Social Dialogue in Micro and Small Companies

Transcription

1 Corell Uiversity ILR School Iteratioal Publicatios Key Workplace Documets 2014 Social Dialogue i Micro ad Small Compaies Eurofoud Follow this ad additioal works at: Thak you for dowloadig a article from DigitalCommos@ILR. Support this valuable resource today! This Article is brought to you for free ad ope access by the Key Workplace Documets at DigitalCommos@ILR. It has bee accepted for iclusio i Iteratioal Publicatios by a authorized admiistrator of DigitalCommos@ILR. For more iformatio, please cotact hlmdigital@corell.edu.

2 Social Dialogue i Micro ad Small Compaies Abstract [Excerpt] Micro ad small compaies costitute the backboe of private busiess i Europe, accoutig for early 99% of all eterprises, more tha half of total employmet i the private sector ad a eve greater proportio of ew jobs. Despite their crucial place i the ecoomy, there has bee little research o micro ad small compaies, particularly i terms of the implemetatio of fudametal workers rights such as health ad safety at work ad the positive role of social dialogue i strivig for good workig coditios ad idustrial relatios. Give this kowledge gap, Eurofoud udertook a research project aimed at ivestigatig idustrial relatios ad social dialogue i micro ad small compaies. The research was based o various iformatio sources, icludig a review of Eurofoud s earlier research ad other literature o the topic, a comparative evaluatio of cotributios from 28 atioal correspodets ad 10 case studies of good practice i micro ad small compaies i five coutries. Keywords small compaies, micro compaies, social dialogue, workig coditios, idustrial relatios Commets Suggested Citatio Europea Foudatio for the Improvemet of Livig ad Workig Coditios. (2014). Social dialogue i micro ad small compaies. Dubli: Author. This article is available at DigitalCommos@ILR:

3 Social dialogue i micro ad small compaies

4 Whe citig this report, please use the followig wordig: Eurofoud (2014), Social dialogue i micro ad small compaies, Dubli. Authors: Eckhard Voss, Wilke, Maack ad Parter, Hamburg (mai cotractor), Mario Giaccoe, IRES, Rome ad Atoio Corral, IKEI, Sa Sebastiá Research maager: Jea-Michel Miller Research project: Social dialogue i micro ad small compaies

5 Cotets Executive summary Itroductio 1. Idustrial relatios ad social dialogue practices i micro ad small compaies 2. Regulatio, practice ad policies i micro ad small compaies i the EU 3. Good practice experiece: evidece ad lessos leart from the case studies 4. Overall coclusios ad policy poiters Bibliography Aexes

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7 Executive summary Itroductio Micro ad small compaies costitute the backboe of private busiess i Europe, accoutig for early 99% of all eterprises, more tha half of total employmet i the private sector ad a eve greater proportio of ew jobs. Despite their crucial place i the ecoomy, there has bee little research o micro ad small compaies, particularly i terms of the implemetatio of fudametal workers rights such as health ad safety at work ad the positive role of social dialogue i strivig for good workig coditios ad idustrial relatios. Give this kowledge gap, Eurofoud udertook a research project aimed at ivestigatig idustrial relatios ad social dialogue i micro ad small compaies. The research was based o various iformatio sources, icludig a review of Eurofoud s earlier research ad other literature o the topic, a comparative evaluatio of cotributios from 28 atioal correspodets ad 10 case studies of good practice i micro ad small compaies i five coutries. Policy cotext The Europea Commissio has i recet years highlighted the importat role of small compaies for ecoomic ad employmet growth, otably i its 2012 Commuicatio Towards a job-rich recovery. With a view to ulockig growth potetials, ad i particular sice the adoptio of the Small Busiess Act i 2008, the Commissio has bee payig icreasig attetio to the specific eeds ad requiremets of small compaies. Recet iitiatives have bee aimed at miimisig the regulatory burde, itroducig a lighter legislative regime for small compaies ad puttig forward the idea of a SME test to determie the potetial effects o SMEs of legislative processes. At the same time, the Commissio ad other EU-level istitutios (such as the Europea Agecy for Safety ad Health at Work EU-OSHA) have raised cocers aroud the implemetatio of fudametal workers rights that are set out i the 1989 Framework Directive o Health ad Safety, regardless of the size of the compay, or i terms of the 2002 Framework Directive o Iformatio ad Cosultatio, which i most EU Member States also covers compaies with fewer tha 50 employees. Key fidigs The research fidigs cofirm the specific features of idustrial relatios i micro ad small compaies, highlightig the importat role of iformal relatioships betwee owers/maagers ad employees ad the lack of formalised structures ad practices of iterest represetatio ad social dialogue, collective bargaiig coverage ad collective represetatio i geeral. Micro ad small compaies are ot a homogeeous group whe it comes to idustrial relatios ad social dialogue. Micro compaies are differet from small compaies because of the sharig/rotatio of workplace activities, ad the stregth of social ties outside the workplace such as family, ethic ad commuity that shape their iteral idustrial ad social relatios as well as the iteral orgaisatio. The fidigs reveal that while the majority of EU coutries (22 out of 28) have established regulatios o workplace iterest represetatio ad formal structures of social dialogue that also iclude micro ad small compaies, the icidece of formal social dialogue structures i compaies with fewer tha 50 employees is geerally low, albeit with sigificat variatios betwee coutries. Nevertheless, the coverage of micro ad small compaies by collective bargaiig agreemets is higher, although this is heavily determied by the degree of cetralisatio of atioal bargaiig systems. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

