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Industrial Relations Catherine Voynnet Fourboul. Objectives Introduce Industrial Relations Describe...
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Transcript of Industrial Relations Catherine Voynnet Fourboul. Objectives Introduce Industrial Relations Describe...
Industrial Relations
Catherine Voynnet Fourboul
Objectives
• Introduce Industrial Relations
• Describe the original model of Industrial Relations in Europe
• Give information about the international TU structure and show its complexity
• case study : Mc Donald US MNC policy in Germany (Europe)
Industrial Relations : definition
collectivebargaining
WorkRules
employmentrelations
Power andconflict
economicand socialInfluence
Behavior Rules
traditional field
narrowDefinition
largeDefinition
large field
traditionnalOrientation
newOrientation
Variety of the definitions of the Industrial Relations
One definition of Industrial Relations
« The study of strategic choice and collective action of labour, business and governments, their mutual relationships of conflict, cooperation and power, affecting the content and regulation of employment relations and the use and distribution of physical and human resources »
Joris Van Ruysseveldt et Jelle Visser, Industrial Relations in Europe, Sage 1996
Social Relations and Industrial Relations
Industrial Relations :
External Pole
Social Relations:
internal Pole
State
Directors Representatives
LabourManagement
Basic Theory : Dunlop 1958
• First systemic theorization of the industrial relations
• Emphasis on the network of standards and of rules which are developed by the interaction of the 3 actor types in an environment of technology, market, labour and regulation.
Dunlop 1958
• ideology or the shared values
• the I.R. system is a separate and distinct system from the society
• invented and declined standards at the national, sectoral and company level.
• environnemental contexts: technology, market, relative power and the actors statutes.
The employer
• MNC, Company with simple or multiple establishments, SME, public companies,holding,
• employers' association at the regional, branch or national level
• Employer and Human Resources Management Role
Labour
• Workers
• Employees
• Trade Unions
• Works Councils
Government
• Different possible location in the Government structure : – executive, – legislative, – judiciaries
Collective Bargaining
• after 1945: became the regulation tool of employment relations
• is a joint decision-making process based on conflictual cooperation
• may concern minimum hourly wages, min. or max working hours
• procedural rules concern additional bargaining, rules for interpreting the agreement
collective bargaining criteria
• Bargaining coverage (proportion of all employees covered / collective agreement)
• Bargaining scope ( number and nature of the issues covered).
• Bargaining level: – central, national – sectorial (branches: printing, metal, banking)– region, company
Industrial Relations in Europe
The European Union's deepening economic integration
• the EU is tending more and more to compare itself in many areas with the world's two other largest economies – Japan and the USA.
• the EU's commitment: to become `the most competitive and dynamic knowledge-based economy in the world with more and better jobs and greater social cohesion´ .
• Industrial relations systems and developments play an important part in determining economic, employment and social outcomes.
• Aim: highlight some of the main areas of difference and similarity.
European social model
• the manner of regulating employment and social issues – the `social partners´ – bipartite and tripartite consultation and
dialogue– collective bargaining– employee participation
The `social partners´
– the term often used at EU level and in many Member States to denote trade unions and employers' organisations
Bipartite and tripartite consultation and dialogue– At EU level, `social dialogue´
• between European-level trade union and employers' organisations,
• at the overall level (known as `intersectoral´ or `interprofessional´ ) or at the level of individual economic sectors.
– it involves discussions, cooperation, consultation (negotiations and agreement are possible)
• bipartite, involving only unions and employers' organisations, • or tripartite, often instigated and structured by the European
Commission or in response to Commission proposals.
– In many EU Member States, there are consultative and cooperative relationships between trade union and employers' organisations
Collective bargaining
• Process of establishing pay, terms and conditions of employment
• Through bipartite negotiation and agreements • Among trade unions and either employers'
organisations or individual employers. – In the EU Member States, collective bargaining
may occur at many levels – intersectoral, sectoral, regional, company, workplace etc
– The importance of level and relationships among them differ between countries
Employee participation
• `indirect´ or representational employee involvement, through elected or appointed representatives, at company level.
