Denmark
Background information on industrial relations in Denmark
- 28 Dec 1999
Denmark: Danish collective bargaining round 2000 has initiated<#PDF_LINK>Denmark's 2000 collective bargaining round opened formally on 28 November 1999, with the launch of talks over a new agreement for 40,000 shop assistants. The HK/Handel trade union wanted negotiations to conclude by Christmas, but the employers were in no hurry, and did not want the commerce sector to usurp the leading role in bargaining rounds traditionally taken by the industry sector.
- 28 Dec 1999
Denmark: Unibank employees accept pay reform<#PDF_LINK>Employees at the second-largest bank in Denmark, Unibank, have accepted a new pay system based on the individual job's degree of responsibility and functions. Some of the 10,000 or so employees will have to accept a minor decrease in real wages from 2002, while others' wages will increase by more than they would have done under the old seniority-based pay system. The new pay system means that all positions in the bank are being examined and divided into 250 job functions. The employees are critical on some points but generally satisfied.
- 28 Dec 1999
Denmark: Spectre of 1998 dispute looms over new bargaining round<#PDF_LINK>In late 1999, the 2000 Danish collective bargaining round is getting underway. There are good prospects of an amicable settlement, but the shadow of 1998's major industrial dispute still lingers, and this may be of importance for the course of bargaining. It is again the industrial sector which is to act as the front-runner in the bargaining round but, after the problems in 1998, there are limits to how long this sector's bargaining parties (DI and CO-Industri) can protract their bargaining. If a settlement is not reached by mid-January, complications may arise. The fear that trade union members might reject a proposed settlement may also add to the risk of an industrial dispute.
- 28 Dec 1999
Denmark: 1999 Annual Review for DENMARK<#PDF_LINK>This record reviews 1999's main developments in industrial relations in DENMARK
- 28 Nov 1999
Denmark: LO's welfare programme adopted by congress after stormy debate<#PDF_LINK>In late October 1999, the congress of Denmark's LO trade union confederation adopted - with many amendments - a draft proposal on welfare policy drawn up by the LO general secretary, Hans Jensen. Two unions voted against the proposal because they were unable to support its suggestions regarding the outsourcing of some areas of public welfare.
- 28 Nov 1999
Denmark: LO wins political mandate at congress<#PDF_LINK>Denmark's LO trade union confederation is set to return to a central position in Danish politics after 10 years of absence. Despite opposition and proposed amendments from major unions at its congress in October 1999, LO succeeded in having its welfare policy programme, "welfare requires commitment", adopted. Consequently, LO now has a mandate to enter direct political negotiations with the government concerning the shape of Denmark's future welfare society. The programme forms part of an LO strategy aimed at replacing the trade union movement's traditional defence of strict employee interests, with a more socially responsible approach.
- 28 Nov 1999
Denmark: Divided teachers' union holds congress<#PDF_LINK>The Danish Union of Teachers (DLF) held its congress in November 1999, following deep divisions over a recent collective agreement on working hours. However, the union's president Anni Herfort Andersen remained in office following a close contest with a rival candidate supported by opponents of the agreement, and has strengthened her position. In her report to the congress, Ms Herfort Andersen accused the Danish government, politicians and local authorities of not taking the primary and lower secondary school system seriously and of disclaiming responsibility for the quality of the schools. DLF wants to contribute to reversing this trend.
- 28 Oct 1999
Denmark: LO and DA agree stronger coordinating role in bargaining rounds<#PDF_LINK>In September 1999, Denmark's two main private sector social partner organisations, the LO trade union confederation and DA employers' confederation, concluded a framework agreement on bargaining procedure, the so-called "climate agreement". The aim is to help avoid a repetition of the major industrial dispute in spring 1998 when agreements are renegotiated in 2000. The agreement gives DA and LO a stronger coordinating role, but still leaves their member organisations to negotiate the collective agreements. One of the agreement's aims, bringing forward the start of negotiations, already appeared to be bearing fruit in October 1999.
