Department of Human Resource Management UNI-EUROPA Graphical Annual Collective Bargaining Survey 2008 An Analysis By: Professor John Gennard Strathclyde Business School University of Strathclyde Glasgow United Kingdom October 2008 0
CONTENTS Page Executive Summary 0 Introduction 0 Purpose of the Survey 0 Guidelines on Common Collective Bargaining Objectives 0 Questionnaire 00 Economic and Political Environment (a) Economic 00 (b) Tripartite Agreements 00 (c) Legislative Changes 00 Bargaining Claims 00 Date and Duration of National Agreements 00 Bargained Changes in 2008: Quantitative Changes 00 Bargained Changes in 2008: Qualitative Changes Progress to Meeting the Guidelines for Bargaining Claims: 2000-2008 00 Figures 1. Guidelines for Common Collective Bargaining Objectives 00 2. Qualitative Changes to Agreements: 2008 00 Tables 1. Date of Agreements: 2008 00 2. Quantitative Aspects of the 2008 Guidelines: Bargained 00 Wage Increases 3. Achieving the Guideline: Number of Affiliates 00 4. Meeting the Guideline: 2000-2008 Inclusive 00 5. Meeting the Guidelines: 9 year average: 2000-2008 00 Analysis by Country 1
Executive Summary The 2008 Collective Bargaining Survey The economic background for the 2008 collective bargaining round, as for the last five years, was difficult. In Europe the graphical industry continued to suffer from excess capacity, over investment, lower product prices, lower turnover and increasing product market competition. As a result 2008 saw further bankruptcies amongst printing companies, continuing mergers and takeovers, the most prominent being the sale by Quebecor World of its whole European operation to the Dutch private equity finance company HHBV, enhanced relocation of work and investment to Central and East Europe and to India and China. Overcapacity, over investment, lower prices and lower turnover meant 2008 witnessed another fall in employment in the European printing industry. This, in turn, brought a further decline in trade union membership amongst graphical workers in Europe and a further consolidation of graphical trade unions is taking place. The Finnish Media Union remains involved in merger talks with five other trades in a project known as TEAM the purpose of which is the merger of the six unions by 2010. 2
The collective bargaining Agenda of graphical employees throughout Europe in 2008 remained very much the same as in previous years. Their corporate strategy has been to increase their market share by cost containment, cost reduction, increased productivity and increased investment policies. In the collective bargaining area this has meant demands of their employees for greater flexibility in the use of labour, including more flexible shift patterns and by increasing working time without paying additional rates of pay. In Spain the social partners at the multi-sector level and the central government signed the 2008 Agreement on Collective Bargaining establishing a guideline for pay increases of between 2 and 3%, pending for the continuation of wage revision clauses, for the implementation of gender equality plus in companies employing over 250 workers and for the development of the Spanish government s Health and Safety at Work strategy. In April 2008 in Ireland the national level social partners and the central government launched formal negotiations over a new pay agreement to be achieved within the framework ten year agreement entitled Towards 2016 agreed in 2006. Bargaining centred on the protection of real wages, pensions, legal protection of temporary agency workers, trade union recognition and representation and investment in the public services. In December 2007 in Hungary the National Interest Accreditation Council which comprises representatives of the multi-sector employer and 3
employee organizations and the central government agreed for the lower paid an annual wage increase of between 5 and 7%. Introduction This report analyses the outcome of the 2008 collective bargaining round with national graphical employers organizations against the guidelines for common collective bargaining objectives agreed at the Annual Conference on Collective Bargaining held in Larnaca, Cyprus on 15 and 16 November 2007. The report also evaluates the progress over period 2000-2008 inclusive (9 years) made by affiliates in meeting the Guidelines for Common Collective Bargaining Objectives. The Purpose of the Survey The main aims of the Annual Collective Bargaining Survey are to: 1 Provide an overview of collective bargaining developments in the year. 2. Monitor progress on meeting the Guidelines for Common Collective Bargaining Objectives as established by the Annual Conference on Collective Bargaining. 3. Assist the Conference to identify, and to establish, the key priorities for the next collective bargaining round with national graphical employers organizations. 4. Improve the exchange of information to affiliates on national collective bargaining rounds and to assist UNI-Europa Graphical 4
(UNI-EG) to influence discussion at the ETUC about defining and coordinating a common bargaining agenda. 2008 Guidelines on Common Collective Bargaining Objectives These were agreed at the 2007 Annual Conference on Collective Bargaining (see Figure 1). That Conference added to the common collective Bargaining objectives minimum standards on training opportunities for older workers designed to ensure that older employees enjoy the same rights to training, post education and further education as all other employees. 5
FIGURE 1 GUIDELINES FOR COMMON COLLECTIVE BARGAINING OBJECTIVES AGREED AT THE 2006 COLLECTIVE BARGAINING CONFERENCE 1. Provision of Information a. Update regularly the Collective Bargaining Survey b. Reporting of national agreements concluded to UNI-EG c. Assessment of the bargaining results d. Continuous monitoring e. All affiliates are required to participate in the Annual Collective Bargaining Conference 2. Information and consultation of the UNI-EG affiliates Each UNI-EG affiliate commits itself to inform and consult the other UNI- EG affiliates on: a. Its claims (before the opening of national collective bargaining) b. The results/developments of ongoing collective bargaining The UNI-EG secretariat will coordinate the information and the consultation of its affiliates. 3. Social Dialogue All affiliates are required to exert pressure on national employer organizations to engage in European Social Dialogue/Collective bargaining. 4. Regional Collective Bargaining Support for regional/sub regional collective bargaining Committee. 5. Guidelines for Bargaining Claim Wages plus qualitative aspects (see below) should be at least equal to inflation plus national productivity. 6
