COLLECTIVE BARGAINING AGREEMENTS : SOME BASICS TURIN MARCH 2004

COLLECTIVE BARGAINING : SOME BASICS AN EUROPEAN OVERVIEW THE ETUC AND THE COORDINATION OF COLLECTIVE BARGAINING IN EUROPE

DEFINITION OF A COLLECTIVE BARGAINING AGREEMENT AN AGREEMENT BETWEEN ONE OR SEVERAL (REPRESENTATIVE) TRADE UNION(S) AND EMPLOYER (S) OR THEIR (REPRESENTATIVE) ORGANISATION STIPULATING THE WAGE AND WORKING CONDITIONS IN FIRMS, SECTORS OR THE ECONOMY

WHY ? SIMPLISTIC ECONOMIC POINT OF VIEW SUPPLY AND DEMAND FOR LABOUR IN FACT : NO ROOM FOR COLLECTIVE BARGAINING

WHY ? FROM MODEL TO REALITY : *ABUSE OF POWER MARKET EQUILIBRIA MAY BE BAD SOCIAL OUTCOMES DYNAMIC INSTEAD OF STATIC OUTCOMES : DO NOT COMPETE ON THE BASIS OF POVERTY WAGES AND BAD WOKING CONDITIONS

Why ? BENEFITS OF COLLECTIVE BARGAINING : EFFICIENCY INSTEAD OF ‘VOTING WITH FEET’ SOCIAL PEACE PREDICTABILITY OF WAGE COSTS INTRODUCES STABILITY (macro aspect ; human capital and worker’s mobility) INSTRUMENT OF CRISIS MANAGEMENT ENHANCES PRODUCTIVITY BY BLOCKING FALSE COMPETITION

ON WHAT ? WAGES : classification of jobs to set up structure of pay ; level of minimum wages ; regular pay increases ( in pp or with a fixed amount) (minimum wage or effective wage) ; indexation ; premiums ; profit sharing ; LABOUR TIME AND HOLIDAYS : from labour law to collective agreement ADDITIONAL SOCIAL BENEFITS MINIMUM CHARACTER

HOW ? IMPORTANT INTERACTION WITH SYSTEMS OF LAW / GOVERNMENTS CREATION OF SECTORAL COMMITTEES; NATIONAL (ADVISORY) BOARDS WITH SOCIAL PARTNERS PRINCIPLE OF HIERARCHY PRINCIPLE OF AUTOMATIC CONVERSION DOES NOT ALWAYS TURN OUT POSITIVE FOR TRADE UNIONS (Government intervention to ‘save competiveness’

Who ? Representative trade unions Who is covered ?

When ? Some agreements have indefinite duration Other’s are limited in time (what happens afterwards ?)

On what level ? INTERSECTORAL SECTORAL ENTERPRISE UNIT

CONCLUSION COLLECTIVELY SET UP STANDARDS IN ORDER TO CORRECT ‘WILD’ MARKET FORCES FLEXIBLE IMPLEMENTATION