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![Page 1: Trends in collective bargaining in the EU Final conference: “Collective bargaining in Croatia and EU today” Zagreb, 14 October 2015 Dr. Torsten Müller.](https://reader036.fdocuments.net/reader036/viewer/2022062322/5697bff91a28abf838cbfe17/html5/thumbnails/1.jpg)
Trends in collective bargaining in the EU
Final conference: “Collective bargaining in Croatia and EU today”
Zagreb, 14 October 2015
Dr. Torsten Müller
European Trade Union Institute - ETUI
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Megatrends as challenges for trade unions and CB
1.) Structural change: Manufacturing to services Increasing privatisation of public sector
2.) Increase of precarious and and atypical forms of employment
3.) Globalisation makes national regulation more difficult
4.) Neoliberal hegemony – reinforced by crisis
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Main trends in collective bargaining systems across EU
1.Change in political framework conditions: unprecedented degree of direct political interventions
2.Different modes and degrees of decentralization in collective bargaining structures
3.Spread of company-level employment and competitiveness pacts
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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EU crisis management
Basic assumptions:
1. Crisis is primarily a crisis of cost competitiveness
2. Lowering labour costs is the key to regain (price) competitiveness and to address macroeconomic imbalances!!!
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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EU crisis management New European Economic Governance:A new European interventionism in the area of wage policy through European Semester/European Imbalances procedure: half of the EUMember states received recommendations Troika /Memorandum of Understanding
Policy measures: Direct intervention into wage developments by cutting and freezing public sector and minimum wages Structural reforms of wage setting institutions to increase downward flexibility of wages
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Intervention into national collective bargaining
DG ECFIN 2012: “Employment friendly reforms”
Decreasing bargaining coverage Decreasing extension of collective
agreements Decentralizing bargaining systems Removing or limiting the favourability
principle Introducing/extending possibilities to
derogate from higher level agreements Overall reduction of wage-setting power of trade unions
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Continuity DG ECFIN approach
DG ECFIN 2015:
“Moreover, major reforms in the labour market, such as decentralised wage bargaining and more flexible wage arrangements, … as well as past wage moderation will also support job creation.”
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Country-specific recommendations 2011-2014
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Measures in countries under international surveillance
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Abolition of additional benefits in public service (2008-13)
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Greece Hungary Portugal Romania Spain
13th/14th monthly pay
Cuts in pension entitle-ments
Accomo-dation allowance
Medicationallowance
Food allowance
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Eingriffe in nationale Mindestlöhne
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
22 % cut (32% cut for young
workers under 25) in 2012
Freeze until the end of the assistance
programme
Freeze 2011-2014
No MW rise without approval
of Troika
1 € cut in 02/2011rescinded in
07/2011
Freeze since 1997
Suspension of automatic Indexation
No MW rise without approval
of Troika
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National hourly minimum wages (in Euro, January 2015)
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Quelle: WSI-Minimum wage database
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Minimum wage in % of median wage
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Real compensation in the EU 2010-2014
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Number of collective agreements
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Decollectivisation of industrial relations
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Portugal Spain2008 2013 2008 2013
Agreements 295 94 5987 3161
Of which company
95 48 4539 2274
Extension 137 9
Workers covered
1.8 mio 242,000 12 mio 8.5 mio
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Collective Bargaining Coverage
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Dominant level of negotiations
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
Quelle: European Commission 2015: Industrial Relations in Europe 2014
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Implications of interventionist approach
1. Systematic undermining of (cross-)sectoral systems of multi-employer collective bargaining
2. Dramatic decrease of collective bargaining coverage leading in parts to a decollectivisation of industrial relations
3. Pressure on wages: deflationary tendencies and downward wage competition with negative consequences for internal demand.
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Organized de-centralization in northern European countries
(Inter-)sectoral agreements define the terms of transferring bargaining competences to lower levels
Tools: Company-level employment pacts State-sponsored schemes for
temporary working time reductions
and lay-offs
Path-dependent adjustment of existing
multi-employer bargaining systems
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Wages and collective bargaining under deflation: alternative approach
● Stabilising and enforcing wage developments:
• counter deflationary price developments
• stabilise and increase private demand
• counter income inequality
● Requires …• stop of wage cuts and wage freezes
• wages increase at least in line with productivity and target inflation
• more expansive wage developments in the surplus countries
● Requires …• strengthening of wage setting institutions
Dr. Torsten Müller – Collective bargaining in Croatia and EU today, Zagreb, 14 October 2015
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Thank you very much for your attention!!!
Dr. Torsten MüllerSenior Researcher
European Trade Union InstituteBld. du Roi Albert II, 51210 BrusselsEmail: [email protected]
Dr. Torsten Müller – ILO-EPSU Seminar, April 2015
Trends in collective bargaining in the EU