• Through `works councils´ or similar bodies, with information and consultation rights – (stronger `co-determination´ rights on some topics in
some countries, such as Germany). – employee representation on the board of directors or
supervisory boards
• `direct´ employee involvement (ways of informing individual employees) or employee financial participation in company results.
Information and consultationdefinition what and when Interlocutors
Information Documents
Transmission
Reports
information meeting
Basic information,
periodic, occasional
(prior to decisions)
Trade union
representative
council
workforce
Consultation Compulsory advice
or not
Proposal
prior to decision
for activities to
be planed
for the definition
of guidance
Trade union
representative
council
Negotiation and codeterminationdefinition what and when Interlocutors
Negotiation
Collective
bargaining
agreements contract regulation settlement ,
joint decision making
trade unions
TU representatives
representative
council
Codetermination agreement process
veto right
joint decision making
mix councils
decision making
regulation settlement,
activity program,
nomination of people.
representative council
representatives take
place in the decision
making council
Trade unionism in Europe
Trade unionism Contrast at the EU and national level
• at the EU level: high degree of unity & coherence • at national level: enormous diversity and
sometimes division. • The European Trade Union Confederation (ETUC
) brings together major confederations in EU countries (74 in total).
• managerial and professional staff belong to the European Confederation of Executives and Managerial Staff (CEC);
Trade unionism Contrast at the EU and national level (2)
• organisations (generally outside the trade union `mainstream´ ) affiliated to the European Confederation of Independent Trade Unions (CESI).
• affiliated to ETUC are 11 `European industry federations´, grouping most major EU trade unions in their respective sectors. ETUC claims a total affiliated membership of 60 million.
Key differences between European I.R. systems
• Trade Unions density and structure
• Trade Unions strategies
• Managerial styles in I.R.
• collective bargaining levels
• industrial conflict and strikes
• industrial democracy and employee participation
Degree of unionization : density
Country : high unionization
% of workforce belonging to a union
Country : low unionization
% of workforce belonging to a union
Denmark 87 Germany 30
Belgium 69 Portugal 30
Luxembourg
50 UK 29
Ireland 44 Netherlands
27
Italy 35 Spain 15
Greece 32 France 9
source : EIRO 2000
Trade Unions structure
• Trade Unions – craft, – industrial, – general or conglomerate
• historic origin and variation explained by the state of technology
• no matching system
Trade Unions Structure in EuropePays Type Type représentation et NiveauxGermany Industrial a single trade union : DGB ; 16 unified sectorial trade unions (IG Metall)
separate TU for civil servants and white collar workersBelgium Industrial sectorial, no company-based union
3 trade unions (Christian, socialist, libéral)Denmark Craft close relations with the Social Democratic Party ; LO central
organization :2/3 of the workforce ; 70 trade unionsSpain General political and ideological organizations ; CCOO (marxist ideology) UGT
(socialist) , tentative of merger of this 2 trade unionsFrance General independent but strong links with political parties
5 multi-professional unionsItaly Industrial 3 trade unions : CGIL, CISL, UIL cover industrial sectors rather than craft or
occupationsNether-
landsGeneral unions of all occupations are joined in 3 federations. TU not militant, do not
use strikes as the major way to achieve theri goals ; financed solely throughmembership contributions
UK Craft national confederation of trade unions : TUC ; 73 individual unions ; severalunions represent one or more occupational groupings within the samecompanie.
source : Sparrow P., Hiltrop J.M., European Human Ressource Management inTransition, Prentice Hall, 1994
Comparison with USA and JAPAN• USA: structure of trade unionism is relatively
similar to that in Ireland and the UK. (single main national centre, the American Federation of Labor and Congress of Industrial Organisations (AFL-CIO), made up of a relatively large number of industrial and occupational unions.
• Japan: 2 confederations of significant size. Rengo organises over 60% of unionised workers. Rengo's membership is based on enterprise-level unions, organised in sectoral federations (similarities with France). The second confederation, the National Confederation of Trade Unions (Zenroren), represents 7% of all unionised workers.
