Dias 1 Social dialogue under pressure: developments in local government- Denmark Mikkel Mailand Employment Relations Research Centre, FAOS Department of Sociology University of Copenhagen Strengthening Public Services Social dialogue in an Era of Austerity, Brussels, February 21, 2013

Dias 2 Introduction The context of local government social dialogue Voluntarism, model employer – pay and conditions mainly set by social partners Bargaining and co-determination/consultation on several levels Local government is the largest main bargaining sector, but state is the lead bargaining sector – the third sector is the regions Biannual sector-level bargaining sets pay and conditions – Local Government Denmark (KL) bargaining actor for municipalities Limited legislation – but the government has double role as bargaining partner and legislator (+ lead bargaining sector) Impact of austerity measures (government policies) Limited impact of austerity measures on pay, conditions and SD, some on job levels (net job loss 2.1 % 2Q 2010 – 3Q 2011) Indirect austerity measures: the regulation-mechanism

Dias local government collective bargaining round Local government collective bargaining round 2011 Context: Regulation-mechanism negative, mass-layoffs begun, trade unions in weaker power position Process: Much tougher employers than usual – state sector (vs. municipal sector) even more dominant than usual Results: Wage increase below real wages, but no wages cuts. No new job security and hardly any employment security measure. No important changes TU Voting: Big yes, but fewer members voted than previously

Dias local government sector social dialogue In-between sector-level social dialogue 2012 More than usual, non-binding, incl. working-groups on labour supply, further training, quality and job-content, inclusive lm Not all working groups were successful, but the dialogue itself show ability to communicate despite of BR 2011 Local government bargaining round 2013 (unfinished to date) Context: Same as doubt re: future of regulation-mech. Process: tougher employer demands than in 2011, incl. moving working time from bargaining to unilateralism (education area) Results (so far): Same as in 2011 – few important changes. But process unfinished (including education area issue above) TU Voting: ? – but yes is expected Future prospects: More areas taken away from SD? Bargaining rounds with marginal changes for ever?

Dias 5 Local level local government – case studies etc. Social dialogue - indications Local pay-negotiations might have been effected, but have not stopped Bargaining on other issues and co-determination/consultation continues Case-studies shows that local level social dialogue can play a role in solutions to crisis-related changes Case-studies: Open attitudes, early involvement of trade unions and clear division of labour important for the quality of SD Case-studies: fruitful tools incl. remunerations, extra pension, natural wastage, job-banks and job-rotations projects Cutbacks – limited in most municipalities? 26 % show more 5 % cuts in service budgets since 2008

Dias 6 Conclusions Austerity measures and policies Have been relatively modest in scope and impact. Mostly been of the quantitative type Drivers of change Austerity measures/crisis related policies not only driver Other: structural reform, demographic development, changes of responsibilities and unforeseen effects of privatisation Local gov social dialogue – mostly resilience, future reconfiguration? Shift in power relations in the direction of the employer side, but the social dialogue institutions are by and large unchanged Nevertheless, increasing employer emphasis on management prerogative/unilateralism might indicate future changes