The qualitative aspects cover: a) Working Hours Standard working time should not exceed 1,750 hours per year for a full time worker. The maximum amount of paid overtime should not exceed 100 hours per year after which compensatory time off (at bonus rates) arrangements should be encouraged as an alternative to paid overtime and to maximize employment opportunities. b) Further vocational training (FVT) c) Equality Link between FVT, improvement of qualification and wage increases Establishment of an annual plan for FVT Obligation on employers to inform each employee of the FVT plan Individual right of each employee to FVT Full union involvement in FVT Cost free for employees (except with union consent or by collective agreement) All time spent on FVT is working time normally it should take place during normal working hours (specifications could be made by collective agreement) Establishment of monitoring committees in companies Preparation of negotiating aims/guidelines with equality officers Equal pay audits to establish existing situations regarding pay Concrete steps to achieve equality of wages between men and women as stipulated in the European Treaty Family friendly policies for good work/life balance d) Occupational pension schemes In bargaining with employers over occupational pension schemes, affiliates should seek to achieve minimum standards of: The employer s contribution to the pension fund be twice that of the employee. The maximum length of employment in the industry to qualify for full pension be 40 years. 7
The final pension as a percentage of average pay be 50 percent of the three highest years of earnings Pension arrangements be transferable between graphical employers. Pension funds be jointly managed by employee and employer representatives. e) Health, safety and working environment 6. Transnational Companies CBC will be asked to look at transnational company level co-ordination. 7. Transnational Solidarity Restructuring procedure All UNI-Europa Graphical affiliates agree that should any request be received from any affiliate through the UNI-Europa Graphical secretariat regarding restructuring in any multinational company, a bi-lateral or multinational meeting to discuss the issue and agree any appropriate action will be arranged within seven days of receiving the request. 8
The Questionnaire The questionnaire for the 2008 Survey contained an additional question to that used by the 2007 survey. Affiliates were asked if their existing collective agreements contained any provision for specific training opportunities for older workers and if so what were they. The data upon which this report is based is the Collective Bargaining Survey 2008 questionnaire sent to UNI-EG affiliates in May 2008. Useable returns were received from 28 affiliates. Of these 9 reported changes to existing agreements bargained in 2008 and 8 to changes implemented in 2008 under provisions of agreements signed before 2008. In addition affiliates from seven countries the Czech Republic, Denmark, France, Montenegro, Poland, Slovakia and Switzerland provided information that national wage negotiations in the graphical sector had not taken place, in 2008, in their countries. Pay in these countries was determined at the workplace level. The different bargaining issues covered in the 2008 questionnaire were: 1 the bargaining claims of affiliates 2 informing affiliates and the UNI-EG Secretariat of these claims 3 the start and finish dates of the agreement 4 the number of workers covered by the agreement 5 the bargained wage increase for 2008 6 the average annual increase of national productivity per head in the country for 2008 9
7 the average annual increase in the rate of inflation in the country at the time the changes introduced in 2008 to employment conditions were implemented. 8 the level of unemployment at the time of the wage increase in (1) the country as a whole and (b) that country s graphical industry. 9 Bargained changes in 2008 in working time, paid holiday entitlement, equality issues covering gender, race and disability as well as work life balance, health and safety provisions, vocational training issues, occupational pension schemes and provisions for specific training opportunities for older workers. As in previous years the membership of graphical trade unions in Europe continued to fall and further consolidation of graphical trade unions took place. In August 2007 the Finnish Media Union and five other unions entered into merger preparation talks with the aim of creating the largest union in Finland to be fully functional by 1 January 2010. The 2007 Congress of the Swiss union COMEDIA voted, in the light of its falling membership and declining financial position, in favour of examining the possibility of a merger with the Communications Union or with UNIA. The collective bargaining agenda of graphical employers throughout Europe in 2007 remained the same as in previous years. They pursued cost containment and cost reduction strategies to maintain, and hopefully increase, their market 10
share. They have, as in previous years, sought to negotiate greater flexibility in the use of labour, including an increased use of temporary and agency workers, to reduce overtime and shift work premia and to increase working time without paying additional rates of pay. (b) Pay Moderation Agreements In Spain and the Republic of Ireland the social partners and the national government agreed pay guidelines for 2007. In the Republic of Ireland in September 2006 the national level social partners and the national government had agreed a new national partnership programme entitled Towards 2016 which provided for wage increases of 10% across the unionised sector over a period of 27 months payable in four phases. As well as pay rises Towards 2016 includes a range of non-monetary issues, including measures for a strict enforcement of labour standards against employers. The pay elements of the agreement and the accompanying industrial relations provisions are set within the ambit of an overall 10 year approach to social partnership, reflected in the title Towards 2016. This suggests that similar deals on pay and related issues will be negotiated every two or three years during the decade covered by the framework. In Spain in February 2007 the main trade union confederations (CCOO and UGT) and the employers organisations signed the 2007 Agreement on Collective Bargaining. The main objectives of the agreement included wage moderation, 11
