AIAS Paper Series on the Labour Market and Industrial Relations in the Netherlands

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1 AIAS Paper Series on the Labour Market and Industrial Relations in the Netherlands The Representativeness of Trade Unions and Employer Associations in the private security sector Marianne Grunell No Reprint

2 Reprint December 2013 Marianne Grunell, Amsterdam Bibliographic information Grunell, M. (2013). The Representativeness of Trade Unions and Employer Associations in the private security sector. AIAS Labour markets and industrial relations in the Netherlands series, no Information may be quoted provided the source is stated accurately and clearly. Reproduction for own/internal use is permitted. The original document can be downloaded at This paper can be downloaded from our website under the section: Publications/NL Industrial Relations series.

3 Marianne Grunell The Representativeness of Trade Unions and Employer Associations in the private security sector Marianne Grunell University of Amsterdam Hugo Sinzheimer Institute AIAS Paper Series Labour Markets and Industrial Relations in the Netherlands No Reprint September 2010

4 The representativeness of trade unions and employer associations in the private security sector

5 Marianne Grunell Table of contents ABSTRACT SECTORAL PROPERTIES THE SECTOR S TRADE UNIONS AND EMPLOYER ASSOCIATIONS INTER-ASSOCIATIONAL RELATIONSHIPS THE SYSTEM OF COLLECTIVE BARGAINING FORMULATION AND IMPLEMENTATION OF SECTOR-SPECIFIC PUBLIC POLICIES STATUTORY REGULATIONS OF REPRESENTATIVENESS COMMENTARY... 11

6 The representativeness of trade unions and employer associations in the private security sector List of Tables TABLE 1 SECTORAL PROPERTIES... 1 TABLE 2 UNION FACT SHEET: FNV BONDGENOTEN... 2 TABLE 3 UNION FACT SHEET: CNV DIENSTENBOND... 4 TABLE 4 UNION FACT SHEET: DE UNIE... 5 TABLE 5 EMPLOYERS ORGANISATION: ASSOCIATION FOR PRIVATE SECURITY ORGANISATIONS (VPB) TABLE 6 SECTOR-RELATED MULTI-EMPLOYER WAGE AGREEMENTS... 9 TABLE 7 FOUR MOST IMPORTANT AGREEMENTS IN TERMS OF EMPLOYEES COVERED... 9

7 Marianne Grunell Abstract The private security sector is a dynamic and growing part of the Dutch economy. The social partner for employers is the Association for Private Security Organisations (VPB), with the unions FNV Bondgenoten, CNV Dienstenbond and De Unie/MHP representing about 30% of the sector s employees. The VPB multiemployer agreement covers 49 companies and 21,610 employees and is extended. The representativeness of the social partners is not an issue. It is notable that the social partners cooperate with the Labour Inspectorate over compliance with the settlements of the collective agreement. This cooperation has led to research teams being set up by the social partners themselves. 1. Sectoral properties Table 1 Sectoral properties Number of companies in the sector 560 1,415 Source of company data Central Bureau for Statistics* Central Bureau for Statistics Aggregate employment 0 0 Male employment 0 0 Female employment 0 0 Share of sectoral employment in % NA NA Source of employment figures Comment If employment is taken from another source than the one provided, please provide your reasons, referring to meta-data. Aggregate employees 15,600 36,300 Male employees 11,800 27,200 Female employees 3,800 9,100 Share of sectoral employees in % * The respondents employer and employee representatives state a lower number of companies and employees in the sector, 29,513 employees and around 350 companies. In the study, the figures provided by the social partners will be used as the reference. AIAS Page 1

8 The representativeness of trade unions and employer associations in the private security sector 2. The sector s trade unions and employer associations This section includes the following trade unions and employer associations: (i) trade unions which are party to sector-related collective bargaining (In line with the conceptual remarks outlined in the background information included in the accompanying excel spreadsheet, we understand sector-related collective bargaining as any kind of collective bargaining within the sector, i.e. singleemployer bargaining as well as multi-employer bargaining. For the definition of single- and multi-employer bargaining, see 4.2) (ii) trade unions which are a member of the sector-related European Union Federation (i.e. UNI- Europa Property Services) and are members of the existing European Sectoral Social Dialogue Committee. (iii) employer associations which are a party to sector-related collective bargaining (iv) employer associations (business associations) which are a member of the sector-related European Employer/Business Federations (i.e. CoESS Confederation of European Security Services) 2a Data on the trade unions Table 2 Union Fact sheet: FNV Bondgenoten Affiliation to multinational organisations Affiliation to European-level organisations Affiliation to national-level organisations Engagement in sector-related collective bargaining Type of membership Consultation in sector-related matters Union's domain with regard to sector Domain overlap with other unions in sector Domain overlaps occur with the following unions in the sector Please give full names (when listing the org. for the first time) and abbreviations. Uni Europa - Property Services FNV voluntary overlap CNV Dienstenbond, De Unie Page 2 AIAS

