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Department of Human Resource Management UNI-EUROPA Graphical
Annual
Collective Bargaining
Survey
2008
An Analysis By:
Professor John Gennard
Strathclyde Business School University of Strathclyde
Glasgow United Kingdom
October 2008
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CONTENTS
Page
Executive Summary 0
Introduction 0
Purpose of the Survey 0
Guidelines on Common Collective Bargaining Objectives 0
Questionnaire 00
Economic and Political Environment (a) Economic 00 (b) Tripartite Agreements 00 (c) Legislative Changes 00
Bargaining Claims 00
Date and Duration of National Agreements 00
Bargained Changes in 2008: Quantitative Changes 00
Bargained Changes in 2008: Qualitative Changes
Progress to Meeting the Guidelines for Bargaining Claims: 2000-2008 00
Figures
1. Guidelines for Common Collective Bargaining Objectives 00 2. Qualitative Changes to Agreements: 2008 00 Tables
1. Date of Agreements: 2008 00 2. Quantitative Aspects of the 2008 Guidelines: Bargained 00 Wage Increases 3. Achieving the Guideline: Number of Affiliates 00 4. Meeting the Guideline: 2000-2008 Inclusive 00 5. Meeting the Guidelines: 9 year average: 2000-2008 00
Analysis by Country
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Executive Summary
The 2008 Collective Bargaining Survey
The economic background for the 2008 collective bargaining round, as for
the last five years, was difficult. In Europe the graphical industry continued
to suffer from excess capacity, over investment, lower product prices, lower
turnover and increasing product market competition. As a result 2008 saw
further bankruptcies amongst printing companies, continuing mergers and
takeovers, the most prominent being the sale by Quebecor World of its
whole European operation to the Dutch private equity finance company
HHBV, enhanced relocation of work and investment to Central and East
Europe and to India and China.
Overcapacity, over investment, lower prices and lower turnover meant 2008
witnessed another fall in employment in the European printing industry.
This, in turn, brought a further decline in trade union membership amongst
graphical workers in Europe and a further consolidation of graphical trade
unions is taking place. The Finnish Media Union remains involved in
merger talks with five other trades in a project known as TEAM the purpose
of which is the merger of the six unions by 2010.
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The collective bargaining Agenda of graphical employees throughout
Europe in 2008 remained very much the same as in previous years. Their
corporate strategy has been to increase their market share by cost
containment, cost reduction, increased productivity and increased
investment policies. In the collective bargaining area this has meant
demands of their employees for greater flexibility in the use of labour,
including more flexible shift patterns and by increasing working time without
paying additional rates of pay.
In Spain the social partners at the multi-sector level and the central
government signed the 2008 Agreement on Collective Bargaining
establishing a guideline for pay increases of between 2 and 3%, pending for
the continuation of wage revision clauses, for the implementation of gender
equality plus in companies employing over 250 workers and for the
development of the Spanish government‟s Health and Safety at Work
strategy. In April 2008 in Ireland the national level social partners and the
central government launched formal negotiations over a new pay
agreement to be achieved within the framework ten year agreement entitled
Towards 2016 agreed in 2006. Bargaining centred on the protection of real
wages, pensions, legal protection of temporary agency workers, trade union
recognition and representation and investment in the public services. In
December 2007 in Hungary the National Interest Accreditation Council
which comprises representatives of the multi-sector employer and
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employee organizations and the central government agreed for the lower
paid an annual wage increase of between 5 and 7%.
Introduction
This report analyses the outcome of the 2008 collective bargaining round with
national graphical employers‟ organizations against the guidelines for common
collective bargaining objectives agreed at the Annual Conference on Collective
Bargaining held in Larnaca, Cyprus on 15 and 16 November 2007. The report also
evaluates the progress over period 2000-2008 inclusive (9 years) made by
affiliates in meeting the Guidelines for Common Collective Bargaining Objectives.
The Purpose of the Survey
The main aims of the Annual Collective Bargaining Survey are to:
1 Provide an overview of collective bargaining developments in the
year.
2. Monitor progress on meeting the Guidelines for Common Collective
Bargaining Objectives as established by the Annual Conference on
Collective Bargaining.
3. Assist the Conference to identify, and to establish, the key priorities
for the next collective bargaining round with national graphical
employers‟ organizations.
4. Improve the exchange of information to affiliates on national
collective bargaining rounds and to assist UNI-Europa Graphical
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(UNI-EG) to influence discussion at the ETUC about defining and co-
ordinating a common bargaining agenda.
2008 Guidelines on Common Collective Bargaining Objectives
These were agreed at the 2007 Annual Conference on Collective Bargaining (see
Figure 1). That Conference added to the common collective Bargaining objectives
minimum standards on training opportunities for older workers designed to ensure
that older employees enjoy the same rights to training, post education and further
education as all other employees.
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FIGURE 1
GUIDELINES FOR COMMON COLLECTIVE BARGAINING OBJECTIVES AGREED AT THE 2006 COLLECTIVE BARGAINING CONFERENCE
1. Provision of Information
a. Update regularly the Collective Bargaining Survey b. Reporting of national agreements concluded to UNI-EG c. Assessment of the bargaining results d. Continuous monitoring e. All affiliates are required to participate in the Annual Collective
Bargaining Conference
2. Information and consultation of the UNI-EG affiliates
Each UNI-EG affiliate commits itself to inform and consult the other UNI-EG affiliates on:
a. Its claims (before the opening of national collective bargaining) b. The results/developments of ongoing collective bargaining
The UNI-EG secretariat will coordinate the information and the consultation of its affiliates.
3. Social Dialogue
All affiliates are required to exert pressure on national employer organizations to engage in European Social Dialogue/Collective bargaining.
4. Regional Collective Bargaining
Support for regional/sub regional collective bargaining Committee.
5. Guidelines for Bargaining Claim Wages plus qualitative aspects (see below) should be at least equal to inflation plus national productivity.
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The qualitative aspects cover:
a) Working Hours Standard working time should not exceed 1,750 hours per year for a full time worker. The maximum amount of paid overtime should not exceed 100 hours per year after which compensatory time off (at bonus rates) arrangements should be encouraged as an alternative to paid overtime and to maximize employment opportunities. b) Further vocational training (FVT)
Link between FVT, improvement of qualification and wage increases
Establishment of an annual plan for FVT
Obligation on employers to inform each employee of the FVT plan
Individual right of each employee to FVT
Full union involvement in FVT
Cost free for employees (except with union consent or by collective agreement)
All time spent on FVT is working time – normally it should take place during normal working hours (specifications could be made by collective agreement)
Establishment of monitoring committees in companies
c) Equality
Preparation of negotiating aims/guidelines with equality officers
Equal pay audits to establish existing situations regarding pay
Concrete steps to achieve equality of wages between men and women as stipulated in the European Treaty
Family friendly policies for good work/life balance
d) Occupational pension schemes
In bargaining with employers over occupational pension schemes, affiliates should seek to achieve minimum standards of:
The employer‟s contribution to the pension fund be twice that of the employee.
The maximum length of employment in the industry to qualify for full pension be 40 years.
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The final pension as a percentage of average pay be 50 percent of the three highest years of earnings
Pension arrangements be transferable between graphical employers.
Pension funds be jointly managed by employee and employer representatives.
e) Health, safety and working environment
6. Transnational Companies
CBC will be asked to look at transnational company level co-ordination.
7. Transnational Solidarity
Restructuring procedure
All UNI-Europa Graphical affiliates agree that should any request be received from
any affiliate – through the UNI-Europa Graphical secretariat – regarding
restructuring in any multinational company, a bi-lateral or multinational meeting to
discuss the issue and agree any appropriate action will be arranged within seven
days of receiving the request.
