Representativeness of the European social partner organisations: Steel industry – France
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 steel industry in France. 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.
1. Sectoral properties
In the aftermath of the Second World War, steel was one of the so-called high-technology sectors which played a key role in the reconstruction and development of the French economy. Over the past 30 years, the steel industry changed significantly with occupations using high technology; these changes partly result from initiatives carried out by the European Coal and Steel Community (ECSC). Provisions on human resources planning, health and safety at work, retirement, travel allowances and the right to organise were introduced into collective bargaining more quickly than in many other sectors of the economy, thereby making of the steel industry an important economic player dominated by large groups such as ArcelorMittal for steel and DCNS for naval defence.
| Sectoral properties | 1995 | 2006** |
|---|---|---|
| Number of employers | 83 | 86 |
| Aggregate employment* | n.a. | n.a. |
| Male employment* as % of total employment in steel sector | 88.7% | 88% |
| Female employment* as % of total employment in steel sector | 11.3% | 12% |
| Aggregate employees | 68,137 | 61,995 |
| Male employees | 60,453 | 47,359 |
| Female employees | 7,684 | 14 636 |
| Aggregate sectoral employment as % of total employment in economy | n.a. | n.a. |
| Aggregate sectoral employees as % of the total number of employees in economy | 0.34% | 0.23% |
Notes: * Employees plus self-employed persons and temporary agency workers.
** Or most recent data. n.a. = not available.
Sources: National Institute of Statistics and Economic Studies (Institut national de la statistique et des études économiques, INSEE) and Statistics and Industry Research (Statistiques et Études Industrielles, SESSI), ‘Enquête annuelle d’entreprise (EAE – SES) [Annual Company Survey]’, Online Access to structural company data (Accès en Ligne aux Statistiques Structurelles d’Entreprises, ALISSE); INSEE, ‘Déclarations annuelles de données sociales (DADS) [Annual declarations of social data]’
It is impossible to obtain data on employment in the steel industry, specifically data including non-employees (such as self-employed workers) and temporary agency workers, as information about non-employee based employment is based on non-specific figures. Employment estimations do not provide a detailed gender breakdown for the steel industry. However, the Déclarations annuelles de données sociales [Annual declarations of social data) provide a percentage figure for the number of women in the sector.
2. The sector’s trade unions and employer associations
This section includes the following trade unions and employer organisations:
1. trade unions which are party to sector-related collective bargaining;
The following five national representative trade union confederations (in alphabetical order) organise in the steel industry through broader metalworking unions (see below):
- the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT)
- the French Confederation of Professional and Managerial Staff – General Confederation of Professional and Managerial Staff (Confédération française de l’encadrement – confédération générale des cadres, CFE-CGC)
- the French Christian Workers’ Confederation (Confédération française des travailleurs chrétiens, CFTC)
- the General Confederation of Labour (Confédération générale du travail, CGT)
- the General Confederation of Labour – Force ouvrière (Confédération générale du travail – Force ouvrière, CGT-FO)
2. trade unions which are a member of the sector-related European federation , the European Metalworkers’ Federation (EMF);
In total, eight trade unions, all of which are affiliated to the five national trade union confederations, are a member of the sector-related European federation EMF:
- the Metalworkers’ Union – CGT (Fédération des Travailleurs de la Métallurgie, FM-CGT)
- Force Ouvière – Metal (Fédération Force Ouvrière de la Métallurgie, FO Métaux)
- the National Trade Union Federation for the Metalworking Industry and Related Activities – CFTC (Fédération Nationale C.F.T.C. des Syndicats de la Métallurgie et Parties Similaires, CFTC Métallurgie FM-CFTC)
- the State Employees’ Federation – CGT (Fédération Nationale des Travailleurs de l’État, FNTE-CGT)
- Force Ouvrière – Defence (Fédération Syndicale FO de la Défense des Industries de l'Armement et des secteurs assimiles, FO Défense)
- the Metalworking and Mining Workers’ Federation – CFDT (Fédération Générale des Mines et de la Métallurgie CFDT, FGMM-CFDT)
- the CFDT – Public Sector Defence Workers’ Federation (Fédération des Établissements et Arsenaux de l’État CFDT, CFDT FEAE)
- the Metalworkers’ Federation of CFE-CGC (Fédération de la métallurgie CFE-CGC, CFE-CGC Métallurgie)
3. employer organisations which are a party to sector-related collective bargaining;
The Steel and Metallurgy Industries Employers’ Group (Groupement des entreprises sidérurgiques et métallurgiques, GESIM) – affiliated to the Union of Metallurgy and Mining Industries (Union des industries métallurgiques et minières, UIMM) and to the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF) – is the only employer organisation representative for employment issues. It represents employers in the steel industry and members of the French Steel Federation (Fédération française de l’Acier, FFA) and of the Fine Grain and Special Steel Association (Chambre syndicale des producteurs d’Aciers fins et spéciaux, SPAS), which in turn is affliated to FFA.