promoting open-ended employment contracts and equal opportunities for men and women. The Agreement provided that wage increases be around 3%, representing the forecast inflation rate of 2% plus 1% in respect of productivity increases. It also promoted the general use of wage revision clauses in collective agreements. These clauses provided compensation if actual inflation exceeded the projected rate, ensuring that purchasing power was maintained. The Agreement also highlighted the need to reinforce investment in education, training and professional qualifications in order to change the basis of the Spanish economy to one of competitive advantage based on increasing added value instead of the traditional approach of cutting costs. In May 2007 it became clear that in Finland a new national incomes policy agreement between the social partners and the central government would not be reached to replace the then existing current two and a half year central deal due to expire on 30 September 2007 Instead collective bargaining was to take place at the level of the individual sectors. In previous years the Finnish collective bargaining system had been based on the conclusion of national incomes policy agreements by central trade union and employers confederations with the government acting as a facilitator. Sectoral trade unions and employers organizations then, in most cases, implemented the Central Accord through their own industry-level agreements. In April 2007, however, the influential Finnish Technology Industries employers organization announced it would pursue sector level bargaining when the present Central Accord expired. The Finnish Central 12
Government announced the conditions were not in place for a new Central Accord. The Finnish trade unions, including the Finnish Media Union, announced they would attempt to co-ordinate their demands and try to ensure all sectoral agreements had the same duration thus making it easier to return to centralized bargaining in the future. (c) Legislative Changes (i) Framework Agreement on Harassment and Violence On 26 April 2007 the EU level social partner organizations signed a framework agreement on harassment and violence which condemned workplace harassment and violence in all forms, promoted awareness raising and training on the issue; required enterprises to have a clear statement outlining that harassment and violence in the workplace will not be tolerated and specifying the procedure to be followed in the event of problems; provided that appropriate action be taken against perpetrators and support be provided to victims; that responsibility for determining, reviewing and monitoring procedures rested with the employer, in consultation with workers and/or their representatives. The agreement will be implemented at member state level by the signatories member organizations by April 2010. (ii) The Vaxholm Case On 23 May 2007 the European Court of Justice s Advocates General gave opinion in the Vaxholm/Lavel case. This case (see Collective Bargaining Surveys 2005 and 2006) raised questions about whether EU law can restrict trade unions in one 13
member state from taking industrial action or if it can restrict the application of collective agreements in a host member state. The Advocates General held that a service provider from another member state is obliged to follow the host agreement but any collective action in support of this must be proportional. The main points of the judgement were: i) the exercise by trade unions of a member state to take collective action to reach a collective agreement with a foreign service provider falls within the scope of EU law. ii) The fact that Swedish law leaves it to the social partners to define the terms and conditions of employment cannot of itself constitute inadequate implementation of the Posted Worker Directive. iii) The freedom to provide services does not prevent trade unions from attempting to demand a service provider from another member State to subscribe to a wage rate determined according to a collective agreement in the country where the services are provided. iv) Collective action must be motivated by public interest such as the protection of workers and the fight against social dumping and must not be carried out in a manner that is disproportionate to the attainment of those objectives. v) Regarding proportionality of collective action the Swedish Labour Court should determine whether the terms and conditions of employment laid down in the collective agreement for the building sector involve a real advantage significantly contributing to the social protection of posted workers. 14
The Swedish graphical union welcomed the judgement stating that it upheld the rights of foreign workers to have the same terms and conditions of employment as Swedish workers and that union s have the right to take industrial action to prevent social dumping. They were, however, concerned about the unclear statement regarding the proportionality of collective action. The final ruling of the European Court of Justice on the case is awaited. iii) Germany It has been a long held view in Germany that secondary, or sympathy, industrial action is unlawful. This view, however, appears to have been reversed by a judgement of the Federal Labour Court issued on 19 June 2007 dealing with a solidarity strike by printers in support of striking newspaper journalists. During the dispute in 2004 the company WE-Druck which owned the Nordwest Zeitung newspaper sought damages from Ver.di the union to which the 20 print workers striking in support of the journalists belonged. The union defended its action by arguing that the printing company was in reality part of the publishing company through ownership links and business dependency. The lower Courts found for the employer but the Federal Court noted that a strike organized by a trade union with the aim of supporting workers covered by the same collective agreement to that of the striking workers was covered by the German constitutional provisions of association and associated activity. According to the Court s ruling associations have the right to employ whatever means they wish to regulate employment conditions by means of a collective agreement if such means were proportional to 15