- 28 Oct 1999
Denmark: New framework agreement can re-establish the influence of LO and DA<#PDF_LINK>A so-called climate agreement concluded in September 1999 by the LO trade union confederation and DA employers' confederation aims not only to improve bargaining procedures during the forthcoming 2000 private sector collective bargaining round, but also takes a more long-term political perspective. The agreement may prove to have historic significance, as the two confederations hope that it will enable them to recapture a substantial influence on the government's labour market and economic policy through a tripartite forum.
- 28 Oct 1999
Denmark: Innovative protest actions against public sector cutbacks<#PDF_LINK>September and October 1999 have seen protest actions against proposed budget cuts in areas of the Danish public sector, notably municipal funding for daycare centres and primary schools. As well as illegal stoppages by workers, the protests have included action by parents, with blockades of daycare centres in Copenhagen having the effect of industrial action but without involving loss of pay or possible fines for the workers concerned.
- 28 Oct 1999
Denmark: Little support for abolition of nurses' right to strike<#PDF_LINK>In October 1999, the labour affairs spokesperson of Denmark's Christian People's Party proposed abolishing the right to strike of some health sector workers, notably nurses. The proposal, based on a view that parliamentary intervention to end recent nurses' strikes effectively meant that they had lost their right to strike anyway, did not receive parliamentary support.
- 28 Oct 1999
Denmark: Construction unions criticises new rules on posting of workers<#PDF_LINK>In July 1999, the Danish Ministry of Labour proposed draft legislation aimed at transposing the 1996 EU Directive on posted workers. In October 1999, building and construction workers' unions criticised the proposal on the grounds of the "loophole" that Danish rules would not apply to construction workers posted to Denmark to carry out work for a private person.
- 28 Sep 1999
Denmark: LO report recommends that Denmark should join EMU<#PDF_LINK>A report on "Jobs and the single currency", published in September 1999 by Denmark's LO trade union confederation, recommends that Denmark should join the third stage of EU Economic and Monetary Union (EMU) and foresees that EMU could in the long term force a European harmonisation and coordination of collective bargaining demands, a development which has already started. The LO report will play a central part in the forthcoming debate about Denmark's participation in EMU. The report counters a number of claims from EMU sceptics, but even hardcore EMU supporters find it hard to face the fact that a "yes" to integration could mean a surrender of sovereignty.
- 28 Sep 1999
Denmark: Considerable discrepancies identified in state subsidies for training<#PDF_LINK>Danish companies have access to a particularly generous system of adult and further training courses and, in tripartite negotiations which begin in September 1999, the government and trade unions want to revise those parts of the state subsidised system that are thought to benefit individual companies more than society. The talks are based on a comprehensive government report which aims to help early school-leavers and strengthen courses which lead to qualifications. The negotiations may lead to a conflict with long-standing business interests.
- 28 Sep 1999
Denmark: Privatisation leads to disputes between unions<#PDF_LINK>Privatisation and contracting out of public services and a freeze on the employment of public servants have blurred the previous demarcation lines between Danish trade unions. Traditionally public sector union have begun to organise more private sector employees, causing discord and demarcation disputes in the LO confederation. Autumn 1999 saw new developments in areas such as postal services, bus transport and the railways.
- 28 Sep 1999
Denmark: Confederation of Danish Industries wants flexible working hours<#PDF_LINK>In September 1999, the Confederation of Danish Industries (DI) highlighted the eagerness of its member companies to make more use of working time flexibility. The industry sector's current collective agreement allows for the averaging out of weekly hours over a year, if this is agreed locally by management and employees. This requirement for a local agreement has contributed to the fact that only 15% of companies have introduced such a scheme, according to DI. CO-Industri, DI's trade union counterpart, disagrees.
- 28 Sep 1999
Denmark: LO and DA conclude anti-dispute agreement<#PDF_LINK>In September 1999, Denmark's DA employers' confederation and LO trade union confederation reached a framework agreement on the conduct of the 2000 collective bargaining round, with the aim of avoiding a repetition of the major dispute in 1998. The agreement, while maintaining the right of individual member organisations to decentralised negotiations, seeks to to support and coordinate developments. Meanwhile, the Minister of Labour has responded positively to a request from DA and LO to change the legal rules, in order to give the parties five days to renegotiate before a dispute breaks out, where a proposed settlement is rejected by their members, instead of the present three days.
