September 2012 –Partners Meeting Introduction Managing workforce change: Strengthening public services social dialogue in an era of austerity

Actions (1/02/12 – 28/02/13) 1.Meeting with EU representatives (Feb 2012) 2.National stakeholder meetings (Summer 2012) - Country case studies 3.National reports (September 2012) 4. Comparative Report (Draft: December 2012) 5.Conference: Friday 22nd Feb 2013 (Friday 1st Feb 2013) 6.Final Reporting: February 2013

Objectives of the Day 1.Present/discuss draft national reports: - revising national reports - engagement with questions/model 2.Comparative national report 3.Conference – timing/approach/attendance 4.Longer term issues: - publications - conference participation - future research plans

Research Questions  Examine changes in employment, terms and conditions, patterns of work organisation since 2008/9  How have austerity measures been designed and implemented?  How have different national/sectoral institutions of involvement influenced the process and outcomes of austerity?  Initial Propositions: A) stronger institutions = more acceptable IR change B) austerity overwhelms scope for consensual change

Drivers of Austerity Budgets Politics Technology Austerity Measures Pay freeze/job loss/service redesign Framework to analyse austerity measures and the role of social dialogue outcomes Economic Social Political Voice Social Dialogue Legal rules & bargaining structures Social Dialogue Legal rules & bargaining structures Political and economic characteristics size/scope of public services Political and economic characteristics size/scope of public services Source: adapted from Dornelas et al 2011

Initial Findings Austerity The crisis ‘austerity’ as a driver of change? - in some cases, but strong caveats... timelags - reinforcement of previous reforms Variation between countries: - severity of deficit/debt - political ideology - legacy of earlier reforms – appetite/need for reform Other drivers: - demography - technology?

Measures Wage freezes: - freeze of pay scales Wage cuts: - targeted at higher earners (not CZ) - pension reforms Employment reductions: - via non-replacement ratios – attrition (FR/IT) - redundancies/severance (UK) Work organisation: - temporary employment

Social Dialogue National Level Little input from employers/unions in formulation - legitimacy: direct public appeals/fiscal rules Hollowing out of national industrial relations? - legislative/budgetary instruments dominate - wage freezes/cuts severely limit ‘bargaining’ - shift towards single-employer level Sectoral level – generally similar trends?

Social Dialogue Employer level LG Central control exercised via financial envelopes Scope for employer choice: - severity of cuts - role of differing institutional rules - union approach cooperative/confrontational - type of services provided Employer policy: - performance management, outsourcing productivity deals

Outcomes Wage moderation and reductions Employment reductions Social dialogue is weak at national level - more of a role at LG level – ritual? Mobilisation: - stronger in FR, UK (less dialogue)...limited results unintended consequences – morale, staff shortages

Conclusions 1 Austerity: a factor of many Social dialogue: a return to unilateralism? - LG Employer level – concession bargaining/imposition Actors: - Unions – weakened & being delegitimised? - Employers - tougher stance

Conclusions 2 Variations between countries: - severity of pressure/cuts (FR/IT, NL); govt ideology (Fr/UK) - within local government as well as between countries Quantitative: break with past – cuts Qualitative: reforms more path dependent