Transcript Slide 1

DIALOGUE
The crisis, employment and Decent
Work: what can be done through
collective bargaining
Susan Hayter
Industrial and Employment Relations Department
DIALOGUE
Negotiating for social justice
Key questions:
• Impact of collective
bargaining?
• What role did collective
negotiations play during the
crisis?
• What impact is the crisis
having on collective
bargaining systems?
• What role can collective
bargaining play in equitable
recovery?
0.0
Source: Data from ICTWSS Database, Version 3 (2011)
TUD 1999
TUD 2009
United States
United Kingdom
Switzerland
Sweden
Spain
Slovak Republic
Portugal
Poland
Norway
New Zealand
Netherlands
Luxembourg
Korea
Japan
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Republic
Canada
Belgium
Austria
Australia
Trade Union density
DIALOGUE
Trade union density, OECD 1999 and
2009
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
Collective bargaining coverae
DIALOGUE
0.0
Source: Data from ICTWSS Database , Version 3 (2011)
CBC 1997
United States
United Kingdom
Switzerland
Sweden
Spain
Slovenia
Slovak Republic
Portugal
Poland
Norway
Netherlands
Luxembourg
Japan
Italy
Hungary
Greece
Germany
France
Finland
Denmark
Czech Republic
Canada
Belgium
Austria
Australia
Collective bargaining coverage, OECD,
1997 and 2007
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
CBC 2007
DIALOGUE
Impact: Equity and efficiency
• High coverage and coordination
associated with more equitable
outcomes
• Erosion of collective bargaining
institutions contributed to rise in wage
gaps
• Weakness of social partners and CB
limits potential role in labour markets
Collective Bargaining: Challenges 2008/2009
Workers
Management
Objectives:
Objectives:
• Job Security:
avoid dismissals
• Liquidity
• Protect income
• Reduce costs
• Fairness: costsaving
measures incl.
management
• Reduce production
• Retain qualified
staff
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DIALOGUE
Negotiated responses to the crisis
Strategies
of social
partners
Severity of the
economic crisis
Negotiated
Industrial
relations
system
response
Public
policies
DIALOGUE
Negotiating during the crisis
Bargaining agenda:
1. Reduce production and costs
2. Protect employment
3. Mitigate effects of redundancy
4. Protect earnings
5. Retain experience and improve
skills
6. Recovery
DIALOGUE
Negotiating during the crisis
Employment
security
Working
time
Compensation
France:
CFTC-CMTE, CFECGC, FCE-CFDT &
(UIC) for chemical
industry
(Sept 2009)
Germany:
Gesamtmetall & IG
Metal for metal
sector on shorttime work (2009)
•
South Africa:
NUMSA, Uasam
Solidarity & SEIFSA
for metal and
engineering (2009
– 2010)
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Extends statutory provisions for partial
unemployment
Improves level of compensation up to 80% for
partial unemployment
Encourages job retention and training
Reduce notice period for STW at company level to
one day, providing works council agrees
Introduce two addional modes to pay addtional
STW working allowances
Ease adoption of training measures through
opening clause – no additional STW allowances
need to be paid
Wage increases between 7 – 8% with exemptions,
increase in applications for exemptions
Increased use of STW, notification from 2 to 5
days
Extensive use of Training Layoff Scheme
All labour brokers to be registered with council
Argentina:
Deutz Agco
Motors & SMATA
(January ’09)
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Germany:
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Daimler & Works
Council
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(2009)
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Uruguay:
Los Piques SA &
Piques Worker‘s
Union (March
’09)
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Production workers suspended for 5 months (Feb
- June ’09); received 70% of basic salaries; company
cont. social contributions during period of
suspension
July – Sept. ‘09, workers faced cuts of 3-4
workdays; received 70% of their basic salaries;
company continued social contributions.
Extension of short-term working time (trucking)
Reduction in working time by 8,75% - no pay
Employment guarantee
Expiry of all temporary contracts
Postpone wage increase from May to Oct. 2009
Reduction of base salary for all executives
Temporary suspension of production (annual leave)
Reduced work days for 3 months (April – June ‘09)
as either: 5 workdays and 3 days off; 5 workdays
and 2 days off; or 4 workdays and 3 days off
Commitment to schedule each worker a minimum
of 152 hours per month (including paid holiday)
DIALOGUE
What have we learned?