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The Questionnaire
The questionnaire for the 2008 Survey contained an additional question to that
used by the 2007 survey. Affiliates were asked if their existing collective
agreements contained any provision for specific training opportunities for older
workers and if so what were they.
The data upon which this report is based is the Collective Bargaining Survey 2008
questionnaire sent to UNI-EG affiliates in May 2008. Useable returns were
received from 28 affiliates. Of these 9 reported changes to existing agreements
bargained in 2008 and 8 to changes implemented in 2008 under provisions of
agreements signed before 2008. In addition affiliates from seven countries – the
Czech Republic, Denmark, France, Montenegro, Poland, Slovakia and Switzerland
– provided information that national wage negotiations in the graphical sector had
not taken place, in 2008, in their countries. Pay in these countries was determined
at the workplace level.
The different bargaining issues covered in the 2008 questionnaire were:
1 the bargaining claims of affiliates
2 informing affiliates and the UNI-EG Secretariat of these claims
3 the start and finish dates of the agreement
4 the number of workers covered by the agreement
5 the bargained wage increase for 2008
6 the average annual increase of national productivity per head in the
country for 2008
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7 the average annual increase in the rate of inflation in the country at
the time the changes introduced in 2008 to employment conditions
were implemented.
8 the level of unemployment at the time of the wage increase in (1) the
country as a whole and (b) that country‟s graphical industry.
9 Bargained changes in 2008 in working time, paid holiday entitlement,
equality issues covering gender, race and disability as well as work
life balance, health and safety provisions, vocational training issues,
occupational pension schemes and provisions for specific training
opportunities for older workers.
As in previous years the membership of graphical trade unions in Europe
continued to fall and further consolidation of graphical trade unions took place. In
August 2007 the Finnish Media Union and five other unions entered into merger
preparation talks with the aim of creating the largest union in Finland to be fully
functional by 1 January 2010. The 2007 Congress of the Swiss union COMEDIA
voted, in the light of its falling membership and declining financial position, in
favour of examining the possibility of a merger with the Communications Union or
with UNIA.
The collective bargaining agenda of graphical employers throughout Europe in
2007 remained the same as in previous years. They pursued cost containment
and cost reduction strategies to maintain, and hopefully increase, their market
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share. They have, as in previous years, sought to negotiate greater flexibility in the
use of labour, including an increased use of temporary and agency workers, to
reduce overtime and shift work premia and to increase working time without paying
additional rates of pay.
(b) Pay Moderation Agreements
In Spain and the Republic of Ireland the social partners and the national
government agreed pay guidelines for 2007. In the Republic of Ireland in
September 2006 the national level social partners and the national government
had agreed a new national partnership programme entitled “Towards 2016” which
provided for wage increases of 10% across the unionised sector over a period of
27 months payable in four phases. As well as pay rises Towards 2016 includes a
range of non-monetary issues, including measures for a strict enforcement of
labour standards against employers. The pay elements of the agreement and the
accompanying industrial relations provisions are set within the ambit of an overall
10 year approach to social partnership, reflected in the title Towards 2016. This
suggests that similar deals on pay and related issues will be negotiated every two
or three years during the decade covered by the framework.
In Spain in February 2007 the main trade union confederations (CCOO and UGT)
and the employers‟ organisations signed the 2007 Agreement on Collective
Bargaining. The main objectives of the agreement included wage moderation,
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promoting open-ended employment contracts and equal opportunities for men and
women. The Agreement provided that wage increases be around 3%,
representing the forecast inflation rate of 2% plus 1% in respect of productivity
increases. It also promoted the general use of “wage revision clauses” in collective
agreements. These clauses provided compensation if actual inflation exceeded
the projected rate, ensuring that purchasing power was maintained. The
Agreement also highlighted the need to reinforce investment in education, training
and professional qualifications in order to change the basis of the Spanish
economy to one of competitive advantage based on increasing added value
instead of the traditional approach of cutting costs.
In May 2007 it became clear that in Finland a new national incomes policy
agreement between the social partners and the central government would not be
reached to replace the then existing current two and a half year central deal due to
expire on 30 September 2007 Instead collective bargaining was to take place at
the level of the individual sectors. In previous years the Finnish collective
bargaining system had been based on the conclusion of national incomes policy
agreements by central trade union and employers‟ confederations with the
government acting as a facilitator. Sectoral trade unions and employers‟
organizations then, in most cases, implemented the Central Accord through their
own industry-level agreements. In April 2007, however, the influential Finnish
Technology Industries employers‟ organization announced it would pursue sector
level bargaining when the present Central Accord expired. The Finnish Central
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Government announced the conditions were not in place for a new Central Accord.
The Finnish trade unions, including the Finnish Media Union, announced they
would attempt to co-ordinate their demands and try to ensure all sectoral
agreements had the same duration thus making it easier to return to centralized
bargaining in the future.
(c) Legislative Changes
(i) Framework Agreement on Harassment and Violence
On 26 April 2007 the EU level social partner organizations signed a framework
agreement on harassment and violence which condemned workplace harassment
and violence in all forms, promoted awareness raising and training on the issue;
required enterprises to have a clear statement outlining that harassment and
violence in the workplace will not be tolerated and specifying the procedure to be
followed in the event of problems; provided that appropriate action be taken
against perpetrators and support be provided to victims; that responsibility for
determining, reviewing and monitoring procedures rested with the employer, in
consultation with workers and/or their representatives. The agreement will be
implemented at member state level by the signatories‟ member organizations by
April 2010.
(ii) The Vaxholm Case
On 23 May 2007 the European Court of Justice‟s Advocates General gave opinion
in the Vaxholm/Lavel case. This case (see Collective Bargaining Surveys 2005
and 2006) raised questions about whether EU law can restrict trade unions in one
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member state from taking industrial action or if it can restrict the application of
collective agreements in a host member state. The Advocates General held that a
service provider from another member state is obliged to follow the host agreement
but any collective action in support of this must be proportional. The main points of
the judgement were:
i) the exercise by trade unions of a member state to take collective
action to reach a collective agreement with a foreign service provider falls within
the scope of EU law.
ii) The fact that Swedish law leaves it to the social partners to define the
terms and conditions of employment cannot of itself constitute inadequate
implementation of the Posted Worker Directive.
iii) The freedom to provide services does not prevent trade unions from
attempting to demand a service provider from another member State to subscribe
to a wage rate determined according to a collective agreement in the country
where the services are provided.
iv) Collective action must be motivated by public interest such as the
protection of workers and the fight against social dumping and must not be carried
out in a manner that is disproportionate to the attainment of those objectives.
v) Regarding proportionality of collective action the Swedish Labour
Court should determine whether the terms and conditions of employment laid
down in the collective agreement for the building sector involve a real advantage
significantly contributing to the social protection of posted workers.
