Representativeness of the social partners: Gas sector –Romania
The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the gas sector in Romania. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
Introduction
Currently, in the production of gas and pipeline distribution of gaseous fuels sector (NACE Code 40.2) there are two sectorally representative trade union organisations, Trade Union Federation GAS Romania and Methane Gas Mediaş Trade Unions Federation, and a single sectorally representative employers’ organisation Oil and Gas Employers’ Federation (FPPG). They take part in the bargaining and signing of the collective work agreement in the electric and thermal power, oil and gas sector and the collective work agreement at groups of five units level in the natural gas industry. The latest agreement in the sector was signed in 2000, valid until February 2006. According to the law, its validity is extended until another sectoral collective agreement is concluded.Another sectoral collective agreement has not to date been signed.
In 2004, with the privatisation of the two companies distributing natural gas (Distrigaz Nord and Distrigaz Sud) FPPG lost its representativeness status since the buyers of the companies withdrew from the employers’ federation and no longer take part in or recognise collective bargaining agreements. As a result, trade unions no longer have a representative employer organisation with which to bargain for the companies where union members work.
1. Sectoral properties
| 1993 | 2004** | |
|---|---|---|
| Number of companies | 245 | 478 |
| Aggregate employment* | 165,000 | 135,000 |
| Male employment* | 128,500 | 100,000 |
| Female employment* | 36,500 | 35,000 |
| Aggregate employees | 164,000 | 132,000 |
| Male employees | 129,000 | 98,000 |
| Female employees | 36,000 | 34,000 |
| Aggregate sectoral employment as a % of total employment in the economy | 1.64 | 1.64 |
| Aggregate sectoral employees as a % of the total number of employees in the economy | 3.36 | 2.95 |
Note: * employees plus self-employed persons and agency workers
** or most recent data
***all data refer to the electric and thermal power, gas and water sector, which includes: NACE Code 40-Manufacture and distribution of electric and thermal energy, gas and water, NACE Code 41- Water collection, treatment and distribution.
…no data available.
Source: Romanian Statistical Yearbook, National Institute for Statistics, Bucharest, 1994 and 2005.
2. The sector’s unions and employer associations
This section includes the following unions and employer associations:
(i) unions which are party to sector-related collective bargaining;
(ii) unions which are a member of the sector-related European Union Federation (i.e. EMCEF - European Mine, Chemical and Energy Workers' Federation);
(iii) employer associations which are a party to sector-related collective bargaining;
(iv) employer associations which are a member of the sector-related European Employer Federation (i.e. ECEG – European Chemical Employers' Group).
2a Data on the unions
Federation of Trade Unions in the Gas Sector (Federaţia Sindicatelor Gaz – România, FSGR)
2a.1 Type of membership (voluntary vs. compulsory)
Voluntary
2a.2 Formal demarcation of membership domain (e.g. blue-collar workers, private-sector workers, gas sector employees, etc.)
There are none
2a.3 Number of members
Approximately 25,000 members according to the estimates advanced by the trade union organisation (E) and Employers and Trade Union Organisations (Patronate şi Sindicate în România), Diana Preda, Bucharest, 2005 (S).
2a.4 Female union members as a percentage of total union membership
Approximately 7,000 of the members are women (28% of total members of the trade union).
2a.5 Density with regard to the union domain (see 2a.2)
The trade union federation represents the interests of employees in the five companies, totalling 26,100 employees. The percentage of union members to total employees in the aforementioned companies is about 95 %.
The percentage of union members to total employees in each of the five companies is indicated below (E):
- Distrigaz Sud SA – 91.5% (14 trade unions, all members of FSGR totalling 7,500 union members of 8,200 employees);
- E-on Gaz România – 92.6% (12 trade unions, all members of FSGR totalling 7,500 union members of 8,100 employees);
- Transgaz SA Mediaş – 93.3% (one of the two trade unions in the company is a member of FSGR, with 4,200 union members of the 4,500 employees);
- Romgaz SA Mediaş – 94% (three trade unions, all members of FSGR, totalling 4,700 union members of the 5,000 employees);
- Congaz SA Constanţa – 83.3% (one trade union, member of FSGR with 250 union members of the 300 de employees).
2a.6 Density of the union with regard to the sector
No data available. FSGR is sectorally representative.
2a.7 Does the union conclude collective agreements?
