of fatal accidents are in fact higher than in other sectors. The ’65

326 Ergonomists recommend that risk assessment should consider the total load on the body, and not separate handling of heavy loads from other postural strains.

178 Social and working conditions in the transport sector of the European Union ______years and over’ age class records an incidence rate of 24 fatal accidents per 100 000 workers, more than two times higher than that of the ‘between 55 and 64’ age class.

These issues are worth further investigation. It would be interesting to find out in which transport sector these fatal accidents occur and in which circumstances, so as to propose corrective measures.

7. Contrasting social dumping practices in road transport and promoting fair competition between road transport and other modes of transport

An important trend, resulting from the opening of the road transport market, is companies increasingly engaging more affordable labour from Eastern Europe through cabotage services, as well as through the establishment of subsidiaries in Eastern Europe. In fact, in recent years, the number of drivers with bogus self-employed status, who do not comply with the same obligations as employed drivers has increased (see section 0).

As reported in section 0, in 2007, IRU and ETF adopted a common declaration on illegal employment addressing the problem of third-country drivers of EU vehicles engaged in intra-Community road transport.

The main requests from the social partners to the European Commission include:

- provision of accurate, up-to-date and more detailed data on employment in the road transport sector, - comprehensive dissemination and clarification of European social rules related to commercial road transport, - promotion of effective coordination of national road transport control bodies with insistence on harmonised enforcement strategies, taking into account the specificities of both goods and passenger transport sectors, - sanctions on States who do not correctly transpose EU legislation, - implementation of measures to establish co-responsibility in the supply chain, limiting the ability of clients to use dominant market positions to impose contract terms on operators that can undermine compliance with social rules.

It is worth mentioning that as a consequence of social dumping, unfair competition is generated between road transport and other more sustainable modes of transport. Fair and comparable framework conditions for competition between transport modes should be ensured. Greater supervision should lead to a decrease in the disadvantage of railway transport compared to road, where there are lower rates of compliance with regulations on social and working conditions.

In this respect, it is recommended that studies and research be promoted with a view to better understanding the reasons behind low compliance with regulations on social protection of mobile workers and to suggesting corrective actions that could include further EU regulation or better enforcement of current legislation.

179 Policy Department B: Structural and Cohesion Policies ______

8. Assessing the impact of liberalisation and privatisation processes in the railway transport sector and in the air transport sector

Analyses have led to the conclusion that the overriding issue in railways and air transport is the restructuring of the systems and the possible consequences for jobs, working conditions and workers' rights. Extensive restructuring and rationalisation measures in the two sectors have led to huge workforce reductions.

Restructuring has also increased market pressures in all countries and has influenced quantity and quality of employment. In the years ahead, this process of liberalisation and restructuring is set to continue and intensify. Even if liberalisation in the sector is likely to reduce employment levels, restructuring is necessary to foster competitiveness.

It is recommended that these aspects be investigated further in order to understand if employment reductions resulted in extended working hours, in increasing stress and in wage differences between old and new work contracts. It would also be interesting to analyse differences in working conditions between workers employed by incumbent operators and new market entrants. Furthermore, it would be useful to verify the number of workers that are employed in outsourced services and that are no longer covered by official statistics on employment in the transport sectors (e.g. in ground handling, railways ancillary services, etc.).

As a consequence of the recent liberalisation of the sector, more flexibility has been demanded of workers in ground handling services. In the view of trade unions, liberalisation is likely to lead to thousands of redundancies and to worsen working conditions. In contrast, air carriers believe that there is no evidence of any effect on working conditions. One of the ground handling operators interviewed327 has suggested that EU tenders should focus more on quality than on cost aspects; in its view the EU should not require unlimited competition for airside ground handling at airports because this leads to poor working conditions and to severe problems at airports with lack of apron capacity in relation to traffic demand.

Further investigation of these issues is therefore recommended, so as to asses the impact of liberalisation on working conditions and, where appropriate, to take corrective action in this market. Solid data collection and analysis of these topics will constitute a good discussion basis for finding possible solutions in agreement with the social partners.

9. Prevent shortage of workers in IWT

The analyses indicate that there are shortages of workers and of qualified personnel in IWT.

The shortage of qualified personnel in IWT is a real challenge for the sector. This profession has a poor image associated with low working conditions, low wages and a problematic work-life balance, particularly for employees in international freight IWT. Consequently, the sector is characterised by an ageing workforce profile, as well as by a low attractiveness to young people. In order to reverse this trend and to draw young people to join this profession new ideas are needed.

327 Frankfurt Airport Services Worldwide.

180 Social and working conditions in the transport sector of the European Union ______

As explained in section 0, in some countries the personnel shortage could be a consequence of the lack of suitable training facilities. Analysis indicates that other major disadvantages persist with this profession: the average wage in the sector is almost 50% lower than in manufacturing, although the profession does not benefit from a higher standard of working conditions or better work-life balance, compared to the manufacturing sector.

Investigation of these issues is recommended to better understand the problem and to identify innovative solutions.

10. Promotion of statistical data collection

There are incomplete employment statistics and almost no European data or comparative studies available regarding working conditions in different transport modes. Often data are available at aggregate level (i.e. NACE I - Transport, storage and communication). The optimum would be to have comparable data for all the EU-27 MS for each transport mode, namely for the following NACE economic sectors:

- NACE I601 - Transport via railways. - NACE I602 - Other land transport (this sector includes other scheduled passenger land transport, taxi operation, other land passenger transport and freight transport by road). - NACE I611 - Sea and coastal water transport. - NACE I612 - Inland water transport. - NACE I62 – Air Transport.