8 Social dialogue i micro ad small compaies With regard to more recet regulatory chages, the report idetifies cotradictory treds. While two coutries have lowered the thresholds for employee represetatio, especially o occupatioal safety ad health (OSH) issues, two others have moved i the opposite directio. I three coutries, the social parters have exteded the scope of territoriallevel OSH workers represetatio. There are cotrastig policies regardig regulatory chages: some coutries seek to lift admiistrative ad other burdes from micro ad small compaies, while others aim to icrease the coverage of micro ad small compaies by structures of social dialogue ad collective represetatio. The report shows that soft measures such as OSH guidelies or toolkits targetig micro ad small compaies have bee by far the most widespread actio i recet years. The compay-based case studies, carried out i five Europea coutries, poit to a umber of commo features, drivers ad factors of successful practice of social dialogue i micro ad small compaies. Bilateral discussio ad commuicatio, characterised by the absece of formal structures of iterest represetatio, emerges as the most commo form of social dialogue i micro compaies. I the small compay cases, however, good practice was characterised by more formalised practices of cosultatio or eve egotiatio. I all the cases, the aalysis shows that the cocrete forms ad istitutios for geeral employee represetatio are essetially shaped by the specific atioal frameworks, such as works coucils, cooperatio committees, trade uio bodies or territorial represetatio structures. A key fidig of the report is that social dialogue i small compaies is heavily iflueced by the atioal frameworks, cultures ad traditios of idustrial relatios, ad also reflects geeral coditios, such as membership of employers ad trade uio orgaisatios or professioal bodies that operate at territorial level. Furthermore, the local orgaisatio of iterests ad collective practices proves to be a crucial exteral factor for good practice i social dialogue. However, legal ad other forms of regulatio, while importat, are ot the decisive factor of ifluece. The most importat driver is the leadership ad maagemet culture which is essetially drive, especially i micro compaies, by the ower of the compay. The study shows that social dialogue ad a more participatio-orietated idustrial relatios culture seems to reflect a high road ad best i class busiess model that is based o the quality of the product or service delivered, as well as o solid customer orietatio ad satisfactio. Policy poiters Both micro ad small compaies differ sigificatly from larger compaies i idustrial relatios ad i formalised structures of idustrial relatios, OSH ad social dialogue: good practices of social dialogue are characterised by ope ad trustful relatioships betwee employers ad workers established aroud a commo set of iterests. The special features of small compaies vis à vis larger compaies regardig fiacial ad other resources result i a greater eed for exteral structures of support, iformatio ad advice. I view of the limited compay-specific resources, social dialogue ad collective agreemets at local, regioal ad sector level are much more importat for micro ad small compaies tha for larger oes. A crucial factor for good practice ad success i this cotext is the proximity of exteral actors the closer ad more direct the relatios are, the better the results. These issues eed further, more i-depth ad comprehesive qualitative research, especially from the perspective of their impact o workig coditios. Greater research also seems appropriate i the cotext of the debate about liftig the admiistrative burde for SMEs. The iterviews with employers ad social parter orgaisatios show that the existig regulatios, icludig regulatios o OSH, are ot regarded as a particular burde. At the same time, atioal ad Europea actors should be well aware that the implemetatio of regulatory requiremets for micro compaies requires proportioally far more resources ad much greater effort tha for larger compaies. 2 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

9 Itroductio Backgroud ad aims of the study Micro ad small compaies accout for more tha half of employed people i Europe but they have hardly bee addressed by idustrial relatios research so far. 1 There is a particularly sigificat kowledge gap regardig idustrial relatios ad social dialogue practice i these two size groups. At the same time, social dialogue, ad i particular the right of employees to iformatio ad cosultatio, is see as a importat corerstoe of the values of the Europea social model ad also a fudametal social right of workers i the EU, accordig to the Charter of Fudametal Social Rights. 2 Research idicates that employee ivolvemet through established employee represetatio structures may cotribute to the developmet of icreased commuicatio, cooperatio ad commitmet, ad to the improvemet of workig life ad ecoomic performace; ad fruitful dialogue betwee employers ad employees may icrease the legitimatio of compay-wide busiess decisios ad create trustful employmet relatios. Successful iformatio ad cosultatio rights may cotribute to better workig coditios, icludig occupatioal safety ad health (OSH) coditios. Cosultatio ad participatio of workers is cetral i the overall structure of the Framework Directive 89/391/EEC o the itroductio of measures to ecourage improvemets i the safety ad health of workers at work (hereafter, Directive 89/391/EEC ). 3 The Directive calls for cosultatio ad participatio of workers: Employers shall cosult workers ad/or their represetatives ad allow them to take part i discussios o all questios relatig to safety ad health at work. 4 The objective of the Framework Directive is to esure dialogue ad balaced participatio betwee employers ad workers with a view to adoptig measures ecessary for the protectio of workers agaist accidets at work ad occupatioal diseases. SMEs ad, i particular, micro ad small compaies are below the radar of idustrial relatios research, as metioed above. This has recetly bee highlighted agai by the Europea Commissio: There is also a eed to look more i depth at the issues related to social dialogue i SMEs takig ito accout the specific situatio ad eeds of the latter (Europea Commissio, 2013a, p. 38). Agaist this backgroud, the 2012 work programme of the Europea Foudatio for the Improvemet of Livig ad Workig Coditios (Eurofoud) icluded a project o Social dialogue i micro ad small compaies. Buildig o Accordig to the Europea Commissio s defiitio, micro eterprises are those with fewer tha 10 employees with a turover or balace sheet total of less tha 2 millio while small eterprises are those eterprises with fewer tha 50 employees that have a turover or balace sheet total of less tha 10 millio (Europea Commissio, Commissio Recommedatio of 6 May 2003 cocerig the defiitio of micro, small ad medium-sized eterprises, 2003/361/EC ). There are varyig defiitios of social dialogue, ad the term is used i differet ways by iteratioal orgaisatios such as the ILO, OECD ad the Europea Commissio. However, for the purpose of this study the defiitio of the Eurofoud EIRO dictioary is used: All types of formal dialogue, ivolvig discussios, cosultatios, egotiatios ad joit actios udertake by employer represetatives ad worker represetatives o workig coditios i the workplace. OJ L 183, , p. 1. Article 11 (1) of Directive 89/391/EEC. The EU Court of Justice held that Article 11 (2) of Directive 89/391/EEC is a cocrete expressio of the objective of the Framework Directive highlighted by the 11th ad 12th recitals cosistig i a dialogue ad balaced participatio betwee employers ad workers with a view to adoptig the measures ecessary for the protectio of workers agaist accidets at work ad occupatioal diseases (ECJ, 6 April 2006, Case C-428/04, para 74). Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