4. employer organisations or business associations which are a member of the sector-related European business federation, the European Confederation of Iron and Steel Industries (Eurofer).
Two employer organisations are affiliated to Eurofer:
- SPAS
- FFA.
2a Data on the trade unions
2a.1 Type of membership (voluntary vs. compulsory)
Trade union membership is voluntary, as it is the case everywhere in France.
2a.2 Formal demarcation of membership domain (e.g. white-collar workers, private-sector workers, metalworking employees, etc.)
Trade union membership and the affiliation of company trade unions to a given national trade union confederation are both rooted in France’s history. Consequently, private sector or public sector workers in public enterprises and in the Office of Naval Construction (Direction des constructions navales, DCN) (FR0108075N) generally join federations of the public sector, or federations representing naval shipyard and defence workers. However, most steel industry workers belong to a metallurgy federation within the ArcelorMittal group employing the vast majority of workers in the sector.
Except for the representative trade union confederation CFE-CGC representing only one category of staff (that is, professional and managerial staff), the other six trade unions are of a general nature and organise all categories of staff.
2a.3 Number of union members (i.e. the total number of members of the union as a whole)
The number of members is declared by the trade unions themselves. It is therefore difficult to assess the real number of trade union members in France. Moreover, the majority of French trade unions do not wish to communicate any information on their membership numbers.
2a.4 Number of union members in the sector
Data is not available (n.a.).
2a.5 Female union members as a percentage of total union membership
n.a.
2a.6 Domain density: total number of members of the union in relation to the number of potential members as demarcated by the union domain (see 2a.2)
The figures for trade union membership for the entire sector (based on the general industrial classification of economic activities within the European Communities (Nomenclature générale des activités économiques dans les Communautés européennes, NACE)) are not available at this level of aggregation at the Ministry of Labour, Social Relations, Family Affairs, Solidarity and Urban Affairs (Ministère du Travail, des Relations Sociales, de la Famille, de la Solidarité et de la Ville).
The few available figures should therefore be assessed with the greatest possible caution.
Trade union density is estimated at 40%.
2a.7 Sectoral density: total number of members of the union in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition
Trade union density in the steel industry is estimated at about 30% and would thus be among the highest sectoral union densities in France.
The strength of each trade union in the steel industry is not known; however, based on the results of workplace elections in the industry, the trade union representatives surveyed consider the ranking as follows:
- CGT
- CFDT
- CFE-CGC
- CGT-FO
- CFTC
2a.8 Sectoral domain density: total number of members of the union in the sector in relation to the number of employees which work in that part of the sector as covered by the union domain
n.a.
2a.9 Does the union conclude collective agreements?
The five representative trade union confederations in France – CFDT, CFE-CGC, CFTC, CGT, CGT-FO – negotiate in the steel industry.
2a.10 For each association, list their affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)
All of the following trade unions are affiliated to the EMF:
- FM-CGT
- FO Metal
- CFTC Métallurgie FM-CFTC
- FNTE-CGT
- FO Defence
- FGMM-CFDT
- CFDT FEAE
- the Metalworkers’ Federation of CFE-CGC
All of the following trade unions are affiliated to the International Metalworkers’ Federation (IMF):
- FM-CGT
- FO Metal
- CFTC Métallurgie FM-CFTC
- FGMM-CFDT
- the Metalworkers’ Federation of CFE-CGC
2b Data on the employer associations
2b.1 Type of membership (voluntary vs. compulsory)
As is the case for trade unions, membership of employer organisations is voluntary in France.
2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, metalworking enterprises, etc.)