Some detailed information concerning missing data and possible solutions is provided below.

‘Eurostat – Structural business statistics (SBS)328‘ provide valuable information on sector employment and labour costs. Unfortunately there are many gaps in the current set of available data. This has in many cases limited the capacity to produce comparative analysis between MS or to evaluate the evolution of trends of given indicators.

With regard to the ‘Eurostat - Labour Force Survey (LFS)329‘ information is missing in the following areas:

- employment by age groups is available only at aggregate level for the transport sector as a whole; - employment by gender is available only at aggregate level for the transport sector as a whole; - share of employees by collective pay agreement is not available for each transport mode and for the all EU-27 MS.

328 SBS covers the 'business economy', which includes industry, construction and market services (NACE Sections C to K). These data are collected by Eurostat from national institutes of statistics within the framework of a Council Regulation on Structural Business Statistics (EC, EURATOM) No. 58/97 of December 1996; according to the definitions and breakdowns specified in the Commission Regulations implementing it. 329 The European Union Labour Force Survey (EU LFS) is a quarterly sample survey covering the population in private households in the EU, EFTA (except Liechtenstein) and candidate countries. It provides annual and quarterly results on labour participation of people aged 15 and over as well as persons outside the labour force.

181 Policy Department B: Structural and Cohesion Policies ______

With regard to the ‘Eurostat - Short-term business statistics (STS)330‘, data on employment changes on a monthly basis are not available at a sufficiently disaggregated level. Data would be required for the following NACE sectors: - NACE I601 - Transport via railways. - NACE I602 - Other land transport (this sector includes other scheduled passenger land transport, taxi operation, other land passenger transport and freight transport by road). - NACE I611 - Sea and coastal water transport. - NACE I612 - Inland water transport.

Recently Eurostat has implemented in the STS a new version of the statistical classification of economic activities in the European Community (NACE). The classification (NACE Rev. 2) has been modernised by introducing new details to reflect different forms of production and emerging industries. Unfortunately, the level of disaggregation of the data provided is not yet satisfactory.

With regard to ‘Eurostat - SES331‘, data on mean monthly earnings are available for the Transport, storage and communication sector but not for all EU-27 MS. The following information is not available and would be required for all EU-27 MS:

- earnings (possibly net) referring to each transport mode, - gender salary gap on mean monthly earnings for each transport mode, - mean monthly earnings by age classes for each transport mode, - contract salary gap for fixed-term (except apprentice and trainee) and indefinite duration contracts with regard to each transport mode, - monthly earnings by educational attainment in each transport sector.

With regard to labour disputes332, ‘Eurostat - Labour Force Survey (LFS)’ provides very valuable information but unfortunately only at aggregate level. Data are currently available for the aggregate services sector that includes NACE G H I - Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; hotels and restaurants; transport, storage and communications. Furthermore, data are not available for all MS. In this case, information for each transport mode or at least for the aggregate transport sector would be useful.

With regard to working time and work-life balance the ‘Eurostat - LFS’ provides statistics on the average number of usual/actual weekly hours for the transport sector as a whole. Data for each transport mode would be needed.

With regard to ‘Eurostat - Health and safety at work333‘, data are generally available at aggregate level for the transport sector or for aggregates such as land transport or water

330 Short-term business statistics (STS) include key short-term indicators that are vital for analysis of recent economic developments and the development of monetary and economic policy. 331 SES is part of Eurostat - Labour Force Survey (LFS). 332 These statistics cover stoppages of work caused by labour disputes connected with terms and conditions of employment between employers and workers, or between workers themselves. Stoppages can be the result of strikes or lockouts depending on whether the worker or the employer is responsible. The data collection is conducted in close cooperation with the International Labour Office (ILO). Reporting national agencies are requested to provide the data in conformity with the resolution 6-8 months after the end of the reference year. 333 The collection ‘Health and safety at work’ is divided into four chapters (groups): accidents at work (accidents at the workplace or in the course of an occupational activity); occupational diseases (recognised cases from national authorities); commuting accidents (on the journey to or from work);

182 Social and working conditions in the transport sector of the European Union ______and air transport. Hence, the following data would be required for all EU-27 MS and for each transport mode:

- incidence rate of fatal accidents, - incidence rate of fatal accidents by classes of age, - incidence rate of serious accidents (i.e. accidents at work resulting in more than three days’ absence from work), - incidence rate of serious accidents by classes of age, - incidence rate by disease categories (i.e. infections, cancers, neurological diseases, diseases of sensory organs, respiratory diseases, skin diseases and musculoskeletal diseases), - incidence rates by disease categories and by age classes.

With regard to job security, it would be beneficial to have information on employment by type of contract (temporary and not temporary) for each transport mode. Currently, ‘Eurostat - LFS’ provides this information only on the transport sector as a whole.

