Collective Bargaining

Trade union IG Metall will push for shorter working hours and 6% more pay for the 3.9 million workers in the upcoming negotiations in the metals and electrical sectors. The unions seek a drive for a better work-life balance. The demand by IG Metall reflects growing self-confidence among trade unions as Europe’s biggest economy is set to grow by roughly 2 per cent this year and unionists say employees should get a fair share of the success. IG Metall is campaigning for a right to reduce weekly hours to 28 from 35 — with a right to return to full-time work after two years — for shift workers and those caring for children or other relatives. An economic observer commented that the demand for better work hours instead of higher wages is part of a much bigger trend that shakes up economic assumptions and European monetary policy.

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In a report from an inspection by the International Transport Workers’ Federation (ITF) evidence is provided of unpaid wages, seafarer abandonment and other severe negligence of pay and working conditions. The shipping industry is relatively unique in its use of flags of convenience (FOC). An FOC ship is one that flies the flag of a country other than the country of ownership. By flagging out, ship owners can take advantage of minimal regulation, cheap registration fees, low or no taxes, and the freedom to employ from the global labour pool. The systematic and deliberate withholding of wages of seafarers amounts to a form of compulsion requiring workers to remain in abusive working and living conditions.

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The negotiations for the paper industry collective agreement came to a standstill after the employers' organisation, the Finnish Forest Industries Federation, offered a zero-pay rise to the Paper Workers' Union. The union is the first industrial union to negotiate on a pay rise this autumn. Their collective agreement expired at the end of September. Although the union did not publish their exact demands for a pay rise, it is definitely not zero. The paper industry is doing much better economically now than in the past few years. The union’s board made it clear that a zero level pay rise is a non-starter. It says that the employers’ proposal shows disdain for employees. Preparations for possible industrial action have started.

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After talks with representatives of unions the management of the local unit of French supermarket chain Auchan Retail Hungary announced that it will raise wages of store staff by 13.6% on average from 1 November 2017. In recent months, the pressure for better wages has increased in several retail chains. Auchan, with almost 7000 workers, has also announced to engage more staff. The trade union of commercial employees (KASZ) said that new engagements should, first and for all, take away existing labour shortages.

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In an extensive assessment of the economic development since the start of the economic crisis, published by the statistical office Insee, several paragraphs are dedicated to the role and impact of collective bargaining. The authors conclude that the institutionalisation of labour relations does not tip the balance of power in favour of employees, especially during an economic crisis when the social dialogue can be used by management for its own purposes. In the chapter on wage income during the crisis it is noted that, while employment and wage adjustments have frequently gone hand in hand with collective bargaining, the latter seems to have facilitated rather than hindered these adjustments.

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The latest International Monetary Fund’s Fiscal Monitor report, Tackling Inequality, focuses on inequality and ways of reducing both its causes and effects. The report says that, while some inequality is inevitable in a market-based economic system, excessive inequality can erode social cohesion, lead to political polarisation, and ultimately lower economic growth. It also signals that, although increased global integration and technological progress are widely recognised as having generated widespread economic growth and falling global inequality and poverty, the rising inequality in advanced economies, in conjunction with job insecurity and stagnating real incomes for a segment of the population, has led to growing public backlash against globalisation.

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A deal struck between Lufthansa and the main pilots union should ensure significantly less labour turbulence in the years ahead. The formal signing of the agreement — which is valid until June 2022 — will end the prospect of strikes, which have affected the airline in recent years. The deal will reduce Lufthansa's pilot staffing costs primarily through pension benefit cuts, something the airline has been trying to achieve for years as it tries to compete with low cost European rivals such as Ryanair and easyJet. The deal paves the way for the hiring of up to 700 junior pilots at Lufthansa, its cargo divisions and its subsidiary Eurowings, previously known as Germanwings. The negotiation partners speak about a new beginning of social dialogue.

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General practitioners, specialists and dentists held a symbolic nationwide protest against inadequate financing and excessive bureaucracy that is driving many of them out of business. They warned that the symbolic protest would be followed by a one-day strike if the government fails to pay attention to their demands. According to the Union of Private Practitioners, the country will lack around 800 medical specialists and general practitioners by the year 2020. The union said that unless things change the whole network could collapse. It moreover points out that in supporting hospitals and neglecting small private practitioners the health ministry has been following the opposite trend of that in Western Europe where the authorities have recognised the importance of providing good and accessible outpatient care.

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On the 2 October 2017, transport workers went on strike in Manchester. First bus drivers went on strike to demand fair pay, after trade union Unite claimed that First reneged on standing agreements with the union. On the 3 October 2017 the rail workers of the trade union RTM took action. The rail companies plan to scrap train conductors from their services, which is causing safety concerns. Buying new rolling stock that does not require a conductor, is part of Northern Rails’ modernisation policy. The regional organiser for RMT said that employers wish to cut standards and cut safety to boost the profit of shareholders. Negotiations between Northern Rail and RMT have stalled.

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Public sector workers went on strike against President Macron’s plans to cull jobs and toughen pay conditions, forcing airlines to cancel hundreds of flights and disrupting school activities. It is the first time in a decade that all unions representing more than 5 million public workers have rallied behind a protest call. Strike notices were lodged in schools, hospitals, airports and government ministries over plans to cut 120,000 jobs, freeze pay and reduce sick leave compensation.

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