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The Swedish graphical union welcomed the judgement stating that it upheld the
rights of foreign workers to have the same terms and conditions of employment as
Swedish workers and that union‟s have the right to take industrial action to prevent
social dumping. They were, however, concerned about the unclear statement
regarding the proportionality of collective action. The final ruling of the European
Court of Justice on the case is awaited.
iii) Germany
It has been a long held view in Germany that secondary, or sympathy, industrial
action is unlawful. This view, however, appears to have been reversed by a
judgement of the Federal Labour Court issued on 19 June 2007 dealing with a
„solidarity strike‟ by printers in support of striking newspaper journalists. During the
dispute in 2004 the company WE-Druck – which owned the Nordwest –Zeitung
newspaper – sought damages from Ver.di the union to which the 20 print workers
striking in support of the journalists belonged. The union defended its action by
arguing that the printing company was in reality part of the publishing company
through ownership links and business dependency. The lower Courts found for the
employer but the Federal Court noted that a strike organized by a trade union with
the aim of supporting workers covered by the same collective agreement to that of
the striking workers was covered by the German constitutional provisions of
association and associated activity. According to the Court‟s ruling associations
have the right to employ whatever means they wish to regulate employment
conditions by means of a collective agreement if such means were „proportional‟ to
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the ends. In this case the Court said given the legal status of the employer Verdi‟s
action was not disproportionate.
iv) Slovenia
The 2002 Law on Labour Relations regulating individual employment relationships
is an important element of labour legislation in Slovenia and is often called “The
Workers‟ Constitution”. The government and employers considered Slovenia
needed a more flexible labour market and therefore amendments to the 2002 law
were required. On 29 June 2007 the government and the social partners
concluded an agreement on the required amendments. They represented a
compromise between the rather radical demands of the employers to reduce
workers‟ rights and the trade union objective to defend them. The key changes to
the 2002 Law on Labour Relations included (1) the possibility to employ workers
for a particular type of work was set out more clearly enabling greater flexibility of
movement of workers from one job to another within a company (2) set out four
additional circumstances (eg replacing an absent worker) where a fixed term
contract may be concluded (3) the employer can terminate an employment contract
when a worker is absent from work for five consecutive days and does not inform
the employer of the reasons for the absence. (4) minimum periods of notice were
standardized in cases where employment is terminated by the employer due to
business reasons or reasons of incapacity (5) the maximum number of overtime
hours to be worked per year was reduced from 180 to 170. With the consent of the
worker overtime work can extend beyond 170 hours per year but cannot exceed
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230 hours and (6) if a worker proposed to the employer a change in their working
hours to improve the balance between their work and family life the employer must
explain in writing their decision for refusing the request.
Bargaining Claims : 2007
17 affiliates negotiated claims to existing agreements. Of these 60% (10) sought
only increases in pay. No other items were included in their bargaining claim. One
affiliate had a two item claim (wages and hours of work), another a five item whilst
two others, both in Denmark, tabled claims for the graphical and packaging sectors
covering hours of work, improved shift premiums, further vocational training, equal
treatment, work/life balance, occupational pensions, improved conditions for shop
stewards and longer periods of notice for an employer to terminate an employee‟s
contract of employment.
Before opening negotiations with the employer only one affiliate consulted with
another individual UNI-EG affiliate over their 2007 bargaining claims. Information
regarding the claims was provided by email. The same affiliate was the only one,
prior to the start of negotiations with the employers, to inform the UNI-EG
secretariat of their claims and again this was done by email.
The Date and Duration of National Agreements
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The dates and duration of the 29 agreements upon which the report is based are
shown in table 1.
i) Pre 2007 Agreements
In 2007 the members of 8 affiliates in 6 different countries received improvement in
their terms and conditions of employment under 10 collective agreements signed
prior to 1 January 2007. Four year agreements were operating in the Czech
Republic, and in the general print, packaging and small undertakings sectors of the
Italian graphical industry. In the Republic of Ireland a 2¼ year pay agreement was
operating under the multi-sector agreement entitled Towards 2016 negotiated by
the social partners and the central Irish Government. In Iceland print workers were
still working under a collective agreement signed in May 2004 to operate for three
and a half years. In Croatia and Norway graphical workers were working under
two year agreements, due to terminate in 2008, and which had come into operation
in 2006.
ii) Agreements made in 20007
In 2007 15 affiliates in 11 different countries bargained revisions to 16 collective
agreements. The affiliate in Austria, Hungary, Slovenia and the UK bargained one
year agreements. Two year agreements were negotiated in Belgium (print and
newspaper sectors), Germany and the Netherlands. A two and a half agreement
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was concluded in Finland. Three year agreements were bargained in Cyprus
(newspaper and general print sectors), Denmark (print and packaging,) and
Sweden (newspapers, packaging and general print sectors). Negotiations for a
new agreement in Spain which started in February 2007 had not been concluded
at the time this report was compiled.
The outcome of the 2007 collective bargaining round shows the continuation of
Year Number of one year agreements
Number of agreements of two years and over
Three year moving average (one year agreements)
Three year moving average (two year or more agreements)
20021 6 6
2002 8 1
2003 5 9 6 5
2004 5 7 6 6
2005 3 7 4 8
2006 2 10 3 8
2007 4 15 3 11
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the trend towards the negotiation of collective agreements with a duration of more
than one year. A moving trend analysis (see table above) gives a trend line in one
year agreements in a downward direction (from 6 to 3) but in an upward movement
for collective agreements with a duration of 2 years or more (from 5 to 11).
Currently almost ½m graphical workers in Europe are working under collective
agreements of more than one year‟s duration. Approximately 70,000 print
employees work under one year agreements of which four out of five are in the
United Kingdom.
Of the 29 collective agreements listed in table 1 the 2007 changes in wages and
other employment conditions became effective in the months shown below. As in
previous Collective Bargaining Surveys this indicates the co-ordination of
anniversary dates of agreements should be a feasible option. In 2007 79%,
compared with 72% in 2006, of agreements in table 1 the anniversary date for the
implementation of changes in the employment conditions of print workers occurred
in the first four months of the calendar year with the peak, as in 2006, being in
January (34% of agreements).
Month Number of Agreements % of Agreements
January
February
March
April
10
2
4
7
34
6
14
24
21
May
June
August
4
1
1
14
4
4
TOTAL 29 100
Bargained Changes in 2007: Quantitative Aspects
Table 2 shows the percentage pay increase at the national sector level for
graphical workers in 18 European countries. The bargained wage increase figure
for Denmark is the average increase in wages achieved in company level
bargaining. In Denmark, since 1992, wage negotiations have taken place at the
company level.
The average annual bargained wage increase at the sector level taking all 18
countries together, was +3.1% which was slightly higher than the 3% achieved in
2006. The range of bargained wage increases achieved in 2007 varied from a low
of a zero increase (Croatia and Czech Republic) to a high of +7% in Hungary.
Taking a three year moving average the annual bargained wage increase has
since 2005 been in an upward direction.
Year Bargained Wage Increase (%)
3 Year Moving Average
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2000
2001
2002
2003
2004
2005
2006
2007
+4.1
+3.3
+3.1
+2.9
+2.2
+2.5
+3.0
+3.1
+3.5
+3.1
+2.7
+2.5
+2.6
+2.9
The average annual bargained wage increase for 2007 (+3.1%), however,
exceeded the annual average national increase in inflation (+2.8%) so that in
general in 2007 graphical workers improved their real purchasing power by 0.3 per
cent. In 11 countries (Austria, Belgium, Denmark, Finland, Germany, Ireland, Italy,
Netherlands, Norway, Sweden and the UK) graphical workers in 2007 received, at
the national level, a bargained wage increase in excess of the annual average
increase in the rate of inflation. The corresponding figures for previous years is
shown below. A moving trend analysis reveals a clear upward trend in the number
of affiliates bargaining a real increase in their members‟ purchasing power .
