COLLECTIVE BARGAINING TRENDS EARLY 2005

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COLLECTIVE BARGAINING TRENDS EARLY 2005

• ETUC COLLECTIVE BARGAINING COMMITTEE
• MAY 2005

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DATA SOURCES

• European Industrial Relations Review
• New industrial relations Europe
• FEM/Eucoba
• WSI-Tarifarchiv
• General newsletters from FNV, CNV, Ver.di
• EPSU collective bargaining newsletter

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ON WAGES

• Austria
• Metal agreement (concluded 11/2004)
• 2.5 increase in minimum and effective wages
• New minimum wage thus becomes 1271 euro
• New wage structure covering blue and white collar
  workers with five automatic wage increases on a
  12 year time horizon
• Telecom agreement in Austria
• 2.1 increase in min and effective wage
• With 0.3 to be decided at enterprise level

4

• Austria
• Public sector 2.3 for 2005 (12 months)

5

• Czech Republic
• Public sector 13th and 14th month cut back from
  50 to 25 and 10 of monthly pay
• Increase by 5 in comparison with 2004

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ON WAGES

• Germany
• Metal sectoral agreement pay increase scheduled
  for March 2005 (2 plus 0.7one- off payment) is
  confirmed
• VW deal Pay freeze until 31/1/2007 and new
  employees to be paid at level of sectoral
  agreement of Baden-Württemberg in exchange for
  one-off payment of 1000 euro in 2005 (1.4 over
  28 months), performance related bonus from 2006
  on, job security until 2011 (103.000 job places)
  and detailled investment commitments
• Opel deal Sectoral pay increases to be offset
  by reduction of the (higher) in-house baremas.
  17 higher in-house barema to melt away.
  Substituting 30 of Christmas bonus with
  performance related bonus. More flexible working
  hours. Job guarantee untill 2010 (after 9000
  workers being retrenched) , additional training
  places, commitment on investing in 30 new car
  models
• Siemens (sales and maintenace department) 18
  of workers go from 40 hours a week to 35.8 hour,
  other workers increase working time from 35
  hours/ Holiday pay and Christmas bonus replaced
  by profit-related pay/ right on (unpaid) training
  for 50 hours a year/ employment safeguarded until
  September 2009.

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ON WAGES

• Germany
• Federal and local public sector No increase in
  public pay scales in next three years/ Instead,
  three one off payments (worth 1 in 2005).
  Christmas,holiday pay plus age/family related
  supplements to be replaced by by performance
  related bonus from 2007 on .
• Textiles 4 one off-payments of 108 euro in
  2005/ 1.8 wage increase in 2006/ similar opening
  clause as in metal sector to safeguard
  investments and jobs
• Chemical (West) 1.5 from end 2004
• Deutsche Post 2.7 (2005) and 2.3 (impact
  2006)
• Deutsche Telekom 2.7 over 15 months
• Construction Agreement ending in MArch 2004 has
  not been renewed

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ON WAGES

• Italy
• Three metal unions agree on joint demand 130
  euro (7.8) for 2005 and 2006.In case of company
  level round (covering four years) re-absorption
  of 25 euro. Employers offer 59 euro and open
  debate on an increase in working time
• Banking sector 150 euro a month or 6.45 for
  2004 and 2005 (with lump sum of 500 to compensate
  for lack of CA since 2003) / no clauses on
  introducing flexible staff leasing contracts
• 3,7 wage increase for public sector inscribed in
  the budget
• 6 million workers ( 25) waiting for renewal of
  sectoral pay agreement (some of the pay
  provisions expired in 2003)

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ON WAGES

• Spain
• Car company level agreements 0.4 increase plus
  revision clause to cover inflation
• Intersectoral agreement guideline on 2 plus
  sectoral productivity (including revision clause)
  delivers a range of 2 to 3 wage increase (with
  2.5 average)

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On wages

• Finland 2.5 in 2005/2.1 in 2006 (including
  union sector allowance and gender equality
  allowance) (note inflation zero in 2005 plus
  tax cut programm in return fopr incomes agreement)

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ON WAGES

• Sweden Wage increase in public sector and
  transport sector of 7.3 over 3 years, extra for
  low-paid workers
• Belgium Due to failure to conclude national
  agreement, government fills in the terms for the
  sectoral negotiating framework 4.5 maximum
  wage margin for 2005/2006 (with a forecast of
  3.3 wage indexation)
• Belgium Sectoral agreements are difficult to
  conclude and range between 4 and 4.5 effective
  wage increase

