Denmark
Background information on industrial relations in Denmark
- 18 Dec 2002
Denmark: LO makes proposal on resolving demarcation disputes<#PDF_LINK>In November 2002, the Confederation of Danish Trade Unions (LO) issued proposals for the resolution of demarcation disputes among its member unions, which are a persistent problem. It proposes a new negotiation and conciliation process between the unions in dispute, including the possibility of membership ballots among the workers concerned, plus heavy fines for unions failing to comply with decisions. This initiative is part of an overall modernisation of LO, but has met with differing responses from member unions.
- 18 Dec 2002
Denmark: Debate over role of agreements and legislation in labour market regulation<#PDF_LINK>In autumn 2002, the presidency of Denmark's Economic Council published an analysis of the Danish model of labour market regulation. It found that regulation in the form of collective bargaining, which is a characteristic feature of the Danish industrial relations system, in under pressure - due, among other factors, to globalisation and the single European market. However, other studies find that the current bargaining-based model actually has a positive effect in Denmark
- 17 Dec 2002
Denmark: Strong growth in temporary agency work<#PDF_LINK>The number of temporary agency workers in Denmark has increased 10-fold in the decade up to 2002, and there now around 35,000 of them. Most work in the health sector and have reasonable employment conditions, while many are unskilled workers and office workers in other sectors, who often do not have the same good conditions. The issue is attracting growing interest from the social partners.
- 04 Dec 2002
Denmark: Employment levels start to fall<#PDF_LINK>Quarterly figures published by Danmarks Statistik in November 2002 show a large fall in employment in Denmark, while the unemployment rate, which has stood at around 5% for nearly five years, is now rising again. The fall in employment has contradicted the government's expectations and caused surprise in trade union circles.
- 04 Dec 2002
Denmark: Mass redundancies in telecommunications<#PDF_LINK>In November 2002, the management of Orange, the French-owned mobile telephone company, announced that it was to make redundant about 400 employees in its Danish division. The job losses will bring the number of recent redundancies in Denmark's telecommunications sector to around 1,000.
- 20 Nov 2002
Denmark: Three unions plan merger<#PDF_LINK>In October 2002, three trade unions affiliated to the Confederation of Danish Trade Unions (LO) agreed to take the first joint step towards a merger. The proposed merger of the General Workers' Union (SiD), the Union of Female Workers (KAD), and the Union of Wood, Industrial and Building Workers (TIB) would create Denmark's largest union with about 470,000 members. This would amount to around a third of LO members, and the confederation would risk losing influence if the merged union were established.
- 05 Nov 2002
Denmark: Joint DA-LO proposal on Europe's future<#PDF_LINK>In September 2002, the Confederation of Danish Trade Unions (LO) and the Danish Employers' Confederation (DA) sent a joint paper to the Convention deliberating the future of the EU. The proposals call for a strengthening of the social dialogue and of the autonomy of the EU-level social partners to conclude agreements.
- 05 Nov 2002
Denmark: New pay system agreed for industry sector<#PDF_LINK>In October 2002, the social partners in Denmark's industry sector announced that they had agreed on a new pay system, known as Plus-pay. The system is based on a higher degree of flexibility than the current scheme, and will cover both workers paid on an hourly basis and salaried employees.
- 30 Oct 2002
Denmark: Labour market reform agreed<#PDF_LINK>In October 2002, the Danish parliament approved a government proposal for a labour market reform plan entitledbringing more people into employment. The aim is to create a simplified single system of measures aimed at getting unemployed people back into work, to replace the previous dual system of separate provision for those with and without unemployment insurance. The Danish Employers' Confederation (DA) and the Confederation of Danish Trade Unions (LO) are generally positive over the reform, but the General Workers' Union (SiD) is very critical.
- 23 Oct 2002
Denmark: LO presents concept for a broader union organisation<#PDF_LINK>In September 2002, the executive committee of the Confederation of Danish Trade Unions (LO) presented a plan for a radical reform of the organisation. The withdrawal of financial support from the Social Democratic Party is an important element of LO's attempt to create a unified trade union movement (including unions currently outside LO) with broader political influence.
- 28 Sep 2002
Denmark: Broadcasting strike settled<#PDF_LINK>In mid-September 2002, journalists at Denmark's DR broadcasting company returned to work after a four-week strike. The key issue in the dispute was the introduction of a new, more individualised pay system.