Accordingly, a revised approach to data collection and/or presentation by Eurostat is recommended. This could imply different actions that should be discussed and evaluated in terms of cost opportunity with Eurostat experts and national institutes of statistics. As a preliminary suggestion these actions may include: - verifying the reasons that are behind the numerous data gaps for indicators regarding the transport sectors made available from the EU SBS database and taking corrective action; - extending the current EU LFS sample size in order to cover with appropriate statistical significance all the transport sectors; - with regard to the EU STS the recent adoption of NACE v2.0 classification has not fulfilled current gaps in information; data would be required with a higher level of disaggregation; - verifying if data already collected on labour disputes can be made available in a disaggregated manner in order to represent different transport modes or at least the transport sector as a whole; - with regard to indicators provided by the Health and safety at work database, verifying if available data can be presented with higher disaggregation or considering devising a new approach in collecting data from national sources.

These data are generally based on national administrative sources, from declarations to the insurance (public insurance, social security scheme, or private insurance scheme) or to another competent authority (usually the labour inspectorate).

183 Policy Department B: Structural and Cohesion Policies ______

184 Social and working conditions in the transport sector of the European Union ______

6. BIBLIOGRAPHY

The bibliography does not include documents only available on web pages, quoted in the main text as footnote references.

Road transport

ASMAP, Road Transport in ECMT member countries, Visa obstacles in international road transport, 2006 Common IRU and ETF Declaration on Illegal Employment, IRU and ETF, 2007 ETF Press Release, ETF against EP amendment meant to cut rest time for coach drivers, 27 March 2008 ETF, European guidelines for road transport should reinforce social needs, unions demand, 18 April 2007 EU road freight transport sector: work and employment conditions, European Foundation for the Improvement of Living and Working Conditions, 2004 European Parliament - Directorate-General for Research - Division for Agriculture, Regional Policy, Transport and Development, The effects on the road haulage business of social dumping by operators from third countries, 2001 Eurostat News Release, Inland freight transport up by 5% in 2006, April 2008 ILO International Occupational Safety and Health Information Centre (CIS), International Hazard Datasheets on Occupation (http://www.ilo.org/public/english/protection/safework/cis/index.htm) ILO Working Paper, Labour and social issues arising from problems of cross-border mobility of international drivers in the road transport sector, April 2008 Impact of the Working Time Directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2004 Impact of the Working Time Directive on collective bargaining in the road transport sector, European Foundation for the Improvement of Living and Working Conditions, 2007 Impact of the Working Time Directive on collective bargaining in the road transport sector - Latvia, European Foundation for the Improvement of Living and Working Conditions, 2007 Impact of the Working Time Directive on collective bargaining in the road transport sector - Czech Republic, European Foundation for the Improvement of Living and Working Conditions, 2007 Impact of the Working Time Directive on collective bargaining in the road transport sector - Lithuania, European Foundation for the Improvement of Living and Working Conditions, 2007 Impact of the Working Time Directive on collective bargaining in the road transport sector - Bulgaria, European Foundation for the Improvement of Living and Working Conditions, 2007 Influence of chronic illness on crash involvement of motor vehicle drivers, Monash University Accident Research Centre, 2004 IRU and ETF Joint opinion of the EU Road Sector Social Dialogue Committee on third country drivers on EU vehicles engaged in intra-Community road transport, 2006

185 Policy Department B: Structural and Cohesion Policies ______

IRU and ETF Joint Recommendations on employment and training in logistics, 31 March 2006 IRU and ETF, Memorandum of Understanding and Recommendations to the European Institutions concerning the introduction of a ‘12 days driving derogation’ for drivers engaged in occasional international passenger transport, April 2008 IRU position concerning the Commission Proposal for new driving and rest time rules, 2002 IRU presentation for the EP Hearing ‘The Occupation of Road Transport Operator’, Strasbourg, 22 October 2007 IRU, A Scientific Study ‘ETAC’ European Truck Accident Causation, 2006 IRU, Coach Tourism and the Loss of the 12 Day Derogation, The case for reintroducing the 12 day driving period to EU driving and rest time rules, 2008 NEA, Study on the feasibility of organising a network of secured parking areas for road transport operators on the Trans European Road Network, January 2007 Restructuring and Developments in the Transport Sector - Background paper, ETF with the support of the European Commission, October 2007 Sector Dialogue Committee Road Transport, Work programme 2009-2010 Study on Road Cabotage in the freight transport market, Final report, Ecorys, 2006 Working Paper ‘The issues of fatigue and working time in the road transport sector’, International Labour Organisation, 2005

Railway transport

Atkins, Training and staff requirements for railway staff in cross border operations, Final report, European Commission, Bruxelles, 2002 Breaking New Ground Social Dialogue for the Railways, Information Seminars in Budapest and Bratislava (Hungary, Slovenia, Slovakia, Czech Republic, Poland), CER and ETF, 2004 Community of European Railway and Infrastructure Companies (CER), Towards a Sustainable Rail Network, Annual Report 2008, May 2009 Cross-border cooperation between Hungarian and Austrian railway unions, European Foundation for the Improvement of Living and Working Conditions, 2008 Dispute resolution at ferry company curtails union influence, European Foundation for the Improvement of Living and Working Conditions, 2006 Employment, industrial relations and working conditions in the European rail transport sector, European Foundation for the Improvement of Living and Working Conditions, 2006 ETF and CER Joint recommendations for a better representation and integration of women in the railway sector, 2006 ETF and CER, The Social Dialogue in the rail sector - Towards a strong partnership in an enlarged Europe, Information Seminars in Tallinn and Bucharest, 2006 ETF Presentation ‘Instruments available at European level to meet the progressive internationalisation and diversification of the rail transport sector’, October 2005 Eurostat News Release, Rail passenger and goods transport, 29 January 2007 Industrial relations in the railways sector, European Foundation for the Improvement of Living and Working Conditions, 2004

