Collective Bargaining

Throughout the country mental health professionals have been protesting for several months. In Rouen, eight of them even went on an 18-day hunger strike. The mental health workers are not protesting to get a pay rise but are instead concerned about the quality of the care and loss of meaning in their work. While staffing levels are falling, patient numbers are constantly on the rise: between 1991 and 2003, they increased by 62% for general psychiatry, with an annual increase of three to five %. It can take patients years to get an appointment.

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The General Workers’ Union has requested the Maltese Council for Social and Economic Development (MCESD) to open a discussion on the proposal for every worker to be involved in a trade union of his choice. Earlier on, the Malta Employers’ Association (MEA), the Malta Hotels and Restaurants Association (MHRA) and the Malta Chamber of Commerce Enterprise and Industry (MCCEI) had stressed that it is up to an individual employee or company to decide on joining an association. The organisations reacted on a statement of the Prime Minister who had suggested in parliament the possibility of a compulsory membership of workers and companies in trade unions and employer associations.

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After ongoing negotiations on a new collective agreement for the construction sector, that have been ongoing this year, remained deadlocked multiple strike actions were organised last month (see our October newsletter). The striking workers wanted to give out a strong signal against the massive attacks on the builders’ collective agreement. They demand 300 additional flexible working hours and for a pension starting at the age of 60. The background of the strike action is the Landskraft contract for the construction industry, which expires at the end of the year. The unions complain that although a solution to secure the pension at age 60 is on the table, the construction workers would pay the cost of the renovation if the workers don’t in return the master builders paid a decent wage increase. But the builders' association was only prepared to implement this solution if the unions agreed to a clear cut in the state coat-of-arms agreement.

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Trade unions have been confronted at the aluminium giant Alcoa with attacks on workers, contradicting the company’s claim that it produces aluminium responsibly. The US-based Alcoa announced on 17 October that it would close two of its three Spanish aluminium smelters, Aviles and La Coruna, resulting in the layoff of 700 workers. The Alcoa European Works Council (EWC) criticised Alcoa for failing to comply with European information and consultation regulations by not consulting with the EWC in advance and not providing the EWC adequate information. The Netherlands-based EWC has filed a Dutch court claim in order to block the closure and layoff. Alcoa claims the two plants are inefficient and that nobody wants to operate them.

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After long negotiations the German construction workers union IG BAU and the Federation of German Roofing Contractors finally agreed on a new collective agreement. Part of the new agreement, that has a term of 26 months, is that the approximately 80 000 employees in the sector will get a pay rise of 2.7% from December 2018 and an additional 2.9% in October 2019. A one-time payment of 360 euro for members of IG BAU is also part of the deal. According to the trade union the industry is finding it increasingly difficult to find experts for the heavy work on the roof. They believe higher wages would make the work significantly more attractive.

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Data published by the finance ministry reveal that, out of a total of 1.6 million registered employees, some 87,000 workers receive a monthly net wage between 6000 and 6500 Kuna (807 to 874 euro). This amount represents more or less the monthly average wage that is calculated at 6254 Kuna. As many as 1, 16 million workers earn less than the average wage, with more than half of the workforce (847,750 workers) grouped in the category between 2500 and 5500 Kuna. A small group of top earners (269 employees) receives a monthly net wage above 100,000 Kuna (13,500 euro).

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The ILO produced an interesting report on the evolution of the labour market and the recovery of the country that is now available online. Chapter 6 is completely dedicated to collective bargaining and the impact of legal and policy changes since 2009. The changes to collective bargaining imposed by the Troika – especially the freeze on collective bargaining at the sectoral level –had a negative impact on the level of trust between and among the tripartite actors, heightened tension and created obstacles to restoring a bargaining tradition. The 30 May 2018 tripartite agreement marks an important milestone in rebuilding a stronger culture of collective bargaining. It provides new rules with regard to the expiry and renewal of collective agreements, which can promote a more dynamic outcome to bargaining and strengthen the principle of most favourable treatment.

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The statutory minimum wage for millions of workers will be increased in both the coming two years. As of January 1, 2019 the minimum wage will increase from the current 8.84 euro to 9.19 euro per hour. On January 1, 2020 it will further increase to 9.35 euro. Government officials stated that the introduction of the minimum wage in 2015 had been a necessary and proper step and that the minimum wage needs to be adjusted regularly.

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Last month unions called on their member to reject a proposed pay deal by the government (see our September newsletter). Unions want a pay increase for all nurses that would set their salaries at the level of physiotherapists and demand that serious recruitment and retention issues are attended. Members of the two unions involved indeed voted to reject the pay offer. Unions will now discuss their next steps. A ballot in favour of industrial action is to be expected. Government wants to reopen talks with the unions to prevent industrial action.

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The Trade Union of Health and Social Care Employees is concerned that wages of employees in the healthcare sector will not increase by 20% as they have been promised. There will not be any free money for the newly-elected political parties to realise their pre-election promises. To raise salaries, increase pensions or provide healthcare to residents who don’t pay taxes the government needs to make cuts or increase taxes. The union warns that if the government fails to keep its promise more healthcare workers will leave the country which will result in severe labour shortages in healthcare.

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