Industrial Relations in Europe 2012 - European Commission - Europa

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Nevertheless, it should be remembered that this was preceed by a three-year pay freeze from 2005- 2007 and a low increase in 2011. A number of other themes can be discerned. First, there have been attempts to target pay reductions on the higher paid. In certain cases, the lowest paid have been fully or partially exempted from pay freezes or wage cuts. For example, in the UK the two-year pay freeze excluded workers earning less than £21,000 (around €26,000) a year except in the case of local government workers covered by a separate agreement. In Ireland, during 2008-2009 a series of measures reduced public sector pay, but when further reductions were announced in December 2009 to take effect on January 1 st 2010 these were on a sliding scale with a 5% cut on salaries of EUR 30,000 increasing to a 15% reduction for those earning above EUR 200,000 (Stewart 2011: 223). Similarly in Greece, Italy, Portugal and Spain higher earners have been targeted for larger reductions in pay. Second, in contrast to the private sector, where pay is usually decided at company or sectoral level, these exceptional wage measures often require parliamentary approval. Consequently it is not the direct employer or an employer’s association making pay decisions but rather national politicians with a variety of incentives and answerable to a broader range of stakeholders. Governments therefore have sometimes amended plans to curtail public sector pay and have been reluctant to provoke the public sector workforce, especially in election years; planned measures do not always equate with outcomes. In Slovenia, plans to cut basic pay by 4% at the end of 2011 were rejected (although in 2012 the Public Finance Balance Act decreased wages in the public sector by 8% on average) whilst in Portugal an amendment to the 2012 budget law raised the monthly salary threshold for suspension of the 13 th and 14 th month salary payments from EUR 1,000 to EUR 1,100 (EC 2011). In Denmark more contentious aspects of pay reforms such as the individualisation of pay negotiations were not pursued during 2011, an election year. Nevertheless, despite some concessions, the unpopularity of austerity programmes has not prevented the collapse of governments. Third, as Table 4.5 indicates, the crisis has led to a slowdown in the rate of increase in compensation and in some countries the effects of wage freezes and pay cuts are starting to become evident. These measures, however, represent short-medium term responses that have a finite time limit. As economic growth returns, restricting public sector pay may lead to staff shortages, emigration and difficulties in attracting talented individuals into public service. Many governments have sought to use the crisis to bring about structural reforms of pay determination and wider labour market reforms that will have significant long term consequences for public sector employment relations. In the UK, the government proposed changes in public sector pay determination to take more account of regional variations in pay rates. In Bulgaria, a new pay system in public administration has replaced traditional seniority-based pay with a system that takes more account of performance and in Luxembourg performance management and progression of civil servants have been reformed. 177
Table 4.5 Compensation of public administration employees, 2002-2011 % of GDP Annual average % change in EUR or national currencies 2011 2002-2011 2002-2007 2007-2011 EU-27 10.8 2.8 4.0 1.4 EU-15 11.0 2.6 3.7 1.3 BE 12.6 4.0 4.0 4.1 BG 9.0 9.0 11.2 6.2 CZ 7.3 4.3 7.0 1.0 DK 18.5 3.4 3.1 3.8 DE 7.7 1.5 0.4 2.9 EE 11.1 9.3 13.8 3.8 IE 12.0 5.3 10.7 -1.0 EL 12.4 4.6 8.0 0.5 ES 11.6 6.0 8.1 3.5 FR 13.2 2.7 3.0 2.3 IT 10.7 2.3 3.6 0.8 CY 16.1 7.6 9.0 5.8 LV 9.5 9.4 21.1 -3.7 LT 10.3 7.1 10.6 3.0 LU 8.0 6.4 6.5 6.3 HU 10.2 3.4 6.8 -0.7 MT 13.4 3.9 2.7 5.4 NL 9.8 2.9 2.8 3.0 AT 9.4 3.3 3.3 3.3 PL 9.8 6.1 5.4 7.1 PT 11.4 -0.3 0.5 -1.3 RO 7.6 14.6 25.6 2.1 SI 12.8 6.2 6.3 6.1 SK 7.1 4.3 3.9 4.8 FI 14.2 3.9 4.0 3.7 SE 13.9 2.7 3.9 1.1 UK 11.1 4.8 6.8 2.3 Source: Eurostat (2012), Government revenue, expenditure and main aggregates, http://epp.eurostat.ec.europa.eu/ Overall, virtually no country has been immune from pressures to curb wages but the degree of moderation has varied between countries. The experience of different countries confirms the differences between the two clusters of countries outlined earlier. In the first, the deepest cuts are evident with the most sizeable reduction occurring in Greece but with large pay cuts also taking place in Hungary, Ireland, Latvia, Lithuania, Portugal, Romania and Spain. In the second cluster of countries Germany is a case apart in terms of the absence of pay cuts with somewhat similar developments in the Nordic countries and in some of the agreements concluded in the Netherlands. In the UK, the pay scale freeze has not precluded some pay uplift for low paid workers and those 178
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Industrial Relations in Europe 2012
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Neither the European Commission nor
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Table of contents Executive summary
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employers. The second covers countr
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as has trade union fragmentation, d
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collective bargaining, in other cou
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fragmentation and pay dispersion ha
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Generating new jobs and transformin
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een negligible. Second- and third-t
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Nevertheless, the study indicated m