186 Social and working conditions in the transport sector of the European Union ______

ISFORT, European Project ‘Representation and better integration of women in the different professions of the railway sector’, April 2005 Joint Rail Union Briefing, The Railways Pension Scheme, 2007 Marginson, P. and Traxler, F., ‘After enlargement: Preconditions and prospects for bargaining coordination’, in Transfer, Vol. 11, 2005, pp. 423–438 New agreement on job security signed for railway employees, European Foundation for the Improvement of Living and Working Conditions, 2005 Representativeness of the European social partner organisations: Railways sector, European Foundation for the Improvement of Living and Working Conditions, 2008 RTM, Health and Safety News, March 2008 Sector Dialogue Committee Rail Transport, Work Programme 2008-2009 Social dialogue for the railways sector, European Training Foundation, 2005 Strikes held in maritime industry, European Foundation for the Improvement of Living and Working Conditions, 2005 The European Union's maritime transport policy for 2018, MEMO/09/16, European Commission, Brussels, 2009 The sector social dialogue in Europe, European Commission, 2002 Thematic Features on industrial relations in the railway sector - Case of Denmark, European Foundation for the Improvement of Living and Working Conditions, 2006 Thematic Features on industrial relations in the railway sector, European Foundation for the Improvement of Living and Working Conditions, 2005

Air transport

ACI EUROPE and ETF Joint Statement on Quality, Safety and Training in the ground handling sector, 2005 ACI Europe on the Crisis Empower Europe’s airports to boost economic recovery, Airports Council International, March 2009 Aer Lingus ‘in sourcing’ deal includes ‘leave and return’ clause, European Foundation for the Improvement of Living and Working Conditions, 2008 Aer Lingus announces radical outsourcing plan, European Foundation for the Improvement of Living and Working Conditions, 2008 Agreement reached in dispute about overtime for air traffic controllers, European Foundation for the Improvement of Living and Working Conditions, 2006 Air traffic controllers protest over excessive overtime, European Foundation for the Improvement of Living and Working Conditions, 2008 IATA, Press Releases & Briefs: Passenger Decline Stabilizes - Some Improvement in Freight, No 30, 25 June 2009 Analysis of the EU air transport industry, Final Report 2006, Cranfield University Association of European Airlines: Traffic Update (15 June 2009) CAP 749 The Effect of Liberalisation on Aviation Employment Economic Regulation Group, Civil Aviation Authority, 2004 Corporate Social Responsibility Report 2007-08, Air France-KLM group,

187 Policy Department B: Structural and Cohesion Policies ______

ERA 2007 Assembly - workshop on ‘Human Factors and Fatigue Management’, Bob Simmons, Director of Airworthiness and Safety, Baines Simmons Limited, Presentation to the workshop, October 2007 ERA 2007 Assembly - workshop on ‘Motivation, Lifestyle and Work Balance’, Janet Shields, SITA, Presentation to the workshop, October 2007 ERA 2007 Assembly - workshop on ‘Talent spotting: Is this industry still ‘sexy’ and how do we recruit and train without the traditional apprenticeships or guaranteed ‘jobs for life’?’ - Heather Darwin, Managing Director, Line Up Aviation Personnel Presentation to the workshop, October 2007 ERA 2007 Assembly - workshop on ‘Workforce Retention and Motivation: Train to Retain’, Richard Lewis, Managing Director, Marlborough, Presentation to the workshop, October 2007 European Low Fares Airlines Association, Position Paper ‘ELFAA’s view on how to save 5 billion euro, 12 million tons of CO2 and 21 million minutes of flight delays in the European airspace every year’, March 2008 Eurostat News Release, Air passenger transport up by 5% in 2006, December 2007 IATA European Outlook, January 2008 Industrial relations in the airline sector, European Foundation for the Improvement of living and working conditions, 2005 International Labour Organisation Working Paper ‘The impact of 11 September 2001 on the civil aviation industry: Social and labour effects’, 2001 International Labour Organisation, Restructuring of civil aviation: Consequences for management and personnel, 2001 International Transport Workers Federation - Civil Aviation Section, ITF Survey: The Industrial Landscape of Low Cost Carriers, 2002 InterVISTAS-ga2, The Economic Impact of Air Service Liberalisation, May 2006 ITF survey – The industrial landscape of low-cost carriers, October 2002 Joint CANSO-ETF statement for the second SES package, 28.02.2008 JP Morgan, European Airlines Outlook, May 2007 Pay agreement at airline subject to company’s non-unionised status, European Foundation for the Improvement of Living and Working Conditions, 2007 Representativeness of the European social partner organisations: Sea and coastal water transport, European Foundation for the Improvement of Living and Working Conditions, 2008 Report on the Aviation sector, European Foundation for the Improvement of Living and Working Conditions, 2002 Restructuring of civil aviation: Consequences for management and personnel, ILO, 2001 Ryanair under fire at Charleroi, European Foundation for the Improvement of Living and Working Conditions, 2003 Sector Dialogue Committee Civil Aviation, Work programme 2008-2009 Social data for the Air France-KLM group for 2006/07 Social developments in the EU air transport sector, Ecorys, 2007