- 24 Sep 2002
Denmark: Government liberalises unemployment insurance funds<#PDF_LINK>From September 2002, a new law permitting cross-sector unemployment insurance funds in Denmark - in addition to the existing trade union-run sectoral funds - has made it possible for employees to choose freely between funds. The result will be increased competition for members between funds, which may lead to structural changes and aprice war.
- 22 Aug 2002
Denmark: Meat industry employers to join Confederation of Danish Industries<#PDF_LINK>In August 2002, the Danish Employers' Association of the Meat Industry (SA) applied for membership of the Confederation of Danish Industries (DI) - and thus of the Danish Employers' Confederation (DA) - having resigned from the Confederation of Employers' Associations in Agriculture (SALA) in March 2002 due to disagreement concerning future strategy. Acceptance of SA's membership application should be a formality. This move will strengthen both the position of SA in its next collective bargaining round in 2003, and DI's position as DA's largest member organisation.
- 06 Aug 2002
Denmark: Employers promote flexible 'buffet' wage system<#PDF_LINK>In July 2002, the Danish Commerce and Service (DHS) employers’ organisation launched a document promoting a flexiblebuffetsystem, whereby employees could construct their own package of pay and benefits. An example of this approach is the Oracle software company, where employees can now choose how their package of wages, benefits, holidays and pension contributions should be distributed, trading off some elements for others. Trade unions are sceptical, but believe that in the near future collective agreements will become more and more individualised.
- 02 Aug 2002
Denmark: Closed-shop agreements to be banned<#PDF_LINK>Denmark's Liberal-Conservative coalition government is due to propose legislation prohibiting closed-shop agreements in autumn 2002. According to a government-commissioned report drawn up by civil servants, published in July 2002, there is nothing to hinder the abolition of closed-shop agreements. However, existing closed shops will still be permitted in the liberal professions, such as those operated by the professional associations for doctors and lawyers. The trade unions see this as victimisation of the trade union movement and oppose the government's plans.
- 31 Jul 2002
Denmark: LO and DA pleased with EU agreement on telework<#PDF_LINK>The framework agreement on telework concluded by the EU-level social partners on 16 July 2002 was greeted with great satisfaction in Denmark. The fact that the agreement is to be implemented by the social partners themselves, rather than via a Directive, is seen by Danish employers' organisations and trade unions as giving a new impetus to Denmark's model of regulating the labour market through agreements rather than legislation. Denmark has the highest level of teleworking in the EU.
- 09 Jul 2002
Denmark: Dansteel closes with loss of 1,100 jobs<#PDF_LINK>In June 2002, the Danish scrap steel recycling company Dansteel submitted a winding-up petition, having accumulated major losses. The firm's 1,100 employees have been dismissed and it is expected that the whole Frederiksværk region will be affected by the closure. The government is seeking to mitigate the negative effects through an employment and training programme for the redundant workers.
- 09 Jul 2002
Denmark: Major new services employers' organisation created<#PDF_LINK>Three Danish service sector employers' organisations merged on 1 July 2002 to create Commerce, Transport and Service (HTS). The new body represents some 10,000 companies.
- 01 Jul 2002
Denmark: Social partners and government sign agreement on integration of immigrants<#PDF_LINK>In late May 2002, the Danish social partners and municipalities concluded an agreement with the government on stronger measures to integrate immigrants and refugees into the labour market. The accord establishes a three-stage integration procedure, involving work experience and training as a preparation for normal employment. The context is that large numbers of immigrants and refugees are outside the labour market at a time when labour shortages are looming.
- 26 Jun 2002
Denmark: Social partner involvement in the 2002 NAP<#PDF_LINK>This feature examines social partner involvement in Denmark's 2002 National Action Plan (NAP) for employment. It is one of a set of similar features for all the EU Member States, written in response to a questionnaire.
- 11 Jun 2002
Denmark: New Act on part-time work adopted after lengthy debate<#PDF_LINK>In June 2002, after months of debate, the new Liberal-Conservative government's amended Act on part-time work was passed in the Danish parliament. The new legislation seeks to make access to part-time work easier, by means including the controversial abolition of restrictions on the use of part-time work laid down in collective agreements. During the parliamentary process, the Minister for Employment made concessions and changed the text of the proposal, but trade unions remain opposed.
