Collective Bargaining

Prime minister Ivo Sanader has abandoned the idea of a total freeze on pay increases in both the private and public sectors as part of the nation's response to the global economic crisis, an idea that he floated mid-November. Instead, the government has been seeking to defer a previously agreed 6% rise in public-sector pay due on 1 January 2009. Government negotiators offered public sector unions a succession of formulae under which the award would be met only in part. However, the unions continued to insist it to be delivered in full. Finally, the government gave in; instead it slashed expenditures for a costly public health reform and also reduced some infrastructural investments. (See also this Collective Bargaining Newsletter Year 1 No. 9).
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 12/2008; http://balkaninsight.com/en/main/news/15578)

After in October FNV, the main trade union confederation, had announced a maximum wage demand of 3.5%, in mid-December CNV, the second largest confederation, made about the same announcement. Though recently inflation in 2009 is expected to go down to about 1.5%, both confederations judge a 3.5% hike defendable for a number of sectors. Negotiators of the two confederations point to the possibility of concluding short-term collective agreements, like the recent half-year agreement at steel producer Corus.
At the year-end, the Ministry of Social Affairs and Employment reported for 2008 an average increase of the collectively agreed wages of 3.2%, varying from 2.5% in agriculture and fishing to 3.7% in commercial services.
(Dutch: De Volkskrant, 16 December 2008; information Ministry of Social Affairs and Employment)

It has been reported that OZ KOVO, the Metal Trade Union Association, has lowered its wage demand for the leading engineering industry collective agreement. The union actually says it will seek wage increases at least in line with price inflation, which was running at 5.3% in the third quarter of 2008. Yet, OZ KOVO will not quantify its demand precisely before the conclusion of current discussions with employers on the economic and financial conditions affecting wage negotiations.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 12/2008)

In early December the leaders of the Pergam, Neodvisnost and KS 90 unions made a plea for improvements in the social dialogue from Prime Minister Borut Pahor's newly installed centre-left coalition government. They also wanted a moratorium on lay-offs until the direction in which the administration's policies are heading becomes clear. The union leaders urged for caution over a proposal to reduce employer social contributions temporarily as a way of combating the current economic crisis, and said that the state should make up any reduction in wages as more and more companies resort to short-time.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 12/2008; http://www.ukom.gov.si/eng/slovenia/publications/slovenia-news/7684/7723/index.text.html)

In discussions with employers' associations and trade union confederations on the 2009 budget, the government has stuck to its plan for an 8.3% increase in the national minimum wage from 1 January 2009, taking it to BGN 240 (Euro 120) per month. Earlier, the CITUB and Podkrepa union confederations had called for a 18.2% hike. (See also this Collective Bargaining Newsletter Year 1 No.'s 7, 8 and 9).
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 12/2008)

Unite members will be lobbying the London Mayor, Boris Johnson to coincide with Mayor's Question Time (Wednesday 17 December) in an ongoing campaign to win equal pay and safe working hours for all London bus workers. This follows a series of strikes earlier in the year. Unite, the UK's biggest transport union, has also learnt that TfL Surface Transport spent UKP 16 million less than budget in the year to date largely because of lower bus network contract prices. According to the union, this money would go a long way towards settling this ongoing dispute and averting further strike action. Peter Kavanagh, Unite officer, said: "Our members do identical jobs but their pay varies significantly from company to company. We are demanding equality in pay for all London bus workers and we will be taking our message to Mayor Boris so our members' demands are heard". Unite is seeking UKP 30,000 (Euro 33,560) yearly for a 38 hours week, 10 hour maximum spread over and a 4.5 hour maximum spell.
(English: http://www.amicustheunion.org/Default.aspx?page=9749)

UK unions have rejected a plan for a 10% across-the-board pay cut at Corus as the steel giant tries to adapt to the global crisis. In London officials from the three unions that represent Corus workers - Community, Unite and the GMB - met to discuss the company's prospects. Corus itself said it had been discussing various options with the unions: "In the short term, payroll reductions and specific government support for temporary unemployment could be of great assistance to address the current market conditions." The union representatives strongly denied proposing a 10% cut in wages in return for saving 1,000 jobs and preventing Corus's Llanwern plant in Wales from closing. A joint union statement said: "The company's proposals for a 10% pay cut were part of a range of options which have been so far rejected by the unions. Before we reach any agreement on the future of the 25,000 UK employees, the unions are demanding that Corus makes clear its intentions for 2009". Corus, the Anglo-Dutch subsidiary of the Indian Tata conglomerate, has already announced to reduce its European output by 30% by March 2009.
(English: http://www.walesonline.co.uk/news/wales-news/2008/12/12/unions-reject-corus-10-pay-cut-plan-91466-22459970/; http://www.guardian.co.uk/business/2008/dec/12/manufacturing-tradeunions via http://www.labourstart.org/cgi-bin/show_news.pl?country=UK)

In the next round of collective bargaining the 13 members of the Finnish Council of Industrial Trade Unions intend to strengthen their mutual cooperation. The council, representing 750,000 workers organised in unions from the three confederations, SAK, STTK and Akava, decided to approve common goals and coordinate their actions more closely. This decision reflects to the new situation created by the Confederation of Finnish Industries (EK), that no longer supports the model of comprehensive income policy successfully applied in Finland since the late 1960s. According to EK, this model does not leave enough space for company and local level collective bargaining. (See also this Collective Bargaining Newsletter Year 1 No. 5).
(English: http://www.union.ee/index.php?id=20&uudis=3072)

The SNTCT and SINTTAV unions are continuing their struggle for their demands to be met in negotiations for their collective agreement with the Portuguese Postal company, CTT Correios. This struggle has been going on for many months now and SNTCT is actually involved in another 4 day strike to try and get CTT Correios back to the bargaining table. CTT Correios have also been making demands on the union that have made it extremely difficult for the latter to continue its day to day activities, such as insisting that union officials who are employed by CTT Correios are at their workplaces all the time instead of having time off for union activities that they have previously been entitled to under the "allegedly" now expired collective agreement.
(English: http://www.uniglobalunion.org/UNIPostal.nsf/0/A503220FA7FD1BC6C1257515004D58F9?OpenDocument)

Finnair has announced plans to temporarily lay off up to 1,700 cabin stewards and air hostesses next year to cut costs. The staggered layoffs, mostly in April and May 2009, will last about two weeks, airline spokeswoman Kati Lehesmaa said. The measures are aimed at saving some Euro 25 million, she said. "We don't know exactly how many staff it will affect but many are prepared to take a holiday in the spring and some will retire," Lehesmaa said. The Finnish national carrier is also engaged in wage negotiations with the company's 750 pilots and will decide on possible temporary layoffs for pilots after the talks are over. Last September, Finnair employees rejected proposals by the management for voluntary wage cuts to avoid cutting 400 jobs in the airline, which has been struggling with high fuel costs and heavy competition. It then said it was seeking ways to make savings of some Euro 50 million.
(English: http://asia.news.yahoo.com/081202/ap/d94qk7n80.html)