- 28 Aug 1999
Denmark: Danish Union of Graphical Workers dissolves<#PDF_LINK>The Danish trade union movement lost yet another union when members of the Danish Union of Graphical Workers decided to dissolve the organisation in a ballot held in June 1999. This is the latest example of a union merger as a consequence of technological change. After the dissolution, the union's various member groups are being distributed between a number of organisations, with most of them going to the industrial division of the HK/Industri commercial and clerical workers' union and to the SiD general workers' union. Although it has been difficult to overhaul the structure of trade unions in Denmark, recent decades have seen an acceleration of change. During the past 25 years, the number of unions affiliated to the LO confederation has been halved, from 42 to 21.
- 28 Aug 1999
Denmark: September compromise marks 100th anniversary<#PDF_LINK>In September 1999, it is 100 years since the Danish Employers' Organisation (DA) and the Danish Confederation of Trade Unions (LO) signed the "September compromise", the first basic agreement regulating Danish industrial relations. As a consequence of the compromise, collective bargaining was centralised and a national system of dispute resolution introduced. The agreement was a result of a major lock-out initiated by employers with the aims of stopping the trade unions' decentralised industrial conflict strategy, and of cementing the employers' right to direct and divide the work. Although the deal can be seen as a strategic victory for employers, the institutionalisation of the bargaining system was, in the wider perspective, to the benefit of both parties. The model created by the compromise strengthened the central organisations, which were thus jointly able to ensure extensive influence over labour market legislation in particular and the development of the welfare state in general.
- 28 Aug 1999
Denmark: Retailers refuse to employ Muslim women wearing headscarves<#PDF_LINK>During summer 1999, in a high-profile case, the two largest Danish chains of supermarkets, FDB and Dansk Supermarked, stated that they did not wish to employ Muslim women wearing headscarves to work at check-out desks or other visible places in stores. They claim that headscarves are unhygienic and not compatible with their principles concerning uniforms. According to the minister of labour, this contravenes the law on discrimination.
- 28 Aug 1999
Denmark: LO wants new industrial relations structure<#PDF_LINK>It was reported in August 1999 that the LO trade union confederation wants to break with Denmark's 100-year-old tradition of the employers' right to direct and divide the work. This proposal - which takes a surprisingly offensive approach - has not yet been finalised by the LO executive committee. According to the reported proposal, LO seeks a revision of the basic agreement which determines the rules of the labour market.
- 28 Aug 1999
Denmark: Controversy over outsourcing of public tasks<#PDF_LINK>In August 1999, more than 400 Danish municipal healthcare employees in Frederiksborg county took unofficial strike action against efforts to outsource their work to private companies. They were angered by the proposed move, given earlier retrenchments and an agreement on further training to make the services concerned more efficient. The LO trade union confederation believes that the number of public tasks which are being put out for tender has been increasing excessively.
- 28 Jul 1999
Denmark: Employers propose reform of Danish model<#PDF_LINK>In June 1999, Denmark's largest single employers' association, the Confederation of Danish Industries (DI), made a proposal for changes to the Danish collective bargaining system in the light of the major private sector industrial dispute in 1998. DI wants the use of strikes and lock-outs to be very much the exception in the future, and seeks increased decentralisation of bargaining within simplified central sectoral framework agreements, such as that between DI and its trade union counterpart, CO-Industri. DI's aim is that all the provisions of sectoral agreements could be set aside through local agreements, prevailing only if the enterprise-level parties could not agree on anything else. CO-Industri met the proposal with scepticism.
- 28 Jul 1999
Denmark: Danish unions out of step with European trade union movement?<#PDF_LINK>It appears that Danish trade union confederations are following a path which differs partly from that which was determined at the European Trade Union Confederation (ETUC) congress in July 1999. The differences relate both to procedural and substantive issues. While many of the prominent union confederations in ETUC, notably from the UK and Germany, prefer to promote the interests of the employees by means of EU legislation, Danish unions prefer an agreement-based model. Furthermore, although a large majority in the ETUC is in favour of a 32-hour working week as a major employment-promoting demand, this is regarded as an obsolete demand in Denmark, which is currently experiencing almost a shortage of labour.