Number of Affiliates gaining a bargained wage increase in excess of inflation
(2000-2007)
Date Number of Affilates
% of Affiliates 3 year Moving Average
2000
2001
8
11
47
65
23
2002
2003
2004
2005
2006
2007
9
6
9
12
13
11
53
35
53
71
76
61
9
9
8
9
11
12
The 2007 collective bargaining round brought, on average, a +0.3% increase in the
real wages of graphical workers in Europe. This is half the improvement achieved
in 2006 and is at the same level as achieved in the 2005 collective bargaining
round. The real wage gain for graphical workers when viewed on a moving
average basis was on an upward trend since 2003 but in 2007 this trend was
halted. No allowance has been made, however, as to how income tax and social
security charges in the 18 countries impacted on these real wage gains for
graphical workers.
Table two shows that in 2007 on a country by country basis six (Croatia, Czech
Republic, Hungary, Iceland, Slovenia and Spain) did not bargain a wage increase
in excess of their country‟s average annual rate of increase in inflation. Hungarian
graphical workers experienced the largest fall in real wages (-3.0%). One country
(Cyprus) bargained a wage increase equal to the annual average increase in
inflation. The range of real wage increase varied from a low of 0.3% in Ireland to a
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high of +3.5% in Norway. Five countries (Belgium, Germany, Netherlands, Norway
and the United Kingdom) received real wage gains in excess of 1%.
In Belgium new two year agreements were concluded in the general print and
newspaper sectors. Both provided for a pay increase of 5.4% in each of the next
two years. In addition both agreements provided for an extra days paid holiday for
those employees who have worked continually for 25 years for the same company.
Bargaining Round
Bargained Wage
Increase (%)
Average Annual
Increase in Inflation (%)
Real Wage Gain (%)
3 year moving
Average: Real Wage Gain (%)
2000
2001
2002
2003
2004
2005
2006
2007
+4.1
+3.3
+3.1
+2.9
+2.3
+2.5
+3.0
+3.1
+3.3
+3.1
+2.7
+2.8
+1.8
+2.2
+2.4
+2.6
+0.8
+0.2
+0.4
+0.1
+0.5
+0.3
+0.6
+0.3
+0.5
+0.2
+0.3
+0.3
+0.5
+0.4
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In Cyprus there are two separate national collective agreements which cover, on
the one hand, the printing industry and on the other, newspaper employees. In
2007 new three year agreements were negotiated in the printing and newspaper
sectors. In the print agreement the wage increase was 2.1% and that in the
newspaper sector 2.7%. Salaries in Cyprus are made up of the basic salary plus a
cost of living allowance (COLA) which is automatically revised every six months.
In Denmark a new three year collective agreement for the printing and the
packaging sectors became operative on 1 March 2007. They both contained
improvements in vocational training, parental and maternity leave, union
organization, holiday entitlements, shift premiums and employer pension
contributions (see qualitative section below). In addition under the graphical sector
the pay of apprentices was increased by 3.5% per year. It was estimated each of
these new three year agreements will increase overall wages costs in their sectors
by 4% per year.
In Finland in October 2007 the Finnish Media Union imposed an overtime ban in
the graphical industry sector wide pay negotiations. This was in response to the
employers demand to introduce three shift working even in the absence of local
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agreement. This action brought the employer back to the bargaining table and the
overtime ban was lifted. A two and a half year agreement to operative from 18
October 2007 was eventually agreed providing for a 10.1% increase in wages in
three stages. 3.9% was payable from 18 October 2007, a further 3.2% increase
from 1 October 2008 and a final increase of 3% on 1 October 2009. During these
negotiations the Finnish graphical employers stressed that comparisons with
wages of other workers in Finland were no longer relevant. Comparisons now had
to be with the wages of graphical workers in other Nordic countries and/or the
Baltic States.
In Germany after the current agreement ended on 31 March 2007 Veri di proposed
a 6.5% pay rise for its members employed in the German printing industry. The
employers resisted the claim but following, on 9 March 2007, industrial action by
some 10,000 workers in 117 German printing plants a new agreement to operate
for two years came into effect from April 2007. There was to be a “three months”
(April – June 2007) period without any pay increases followed by a general pay
increase of 3% from 1 July 2007 and a pay increase of 2.1% from 1 July 2008. The
existing part-time early retirement system for older workers continues until 31
December 2009.
In Hungary 2007 saw the negotiation of a new one year agreement covering the
printing industry and provided for a basic wage increase of 7%. It also provided
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that the amount of paid overtime per employee per year should not exceed 300
hours.
In Iceland on 1 January 2007 employees in the graphical industry received pay
increases of 2.9% whilst on the same date the employer‟s contribution to the
pension fund increased to 8%. The employee contribution remained unchanged at
4%.
In Ireland the starting date for the first phase of a 10% increase in pay over a 27
month period varied across the private sector. The 3% increase for the first six
months of the 27 month agreement came into force in the graphical industry on 1
July 2007. In addition the agreement accepted pensions in terms of both their
adequacy and their coverage where collective bargaining issues, contained a
general package of measures to enforce employment standards against employers
and provided measures to increase the levels of workplace learning and the
upgrading of skills.
In Montenegro 2007 saw no collective bargaining in the graphical sector. The
country‟s biggest state owned publishing company (POBJEDA) is to be privatized
and purchased by a multinational company. The graphical trade union fears it will
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be unable to maintain wages and conditions and other worker rights following the
privatisation.
The negotiations in Norway in 2007 were done by the L.O. on behalf of all unions
in the private sector. The negotiations were held on the basis of the prevailing and
future economic situation. On 29 March 2007 the Norwegian Confederation of
Trade Unions (LO) and their employer counterparts, NHO agreed a general wage
increase of NOK 2.50 and an increase of NOK1 for those employees who were
earning below 90% of the average wage. There followed local negotiations in
which graphical workers in Norway were on average able to gain wage increases
of 4.5%.
In Portugal over the last eight years relationships between the graphical
employers and graphical trade unions have been difficult. The employers are
refusing to negotiate at the sector level. They are reluctant to grant wage
increases at any level. The graphical unions are very much on the defensive and
are pessimistic about the future.
In Sweden new three year agreements were negotiated in the printing, newspaper
and packaging sectors. The printing and packaging agreements provided for an
increased premium for pensions worth a wage increase of 0.2% per year, a
decrease in working hours worth a wage increase of 0.5% per annum and
29
increased pay rates of 3.35% in printing and 3.38% in packaging. The newspaper
agreement provided a pay increase of 3.3% but there was no decrease in working
hours agreed. There was an increased employer contribution to the pension fund
and an additional cost to the employer for transferring four days off to days off with
pay.
In the United Kingdom the wage settlement for 2007/2008 with the British Printing
Industries Federation provided for increases of £8.70 per week (3.3%) for craft
employees. The agreement provided for a cash increase only. A similar deal was
agreed with the Scottish Print Employers‟ Federation.
Meeting the Quantitative Aspects of the Guidelines
The Bargaining Guideline is that the bargained wage improvement should be at
least equal to the sum of the increases in the average rate of inflation plus the
average annual rate of increase in national productivity. The table below shows the
extent to which in the 2007 collective bargaining round graphical unions in Europe
achieved this Guideline. It shows
In three countries (Sweden, Finland and Norway) the Guideline Target was
exceeded.
30
Two countries (Belgium and Denmark) were within 0.5% percentage points
of achieving the Guideline Target
Two countries (The Netherlands and Germany) were within 0.6 to 1% of the
Guideline
Percentage Points within Achieving the Wage Guidelines Target
Number of Countries
Exceeded the Guideline
Within 0.5%
Within 0.6% - 1%
Within 1.1% - 1.5%
Within 1.6% - 2%
Within 2.1% - 3%
In Excess of 3%
3
2
2
2
2
3
4
Total 18
Two countries (Ireland and Italy) were within 1.1 to 1.5 percentage points
of achieving the Guideline target.
