Collective Bargaining

A column that combines data from different sources to construct distributional national accounts shows the limits of the myth of egalitarianism. When compared to the United States, where inequality has skyrocketed, the country can be considered an equalitarian country with a low level of inequality. The gender pay gap declined in recent decades, albeit fairly slow among top labour incomes (for example, the female share among top 0.1% earners was only 12% in 2012, compared with 7% in 1994 and 5% in 1970). But in-depth analysis leads to higher inequality levels than the usual tax-based series for the recent decades, because the latter miss a rising part of capital income.

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The PNO trade unions’ seamen went on a two-day strike in the beginning of September 2018 (see our July/ August newsletter). The two-day strike affected multiple routes from the mainland to the islands and whilst the tourist season was still going, the strike affected many travellers. After two days of strike the seamen decided to end the strike in return for a 2% pay increase. This was their first pay increase in eight years.

Read on: in English … in English (2) …

Data released by the statistical office CZSO show an increase of 8.6% in average wages in the second quarter of 2018, compared to the same period of 2017. The monthly average gross nominal wage reached CZK 31,851, CZK 2,515 more than the same period in 2017. In Q2 2018, the median wage reached CZK 27,236. The median wage has increased by 9.4% compared to the same period of the previous year. With a 2.3% increase in consumer prices, the growth of average wages was at a rate of 6.2% in real terms.

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A column describes how the implementation of the statutory minimum wage in 2015 has raised incomes in the lower part of the wage distribution without affecting employment of low-wage workers. Against the background of the evidence provided, the authors conclude that the recently agreed increase in the minimum wage to €9.35 by 2020 seems justifiable. Another report from the Hans Böckler Foundation indicates that the minimum wage introduction has tended to stimulate economic growth. This was mainly due to the higher wages of the minimum wage beneficiaries and a spill-over effect on adjacent wage groups. It benefitted in particular those whose low savings rate led to a strong increase in real private consumption.

Read the Column: in English … The HBS-report: in English …

The 4500 workers at Uljanik group that went on strike in August to protest unpaid salaries and bad management in the company (see our July/August newsletter) were finally paid. The workers at the countries’ largest shipbuilding group received their unpaid wages for July and ended their 10-day strike. After workers came to the capital Zagreb where they protested in front of the government building the government stated that it had found a model to help workers and pay them salaries for July and August.

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Rail workers on South Western Railway (SWR) began a three-day strike in a long-running dispute over the role of guards on trains. Network Rail is facing more strikes in September if negotiations fail. The walkout is the sixth of eight planned strikes across the summer - the previous five were all for 24 hours. Trade union RMT is asking for a guarantee of guards on trains and a halt to the ‘rolling out of driver-only operation’.

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Trade union GPA-djp and PRO-GE have fixed their planning for this autumn’s collective bargaining in the metal sector. It is expected that the talks will start in the second half of September. The unions intend to work towards an industry-wide agreement, although the negotiations start at sub sectoral level. The basic demands are the respect for workers’ rights, improvement of pay and the reduction of the working time. The current monthly minimum wage in the sector stands at 1,848 euro.

Read on: in German … The union leaflet: in German …

An agreement over working conditions with Ryanair pilots has been approved. It is the first deal the strike-hit low-cost airline has fully concluded. The agreement that was reached after eight months of talks, gives Italy-based pilots working for Ryanair ‘protection and guarantees’, according to the ANPAC trade union that negotiated the collective agreement. The deal was submitted for approval to 300 pilot members and accepted with a large majority of votes.

Read on: in English … The union statement: in Italian …

Trade unions and employers published the bargaining results of a project that has to lead to a minimum wage agreement. The minimum wage negotiation project is based on a model for calculating the minimum wage agreed upon by trade unions and employers. Bargaining regarding the 2019 minimum wage ended at a monthly rate of 540 euro and an hourly 3.21 euro. The organisations have asked their membership for comments before the final signature. The board of the Trade Union Confederation will discuss the minimum wage issue on 25 September, the council of the Employers' Confederation on 19 September.

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All six nurses’ trade unions agreed to call out a national strike on 20 and 21 September. The strike actions are held after demands regarding status, pay and working hours that were presented exactly a year ago continuously failed to result in action by the government. The six unions had a meeting scheduled to analyse an expected Government proposal, but in the absence of the document, the meeting was used to coordinate protests. Earlier in August, a five-days strike had an impressive participation with around 35,000 of a total of 40,000 nurses across the country that joined the strike.

Read on: in English … in English (2)…