10 Social dialogue i micro ad small compaies previous Eurofoud research o the topic, the project aimed to fill existig research gaps with regard to the practice of social dialogue, icludig dialogue o health ad safety at work, amog micro ad small compaies i the EU. 5 The project had three cocrete objectives. The first was to provide a literature review of recet comparative idustrial research results regardig micro ad small compaies, with a particular focus o relevat research fidigs produced by Eurofoud. The secod objective was to map curret regulatios goverig social dialogue i all its forms i micro ad small compaies, icludig health ad safety regulatios, ad provide a overview of curret practices as well as the cotet of social dialogue i micro ad small compaies. To meet this objective, a questioaire survey was coducted amogst Eurofoud correspodets i the the 27 EU Member States plus Norway. The aim was to gather ad aalyse iformatio o the regulatios, regulatory chage ad policies that affect social dialogue i micro ad small compaies, i terms of both fuctioig ad cotet, icludig social dialogue o occupatioal health ad safety issues. The third objective of the study was to idetify ad describe a limited umber of compay cases ad coutry studies where social dialogue has worked well ad to aalyse the drivers of this success. Methodology ad structure of the report The methodical approach ad aalytical tools applied i the study, as well as the structure of this fial report, reflects the three broad objectives of the project. The review of literature ad research focused o comparative idustrial relatios research results, with emphasis o SMEs i geeral ad particularly o fidigs i regard to idustrial relatios ad social dialogue i micro ad small compaies, icludig practices i the field of health ad safety at the workplace. The mai results of the review are documeted i the first chapter of this report. The secod chapter presets the mai fidigs of a comparative aalysis of the questioaire-based survey of the Eurofoud Network of Europea Observatories Correspodets that was carried out for the purpose of this study. The aim was to provide a overview ad update of the regulatio ad regulatory chage of social dialogue i micro ad small compaies ad policies of social dialogue i micro ad small compaies, icludig o health ad safety, ad also to provide a assessmet of coverage, quality ad outcomes of social dialogue i micro ad small compaies. The survey produced a comprehesive body of detailed atioal resposes coverig the whole EU. 6 The third chapter of the report presets a comparative aalysis of good practice, which was a further major research task of the study. Based o a limited umber of coutries (Bulgaria, Demark, Germay, Italy ad Spai) ad compaies (two cases i each coutry with a equal proportio of micro ad small compaies), the mai objective of the case study aalysis was to gather additioal iformatio ad more qualitative evidece o importat research iterests. These icluded the distictive characteristics of idustrial relatios i micro ad small compaies (also i compariso with larger compaies), the motives, iterests ad drivig forces for developig more formalised structures ad practice of social dialogue at compay level, ad the iteral as well as exteral factors of ifluece ad other determiig factors ad challeges as perceived by compay actors ad atioal social parter orgaisatios. The fial chapter of the report summarises a umber of geeral coclusios arisig from the three mai research compoets, highlightig i particular the specific eeds for further research ad aalysis as well as policy poiters. 5 6 See i particular Eurofoud 2010a, 2011e ad 2009, the last of which icludes some refereces to smaller compaies. The atioal resposes to the questioaire survey are available o the Eurofoud website. 4 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

11 Idustrial relatios ad social dialogue practices i micro ad small compaies 1 Objectives The objective of this literature review is twofold. First, it aims to provide a comprehesive overview of the available iformatio ad research fidigs o social dialogue i micro ad small compaies, focusig maily o comparative 7 literature ad research results that have bee published sice Secodly, the review aims to give a backgroud to the major themes ad issues of social dialogue i micro ad small compaies i Europe particularly those topics ad research iterests that seem particularly relevat for the purpose of this study. The review seeks aswers to the followig questios: What are the peculiarities of micro ad small compaies regardig social dialogue practice at the workplace level, icludig social dialogue ad employee participatio i the field of health ad safety at the workplace? Are there ay differeces betwee micro compaies ad small compaies i relatio to the fuctioig of social dialogue ad employee participatio i the compay? How are micro ad small compaies represeted ad ivolved i social dialogue ad collective bargaiig outside the compay, for example at sector, territorial, atioal ad Europea level? Are there ay iitiatives to foster social dialogue practice, icludig iitiatives o health ad safety issues, that target micro ad small compaies i particular? The review is structured accordig to three major themes that mirror the research questios. First, the relevace of the research topic ad the eed to aalyse social dialogue i micro ad small compaies is described from a Europea perspective. Comparative research results relatig to idustrial relatios ad social dialogue practice at the workplace, icludig o health ad safety i micro ad small compaies, are the preseted with a focus o the specific characteristics of micro ad small eterprises i Europe. A third chapter addresses major issues regardig the represetatio ad coverage of micro ad small compaies i differet forms of social dialogue apart from the compay level, icludig the Europea Social Dialogue. Research o social dialogue i micro ad small compaies Eurofoud s cotributio As this review illustrates, a major proportio of curret research kowledge ad comparative iformatio o micro ad small compaies i Europe is derived from Eurofoud research projects, comparative reports ad surveys such as the Europea Compay Survey (ECS) ad the Europea Workig Coditios Survey (EWCS). Eurofoud research activities ad results relatig to micro ad small compaies addressig themes such as workplace social dialogue, employee participatio, health ad safety ad workig coditios are highlighted i textboxes throughout the report. 7 8 While this chapter focuses o comparative research, literature ad iformatio, the ext chapter provides a update ad overview of atioal practices, treds ad patters of social dialogue practice, based o a aalysis of the resposes to the questioaire survey amogst Eurofoud s atioal correspodets. Thus buildig o ad updatig previous Eurofoud work o the topic, i particular Eurofoud 2010a ad Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