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ON WAGES

• NETHERLANDS
• 2004 average increase in CAs 1.3 (2003
  2.8)
• 2005 Trade unions accept reasonable wage
  demand. Set at 1.25 wage increase plus a maximum
  of 1.75 to recover the abolition of early
  retirement (2 to 3 of wage bill) and start
  building life carreer arrangements (also
  increased benefits in second disability year, in
  health care arrangements, child care
  arrangements)
• April 2005 50 agreements signed, most of them
  around 1 1.25, with one quarter of them below
  1 (some of zero )
• Metal 4.4 over next three years plus three
  months (including 1.4 drop in employees
  pensions contributions)
• Construction Since beginning 2004 talks for a
  new agreement are deadlocked
• ABN-AMRO deal 14th month plus bonus replaced by
  performance related pay with normal functioning
  employees earning the same as before /1.6 wage
  increase for 2005/ increased redundancy payment
  from 4 to 6 years of salary/ 600 jobs to go

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On wages

• Hungary Public sector pay (2004) stays behind
  inflation 3.9 versus 6,9 (effect of
  accountancy tricks, shifting payments from 2004
  into 2005)
• Hungary 2005 public sector plus 6
• France 1.8 pay increase agreed in public sector

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ON WAGES

• Ireland from 5.5 to 4.4 in 2005 (inflation
  2)
• Slovakia
• 7.3 pay deal at VW (inflation around 6) (with
  absolute wage levels at 150 of national average,
  pulling wages up in other parts of the country)
  8 wage increase at US Steel
• Agreement for 50 engineering companies 10
  increase in minimum pay scales, further local
  negotiations possible
• 4 wage increase for civil servants, with
  reduction in working time to be negotiated on
  local level

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ON WAGES OVERVIEW
16
ON WAGES OVERVIEW
17
ON WAGES Where is the bottom ?
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ON MINIMUM WAGES

• Estonia 8.5 for 2005 (aim of 41 of average
  wage by 2008)
• Spain 4.5 (1/1/2005) affecting 300.000 to
  1.000.000 of workers/ cost-neutral since employer
  social contributions are reduced/ minimum wage
  now subject to revision clause (upgrade in MW
  if inflation exceeds forecasts).
• Bulgaria 25 hike
• Ireland 9 recommended /young workers 70 of MW
• Lithuania 10 July 2005 (agreed in tri partitie
  council) (38 of average wage) (10 of workers
  paid at MW)

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ON WORKING TIME

• Austrian metal agreement Working day in a
  four-day week system can be extended to 10 hours
  (without overtime premium) and 12 hours (with two
  hours paid at 150 rate) plus simplification of
  flexible working time schemes (with bandwiths
  between 32 and 45 hours)

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ON WORKING TIME

• Germany
• Federal public sector employees 39 hour week
  implies longer working week in the West (from
  38.5 hours) and shorter working week in East
  (from 40 hours)
• Regional public sector Employers have given
  notice to the collective agreement and force new
  entrants to work longer than the 38.5 hour week
• VW- deal Overtime rate to be paid from 40 hours
  a week and from moment individual working time
  account is full (400 hours instead of 200 hours)
  / Introduction of lifetime working account (66
  hours a year) to finance early-retirement
• Employer study (DIHK) 40 hour week is already
  the norm in SMEs, 35 hour week under pressure in
  large companies

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ON WORKING TIME

• Germany
• Gesamtmetall registers 41 cases of longer working
  hours without wage adjustment
• Maggi Nestlé 20 minute breaks eliminated,
  annual bonus replaced by performance system, 5
  year job guarantee
• Deutsche Telekom Working hour reduction to 34
  hours with job security guarantee
• German rail from 38 hour week to variable 35-40
  hour week with those working less than 38 hours
  facing wage cuts

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ON WORKING TIME

• IG Metall/ Baden-Würtenberg concludes
• Agreement on flexible working time accounts to
  even out fluctuations in capacity (limited to 300
  hours over or below the sectoral standard).
  Company level agreement must respect the sectoral
  framework and decide on a case by case
  basis.Compensation is time-off, no pay.
• Agreement on individual long term working time
  account to use for early retirement/training
  needs. Limit of 152 hours annual input. Input
  from regular (35) working hours or from gliding
  working time system.