the ends. In this case the Court said given the legal status of the employer Verdi s action was not disproportionate. iv) Slovenia The 2002 Law on Labour Relations regulating individual employment relationships is an important element of labour legislation in Slovenia and is often called The Workers Constitution. The government and employers considered Slovenia needed a more flexible labour market and therefore amendments to the 2002 law were required. On 29 June 2007 the government and the social partners concluded an agreement on the required amendments. They represented a compromise between the rather radical demands of the employers to reduce workers rights and the trade union objective to defend them. The key changes to the 2002 Law on Labour Relations included (1) the possibility to employ workers for a particular type of work was set out more clearly enabling greater flexibility of movement of workers from one job to another within a company (2) set out four additional circumstances (eg replacing an absent worker) where a fixed term contract may be concluded (3) the employer can terminate an employment contract when a worker is absent from work for five consecutive days and does not inform the employer of the reasons for the absence. (4) minimum periods of notice were standardized in cases where employment is terminated by the employer due to business reasons or reasons of incapacity (5) the maximum number of overtime hours to be worked per year was reduced from 180 to 170. With the consent of the worker overtime work can extend beyond 170 hours per year but cannot exceed 16
230 hours and (6) if a worker proposed to the employer a change in their working hours to improve the balance between their work and family life the employer must explain in writing their decision for refusing the request. Bargaining Claims : 2007 17 affiliates negotiated claims to existing agreements. Of these 60% (10) sought only increases in pay. No other items were included in their bargaining claim. One affiliate had a two item claim (wages and hours of work), another a five item whilst two others, both in Denmark, tabled claims for the graphical and packaging sectors covering hours of work, improved shift premiums, further vocational training, equal treatment, work/life balance, occupational pensions, improved conditions for shop stewards and longer periods of notice for an employer to terminate an employee s contract of employment. Before opening negotiations with the employer only one affiliate consulted with another individual UNI-EG affiliate over their 2007 bargaining claims. Information regarding the claims was provided by email. The same affiliate was the only one, prior to the start of negotiations with the employers, to inform the UNI-EG secretariat of their claims and again this was done by email. The Date and Duration of National Agreements 17
The dates and duration of the 29 agreements upon which the report is based are shown in table 1. i) Pre 2007 Agreements In 2007 the members of 8 affiliates in 6 different countries received improvement in their terms and conditions of employment under 10 collective agreements signed prior to 1 January 2007. Four year agreements were operating in the Czech Republic, and in the general print, packaging and small undertakings sectors of the Italian graphical industry. In the Republic of Ireland a 2¼ year pay agreement was operating under the multi-sector agreement entitled Towards 2016 negotiated by the social partners and the central Irish Government. In Iceland print workers were still working under a collective agreement signed in May 2004 to operate for three and a half years. In Croatia and Norway graphical workers were working under two year agreements, due to terminate in 2008, and which had come into operation in 2006. ii) Agreements made in 20007 In 2007 15 affiliates in 11 different countries bargained revisions to 16 collective agreements. The affiliate in Austria, Hungary, Slovenia and the UK bargained one year agreements. Two year agreements were negotiated in Belgium (print and newspaper sectors), Germany and the Netherlands. A two and a half agreement 18
was concluded in Finland. Three year agreements were bargained in Cyprus (newspaper and general print sectors), Denmark (print and packaging,) and Sweden (newspapers, packaging and general print sectors). Negotiations for a new agreement in Spain which started in February 2007 had not been concluded at the time this report was compiled. The outcome of the 2007 collective bargaining round shows the continuation of Year Number of one year agreements Number of agreements of two years and over Three year moving average (one year agreements) Three year moving average (two year or more agreements) 20021 6 6 2002 8 1 2003 5 9 6 5 2004 5 7 6 6 2005 3 7 4 8 2006 2 10 3 8 2007 4 15 3 11 19
the trend towards the negotiation of collective agreements with a duration of more than one year. A moving trend analysis (see table above) gives a trend line in one year agreements in a downward direction (from 6 to 3) but in an upward movement for collective agreements with a duration of 2 years or more (from 5 to 11). Currently almost ½m graphical workers in Europe are working under collective agreements of more than one year s duration. Approximately 70,000 print employees work under one year agreements of which four out of five are in the United Kingdom. Of the 29 collective agreements listed in table 1 the 2007 changes in wages and other employment conditions became effective in the months shown below. As in previous Collective Bargaining Surveys this indicates the co-ordination of anniversary dates of agreements should be a feasible option. In 2007 79%, compared with 72% in 2006, of agreements in table 1 the anniversary date for the implementation of changes in the employment conditions of print workers occurred in the first four months of the calendar year with the peak, as in 2006, being in January (34% of agreements). Month Number of Agreements % of Agreements January February March April 10 2 4 7 34 6 14 24 20