9 Marianne Grunell Active union members total (in employment) Union members (incl. nonemployed), total Active union members in the sector (in employment) Union members in the sector, total (incl. non-employed) Female membership as a % of total members Source of sectoral membership figures Union density - active members , , ,200 4,200 20% Administrative Rough estimate - in case no 'exact' figures are available Sectoral density - active members - Sectoral domain density - active members Union density - total members Rough estimate - in case no 'exact' figures are available. Sectoral density - total members Sectoral domain density - total members Description of union's domain with regard to sector Representation of other groups than employees in the sector. The union covers the whole sector. Yes, the union also represents temporary workers, flex workers and (if required) self-employed workers AIAS Page 3

10 The representativeness of trade unions and employer associations in the private security sector Table 3 Union Fact sheet: CNV Dienstenbond Affiliation to multinational organisations Affiliation to European-level organisations Affiliation to national-level organisations Engagement in sector-related collective bargaining Type of membership Consultation in sector-related matters Union's domain with regard to sector Domain overlap with other unions in sector Domain overlaps occur with the following unions in the sector Active union members total (in employment) Union members (incl. non-employed), total Active union members in the sector (in employment) Union members in the sector, total (incl. non-employed) Female membership as a % of total members Source of sectoral membership figures Union density - active members Sectoral density - active members Sectoral domain density - active members Page 4 WOW Uni-Europa; Christian European Union CNV voluntary overlap FNV Bondgenoten, De Unie ,200 37, ,500 1,500 20% Administrative AIAS

11 Marianne Grunell Union density - total members Sectoral density - total members Sectoral domain density - total members Description of union's domain with regard to sector Representation of other groups than employees in the sector... The union covers the whole sector. Yes, the union also represents temporary workers, flex workers and (if required) self-employed workers Table 4 Union Fact sheet: De Unie Affiliation to multinational organisations Affiliation to European-level organisations Affiliation to national-level organisations Engagement in sector-related collective bargaining Type of membership Consultation in sector-related matters Union's domain with regard to sector Domain overlap with other unions in sector Domain overlaps occur with the following unions in the sector Active union members total (in employment) Union members (incl. nonemployed), total Active union members in the sector (in employment) Union members in the sector, total (incl. non-employed) Please give full names (when listing the org. for the first time) and abbreviations. Uni-Europa - (Property Services) CMHP voluntary overlap FNV Bondgenoten, CNV Dienstenbond ,500 64, ,080 2,080 AIAS Page 5

12 The representativeness of trade unions and employer associations in the private security sector Female membership as a % of total members Source of sectoral membership figures Union density - active members Sectoral density - active members Sectoral domain density - active members Union density - total members Sectoral density - total members Sectoral domain density - total members Description of union's domain with regard to sector Representation of other groups than employees in the sector 20% Administrative... The union covers the whole sector. Yes, the union also represents temporary workers, flex workers and (if wanted) self-employed workers 2b Data on the employer associations Table 5 Employers organisation: Association for Private Security Organisations (VPB) Affiliation to multinational organisations Affiliation to European-level organisations Affiliation to national-level organisations Engagement in sectoral-related collective bargaining Consultation in sector-related matters Page 6 Type of membership Organisation's domain with regard to sector Domain overlap with other organisations in sector Domain overlaps occur with the following organisations Please give full names (when listing the org. for the first time) and abbreviations. CoESS VNO-NCW voluntary congruence no N.A> 2009 AIAS