188 Social and working conditions in the transport sector of the European Union ______

Supreme Court ruling will affect ‘right to bargain’ law, European Foundation for the Improvement of Living and Working Conditions, 2007 Survey and analysis of the scope and contents of existing legal rules governing Cabin Crew licensing, recruitment and vocational training in the 25 EU Member States, EGOA, 2007 The Oil Crisis and its Impact on the Air Cargo Industry, Institute for the Analysis of Global Security, April 2006 Transport and logistics sector: Air Berlin, Germany, EMCC Case Studies, European Foundation for the Improvement of Living and Working Conditions, 2008 Unions criticise Ryanair’s industrial relations practices, European Foundation for the Improvement of Living and Working Conditions, November 2003

Inland waterway transport

Commission Staff Working Document: Accompanying document to the Report on the impact assessment of proposals aiming to modernise and reinforce the organisational framework for inland waterway transport in Europe, SEC(2008) 23 Commission Staff Working Document: Annex to the Communication From The Commission On The Promotion Of Inland Waterway Transport ‘NAIADES’, An Integrated European Action Programme for Inland Waterway Transport, COM(2006) 6 final Council Directive 96/75/EC of 19 November 1996 on the systems of chartering and pricing in national and international inland waterway transport in the Community, European Council ETF Press Release, Unions set out social proposals for a revamp of Inland Waterway transport, 27 June 2007 European Federation of Inland Ports, The key role of European inland ports for the development of the waterway system in Europe, May 2008 Eurostat, Statistics in focus no 132/2007, Inland Waterways Freight Transport in Europe in 2006, Final Report for the ‘Study on Administrative and Regulatory Barriers in the field of Inland Waterway Transport’ - Part A, NEA, European Communities, 2008 First progress report on the implementation of the NAIADES Action Programme for the promotion of inland waterway transport, Communication from the Commission, Commission of the European Communities, COM(2007) 770 final IVR, Legal situation of inland waterway transport in the pan-European field, 2005 PINE - Prospects of Inland Navigation within the enlarged Europe, Buck Consultants International (The Netherlands), ProgTrans (Switzerland), VBD European Development Centre for Inland and Coastal Navigation (Germany), via donau (Austria), 2004 The sector social dialogue in transport: Working time firmly on top of the agenda, European Foundation for the Improvement of Living and Working Conditions, 1998 UNECE, Economic Commission for Europe Inland Transport Committee - Working Party on Inland Water Transport, Workshops on Inland Navigation Matters, March 2006

189 Policy Department B: Structural and Cohesion Policies ______

Maritime transport

Maritime agreement to form basis of new EU Directive, European Foundation for the Improvement of Living and Working Conditions, 2008 Representativeness of the European social partner organisations: Post and courier services – Cyprus, European Foundation for the Improvement of Living and Working Conditions, 2008 Port workers initiate protest action against illegal work, European Foundation for the Improvement of Living and Working Conditions, 2008 Workers take strike action to prevent privatisation of port operations, European Foundation for the Improvement of Living and Working Conditions, 2007 Guidelines To Shipping Companies: Equality Of Opportunity & Diversity In The European Shipping Industry, Eliminating Workplace Harassment & Bullying , ECSA and ETF, July 2005 New collective agreement for port workers sets pay guarantee, European Foundation for the Improvement of Living and Working Conditions, 2007 Improving the competitiveness, safety and security of European shipping, DG Tren, 2006 Employment trends in all sectors related to sea or using sea resources, Final report for the European Commission, DG Fisheries and Maritime Affairs, ECOTEC, 2006 ETF, Comments on the implementation process of the NAIADES Action Programme, 2008 ETF Priorities for Maritime Transport - Meeting with Mr Jacques Barrot, Vice-President of the Commission, Commissioner for Transport, Brussels, 5 April 2005 IVDS, Berufsprofile der Binnenschiffahrt im Donauraum, Wien, March 2007 Opinion of the European Economic and Social Committee on social policy within a pan- European system for regulating inland-waterway transport (own-initiative opinion), 2005 Innovative recruitment strategies in the fisheries sector, European Foundation for the Improvement of Living and Working Conditions, 2007 ETF Press Release, Maritime transport: no breakthrough on social protection hardens unions’ stance, 5 July 2007 ETF Press Release, Social Partners reach agreement to transpose ILO Maritime Labour Convention into EU law, 12 November 2007 ETF response to the first phase consultation of the Social Partners at Community level, Reassessing the regulatory social framework for more and better seafaring jobs in the EU, February 2008 ETF Maritime Transport Section Statement on the European Commission Proposed Integrated Maritime Policy for the EU, Is the Commission’s Maritime Package ‘An ocean of possibilities’ or ‘An ocean of deceptions?’, 2007 ILO, The impact on seafarers’ living and working conditions of changes in the structure of the shipping industry, 2001 Eurostat Statistics in focus no 94/2007, Maritime transport of goods and passengers 1997- 2005 ETF and ECSA, The mapping of career paths in the maritime industries, 2005 Eugen BARSAN - Constantza Maritime University, Social Aspects of the Seafarers' Integration on the Maritime Jobs Market, 2005

190 Social and working conditions in the transport sector of the European Union ______

Viking V International Transport Workers' Federation C438/05, Case facts, European Trade Union Confederation, 2007 Laval & Viking Cases, GMB European Briefing, June 2008 ECSA Newsletter N. 8/08, European Community Shipowners' Associations, 2008