May June August 4 1 1 14 4 4 TOTAL 29 100 Bargained Changes in 2007: Quantitative Aspects Table 2 shows the percentage pay increase at the national sector level for graphical workers in 18 European countries. The bargained wage increase figure for Denmark is the average increase in wages achieved in company level bargaining. In Denmark, since 1992, wage negotiations have taken place at the company level. The average annual bargained wage increase at the sector level taking all 18 countries together, was +3.1% which was slightly higher than the 3% achieved in 2006. The range of bargained wage increases achieved in 2007 varied from a low of a zero increase (Croatia and Czech Republic) to a high of +7% in Hungary. Taking a three year moving average the annual bargained wage increase has since 2005 been in an upward direction. Year Bargained Wage Increase (%) 3 Year Moving Average 21
2000 2001 2002 2003 2004 2005 2006 2007 +4.1 +3.3 +3.1 +2.9 +2.2 +2.5 +3.0 +3.1 +3.5 +3.1 +2.7 +2.5 +2.6 +2.9 The average annual bargained wage increase for 2007 (+3.1%), however, exceeded the annual average national increase in inflation (+2.8%) so that in general in 2007 graphical workers improved their real purchasing power by 0.3 per cent. In 11 countries (Austria, Belgium, Denmark, Finland, Germany, Ireland, Italy, Netherlands, Norway, Sweden and the UK) graphical workers in 2007 received, at the national level, a bargained wage increase in excess of the annual average increase in the rate of inflation. The corresponding figures for previous years is shown below. A moving trend analysis reveals a clear upward trend in the number of affiliates bargaining a real increase in their members purchasing power. Number of Affiliates gaining a bargained wage increase in excess of inflation (2000-2007) Date 2000 2001 Number of Affilates 8 11 % of Affiliates 3 year Moving Average 47 65 22
2002 9 53 9 2003 6 35 9 2004 9 53 8 2005 12 71 9 2006 13 76 11 2007 11 61 12 The 2007 collective bargaining round brought, on average, a +0.3% increase in the real wages of graphical workers in Europe. This is half the improvement achieved in 2006 and is at the same level as achieved in the 2005 collective bargaining round. The real wage gain for graphical workers when viewed on a moving average basis was on an upward trend since 2003 but in 2007 this trend was halted. No allowance has been made, however, as to how income tax and social security charges in the 18 countries impacted on these real wage gains for graphical workers. Table two shows that in 2007 on a country by country basis six (Croatia, Czech Republic, Hungary, Iceland, Slovenia and Spain) did not bargain a wage increase in excess of their country s average annual rate of increase in inflation. Hungarian graphical workers experienced the largest fall in real wages (-3.0%). One country (Cyprus) bargained a wage increase equal to the annual average increase in inflation. The range of real wage increase varied from a low of 0.3% in Ireland to a 23
high of +3.5% in Norway. Five countries (Belgium, Germany, Netherlands, Norway and the United Kingdom) received real wage gains in excess of 1%. In Belgium new two year agreements were concluded in the general print and newspaper sectors. Both provided for a pay increase of 5.4% in each of the next two years. In addition both agreements provided for an extra days paid holiday for those employees who have worked continually for 25 years for the same company. Bargaining Round Bargained Wage Increase (%) Average Annual Increase in Inflation (%) Real Wage Gain (%) 3 year moving Average: Real Wage Gain (%) 2000 +4.1 +3.3 +0.8 2001 +3.3 +3.1 +0.2 2002 +3.1 +2.7 +0.4 +0.5 2003 +2.9 +2.8 +0.1 +0.2 2004 +2.3 +1.8 +0.5 +0.3 2005 +2.5 +2.2 +0.3 +0.3 2006 +3.0 +2.4 +0.6 +0.5 2007 +3.1 +2.6 +0.3 +0.4 24
In Cyprus there are two separate national collective agreements which cover, on the one hand, the printing industry and on the other, newspaper employees. In 2007 new three year agreements were negotiated in the printing and newspaper sectors. In the print agreement the wage increase was 2.1% and that in the newspaper sector 2.7%. Salaries in Cyprus are made up of the basic salary plus a cost of living allowance (COLA) which is automatically revised every six months. In Denmark a new three year collective agreement for the printing and the packaging sectors became operative on 1 March 2007. They both contained improvements in vocational training, parental and maternity leave, union organization, holiday entitlements, shift premiums and employer pension contributions (see qualitative section below). In addition under the graphical sector the pay of apprentices was increased by 3.5% per year. It was estimated each of these new three year agreements will increase overall wages costs in their sectors by 4% per year. In Finland in October 2007 the Finnish Media Union imposed an overtime ban in the graphical industry sector wide pay negotiations. This was in response to the employers demand to introduce three shift working even in the absence of local 25