13 Marianne Grunell Number of member companies, total 49 Number of employees in member companies, total 21, Number of member companies in sector 49 Number of employees in member companies in sector 21,610 Source of membership figures Administrative Domain density - companies Sectoral density - companies Sectoral domain density - companies Domain density - employees Sectoral density - employees Sectoral domain density - employees Description of organisation's domain with regard to sector Representation of particular subgroups of enterprises The domain is the sector. No 3. Inter-associational relationships 3a Inter-union relationships 3a.1 Please list all trade unions covered by this study whose domains overlap. FNV Bondgenoten, CNV Dienstenbond and De Unie/MHP. 3a.2 Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation? No. 3a.3 If, are certain trade unions excluded from these rights? No data supplied 3b Inter-employer association relationships 3b.1 Please list all employer associations covered by this study whose domains overlap. The Association for Private Security Organisations (VPB). AIAS Page 7

14 The representativeness of trade unions and employer associations in the private security sector 3b.2 Do rivalries and competition exist among the employer associations, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation? Not applicable 3b.3 If, are certain employer associations excluded from these rights? Not applicable 3b.4 Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining? No. 4. The system of collective bargaining 4.1 Sector s rate of collective bargaining coverage Estimate the sector s rate of collective bargaining coverage (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector). 100% 4.2 Relative importance of multi-employer agreements Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered. (Multi-employer bargaining is defined as being conducted by an employer association on behalf of the employer side. In the case of single-employer bargaining, it is the company or its subunit(s) which is the party to the agreement. This includes the cases where two or more companies jointly negotiate an agreement.) The VPB multi-employer collective agreement (for 21,600 employees in the 49 companies affiliated to VPB) is extended to the sector (318 companies, employing nearly 90% of employees). A few companies top up this agreement resulting in a company agreement, for example Schiphol airport. Some companies apply a different collective agreement, for example the one on logistics. The collective bargaining parties mentioned above the employer organisation VPB and the unions FNV Bondgenoten, CNV Dienstenbond and De Unie/MHP conclude a multi employer agreement. This agreement, on behalf of the members of VPB, is extended by a ruling of the Minister of Social Affairs who takes into account the representativeness of the companies and employees involved (using a threshold for representativeness of 70% of the total of employees in the sector). Page 8 AIAS

15 Marianne Grunell Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations? Yes, see If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional? Yes, see Sector-related multi-employer wage agreements List all sector-related multi-employer wage agreements* valid in 2008 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. * Only wage agreements which are (re)negotiated on a reiterated basis. Table 6 Sector-related multi-employer wage agreements Bargaining parties Purview of the sector-related multi-employer wage agreements Sectoral Type of employees Territorial Employer org. VPB Unions FNV Bondgenoten, CNV Dienstenbond, De Unie all national 4.4 Sector s four most important collective agreements List the sector s four most important collective agreements (single-employer or multiemployer agreements) valid in 2008 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. Importance is measured in terms of employees covered. Table 7 Four most important agreements in terms of employees covered Bargaining parties Purview of the agreements Sectoral Type of employees Territorial Employer org. VPB Unions FNV Bondgenoten, CNV Dienstenbond, De Unie all national AIAS Page 9

16 The representativeness of trade unions and employer associations in the private security sector 5. Formulation and implementation of sector-specific public policies 5.1 Are the sector s employer associations and trade unions usually consulted by the authorities in sector-specific matters? If, which associations? All four parties mentioned above, are consulted by the authorities, particularly on health and safety issues. Other issues are managed in a bipartite way. As in other sectors, there is a training fund and a pensions fund, which are governed by representatives of employers and unions. Furthermore, the social partners initiated control on compliance with the collective agreement. A team of accountants controls companies a- select or, on request, select. Companies which do not comply with the collective agreement are fined. This matter is taken extremely seriously as both employers and employees are keen on keeping up standards, also in the perspective of unfair competition. 6. Statutory regulations of representativeness 6a Statutory regulations of representativeness for trade unions 6a.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements? If, please briefly illustrate these rules and list the organisations which meet them. There are no statutory regulations with regard to representativeness. 6a.2. In the case of the unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If, please briefly illustrate these rules and list the organisations which meet them. There are rules on representativeness with regard to participation in the tripartite Social and Economic Council (SER) and in the bipartite Labour Foundation (STAR). As a result, three union federations are represented in these bodies: Federations of Dutch Trade Unions (FNV), Christian Trade Union Federation (CNV) and MHP, the national union federation for middle and higher personnel. 6a.3. Are elections for a certain representational body (e.g. works councils) established as criteria for union representativeness? If, please report the most recent electoral outcome for the sector. No. Page 10 AIAS