Basic trade union organisation, EU, Japan and USA
. Mainly industry/sector organisational structure
Mixed (industry/general/ occupational) organisation structure
Single main confederation
Austria, Germany, EU level
Ireland, UK, USA
Multiple confederations (divided on religious/political/ organisational lines)
Belgium, France, Italy, Japan, Luxembourg, Netherlands, Portugal, Spain
Denmark, Finland, Greece, Norway, Sweden
Trend towards merger of trade union organisations.
• The number of European industry federations affiliated to ETUC has been reduced by mergers recently (eg in the food and agricultural sectors, and in services), while the number of member unions of most national union confederations has declined
• A particularly notable recent merger was the creation in Germany in 2001 of the Unified Service Sector Union (Vereinigte Dienstleistungsgewerkschaft, ver.di), which is thought to be the largest union in the democratic world, with nearly 3 million members.
Divergence of Trade Unions strategies source Bamber & Lansbury 1987
- maximalist respons : CGT
- interventionnist approach : Italians Trade Unions,
- defensive-particularistic strategy : UK
- corporatist strategy : Swedish Trade Unions
Decentralization of collective bargaining
• Pursuit of flexibility in order to respond to fast changing markets
• centrally co-ordinated decentralization prevails (parallel with managerial responsibilities
• MNC’s strong influence
• Sweden : central agreement - important
• Germany : works councils
• UK : no sectorial bargaining, plant bargaining formalized
Strike patterns
USA Canada Ireland long duration of stoppages
Italy, Spain, Finland,
Israel
number of people who participate is very
high
Australia, New-Zealand,
France, Portugal
number of stoppages : very high
Belgium, Denmark, Pays-
Bas, Norway, Sweden
low incidence of strike activity, but
duration not insignificant
UK, Japan no one strike characteristic is dominant
A century of union organization, 1890-1990In Van R uysseveldt J., Visser J., Industrial relations in Europe , SAG E, 1996
Threats posed to unions by MNCs
Kennedy, T 1978, European Labour Relations , London Associated Business Programmes
- Financial resources : capacityto absorb losses in a particularforeign subsidiary that is indispute with a national union
- Alternative sources of supply« dual sourcing » outsourcing
- Abitility to move productionfacilities to other cheap labourcountries
- Superior knowledge andexpertise in labour relations
- Remote locus of authority- Production facilities in many
industries- Capacity to stage an investment
strike in which the organizationrefuses to invest in a plant thatwill become obsolete and non-competitive
0
5
10
15
20
25
30
HQ decision
sub. decision
Centralization : HQ / subsidiary
source : Hamill J., 1984, IRJ
International TU's structure
Reasons for the lack of success of international trade unions
• Good wages and working conditions provided by MNCs
• strong resistance from multinational managements to transnational bargaining and consultation
• ideological, structural and political differences between national Unions
• differing national laws et regulations
International trade unions structure
• ICFTU International Confederation of Free Trade Union
• WFTU :World Federation of Trade Unions• ITS: International Trade Secretariat• ETUC : European Trade Union
Confederation• UNICE : Union of Industries of the European
Community
ICFTU International Confederation of Free Trade Union
• anti communism
• developed with companies becoming multinational
• international cooperation between national Trade Unions : a network– at different levels : world, regional, national,
professional – through International Trade Secretariat
ITS: International Trade Secretariat
• They bring together individual national unions in particular sectors of industry.
• The ITSs are autonomous and self governing organizations but follow the ICFTU on broad policy issues.
• the larger : International Metalworkers’ Federation IMF
• A general conference of ITSs once a year
Some ITS
ICEM
IUFFIET
IFBWWIMFITGLWF
ITF
International Federation of Chemical, Energy, Mine andGeneral Workers' UnionsInternational Union of Food, Agricultural, Hotel,International Federation of Commercial, Clerical,Professional and Technical EmployeesInternational Federation of Building and Wood WorkersInternational Metal Workers' FederationInternational Textile, Garment and Leather Workers'FederationInternational Transport Workers' Federation
ICFTU : A complex membership system
• member federations opposed at the national level (FO/CFDT)
• no membership rules between federations, confederation, ITS and ICFTU
• the most integrating and representative organization:
• 124 millions of members represented by 213 members in >143 pays et territories
ICFTU relations with other organiszations
• ICFTU and ETUC : same address in Brussels but competition.
