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Vorstand EMF Summer College 2010 Lisbon 13. – 15. September 2010 The impact of the crisis and speculation on collective bargaining in Europe.

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Presentation on theme: "Vorstand EMF Summer College 2010 Lisbon 13. – 15. September 2010 The impact of the crisis and speculation on collective bargaining in Europe."— Presentation transcript:

1 Vorstand EMF Summer College 2010 Lisbon 13. – 15. September 2010 The impact of the crisis and speculation on collective bargaining in Europe

2 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 2 The impact of the crisis and speculation on collective bargaining in Europe Current economic situation Examples of collective bargaining during the crisis Coordination rule

3 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 3 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.

4 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 4 Forecasts for European metal sectors. Change in production in % Source: EUROFER, July 2010

5 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 5 Current economic situation (2) 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.

6 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 6 Current economic situation (3) More risks: No change in regulation! Recovery leads to business as usual Post-crisis same as Pre-crisis!

7 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 7 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?

8 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 8 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?

9 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 9 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.

10 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 10 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.

11 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 11 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!

12 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 12 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!

13 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 13 Development of collectivly agreed wages in European Metal and Electrical Industries 2000 – 2008. VOWA minus inflation (in %)

14 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 14 Development of collectivly agreed wages in European Metal and Electrical Industries 2000 – 2008. VOWA minus inflation rate minus productivity increase. (in %)

15 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 15 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).

16 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 16 Employees covered by collective agreements Manufacturing industry (West-Germany) in % Source: IAB Betriebspanel The year 2009 is not exactly comparable to former years due to a change in the statistical database.

17 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 17 Employees covered by collective agreements Manufacturing industry (East-Germany) in % Source: IAB Betriebspanel The year 2009 is not exactly comparable to former years due to a change in the statistical database.

18 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 18 Cases of temporary and conditional deviation from collective agreement Actually exist 855 cases – Status 07.05.2010

19 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 19 Temporary deviation: what IG Metall conceded...(2004 – 07.05.2010)

20 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 20 Temporary deviation:...what we got in exchange

21 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 21 Temporary Agency Work in Europe Source: IAB Betriebspanel Country Number of workers* 2007 Rates of change 2004-2007 (%) Belgien95.465 (382.188)27,1 (17,39) Dänemark20.600-12,4 Deutschland614.00053,6 Finnland28.000100 Frankreich637.90111,9 Griechenland8.172133,3 Großbritannien1.196.000(8,7) Irland35.00040 Italien(594.744)(48) Luxemburg(8.003)(45,8) Niederlande233.00048,4 Norwegen24.9828,6 Österreich59.26234,3 Polen60.00093,5 Portugal(103.400**)(10,9***) Rumänien(c. 25.000)n.a. Schweden59.40069,7 Slowakei*10.828n.a. Slowenien(4.874)(99,3) Spanien160.0004,6 Tschechische Republik35.000n.a. Ungarn55.0004,4

22 Vorstand IG Metall Vorstand, Funktionsbereich Tarifpolitik 22 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?

23 Vorstand Collective Bargaining Department / European Wage Policy Uwe Fink, Tel.: +49/69/6693-2151, uwe.fink@igmetall.de uwe.fink@igmetall.de Thanks for your attention!


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