Although neither Cypriot employers' associations nor trade unions follow a clear formula when calculating wage demands, their calculations go back to two basics: labour productivity and implementation of the system of pay indexation. Recently, in discussing the renewal of the 178 collective agreements due to expire in late 2007 / early 2008, the Pancyprian Federation of Labour (PEO) and the Cyprus Workers' Confederation (SEK) decided to demand increases that would outstrip productivity. In particular SEK mentioned several reasons for such wage increases: the robust situation of the Cypriot economy, characterized by an adequate growth rate; unemployment, which has remained under control at low levels; controlled inflation, despite the recent upsurge in inflationary pressures. PEO also highlights the need for the convergence of wages in Cyprus with wage levels in the more advanced countries of the former EU15. This new basis for wage demands runs counter to both the employers' and government's official positions.
(English: http://www.eurofound.europa.eu/eiro/2007/12/articles/cy0712019i.htm)
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Public service unions have been forced to mobilise their members once again in order to secure the pay increases they negotiated for their members for the years 2006-2007. The public sector pay agreements are re-negotiated every two years, although often with long delays. The various agreements on pay for 2006-2007 for public sector workers for were finally signed in May 2007 but have still not been implemented. A national mobilisation campaign of workers in local and regional government was called for 28 January, while health workers will demonstrate on 4 February.
(English: http://www.epsu.org/spip/cob.php3?id_mot=245; Italian: http://www.fpcgil.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/5381 and http://www.fpcgil.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/5400)
In a joint declaration as of January 25, public service federations (CGT - FO - FSU - CFDT - CFTC - UNSA - Solidaires) stated to be delighted by the level of support across the country for strikes and demonstrations over pay and collective bargaining of the day before. They emphasized that hundreds of thousands expressed their dissatisfaction over wages and employment in the public sector. In response the government has offered to meet for talks on 18 February. Yet, unions are also concerned that at the same time the government is talking about restricting the right to strike in the education sector. They want proper negotiations to begin in the first week of February and are calling on members to maintain pressure on the government through local actions and in particular during the "week for public services" organized by the government between 1 and 8 February.
(English: http://www.epsu.org/spip/cob.php3?id_mot=245; French: http://www.spterritoriaux.cgt.fr/spip.php?article2144)
The FSP-UGT and FSAP-CCOO public service federations have secured a minimum Euro 1,000-a-month salary for workers on pay band 5 in the general state administration. The lowest annual salary (14 monthly payments) will now be Euro 14,000, an increase of 13.8% and significantly higher than the 5.41% and 6.30% increases for workers on the higher scales 1, 2, 3 and 4.
(English: http://www.epsu.org/spip/cob.php3?id_mot=245; Spanish: http://www.fsap.ccoo.es/webfsap/menu.do?Actualidad:Sindical:Actualidad:16787; http://www.fspugt.es/index.php/mod.noticias/mem.detalle/idnoticia.2880/idimagen.913/relcategoria.7)
In December 2007, the bargaining committee of services union ver.di voted to submit an 8% pay claim in the negotiations with employers in local and central government, covering in total over 1.3 million employees. The union argues that the pay of public sector workers has been eroded by inflation, particularly higher prices for energy, housing and food and this has hit lower paid workers above all. The union is also claiming a minimum Euro 200 increase. Ver.di wants the pay agreement to run for 12 months. The last agreement ran 27 months, from October 2005 to December 2007.
Following a second round of pay negotiations, ver.di has rejected the government employers' latest offer. The employers claim the deal is the equivalent of a 5% increase on pay, but ver.di argues that in fact by the end of 2009 workers would be worse off than they are today. The employers want a two-year deal with increases of 2.5% from 1 February 2008, 1.0% from 1 October 2008 and 0.5% from 1 March 2009. A further 0.5% in each year would be performance-related and so not available to all workers. The union also criticizes the offer because employers are demanding an increase in working hours to 39.5 a week from 1 July 2008 and then to 40 hours a week from 1 January 2009. In that way, ver.di argues, the workers are effectively financing the deal.
