Collective Bargaining

According to economists the living standard for the average citizen will increase by 4% at the beginning of this year. Predications are that both production levels and the purchasing power in the country will stay on the rise the coming years. Experts predict that banks will have no justification to increase their interest rates in the coming year and that the prices of real estate will not decrease. Furthermore, they believe that in five more years that see a 4% increase in real wages the purchasing power of the people living in Serbia could go up by over 20%.

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Finance trade unions and the Allied Irish Banks (AIB) agreed upon a new collective agreement that includes an average 3% pay raise for AIB workers. The 3% pay hike consists of two elements: a fixed element to cover the increased costs of living and a performance-related element. The average increase of 3% is set to apply to 80% of employees across the bottom three staff levels covered by the collective bargaining agreement. About a fifth of the employees are currently on a salary below the minimum proposed ranges for the three staff levels.

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Official figures from the Federal Ministry of Labour and Social Affairs indicate that in 2016, 48% of retirees had a state pension of less than 800 euro a month. Raising the bar to 1,000 euro, the proportion is 62% of the total number of retirees (almost 11.5 million people). According to the authorities state pensions are often supplemented by income from private funds or pension schemes offered by companies. Data on the number of pensioners who benefit from this extra income are not available. Poverty in old age is especially prevalent amongst women. Poverty in old age is expected to increase from 16.2% today to 20.2% in 2036.

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Although slavery is legally forbidden around the globe it still exists in several forms. According to estimations by the UN around 40 million people live in some way of slavery world-wide. Inhabitants of Western countries come across slavery when buying food, clothing or telecommunication devices. To fight this the government set up a commission. This action was provoked by the fact that the financial world can do more in this respect. During this month the country will host an international conference on modern slavery and human trafficking. Best practices how to fight it will be developed.

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Trade unions the General Union of Workers and Workers' Commissions announced a massive demonstration in Madrid to be held on 8 February 2019. The two trade unions want the government to reverse a number of reforms in the country's labour legislation that were introduced during the peak of the Eurozone crisis. The unions also oppose changes to pension rules that state payments will be reassessed according to factors including life expectancy which came into force at the start of this year. The government has promised to reverse some of the most controversial parts of the labour and pension reforms, but the trade unions are becoming increasingly impatient.

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Responding to a complaint in 2016 by the Irish Congress of Trade Unions, the European Committee on Social Rights (ECSR) has for the first time released a statement on the collective bargaining rights of self-employed workers. The ECSR stated that “self-employed workers should enjoy the right to bargain collectively through organisations that represent them, including in respect of remuneration for services provided, subject only to restrictions provided by law, pursuing a legitimate aim and being necessary in a democratic society”. delays.

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Announced industrial action by Ryanair staff in Spain (see our December issue) was called off as Ryanair and trade unions seem to have reached an agreement in their 1.5 year-ongoing dispute over workers’ rights. According to the unions Ryanair finally agreed that it will apply Spanish labour laws to the workers that are based in the country and that they will also start collective bargaining as off immediately.

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Trade union CGT called Air France ground staff for a 4-hour work stoppage at the Marseille-Provence airport to denounce the working conditions. One particular problem is the organization of employee schedules. The call for a strike comes as three of their colleagues stationed at the Marseille port of call committed suicide at their homes between November and the end of December 2019. The three employees, aged between 32 and 50, were working on the tracks or were mechanics. In response to a request of the social partners, the management of Air France in Marseille has proposed the establishment of working groups to involve all workers in the organization of their work.

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In the context of declining union membership and protection of workers through collective bargaining, trade union DGB asks for a bonus for union members. The union believes that union members should be rewarded in the collective agreement because they contribute to strengthening of the collective bond and help to preserve the social peace. One possibility that the DGB put forward is that union members get a bonus, or more vacation days.

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New data from Statistics Norway shows that the pay gap is increasing, especially in the public sector. In a period of ten years, from 1997 to 2007, the difference between those who earn the most and the least has become much bigger. In 1997 the average monthly salary for people in the first decile was 2.8 times higher than in the lowest decile while in 2007 this had risen to a salary that was 3.8 times higher than the salaries paid in the lowest decile. According to Statistics Norway an important explanation for the increased pay gap is the increase in pay for top executives. According to OECD data, in the period of 2000- 2015 income inequality in the country grew more than in most other countries.

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