- 28 Jul 1999
Denmark: Midwives approve agreement at third attempt<#PDF_LINK>In July 1999, at the third attempt and following four weeks of strike action, Danish midwives accepted a proposal for a new collective agreement. At the same time, a proposed agreement was struck for bioanalysts and, if this proposal is accepted by union members, the 1999 public sector bargaining round will be complete.
- 28 Jul 1999
Denmark: Smaller LO member unions demand more influence<#PDF_LINK>Prior to the congress of the Danish Confederation of Trade Unions (LO) in autumn 1999, several smaller member unions are demanding more influence in the executive committee. Presently, only 13 of LO's 22 affiliated national unions are represented on the executive.
- 28 Jul 1999
Denmark: Supreme Court rules in favour of closed-shop agreements<#PDF_LINK>In June 1999, Denmark's Supreme Court rejected claims that it should be illegal to conclude closed-shop agreements. This ruling was even clearer on the right to sign such agreements than the Court's judgment in a similar case earlier in 1999.
- 28 Jun 1999
Denmark: Social partners consider advantages and disadvantages of the euro<#PDF_LINK>Denmark is not participating in the third stage of EU Economic and Monetary Union (EMU), as a consequence of its initial "no" vote on the Maastricht Treaty in a 1992 referendum. It was only after the Treaty had been amended, including the exclusion of Denmark from the third stage of EMU, that a majority "yes" vote was obtained in 1993. Since then, and in particular since the introduction of the euro single currency in January 1999, it has been argued with increasing intensity by employers' organisations, but also several of the large trade unions, that Denmark should give up its reservations, especially regarding the third stage of EMU. However, it has not yet been settled when, or if, there will be a new referendum on Denmark joining the euro.
- 28 Jun 1999
Denmark: New research on flexibility and HRM in Danish companies<#PDF_LINK>New research published in 1999 suggests that Danish enterprises have not introduced new work organisation methods such as human resource management in order to circumvent trade unions and shop stewards, but that, on the contrary, managers regard shop stewards and trade unions as important partners in the implementation of new work organisation. Companies typically want new work organisation in order to achieve greater flexibility but the study, which examines five industrial enterprises, indicates that it is critical to realise both what the management means by flexibility and what the consequences of one form of flexibility being given higher priority are for other forms of flexibility.
- 28 Jun 1999
Denmark: Overall working time must increase to ensure future economic growth<#PDF_LINK>Average working time in Denmark has been reduced during the past 50 years, while the labour market participation rate over the same period has increased sufficiently to create only a slight growth in GDP. It will therefore be necessary in future to increase the number of working hours or the participation rate in order to ensure continued economic growth, concludes the DA employers' confederation in its annual labour market report for 1999.
- 28 Jun 1999
Denmark: Government target of 40,000 flexi-jobs almost achieved<#PDF_LINK>The Danish government has set a target of creating 40,000 "flexi-jobs" - jobs on special terms for people with a disability, illness or reduced ability to work - before 2005. In mid-1999, a total of 36,500 people are employed on such terms, of whom 16,000 are employed in informal, sheltered jobs without public subsidy. The LO trade union confederation fears that the success of the scheme will halt the creation of sheltered jobs unless the target number is increased.
- 28 Jun 1999
Denmark: Social Democrats propose obligatory supplementary training funds<#PDF_LINK>In June 1999, the Social Democrats - the largest party in Denmark's coalition government - suggested the creation by companies of obligatory supplementary training funds. The idea has met opposition from employers, which call it an attack on the collective agreement system and on managerial rights. Trade unions have sympathy with the idea, but fear that the extra expense for employers may become a factor in future collective bargaining rounds.
- 28 May 1999
Denmark: Judicial decisions strengthen hand of established trade unions<#PDF_LINK>Denmark's "alternative" trade unions have won a battle, but the established, traditional unions have won the war. Such was the interpretation placed on two important judicial decisions handed down on 6 May 1999 by the Supreme Court and Labour Court in cases involving the largest alternative union, the Christian Trade Union (DFK). The cases centred around the right of established unions to sign closed-shop agreements and to take industrial action against companies which already have an agreement with DKF.
