impact of the crisis on wages and collective bargaining across europe
DESCRIPTION
Impact of the Crisis on Wages and Collective Bargaining across Europe. ETUI Conference: Getting Europe back to work – alternatives to austerity Brussels, 06 November 2013 Dr. Torsten Müller / Dr. Magdalena Bernaciak European Trade Union Institute - ETUI. Structure of presentation. - PowerPoint PPT PresentationTRANSCRIPT
Impact of the Crisis on Wages and Collective Bargaining across Europe
ETUI Conference: Getting Europe back to work – alternatives to austerity
Brussels, 06 November 2013
Dr. Torsten Müller / Dr. Magdalena Bernaciak
European Trade Union Institute - ETUI
Structure of presentation
1. Role of wages in EU reform policy
2. Overview of quantitative wage developments
3. Overview of qualitative changes in collective bargaining structures and procedures
ETUI – Getting Europe back to Work; 06 November 2013
Wages as a key adjustment variable
Starting point: debt and cost competitiveness crisis
Remedy: Austerity policy and structural reforms
1.) Pay freezes and cuts in order to reduce public expenditure and consolidate state budgets
2.) Increasing downward flexibility of wages in order to reduce labour costs (“internal devaluation”) and improve (cost) competitiveness
ETUI – Getting Europe back to Work; 06 November 2013
Forms of political intervention into collective bargaining
1. New European System of Economic Governance: European Semester and its Country-Specific
Recommendations
2. Memorandum of Understanding and Stand-by Arrangements signed with “Troika” or IMF/EU
3. ECB intervention on sovereign bonds secondary markets
ETUI – Getting Europe back to Work; 06 November 2013
New European Wage Policy Interventionism (2011 – 2013)
ETUI – Getting Europe back to Work; 06 November 2013
Country-specific recommendations European Semester Troika / IMF
Moderate wage developments BG, FI (2012), IT, SL
Moderate minimum wage developments FR, SL
Freezes/cuts of minimum wage EL, IE, LV, PT, RO
Freezes/cuts of public sector wages EL, IE, HU, LV, PT, RO
Freezes of private sector wages EL
Higher wage dispersion at the lower end of the wage scale
SE
Wage developments in line with productivity DE, FI (2013)
Decentralisation of collective bargaining BE, ES, IT EL, PT, RO
Stricter rules for extension of ca EL, PT, RO
Reform/abolition of wage indexation BE, CY, LU, MT CY (since 2013)
Total 18 out of 28 countries received specific recommendations
Wage Cuts and Freezes in Public Sector
ETUI – Getting Europe back to Work; 06 November 2013
Troika/IMF countries
Other countries
General wage freeze (since 2009/2010)
EL, ES, IE, IT, CY, HU, PT, RO
CZ,DK, EE, F, LT, PL, SK, SL, UK
Pay cuts between 5% and 10% ES, IE, IT, PT CZ, EE, SL
Pay cuts between 15% and 30% EL, LV, HU, RO LT
Abolition of bonuses EL, ES, HU, PT, RO, LV
DK, EE
Wage developments in public administration
ETUI – Getting Europe back to Work; 06 November 2013
Source: DG Employment: Industrial Relations in Europe 2012, p.140
Development of real minimum wages during the crisis
ETUI – Getting Europe back to Work; 06 November 2013
-29.3
-6.5-5.7-5.5-4.0-3.3-2.3-1.8-1.3-0.6
0.70.80.82.63.9
10.1
15.416.419.2
23.9
-40
-30
-20
-10
0
10
20
30
ELCZPTESUKIEEENLMTBEFRROSKLULVPLLTHUBUSI
* Increase or decrease from 1 January 2010 to 1 January 2013Deflator of consumer pricesSource: WSI Minimum Wage Database 2013
Figure 1: Development of real national minimum wages, 2010-2012 in %*
Development of real wages in the EU 2010 – 2013 (%)*
Decentralization of collective bargaining systems in EU countries under EU, ECB and/or IMF surveillance
Measures: Affected countries
Abolition/termination of national collective agreements
Ireland, Romania
Facilitating derogation of firm-level agreements from sectoral agreements or legislative (minimum) provisions
Greece, Portugal, Hungary, Italy, Spain
General priority of company agreements/abolition of the favourability principle
Greece, Italy, Spain
More restrictive criteria for extension of collective agreements
Greece, Portugal, Romania
Reduction of the ‘after-effect’ of expired collective agreements
Greece, Spain
Possibilities to conclude company agreements by non-union group of employees
Greece, Hungary, Portugal, Romania, Spain
Individualisation of industrial relations
Country Change in the number of collective agreements (%)
Change in the number of workers covered by
collective agreements (%)
Spain - 43% -41%
Portugal -71% -84%
Latvia -35% -43%
Estonia -44% n.a.
ETUI – Getting Europe back to Work; 06 November 2013
Source: country reports and EIRO database. Note: Data for Spain and Portugal for 2008-2012, for Estonia and Latvia for 2007-2011.
Conclusions
● General trend towards deregulation already before the downturn
BUT● Crisis brings in a new tool: political intervention to CB
outcomes and processes => abrupt de-collectivisation and de-centralisation in “problem countries”; downward pressures on wages across the EU
● Continental “core” vs. southern and eastern “peripheries”
● Alternatives to wage competition?
ETUI – Getting Europe back to Work; 06 November 2013
Thank you very much for your attention!!!
Dr. Torsten MüllerDr. Magdalena Bernaciak
European Trade Union InstituteBld. du Roi Albert II, 5
1210 [email protected]
ETUI – Getting Europe back to Work; 06 November 2013
Impact of the crisis on wages and CB across Europe