- 10 Jun 2002
Denmark: Government postpones gender wage statistics requirement<#PDF_LINK>In May 2002, Denmark's new Liberal/Conservative coalition government postponed indefinitely the implementation of a statutory requirement on employers - introduced by the previous Social Democrat-led government - to produce wage statistics broken down by gender with a view to closing the pay gap between women and men. The new government believes that the requirement imposes too great a bureaucratic burden on companies.
- 22 May 2002
Denmark: Municipal/county sector deal narrowly approved<#PDF_LINK>At the end of April 2002, a new collective agreement for Denmark's municipal/county sector, arrived at through conciliation, was approved in a ballot of members of the trade unions affiliated to the KTO bargaining cartel. However, the overall margin in favour was very narrow, with the members of teachers' and nurses' unions overwhelmingly opposed, mainly due to disagreement over a new pay system being introduced in the public sector. The ballot result led to criticism from some unions of the bargaining and voting procedure.
- 08 May 2002
Denmark: Agreement concluded for municipal/county sector<#PDF_LINK>A new three-year collective agreement for Denmark's 650,000 local government employees was signed after a ballot on 30 April 2002. Trade union members were, for the first time in the sector's history, asked to vote on a proposal for a settlement drawn up by the Official Conciliation Service. Some 150,000 members voted for the proposal, whereas 140,000 voted against.
- 24 Apr 2002
Denmark: Three-year agreement concluded in central government sector<#PDF_LINK>A new three-year collective agreement for Denmark's central government sector came into force in April 2002, following approval by trade union members in ballots. On the basis of current economic indicators, the new agreement will result in an increase in real wages over the three-year period, while a pilot project for a new locally-based pay system will become a permanent system. Annual leave has been increased to six weeks and training measures strengthened. There had been fears that the recently adopted Finance Act, which will lead to cutbacks and job losses in many state institutions, would induce many employees to reject the new deal, but the majority in favour was comfortable. The outcome of ballots over a new agreement in the county/municipal sector was due at the end of April.
- 12 Apr 2002
Denmark: Union representatives in finance 'have only limited influence'<#PDF_LINK>Workplace trade union representatives in the Danish banking and finance sector are generally satisfied with their task and tend to act as local problem-solvers. However, they have little or no influence on important issues such as the working environment and pay. These are among the findings of a study published in April 2002 by the Financial Services Union.
- 10 Apr 2002
Denmark: Government withdraws proposal to set up state unemployment insurance fund<#PDF_LINK>In spring 2002, due to lack of political support, Denmark's new Liberal/Conservative government withdrew its proposal to establish a state unemployment insurance fund as an alternative to the existing trade union-run funds. However, the government does have political support for promoting the establishment of more cross-sector unemployment insurance funds.
- 26 Mar 2002
Denmark: Increased flexibility for families 'may be a set-back for gender equality'<#PDF_LINK>Since coming to office in late 2001, Denmark's new Liberal-Conservative coalition government has taken a number of initiatives aimed at creating a higher degree of flexibility for families with small children. It has proposed promoting part-time work, extending maternity/childcare leave and paying families to look after their own children. However, equality researchers and some trade unions claim that these measures may turn out to be a set-back for gender equality.
- 26 Mar 2002
Denmark: Government tables proposals for labour market integration of immigrants<#PDF_LINK>In March 2002, the Danish government issued new proposals for improving the integration of immigrants and refugees, based on the view that the best way towards successful integration is through the labour market. Newly-arrived refugees and immigrants should be given practical work experience in enterprises as soon as possible and Danish language teaching should be provided at the workplace. Moreover, a special introductory starting wage should be paid when the people concerned start ordinary jobs. The social partners disagree with various parts of the proposal.
- 25 Mar 2002
Denmark: 2001 Annual Review for Denmark<#PDF_LINK>This record reviews 2001's main developments in industrial relations in Denmark.
- 11 Mar 2002
Denmark: Deadlock in municipal/county bargaining<#PDF_LINK>In early 2002's bargaining over new collective agreements in the Danish public sector, a compromise deal was reached in the state sector. Traditionally, the state sector agreement is followed fairly closely by the municipal/county sector, but in 2002 this failed to occur and municipal/county bargaining became deadlocked in February. This situation is unprecedented in the history of Danish public sector bargaining. Disagreement on the economic framework for a recently introduced new wage system led the union side to leave the municipal/county negotiating table and, for the first time ever, negotiations have been transferred to the Official Conciliation Service.