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Chapter 1: Overview of European, na
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2010, collective bargaining coverag
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short period of eight years. In Est
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Chart 1.6: Bargaining centralisatio
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A core aim of the CAWIE project has
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purposes of the present analysis. T
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have been substituted by contractin
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Table 1.1 shows that in 11 countrie
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SI SK UK Central level agreements.
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IT LV LT LU MT NL PL PT RO SE SI SK
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Across the EU the magnitude of the
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IE IT LV LT LU MT NL PL PT RO SE Jo
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argaining in the same way so that d
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Table 1.6: Major unions in the publ
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LU LV MT NL General Confederation o
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As shown by Visser (2010) for the n
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1.5 Employers’ associations In co
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SI SK Governmental bargaining group
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State-centred, including Greece, Sp
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Chart 1.12: Comparison between nati
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this would imply that industrial re
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Doellgast, V. and Greer, I. (2007),
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Chapter 2: Industrial relations dev
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the only available source of compar
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Chart 2.4: Annual net earnings in t
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Table 2.1 GINI coefficients for the
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producers’ Finally, the governmen
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A weakening membership base indicat
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less eager to join an employers’
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The lower degree of bargaining coor
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Existence of tripartite council con
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including trade unions in policymak
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Legal extension of collective agree
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Descriptive statistical evidence (s
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of sector-level collective agreemen
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* Italics indicate pacts addressing
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the liberal CEECs (LT, LV, EE, RO a
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2.3.7 Interim conclusions Unionisat
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Chart 2.16: Multi-national companie
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Box 2.3 Coping with the economic cr
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motivation for employers was findin
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EE HU rapid increase before the cri
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SK 2011: cuts/freeze planned SI 200
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cooperation within the EU, where be
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cabinet resignation, Romania renege
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important for building additional r
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References Avdagic, S. (2005), ‘S
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egulationin Eastern Europe’, in D
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and not an exact measurement of the
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Of the remaining countries, four -
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In some cases this is linked to emp
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Page 129 and 130: Table 3.4 Part-time employment, 201
Page 131 and 132: Table 3.6 Number employed in tempor
Page 133 and 134: 3.4 Employment status and the right
Page 135 and 136: employees (Angestellte and Arbeiter
Page 137 and 138: Table 3.8 Trade union density in th
Page 139 and 140: distinguish between ‘technical’
Page 141 and 142: with adequate services as well as t
Page 143 and 144: Wales) about pay increases, based o
Page 145 and 146: majority public ownership) than in
Page 147 and 148: 3.7 Centralisation, decentralisatio
Page 149 and 150: government over the entire bargaini
Page 151 and 152: 3.8 Industrial conflict and settlem
Page 153 and 154: all of public employees. Career civ
Page 155 and 156: is also paid to equal pay and low-p
Page 157 and 158: Casale G. (2008), Public service la
Page 159 and 160: Pedersini R. (2009), “La riforma
Page 161 and 162: Appendix 3.1 Number employed in pub
Page 164 and 165: Chapter 4: The consequences of the
Page 166 and 167: had a lengthy engagement with NPM r
Page 168 and 169: Moreover, after an initial increase
Page 170 and 171: GDP), Denmark (3.2%), Cyprus (0.9%)
Page 172 and 173: in 2009 - a target that was missed
Page 174 and 175: public sector and its workforce in
Page 176 and 177: Pay Cut Pay Freeze Other measures H
Page 180 and 181: able to progress to higher salary p
Page 182 and 183: the sharing of information technolo
Page 184 and 185: and moves towards fiscal consolidat
