The current state of social dialogue realization in Society 4.0 in the Czech Republic Evropská unie Evropský sociální fond Operační program Zaměstnanost The current state of social dialogue realization in Society 4.0 in the Czech Republic INFORMATION MATERIAL Prague August – September 2019 Elaborated by: TEAM OF AUTHORS OF ČMKOS Ing. Jaroslav Šulc, CSc., vedoucí týmu; Ing. Martin Fassmann; Doc. Ing. Pavel Janíčko, CSc.; Doc. Ing. Tomáš Pavelka, CSc.; Ing. Hana Popelková; Ing. Radim Hejduk; Mgr. Dušan Martinek; Mgr. Bohumil Čáp; Filip Matoušek; JUDr. Jitka Hejduková; JUDr. Jitka Hlaváčková This information material was elaborated within the project “Social Dialogue and the Society 4.0”, Reg. no. CZ.03.1.52/0.0/0.0/18_094/0010266, which is funded by the ESF funds through the Operational Program Employment and the state budget of the Czech Republic. © Českomoravská konfederace odborových svazů www.cmkos.cz Praha 2019 ISBN: 978-80-86809-27-4 CONTENT Executive Summary ................................................................................................5 Introduction.............................................................................................................6 Part 1. The First Industrial Revolution ..................................................................8 1.1 Factual Context............................................................................................8 1.2 Geographical Context ................................................................................10 1.3 Technology ................................................................................................10 1.4 Impacts on Economic and Population Growth ...........................................11 1.5 Other Impacts, especially Social Impacts ..................................................13 1.6 The Economic Cycle and its Response ......................................................14 Part 2. The Second Industrial Revolution .............................................................17 2.1 Factual Context .........................................................................................17 2.2 Geographical context ................................................................................19 2.3 Technology ................................................................................................20 2.4 Impacts on Economic and Population Growth ...........................................20 2.5 Specifics of the Second Industrial Revolution in the Territory of Today’s Czech Republic �������������������������������������������������22 Part 3. The Third Industrial Revolution ...............................................................24 3.1 Material and Technological Context ...........................................................24 3.2 Impacts on the labor market .....................................................................26 Part 4. The Fourth Industrial Revolution ...............................................................29 4.1 Technology Accompanying and Determining the Fourth Industrial Revolution .................................................................29 4.1.1 Exponentiality ..................................................................................29 4.1.2 Digitization and barriers to its full application ..................................30 4.1.3 Combinatoriality ..............................................................................32 4.2 First Applications in the Fourth Industrial Revolution ................................34 4.3 The Risks Borne by the Fourth Industrial Revolution and the Solutions to Face Them ................................................................35 3 Part 5. Trade Unions and Society 4.0 ..................................................................37 5.1 Discussion over the document Industry 4.0 Initiative ................................37 5.2 Alliance Society 4.0 ...................................................................................41 5.3 Outline of the Main Challenges to the Social Partners in Transition to Society 4.0 .....................................44 5.3.1 Demographic challenges ................................................................45 5.3.2 Challenges related to labor market changes ...................................46 5.3.3 Challenges related to Macroeconomic Developments .....................49 5.3.4 Challenges for High Efficiency of Alliance Society 4.0 ...................51 Part 6. ČMKOS - social partners and vision of the Society 4.0 .........................53 6.1 Institution ..................................................................................................53 6.1.1 Ethics .....................................................................................................53 6.1.2 Preparedness of Public Administration ..................................................54 6.1.3 Educational System ...............................................................................55 6.1.4 Social System ........................................................................................55 6.2 Social dialogue ..........................................................................................56 6.2.1 New Approach to Collective Negotiation ................................................57 6.2.2 New Challenges ....................................................................................58 Conclusions ...........................................................................................................60 References ............................................................................................................61 4 EXECUTIVE SUMMARY • The Czech lands have gone through all stages of industrial revolutions and are one of the most affected parts of the world by the Fourth Industrial Revolution. This is evidenced by the expected impacts on the labor market. • In the Fourth Industrial Revolution, it is necessary that the Czech Republic avoids the developmental delays it has experienced in all previous stages of industrial revolutions. The reason is the effort to approach economically more advanced western economies not only within abstract macroeconomic indicators but also in the realistic living stan- dard of citizens. • Trade unions are, and must continue to be, a key player in the implementation of Society 4.0, i.e. in the implementation of public policies aimed at strengthening or mitigating the effects of the Fourth Industrial Revolution on society. • The trade union movement itself has to respond to changes in the labor market. Consideration should be given to the new potential content of collective negotiation, which is likely to affect also workers’ digital rights, such as personal data protection and control. • A critical moment is to extend collective negotiation to other groups of workers who are presently forced into non-standard forms of employment, such as self-employ- ment in digital platforms. CMKOS, in cooperation with the European Trade Union Confederation, will act and find solutions in the context of the whole EU. • Occupational safety must cover new and increasingly unhealthy working environ- ments, such as the prevention of burnout syndrome, constant online disposition of an employee, etc. • Given that one has to respond quickly to the changes in the Fourth Industrial Revolution and is more likely to have more professional careers than just one, the public adminis- tration shall provide every single citizen with a sufficient network of affordable educa- tion services and give higher priority to lifelong learning. • Similarly, public services shall also ensure other aspects of the transition to the digital economy and focus on frictional (voluntary) and structural (involuntary) unemploy- ment, which can theoretically occur. A sufficient “social pillow”, which is currently underfinanced, will be crucial for trade unions. 5 INTRODUCTION The following information is written by CMKOS primarily with the assumption that the current form and content of social dialogue may soon prove to be outstripped, mainly owing to dynamic and complex transformations triggered by the forthcoming Fourth Industrial Revolution, both on the part of employees and employers. The time to look also in a social dialogue for the corresponding response of both partners heading towards its overall higher efficiency is approaching. The task for creating this document is extremely difficult for each of the tripartite participants, who should inevitably fulfill its task, i.e. defending the legitimate interests of those who have actually nominated them into the tripartite for this very purpose. Yet, the only thing that already seems to be virtually certain is the realization that the ongo- ing changes concern not only the economic system itself (and thus both social partners anchored in opposing positions given by the clash of labor and capital), but practically all systems linked and related to an economy on scales that are more and more transnational. Therefore, in connection with the grasp of the Fourth Industrial Revolution, it makes sense not only to talk closely about the Industry agenda 4.0 or Construction agenda 4.0 (and thus to understand the phenomenon of “4.0” typically only in terms of departments, sectors or unions), but, at the same time, urgently talk also about the Work agenda 4.0, Education agenda 4.0, Healthcare agenda 4.0 or Mobility agenda 4.0, and in the next step, certainly about Institutions 4.0 and, more broadly, about Society 4.0. And