12 Social dialogue i micro ad small compaies Relevace of topic Policy cotext The typical eterprise i the Europea Uio is either a micro compay or a small compay. These size groups accout for early 99% of all private eterprises i the EU, with the overwhelmig majority beig micro eterprises (93%). 9 It is also a fact that 30% of employees i the Europea Uio work i compaies with fewer tha 10 employees ad half of all employees work i compaies with fewer tha 50 employees (Wauters et al, 2012, p. 157). Micro ad small compaies ot oly play a crucial role i the ecoomy of the EU as employers ad sources of employmet they also cotribute most to job creatio. Accordig to a recet aalysis, aroud 85% of all ew jobs created i the EU betwee 2002 ad 2010 were i small ad medium-sized eterprises. Furthermore, withi the SME group, micro eterprises are resposible for the highest proportio of total et employmet growth early six out of te jobs created by SMEs came from micro compaies. While betwee 2002 ad 2010 employmet i larger compaies icreased by just 0.5% o average per year, the average aual icrease i SMEs was 1%. Ad withi the SME size group the highest growth rates are foud i micro ad small eterprises, at 1.3% ad 1% respectively (de Kok et al, 2011, p. 29). Moreover, 58.4% of the total gross value added produced by private busiesses i the EU i 2010 came from SMEs (Wymega et al, 2011, p. 8). Cosiderig the promiet role of SMEs a umber of iitiatives have bee developed at EU level to support small ad medium-sized eterprises i Europe, otably through the Small Busiess Act (SBA) i 2008, which icludes the Thik Small First priciple ad a ageda for smart regulatio that aims to help small busiess by miimisig the regulatory burde of legislatio. Other importat objectives of Europea SME policy are better access for eterprises to fiace ad supportig SMEs by takig full advatage of the Sigle Market (Europea Commissio, 2011d). These Europea iitiatives have bee accompaied by several research iitiatives, regular reportig ad moitorig of SME developmet i Europe as well as the implemetatio of the 10 SBA priciples at atioal level. 10 More recetly, the Europea Commissio, i a Commuicatio to the Coucil ad the Europea Parliamet, stressed the eed to provide more support to micro compaies ad itroduced the dimesio of micro etities i the SME test 11 Europea Commissio, 2011c). This itroduced the prospect of exemptio of micro eterprises from regulatio, whe justified, ad lighter regulatory regimes for SMEs. It should be oted that the regulatio was reviewed quite critically by the Europea SME employer orgaisatios UEAPME (UEAPME, 2012). 9 Eurostat, 2013: Nearly 40% of people employed by o-fiacial eterprises i the EU28 worked for SMEs i News Release, 25 November Sice 2008, the EU Commissio has published a Aual Report o SMEs that focuses o geeral treds ad developmets i busiess ad employmet for this size group. Also o a aual basis, SBA factsheets measure the implemetatio of the Small Busiess Act ad the 10 priciples (etrepreeurship, secod chage, thik small first, resposive admiistratio, state aid ad public procuremet, access to fiace, sigle market, skills ad iovatio, eviromet ad iteratioalisatio). For this purpose, 68 idicators have bee idetified. 11 A impact assessmet that aalyses the likely ecoomic, evirometal ad social effects of legislative proposals o SMEs by assessig the costs ad beefits of policy optios. 6 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

13 Social dialogue i micro ad small compaies Issues addressed by comparative research i SME developmet I the cotext of SME-specific iitiatives, a umber of research activities have bee carried out at EU level to moitor SME developmet, icludig the implemetatio of the Small Busiess Act (SBA), ecoomic ad employmet treds of SMEs ad other issues. Apart from the aual reports o SMEs published by the EU Commissio, 12 reports have bee produced o issues such as smart regulatio (Europea Commissio, 2013b), job creatio ad the specific role of family busiess (de Kok et al, 2011; KMU Forschug Austria, 2008). Recet literature has also highlighted the importat role of smaller compaies i the cotext of job creatio as well as recovery from the 2008 crisis. This role of SMEs was also stressed i the 2012 Commuicatio of the Europea Commissio o a job-rich recovery (Europea Commissio, 2012c). EU-level comparative studies ad aalyses o SME developmet durig the 2008 crisis ad their role i recovery ad job creatio have bee carried out, for example, i the cotext of the EU Commissio s aual reviews of SME developmet (Europea Commissio, 2011a) or discussios withi the Europea Parliamet (Europea Parliamet, 2012) as well as by the Iteratioal Labour Orgaizatio (ILO, 2009) ad Eurofoud (Eurofoud, 2011e). These as well as other studies (Europea Commissio, 2012c; de Kok et al, 2011; Eurofoud, 2012b) show that job creatio rates of SMEs outstrip those of larger compaies ad also highlight a further feature of employmet developmet i SMEs compared to larger eterprises: ot oly etry rates but also exit rates are higher; there is a greater proportio of workers leavig the compay due to dismissals, redudacies or idividual decisios. This illustrates a specific characteristic of SMEs durig crisis situatios: although geerally SMEs are regarded as beig more flexible, more adaptable ad less likely to dismiss staff tha larger compaies, they also face greater difficulties i situatios of crisis ad restructurig. This is maily due to limitatios resultig from size for example a lack of iteral flexibility ad a geeral lack of resources to cushio the immediate impacts of crisis situatios (Eurofoud, 2012b). Eurofoud s research o SMEs i the crisis ad o restructurig i SMEs The 2011 comparative study o SMEs i the crisis Employmet, idustrial relatios ad local partership (Eurofoud, 2011e) gives a overview of the situatio ad practices i Europea SMEs i the cotext of the ecoomic dowtur. While employee represetatio, social dialogue ad collective bargaiig are more ofte preset i medium-sized compaies (although with substatial differeces amog coutries), small compaies usually have low trade uio desity, particularly i the smallest oes, ofte family-owed, where employee represetatio is less frequet. The study foud that iformal employmet, such as employmet without a cotract, was reported to be high amog micro ad small compaies, possibly for reasos coected to umerical flexibility. Although the crisis has sigificatly affected employmet i SMEs, the report foud a positive tred i some coutries, such as Bulgaria, where the umber of micro eterprises icreased durig the crisis. However, the icrease applied oly to micro eterprises i real estate ad busiess services; the umber i the commerce sector decreased. I Hugary, employmet i micro eterprises was more severely affected tha i larger compaies. Whe lookig at job creatio, the study foud oly oe example relatig to micro ad small busiesses i Portugal, where the 2009 ad 2010 employmet plas provided for a reductio of 3% i employers social security cotributios for employees over 45. The plas also provided for a 1% reductio i these cotributios for employees o the statutory miimum wage ad 2009 Aual Reports o SMEs, SME Performace Reviews 2012/2011 ad 2010, SBA factsheets. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