agreement. This action brought the employer back to the bargaining table and the overtime ban was lifted. A two and a half year agreement to operative from 18 October 2007 was eventually agreed providing for a 10.1% increase in wages in three stages. 3.9% was payable from 18 October 2007, a further 3.2% increase from 1 October 2008 and a final increase of 3% on 1 October 2009. During these negotiations the Finnish graphical employers stressed that comparisons with wages of other workers in Finland were no longer relevant. Comparisons now had to be with the wages of graphical workers in other Nordic countries and/or the Baltic States. In Germany after the current agreement ended on 31 March 2007 Veri di proposed a 6.5% pay rise for its members employed in the German printing industry. The employers resisted the claim but following, on 9 March 2007, industrial action by some 10,000 workers in 117 German printing plants a new agreement to operate for two years came into effect from April 2007. There was to be a three months (April June 2007) period without any pay increases followed by a general pay increase of 3% from 1 July 2007 and a pay increase of 2.1% from 1 July 2008. The existing part-time early retirement system for older workers continues until 31 December 2009. In Hungary 2007 saw the negotiation of a new one year agreement covering the printing industry and provided for a basic wage increase of 7%. It also provided 26
that the amount of paid overtime per employee per year should not exceed 300 hours. In Iceland on 1 January 2007 employees in the graphical industry received pay increases of 2.9% whilst on the same date the employer s contribution to the pension fund increased to 8%. The employee contribution remained unchanged at 4%. In Ireland the starting date for the first phase of a 10% increase in pay over a 27 month period varied across the private sector. The 3% increase for the first six months of the 27 month agreement came into force in the graphical industry on 1 July 2007. In addition the agreement accepted pensions in terms of both their adequacy and their coverage where collective bargaining issues, contained a general package of measures to enforce employment standards against employers and provided measures to increase the levels of workplace learning and the upgrading of skills. In Montenegro 2007 saw no collective bargaining in the graphical sector. The country s biggest state owned publishing company (POBJEDA) is to be privatized and purchased by a multinational company. The graphical trade union fears it will 27
be unable to maintain wages and conditions and other worker rights following the privatisation. The negotiations in Norway in 2007 were done by the L.O. on behalf of all unions in the private sector. The negotiations were held on the basis of the prevailing and future economic situation. On 29 March 2007 the Norwegian Confederation of Trade Unions (LO) and their employer counterparts, NHO agreed a general wage increase of NOK 2.50 and an increase of NOK1 for those employees who were earning below 90% of the average wage. There followed local negotiations in which graphical workers in Norway were on average able to gain wage increases of 4.5%. In Portugal over the last eight years relationships between the graphical employers and graphical trade unions have been difficult. The employers are refusing to negotiate at the sector level. They are reluctant to grant wage increases at any level. The graphical unions are very much on the defensive and are pessimistic about the future. In Sweden new three year agreements were negotiated in the printing, newspaper and packaging sectors. The printing and packaging agreements provided for an increased premium for pensions worth a wage increase of 0.2% per year, a decrease in working hours worth a wage increase of 0.5% per annum and 28
increased pay rates of 3.35% in printing and 3.38% in packaging. The newspaper agreement provided a pay increase of 3.3% but there was no decrease in working hours agreed. There was an increased employer contribution to the pension fund and an additional cost to the employer for transferring four days off to days off with pay. In the United Kingdom the wage settlement for 2007/2008 with the British Printing Industries Federation provided for increases of 8.70 per week (3.3%) for craft employees. The agreement provided for a cash increase only. A similar deal was agreed with the Scottish Print Employers Federation. Meeting the Quantitative Aspects of the Guidelines The Bargaining Guideline is that the bargained wage improvement should be at least equal to the sum of the increases in the average rate of inflation plus the average annual rate of increase in national productivity. The table below shows the extent to which in the 2007 collective bargaining round graphical unions in Europe achieved this Guideline. It shows In three countries (Sweden, Finland and Norway) the Guideline Target was exceeded. 29
Two countries (Belgium and Denmark) were within 0.5% percentage points of achieving the Guideline Target Two countries (The Netherlands and Germany) were within 0.6 to 1% of the Guideline Percentage Points within Achieving the Wage Guidelines Target Exceeded the Guideline Within 0.5% Within 0.6% - 1% Within 1.1% - 1.5% Within 1.6% - 2% Within 2.1% - 3% In Excess of 3% Number of Countries 3 2 2 2 2 3 4 Total 18 Two countries (Ireland and Italy) were within 1.1 to 1.5 percentage points of achieving the Guideline target. Seven countries (Austria, Cyprus, Iceland, Hungary, Czech Republic, Slovenia and Croatia) were more than 2 percentage points away from achieving the Guideline Target. In four countries, (all of which were in central and eastern Europe), the gap between the sum of inflation plus productivity and the bargained wage increase was in excess of three percentage points. 30
Although in fourteen countries the UNI-EG affiliates bargained wage increases below the guideline target in seven changes to the qualitative aspects of the national agreements were negotiated. The cost to the employer of these enhancements is not easy to calculate but if an estimate is attempted it is likely that in one case (Denmark) the value of the bargained qualitative changes more than offset the gap between the bargained wage increase and the sum of inflation plus national production. Bargained Changes in 2007: Qualitative Aspects Figure 2 shows the qualitative changes to national level collective agreements becoming effective in 2006. In seven countries (Belgium, Cyprus, Denmark, Hungary, Iceland, Ireland and Sweden) improvements in the non wage aspects of the sector wide collective agreement were achieved. This is almost double the number of countries relative to the 2006 collective bargaining survey. A moving trend analysis shows the trend line The Number of Affiliates Bargaining Qualitative Changes in Collective Agreements, 2001-2007 31
