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Collective Bargaining and the Management of the Crisis Ralf Goetz European Metalworkers’ Federation, EMF Fédération Européenne des Métallurgistes, FEM Europäischer Metallgewerkschaftsbund, EMB Collective Bargaining Summer College 13.-16. Sept 2009 Overview: CB and the Crisis Introduction: Ralf Goetz Examples of National Practices 1. Sweden: Kennet Morin (IF Metall) 2. France: Blandine Landas (FGMM-CFDT) Boris Plazzi (FTM-CGT) 3. Germany: Uwe Fink (IG Metall) 4. Italy: Sabina Petrucci (FIOM-CGIL) Barbara Pettine (FIOM-CGIL) 5. Czech Republic: Jaroslav Soucek (OS KOVO) Lucie Studnicna (OS KOVO) Facing and Fighting the Crisis • • • • • • • EMF Policy I Crisis: Background EMF Policy II Instruments Second common demand Future Perspectives Questions Collective Bargaining: Towards more Coordination Coordination of National Collective Bargaining Policies (Minimum Standards) Regional Network of Observers Information Exchange Network (Eucob@n) Coordination of national collective bargaining policies • Working Time Charter – Common Demand: 35 hours/week – Maximum 1750 Hours/year – Maximum 100 hours Paid Overtime • Flexibility must be negotiated Coordination of national collective bargaining policies • Wage coordination rule – prevent wage dumping and a downward spiral in undercutting working conditions – maintain Purchasing Power + balanced share of productivity gains – Productivity Increase can be used for Qualitative Aspects Other CB guidelines 1 • Vocational Training Charter – Individual Right for every Employee – Annual Plan Approved by Workers and Employees’ Reps – Costs Supported by Employers • Social Charter – Minimum guidelines on (early) retirement – Minimum guidelines on career interruptions – Minimum guidelines on sickness benefit systems Other CB guidelines 2 • Financial participation / flexible pay systems – Respect for voluntary nature – Financial participation wages – Trade union involvement and control mechanism • Precarious employment – Opposed to unsecure employment contracts/conditions – Need to provide job security, social security, … – Equal opportunities (in and outside companies) First EMF Common Demand • The Individual Right to Training guaranteed by collective agreements – Important step in coordination strategy > ex ante in stead of ex post coordination – Important new signal to employers: continue to coordinate our collective bargaining – Flexible choice list for implementation > integrating national systems and conditions – Campaign running during 4 year period – Road maps for implementation The Crisis – some backgrounds • Financial Crisis turned into an economic crisis. • GDP within the Euro Area is expected to drop by 4% in 2009. • This crisis happens globally - most severe economic downturn since 1929. • This is a systematic problem. • State Intervention and help and stimulus packages were all of a sudden available at a large scale. • International management of the crisis lacks coordination. EMF CB Policy in the Crisis • An active wage policy with the objective of a strong increase in real wages and income support • Secure Employment • Strengthening the European coordination of collective bargaining • Strengthening European cooperation at company level • Stabilizing lowest incomes by minimum wages • A redistribution of income from the top to the bottom is the best programme of economic revival in the current situation. Used Instruments I Two Sorts of Instruments can be found: • Gaining-Time-Instruments • Stimulus-Instruments • These CB Instruments are used in a policy mix. • The individual legal and political background strongly determines the choice of instruments by the unions. • Collective Bargaining at company and national / branch level varies within unions and countries. • Some instruments are rather shortime with a limited range. • Other instruments aim for fundamental changes in labour relations: Crisis is always also a chance. Used Instruments II Working Time – Working Time Reduction – Overtime cancellation – Flextime accounts – Short time work & Temporary layoffs Wage – Wage Increase and wage decrease – Minimum Wages Training – – Training and apprenticeship Qualification in the crisis Used Instruments III Social Security – Collective agreement of securing employment, dismissal of layoffs – Early retirement – Unemployment benefits Other – – – – – Insourcing Increased participation rights Company shares for employees Promoting employment for young people Industrial, Financial and Social Policy Second Common Demand • FOR MORE SECURE EMPLOYMENT, AGAINST PRECARIOUS WORK: – Erosion of what is classified as the 'norm', 'standard' or 'typical' forms of employment. – First victims of the system and of the current economic crisis . – Most vulnerable groups are young and migrant workers and, above all, women. – At the onset of economic recovery, precarious jobs will be amongst the first to be offered again, with worse conditions. Collective Bargaining: Future Perspectives • • • • European Framework Agreements EMF Counterpart More Common demands Architecture of Collective Bargaining at European Level • Anticipating changes in collective bargaining structures = importance of company level bargaining Examples and questions • The following questions are our leading questions for the discussion and should help you with your country reports: – Which effects did the crisis have upon the metal industries in your country? (e.g. unemployment, production ….) – Which impact does the crisis have upon collective bargaining? – Which instruments do you use in your country to come through the crisis? – Is working time an issue in the current debate?