No formal demarcation of the membership domain exists for employer organisations in the steel industry.
2b.3 Number of member companies (i.e. the total number of members of the association as a whole)
Some 35 companies are members of the French Steel Federation FFA (see membership list).
2b.4 Number of member companies in the sector
Some 86 companies operate in the steel industry.
2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)
The total number of employees working in companies affiliated to FFA is estimated at 56,000 (see also ‘Sectoral properties’ above).
2b.6 Number of employees working in member companies in the sector
n.a.
2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)
The domain density in terms of companies is almost 100%; however, detailed information is not available.
2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition
The sectoral density in terms of companies is almost 100%; however, detailed information is not available.
2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain
The sectoral domain density in terms of companies is almost 100%; however, detailed information is not available.
2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)
The domain density in terms of employees represented is almost 100%; however, detailed information is not available.
2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition
The sectoral density in terms of employees represented is almost 100%; however, detailed information is not available.
2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain
The sectoral domain density in terms of employees represented is almost 100%; however, detailed information is not available.
2b.13 Does the employer association conclude collective agreements?
Yes.
2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).
Taking into account the national affiliations of SPAS and FFA, GESIM is affiliated to Eurofer (see points 2.3 and 2.4).
3. Inter-associational relationships
3.1. Trade unions whose domains overlap
The domains of the following trade unions in the steel industry overlap, namely of:
- both CFDT affiliated trade unions, FGMM-CFDT and CFDT FEAE;
- both CGT affiliated trade unions, FM-CGT and FNTE-CGT;
- both CGT-FO affiliated trade unions, FO Metal and FO Defence.
3.2. Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?
The description of the way that industrial relations are organised in France, as outlined above, means that the questions in this section (3.2; 3.3; 3.4; 3.5; 3.6; 3.7) are not relevant. In France, all trade union confederations that are recognised as being representative have access to collective bargaining. The trade unions in the steel industry are affiliated to the five national union confederations – CGT, CFDT, CGT-FO, CFTC, CFE-CGC – that are representative at national level and therefore have the right to take part in collective bargaining.
3.3. If yes, are certain trade unions excluded from these rights?
Not relevant. There are a small number of other trade unions, but none of these have obtained the status of representative organisations enabling them to participate in collective bargaining.
3.4. Same question for employer associations as 3.1.
Not relevant.
3.5. Same question for employer associations as 3.2.
Not relevant.
3.6. Same question for employer associations as 3.3.
Not relevant.
3.7. Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?
Not relevant.
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 coverage
The consolidated disposition of the industry’s companies and French industrial relations rules limit the scope of questions 4.1, 4.2 and 4.3. According to the figures issued by the Ministry of Labour resulting from the Labour Activity and Employment Status (ACEMO) survey, 100% of workers in the industry – apart from those in French overseas departments who are covered by an ad hoc agreement – are covered by a collective agreement. The coverage rate of collective agreements is 100%; there is no extension, nor are there multi-employer agreements.
4.2. Relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered
All workers are covered by an industry-wide collective agreement. In addition, large companies negotiate a number of additional agreements at company level on a variety of issues on an annual basis.
4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?
No.
4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?
In France, extending collective agreements is a general practice.
However, GESIM, which is a member of UIMM, has a tacit agreement meaning that the steel industry’s collective agreement is not extended and solely applies to companies within the same industry. Consequently, workers of non-steel, sub-contracting companies are covered by UIMM’s collective agreements.
4.3. Sector-related multi-employer wage agreements* valid in 2006 (or most recent data)
* Only wage agreements which are (re)negotiated on a reiterated basis.
Not relevant.
4.4. Sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2006
See details in table below.
| Bargaining parties | Scope of agreements | ||
|---|---|---|---|
| Sectoral | Type of workers | Territorial | |
| Steel industry collective agreement (in French, 180Kb PDF) signed on 20 November 2001 by all of the representative trade unions | Steel | All | |
Regarding the steel industry, no collective agreements have been signed since the 2003 agreement which replaced three regional collective agreements. There have been no major agreements apart from clauses being added to the 2003 agreement.
5. Formulation and implementation of sector-specific public policies
5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters?
No.