14 Social dialogue i micro ad small compaies A iitiative aimed at SMEs ad micro eterprises i Polad betwee 2009 ad 2011 focused o icreasig the skills of maual workers due to the shortage of qualified staff i the costructio sector i particular. With regard to social parters actios/iitiatives, the study oted that i Romaia ad Sloveia the govermet reduced taxatio for micro eterprises, followig criticism from employers. Tax reductio has also bee a demad of employers orgaisatios i Germay ad Greece. More recetly, the 2012 study o Restructurig i SMEs (Eurofoud, 2012b) attempted to fill the iformatio gap o the restructurig drivers ad mechaisms for small ad micro compaies. Of the 85 case studies examied, oly two cocered micro compaies. Data from the 5th Europea Workig Coditios Survey that was coducted i 2010 show that micro ad small compaies had bee less cocered with restructurig tha large oes i the previous three years (23% of micro compaies employees ad 33% of those i small compaies reported recet restructurig, compared with 60% of larger workplaces). However, the study poits out that chages are more frequet i micro ad small compaies ad that the cocept of restructurig is ot always clear i this cotext. Whe lookig at the mechaisms for restructurig, the study foud that micro ad small compaies are less likely to follow legal iformatio ad cosultatio procedures because of their size. However, iformatio ad cosultatio may take place more ofte i a less formalised way. Whe it comes to aticipatig ad preparig for chages, smaller compaies are less able to pla ad prepare because they have limited resources, although maagemet seems to have a more optimistic approach tha i large establishmets. While the provisios for traiig i relatio to restructurig are more frequet i micro firm, the percetage of employees beefitig from geeral traiig is higher i large compaies. It is quite strikig that Europea comparative research ad moitorig so far has ot addressed either the specific group of micro ad small compaies, or the issue of workig coditios (icludig health ad safety) ad idustrial relatios. Case study or survey-based research has addressed employmet ad workig coditios aspects such as health ad safety (Eurofoud, 2010a; EU-OSHA, 2009), traiig ad further traiig geerally from the perspective of SMEs (Europea Commissio, 2009). O the topic of social dialogue i SMEs oly secodary aalyses, i most cases based o Eurofoud research results, have bee published (EZA, 2009) or addressed by trade uio or employer-led activities. 13 I a joit ETUC/UEAPME cooperatio project tried to idetify ad elaborate issues of joit cocer relatig to Europea social dialogue as it applies to SME developmet ad practice i Europe (ETUC/UEAPME, 2009). Micro ad small compaies ad social dialogue While, of course, there are good reasos for takig ito accout the specific eeds of micro ad small compaies i relatio to the regulatory burde ad frameworks, the questio arises as to how Europea values ad priciples are implemeted ad fostered i employmet relatios ad workig coditios i smaller compaies. This also icludes priciples, istrumets ad policy orietatios of the Europea Social Model such as social dialogue, iformatio ad cosultatio of workers, decet workig coditios ad health ad safety at work. 13 A example is the EU-fuded project Improvig employee ivolvemet i SMEs that was lauched i 2012 ad implemeted by Italia ad Polish trade uio orgaisatios (see: I 2011 ad 2012, the Europea SME employer orgaisatio UEAPME also implemeted a project that aimed to stregthe the capacity of crafts ad SME orgaisatios i the ew Member States ad cadidate coutries by supportig their active participatio i the EU Social Dialogue (see: 8 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