Bargaining Round Number of Affiliates Three Year Moving Average 2001 2002 2003 2004 2005 2006 2007 11 9 9 6 9 4 7 10 8 8 6 7 for the negotiation of qualitative changes to sector wide collective agreements was downwards over the period 2001 to 2006 inclusive. In 2007 this decline was reversed. Even so the collective bargaining agenda in the graphical industries of Europe is narrower today than it was some five years ago. The Survey does, however, show the increasing importance of pensions in the collective bargaining agenda. 2007 saw improvements, in five countries in occupational pension arrangements, usually in the form of the employer increasing their contribution into the pension fund. Reduced Hours of Work 32
In Sweden the new 2007 collective agreements in the general print, packaging and newspaper sectors provided for a further 12 minutes off the working day. The Swedish Graphical Workers Union estimates that this is the equivalent of 1 day off the working year or to a pay increase of 0.5%. Taken with previous such improvements (see Collective Bargaining Survey 2003, 2004, 2005, 2006) graphical workers in Sweden are now working five days a year less than five years ago. In Hungary the 2007 collective agreement contained a clause restricting the amount of paid overtime per employee to 300 hours per year. Employees can, if they wish, take time off in lieu of overtime working. In Denmark the new agreement provided agreements in the packaging and General Print sectors if the employer wants to change an employee s pattern of shift working, for example from day to night shift then the period of notice the employer must give is increased to 3 days. In the packaging sector the agreement also permits an employee to refuse to work overtime after working a night shift. Holiday Entitlement In Belgium the two new two year agreements in the printing and newspaper sectors provided for an additional days holiday for employees who have worked continuously for the same employer for 25 years. 33
In Denmark the new three year agreements in the general print and packaging sectors provided employees with Free Choice Accounts under which such an account is established for each employee. A percentage of the total income of the individual worker is entered into the individual account and the sum of money involved can be used by the employee for holidays, maternity leave, retirement purposes or be paid out in cash. The percentage of total income to be paid into these individual accounts is from 1 May 2007 0.5%, from 1 May 2008 0.75% and from 1 May 2009 1%. Equality Provision In Denmark the new agreement covering white collar employees improved social/equal rights. Existing arrangements include 4 weeks before birth and 16 weeks after birth, of maternity leave and 6 weeks of parental leave which can be taken by either the father or the mother. The new agreement includes a further three weeks of full pay parental leave. These weeks are reserved for the father. Three of the existing weeks are reserved for the mother. These 9 weeks parental leave are not compensated at full pay and have a maximum of 135 DKK. 34
In Denmark the new agreement covering the printing and the packaging sectors provided for increased occupational pension during maternity leave and for the flexible and free planning of the 10 weeks fully paid parental leave between the mother and father. Between the 15 th to the 48 th week (in the packaging sector) and the 30 th week (in the print sector) after the birth. Further Vocational Training In Denmark the new agreements covering the printing and the packaging sector give employees the right to two weeks per year vocational training with 85% pay for training which is not relevant to the employee s current job or to the current employer but which is still relevant for the graphical and packaging sector as a whole. Competency Funds are to finance this training. The fund becomes operative from 1 April 2009. Pensions In Belgium the new agreements in the printing and newspaper sectors provided for the employer to pay 0.25% of an individual s weekly salary into the sector occupational pension fund. In Denmark the new agreements provide for the employer payment to the supplementary pension system to increase on 1 July 2008 from its present level of 10.8% to 11.1% and on 1 April 2009 to 12%. The employer finances 2/3 of these contributions and the employee one third. 35
In Iceland 2007 saw the employer s contribution to the pension fund increased to 8%. In Sweden the employer contribution to the pension fund also increased. In Ireland the Towards 2016 Accord put pensions centre stage. The Irish government and the social partners agreed that pensions in terms of both their adequacy and their coverage be dealt with as a priority issue in that industrial relations issues arising from disputes relating to pensions schemes may be referred to the National Superannuation Body by either party. The Accord also commits the Irish government to transpose into Irish law, by the end of 2007, the optional pension provisions of the EU Directive on the Transfer of Undertakings whereby member states may, if they choose include company pension schemes amongst the rights and obligations transferred to a new owner. Other Significant Changes In Cyprus both the new agreement in the printing and newspaper sectors provide for an increase of 0.25% in the employer s contribution (from 6% to 6.25%) to the employees Provident Fund. In Ireland the Towards 2016 Account contains measures to enforce employment standards, including the creation of the post of Director of Employment Rights Compliance. It also makes provision for a range of limited 36
