CEOE evaluates collective bargaining in 2001

Source: Ministry of Labour and Social Affairs, Bulletin of Collective Agreement Statistics (Boletín de Estadísticas de convenios colectivos).

As indicated by the table, 73% of collective agreements are at company level, though they cover under 10% of the workers subject to bargaining. On the other hand, the 27% of agreements that are concluded at a higher level cover over 90% of the workers subject to bargaining. Province-level agreements are particularly important in terms of their level of coverage. The tendency since 1985 has been for a far higher increase in the number of company agreements (2,590 in 1985 and 3,756 in 2000) than in the number of agreements at higher levels (1,244 in 1985 and 1,372 in 2000). However, the number of workers covered by company agreements is currently very similar to that of 1985, whereas agreements at higher levels now cover 3 million workers more than they did in 1985. Although provincial sectoral agreements continue to predominate, followed by national sectoral agreements, in recent years there has been an increase in the proportion of workers covered by regional agreements, which covered 3% of workers subject to bargaining in 1996, 5.7% in 1998 and almost 9% in 2001.

Three-quarters of Spanish companies have fewer than six workers, the minimum size for having workers' representatives and concluding collective agreements. This explains the predominance of sectoral agreements. Company agreements are found in large companies: the average workforce of companies covered by their own agreements is 255 workers, whereas for companies covered by sectoral agreements the average workforce is seven workers. In its evaluation, CEOE also stresses the existence of sectors that include several subsectors, and which are regulated by national agreements, regional agreements and numerous provincial agreements, with little articulation between them.

The average duration of the agreements signed in 2001 was 30 months. This follows a tendency towards an increase in the duration of the agreements that was noted in previous CEOE surveys. The average duration has thus risen from 26 months in 1998, 27 months in 1999 and 29 months in 2000.

The average duration of the negotiations over collective agreements is high: 110 days overall and 232 days in the case of national sectoral agreements. CEOE also found that negotiations do not tend to start until over three months after the previous agreement has expired.

Content of collective bargaining

Pay and working time are still the subjects dealt with in most detail in collective bargaining, states CEOE. Other issues are gradually becoming more important, such as occupational classification systems, employment, training and health and safety, whereas questions such as reconciliation of work and family life and new technology-related issues - such as teleworking or the use of e-mail - are beginning to feature in agreements. Below we summarise CEOE's assessment of bargaining over these key issues in 2001.

Occupational classification

The number of agreements that establish the 'occupational group' as the basis for occupational classification is tending to increase, whereas narrower 'occupational categories' are being used less and less (ES9706110F). This is a positive development in the opinion of CEOE, because it facilitates the functional mobility of workers assigned to an occupational group. Functional mobility (like geographic mobility) is not dealt with specifically in collective agreements. When it is mentioned, it is only through reproduction of the relevant provisions of the Workers' Statute.

Despite the above tendency, occupational classification based on categories still features in 35% of agreements, though most use classification by both groups and categories. Only 9.5% of agreements establish their occupational classification solely on the basis of groups, though the proportion is higher in national sectoral agreements (24%) and in company agreements (18%).

Regulation of working time

There has been an increase in the number of collective agreements that provide for annualised working time, which is considered by CEOE to be a positive element for the flexibility and adaptability of companies. This is now the case in 52% of all agreements (66% of company agreements and 62% of national sectoral agreements), affecting 64% of the workers covered by bargaining. Furthermore, 37% of agreements establish systems of irregular distribution of working time (ES0108157F). This is found above all in national sectoral agreements (63%), which tend to link the implementation of this measure to specific agreements at company level. Working time is still established on a weekly basis in 20% of all agreements.

The average collectively agreed annual working time in 2001 was 1,759 hours 13 minutes, though the average figure for company agreements was far lower (1,646 hours 13 minutes). The sectoral agreements that reduced working time in 2001 provided for an average reduction of 5 hours 45 minutes per year, whereas the relevant company agreements provided for an average reduction of 8 hours 56 minutes per year. The tendency towards shorter working hours that has been observed since 1998 is thus continuing. The time systems laid down in agreements are generally rigid, but flexi-time systems are found more in company agreements (38% of them), though only for personnel in certain departments or occupational categories. Finally, clauses aimed at eliminating or reducing overtime in order to foster job creation appear in 28% of all agreements, though the proportion is greater in national sectoral agreements.