15 Social dialogue i micro ad small compaies Major challeges i this cotext have bee highlighted i a Europea Commissio documet o gree growth ad job creatio: Where jobs are created i compaies ad sectors with little traditio of social dialogue ad employee represetatio, safeguardig the fudametal rights of workers, esurig equal pay ad dececy of work ca preset particular challeges. (Europea Commissio, 2012a) Oe of the fudametal social rights of workers i the EU, accordig to the Charter of Fudametal Social Rights, ad a itegral part of the Europea social model, is the right to be iformed ad cosulted at the workplace (Ales et al, 2009). Accordig to umerous studies, social dialogue ad employee participatio correspods to the eeds of both employees ad employers (Eurofoud, 2011a). Here, it is stressed that social dialogue improves ecoomic performace by developig positive workplace practices that ecourage cooperatio ad stregthe workforce motivatio ad morale, ot just i respose to ecoomic difficulty, but i all ecoomic ad labour market circumstaces. With regard to employee ivolvemet i decisios at the workplace, it is argued that this ca have positive effects such as better protectio of workers rights ad iterests, solutio of work problems, optimisig of work orgaisatio ad processes ad a positive establishmet culture of trust (Eurofoud, 2012d). Regardig the implemetatio of the fudametal right to be iformed ad cosulted i micro ad smaller eterprises, as well as with respect to supportig employee participatio ad social dialogue at workplace level, a umber of questios arise that so far have oly partly bee addressed by research. Practice of social dialogue i micro ad small compaies Idustrial relatios ad impact o social dialogue Whe it comes to idustrial relatios at compay level, it should be stressed that SMEs show cosiderable diversity i terms of almost every aspect of work orgaisatio, owership structures, products ad markets, workforce characteristics, etc. This iteral diversity is also illustrated by differet atioal categorisatios ad terms such as Mittelstad, crafts or family busiess. Such labels are ot always liked to specific size groups, but are ofte related to differeces betwee smaller compaies ad larger compaies i terms of the way a compay is ru, the workforce is maaged ad idustrial relatios are orgaised. For example, a umber of comparative studies have idicated that smaller compaies, ad i particular family busiesses ad micro compaies, ted to be more iformal tha larger compaies with regard to maagig huma resources. Research has show that compaies employig less tha a certai umber of employees seldom have a HR maager. Especially i micro firms, the ower or maagig director ofte takes o persoel maagemet tasks as well as the everyday work ad diverse resposibilities of maagig the compay (de Kok et al, 2011, p. 95; ETUC/UEAPME, 2009). While this does ot ecessarily have egative effects o the quality of workig coditios ad employer employee relatios, it has bee argued that it ofte results i a practice that is characterised by ad-hoc resposes to acute problems rather tha loger-term ad sustaiable strategies for HR developmet. This aspect was highlighted i the summary of results of a Europea collaboratio project o retaiig competeces i the light of demographic chage: The special feature of these small eterprises is that they geerally feel they do ot have adequate resources for coductig their ow persoel developmet. I the majority of cases, the owers or CEOs take o persoel maagemet i additio to the diverse resposibilities of maagig a compay. Persoel maagemet i such eterprises thus ofte becomes a mere respose to acute problems rather tha a sustaiable strategy of developmet SKRAT project cosortium 2011: Strategic practices for kow-how retetio ad trasmissio withi orgaisatios, IG Metall, Frakfurt am Mai, p. 5. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

16 Social dialogue i micro ad small compaies I micro compaies i particular, employmet relatios betwee ower ad workers are ofte perceived by both sides as a persoal ad direct relatioship. The fact that workplace ad social relatioships ofte overlap ad are reiforced by social activities is regarded as a barrier ot oly for loger-term ad more systematic HR maagemet but also for more formalised or eve istitutioalised practice ad orgaisatio. As has bee argued elsewhere o the basis of case study evidece, such iformal employee relatios do ot mea the absece of coflict, but employee dissatisfactio teds to result i volutary or iformal exit, rather tha the emergece of collective chaels of represetatio such as orgaisatio i trade uios, employers orgaisatios or the coverage by collective agreemets (De Troyer ad Le Lay, 2007, p. 112). Coverage by formal employee represetatio ad structures of iformatio ad cosultatio Accordig to the EU Directive establishig a geeral framework for iformig ad cosultig employees (2002/14/EC), the geeral framework ad obligatio to iform workers ad cosult them o employmet-related matters oly covers eterprises with more tha 50 employees. Although most Europea coutries have established lower thresholds, oly i a few coutries (Austria, Germay ad with represetatives havig lesser rights Estoia ad Slovakia) are micro eterprises also covered by atioal legislatio o employee represetatio structures (Jevtic, 2012). It should be oted that i may coutries there are o thresholds for establishig some kid of trade uio or shop steward represetatio fuctioig as the domiat iformatio ad cosultatio forum. At the same time, smaller compaies are also characterised by rather weak trade uio orgaisatio coverage, with the exceptio of those i the three Nordic coutries. 15 As a umber of comparative studies have show, there is a diverse ladscape of employee represetatio systems across Europe that geerally reflects differet idustrial relatios traditios ad models ad follows two basic models ad four sub-models of employee represetatio at the workplace (see for example Eurofoud, 2011d): Represetatio structures domiated by works coucils, where either sigle systems of works coucils (Austria, Germay, Netherlads, Luxembourg) or dual systems (based o employee represetatio or joit iterest represetatio bodies o the oe had ad trade uio represetatio structures) exist (Belgium, Frace, Italy, Spai as well as Estoia, Latvia, Hugary, Slovakia, the UK ad Irelad). Represetatio systems domiated by trade uios, either with sigle represetatio systems (Swede, Cyprus, Czech Republic, Malta) or dual systems (Demark, Filad, Portugal, Sloveia, Croatia). Though this issue has ot bee addressed by more i-depth research, there seems to be o simple correlatio betwee the differet models of iterest represetatio, legal thresholds ad rates of icidece ad coverage of micro ad small compaies by statutory or istitutioalised structures of employee represetatio. As secodary data aalysis of the Europea Compay Survey 2009 suggests, there are slightly more coutries withi the group of employee represetatio domiated by works coucils that have established low thresholds for establishig iformatio ad cosultatio structures tha i the group of coutries that are characterised by trade uio domiated represetatio structures (Eurofoud, 2011c). 15 Swede is the oly coutry where employees (who are members of the trade uio) i compaies, irrespective of the size of their workforce, would be represeted by local trade uio structures if there are o trade uio structures withi the compay. See Jevtic, 2012, p Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