Seven countries (Austria, Cyprus, Iceland, Hungary, Czech Republic,
Slovenia and Croatia) were more than 2 percentage points away from
achieving the Guideline Target. In four countries, (all of which were in
central and eastern Europe), the gap between the sum of inflation plus
productivity and the bargained wage increase was in excess of three
percentage points.
31
Although in fourteen countries the UNI-EG affiliates bargained wage increases
below the guideline target in seven changes to the qualitative aspects of the
national agreements were negotiated. The cost to the employer of these
enhancements is not easy to calculate but if an estimate is attempted it is likely that
in one case (Denmark) the value of the bargained qualitative changes more than
offset the gap between the bargained wage increase and the sum of inflation plus
national production.
Bargained Changes in 2007: Qualitative Aspects
Figure 2 shows the qualitative changes to national level collective agreements
becoming effective in 2006. In seven countries (Belgium, Cyprus, Denmark,
Hungary, Iceland, Ireland and Sweden) improvements in the non wage aspects of
the sector wide collective agreement were achieved. This is almost double the
number of countries relative to the 2006 collective bargaining survey. A moving
trend analysis shows the trend line
The Number of Affiliates Bargaining Qualitative Changes in Collective
Agreements, 2001-2007
32
Bargaining Round Number of Affiliates Three Year Moving Average
2001
2002
2003
2004
2005
2006
2007
11
9
9
6
9
4
7
10
8
8
6
7
for the negotiation of qualitative changes to sector wide collective agreements was
downwards over the period 2001 to 2006 inclusive. In 2007 this decline was
reversed. Even so the collective bargaining agenda in the graphical industries of
Europe is narrower today than it was some five years ago. The Survey does,
however, show the increasing importance of pensions in the collective bargaining
agenda. 2007 saw improvements, in five countries in occupational pension
arrangements, usually in the form of the employer increasing their contribution into
the pension fund.
Reduced Hours of Work
33
In Sweden the new 2007 collective agreements in the general print, packaging and
newspaper sectors provided for a further 12 minutes off the working day. The
Swedish Graphical Workers Union estimates that this is the equivalent of 1 day off
the working year or to a pay increase of 0.5%. Taken with previous such
improvements (see Collective Bargaining Survey 2003, 2004, 2005, 2006)
graphical workers in Sweden are now working five days a year less than five years
ago.
In Hungary the 2007 collective agreement contained a clause restricting the
amount of paid overtime per employee to 300 hours per year. Employees can, if
they wish, take time off in lieu of overtime working.
In Denmark the new agreement provided agreements in the packaging and
General Print sectors if the employer wants to change an employee‟s pattern of
shift working, for example from day to night shift then the period of notice the
employer must give is increased to 3 days. In the packaging sector the agreement
also permits an employee to refuse to work overtime after working a night shift.
Holiday Entitlement
In Belgium the two new two year agreements in the printing and newspaper
sectors provided for an additional days holiday for employees who have worked
continuously for the same employer for 25 years.
34
In Denmark the new three year agreements in the general print and packaging
sectors provided employees with Free Choice Accounts under which such an
account is established for each employee. A percentage of the total income of the
individual worker is entered into the individual account and the sum of money
involved can be used by the employee for holidays, maternity leave, retirement
purposes or be paid out in cash. The percentage of total income to be paid into
these individual accounts is from 1 May 2007 0.5%, from 1 May 2008 0.75% and
from 1 May 2009 1%.
Equality Provision
In Denmark the new agreement covering white collar employees improved
social/equal rights. Existing arrangements include 4 weeks before birth and 16
weeks after birth, of maternity leave and 6 weeks of parental leave which can be
taken by either the father or the mother. The new agreement includes a further
three weeks of full pay parental leave. These weeks are reserved for the father.
Three of the existing weeks are reserved for the mother. These 9 weeks‟ parental
leave are not compensated at full pay and have a maximum of 135 DKK.
35
In Denmark the new agreement covering the printing and the packaging sectors
provided for increased occupational pension during maternity leave and for the
flexible and free planning of the 10 weeks‟ fully paid parental leave between the
mother and father. Between the 15th to the 48th week (in the packaging sector) and
the 30th week (in the print sector) after the birth.
Further Vocational Training
In Denmark the new agreements covering the printing and the packaging sector
give employees the right to two weeks per year vocational training with 85% pay
for training which is not relevant to the employee‟s current job or to the current
employer but which is still relevant for the graphical and packaging sector as a
whole. „Competency Funds‟ are to finance this training. The fund becomes
operative from 1 April 2009.
Pensions
In Belgium the new agreements in the printing and newspaper sectors provided
for the employer to pay 0.25% of an individual‟s weekly salary into the sector
occupational pension fund.
In Denmark the new agreements provide for the employer payment to the
supplementary pension system to increase on 1 July 2008 from its present level of
10.8% to 11.1% and on 1 April 2009 to 12%. The employer finances 2/3 of these
contributions and the employee one third.
36
In Iceland 2007 saw the employer‟s contribution to the pension fund increased to
8%. In Sweden the employer contribution to the pension fund also increased. In
Ireland the Towards 2016 Accord put pensions centre stage. The Irish
government and the social partners agreed that pensions in terms of both their
adequacy and their coverage be dealt with as a priority issue in that industrial
relations issues arising from disputes relating to pensions schemes may be
referred to the National Superannuation Body by either party. The Accord also
commits the Irish government to transpose into Irish law, by the end of 2007, the
optional pension provisions of the EU Directive on the Transfer of Undertakings
whereby member states may, if they choose include company pension schemes
amongst the rights and obligations transferred to a new owner.
Other Significant Changes
In Cyprus both the new agreement in the printing and newspaper sectors provide
for an increase of 0.25% in the employer‟s contribution (from 6% to 6.25%) to the
employees Provident Fund.
In Ireland the Towards 2016 Account contains measures to enforce
employment standards, including the creation of the post of Director of
Employment Rights Compliance. It also makes provision for a range of limited
37
measures that could act as a disincentive to any employer wishing, for example, to
offer voluntary redundancy to existing unionized workers on good pay and
conditions and simply replace them with workers on legal minimum rates. To
counter such developments the Accord provides that a special redundancy panel
will be established to advise the Minister for Enterprise, Trade and Employment on
whether a particular case should be referred to the Labour Court for a binding
opinion. The intention is to address exceptional collective redundancy situation
by introducing an element of labour market „protection‟ to avert the possibility of the
collective compulsory replacement of existing workers by lower paid workers.
The new deal in the graphical and packaging sectors in Denmark also contained a
number of measures to strengthen trade union organization. In that only shop
stewards can represent complaints and other issues to management for trade
union members and that only shop stewards can negotiate agreements locally in
the enterprise. The agreements also contain improved shift rates. In the packaging
sector shift premiums are to be increased by 18% over three years. In the general
print sector evening shift premiums are to increase by 24.10% over the next three
years and whilst night shift premiums will increase by 26.5% over the same period.
Progress in meeting the Guidelines for Bargaining Claims, 2000-2007
(a) Overall
38
UNI-EG has data on a common basis for 13 of its affiliates covering the period
2000-2007 inclusive. These affiliates are from Austria, Belgium, Cyprus, Denmark,
Finland, Germany, Ireland, Italy the Netherlands, Norway, Spain, Sweden and the
UK. Over the past eight years the majority of UNI-EG affiliates have experienced
some difficulties in achieving a bargained pay settlement equal to the sum of the
increases in the annual average rate of inflation and the average annual increase
in national productivity. Taking the eight years as a whole only eight affiliates have
succeeded in bargaining at the sector level pay increases in excess of the sum of
inflation plus productivity. The affiliate, however in Norway have achieved this
outcome in four years.