• continuous dialogue between ITS and ICFTU
• ITS : operational approach, ICFTU : political approach
• ICFTU and UNO : recommendation IMF, UNESCO, Commission United-Nations, International Labor Organization
ETUC : European Trade Union Confederation
• creation : 1973 linked to Europe
• play a part at the European institutions
• claim difficulty at the European level
• no authority on its trade unions members
• meeting and exchange location between national trade unions
• 60 million affiliated members
ETUC : European Trade Union Confederation
• Disparity in the representation– favorable to the British TUC et DGB – unfavorable to the French trade unions
• tries to find a consensus
• membership condition :– not belonging to WFTU– take into account the opinion of the oldest– independent from the ICFTU
An example : French CFDT
• In 74 : CFDT become member of the ETUC – french FO was opposed– compromise with German DGB. – French CGT is refused still march 99
• work with other European trade unions
• Jacques Delors et Jacques Moreau CFDT.
• En 89 become member of the ICFTU the at the steering committee
Employers' organisations
Union of Industrial and Employers' Confederations of Europe & CEEP
• The UNICE: the main national intersectoral confederations of private sector employers in the EU Member States (and elsewhere in Europe).– engages dialogue, negotiations with ETUC– promotes its members' interests, seeks to influence EU
decision-making).
• Since 1998, UNICE has cooperated closely in EU-level social dialogue and negotiations with ETUC
• The European Centre of Enterprises with Public Participation and of Enterprises of General Economic Interest (CEEP) (organisations with public participation)
Sectoral social dialogue
• 20 sectoral dialogue committees bring together European-level representatives of trade unions and employers for discussions on employment and social issues.
• Sectors: agriculture, banking, civil aviation, cleaning, commerce, construction, electricity, footwear, hotels and catering; inland navigation, insurance, leather, maritime transport, personal services (hairdressing), postal services, private security, public services, railways, road transport, sea fishing, sugar, telecommunications, textiles and clothing, tobacco and woodworking.
Sectoral social dialogue: action
• Joint texts (opinions, declarations, codes of conduct etc) on a range of issues (eg training, employment, fundamental rights or health and safety)
• Not real bargaining role over pay and conditions, except– eg the conclusion of an agreement on the organisation of working time in March 2000 in civil aviation
Organisation of employers at national level
• At intersectoral level, (B, Dk, F, Ir, I), NL, Sp, S UK) : a single umbrella organisation representing companies' employers' and business/trade interests
• In D –a division between the representation of employers' and of business/trade interests, with separate central organisations for each.
• separate bodies for industry, services and in some cases agriculture as in Finland, Greece and Portugal.
Industrial relations role of employers'
organisations in the EU, Japan and USA Bargaining or significant dialogue with unions
Little/no bargaining or dialogue with unions
Intersectoral organisations
EU level,
Au, B Dk, Fin, F, D, G, Ire, I, Japan, Lux, NL, P, Sp, S
UK, USA
Sectoral organisations
EU level,
Au, B Dk, Fin, F, D, G, I, NL, P, Sp, S
Ireland, Japan, Luxembourg, UK, USA
Wage bargaining levels in the European Union
Source: EIRO * = existing level of wage bargaining; *** = dominant level of wage bargaining.
.Intersectoral
levelSectoral level Company level
B Fin Ire *** * *
Aus D . *** *
I NL P SP S . *** *
F UK . * ***
Wage formation in the European Union Source: Emmanuel Mermet, ETUI, October 1999
Country Productivity Enterprises' profits
Country Productivity Enterprises' profits
Inflation as a general indicator Inflation as determinant S UK B
Aus ** Fin P ***
Ire ** G **
NL ** ** SP *** **
Dk ** *** F ***
D *** ***
Collective bargaining coverage
Country Coverage
Austria Belgium 100%
Sweden (private sector) 90%
Denmark 80%
Netherlands 75%
Germany - France 68%
UK (non-managerial staff) 36%
system of sectoral agreements
at company level
Japan : 21 % USA : 15 %
Employee participation
Employee participation : `works councils´
• System of indirect or representational employee participation at company level or similar bodies.