17 Social dialogue i micro ad small compaies However, low thresholds i terms of the umber of employees required for the settig up of employee represetatio structures do ot have ay sigificat impact o the icidece of works coucils or other forms of istitutioal iterest represetatio at compay level. If coutries are classified ito low, medium or high thresholds for differet forms of employee represetatio ad these groups are cotrasted with the coverage of small compaies (for figures o thresholds ad coverage/icidece see i particular Tables 1 ad 6 i the followig chapter), o clear-cut correlatio emerges. While coutries with higher thresholds (e.g. Hugary, Polad or the UK) ca be foud amog those with rather low rates of icidece ad coverage, there are also coutries with very low thresholds that have eve lower coverage rates (Eurofoud, 2011c, p. 16; see also Europea Commissio, 2013a, p. 45). Thus, irrespective of the model of regulatio (dual or sigle, works coucil or trade uio domiated) ad thresholds, the ability to establish istitutioalised structures/bodies of employee iterest represetatio seems to be more heavily iflueced by the relevat idustrial relatios framework ad i particular the orgaisatioal stregth of trade uios ad their presece at compay level tha by legal regulatio. This is illustrated by the Nordic coutries but also, for example, by Belgium, where rather high thresholds coicide with a comparatively high coverage of small compaies by employee iterest represetatio structures (orgaised by trade uio delegates). Very little comparative research evidece is available for micro compaies, i.e. those with fewer tha 10 employees, partly because most EU-level surveys oly cover larger establishmets; oe exceptio is Eurofoud s Europea Workig Coditios Survey (EWCS), while the forthcomig ESENER (Europea survey of eterprises o ew ad emergig risks) survey carried out by the Europea Agecy for Safety ad Health at Work (EU-OSHA) will cover firms with fewer tha 10 employees. However, the figures for coutries with the lowest thresholds for settig up a works coucil (Austria, Germay) or trade uio shaped structures of iterest represetatio also show quite large differeces i coverage. I light of this, ad also i regard to the log-term tred of decliig trade uio membership ad trade uio orgaisatio at workplace level i most coutries, the recet Fitess Check of the three Europea Directives o iformatio ad cosultatio of workers has highlighted the low coverage of smaller compaies by iformatio ad cosultatio structures. It stated that the applicatio of the miimum threshold laid dow i the Iformatio ad Cosultatio Directive could mea that oly 1.3% of all udertakigs across the EU would be covered (Europea Commissio, 2013a). Furthermore, the Commissio states that whe it comes to the operatio of iformatio ad cosultatio i practice, resources (iformatio about the ecoomic ad employmet situatio, paid time off, traiig) as well as statutory chaels, are sigificatly less available i SMEs. Accordig to the Commissio this could hamper the further developmet of social dialogue withi SMEs (Europea Commissio, 2013a, p. 20). I view of the lack of iformatio ad research-based evidece, the Commissio sees a eed for further research ad aalysis: As regards the gaps related to the scope of applicatio of the I&C Directives ( ) particular focus should also be placed o SMEs takig ito accout their specific situatio ad eeds. (Europea Commissio, 2013a, p. 36) While trade uios i particular demad a adjustmet of the regulatory framework (for example, a legal obligatio to provide iformatio ad cosultatio), employers orgaisatios have argued that formal iformatio ad cosultatio procedures are ot eeded i smaller compaies, as the relatioship betwee maagemet ad workers is more direct ad based o persoal relatioships, which ca ecourage cooperative, iformal exchages of iformatio ad cosultatio. This patter seems to be cofirmed by the results of EU-wide surveys such as the Eurofoud Europea Compay Survey (ECS). This opiio is also supported by a fidig of the ECS o workplace cooperatio culture. Here, a curviliear relatioship seems to exist betwee the quality of workplace social dialogue ad the size of the establishmet. The quality of workplace social dialogue is highest i the smallest establishmets (with employees) ad the largest establishmets (500 or more employees) (Eurofoud, 2010b). Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