General framework

Checchi, D. and Visser, J., ‘Pattern persistence in European trade union density’, European Sociological Review, 2005, 21(1): 1-22 Economic and Social Council, review of the transport situation in UNECE Member countries and of emerging development trends, Note by the Secretariat, ECE/TRANS/2009/3, United nations, 17 December 2008 ERF, European Road Statistics 2007 European Restructuring Monitor quarterly, European Foundation for the Improvement of Living and Working Conditions, Spring 2008 European Commission, Employment, Social Affairs & Social Conditions: EU employment situation and social outlook (June 2009) Eurostat, EU energy and transport in figures, Statistical pocketbook 2006 Eurostat, EU energy and transport in figures, Statistical pocketbook 2007/2008 Eurostat, EU energy and transport in figures, Statistical pocketbook 2009 Financial Deals Industry Insight - Transport and Logistics Q2 2008 ILO Working Paper, Violence and stress in transport, 2007 ILO, Safework bookshelf, 2007 ILO, Using the ILO Code of Practice on HIV/AIDS and the world of work, Guidelines for the transport sector, 2005 International Transport Forum, 2008, Key Transport Statistics 2008 Industrial relations in Europe, European Commission, DG Employment and Social Affairs, 2002 Innovative gender equality measures in the transport industry, European Foundation for the Improvement of Living and Working Conditions, 2007 Labour relations in a changing industry, Symposium on the Social and Labour Consequences of Technological Developments, Deregulation and Privatization of Transport, discussion paper No 1, Bert Essenberg (Sector Activities Department, ILO), 1999 Mix of confidence and scepticism in face of economic crisis, European Foundation for the Improvement of Living and Working Conditions, February 2009 News release euroindicators 19/2009, Eurostat, 13 February 2009 Recent developments in European social dialogue, European Commission, 2006 Restructuring and employment Anticipating and accompanying restructuring in order to develop employment: the role of the European Union, Communication from the Commission, Commission of the European Communities, COM (2005) 120 final, 2005 The sector social dialogue in transport: Working time firmly on top of the agenda, European Foundation for the Improvement of Living and Working Conditions, 2005

191 Policy Department B: Structural and Cohesion Policies ______

List of consulted websites

AEA http://www.aea.be AirportWatch334 http://www.airportwatch.org.uk Aviapartner group http://www.aviapartner.aero/eng/default.aspx Berlin Airport http://www.berlin-airport.de Birmingham Post http://www.birminghampost.net Clean Technica335 http://www.cleantechnica.com CNEL http://www.portalecnel.it Easy Jet http://www.easyjet.com European Commission - DG http://ec.europa.ecu/comm./competition/ Competition European Commission - DG http://ec.europa.eu/dgs/energy_transport/index_en.html Energy and Transport European Commission - DG http://ec.europa.eu/employment_social/social_dialogue Employment European Commission - http://epp.eurostat.ec.europa.eu Eurostat European Foundation for the http://www.eurofound.europa.eu/eiro Improvement of Living and Working Conditions - EIRO EUR-LEX http://eur-lex.europa.eu/en/index.htm European Monitoring Center on http://www.eurofound.europa.eu/emcc/ Change (EMCC) European Pension and http://www.epn-magazine.com/ Investment News (EPN) Magazine ETF http://www.itfglobal.org/etf/ ERA http://www.eraa.org/inside- era/generalassembly/Workshop/Workshop2007.php Forbes http://www.forbes.com/http://www.hse.gov.uk European Union Information www.euractiv.com/ Website (EU and Europe) ILO http://www.ilo.org/global/lang--en/index.htm Istituto Nazionale Assistenza http://www.inas.it Sociale (INAS) ITF http://www.itfglobal.org ITF Campaigns http://www.itfglobal.org/campaigns IRU http://www.iru.org Landespensionsamt (LPA)336 http://www.rvponp.fgov.be

334 AirportWatch is an umbrella movement which unites the national environmental organisations and the airport community groups opposed to the aggressive go-for-growth policy of aviation expansion outlined in the Aviation White Paper. 335 CleanTechnica is part of the Green Options Media Network. 336 Office National des Pensions Belgique.

192 Social and working conditions in the transport sector of the European Union ______

Lufthansa http://www.lufthansa.com Macchinisti Uniti337: http://www.macchinistiuniti.it/ Mail on Sunday http://www.mailonsunday.co.uk International Chamber of http://www.marisec.org/shippingfacts/worldtrade/ Shipping - International Shipping Federation: BBC news http://news.bbc.co.uk OSA online338 http://www.osaonline.com European Agency for Safety and http://osha.europa.eu Health at Work The Low Cost Airlines News http://peanuts.aero/low_cost_airline_news/ website: RoadTransport.com http://www.roadtransport.com/ Reuters http://www.reuters.com/ National Union of Rail, Maritime http://www.rmt.org.uk/ and Transport Workers (RMT) Information Agency Rzd http://www.rzd-partner.com Partners:339 The Seafarers' Benefits Advice http://www.seabal.org.uk/ Line Spiegel online http://www.spiegel.de Swiss info http://www.swissinfo.ch Transport and General Workers http://www.tgwu.org.uk/ Union (T&G) Unione Italiana dei lavoratori http://www.uiltrasporti.it/ dei Trasporti (Uiltrasporti) World Socialists http://www.wsws.org Workplace law network340 http://www.workplacelaw.net

337 Italian trade union representing railways and urban transport workers. 338 OSA online is a non-commercial site, providing information and resources about Obstructive Sleep Apnoea (OSA). 339 The "RZD-Partner" magazine is a business monthly edition supported by the Russian Railways. 340 The membership site for UK employers and managers, specialising in employment law, health and safety and premises management.

