Protection of labour rights in times of crisis Protection of labour rights in times of crisis. The position of trade unions in the EU Beryl ter Haar 22 December 2016

Crisis and trade unions EU legal position of social partners Economic and financial measures and trade unions New developments Transnational company agreements OECD NCP

1. EU legal position of social partners Article 27 and 28 EU Charter Fundamental Rights Article 9 TFEU horizontal social clause Article 152 TFEU recognition of role social partners at EU Level Article 154/55 TFEU social dialogue  contractual agreements But Article 153(5) TFEU exclusion EU competence to regulate right to associate (including collective bargaining) and right to strike However indirectly through directives on: Collective redundancies - Occupational health and safety Information and consultation etc.

1. EU legal position of social partners EU soft law European employment strategy Wage development - Involvement NAPs Wider context Europe 2020 Strategy = political strategy for the EU to become a smart, sustainable and inclusive economy Economic approach Internal market <– economic growth <– employment <– social policy Economic & financial monitoring  European Semester Country specific recommendations

2. Economic and financial measures and trade unions Context crisis within the Eurozone Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.  Regular mechanism of monetary policy no option IMF-approach = export-led growth sustained by currency depreciation Different levels of impact of the crisis Different reasons for the crisis

2. Economic and financial measures and trade unions Example 1. Greece Problem Systemic flaws of the economy including its weak productive capacity, the vast informal economy, tax eva- sion and inadequate technological transformation and lack of innovation in industry Reform measures imposed by ECB & IMF internal devaluation/deflation policy is imposed, with spearhead the depreciation of labour by suppressing labour costs and deregulation/ flexibilisation of the labour market, involving direct wage cuts and restructuring of labour market institutions Source: Friedrich Ebert Stiftung – Policy analysis on Greece, 2012

2. Economic and financial measures and trade unions Example 2. Spain Problem Various and structural which grew over a period of time and resulted in a particularly vulnerable and structurally weak economy and which caused the real estate buble to burst Reform measures imposed by ECB & IMF Wage cuts in the public sector, frozen pensions, the raising of the pensionable age from 65 to 67, cuts in public investment and development aid and prolongations of working time were supposed to halt the indebtedness of the state budget and restore the trust of the international financial markets in the Spanish economy. a labour market reform that made dismissal easier and cheaper and promoted private job placement and temporary work agencies. Downward spiral Source Friedrich Ebert Stiftung – Study August 2013

2. Economic and financial measures and trade unions More general conclusion: ! ETUI Report Collective Social Rights under the strain of monetary union Monetary measures are an infringement of the fundamental right to collective bargaining!

2. Economic and financial measures and trade unions Social Policy Respects differences in member states Respects right to associate, including collective bargaining and right to strike Respects autonomy of social partners  no debates on f.i. wage developments  Wage too excluded from EU competence! (Art. 153(5) TFEU) Ecofin policy Political strategy Europe 2020 – no competence limitations Monetary policies – extensive application Soft recommendations with hard fines Monetary reasons for wage developments No account of social rights!

2. Economic and financial measures and trade unions More general trends in most EU Member States Ageing of trade unions (for old, white man) <-> Harsh contrast with labour market problems: youth and women in precarious jobs Decrease of sectoral collective labour agreements – increase of company-level agreements

3. New developments a. Transnational company agreements Management European scale company European-level trade union (often also EWC) Subjects include: ILO core labour standards; restructuring company; OH&S; Decent/living wage

3. New developments b. OECD National Contact Points OECD Guidelines for NMEs Include ILO core labour standards Addresses MNEs Endorsment by member state NCP =mediator = outcome resolution = goal reach agreement to solve infringing conduct = effect: naming and shaming

Thank you for your attention! For further information or questions, feel free to contact me on b.p.ter.haar@law.leidenuniv.nl