In the period 1999–2004, the trade union took part in collective bargaining and was a signatory of collective work agreements at three levels:
- collective work agreement at electric power, oil and gas sectoral level;
- collective work agreement at groups of five units level in the gas industry;
- collective work agreements at company level, through member trade unions.
According to the statements of FSGR representatives, following the privatisation of the two distribution companies in 2004 (Distrigaz Sud and Distrigaz Nord, which became E-on Gaz România) French and German employers withdrew from the employers’ federation.
FSGR was left with no bargaining partners for the sectoral and group of units collective work agreements; it is now only involved in collective bargaining at company level.
FSGR continues to participate in the bargaining of a collective work agreement at the electric and thermal power, oil and gas sectoral level which is where their union members come from; however, none of the employers’ organisations in the gas industry recognise the agreement, with the justification that they are no longer members of the sectoral employers’ federation.
2a.8 Affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)
At national level, FSGR is a member of the National Confederation of Free Trade Unions in Romania Brotherhood (Confederaţia Naţionala a Sindicatelor Libere din România Frăţia, CNSLR Frăţia); at international level it is a member of the European Mine, Chemical and Energy Workers` Federation (EMCEF) and the European Federation of Public Service Union (EPSU).
Methane Gas Mediaş Federation of Trade Unions in (Federaţia Sindicatelor din Gaz Metan Mediaş, FSGMM)
2a.1 Type of membership (voluntary vs. compulsory)
Voluntary.
2a.2 Formal demarcation of membership domain (e.g. blue-collar workers, private-sector workers, gas sector employees, etc.)
There is none
2a.3 Number of members
It includes five trade union organisations with approximately 1,000 members according to Employers and Trade Union Organisations (Patronate şi Sindicate în România), Diana Preda, Bucharest, 2005 (S).
2a.4 Female union members as a percentage of total union membership
No data available.
2a.5 Density with regard to the union domain (see 2a.2)
No data available.
2a.6 Density of the union with regard to the sector
No data available.
2a.7 Does the union conclude collective agreements?
Yes. Collective work agreement at electric power, oil and gas sectoral level for 2000, valid to date.
2a.8 Affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)
At national level FSGMM is a member of the National Trade Union Bloc (Blocul Naţional Sindical, BNS). There are no available data on affiliations to international interest associations.
2b Data on the employer associations
Oil and Gas Employers’ Federation (Federaţia Patronală Petrol şi Gaze, FPPG)
2b.1 Type of membership (voluntary vs. compulsory)
Voluntary.
2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, sub-sectors of gas, etc.)
There is no formal demarcation of membership domain. In employer organisations membership is sub-sectoral.
2b.3 Number of member companies
The number of member companies is (E): 95 in 2004 and 75 in 2006 in the oil and gas domain. The members are:
- Employer Organization PETROGAZ (Organizaţia Patronală PETROGAZ) which includes 23 member companies, including among others SN PETROM, member of the OMV group, the major manufacturer of oil and gas in Romania, whose scope of activity covers refining, petrochemicals, distribution of oil products with a country-wide network of branches and subsidiaries;
- CONPET Ploieşti, sole pipeline transporters of crude oil and service provider for the oil industry;
- Employers’ Organisation in Oil Operations and Services (Asociaţia Patronală Operaţiuni şi Serviciu Petroliere, APOSP) with 18 member companies, service providers in the oil industry;
- Employers’ Organisation in the Romanian Natural Gas Industry (Asociaţia Patronatului Român al Gazelor) including 31 member companies, service providers in the oil & gas industry.
Members of FPPG also include a number of major companies in the chemical processing of natural gas, petrochemicals and crude-oil refining industries.
Associated members include Research & Development institutes in the oil & gas industry: IPROCHIM Bucureşti, IPCUP Ploieşti and the Oil & Gas University Ploieşti (Universitatea Petrol şi Gaze Ploieşti).
2b.4 Number of employees working in member companies
According to information provided by FPPG (E) there are 70,000 employees working in member companies in the oil and gas sector.
2b.5 Density of the association in terms of companies with regard to their domain (see 2b.2)
According to estimates provided by FPPG (E) 70%, for the oil and gas industry.
2b.6 Density of the association in terms of companies with regard to the sector
According to estimates provided by FPPG (E) 70%, for the oil and gas industry.
2b.7 Density in terms of employees represented with regard to their domain (see 2b.2)
According to estimates provided by FPPG (E) 80%, for the oil and gas industry.