(English: http://www.epsu.org/spip/cob.php3?id_mot=244; http://www.epsu.org/spip/cob.php3?id_mot=245;
German: www.verdi.de/nachrichten)
The three unions affiliated with the major confederations, FNV Bondgenoten, CNV Dienstenbond and De Unie, and the employers' association `ICT' have agreed upon a basic agreement in information, communication and office technology. The agreement will be in force from January 1, 2008, till January 1, 2010. The agreement provides pay increases of twice 3%. Remarkable is the fact that the Minister of Social Affairs and Employment is not willing to declare this collective agreement mandatory extended, as he judges the employers' association not fully representative.
(Dutch: www.ictoffice.nl/index.html; www.computable.nl/news)
At the end of 2007, a new sectoral collective agreement was concluded in Estonian road transport, after intense negotiations and just before the unions were about to announce strike action. Partners in the agreement are the Union of Estonian Automobile Enterprises and the Estonian Transport and Road Workers' Trade Union (ETTA). The new agreement took effect on 1 February 2008 and is valid until 31 December 2009. This is one of the two sectoral collective agreements currently valid in Estonia.
The new collective agreement provides for increases in the minimum monthly wages effective from 1 February 2008. In the case of standard working hours, bus drivers and highly qualified repair mechanics will earn a minimum monthly amount of EEK 7,060 (?451), drivers EEK 6,560 (?419), and unskilled repair workers EEK 5,470 (?350). Minimum wages will be increased further on 1 January 2009, for which agreement has to be reached by 1 October 2008. Yet, according to ETTA, the agreement affects mainly bus drivers working outside the capital city Tallinn, by increasing their monthly wages by EEK 1,500 to EEK 2,000 (?96 to €128). ETTA declared that the agreement on the minimum wage levels will hopefully help to reduce the share of undeclared work in the sector, thereby promoting fairer competition.
(English: http://www.eurofound.europa.eu/eiro/2008/01/articles/ee0801019i.htm)
Bulgarian trade unions threatened to call a general strike in spring if the country's parliament passes a controversial amendment bill that would severely curtail the unions' rights to strike. The threat came from the chairman of KNSB, one of Bulgaria's two union confederations after a meeting with labour ministry officials and representatives of the Socialist party, the senior partner in the ruling coalition, and was supported by the chairman of the other major confederation, Podkrepa.
Te amendments, authored by four Socialist MPs, would severely curtail unions' power to call strikes, requiring all labour disputes to go through an arbitration court with the labour ministry. The two confederations are demanding new legislation to establish the right to bargain collectively and to go on strike in compliance to international labour standards.
(English: Watson Wyatt Data Services, New Industrial Relations Europe, 1/2008; http://www.novinite.com/view_news.php?id=89185)
At the end of 2008 the PCS civil service union secured a framework agreement with the government that allowed efficiency savings to be taken into account in pay negotiations across the civil service. However, the union is keenly aware that the agreement is only the beginning of the process and the challenge now is to monitor what takes place at local level to determine whether individual ministries, agencies and other employers shift their bargaining positions accordingly. The union has decided to organise a round of regional campaign forums during January 2009, to discuss the national agreement and consider the next stage of the union campaign (See also this Collective Bargaining Newsletter Year 1 No.'s 6, 7, 9 and 10).
(English: http://www.epsu.org/cob/281; http://www.pcs.org.uk/en/news_and_events/news_centre/index.cfm/id/B51C3238-C9C0-4881-8122A073DADA5CFC)
On November 24 the three Lithuanian union confederations ((Lithuanian Labour Federation, Trade Union Confederation Solidarumas, and Lithuanian Trade Union Confederation) together with non-governmental organisations organized a major demonstration over pay and against the increasing consumer prices. The demonstration called for a significant increase in the national minimum wage (NMW) and for the government to adopt a target for the NMW to be increased to the equivalent of 60% of national average wages. It also called on the parliament of Lithuania to pass the law on wages indexation. Some of the main mottos for the action were: ,European prices - European wages" ,We do not want to beg, we want to have European wages".
Obviously the union pressure has had its impact. Following a recommendation from the Labour Ministry, the government has implemented a 14.3% increase in the national minimum monthly wage from 1 January 2008, three months earlier than originally scheduled and six months earlier than normal. The new monthly rate is LTL 800 (Euro 232).
(English: http://www.epsu.org/spip/cob.php3?id_mot=244; www.ldf.lt/index.php?cid=935; Watson Wyatt Data Services, New Industrial Relations Europe, 1/2008)