In five (2000,2002,2005,2006 and 2007) of the eight bargaining rounds a number
of affiliates achieved bargained pay increases within half a percentage point of the
bargained Guideline Target. In seven of the eight bargaining rounds covered in
table 3 a significant number of affiliates obtained bargained pay increases at the
sector level within 0.6 to 1 percentage point of the Guideline Target. Over the
period 2000 to 2007 inclusive the number of affiliates bargaining a wage increase
greater than one and a half percentage points below the target figure of inflation
plus productivity declined.
Table 4 shows for each of the eight bargaining rounds separately and for the eight
as a whole (1) the average annual increase in inflation (2) the average annual
increase in national productivity per head (3) the sum of the increase in inflation
39
plus productivity (4) the average bargained wage increase and (5) the average
shortfall of the bargained wage increase from the sum of inflation plus national
productivity increase. To smooth over fluctuations in the data a three year moving
average analysis was undertaken. The main results are:-
Taking a three year moving average for the eight collective bargaining
rounds taken together the trend line for graphical workers in Europe in general in
the gap between the bargained wage increase and the sum of inflation plus
productivity has been on an upward trend. In general therefore, over the last eight
years the benefits of productivity gains have been going more to graphical
employers than to graphical workers in the form of even greater improvements in
their employment conditions.
Over the last eight years graphical workers in Europe have succeeded in
maintaining their purchasing power. In succeeding in maintaining their real
purchasing power, graphical workers in Europe have achieved an important
objective of their co-ordination of national bargaining in a European context policy,
namely that over the medium term nominal wages should at least compensate for
inflation.
(b) Country by Country Analysis
40
The largest real wage increase for graphical workers over the past eight years
have been made in Italy (+3%), Cyprus (+1.8%), Norway (1.1%) and Sweden (1%).
The lowest gain in real wages, taking the eight collective bargaining rounds as a
whole, has been in Germany (0.3%), the Netherlands (0.4%) and Belgium and
Austria (both 0.5%). Table 5 also shows that taking the eight collective bargaining
rounds as a whole no affiliate has succeeded in bargaining pay increases in
excess of the eight yearly average of the sum of the annual increase in inflation
plus the average annual increase of national productivity per head. In two
countries, (Norway and Sweden), however, the qualitative changes negotiated by
affiliates to their national sector wide agreements would probably, if costed, more
than compensate for the gap/shortfall between the eight yearly average for the
bargained wage increase and the sum of inflation plus productivity.
41
Figure 2
Qualitative Changes to Agreement : 2007
Hours of Work
Over time Holiday Entitlement
Equality Provision
Further Vocational
Training
Pensions Other
Reduction of 12 minutes off the working day
The amount of paid overtime per
employee restricted to 300 hours per year.
Overtime working hours can be taken in time-off.
Overtime payment increased by 3%.
Improved notice
time for shift
workers in case of shift changes
1 Day extra holiday
for those employed
continuously for 25 years in the same firm.
Free choice salary account established for each employee
which can be used for holidays, training, pension or as cash.
Increased occupational
pension during maternity leave.
Improved
parental leave
Competency
Fund to finance
2 weeks training not relevant to employee‟s job.
Employer
contribution to
pension scheme increased to 0.25%.
Employer
contribution to the pension fund increased to 8%.
Employer contribution to
the pension fund increased
Payment to
supplementary pension system
increased from present rate of 10.8% to 11.1%.
Social partners to deal with
pensions as a priority issue.
Employer
contribution to the
employees Provident fund increased from 6% to 6.25%.
Shop stewards given
compensation for hours spent outside
normal working hours
Only stewards can
negotiate agreements locally in the enterprise.
Training for new shop stewards.
Measures to enforce
employment standards including the creation of the
post of Director on Employment Rights Compliance.
Action on the case of exceptional collective
redundancy situations
SWEDEN HUNGARY
DENMARK
BELGIUM DENMARK
ICELAND
SWEDEN
DENMARK
DENMARK BELGIUM
DENMARK
IRELAND
CYPRUS
DENMARK
IRELAND
42
Table 1
Date of National Agreements : 2007
Country Date and Duration of the Agreement
Austria One year agreement (01/04/07 – 31/03/08)
Belgium Two year agreement (01/01/07 – 31/12/08) Print
Two year agreement (01/01/07 – 31/12/08) Newspapers
Croatia Two year agreement (01/06/06 – 31/05/08) Print
Cyprus Three year agreement (01/01/07 – 31/12/09) Print
Three year agreement (01/01/07 – 31/12/09) Newspapers
Czech Republic Four year agreement (24/3/04 – 31/12/07) Print and Newspapers
Denmark Three year agreement (01/03/07 – 28/02/10) White collar Print
Three year agreement (01/01/07 – 28/02/10) Blue collar Print
Three year agreement (01/01/07 – 28/02/10) Packaging
Finland Two and half year agreement(18/10/07 – 31/4/10) Print – 18/10/07 – 30/4/10
Germany Two year agreement (01/04/07 – 31/03/09)
Hungary One year agreement (0101/07 – 31/12/07) General Print
Iceland Three and a half year agreement (17/05/04 – 31/12/07)
Ireland Two year three month agreement (01/12/06 – 31/03/09) Towards 2016 Accord
Italy Two year agreement (01/01/06 – 31/12/07) Print
Four year agreement (01/04/05 – 30/09/09) Packaging
Four year agreement (01/01/05 – 30/06/09) Small Undertaking
Netherlands Two year agreement (1/1/07 – 31/12/08)
Norway Two year agreement (01/04/06 – 31/03/08) Print
Two year agreement (01/04/06 – 31/03/08) Packaging
Two year agreement (01/04/06 – 31/03/08) Newspaper
Slovenia One year agreement (01/08/07 – 31/07/08) Print
Spain Three year agreement (01/07/04 – 31/12/06) Newspaper
Three year agreement (01/07/04 – 31/12/06) Paper & Packaging
Sweden Three year agreement (01/05/07 – 31/05/10) Newspaper
Three year agreement (01/05/07 – 30/04/10) Packaging
Three year agreement (01/05/07 – 30/04/10) Print
United Kingdom One year agreement (06/04/07 – 05/04/08) Print
43
Table 2
Quantitative Aspects of the 2007 Guidelines: Bargained Wage Increases
Country
Guideline Determinants Inflation +
Productivity (%)
Bargained
Wage Increase %
Difference
Col (4) Minus Col
(3)
Quantitative
Changes Increase in
Inflation (%)
Increase in National
Productivity (%)
Austria +1.7 +3.2 +4.9 +2.5 -2.5 No
Belgium +4.0 +1.9 +5.9 +5.4 -0.5 Yes
Croatia +3.2 +4.2 +7.4 +0.0 -7.4 No
Cyprus +2.2 +2.3(e) +4.5 +2.2 -2.3 Yes
Czech Republic
+2.0 +3.9
+5.9 +0.0 -5.9 No
Denmark +1.9 +2.5 +4.4 +4.0 -0.4 Yes
Finland +1.3 +2.0(e) +3.4
Germany +1.7 +2.0 +3.7 +3.0 -0.7 No
Hungary 9.0 +3.8 12.8 +7.0 -5.8 Yes