2b.8 Density in terms of employees represented with regard to the sector
According to estimates provided by FPPG (E) 80%, for the oil and gas industry.
2b.9 Does the employer association conclude collective agreements?
FPPG is a signatory of:
- The collective work agreement for the electric and thermal power, oil and gas sector in 2000, valid to date;
- The collective work agreement at group of units level in the natural gas industry.
2b.10 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).
FPPG is affiliated to the National Employer Confederation of Industries, Services and Commerce (Confederaţia Patronală a Industriei, Serviciilor şi Comerţului din România, CPISC); a member of the Alliance of Employers’ Confederations of Romania (Alianţa Confederaţiilor Patronale din România, ACPR), affiliated to Union des Industries de la Communauté Européenne (UNICE).
3. Inter-associational relationships
3.1. Please list all unions covered by this study whose domains overlap.
Federation of Trade Unions in the Gas Sector (Federaţia Sindicatelor Gaz – România, FSGR) and Methane Gas Mediaş Trade Unions Federation (Federaţia Sindicatelor Gaz Metan Mediaş, FSGMM).
3.2. Do rivalries and competition exist among the unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?
None, according to FSGR representatives.
3.3. If yes, are certain unions excluded from these rights?
No.
3.4. Same question for employer associations as 3.1.
No.
3.5. Same question for employer associations as 3.2.
No.
3.6. Same question for employer associations as 3.3.
No.
4. The system of collective bargaining
Collective agreements are defined in line with national labour law regardless of whether they are negotiated under a peace obligation.
4.1. Sector’s rate of collective bargaining
According to information provided by FPPG the rate of collective bargaining coverage is approximately 80% (E). According to FSGR estimates 90% (E).
4.2. Relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered.
According to FPPG the rate of sectoral collective bargaining coverage is approximately 80% (E). According to FSGR estimates 90% (E).
4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?
Yes. Pursuant to the law on collective work agreements, national and sectoral collective work agreements are applicable to all companies in the sector.
4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?
According to FPPG statements, it is common practice in compliance with the law.
4.3. Sector-related multi-employer wage agreements* valid in 2004 (or most recent data)
* Only wage agreements which are (re)negotiated on a reiterated basis.
| Agreement | Bargaining parties | Purview of the sector-related multi-employer wage agreements | ||
|---|---|---|---|---|
| Sectoral | Type of employees | Territorial | ||
| Collective work agreement at electric, thermal power, oil and gas sectoral level for 2000, valid to date. | Employer Organisations: - FPPG - Energy Sector Employers’ Federation Trade Unions: - Trade Union Federative Association ATLAS and the federation: - Free and Independent Trade Unions Federation in the Oil Industry - FSGR - Trade Union Federation Termoelectrica; - Trade Union Federation of Education and Democracy - Trade Union Federation Energia Mileniului III; - Hidrosind Federation; - FSGMM; - UNIVERS National Union of T.U. in the Electric Power sector; - Federation of Free and Independent Trade Unions |
Electric, thermal power, oil and gas sector | All types | Country-wide |
| Collective work agreement at group of units level in the natural gas industry. | Employer Organisations - FPPG Trade Unions - FSGR |
Group of units in the natural gas industry | All types | Country-wide |
5. Formulation and implementation of sector-specific public policies*
5.1. Are the sector’s employer associations and unions usually consulted by the authorities in sector-specific matters?
FSGR declares that trade union organisations are not consulted by authorities on sector-specific issues.
FPPG declares that employers’ organisations are not consulted by the Ministry of Economy and Commerce (Ministerul Economiei şi Comerţului, MEC) or the National Regulating Authority in the Field of Natural Gas (Agenţia Naţională de Reglementare în Domeniul Gazelor Naturale, ANRGN).
5.2. Do tripartite bodies dealing with sector-specific issues exist?
| Name of the body and scope of activity | Bipartite/ tripartite | Origin: agreement/ statutory | Unions having representatives (reps) | Employer associations having reps. |
| Sectoral Council for Adults Continuing Training (geology, mining, electric power, oil in gas) | Tripartite - representatives of the National Council for Adults Vocational Training (Consiliul Naţional de Formare
Profesională a Adulţilor, CNFPA); - trade unions; - employer organisations |
Government regulated | FSGR FSGMM |
FPPG |
| Social Dialogue Committee in the MEC | Tripartite: - MEC representatives; - trade unions; - employer organisations |
Government regulated | FSGR FSGMM | FPPG |
* Sector-specific policies specifically target and affect the sector under consideration.