- 28 May 1999
Denmark: Company pay bargaining increases in importance<#PDF_LINK>Pay bargaining in the area covered by the Danish Federation of Trade Unions (LO) and the Danish Employers' Federation (DA) is moving towards the company level, according to an analysis published by DA in 1999. In 1999, two-thirds of the annual increase in pay costs arose from company-level bargaining, compared with little more than a half 10 years previously.
- 28 May 1999
Denmark: New agreement seeks to end teachers' dispute<#PDF_LINK>Following the rejection of a new collective agreement by a small majority of the members of the Danish Union of Teachers in April 1999, negotiations conducted with the assistance of the public conciliation service led to a revised agreement on the night before industrial action was due to start on 19 May. The teachers had rejected the initial deal because of a new working hours system which they saw as providing too few preparation hours compared with teaching hours. The revised agreement guarantees more preparation hours to those teachers who have particularly high teaching hours. The dispute was postponed until the result of a new ballot was available on 3 June.
- 28 May 1999
Denmark: Political intervention ends nurses' dispute<#PDF_LINK>In April 1999, the members of the Danish Nurses' Organisation (DSR) rejected the new collective agreement for the county and municipal sector, owing to dissatisfaction with the pay increases involved. When subsequent efforts at concilation failed, an industrial dispute started on 13 May. Within a week, the government decided to introduce a bill to put an end to the dispute by giving legislative status to the rejected agreement. The bill was passed by parliament on 21 May.
- 28 Apr 1999
Denmark: Bill aims to amend rules on non-competition clauses<#PDF_LINK>In February 1999, the Danish Ministry of Labour tabled a bill aimed at restricting the use of non-competition clauses in contracts of employment, on the grounds that they inhibit labour market mobility. The proposal seeks to specify the right to compensation where clauses are applied. The hope is that the changes will result in a reduction in the use of these clauses so that they cover only those employees for whom they were originally intended - ie specially entrusted salaried employees. Trade unions have criticised the bill for (among other things) not being extensive enough, while employers claim that it is too wide in application.
- 28 Apr 1999
Denmark: Nurses and teachers reject new three-year agreements<#PDF_LINK>In April 1999, Danish nurses and the teachers turned down new three-year collective agreements, which had been negotiated as part of a joint settlement for local authority employees. The nurses want more pay and the teachers want to change working time rules.
- 28 Apr 1999
Denmark: Pay mobility is high among lowest-paid workers<#PDF_LINK>In April 1999, the Danish Employers' Confederation (DA) published an analysis of pay mobility among the employees of its member companies. The research found that 83% of employees who were in the lowest-paid 10% of the workforce in 1994 had moved into a higher-paid group by 1997. For DA, this shows that stable attachment to the labour market results in faster pay increases for the lowest paid. It is claimed that these results also demonstrate that there is no need to fear relaxation of minimum pay rates for groups such as young employees: as long as they learn something in their work and obtain job experience they will soon receive more pay.
- 28 Mar 1999
Denmark: New pay settlements take decentralised approach<#PDF_LINK>Flexibility was the key word in the collective pay agreements concluded between January and March 1999 in Denmark's public sector, finance sector and independent baking sector. Agreements were reached for around 1 million workers, the main results being extra holidays, more flexible working hours and continued rises in real earnings. One important aspect is a tendency towards decentralisation, with decisions on pay, working hours and arrangements for the additional holidays being deferred to local negotiations and decisions, within the central frameworks set out in the national agreements. The final fate of the settlements will be decided in membership ballots due to be concluded during April.
- 28 Mar 1999
Denmark: Compulsory activation measures for older unemployed criticised<#PDF_LINK>From the beginning of 1999, unemployed people in Denmark aged over 50 must accept labour market "activation" measures (employment or training), or lose their benefits. However, some local representatives of the social partners believe that the new rules have no effect on older unemployed people, or even a negative effect. They believe that the view of politicians and the LO trade union confederation that forced activation finds employment for the older unemployed is wrong, with stress and humiliation a more likely outcome.