193 Policy Department B: Structural and Cohesion Policies ______

194 Social and working conditions in the transport sector of the European Union ______

ANNEXES

ANNEX I – TRANSPORT MARKET ANALYSIS

Table 4-1 shows the turnover produced for each mode of transport for every MS.

Table 4-1 – Turnover by mode of transport in 2006 (million EUR)

Total Road Road Railways Pipelines Inland Sea Air Travel Other* water transport transport agencies auxiliary transport & tour transport freight passenger operators activities transport transport

EU-27 1.210.000 280.000 91.000 78.000 8.100 5.500 90.000 120.000 153.193 384.202 EU-27 EU-15 248.523 83.728 146.825 359.578 EU-15 EU-12 31.477 7.272 6.368 24.624 EU-12

BE 10.538 1.816 307 3.602 2.503 5.847 16.535 BE BG 1.240 352 0 383 217 995 BG CZ 6.112 886 0 1.618 4.830 CZ DK 5.874 2.428 48 19.403 3.003 8.738 DK DE 198.470 28.213 14.927 15.853 1.784 1.735 24.172 13.879 19.803 78.104 DE EE 3.264 855 102 208 0 140 146 1.812 EE IE 2.433 606 2.040 3.289 IE EL 2.694 2.446 2.066 1.174 1.586 2.833 EL ES 108.156 36.352 7.938 1.831 0 11 1.852 9.498 17.860 32.815 ES FR 37.883 14.938 552 8.767 18.245 12.792 54.119 FR IT 135.762 43.128 6.919 5.650 2.174 206 10.673 11.852 11.045 44.116 IT CY 1.256 85 75 0 0 0 255 423 117 301 CY LV 796 158 0 53 206 226 1.447 LV LT 1.793 248 4 139 114 183 1.113 LT LU 4.245 1.035 155 395 0 6 27 1.716 267 644 LU HU 12.435 3.629 1.062 1.307 282 59 3 837 881 4.377 HU MT 953 39 42 0 0 0 50 349 198 275 MT NL 17.665 2.848 1.887 5.113 9.334 5.660 20.905 NL AT 35.833 8.057 3.176 2.413 365 107 9 3.291 4.052 14.364 AT PL 27.823 11.688 2.875 3.718 903 107 425 1.128 1.591 5.387 PL PT 4.586 1.223 37 552 2.824 2.623 5.102 PT RO 8.681 2.985 1.022 1.102 335 103 80 398 487 2.169 RO SI 3.809 1.641 185 416 1 64 174 411 917 SI SK 614 266 30 0 186 293 1.000 SK FI 18.661 5.075 1.685 807 0 19 1.937 2.413 1.403 5.321 FI SE 43.980 8.365 5.585 1.509 0 139 4.235 3.442 6.614 14.091 SE UK 213.592 36.625 17.038 10.475 641 112 9.544 28.325 52.230 58.602 UK

Source: Eurostat, EU energy and transport in figures, Statistical pocketbook 2009. Estimates (in italics) Notes:* : Cargo handling and storage, other supporting activities, activities of other transport agencies. The above figures refer to the turnover only of those companies whose main activity lies in the mode concerned. Economic activity according to NACE Rev. 1.1 classification. CY: 2005, MT: 2002

195 Policy Department B: Structural and Cohesion Policies ______

Table 4-2 shows the number of enterprises by mode of transport for every MS in 2006.

Table 4-2 – Number of enterprises by mode of transport in 2006 Total Road Road Railways Pipelines Inland Sea Air Travel Other* water transport transport agencies auxiliary transport & tour transport freight passenger operators activities transport transport

EU-27 1.141.000 600.000 329.758 888 131 8.800 10.150 3.450 78.227 109.596 EU-27 EU-15 439.019 241.985 9.632 3.062 57.322 86.858 EU-15 EU-12 160.981 87.773 518 388 20.905 22.738 EU-12