5.2. Do tripartite bodies dealing with sector-specific issues exist?
| Name of body and scope of activity | Bipartite/tripartite | Origin: agreement/statutory | Trade unions having representatives | Employer organisations having representatives |
|---|---|---|---|---|
| Steel Progress and Industry Consultation Institution (Institution de progrès et de concertation sociale dans la sidérurgie, IPCS) | Bipartite | Agreement | CFDT, CFE-CGC, CFTC, CGT, CGT-FO | GESIM |
| Workplace Health and Safety Progress Institution (Institution de progrès en sécurité et santé au travail, IPS) | Bipartite | Agreement | CFDT, CFE-CGC, CFTC, CGT, CGT-FO | GESIM |
| Social Research and Study Foundation For International Cooperation and Solidarity (Fondation d’études et de recherches sociales pour les coopérations internationales et de solidarité, FERCIS) | Bipartite | Agreement | CFDT, CFE-CGC, CFTC, CGT, CGT-FO | GESIM |
| Joint technical committees (Comité technique paritaire, CTP) or DCNS** | Bipartite | Statutory | CFDT, CFE-CGC, CFTC, CGT, CGT-FO, the National Federation of Independent Unions (Union nationale des syndicats autonomes, UNSA) | Direction DCN |
Notes: * Sector-specific policies specifically target and affect the sector under consideration.
** Taking into account the history of DCNS (see point 2a2) (FR0108075N) which is a member of UIMM, the group employs private sector workers and public sector employees with civil servant status, as well as state-employed workers. The collective agreement which covers all workers is the group agreement, this explains why there is a joint technical committee.
6. Statutory regulations of representativeness
6.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements?
In accordance with the government decree of 31 March 1966, five trade union confederations are considered to be representative at national level – CFDT, CFE-CGC, CFTC, CGT, CGT-FO. These union confederations are authorised to negotiate and sign collective agreements at national, sectoral and company levels. The courts may recognise the representativeness of other trade union organisations, based on the representativeness criteria stipulated by law and case law.
Regarding collective bargaining in the telecommunications sector (applicable to workers governed by private law), only the five trade union confederations are considered to be representative and take part in any sectoral negotiations.
Prior to the Fillon law of 2004 (FR0404105F), an agreement was valid if signed by one trade union confederation. Since then, a sectoral collective agreement is only valid if the majority of the representative trade unions at sector level do not oppose it; in other words, three out of the five trade union confederations must sign a collective agreement. At company level, trade unions representing the majority of workers at the last workplace elections have a right to oppose a collective agreement. Trade unions recently made use of this right of opposition in two companies in the sugar production sector.
A sectoral collective agreement can rule that sectoral or company-level agreements are only valid if signed by the trade unions which together represent the majority of workers.
In July 2008, the French parliament adopted a law on ‘social democracy and working time reform’ (FR0808039I), which will radically change the rules regarding trade union representativeness. By 2012, the majority rule will be abolished, and – as set out in the social partners ‘common position’ (FR0807039I) – in order for a trade union to be representative and participate in company-level bargaining, it must obtain at least 10% of the votes in workplace elections. This threshold is set at 8% for bargaining at sectoral and national levels.
6.2. In the case of the trade 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?
The government generally consults the trade union organisations which are considered to be representative at national level.
6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness?
No. In companies, the results of works council elections serve as criteria to validate collective agreements, as well as for the right to opposition (see 6.1).
6.4. Same question for employer associations as 6.1.
No official representativeness criteria exist for employer organisations.
6.5. Same question for employer associations as 6.2.
No.
6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations?
No.
7. Commentary
In the steel industry, the number of trade union members and union density seem to be significantly higher than in the rest of the economy. This can be explained by a number of factors. First, it is related to the fact that the industry contains a large group like ArcelorMittal, which positively influences trade union membership levels, since trade unions generally find it difficult to gain a foothold in very small companies and small and medium-sized enterprises (SMEs). Secondly, it is related to the fact that a group such as the naval defence manufacturer DCNS has its origins in the public sector, where trade union density is higher than in the rest of the economy. For a decade, the steel industry has been undergoing major changes and restructuring; therefore, it is not easy to pinpoint and identify the industry’s characteristics, especially since at trade union level two federations exist for each of the national confederations in the steel industry.
Benoît Robin, Institute for Economic and Social Research (IRES)