6. Statutory regulations of representativeness
6.1. In the case of the unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements?
There are no sector-specific regulations. According to Law 130/1996 on the collective work agreement, art. 17, collective bargaining at national, field of activity and company level admits the participation of trade union organisations that meet the following requirements:
a) at national level: trade union confederation legal status; organisation and patrimony independence; include own trade union structures in at least half the counties in the country, including the City of Bucharest; include representative trade union federations from at least 25% of all areas of activity; constituent trade union organisations have a total membership of at least 5% of the total number of employees in the national economy; b) sector level: trade union federation legal status; organisation and patrimony independence; constituent trade union organisations have a total membership of at least 7% of the total number of employees in the respective field of activity; c) at company level: a) trade union legal status; number of trade union members represents at least a third of the total number of company employees.
Courts of law certify whether trade union organisations meet representativeness requirements, as follows: a) at national and area of activity level – the City of Bucharest Tribunal; b) at company level – the court of law with territorial jurisdiction over the Company Head Office. The decision can only be changed by appeal.
In the domain of the NACE Code 40.2, Production of gas, pipeline distribution of gaseous fuels FSGR has sectoral representativeness.
6.2. In the case of the unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies?
These aspects are regulated by: Law no. 109/1997 on the organisation and functioning of the Economic and Social Council and Convention no. 144/1976 of the International Labour Organisation, adopted on 2 June 1976 in Geneva, ratified by Romania by Law no. 96/1992; Government Decision no. 314/2001 on the establishment, organisation and functioning of social dialogue commissions in certain ministries and prefectures, amended and completed by Government Decision no. 569/2002.
In the domain of the NACE Code 40.2, production of gas, pipeline distribution of gaseous fuels FSGR and FSGMM are consulted.
6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for union representativeness?
No.
6.4. Same question for employer associations as 6.1.
The representativeness criteria are those generally valid, there are no sector-specific regulations. According to Law no. 130/1996 on the collective work agreement, art. 15, collective bargaining at national, field of activity and company level admits the participation of employer organisations that meet the following requirements simultaneously:
a) at national level: organisation and patrimony independence; represent employers whose companies operate in at least half the counties in the country, including the city of Bucharest; represent employers whose companies operate in at least 25% of all areas of activity; represent employers whose companies include at least 10% of the total number of employees in the national economy;
b) at area of activity level: organisation and patrimony independence; represent employers whose companies include at least 10% of the total number of employees in the respective area of activity;
The City of Bucharest Tribunal certifies if representativeness criteria are met. The decision can only be changed by appeal.
Currently, FPPG meets sectoral representativeness criteria.
6.5. Same question for employer associations as 6.2.
These aspects are regulated by: Law no. 109/1997 on the organisation and functioning of the Economic and Social Council (Consiliul Economic şi Social, CES)and Convention no. 144/1976 of the International Labour Organisation, ILO, adopted on 2 June 1976 in Geneva, ratified by Romania by Law no. 96/1992; Government Decision no. 314/2001 on the establishment, organisation and functioning of social dialogue commissions in certain ministries and prefectures, amended and completed by Government Decision no. 569/2002.
Currently, FPPG and component organisations are consulted.
6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations?
No.
7. Comments
FPPG lost its representativeness status in 2004 with the privatisation of the two companies distributing natural (Distrigaz Nord and Distrigaz Sud) when the companies withdrew from the employers’ federation and no longer took part in collective bargaining. Trade unions now no longer have a representative employer organisation with which to bargain for the companies in which union members work.
8. List of persons and institutions contacted
Organisations that answered our queries:
- Trade Union Federation Gas Romania (Federaţia Sindicatelor Gaz România, FSGR), President Moşoi;
- Oil sand Gas Employers’ Federation (Federaţia Patronatelor Petrol şi Gaze, FPPG) President Andrei Grigorescu, Director Silviu Sarghi.
Organisations that did not respond to our queries:
- Methane Gas Mediaş Trade Unions Federation (Federaţia Sindicatelor din Gaz Metan Mediaş, FSGMM) President Miron Neagu;
- National Regulating Authority in the Field of Natural Gas (Agenţia Naţională de Reglementare în Domeniul Gazelor Naturale, ANRGN).
Luminiţa Chivu, Institute of National Economy, Romanian Academy