Iceland +4.0 +1.8 +5.8 +2.9 -2.9 Yes
Ireland +2.7 +1.9 +4.6 +3.0 -1.6 Yes
Italy +2.3 +2.0 +4.3 +3.1 -1.2 No
Netherlands +1.7 +2.0(e) +3.7 +3.0 +0.7 No
Norway +1.0 +2.0(e) +3.0 +4.5 +1.5 No
Slovenia +3.2 +5.8 +9.0 +3.1 -5.9 No
Spain +3.4 +1.0(e) +4.4 +2.9 -1.5 No
Sweden +1.5 +1.6(e) +3.1 +3.4 +0.3 Yes
United Kingdom
+2.6 +2.7 +5.3 +3.3 -2.0 No
AVERAGE +2.8 +2.6 +5.4 +3.1 -2.3
Note
1) e = estimated
44
Table 3
Achieving the Guideline: Number of Affiliates
Bargaining
Round
Guideline
Achieved
or
Exceeded
Bargained Wage Increase Within
Total Number of Affiliates
0.5
Percentage
Points of
the Target
Between
0.6-1.0
Percentage
Points of
the Target
Between 1.1 – 1.5
Percentage Points of
the Targets
In excess of 1.6 percentage points of the Target
2000 1 3 0 0 10 14
2001 1 0 2 1 10 14
2002 2 4 4 2 7 14
2003 2 0 1 3 7 14
2004 2 0 2 1 7 12
2005 0 4 3 4 2 13
2006 2 1 1 0 9 13
2007 3 2 2 2 9 18
45
Table 4
Meeting the Guideline : 2000-2007 Inclusive
Bargaining Round
(1) Annual Increase in Inflation (%)
(2) Annual Increase in National Productivity
(%)
(3) Inflation Plus Productivity
Increases (%)
(4) Bargained Wage Increase (%)
(5) Difference Col 4 Minus Col 3
Average Moving Average
Average Moving Average
Average Moving Average
Average Moving Average
Average Moving Average
2000 +3.3 +1.8 +5.1 +4.1 -1.0
2002 +3.1 +2.3 +5.4 +3.3 -2.1
2002 +2.7 +3.0 +1.3 +1.8 +4.0 +4.8 +3.1 _2.5 -0.9 -1.3
2003 +2.8 +2.9 +1.7 +1.8 +4.5 +4.7 +2.9 +3.1 -1.6 -1.5
2004 +1.8 +2.4 +2.2 +1.7 +4.0 +4.1 +2.3 +2.8 -1.7 -1.4
2005 +2.2 +2.3 +2.3 +2.1 +4.5 +4.4 +2.5 +2.6 -2.0 -1.8
2006 +2.3 +2.1 +2.3 +2.3 +4.6 +4.4 +2.8 +2.8 -1.8 -1.8
2007 2.8 +2.4 +2.6 +2.4 +5.4 +4.8 +3.1 +2.8 -2.3 -2.0
Average +2.6 +2.0 +4.7 +3.0 -1.7
46
Table 5
Meeting the Guideline : 8 Year Average (2000-2007)
Analysis by country
Country Sum of Inflation Plus Productivity
(%)
Bargained Wage (%)
Gap in Meeting Bargained
Guidelines (%)
Changes in Real Wages (%)
Austria +3.5 +2.2 -1.3 +0.5
Belgium +4.2 +2.7 -1.5 +0.5
Cyprus +5.0 +4.4 -0.6 +1.8
Denmark +4.4 +2.9 -1.5 +0.7
Finland
Germany +3.7 +1.8 -1.9 +0.3
Ireland +6.2 +3.6 -2.6 +0.8
Italy +4.9 +4.1 -0.8 +3.0
Netherlands +3.7 +2.1 -1.6 +0.4
Norway +4.3 +3.6 -0.6 +1.1
Spain +5.5 +3.2 -2.3 +0.7
Sweden +2.9 +2.7 -0.2 +1.0
United Kingdom +4.3 +2.8 -1.5 +0.6
47
The Economic and Political Environment
(a) Economic
The economic background for the 2008 collective bargaining round, as in the last five years, was
difficult. In Europe the graphical industry continued to suffer from over capacity and over
investment. In 208 the excess of printing production capacity in Spain was 27%, in Italy 25% in
France and the UK 20% and in Germany 18%. Despite this overcapacity the last two years has
seen an increase in Europe in printing productive capacity of over 30%. In 2008 the existence of
overcapacity and over investment increased product market competition resulting in strong
downward pressures in both crafts and product market prices. Lower prices caused severe
problems in Europe for many printing companies, especially the larger ones, leading to
bankruptcies, to mergers and takeovers, to relocation of work and investment to control and
Eastern Europe and to China and India.
Over the period 2002 to 2008 the number of printing plants in Europe has fallen from 124,500 in
2002 to 123,100 in 2008. In 2008 Quebecor sold its entire European operations to a Dutch private
equity finance company HHBV after its shareholders rejected as a proposal merger with the Dutch
graphical multi national company, Rotosmeet. In 2008 the relocation to the Far east remained the
strategies of some publishers especially with regard to children‟s and educational books.
Although in China foreign-owned enterprises make up a relatively low percentage of the total
number of firms the scale of investment is generally large. In Beijing, for example, foreign owned
48
printing enterprises account for only 5% of the total number of companies but for 43% of the total
capital employed in the industry.
Overcapacity and over investment brought, in 2008, not only lower prices but also a decline in the
volume of work. Over the last years the volume of work in the European printing industry has
fallen by 5% but in the UK by 17%. Overcapacity, over investment, lower prices and lower
turnover meant that 2008 witnessed another fall in employment in the European printing industry
of some 10,000. Since 2000 the numbers employed in the graphical industry of the different
European countries has fallen by 140,000 in absolute terms and 15% in percentage terms.
Although in general unemployment in the European graphical industry in 2008 increased relative
to previous years it still, in most European countries, remained below that of the economy as a
whole. As in previous years the membership of graphical trade unions in Europe continued to fall
and merger remains a high priority for the Graphical Unions of Europe. The Finnish Media Union
continues to work towards a merger by 2010 with five other unions – the Chemical Workers Union,
the Electrical Workers Union, the Metalworkers Union, the Railway Workers Union and the Wood
and Allied Workers‟ Union.
The collective bargaining agenda of graphical employers throughout Europe in 2008 remained the
same as in previous years. Their corporate strategy has been to increase their market share by
cost containment, cost reduction, minimal investment and increased productivity policies/ In the
collective bargaining setting this has meant demands of their employees for greater flexibility in
the use of labour, including more flexible shift patterns and by increasing working time without
paying additional rates of pay..
49
(b) Tripartite Agreements
In Spain in March 2008 the main trade union confederations (CCOO and UGT) and the
employers‟ organizations signed the 2008 Agreement on Collective Bargaining establishing the
guidelines to be followed during the bargaining of collective agreements. The main objectives of
the agreement are wage moderation and the implementation of gender equality plans in
companies. Moreover the agreement too addresses the Spanish Strategy of Health and Safety at
Work as well as other workplace issues such as recruitment, training, job security and
absenteeism. The agreement commits the social partners to maintaining the formula for
delivering policy which will lead to pay increases if 2-3%. This formula provides for a minimum
pay increase equivalent to the government‟s inflation target compatible with improvements related
to increased productivity. It also provides for the continuation of wage revision clauses designed
to provide compensation if actual inflation exceeds the forecast rate thereby ensuring workers‟
real wages are maintained. The agreement also provides for the regulatory development of the
Gender Equality Law approved in 2007 and which obliges social partners to negotiate equality
plans in all companies employing over 250 workers. As it has being doing since 2002 the
Agreement on Collective Bargaining is a guarantee of wage moderation and industrial peace.