• Inequality fuelled distributive conflict
• Coordinated IR systems facilitated adjustment:
- Tripartite social dialogue
- Multi-employer bargaining
- Procedural clauses provided certainty
• Interest-based negotiations facilitated
innovations e.g. information sharing
• Public policy supported integrative outcomes
e.g. short-time working schemes, training layoff
schemes
DIALOGUE
Impact on collective bargaining
• Reinforced decentralization
• Weakening of bargaining power
• Deregulation / re-regulation:
– Limiting scope of CB agenda in public sector
– Changes in the relationship between CBAs
at different levels
– Eliminating or re-regulating extension
provisions
– Recognition procedures and thresholds
“Labor cost adjustment can be facilitated by promoting
decentralized wage bargaining, removing indexation
mechanisms, and reducing dismissal costs….” IMF, 2011
“Reforms of labour market institutions leading to less
coordinated wage bargaining and more decentralised
wage setting,…. may reduce adverse public wage spillovers
and facilitate wage adjustment also in the private sector”, ECB,
2010
“In contrast to a fully decentralised system, an intermediate
degree would not tailor wage agreements sufficiently to the
circumstances of individual companies and would tend to
diminish wage differentials. Strong relative wage compression
would hinder employment….” OECD, 2011
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“The crisis has also put to the test longstanding dogmas that
blame labor-market rigidity for unemployment, because
countries with more flexible wages, like the U.S., have fared
worse than northern European economies, including Germany.
…… But there are ways out of this dilemma: strengthening
collective bargaining, restructuring mortgages, using carrots
and sticks to get banks to resume lending….” Stiglitz, 2011.
“The state can be all thumbs when it attempts intervention to
reduce income inequality. Nevertheless, tools do exist.
Progressive taxes on income and capital gains…., steps to
strengthen union recruiting and bargaining power…..”
Taylor, 2011
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DIALOGUE
Negotiating for precarious workers
Bargaining outcomes:
• Employment security
• Improved pay and benefits
• Skills development
Wages and
benefits
• Equal pay for
equal work
• Port Authorities & Federation of Maritime Dockers’ Trade
Unions of Argentina (FEMPRINA) (2005, 2006), equal pay &
working time
• IG Metal & Adecco for Audi (2007), equal pay (departing from
3 other collective agreements TAW confederations that
derogate).
• IG Metal & Stahl (2010), general wage increase and equal pay
for temporary agency workers.
• ABU, FNV, CNV & De Union, LBV (2009 – 2014) derogates from
equal treatment, only after 26 weeks.
• Wage
improvements
• Japan Post Holdings & Japan Post Trade Union (2008, 2010),
2,000 Yen increase in wages for fixed-term contract workers,
hire 2,000 contract as permanent
• Hindustan Unilever Limited & Sarva Shramik Sanghatna,
November (2008), substantial wage increases for temporary
agency workers (assisted by IUF)
Employment
security
• Limits to
externalization
• Regularizing
employment
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Tesco & SIPTU (2007), agency workers not exceed 10% of
workforce ; after 26 weeks on employment panel for direct
recruitment; equal pay.
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Road freight Bargaining Council, (2006/7) labour broking not
to exceed 30%, if supplied to client over two months
considered ordinary employee.
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METRORAIL & SATAWU (2009), 1063 fixed-term employed on
permanent basis
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Tamil Nadu Electricity Board & TNEB union (2007), 6000
temporary agency made permanent, progressive absorption
of remaining (21,600)
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Glaxo Smith Kline & Milk Food Factory Workers' Union
supported by IUF (2010), India, regularization of 443
temporary agency workers in a phased manner.
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South African Airways & SATAWU (2009), regularisation of
workers employed through a labour broker.
Skills
development
• Equal access to
training and
career
progression
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Aeon and Aeon trade union (2004), unified qualification and
evaluation schemes, equal training opportunities.
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NUMSA & AMEO (2009), short-term workers entitled to
participate in industry’s multi-skilling programme.
DIALOGUE
Negotiating for social justice
• Strengthen social partners
• Promote collective bargaining
• Getting it right: coordination and
articulation
• Need for knowledge raising on
alternatives
• Facilitate sharing of information
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