BE 7.511 2.069 303 107 161 1.230 2.434 BE BG 17.760 7.660 7.051 5 0 16 8 26 1.246 1.748 BG CZ 45.441 26.044 9.258 55 2 87 0 28 6.122 3.845 CZ DK 13.372 7.124 3.719 12 3 34 398 51 607 1.424 DK DE 85.740 33.985 24.227 239 38 1.151 1.560 422 9.617 14.501 DE EE 3.422 1.981 233 10 0 1 18 7 328 844 EE IE 6.913 341 0 114 25 278 797 IE EL 21.299 35.063 0 3.019 17 3.415 7.884 EL ES 222.381 133.912 65.600 7 0 40 194 69 9.092 13.467 ES FR 92.498 41.592 36.319 27 25 1.186 725 395 5.088 7.141 FR IT 151.409 97.810 22.997 38 14 766 738 253 11.397 17.396 IT CY 4.027 1.481 1.403 0 0 0 57 5 508 573 CY LV 4.701 2.311 696 14 2 7 27 17 453 1.174 LV LT 6.523 3.329 1.247 3 2 12 16 15 968 931 LT LU 911 445 172 1 22 7 17 93 154 LU HU 33.344 18.756 9.232 16 4 95 8 92 1.783 3.358 HU MT 2.438 346 1.007 0 0 0 154 19 669 243 MT NL 23.850 9.370 4.470 15 10 3.190 490 195 2.460 3.650 NL AT 15.106 7.147 4.918 26 6 73 9 157 1.552 1.218 AT PL 137.697 76.398 47.789 92 5 541 142 80 5.664 6.986 PL PT 28.014 12.119 11.765 1 4 333 199 71 1.586 1.936 PT RO 28.610 15.209 8.841 89 3 136 50 54 2.248 1.980 RO SI 8.367 6.382 888 8 26 38 32 464 529 SI SK 1.084 128 8 0 13 452 527 SK FI 23.279 11.054 9.158 5 0 77 244 66 1.144 1.531 FI SE 31.029 14.652 9.122 35 0 470 652 208 2.937 2.953 SE UK 65.809 34.086 12.045 97 10 242 1.176 955 6.826 10.372 UK

Source: Eurostat, EU energy and transport in figures, Statistical pocketbook 2009. Estimates (in italics). Notes: * Cargo handling and storage, other supporting activities, activities of other transport agencies. The above figures refer to the number only of those enterprises whose main activity lies in the mode concerned.Economic activity according to NACE Rev. 1.1 classification. CY: 2005, MT: 2002. Source: Eurostat,

196 Social and working conditions in the transport sector of the European Union ______

Table 4-3 shows employment by mode of transport for every MS.

Table 4-3 – Employment by mode of transport in 2006

Total Road Road Railways Pipelines Inland Sea Air Travel Other* water transport transport agencies auxiliary transport & tour transport freight passenger operators activities transport transport

EU-27 8.884.010 2.832.404 1.840.000 900.000 17.926 43.492 171.440 407.062 484.960 2.186.726 EU-27 EU-15 7.045.599 2.217.748 1.414.686 528.258 5.675 35.199 154.429 377.189 418.923 1.893.492 EU-15 EU-12 1.838.411 614.656 425.314 371.742 12.251 8.293 17.011 29.873 66.037 293.234 EU-12

BE 193.772 63.082 33.306 35.046 100 933 825 5.578 7.949 46.953 BE BG 145.803 37.918 25.354 31.834 0 1.562 4.000 2.470 6.015 36.650 BG CZ 265.922 103.372 46.848 63.450 110 250 0 6.788 11.231 33.873 CZ DK 137.941 41.123 30.973 9.238 100 142 14.980 5.653 6.334 29.398 DK DE 1.317.644 309.494 292.406 79.264 846 9.279 24.592 55.544 63.619 482.600 DE EE 37.235 13.849 6.131 3.430 0 93 1.000 728 1.859 10.145 EE IE 64.052 13.746 8.493 8.523 0 50 4.950 6.687 6.048 15.555 IE EL 195.310 44.625 76.675 7.574 75 0 18.402 3.791 14.391 29.777 EL ES 888.270 393.085 171.274 20.810 0 256 7.156 40.393 56.783 198.513 ES FR 1.125.058 348.956 219.964 171.500 961 3.595 13.744 72.397 42.381 251.560 FR IT 968.491 339.407 150.820 65.606 3.034 2.880 25.099 23.481 45.588 312.576 IT CY 19.642 2.415 2.426 0 0 0 4.725 2.435 2.913 4.728 CY LV 68.229 18.413 14.842 14.841 377 20 731 1.110 2.125 15.770 LV LT 85.571 36.571 18.632 10.900 79 145 1.635 829 3.104 13.676 LT LU 19.980 7.449 2.688 3.030 0 100 54 3.776 642 2.241 LU HU 203.376 67.818 53.026 44.206 577 1.218 30 2.667 6.322 27.512 HU MT 10.385 811 1.473 0 0 0 734 2.279 1.771 3.317 MT NL 351.835 122.950 37.500 38.281 120 13.219 6.996 36.000 22.927 73.842 NL AT 193.369 60.232 47.271 14.833 108 434 11 9.326 10.850 50.304 AT PL 590.438 224.808 148.702 120.780 3.332 1.254 2.858 5.551 17.599 65.554 PL PT 160.422 64.801 37.034 4.615 50 1.341 1.081 9.705 9.580 32.215 PT RO 292.710 76.417 85.053 42.301 7.589 2.941 1.068 3.528 8.604 65.209 RO SI 43.015 19.518 8.000 5.000 22 34 230 674 1.968 7.569 SI SK 76.085 12.746 14.827 35.000 165 776 0 814 2.526 9.231 SK FI 119.290 40.541 25.460 7.866 0 214 7.419 7.253 4.832 25.705 FI SE 225.002 71.027 58.826 8.188 0 1.145 14.506 7.477 12.449 51.384 SE UK 1.085.163 297.230 221.996 53.884 281 1.611 14.614 90.128 114.550 290.869 UK

Source: Eurostat, EU energy and transport in figures, Statistical pocketbook 2009. Estimates (in italics). Notes: * Cargo handling and storage, other supporting activities, activities of other transport agencies. The above figures refer to employment only in those companies whose main activity lies in the mode concerned. Economic activity according to NACE Rev. 1.1 classification. CY: 2005, MT: 2002.

197