Vorstand EMF Summer College 2010 Lisbon 13. – 15. September 2010 The impact of the crisis and...

Vorstand

EMF Summer College 2010

Lisbon 13. – 15. September 2010

The impact of the crisis

and speculation

on collective bargaining in

Europe

Vorstand

IG Metall Vorstand, Funktionsbereich Tarifpolitik2

The impact of the crisis and speculation on collective bargaining in Europe

Current economic situation

Examples of collective bargaining during the crisis

Coordination rule

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Current economic situation (1)

Starting point of the crisis: burst of the speculative bubble in the real estate market in August 2007.

Trespassing on the financial market, intensification in August 2008: Crash of Lehmann Brothers.

Impact on worldwide investmets impact on production, particular for export-countries.

Some reasons for the crisis:

Crooked distribution, increase of profits and decrease of wages fed the speculative bubble!

Deregulation of the financial markets, „Innovations“ in financial goods.

Imbalances in foreign trade.

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Forecasts for European metal sectors.

Change in production in %

-15,9

-25,2 -25,4

-12,5

-17,3

-31,1

-23,6

-2,3

2,6

9,3

2,2

-12,3

5,7 4,83,46,1

3,8 3,82,0

4,6 4,2

Structuralsteelwork

MechanicalEngineering

Automotive Domesticappliances

Shipyards Tubes Metal goods

2009 2010 2011

Source: EUROFER, July 2010

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Reasons for recovery

Export

Goods-in-stock, low stock level

Stimulus packages

But also risks:

Stimulus packages are running out

Increase in raw material prices

Goods-in-stock cycle

Weak internal markets

Capacity utilisation not at precrisis level investment restraint.

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More risks:

No change in regulation!

Recovery leads to „business as usual“

Post-crisis same as Pre-crisis!

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Collective bargaining during the crisis (1)

Position paper of EMF „Collective Bargaining policy during the crisis

Active wage policy with the objective of a strong increase in real wages and income support.

Secure Employment.

Strenghtening the European coordination of collective bargaining.

Strenghtening European cooperation at company level.

Stabilizing lowest incomes by minimum wages.

Which issues were be achieved?

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Collective bargaining during the crisis (2)

Increase of 2009 reflects in many cases agreements signed before the outbreak of crisis.

Situation in 2010: Wage cuts in the public sector in Ireland and Greece.

Example for other European countries and sectors?

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First half of 2010: Agreements in European Metal Industry (Extracts) (1)

Netherlands• 01.02.2010 till 01.05.2011•Wage increase 0.5 % (01.07.2010), 1.15 % (01.01.2011)• Several qualitative elements (training, working conditions, pensions, age-

aware personnel policy, …)

Germany• 01.05.2010 till 31.03.2011 former pay scale tables, lump sum of 320 €• 01.04.2011 till 31.03.2012 wage increase: 2.7 %• Instruments of job securement, qualification.

Denmark•Wage formation via decentralized local negotiations.• Improved regulations on pensions, holidays, apprentices, equal

opportunities, health, redundancies, TAW and implementation of Second common demand.

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First half of 2010: Agreements in European Metal Industry (Extracts) (2)

Sweden• 01.04.2010 till 31.01.2012 (22 months).•Wage increase 0,9 % (01.06.2010), 2,3 % (01.06.2011)• Measures according to the crisis (reduced working hours, obstacle for

TAW.

Norway• Total value of the agreement is estimated to reach 3 %.

Resume

Moderate wage increase. Neither wage decrease nor wage freeze.

Long duration.

Instruments of job security.

Qualitative elements.

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First collective bargaining campaign in the recovery in Germany: Steel Industry

Demands:•Wage increase of 6 % for 12 months.• Collective agreement on equal pay for equal work for agency workers.• Further development of the collective agreement of demografic change.

After sucessful crisis management - now recovery management - share of the expected profits!

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Coordination rule (1)

„The key point of reference and criterion for trade union wage policy in all countries must be to offset the rate of inflation and to ensure that workers‘ income retain a balanced participation in productivity gains.

The commitment to safeguard purchasing power and to reach a balanced participation in productivity gains is the new European coordination rule for co-ordinated collective bargaining in the metal sector all over Europe.“ (EMF Collective Bargaining Conference – Frankfurt, 9/10. December 1998)

The idea behind the coordination rule: No wage dumping!

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Development of collectivly agreed wages in European Metal and Electrical Industries 2000 – 2008. VOWA minus inflation (in %)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Belgien 0,5 3,2 1,6 1,0 1,48 0,0 0,1 0,65 1,08 1,74

Dänemark 1,4 1,8 1,5 1,6 1,7 1,6 2,6 4,1 1,6

Deutschland 1,9 0,5 2,7 2,1 1,6 0,7 1,3 1,0 0,7 3,57

Finnland 0,8 0,0 0,7 1,4 1,3 0,8 1,3 2,62 -0,1

Griechenland 2,1 1,3 -0,9 0,6 0,0

Italien -1,4 -0,6 -0,9 -0,5 0,1 1,7

Niederlande 1,5 -0,1 -1,7 1,1 2,3 0,3 0,1 0,4 3,0 4,9

Norwegen 2,3 2,1 2,0 1,9 1,3 4,68 2,2 2,23

Österreich*) 1,5 0,6 0,9 1,1 0,5 1,6 0,92 1,38

Schweden 1,8 1,1 1,0 -0,9 1,0 1,5 1,3 1,82 0,2 2,5

Schweiz 1,2 1,6 1,1 0,7 1,5 0,1 2,1

Slowakei**) -3,1 -2,5 -0,9 4,81 1,1 -0,6

Tschechische Republik***)