18 Social dialogue i micro ad small compaies Furthermore, whe it comes to the perceptio of employees i smaller compaies, compared to larger compaies, aother aspect is highlighted by the ECS 2009 survey results. Employees i smaller establishmets rate their ifluece o structural chage withi the compay at a similar level as do employees i larger compaies. Not oly this, but i may coutries (e.g. Italy, Spai, Portugal, Austria ad Germay), employees i establishmets with fewer tha 50 employees cosider their ifluece to be eve stroger tha their colleagues i larger compaies (for more details see Voss, 2011). Workplace social dialogue i small compaies results of the Europea Compay Survey The Europea Compay Surveys (ECS) 2009 ad 2013 have revealed a umber of fidigs o small compaies i cotrast to larger oes. Micro compaies are ot covered because the survey oly icludes compaies with at least 10 employees. Whe explorig workplace cooperatio culture, the 2009 ECS foud that a curviliear relatioship seems to exist betwee the quality of workplace social dialogue ad the size of the establishmet: The quality of workplace social dialogue is highest i the smallest (10 19 employees) ad largest (500 or more employees) establishmets. Furthermore, accordig to the ECS 2009 survey results, the perceptio of employees i smaller establishmets i regard to their ifluece o structural chage withi the compay is rather similar to the perceived ifluece of employees i larger compaies. I may coutries (e.g. Italy, Spai, Portugal, Austria ad Germay) employees i establishmets with fewer tha 50 employees cosider their ifluece to be eve stroger tha their colleagues i larger compaies. As expected, there are proouced differeces i employee represetatio betwee large ad small compaies. I small compaies oly oe i three employees is covered by istitutioal represetatio. The figure is two out of three for medium firms ad 90% i large compaies. This differece is particularly evidet i Austria, Germay ad the Czech Republic. Istitutioal employee represetatio is early o-existet i small establishmets i Greece ad Portugal. Resources for employee represetatio are also more limited i smaller establishmets, ot oly i quatitative but also i qualitative terms. Some 25% of employee represetatives reported that they have o right to time off (compared with just 9% i large compaies). However, whe time is allocated to employee represetatio, the survey fids that fewer time problems are reported i small compaies tha i large oes. I terms of iformatio provisio the ECS 2009 results show that small compaies have more difficulty i providig iformatio o their fiacial, ecoomic ad employmet situatio with oe i four of them failig to do so oce a year. The ECS icludes iformatio o whether maagemet of compaies aimed to provide traiig for staff to icrease their awareess o health ad safety issues. The results amog EU coutries show that this is the case i a average of 74.8% of small compaies. Percetages for medium ad large compaies are slightly higher with 80.6% ad 81.7% respectively. Maagers of 40.4% of small compaies i the EU reported havig take importat decisios i the area of occupatioal health ad safety i the previous 12 moths. However, whe the survey examied whether the impact of decisios i occupatioal health ad safety had bee cosidered importat for compaies workig coditios, oly 16.4% of Europea small compaies provided a positive aswer. The percetage of compaies with a official employee represetatio structure was 26% amog small establishmets, 60% i medium ad 82% i large establishmets. 16 First results of the 3rd Europea Compay Survey (ECS) were preseted i Brussels o 26 November The survey maps practices i establishmets with 10 or more employees across the EU28, ad i the Former Yugoslav Republic of Macedoia, Icelad, Moteegro ad Turkey. I all, over 30,000 establishmets were surveyed by Gallup Europe, with a target sample size per coutry ragig from 300 to 1,650. Topics comprised work orgaisatio, huma resources (HR) practices, employee participatio ad social dialogue, ad how these practices support smart growth. Iterviews were coducted i sprig 2013 with HR maagers ad with employee represetatives (wherever possible). 12 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2014

19 Social dialogue i micro ad small compaies Comparative surveys also show that, as regards the operatio of iformatio ad cosultatio i practice, resources (iformatio about the ecoomic ad employmet situatio, paid time off ad traiig) are sigificatly less available i SMEs. Accordig to a expert study that accompaied the Fitess Check 2013, this ca hamper the further developmet of social dialogue withi SMEs. Employee represetatives i SMEs are foud to be ivolved i employers decisios o employmet ad work practices to a lesser extet tha i larger compaies (Wauters et al, 2012, p. 152). Represetatio structures There are differet groups of actors that iitiate ad are ivolved i social dialogue at workplace ad other levels. The most importat are the two social parters, i.e. employers ad employers orgaisatios (icludig professioal associatios, chambers, craft guilds ad other bodies) ad employees ad their represetatio bodies, whether trade uio or o-uio. At the same time, govermets ad govermet istitutios (for example i the field of health ad safety) are also ivolved i tripartite social dialogue, i particular whe it comes to regulatig frameworks of establishig formal structures, defiig cotets or facilitatig social dialogue. With regard to actors ivolved i social dialogue beyod the direct workplace level ad employer employee relatios, Europe is characterised by a large variety ad diversity of differet idustrial relatios actors, ad ifluece ad role i social dialogue has bee aalysed quite extesively (Europea Commissio, 2011, pp ). However, whe it comes to the represetatio of SMEs as well as their workers i employers orgaisatios ad trade uios, comparative iformatio is scarce as atioal orgaisatio rate figures are ot broke dow i terms of compay size. I regard to trade uio membership, few facts are kow other tha that uio membership i SMEs is lower tha i larger compaies. A comprehesive overview of membership data ad developmet treds across the Europea Uio that was published i the EU Idustrial Relatios Report 2010 does ot cotai ay i-depth referece to uio membership patters ad treds for differet size groups, apart from a very geeral assessmet: Uioisatio levels rise with establishmet size, perhaps because the beefits of membership rise with size, impersoal maagemet leads to greater alieatio ad demad for protectio, or because size proxies uios orgaisig costs. This is strogly related to workplace-level uio orgaisatio ad employee represetatio, which teds to be guarateed, by law or atioal agreemet, for establishmets above a particular size. Such rights may help trade uio represetatives to orgaise, although this is ot always the case. (Europea Commissio, 2010, p. 33) The represetatio of SMEs by employers orgaisatios i most Europea coutries is twofold: small compaies are orgaised i the mai employers orgaisatios but i most coutries there are also further represetative orgaisatios for small compaies. Both represetatio priciples ad structures differ from coutry to coutry. I coutries with a log-stadig craft traditio (such as Germay), craft compaies are also represeted by specific craft orgaisatios at local, regioal ad atioal level (ZDH, 2004). Thus the Europea Associatio of Craft, Small ad Medium-sized Eterprises (UEAPME), as the mai EU-level employer orgaisatio of small- ad medium-sized busiesses, icorporates aroud 80 member orgaisatios cosistig of atioal SME federatios, Europea sector federatios ad further associated members. Sice 1998, UEAPME has bee ackowledged as a idepedet social parter orgaisatio ad takes part i the Europea social dialogue. At atioal level there are also a umber of territorial-level represetatio examples that seem very suitable for the specific eeds of smaller compaies. I coutries such as Swede, Italy, Frace, Demark, Spai, the Netherlads ad Belgium a combiatio of territorial-level workers represetatives (both geeral as well as fuctioal represetatio, for example, o OSH) ad mutualisatio of resources maaged joitly by social parters through bipartite bodies has bee established as a istitutioal framework for supportig social relatios ad dialogue i micro ad small compaies (see Europea Foudatio for the Improvemet of Livig ad Workig Coditios,