Collective Bargaining

Public sector unions mobilised for a series of demonstrations around the country in protest at the government's unilateral decision to cut ill-health early retirement pension rights for many public sector workers. On December 10 the trade unions demonstrated outside the finance ministry in Madrid and expressed their anger that the pension changes had been imposed, an action that clearly contravened the basic agreement that requires such changes to be negotiated. (See also this Collective Bargaining Newsletter Year 1 No. 9).
(English: http://www.epsu.org/cob/280; Spanish: http://www.fsap.ccoo.es/webfsap/menu.do?Actualidad:Sindical:Actualidad:40903)

The PCS civil service union has called off its national strike campaign in response to concessions by the government on a number of pay issues. In particular, the government has agreed that pay increases can be partly financed by efficiency savings although how this is implemented in practice will depend on the separate negotiations across the UK civil service's decentralised bargaining structure. The government has said that there is no longer a 2% pay cap on staff pay increases. There is also a commitment to address the significant differences in pay across government departments. The union emphasizes that the concessions do not mark the end of its campaign for fair pay. (See also this Collective Bargaining Newsletter Year 1 No.'s 6, 7 and 9).
(English: http://www.epsu.org/cob/280; http://www.pcs.org.uk/en/news_and_events/news_centre/index.cfm/id/B51C3238-C9C0-4881-8122A073DADA5CFC)

Trade union demands to re-open negotiations over National Health Service (NHS) pay have been rejected by the Pay Review Body, the independent organisation responsible for recommending NHS pay increases to the government. Unions had called for the three-year deal to be re-negotiated in the light of the 2.75% increase for 2008 that had been rapidly overtaken by inflation that reached 5% by the summer. The Unite trade union is still in dispute with the four health departments of the UK over the three-year agreement. It organised a day of industrial action on 3 December and is meeting on 12 January to discuss what further action might follow in 2009. (See also this Collective Bargaining Newsletter Year 1 No. 5).
(English: http://www.epsu.org/cob/280; http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=1308; http://www.amicustheunion.org/Default.aspx?page=9785)

According to press information in December a growing number of companies is taking recourse to short-time arrangements, notably to the official "Kurzarbeitsbeihilfe" or "Kurzarbeit" (short-time support) provided by the Arbeidsmarktservice (AMS). This support can be offered for maximum three months to employers, in case of cuts in wages because of shortening working hours, provided that these cuts are due to substantial and persistent disturbances of economic activities. The level of support is derived from the unemployment benefit level. In order to qualify for short-time support, companies need to agree with the relevant workers' representatives on compensation above that level.
The largest and most frequent calls upon the Kurzarbeit arrangement stem from the steel industry, notably from the Voest-Alpine conglomerate, and from subcontractors of the car industry, but also chemical and wood manufacturers call upon the arrangement. In answer to criticasters the Metal and Textile Workers Union (GMTN) and the Union for employees in private industry, journalists, printing and paper industry (GPA-djp) have recently defended the Kurzarbeit model, as a workable and clear-cut defense line against the phasing out of employment.
(German: http://www.ams.at/sfu/14087.html; http://portal.tt.com/tt/home/story.csp?cid=1012399&sid=57&fid=21; http://www.gpa-djp.at/servlet/ContentServer?pagename=GPA/Page/Index&n=GPA_0.a&cid=1228484918298)

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)