10,01 0,3 3,8 3,0 0,05 2,75 2,52

Frankreich (SMIC) -0,5 1,4 2,2 0,2 3,0 3,9 3,6 1,4 -1,1 3,1

keine Angaben *) Österreich Metallindustrie und Bergbau

**) Slowakei Metallverarbeitendes Gewerbe ***) Tschechische Republik Elektroindustrie

IA = Inflationsausgleich (VOWA - HIVP)

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Development of collectivly agreed wages in European Metal and Electrical Industries 2000 – 2008. VOWA minus inflation rate minus productivity increase. (in %)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Belgien -1,4 3,97 0,6 -0,02 -0,2 0,46 -1,9 -0,3 1,14 2,24

Dänemark -0,9 1,6 -0,1 0,3 -0,65 -0,15 1,4 2,73 4,05

Deutschland 0,8 0,1 1,9 1,1 0,4 -0,6 -0,8 0,2 0,66 5,52

Finnland -2,0 0,4 -0,65 -0,8 -1,2 -0,4 -0,1 -0,46 1,42

Griechenland -2,1 -3,1 -4,7 -1,6 -1,6

Italien -2,7 -0,45 0,05 -0,3 -0,8 0,7

Niederlande -0,1 -1,55 -0,5 0,85 0,25 -1,75 -0,7 2,56 7,04

Norwegen 0,1 -0,1 0,1 1,1 0,5 5,28 3,62 3,22

Österreich*) -0,4 0,5 -0,46 – 0,6 -0,7 -0,2 -0,7 1,3

Schweden -0,1 0,1 -0,9 -1,0 -1,7 -0,5 -1,4 2,37 -1,38 3,63

Schweiz 1,7 0,3 -0,6 -1,0 0,58 6,71

Slowakei -10,4 -6,3 -3,0 -1,58 -2,86 0,05

Tschechische Republik 6,31 -8,0 -3,0 -1,6 -4,61 0,3 3,29

Frankreich (SMIC) -0,3 1,5 2,4 0,9 1,5 -0,9 4,1

keine Angaben *) Österreich Metallindustrie und Bergbau

**) Slowakei Metallverarbeitendes Gewerbe ***) Tschechische Republik Elektroindustrie

ABPW = Ausgewogene Beteiligung am Produktivitätswachstum (IA minus Entwicklung der Arbeitsproduktivität)

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Coordination rule (4): Open flanks

Coverage of collective agreements.

Opening clauses, temporary deviations.

Precarious work.

Difference between effective wages and collective wage agreements (negative wage drift).

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Employees covered by collective agreementsManufacturing industry (West-Germany) in %

74,0

5,9

20,2

60,0

8,0

32,0

67,0

58,0

10,0

33,0

60,0

regional coll. agreement company agreement without coll. agreement without CA but CA-oriented

1998

0

2007

2009

Source: IAB Betriebspanel

The year 2009 is not exactly comparable to former years due to a change in the statistical database.

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Employees covered by collective agreements Manufacturing industry (East-Germany) in %

40,0

10,8

49,2

25,0

17,0

59,057,0

25,0

15,0

61,0

48,0

regional coll. agreement company agreement witout coll. agreement without CA but CA-oriented

1998

0

2007

2009


The year 2009 is not exactly comparable to former years due to a change in the statistical database.

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Cases of temporary and conditional deviation from collective agreement

Actually exist 855 cases – Status 07.05.2010

855

07.05.2010

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Temporary deviation: what IG Metall conceded...(2004 – 07.05.2010)

495

602561

46

315

446

798

0

100

200

300

400

500

600

700

800

900

1000

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Temporary deviation:...what we got in exchange

in %

54

1512

4 5

61

23 23

8

17

72

2931

11

24

76

25

36

8

27

0

10

20

30

40

50

60

70

80

90

Ausschluß Kündigungen Standort-Sicherung

Investition Produkte/Innovation

Ausbildung

in 2004 in 2005 in 2006 in 2007

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Temporary Agency Work in Europe


Country Number of workers*2007

Rates of change2004-2007 (%)

Belgien 95.465 (382.188) 27,1 (17,39)Dänemark 20.600 -12,4Deutschland 614.000 53,6Finnland 28.000 100

Frankreich 637.901 11,9Griechenland 8.172 133,3Großbritannien 1.196.000 (8,7)

Irland 35.000 40Italien (594.744) (48)Luxemburg (8.003) (45,8)

Niederlande 233.000 48,4Norwegen 24.982 8,6Österreich 59.262 34,3

Polen 60.000 93,5Portugal (103.400**) (10,9***)Rumänien (c. 25.000) n.a.Schweden 59.400 69,7

Slowakei* 10.828 n.a.Slowenien (4.874) (99,3)Spanien 160.000 4,6

Tschechische Republik 35.000 n.a.Ungarn 55.000 4,4

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Coordination rule (5)

Problems during the crisis: • Very moderate inflation and negative productivity.• Pressure on trade unions, weaker position.

Reaction of trade unions: secure income and jobs!

Do we have an alternative to the coordination rule?

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Collective Bargaining Department / European Wage PolicyUwe Fink, Tel.: +49/69/6693-2151, [email protected]

Thanks for your attention!

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Vorstand EMF Summer College 2010 Lisbon 13. – 15. September 2010 The impact of the crisis and...

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