Collective Bargaining

PCS, the main civil service union, is balloting 270,000 members over industrial action on pay and the government' s imposition of a 2% limit on public sector pay increases. PCS holds that anger has grown over the government's policy which is disproportionately hitting some of the lowest paid in the public sector. In the strike ballot running to 17 October, members will be asked to back plans for a national civil service wide strike followed by a rolling programme of targeted industrial action that will extend into the new year.
(English: http://www.epsu.org/cob/269;
http://www.pcs.org.uk/en/news_and_events/news_centre/index.cfm/id/E34196E5-329F-466A-96D89821B57A2D32)

On 9 September, the UNI global union signed a global agreement with the Danish-based finance multinational Danske Bank, covering 24,000 workers. The agreement -negotiated by UNI Finance president Allan Bang with the help of six unions in Denmark, Finland, Ireland, Norway and Sweden- recognizes the competitive benefits for the company of good relations with trade unions and guarantees labour rights for workers worldwide. Dialogue is a key union priority in managing change, and Danske Bank commits itself to integrating employment and social consequences into strategic decisions and to use internal mobility measures to avoid or limit lay-offs.
(English: http://www.uniglobalunion.org/unifinance.nsf/$webDocuments/A6EF6A66FD2A816FC12574BF004F3731?OpenDocument)

In December 2007, most unions and the major employers' association ActiZ (350,000 employees) agreed on a basic accord in the so-called VVT sector (elderly and care homes, home care). However, the BTN employers' association (13,000 employees, only in home care) and the CNV Publieke Zaak union did not sign this basic agreement, which meant that the `old' home care agreement remained applicable until 1 October 2008. Recently, BTN and CNV Publieke Zaak arranged to produce a second home care agreement. According to the largest union, ABVAKABO FNV, this second agreement includes a number of deteriorations compared to the earlier VVT agreement, like a 1% lower wage increase. Therefore, ABVAKABO FNV refuses to sign the second agreement, and will try to have the VVT agreement mandatory extended.
(Dutch: http://www.abvakabofnv.nl/cao/bericht/abvakabo_fnv_ondertekent_tweede_cao_thuiszorg_niet/)

After a year of negotiations, the Metal Workers' Trade Union of Croatia concluded a collective agreement with Alstom Hrvatska, securing wage rises for all 678 workers. The agreement sets the lowest contractual wage at this subsidiary of the transnational Alstom group at 4,050 Kuna gross, about Euro 560. It is agreed that wages will increase annually based on inflation rates and will include an extra increase depending on productivity in the previous year. In addition, workers will receive 1% annual increase for each year of service, which is applied as of 1 April, 2008.
(English: http://www.imfmetal.org/main/index.cfm?n=47&1=2&c=18120)

The major Czech-Moravian Confederation of Trade Unions (CMKOS) has indicated that it will be seeking wage settlements resulting in a 4% increase in real earnings for 2009. The target implies nominal wage increase of about 10%, according to current forecasts.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 8/2008)

The national minimum wage is due to go up by 9% to BGN 240 (Euro 120) a month from 1 January 2009 under the terms of next year's draft budget, presented by the government to employers' associations and trade unions for their comments. The package also envisages a possible new approach to public sector pay increases, with a 10% increase in over-all wages rather than across-the-board rises for individuals. That will allow awards scheduled for 1 July 2009 to be linked more closely to personal performance. The government proposes a net cut in total social insurance charges of 2.4%-points, with reductions in employer contributions to the wage guarantee fund and to pensions, and an increase in the combined healthcare contribution from 6% to 8%. The draft forecasts economic growth in 2009 of 6.5% and inflation of 4.2%.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 8/2008)

The government is due to finalize its draft budget for 2009 shortly and will include cuts in personal income tax in an attempt to sustain economic growth at around 2%. However, at least part of the reductions will be dependent on the outcome of collective bargaining to take place towards the end of 2009, a ploy traditionally used to encourage moderate settlements in central wage agreements. This has led to speculation that ministers want a new \central deal when the pay provisions in current sector-level accords come up for review. The return to centralized pay norms is controversial. The main employer federation EK has more or less ruled out such a return. The SAK union federation might prefer to go back to the old approach, but its affiliates and other union federations appear content with the results of the sector-level agreements. These ended up in average pay rises for 2008 of about 4.2%, still ahead of price inflation, just over 4% in June.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 8/2008)

Our last message on the issue of the Romanian national minimum wage, stating that the first planned uplift of the minimum wage of 8%, to RON 540 (Euro 159) a month, seemed likely to be effected from 1 July 2008, was obviously too optimistic. This is now to take place on 1 October 2008. The second uplift, to RON 600 (Euro 167) is scheduled for 1 January 2009 (See also this Collective Bargaining Newsletter Year 1 No. 6).
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 8/2008)

Recently passed legislation establishing a default formula for calculating rises in the national minimum wage, looks likely to come into play for the first time, as social partners did not agree on the size of the uplift due on 1 January 2009. Under the formula, the increase will be 7.3%, taking the rate to SKK 8,690 (Euro 263) a month. The government will seek the approval of the social partners, but will impose it if that is not forthcoming. In July, the unions have demanded a hike of nearly 10%, to SKK 8,900 (See also this Collective Bargaining Newsletter Year 1 No. 6).
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 8/2008)

The POEM union administration concluded, after a period of tough bargaining, four collective agreements in the metal industry implying substantial wage rises from 1 January 2008 till 31 December 2009, with cumulative increase varying from 13.43% to 14.04%. These increases are mostly composed by increases of 3% per 1 January of both years and 3.5% per 1 July of both years. POEM notes that these agreements apply to the minimum salaries, and that the affiliated unions retain the right to right to further improve wages through company agreements.
(English: European Metalworkers' Federation, message to members EUCOBAN network)