17 Marianne Grunell 6b Statutory regulations of representativeness for employer organisations 6b.1. In the case of the employers organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to conclude collective agreements? If, please briefly illustrate these rules and list the organisations which meet them. There are no statutory regulations with regard to representativeness. 6.b.2. In the case of the employers organisations, do statutory regulations exist which establish criteria of representativeness which an organisation must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If, please briefly illustrate these rules and list the organisations which meet them. There are rules on representativeness with regard to participation in the tripartite Social and Economic Council (SER) and in the bipartite Labour Foundation (STAR). As a result, three employer associations are represented in these bodies: VNO-NCW, the largest business lobbying organisation in the Netherlands; MKB-Nederland, the employer association for SMEs; LTO-Nederland, the organisation for the agricultural sector. 6b.3. Are elections for a certain representational body established as criteria for the representativeness of employer associations? If, please report the most recent outcome for the sector. No. 7. Commentary The private security sector is a dynamic and growing part of the Dutch economy. The sector s employers are represented in several areas, including collective bargaining, by one association, VPB. Employees are represented by FNV Bondgenoten, CNV Dienstenbond and De Unie/MHP. The unions estimate that, together, they represent about 30 % of the sector s employees. In addition to the collective agreement, which is extended, there are a few single company agreements. The VPB multi-employer agreement covers around 49 companies and 21,610 employees and is extended. It is estimated that 100% of labour agreements in the sector are collective labour agreements. Employer and employee organisations are happy with the multi-employer agreement, as it helps them to normalise labour relations and conditions in the sector. The representativeness of the social partners is not at issue; their successful cooperation is evident. Consultation on relevant issues with government is normal. What is exceptional, however, is the close cooperation with the Labour Inspectorate on compliance with the settlements of the collective agreements. AIAS Page 11

18 The representativeness of trade unions and employer associations in the private security sector This cooperation has led to delegation of responsibilities to the sector. There are no jurisdictional disputes or recognition problems. Page 12 AIAS

19 Marianne Grunell AIAS publication series 'Labour markets and industrial relations in the Netherlands' Flexicurity and industrial relations Frank Tros December Posted workers Robbert van het Kaar December Helping young workers during the crisis: contributions by social partners and public authorities Marianne Grunell December Government and Social Partner Actions to address the Gender Pay Gap Marianne Grunell December The Representativeness of Trade Unions and Employer Associations in the Civil Aviation Sector. Marianne Grunell December The Representativeness of Trade Unions and Employer Associations in the Personal Services. Marianne Grunell December Eiro Annual Review 2008 Marianne Grunell November The Representativeness of Trade Unions and Employer associations in the footwear sector Marianne Grunell November The representativeness of trade unions and employer associations in the catering sector Marianne Grunell November Developments in social partner organisations: employer organisations Marianne Grunell an Frank Tros November The representativeness of trade unions and employer associations in the inland water transport sector Marianne Grunell November Representativeness study of the European social partner organisations: Metal sector Marianne Grunell November Eiro Annual Review 2009 Marianne Grunell October Industrial Relations in the Health Care sector AIAS Page 13

20 The representativeness of trade unions and employer associations in the private security sector Marian Schaapman October Representativeness study of the European social partners organisations: Education sector Marian Schaapman October Representativeness of the European social partner organisations: Commerce October 2013 Marianne Grunell Representativeness study of the European social partners organisations: Public administration sector Marian Schaapman October EIRO CAR on SMEs in the crisis: Employment, Industrial Relations and Local Partnership Marianne Grunell October The Representativeness of Trade Unions and Employer Associations in the Banking Sector Marian Schaapman October Employment and Industrial Relations in the Hotels and Restaurants Marianne Grunell October The Representativeness of Trade Unions and Employer Associations in the sea fisheries Sector Marianne Grunell October The Representativeness of Trade Unions and Employer Associations in the paper Sector Marianne Grunell October The Representativeness of Trade Unions and Employer Associations in the Insurance Sector Marianne Grunell September Employment and Industrial Relations in The railways sector Marianne Grunell August 2013 Page 14 AIAS

21 Marianne Grunell 2011 No. Reprint Collective Bargaining in the Dutch metal and electrical engineering industry Maarten van Klaveren and Kea Tijdens August No. Reprint Quality standards of work in the Netherlands Kea Tijdens July 2012 AIAS Page 15