- 28 Mar 1999
Denmark: Employees would vote in favour of the euro<#PDF_LINK>According to a survey conducted for the LO trade union confederation in early 1999, 58% of Danish employees would vote in favour of the euro single currency, mainly because of economic advantages and influence on joint European politics. Fear of ceding sovereignty is the main reason why 33% of employees would vote against.
- 28 Mar 1999
Denmark: LO and DA seek active role in integrating ethnic minorities into labour market<#PDF_LINK>Denmark's DA employers' confederation and LO trade union confederation announced in March 1999 that they would extend their Cooperation Agreement, in order to place ethnic equality on the same footing as gender equality in the work of company-level cooperation committees.
- 28 Feb 1999
Denmark: Agriculture and forestry heading for sixth week of annual leave<#PDF_LINK>New two-year collective agreements were concluded in January 1999 for Denmark's agriculture and forestry sector, including horticulture, the dairy industry and abattoirs. The outcomes were similar to the provisions of the government's intervention to end the main private sector collective bargaining round in spring 1998, with three additional days off per year and a total rise in costs of 7.5% over the two years. Two main bargaining areas remained to be settled in early 1999 - the public sector and the finance sector.
- 28 Feb 1999
Denmark: Early retirement scheme finally concluded<#PDF_LINK>A revised early retirement scheme is due to come into force in Denmark in 1999, which includes specific employee contributions towards the scheme. Following trade union pressure, the Minister of Labour has announced that the Constitution guarantees that all such early retirement payments will be refunded if the scheme is abolished in the future. While this should clear the main obstacles to parliamentary approval of the changes, some unanswered questions remain.
- 28 Feb 1999
Denmark: New Working Environment Council established<#PDF_LINK>As of January 1999, Denmark's Working Environment Council has been reformed and given a different role, while 11 new branch working environment councils have been created.
- 28 Feb 1999
Denmark: Strong demand for training places<#PDF_LINK>According to the LO trade union confederation, there is an immediate need for around 8,500 training places in Denmark in early 1999. This is seen as a significant problem, since many young people never acquire skills, and the situation could lead to future shortages of qualified labour.
- 28 Jan 1999
Denmark: Less agreement on link between pay and competitiveness<#PDF_LINK>Support for the pay restraint policies which have characterised collective bargaining in Denmark since November 1987 is falling away. This is the conclusion of a survey, published in late 1998, of employees' attitude to the question of whether pay rises create unemployment by destroying competitiveness. The finding raises questions such as: Can pay trends be kept under control, or will Denmark return to the situation of the mid-1980s, when pay increased in an uncontrolled way, ushering in many years of high unemployment? And is a new tripartite agreement required between the Government and the social partners?
- 28 Jan 1999
Denmark: Danes need to work longer, says Ministry<#PDF_LINK>In January 1999, the Danish Finance Ministry published an analysis which indicates that the existing level of social provision can be maintained in the coming decades only by Danes working longer, or else by increased taxation. One solution proposed by the Ministry would be the abolition of compulsory time off in lieu for overtime and the introduction of a new right to receive pay for holidays not taken. These ideas have been rejected by trade unions, though without closing the door totally.
- 28 Jan 1999
Denmark: Breakthrough in agriculture and forestry pay negotiations<#PDF_LINK>Denmark's first major collective pay settlement for 1999 was concluded on 17 January. Some 20,000 employees in agriculture, forestry and horticulture are to receive three additional days off per year, expanded pension schemes and wage rises. The outcomes are similar to the provisions of the government's intervention to end the main private sector collective bargaining round in spring 1998.
- 28 Jan 1999
Denmark: Working environment most important task for unions<#PDF_LINK>In early 1999, for the second year running, Denmark's LO trade union confederation published the results of an attitude survey of members' priorities for union activity. Once again at the top of the list are work to improve the working environment and continued efforts to counter unemployment. In this context, pay and longer holidays are relegated to a lower position
- 28 Jan 1999
Denmark: Rulings clarify time off for care of children<#PDF_LINK>The "time off for children" scheme, introduced as part of Danish government's intervention to settle the private sector collective bargaining round in May 1998, has given rise to many employment law cases. Recent employment tribunal decisions - including an arbitration award in January 1999 - have made the time off more expensive, according to employers.