measures that could act as a disincentive to any employer wishing, for example, to offer voluntary redundancy to existing unionized workers on good pay and conditions and simply replace them with workers on legal minimum rates. To counter such developments the Accord provides that a special redundancy panel will be established to advise the Minister for Enterprise, Trade and Employment on whether a particular case should be referred to the Labour Court for a binding opinion. The intention is to address exceptional collective redundancy situation by introducing an element of labour market protection to avert the possibility of the collective compulsory replacement of existing workers by lower paid workers. The new deal in the graphical and packaging sectors in Denmark also contained a number of measures to strengthen trade union organization. In that only shop stewards can represent complaints and other issues to management for trade union members and that only shop stewards can negotiate agreements locally in the enterprise. The agreements also contain improved shift rates. In the packaging sector shift premiums are to be increased by 18% over three years. In the general print sector evening shift premiums are to increase by 24.10% over the next three years and whilst night shift premiums will increase by 26.5% over the same period. Progress in meeting the Guidelines for Bargaining Claims, 2000-2007 (a) Overall 37
UNI-EG has data on a common basis for 13 of its affiliates covering the period 2000-2007 inclusive. These affiliates are from Austria, Belgium, Cyprus, Denmark, Finland, Germany, Ireland, Italy the Netherlands, Norway, Spain, Sweden and the UK. Over the past eight years the majority of UNI-EG affiliates have experienced some difficulties in achieving a bargained pay settlement equal to the sum of the increases in the annual average rate of inflation and the average annual increase in national productivity. Taking the eight years as a whole only eight affiliates have succeeded in bargaining at the sector level pay increases in excess of the sum of inflation plus productivity. The affiliate, however in Norway have achieved this outcome in four years. In five (2000,2002,2005,2006 and 2007) of the eight bargaining rounds a number of affiliates achieved bargained pay increases within half a percentage point of the bargained Guideline Target. In seven of the eight bargaining rounds covered in table 3 a significant number of affiliates obtained bargained pay increases at the sector level within 0.6 to 1 percentage point of the Guideline Target. Over the period 2000 to 2007 inclusive the number of affiliates bargaining a wage increase greater than one and a half percentage points below the target figure of inflation plus productivity declined. Table 4 shows for each of the eight bargaining rounds separately and for the eight as a whole (1) the average annual increase in inflation (2) the average annual increase in national productivity per head (3) the sum of the increase in inflation 38
plus productivity (4) the average bargained wage increase and (5) the average shortfall of the bargained wage increase from the sum of inflation plus national productivity increase. To smooth over fluctuations in the data a three year moving average analysis was undertaken. The main results are:- Taking a three year moving average for the eight collective bargaining rounds taken together the trend line for graphical workers in Europe in general in the gap between the bargained wage increase and the sum of inflation plus productivity has been on an upward trend. In general therefore, over the last eight years the benefits of productivity gains have been going more to graphical employers than to graphical workers in the form of even greater improvements in their employment conditions. Over the last eight years graphical workers in Europe have succeeded in maintaining their purchasing power. In succeeding in maintaining their real purchasing power, graphical workers in Europe have achieved an important objective of their co-ordination of national bargaining in a European context policy, namely that over the medium term nominal wages should at least compensate for inflation. (b) Country by Country Analysis 39
The largest real wage increase for graphical workers over the past eight years have been made in Italy (+3%), Cyprus (+1.8%), Norway (1.1%) and Sweden (1%). The lowest gain in real wages, taking the eight collective bargaining rounds as a whole, has been in Germany (0.3%), the Netherlands (0.4%) and Belgium and Austria (both 0.5%). Table 5 also shows that taking the eight collective bargaining rounds as a whole no affiliate has succeeded in bargaining pay increases in excess of the eight yearly average of the sum of the annual increase in inflation plus the average annual increase of national productivity per head. In two countries, (Norway and Sweden), however, the qualitative changes negotiated by affiliates to their national sector wide agreements would probably, if costed, more than compensate for the gap/shortfall between the eight yearly average for the bargained wage increase and the sum of inflation plus productivity. 40
Figure 2 Qualitative Changes to Agreement : 2007 Hours of Work Over time Holiday Entitlement Equality Provision Further Vocational Training Pensions Other SWEDEN HUNGARY BELGIUM DENMARK DENMARK BELGIUM CYPRUS Reduction of 12 minutes off the working day The amount of paid overtime per employee restricted to 300 hours per year. Overtime working hours can be taken in time-off. DENMARK Overtime payment increased by 3%. Improved notice time for shift workers in case of shift changes 1 Day extra holiday for those employed continuously for 25 years in the same firm. DENMARK Free choice salary account established for each employee which can be used for holidays, training, pension or as cash. Increased occupational pension during maternity leave. Improved parental leave Competency Fund to finance 2 weeks training not relevant to employee s job. Employer contribution to pension scheme increased to 0.25%. ICELAND Employer contribution to the pension fund increased to 8%. SWEDEN Employer contribution to the pension fund increased Employer contribution to the employees Provident fund increased from 6% to 6.25%. DENMARK Shop stewards given compensation for hours spent outside normal working hours Only stewards can negotiate agreements locally in the enterprise. Training for new shop stewards. IRELAND DENMARK Payment to supplementary pension system increased from present rate of 10.8% to 11.1%. IRELAND Measures to enforce employment standards including the creation of the post of Director on Employment Rights Compliance. Action on the case of exceptional collective redundancy situations Social partners to deal with pensions as a priority issue. 41