• Aus, B, Dk, Fin, F, D, G, I, L, ND, P and Sp. 1. - elected by employees (sometimes trade union lists) 2. - have a range of information and consultation rights 3. - even `co-determination´ rights on some topics in some
countries (eg Germany) 4. - In Sweden, legislation provides similar rights to trade
unions in companies.
– Only in Ireland and the UK: no general, permanent system of works council-type bodies.
Patterns of representationsingle channel dual channel
based on negotiation based on information
Representatives institutions aredeveloped on a contractual
basis through sectorialagreement: the trade unionist is
the privileged interlocutor
the workforce representation insidethe company is done by an
institution different from the tradeunion
the council ismix and
directed bythe President
the councilconsists of
solely employeerepresentatives
FranceBelgiumLuxembourg
GermanySpain
UKIrelandItaly
Employee representation on the board of directors
• (or supervisory boards) • widespread participation in Aus, Dk, Fin, F,
D, Lux, NL and S, and restricted to some public sector organisations in G and Ir.
• European Works Councils (EWCs), information and/or consultation on specific issues, business transfers, collective redundancies and health and safety.
Employee participation in the USA• no legislation providing for works council-type structures or board-level employee
representation. • 96% of large employers had some form of employee involvement team, (1994)• 52% of employees reported some form of employee participation at their workplace. • participation arrangements are limited in their scope• The reason is that the National Labor Relations Act prohibits the formation of an
employer-dominated `labour organisation´ or `employee representation committee´ which deals with management over pay, working time or conditions of work. The original purpose of this provision, introduced in 1935, was to prevent employers from controlling company unions. However, as interpreted by the National Labor Relations Board (NLRB), the law results in severe restrictions on the formation of non-union teams or committees that address `terms and conditions of employment´ – which is taken to include a wide range of matters such as pay, training, productivity/efficiency rewards, work assignments, job descriptions/classification, workloads/quotas, recruitment and dismissal. However, a number of recent NLRB decisions (notably the Crown Cork & Seal case in 1998) may indicate some relaxation of this position.
• The 1995 report of the Dunlop Commission on the `future of worker-management relations´ recommended that this restriction on employee participation programmes in non-union workplaces should be lifted (though with protection for union representation). A Teamwork for Employees and Managers (TEAM) Act was subsequently introduced in Congress, which would have allowed teams of employees in non-union workplaces to work with management to address workplace issues of mutual interest. The legislation did not pass in 1995 and has not been reintroduced.
Employee participation in Japan• not governed by legislation, but• high level of employee-management cooperation• (1999) 42 % of establishments >30 employees had
a `labour-management consultation organisation´ – a permanent structure, – Japanese labour-management consultation
organisations deal with working time, working conditions, health and safety, welfare, childcare, management policies, overtime premia, pensions, lay-offs, restructuring, production/sales and training.
– Participation take many forms: written explanation by management, exchange of opinions, discussion and agreement.
Case study: McDonald
Mc donald caseRoyle T., Avoidance strategies and the German system of co-determination,
International Journal of HRM, december 1998
• In 82 : 2 betriebsrat for 160 shops
• neither group comity nor central comity
• law conditions : 1 betriebsrat by company with at least 5 employees
• the companies have between 50 and 100 employees but no betriebsrat , why?
Mc donaldexplanations
- Part time working
- high turn over
- Students, second income
- Foreigners (Turkey and Eastern) : 50 to 80 % of employees
• employees do not know their rights
Mc donaldexplanations
• no cooperation willingness with Trade Unions : only an image strategy.
• American HQ links betriebsrat with Trade Unions (communists).
• good management means no BR
Mc donaldexplanations
• In 1995 election of only 6 additional BR
• students more aware of their rights bring about the new BR.
• Management tries to delay the process
• they give special bonus from DM 5.000 to DM 90.000 in order to get rid of too zealous students
Avoidance strategies
• Legal form and job classification
• illegal measures
• regulatory lacunae
• Co-option or capture
• Bypass
• recruited acquiescence
• coercive comparisons