Collective Bargaining

U The National Living Wage that was introduced in 2015 for workers aged 25 and over has risen by 4.9% to 8.21 pounds an hour. This is the highest increase rate since its introduction. The National Living Wage is not to be confused with the so-called real living wage. According to the UK government, 1.8 million workers earning the National Living Wage will receive an additional 690 pound. This is still 1500 pounds a year short in comparison with the real living wage. The National Minimum Wage is also increasing to 7.70 pounds per hour for 21 to 24-year olds. The TUC stresses that young workers are still getting a raw deal on pay: ‘their bills aren’t any cheaper, but they have to make ends meet with less’.

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Taxi drivers in the department of Oise went on a one-day strike and demonstrated in front of the headquarters of the primary health insurance fund in Beauvais. The taxi drivers are in conflict with health insurance on the pricing to be applied for the transport of sick people. A conflict that has its roots in the memorandum of understanding signed between the six national taxi federations (FNAT, UNT, FNTI, FFTP, FNDT and UNIT) and the National Union of Health Insurance Funds entered into at the end of January 2019.

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UNI Global Union stands in solidarity with Arzu Çerkezoğlu, president of UNI affiliate Dev Sağlık-İş, who faces up to three years in prison. The case against Çerkezoğlu, is related to comments she made during a public panel in June 2016 in Sapanca which had been organised by Turkey’s largest opposition party. UNI supports Çerkezoğlu’s right to free speech and her right to call for peaceful protest. In court, Çerkezoğlu is expected to repeat her testimony that to fulfil labour rights we need a democratic and egalitarian society in line with international law, including the relevant ILO conventions.

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Workers organised a protest outside the main gate of Aviano Air Base in demand of the air base to honour long-standing agreements regarding employment on base. According to the union, there are American civilians holding jobs on base they shouldn’t have under decades-old basing agreements between the U.S. and Italy. Furthermore the workers are angry with the base for changing days and hours worked for Italian employees without negotiating and using contractors for jobs that Italian workers on base have traditionally done or could do instead. The unions also state that the base has hired more than a dozen local workers on a temporary basis instead of offering them permanent jobs. The workers and their union don’t rule out strike actions.

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Given that pensions in the country are only 1.2 times the poverty line workers might have to delay retirement if they want to maintain living standards. Government is keen to launch a discussion of additional measures to encourage elderly workers to stay in the workforce but there are other ways to solve this problem. Government could also substantially increase pensions. In comparison, in Spain pensions are on average 1.7 times the poverty line.

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T In a public hearing on low pay trade union SIPTU has called for the national minimum wage to be increased from 9.80 to 10.20 per hour next year. According to SIPTU this increase in the minimum wage is necessary because of research indicating a lack of “wage progression” for low paid workers, unacceptable levels of in-work poverty and that such an increase could be paid by employers due to the improving economy. The union also stated that the hourly minimum wage based on full time hours required to deliver a minimum essential standard of living was 11.90 euro per hour in 2018.

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According to the report Benchmarking Working Europe 2019 published by the European Trade Union Institute countries affected by the combination of austerity and erosion of collective bargaining show sharp declines in the share of wages over GDP. This is one of the main elements of a scenario in which wage performance, at various levels and in many countries, has not reflected the economic growth situation. The report highlights that the Spain is the country with the highest rate of temporary employment, and that this is undesired in 85% of the cases. Furthermore the report shows a downward evolution of real wages, with a decrease of 0.7% in 2018.

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Union Ver.di reached a deal with Ryanair about pay and working conditions for some 1100 Ryanair employees in the country. According to the union with the new deal cabin crew employees will receive an increase of €600 per month and separate increases of up to €250. The employees will also be given a minimum of flight hours. The company will in the future apply national labour laws. Ryanair refused to comment.

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After the labour court ruled that the process was fully legal, several hundred workers in hotel and guesthouse cleaning and laundry services in Reykjavík and the surrounding area went on a one day strike on 8 March 2019. The hotel workers organised the strike to protest low payment in the sector and was part of a broader union campaign (see our February newsletter). A 48-hour strike action, in which bus drivers would also participate and that was planned for the end of the month, was cancelled the day before the strike action would take place. However, the cancelled strike doesn’t mean that the threat of industrial action in the country is over. Trade union Efling has planned more strikes in the coming weeks in order urge employers to meet their demands for a living wage. The unions also wants tax relief, rent control, and actual penalties for companies which violate labour contracts and the law.

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This national report examines the use of social dialogue in wage setting in the country and offers an overview of the trajectory before and after the 2008 economic crisis. Furthermore the report provides a justice-based evaluation of two social dialogue mechanisms: collective bargaining and the tripartite Low Pay Commission advising the Government on minimum wage rates. Results include that post-crisis developments reinforced and deepened pre-crisis trends. This effect is manifest in the continuation of the decline in collective bargaining coverage and unionisation. These developments are complemented by new legal reforms placing additional constraints on unions’ already heavily circumscribed ability to act as effective collective bargaining and political actors. However, the minimum wage has gained strength in terms of value and legitimacy in recent years.

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