Page 186 and 187: the importance of inward investment
Page 188 and 189: In countries less affected by auste
Page 190 and 191: Spain -18,000 in 2010 in public adm
Page 192 and 193: 4.5.2 Responses of social partners
Page 194 and 195: Country Protest & Strikes Finland F
Page 196 and 197: Country Protest & Strikes Spain Ext
Page 198 and 199: It has been suggested that although
Page 200 and 201: Acknowledgements We thank Berndt Ke
Page 202 and 203: Ibsen, C., Larsen, T., Madsen, J. a
Page 204 and 205: Chapter 5: Greening the social dial
Page 206 and 207: (Ueapme 2010 55 ). Fostering the ad
Page 208 and 209: 5.3 Cooperative approaches in manag
Page 210 and 211: Chemical industry institutes) is th
Page 212 and 213: 5.4 Representation within an emergi
Page 214 and 215: In other countries, the emergence o
Page 216 and 217: Skills developments Career and empl
Page 218 and 219: (WiRES 83 ) looked into the aspect
Page 220 and 221: Career and employment security Heal
Page 222 and 223: solar energy production, has launch
Page 224 and 225: will hire unemployed workers, with
Page 226 and 227: Overall, industrial relations in gr
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References Arbeiterkammer Wien, Ins
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Chapter 6: Social partner involveme
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the same country in different areas
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6.3 Unemployment benefit systems Th
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established tripartite cooperation.
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would appear that the funds were a
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Further, according to the most rece
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An example of social concertation i
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government will facilitate the acco
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funds. The schemes were based on pe
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of industrial actions in the summer
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managing these insurance funds is t
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6.6.2 Social partner influence on p
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etirement income gap by private fun
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Acknowledgements The author would l
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Natali D (2009), Public/private mix
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Commission must consult the social
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social partners' increasing role as
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The agreement is a significant achi
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the Commission not to present it to
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In late July 2012 the cross-industr
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Through the AGS the Commission has
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workplaces in local and regional go
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Moreover, the social partners are c
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Change Summit in Cancun in December
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linked to the Europe 2020 strategy
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EU's flagship policy towards the se
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to be included in the national LLL
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industry and sectoral social dialog
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In the construction sector, the Eur
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In the sugar sector, the implementa
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Directive on 30 May 2012. In this,
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well represented at the higher leve
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to establish and/or improve nationa
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Federation of Textiles, Clothing an
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Chart 7.1 Number and type of texts
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commitment to the aim of full imple
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Table 7.1: European sectoral social
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Table 7.2: European social partner
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Recovering and strengthening compet
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Joint position regarding the Europe
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developments, explains the Commissi
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The review is based on consultation
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concluded on 21 May 2012 a European
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Furthermore, studies were commissio
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Report of 26 October 2012 on the im
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Six judgments were delivered relati
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In Case C-3/10 162 , the ECJ ruled
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In Case C 282/10 179 , the ECJ deci
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8.3 Health and safety of workers 8.
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8.3.5 Exposure to asbestos Practica
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of data due to the need for major a
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and effects of the EU Directives on
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2. FREE MOVEMENT OF WORKERS DIRECTI
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