Trade Unions in the Scandinavian countries, roles and structures -In the Danish/Scandinavian Labour Market -And in Danish/Scandinavian Societies

Presentation:  Mr. Bo S. Larsen, Denmark  Senior Adviser in the Danish Metal Workers Union and World President of UNI Telecom

The presentation includes:  A brief historical overview  Structures of the Danish/Scandinavian Labour Market  Focus on a typical trade union, structure, financial system, tasks and roles  Flexicurity, a model for the Labour Market?

History of the Labour Market  1899  The foundation of the Confederation of Trade Unions and the Employers Confederation  The foundation of The Labour Market Constitution

23. March 2007EURES Seminar5 Trade Union Confederations  LO: 17 unions and members  FTF: 100 unions and members  AC: 22 unions and members  Approx. 80% is organised

The Labour Market Constitution  The right to be organised  Recognition of the two Confederations as partner in the Labour Market  National Collective Branch Agreements  Legal right to strike/lock – out  Labour Market Court  Democracy at the Workplace

23. March 2007EURES Seminar7 Organisational principles  Organised on educational basis  Dual local structures Geographical branches Enterprise clubs  National Unions are main organisational level  Cartels play an important role in some sectors  Minimal competition among main confederations

23. March 2007EURES Seminar8 Main tasks of the trade unions  Collective bargaining  Disputes handling  Bipartite social dialogue  Vocational Training  Occupational Health and Safety  Unemployment insurance  Labour Market Policy  Tripartite social dialogue

23. March 2007EURES Seminar9 Danish IRS: Based in historical tradition  Strong trade unions  Strong employers organisations (40-50% of employers – Higher % of workforce)  Early basic compromise (1899)  Absense of legislation  Agreements are legally binding and collectively enforced  Not possible to leave agreement by leaving organisation  Comprehensive collective agreements  Decreasing level of ideology on both sides

23. March 2007EURES Seminar10 Danish IRS: Areas of interaction ConflictCooperation National Collective bargaining Disputes procedures Joint lobbying National part of cooperation structure Enterprise Collective Bargaining Disputes Cooperation Committees Members of Company Boards

23. March 2007EURES Seminar11 Collective Agreements in Denmark Private Sector  Two tier ”minimum wage” agreements (3/4 of employees in private sector)  One tier ”normal wage” agreements Public Sector  State sector  Municipal sector

23. March 2007EURES Seminar12 Manufacturing Industry  Confederation of Danish Industries  Central Organisation of Industrial Employees  Very wide coverage of agreement. Roughly ¾ of all employed in manufacturing industry Further coverage through accession agreements

23. March 2007EURES Seminar13 Conflict Two tier collective bargaining  Since 50’ties in metal sector – since 1990’ties in other manufacturing  General terms and minimums agreed at national level  Wage and implementation agreed at enterprise level  Shop Steward is negotiating on behalf of union members  No right to strike

The Trade Union Structure  Congress – every 3 or 4 year  National Committee  Excecutive Committee  Section – annual meetings  Shop Steward  Members

23. March 2007EURES Seminar15 Cooperation Cooperation Committees  All companies with more than 35 employees  Parity committee  Workers side is represented by Shop Stewards  New technology  Active in restructuring

23. March 2007EURES Seminar16 Affiliation Fees: ElementsDKR€ National trade union32543 Branch23031 Unemployment benefit40053 Pre-pension payment38952 Free time accident insurance405 Total Trade Union affiliation fees are tax deductible (reduces cost with 25-30%) Average hourly pay for a welder: Dkr 150 (€ 20)

23. March 2007EURES Seminar17 Where are the conflict lines strongest? Trade UnionsEmployers State Collective Agreements Social Dialogue Legislation

23. March 2007EURES Seminar18 The Traditional Flexicurity model: The Golden Triangle Flexibility in employment Active labour market policies High level of unemploy- ment benefit

23. March 2007EURES Seminar19 The extended flexicurity model: Beyond ”the golden triangle” Climate of continuous responsible social dialogue Flexibility in employment and on the workplace Effective collective agreements High level of unemployment benefit Active labour market policies No exclusion from the social system

Turnover on the Danish Labour Market 2001 Job turnoverNumber of jobsPercent Job creation ,1 Job loss ,4 Employment turnoverNumber of PersonsPercent New employment ,8 Job departures ,2 Total number of employed persons

Percentage who think it is good for people to change jobs every few years

How long time did unemployed skilled metalworkers claim benefit in 2006?

Percentage of the work force on limited time contracts 1985 and 2005

23. March 2007EURES Seminar24 Manufacturing industry wage cost 2005, €/Hr, Gesamtmetall

2 Marts 2009Fellesforbundet25

2 Marts 2009Fellesforbundet26

Vocational Training

23. March 2007EURES Seminar28 Rate of participation in continuing training

23. March 2007EURES Seminar29 Training provisions in the manufacturing industry agreements Right to negotiation about educational plan 2 weeks per year of enterprise relevant training with full pay 2 weeks of training with pay when dismissed after 3 years of employment at the company 2 week of non-enterprise relevant training with 85% pay (just agreed) Training committes in the enterprises