Regulation of remuneration

CEOE stresses the importance of variable pay in companies' pay policies (ES0001170N), but also states that collective agreements do not currently tend to relate pay to productivity or performance. Only in company-level agreements is this relationship established to a significant extent (with relevant provisions in 42% of agreements). On the other hand, the progressive elimination or freezing of seniority supplements is more widespread: in 25% of agreements they have been frozen and in 17% they have been eliminated. Other pay-related benefits and voluntary improvements appear to a greater extent in company agreements than elsewhere, but recent provisions in this area do not involve significant changes in comparison with previous agreements

The government's forecast of the Consumer Prices Index (CPI) is used as a basis for pay increases in 53% of collective agreements. The average pay increase agreed for 2001 in all collective agreement was 3.48%, with an average of 3.55% for sectoral agreements and 2.82% for company agreements. The rise in inflation in the last few years has led to an increase in the number of agreements that include wage guarantee clauses (65% of all agreements). Seven out of 10 workers covered by sectoral agreements and eight out of 10 workers covered by company agreements are subject to clauses of this type. After the application of such guarantee clauses, the average agreed pay increase in 2001 was 3.64% (3.29% in company agreements and 3.74% in sectoral agreements). 'Drop-out' clauses, laying down situations in which companies may fail to fulfil wage guarantee clauses, are included in 65% of sectoral agreements.

Employment and training

Employment and training are increasingly dealt with in collective agreements. On employment, provisions more commonly seek to ensure the stability and quality of employment rather than create jobs - clauses on job creation appear in only 1% of sectoral agreements and 4% of company agreements. Provisions on employment stability and quality tend to limit temporary employment - 4% of agreements provide for a reduction in the use of such employees and another 9% establish a maximum percentage of temporary workers - or restrict the use of temporary work agencies (8% of agreements). Commitments to convert temporary contracts into permanent ones are included in 28% of all agreements and in 41% of national sectoral agreements. Though law 12/2001 established an obligation on employers to pay compensation on the termination of temporary contracts (ES0103237F), this is established in only 16% of sectoral agreements and in hardly any company agreements.

Training is dealt with in 43% of agreements, affecting 50% of the workers covered by collective bargaining. Many agreements refer to national or sectoral continuing training agreements. In only 7% of agreements is training linked to professional advancement. The characteristics of training plans are established to a greater extent in company agreements than other types, but only in 24% of them.

Health and safety and new issues

Provisions on health and safety and risk prevention are becoming more common in collective agreements. However, such clauses normally refer in general to the relevant legislation (45% of all agreements, affecting 50% of workers covered by bargaining), without adapting it to the specific situation of the sector or the company.

The CEOE survey sought to obtain figures on the extent to which some 'new' issues of increasing interest are dealt with in collective bargaining. Teleworking is mentioned in 3% of company agreements but in hardly any sectoral agreements. Reconciliation of work and family life is dealt with in 7% of agreements (27% of company agreements), which improve on the legal provisions on leave and time off in this area.

Only 4% of all agreements regulate some aspect of new technologies, with 6% of company agreements doing so. E-mail, which is of particular interest to CEOE, is regulated in 5% of agreements with regard to its use by workers' representatives. A similar percentage of all agreements (but 12% of company agreements) provide that inappropriate use of e-mail by employees is a breach of contract.

Commentary

CEOE's evaluation of collective bargaining in 2001 emphasises some aspects that the organisation considers positive for business and that are receiving greater attention in bargaining. These include issues such as occupational classification in groups, flexible organisation of working time and pay scales, and regulation of the use of information technology by workers or their representatives. However, though the content of collective bargaining has been extended, it is very limited in these aspects. It is even more limited in areas that are of less concern to CEOE, such as the regulation of health and safety at work and the introduction of new technologies. (Andreu Lope Peña, QUIT-UAB)