European Social dialogue

Catherine Barnard

Trinity College

Diversity of industrial relations in Europe

• Romano-Germanic

• Anglo-Irish

• Nordic

Diversity of industrial relations in Europe

• Romano-Germanic– state has central and active role industrial

relations; extension of collective agreements– Low level of TU density – (extensive) workers rights provided by

legislation and constitution– EU dominated by this model in early days

Diversity of industrial relations in Europe

• Anglo-Irish– Traditionally limited role played by state in

industrial relations– Collective bargaining applies to parties

involved and no further– Traditional absence of state involvement in

legislation (although that has changed )– Central role of the contract of employment

Diversity of industrial relations in Europe

• Nordic model– Extensive involvement of trade union, high

union density– Functional equivalent of legislation is

collective agreements– High public spending and high tax rates,

knowledge economy– Flexicurity

Trade union densityOver 90% in Romania;80%-89% in Belgium, Denmark, Finland and Sweden;70%-79% in Italy and Norway;60%-69% in Cyprus and Malta;50%-59% in Luxembourg;40%-49% in Austria and Slovenia;30%-39% in Hungary, Ireland and Portugal;20%-29% in Bulgaria, Germany, Greece, the Netherlands, Slovakia, UK; 10%-19% in Estonia, Latvia, Poland and Spain0-10% in France.

Source: European Industrial Relations Observatory, Trade Union Membership 1993-2003 (2004)

Consequences of diversity• Greater flexibility in legislation• Use of Directives (not Regulations) in the social

field– Can be implemented by social partners– Directives themselves contain ‘internal flexibility’ eg I&C

Directive 2002/14– Art. 5 of Dir. 2002/14 allows PEAs to stand

• Negotiated flexibility: interprofessional/sectoral social partners negotiate Europe-wide collective agreements; may have legal force

• Subsidiarity: vertical and horizontal• Reflexive law

Development of EC Social Policy

• 1957 Treaty of Rome• 1972 change of approach: vigorous action in the

social sphere• SEA 1986: Art 118a (new 137) minimum

standards Directives by qmv• Community Social Charter 1989• Maastricht Social Chapter 1992• Amsterdam Treaty 1997+ Employment Title• Treaty of Nice 2000

Maastricht Treaty

• SPA/SPP and the effect on the UK

• More measures adopted under qmv

• Expansion of competence

• Greater role for social partners, including legislative role

The Legislative Process

im p lem e nta tio n ina cco rda nce w ith

n a tio n a l p ra c tices o fso cia l p a r tne rs

im p le m en ted by so cia l p a rtn e rs/M e m b er S ta tes

C o un ci l ad op ts 'd ec isio n '( in p rac tice a D irec tiv e )

C o m m issio n p rop osa l fo ra C o un ci l 'de cis io n '

Jo in t req u es t toC o m m iss ion fo r e xte ns ion

to a ll w o rke rs

a g re em en t b e tw e enso cia l p a r tne rs

n e go tia tio n b e tw e enso cia l p a r tne rs

so cia l p a r tne rs in fo rmC o m m iss io n o f w ish to in it ia te co lle ctive

rou te

im p le m en ted by S o cia lP a rtn e rs o r M e m b e r S ta tes

a d op tio n o fD ire ctive

C o un c il d iscuss ion ina cco rda nce w ith

co -d e cis io n o r con su lta tionp rocedu re

d ra ft C o m m iss ionp rop osa l

o p in io n o rre co m m e nd ationo f so c ia l pa r tne rs

co nsu lta tio n onco n te n t o f e nv isa ge d p rop osa l

n o fu r th e r a ction

C o nsu lta tio n o n thep o ss ib le d ire c tio n o fC o m m un ity a ction

C o m m iss ionin i t ia tive

First consultation

Second consultation

If fails

Source: COM(93) 600, 43 with updates

Collective routeTraditionallegislativeroute

Process

• Consultation– Prior to submitting proposals (1st stage)– On the content of those proposals (2nd stage)

• Social partners submit an opinion, measure follws usual legislative routeOR

• Social partners inform Commission under Art. 138(4) of their desire to negotiate themselves under Art. 139

• Consultation with whom?– Commission Communication of 1993

Criteria for those entitled to be consulted

• the associations must be cross-industry or relate to specific sectors or categories and be organized at European level;

• the associations must consist of organizations which are themselves ‘an integral and recognised part of Member State social partner structures’, have the capacity to negotiate agreements and be representative of all Member States ‘as far as possible’; and

• the associations must have adequate structures to ensure their effective participation in the consultation process

Who complies?

• general cross industry organizations (the trade union body ETUC, the employers’ organization Business for Europe and the public sector employers’ association CEEP);

• cross-industry organizations representing certain categories of workers or undertakings (UEAPME, CEC and Eurocadres);

• specific organizations (the association of European Chambers of Commerce and Industry, EUROCHAMBRES);

• sectoral organizations representing employers such as the Community of European Railways (CCFE), and the Association of European Airlines (AEA);

• European trade union organizations such as European Transport Workers’ Federation (ETF).

Negotiation

• ‘up to the social partners to decide who sits at the negotiating table’ (COM(98) 322)

• Commission will examine representativeness on case by case basis (COM(96)600)

Legislation adopted under Social Title

• Legislation- the Burden of Proof Directive- EWC Directive

• European wide collective bargaining- intersectoral

- Parental Leave Directive 96/34- Part-time Work Directive 97/81- Fixed Term Work Directive 99/70

- sectoral- Seafarers Working Time Dir. 99/63- Civil Aviation W.T Dir. 2000/79

Implementation

• ‘Decision’; in reality a Directive (Art. 139(2))– 3 Article Directive– Collective agreement is in the Annex

• Autonomy of social partners• What if terms of agreement invalid? Comm. checks• Role of the European Parliament; democratic deficit

– Implementation by national legislation or collective agreements

• By national or regional collective agreements– Called autonomous agreements– Eg Telework Agreement 2002, work-related stress 2004– Agreement on lifelong development of competences and

qualifications implemented via OMC– What effect do they have in the national system?

Parental Leave Directive?

• Negotiated by intersectoral social partners– ETUC– CEEP– Business for Europe (ex UNICE)

• Implemented by Directive– 3 Articles– Framework agreement in annex

• Birth of Euro-corporatism?• Representativity question; monopoly of

established social partners

Case T-135/96 UEAPME

where there is no official involvement by the European Parliament ‘the principle of democracy on which the Union is founded requires ... that the participation of the people be otherwise ensured, in this instance through the parties representative of management and labour who concluded the agreement which is endowed by the Council ... with a legislative foundation at Community level.

UEAPME (cont’d)

• Two routes to democracy– Traditional route: Parliament’s involvement– Functional route: involvement of the social partners

• Legitimacy questions– Involvement of the social partners in areas other than

those directly linked to employment rights– Unequal bargaining power; lack of traditional

sanctions

• Response: increase sectoral social dialogue

Sectoral social dialogue

• COM(98)332; Dec. on the establishment of new sectoral dialogue committees

• Committees set up in all sectors submitting a a joint request and are sufficiently well organised with a meaningful European presence in line with established criteria of representativeness

• 30 sectors

Social dialogue in policy making

• Tool to achieve Luxembourg and Lisbon objectives; ‘Partnership for Change COM(2002)341

• Role in modernising work organisation and equal opportunities

• Consultation by EMCO and the Social protection committee

• Tripartite social summit for growth and employment• But possible tension: role in suppressing wage growth

which sits unhappily with the traditional role of trade unions