- 28 Feb 2002
Denmark: Government proposes more flexible maternity-related leave<#PDF_LINK>In February 2002, Denmark's new Liberal-Conservative government proposed a new system of maternity-related leave, whereby the current childcare leave scheme would be scrapped and replaced with increased maternity/childbirth leave entitlement for both parents. The aim is to simplify the existing legislation and create a higher degree of flexibility for families with small children. Employers view the proposals as reducing flexibility and encroaching on managerial prerogative, while employers in the finance sector in particular fear that the new system will be very costly for them, owing to the terms of their collective agreement, which provides for full pay during maternity/childbirth leave.
- 26 Feb 2002
Denmark: Social partners in favour of health and safety bargaining<#PDF_LINK>In late 2001, Denmark's new Liberal-Conservative government proposed a number of amendments to working environment legislation, which seek to simplify regulations and cutred tapefor smaller businesses. The proposals roll back a number of changes made by the former government. The DA employers' confederation welcomed the move while the LO trade union confederation opposed it and responded in January 2002 with an ambitious strategy paper on improving the working environment. However, there was a high degree of consensus between the social partners on the idea of greater regulation of health and safety through collective bargaining.
- 06 Feb 2002
Denmark: Opposition to government bill on part-time work<#PDF_LINK>In January 2002, Denmark's new Liberal-Conservative government presented a bill amending the current legislation on part-time work. It proposes that restrictions on the use of part-time work laid down in collective agreements should be abolished. The bill has been criticised by the social partners, which accuse the government of intervening in the collective bargaining system. The Danish Confederation of Trade Unions (LO) fears that the new legislation would result in some part-timers working for fewer hours than is necessary to gain entitlement to various benefits and employment rights, and that some employees would be forced to take on several part-time jobs.
- 05 Feb 2002
Denmark: Unions oppose reduction in minimum wages in order to increase integration of immigrants<#PDF_LINK>A report published in January 2002 by athink tankset up to examine the integration of immigrants in Denmark states that old systems and procedures have to be reconsidered if integration through attachment to the labour market - considered a key factor - is to become a reality. One proposal is to reduce collectively agreed minimum wages for new immigrant workers, but this has been rejected by the trade unions.
- 04 Feb 2002
Denmark: LO and DA sign agreement on integration of refugees and immigrants<#PDF_LINK>In late January 2002, the Confederation of Danish Trade Unions (LO) and the Danish Employers' Confederation (DA) agreed a set of common objectives for the better integration of refugees and immigrants in Danish society. According to the social partners, current integration policy has failed because its attachment to the labour market is too loose. They state that labour market integration measures should be the responsibility of the existing coordination committees, on which the social partners are represented, and that the only way to ensure good integration is through earlier attachment to the labour market and quicker acquisition of sufficient language skills.
- 16 Jan 2002
Denmark: Trade union density falls<#PDF_LINK>According to a study published in January 2002, the total number of members of Danish trade unions has remained more or less unchanged since 1994, but the number of potential members has increased considerably, leading to a fall in union density of nearly three percentage points (from 84.6% to 81.7%). The member unions of the Danish Confederation of Trade Unions (LO) have been most seriously affected.
- 16 Jan 2002
Denmark: SAS staff accept lower pay and shorter working hours to save jobs<#PDF_LINK>In early 2002, white-collar staff and pilots employed at the Scandinavian airline SAS have accepted a 5% reduction in pay and working time in order to maintain jobs at the crisis-affected company. Negotiations continue with other employee groups. Nevertheless, large-scale redundancies are still expected.
- 07 Jan 2002
Denmark: New government challenges trade union movement<#PDF_LINK>On 20 November 2001, a Liberal/Conservative coalition won the Danish general election. In the labour market and employment field, the new government plans a number of changes which will put pressure on the trade union movement - such as the establishment of a public unemployment insurance fund and the abolition of closed-shop agreements - but not, it appears, to an extent which jeopardises the Danish bargaining model. Commentators believe that there is nothing in the government's proposals which indicates that the trade union movement will be attacked in vital fields.