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ON WORKING TIME

• ISO studyGermany (Cologne) identifies trend of
  moderately increasing contractual working week as
  well as increasing actual working time (FTE)

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ON WORKING TIME

• ISO study for Germany Massive increase in time
  compensation at the expense of a fall in paid
  overtime (Reasons working time accounts plus
  de-industrialisation)
• Curbing overtime 600.000 extra jobs

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ON WORKING TIME

• Spain SEAT Production ( involving 500 jobs)
  re-transferred from Bratislavia due to five year
  CB agreement introducing working time accounts
  allowing up to 30 days unpaid overwork/paid leave
  plus partial retirement to lower the average age
  of the workforce

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ON WORKING TIME

• Netherlands Agreement in Social/Economic
  council to limit legal regulations to a maximum
  of 48 hour a week over an extended period and
  without differentiating overtime or non-overtime
  working. Rest is for bargaining/enterprise
  councils to decide. FNV fears that unions haven
  given way
• Netherlands/metal sector Three extra working
  days with 1.25 pay increase provided the works
  council agrees. Individual employees already
  working in 38 hours regime may refuse
• France Government continues to attack 35 hour
  week Quota overtime raised from 180 to 220 a
  year / New type of CA
• (accord du temps choisi) higher quota of
  overtime provided theres a sectoral/company
  agreement plus agreement with individual workers
  (or does individual agreement suffice ?) absolute
  limit remains 48 hours / SME continue to pay 10
  (instead of 25) bonus on overtime between 35 and
  39 hours / Time-savings accounts limits in
  putting in hours (22 days max) and obligation to
  use them in five years time abolished

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ON WORKING TIME

• Poland Abuse of excessive working time in
  warehouses adressed by Lopacka case

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ON WORKING TIME

• Belgium Government increases annual overtime
  limit from 65 to 130 hours/overtime hours to be
  made more attractive by having workers choose
  between extra holiday or extra pay plus change in
  tax regime.

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ON SYSTEMS OF COLLECTIVE BARGAINING

• Germany (IG- Metall data) Opening clauses in
  metal agreement result in 390 known company cases
  deviating from sectoral agreement
• 143 on working time
• 119 on wages
• 160 on holiday/ Christmas pay
• In 70 of cases, the company agreement clearly
  undercuts the sectoral agreement
• Gesamtmetall 113 deviating company agreements
  in 2004. In 47 cases no commitment from the
  employer

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• Hungary Sectoral committees start concluding
  sectoral minimum wage agreements

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ON LIFELONG LEARNING

• France (limited ?) follow-up on the company
  level of the national agreement on (the right to)
  vocational training (Dec 2003)
• Netherlands /metal agreement 0.45 and 0.4 of
  wages (2005/2006) to spend on low skilled
  youngsters and to develop qualification
  competences

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ON FLEXICURITY

• Finland Re-adjustment agreement with
• Right on individual employment programm for
  retrenched workers (three years tenure)/ up to 20
  days of notice period to be used for this
  employment programm/higher rate of unemployment
  benefit (retraining allowance up to 280 euro a
  month) for 185 days, financed by employers.

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ON FLEXICURITY

• France preliminary agreement on retraining for
  retrenched workers in SMEs (eight months
  re-adjustement at 70 or 80 of wage, to be
  financed mainly by public sector)

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ON FLEXICURITY

• Spain Agreement to discuss reform of labour
  market in order to reduce fixed-term and
  temporary working contracts (one third of workers
  in a fixed-term contract).
• Czech Rep Trade unions and employers to devise
  less restrictive rules on use of self employed to
  do jobs usually done by regular employees

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ON EARLY RETIREMENT

• Belgium Government decides to extend system for
  another two years, provided theres a sectoral
  agreement
• Spain Contratos de Relevo exist older
  workers retire part time and train part time
  yonger workers

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ON FREEDOM OF WORKERS FLOWS AND WAGE DUMPING

• Slovakian labour moving in into Hungary at 20
  lower wages and adressing labour shortages for
  investing MNEs
• Sweden Latvian construction case versus
  agreement electricians sector making it possible
  for foreign firms to join the sectoral employer
  organisation and pay lower than usual wages /
  Government to consider excluding forms from
  public procurement that have not signed CA with
  Swedish trade union

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ON FREEDOM OF WORKERS FLOWS AND WAGE DUMPING

• Germany to extend Endsendegesetz (posted worker
  directive) from construction to other sectors
• Background migrant labour undercutting wage
  levels (reports in meat packaging sector where
  26.000 replaced by workers at 4 euro an hour)
• Debate whether this is sufficient
  Ensendegesetz requires a collective agreement
  with a wage threshold that is meaningful

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ON FREEDOM OF WORKERS FLOWS AND WAGE DUMPING

• Denmark Danish court fines company paying less
  than local wage rates to imported workers
• Finland Embargo on 21 Estonian construction
  companies / 2400 (mainly Estonian) foreign
  workers in Finish construction / with impact on
  Estonian construction sector wage ( 20)

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ON EXCESSIVE MANAGEMENT PAY

• French CAC management plus 10 over 2004 (14
  over 2003)
• Sweden CEO average pay increase over 2003 of 2
  million SKr (100 pay increase in some cases)