In April 2008 the national level social partners and the Central Government in Ireland launched
formal negotiations over a new pay agreement to be achieved with the financial 10 year
agreement entitled Towards 2016 agreed in September 2006. The pays began after a special
conference of the Irish Congress of Trade Unions overwhelmingly endorsed participation in the
50
talks. The negotiations addressed a number of issues including pay rises to protect increases in
the cost of living and to re-distribute wealth, a comprehensive pensions policy, legislation on
temporary agency workers, trade union recognition and representation and investment in public
services.
On 21 December 2007 the National Interest Reconciliation Council in Hungary finally reached
agreement on the annual wage increase for 2008. This increase is set at 5-7% as a
recommendation for lower level wage settings. Initially both employers and employees rejected
the government‟s 4.8% wage increase while negotiations were further interrupted following a wave
of demonstrations and strikes that took place in December. Annual wage negotiations are among
the most important issues dealt with at Hungary‟s National Interest Reconciliation Council which
comprises representatives of the multi-sector social partners and the Central Government. Owing
to its direct influence on both employer and employee earnings, as well as its far reaching effects
on the country‟s budget, wage negotiations always attract unexpected public support and
professional interest. The two main outcomes of these negotiations are an agreement on the
national minimum wage and a recommendation on wage development for the following year.
These proposals are based on a combination of factors, most notably the estimated level of
inflation along with changes in taxation, forecasts on gross domestic product growth and medium
term expectations regarding labour market developments.
Since 1968 the Finnish collective bargaining system had been based on the conclusion of national
increases policy agreements negotiated by the central government and the multi-sector trade
union confederations and employer organizations. It was an agreement covering a wide range of
51
economic and political issues, such as pay increases, taxation, pensions, unemployment benefit
and housing costs as well as a range of qualitative working life measures. Sector level trade
union and employer‟s organizations then, in most cases, implemented the agreed names policy
through their own industry-wide agreements. In 2007 the employ ??? their support for a
combination of a tripartite agreed names policy. In 2008 the Confederation of Finnish Industries
(EK) argued that the bargaining structure in Finland had been too centralize and that the „pay
norm‟ thereby average national productivity growth rate determined wage increases in all sectors
be scrapped. It, therefore, announced that sector, company and even industrial level bargaining
would be the bargaining models of the future.
(c) Legislative Changes
i European Union
2008 witnessed three decisions by the European Court of Justice concerning the role of collective
agreements and collective bargaining strategies by trade unions taking collective action to counter
social ??? practices. These decisions have adverse consequences for all trade unions not just
graphical unions. In the Viking‟s case the trade unions undertook industrial action against the re-
flogging of a Finnish ship to Estonia with the aim of applying lower standards to seamen on the
ship. In the Tavel case the Swedish construction workers unions together with other trade unions
with members in the industry took industrial action against the application of Latvian wages and
working conditions on Latvian workers employed by a Latvian company on a Swedish construction
site. The collective bargaining strategy at stake here was the General Swedish collective
bargaining practice by which foreign companies active on Swedish soil are appointed to sign a
52
Swedish collective agreement. Instead Tavel had refused to enter into negotiations about the
application of Swedish wages and working conditions with the Swedish unions and as an
alternative concluded a collective agreement with the Latvian construction workers union
applicable to the postal workers in Sweden. In the Ruffat case to prevent social dumping
practices by construction companies having Polish workers the David Niedersachsen required
from all tendering companies to commit themselves and the sub contractors to pay wages to all
workers including postal workers that were in line with rates in the collective agreement applicable
in the place where the work is done. In all three cases the European Court of Justice ruled that
the methods used to counter social dumping were incompatible with the economic freedom of the
EU Treaty (freedom of establishments, free movement of services);.
ii France
In July in France the French government pushed through reforms that repealed the country‟s law,
brought in ten years, providing for a 35 hour working week. The new law operative from August
2008 allows companies to decide how many hours and how much overtime their employees work
each week. Prior to August 2008 every worker in France had a right to limit their weekly hours to
35 and their working days to 218 a year. The Sarkozy government considered the 35 hour week
as a major drag on the French economy and on ??? labour productivity but the new law does not
abolish the concept of a statutory maximum number of working hours per week. Under the new
law companies are able to negotiate a working week of up to 48 hours with every hour over 35
counting as overtime.
53
iii Hungary
After years of non compliance of Hungarian companies with European Court of Justice rulings on
working time, the government in 2008 brought in legislation to modify several working time
provisions of the country‟s Labour Code. These covered on call work, the duration of working time
breaks, the mandatory duration of the reference period and the annual maximum amount of
overtime. The Labour Code was modified declaring that the entire period of on-call work spent at
the place of work – be taken into account when calculating working time whilst the maximum
length of the work break was set at one hour. The modification also increased the maximum
length of the working time reference period without a collective agreement in place from two
months to three months. A further change to the Labour Code made it possible for every
employer to require 300 overtime hours annually, instead of the previous 200 hours or 300 hours if
agreed in a collective agreement if certain strict preconditions were met. These included a written
agreement with each worker affected, an increase of overtime only affected 10% of the workforce
and the worker had specialist knowledge and/or qualifications essential for the employee‟s line of
work.
iv Ireland
The Employment Law Compliance Bill (2008) provided for the establishment of the National
Employment Rights Authority on a statutory footing with greater enforcement powers than its
predecessor, the Labour Inspectorate. The Irish government had made a commitment to
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introduce legislation to improve compliance with employment law as part of the current national
social partnership agreement, Towards 2016 in the light of trade union concerns about problems
in this area. Under the Bill‟s provision employers found in breach of existing laws could face fines
of up to 250,000 euros or three years in prison whilst labour inspectors would be able to conduct
joint investigations with agencies such as the Revenue Commissions, social welfare inspectors
and Ireland‟s National Police Service. In addition employers must maintain comprehensive
records of employment. Essentially the legislation will mean the more rigorous enforcement of
existing employment laws such as the national minimum wage, registered employment
agreements, work printing and the protection of young persons in employment.
v Portugal
At the end of December 2007 the Portuguese Minister of Labour presented a White Paper on
labour relations. It presented a detailed and extensive examination of the Portuguese labour
market followed by a number of recommendation for the revision of the Labour Code. The White
Paper presented a wide range detailed proposals but those causing most debate amongst the
social partners related to the relationship between labour law and collective bargaining; the
regulation of fixed term contracts; individual and collective dismissals; working time duration and
adaptability and the period of invalidity and lapsing of collective agreements. The White Paper
defined a number of areas where collective agreements cannot establish less favourable rules
than those defined by law and proposed that fixed term contracts be allowed only to meet a
company‟s temporary needs and that the total duration of such contracts be limited to three years
and two renewals. On the issue of working time duration and adaptability the White Paper
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advocated not fixing the maximum number of daily hours by law, but leaving the issue to collective
bargaining a management decision. It also proposed that a collective agreement that has not
been revised should not lapse for a period of 18 months after the end of its term and that
collective agreements have a set duration of up to 10 years. On the issue of individual dismissals
the White Paper proposed employees could be dismissed on the grounds of inability to adapt to
functional change and that the employer not be obliged to re-instate the employee if their
dismissal is ruled unfair. On 5 June 2008, 200,000 workers from the printing and public sector
answered the CGTP‟s call and participated in a demonstration against these proposed
amendments to the Labour Code.
